Banking

Maryland Attorney General Settles with Mortgage and Credit Counseling Companies Over Claims of False Representations and Illegal Fees

On June 22, 2015, the Maryland Attorney General announced a settlement with two regional mortgage and credit consulting companies and their sole owner over claims the companies made false representations regarding their ability to obtain mortgage approval for consumers, solicited illegal advance fees, and engaged in credit counseling without the…

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FDIC State-Member Bank Agrees to Civil Money Penalty to Resolve Flood Insurance Enforcement Action by the Federal Reserve

​On May 12, the Board of Governors of the Federal Reserve System announced the execution of a settlement in an enforcement action against a state member bank concerning alleged violation of Section 102(f) of the National Flood Insurance Act (NFIA). The settlment noted that where a pattern of practice of…

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Regional Bank Settles Claims for $1.225 Million that it Ignored Fraudulent Transactions Committed by Third-Party Payment Processors

On March 12, 2015, the Justice Department announced a settlement with a regional bank over allegations that the bank violated FIRREA by permitting an intermediary third-party payment processor to process fraudulent payments through the bank. The payment processor opened an account at the bank for the purpose of processing electronic…

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