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DOJ Settles with Indiana Bank for Alleged Lending Discrimination

On June 13, 2019, the Department of Justice (DOJ) announced​ that it filed a complaint​ and settlement agreement ​in the U.S. District Court for the Southern District of Indiana resolving allegations against a Midwestern​ bank based in Indiana.  The DOJ alleged that the bank engaged in lending discrimination through “redlining,” or intentionally avoiding providing services in predominantly…

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Reverse Mortgage Servicer Settles Alleged FCA Violations with DOJ for $4.25 Million

On December 21, 2018, the U.S. Department of Justice (DOJ) announced a settlement with a mortgage servic​er for $4.25 million, resolving allegations of unlawful reverse mortgage servicing practices. According to the DOJ, the company violated the False Claims Act with respect to its servicing of reverse mortgages, or Home Equity Conversion Mortgage (HECM)…

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DOJ Announces $14.5 Million Settlement in False Claims Act Suit Against FHA Lender

On December 12, 2018, the U.S. Department of Justice announced a $14.5 million settlement of a whistleblower suit alleging False Claims Act violations against a lender who endorsed loans for insurance by the Federal Housing Administration (“FHA”).  The settlement resolves an investigation triggered by a qui tam lawsuit filed by a former employee of the…

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U.S. Attorney for the Southern District of New York Announces Settlement with Credit Union Based on Alleged Violations of the SCRA

On November 2, 2018, the United States Attorney for the Southern District of New York announced a settlement with a New York based credit union, resolving allegations that the credit union had illegally repossessed cars owned by servicemembers on active duty in violation of the Servicemembers Civil Relief Act, 50 U.S.C. § 3952 (“SCRA”).  Under…

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First Half of 2018 Sees Significant Decline in Publicly Announced or Publicly Filed Enforcement Activity

During the first half of 2018, Enforcement Watch tracked 40 publicly announced or publicly filed enforcement actions involving consumer financial services companies. The 18 enforcement actions tracked during Q1 2018 represent a substantial decrease from the 46 actions tracked in Q1 2017. That trend continued in Q2 2018, with Enforcement Watch…

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DOJ Settles with Mortgage Lender for $13.2 Million Concerning FHA Mortgage Certifications

​On October 19, the Department of Justice (DOJ) announced that it settled allegations that a Florida-based mortgage lender violated the False Claims Act (FCA) ​by falsely certifying that it complied with Federal Housing Administration (FHA) mortgage insurance requirements for certain loans originated between 2006 and 2011 for $13.2 million. In the lawsuit, which…

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