CFPB Agrees to Consent Order With Real Estate Settlement Services Provider Over Alleged RESPA Violations

​On September 27, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a real estate settlement services provider for allegedly steering consumers to an affiliated title insurer without disclosing the relationship, an alleged violation of the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. 2607, and…

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National Lender Settles False Claims Act Allegations with DOJ for Over $74 Million

​On August 8, 2017, the Department of Justice (DOJ) announced that a national lender agreed to settle allegations that it violated the False Claims Act.  The settlement resolves allegations that the lender originated and underwrote mortgage loans insured by the United States Department of Housing and Urban Development’s (HUD) Federal Housing Administration…

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District Court Rejects Servicer's Argument that CFPB is Unconstitutional

​On August 4, 2017, the United States District Court for the Middle District of Pennsylvania denied a student loan servicer’s motion to dismiss claims brought against it by the Consumer Financial Protection Bureau (CFPB), rejecting the servicer’s argument that the claims fail because the CFPB is unconstitutional. In January 2017, the…

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Five State Regulators Settle Claims Against Student Loan Debt Collector for $500,000

​On August 10, 2017, the Massachusetts Division of Banks (DOB) announced that it had reached, together with the financial regulators of Connecticut, Idaho, Minnesota, and North Dakota, a settlement with two companies, resolving allegations that their debt collection practices failed to comply with state and federal consumer protection laws, including the Fair Debt…

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NY DFS Obtains $604,000 in Restitution and $500,000 Civil Penalty From Lender Who Failed to Refund Lender Credits

​On August 10, 2017, the New York Department of Financial Services (DFS) announced that it had entered into a consent order with a Missouri-based lender that specializes in mortgage loans guaranteed by the United States Department of Veteran’s Affairs.  According to the consent order, the DFS determined that, between 2011 and 2014, the lender failed…

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Florida AG Files Lawsuit Against Student Loan Debt Relief Company

​On May 23, 2017, the Florida Attorney General’s Office (AG) announced that it had filed a complaint against a Florida student loan debt relief company that falsely promised consumers it could substantially reduce their student loan debt, or even have their student loan debt forgiven.  According to the complaint, the company convinced consumers to pay…

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CFPB Files Complaint Against Ohio Debt Collection Law Firm Over Misrepresentations

​On April 17, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a complaint in the U.S. District Court for the Northern District of Ohio against an Ohio-based debt collection law firm, alleging violations of the Fair Debt Collection Practices Act (FDCPA) and Consumer Financial Protection Act (CFPA). The…

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Federal Banking Regulators Assess $65 Million Penalty Against Default Management Company

On January 24, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve, and the Office of the Comptroller of the Currency announced a $65 million fine assessed against a default management services company. The company’s predecessor had consented to a cease and desist order in 2011, stemming from allegations that it…

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