Archive for February, 2015

Mortgage Lender Subject to Fees and Injunctive Relief Following State Examination

On February 27, 2015, the Massachusetts Division of Banks and the mortgage lender agreed to a consent order following an examination into a mortgage lender’s level of compliance with applicable Massachusetts and federal statutes. The Massachusetts Division of Banks’ examination found that the bank was in substantial non-compliance with state…

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National Bank Agrees to Pay $123.5 million As Part of a Settlement with the Justice Department Over Mortgage Lending Violations

On February 25, 2015, the Department of Justice (“DOJ”) announced a settlement with a national bank over allegations that the bank originated and underwrote mortgage loans that did not meet applicable Department of Housing and Urban Development’s (“HUD”) requirements under the Federal Housing Administration (“FHA”) insurance program. The settlement covers…

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Justice Department Reaches Settlement with a National Motor Vehicle Lender Over Repossessions That Violated the Servicemembers Relief Act

On February 25, 2015, the Department of Justice (“DOJ”) announced a settlement with a national motor vehicle lender over allegations that the company repossessed over 1,1000 cars in violation of the Servicemembers Civil Relief Act, 50 U.S.C. Sections 501-597b. A consent order was filed in the U.S. District Court for…

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CFPB Receiving Plenty of Advice on Proposed Regulation of Payday Lending

State and federal regulation of payday lenders is far from a new phenomenon.  Recently, litigation against entities using the “tribal lending” model, and government attempts to suppress certain online lending programs via Operation Chokepoint have put the spotlight back on industry.  In past articles, we have noted that the Consumer Financial…

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California Department of Business Oversight Reaches $1 Million Settlement with Payday Lender for Deceptive Marketing

On February 5, 2015, the California Department of Business Oversight announced that it reached a settlement with a payday lending company over allegations that the company used deceptive sales pitches to market payday loans in violation of the California Lenders Law. The company purportedly structured loans in a way that…

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Colorado Supreme Court Issues Injunction Against Debt Settlement Company for False Advertising

On February 5, 2015, the Colorado Attorney General announced that the Colorado Supreme Court affirmed a temporary injunction order that bars a debt settlement company from continuing operations in the State of Colorado. The State’s motion successfully barred the company from engaging in the unauthorized practice of law in connection…

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CFPB Orders Lender To Reduce Student Loan Principal Balances By $480 Million

The Consumer Financial Protection Bureau (CFPB) recently announced that it had reached an agreement to give students of Corinthian College, Inc. at least $480 million in principal reductions on existing student debt. Former and current students will receive an immediate 40% reduction on existing principal balances of their loans with…

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