DOJ

DOJ Investigates FHA Loans Issued by Florida-Based Mortgage Subsidiary

On January 25, 2018, a Florida-based homebuilder filed its Form 10-K annual report with the Securities and Exchange Commission (SEC), disclosing that its “mortgage subsidiary has been subpoenaed by the United States Department of Justice (DOJ) regarding the adequacy of certain underwriting and quality control processes related to Federal Housing Administration (FHA)…

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DOJ Settles With Mortgage Lender for $11.7 Million for FHA Mortgages

On December 8, the U.S. Department of Justice (DOJ) announced that it had settled allegations that a Louisiana-based mortgage lender violated the False Claims Act (FCA) through its underwriting of Federal Housing Administration (FHA)-insured mortgage loans.  In the lawsuit, which is pending in the U.S. District Court for the Eastern District of Arkansas, the…

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DOJ Sues Foreclosure Trustee for Illegally Foreclosing on Homes of Servicemembers

On November 9, the Department of Justice (“DOJ”) annou​nced its lawsuit against a foreclosure trustee for wrongfully foreclosing on at least twenty-eight servicemembers in violation of the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. § 3953. The SCRA prohibits foreclosure on the home of a servicemember during active military service…

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DOJ Settles Claims With Auto Finance Companies Over Repossessing Active Duty Servicemembers’ Vehicles

On September 27, the U.S. Department of Justice (“DOJ”) announced that it had entered into a $760,000 settlement​ with two affiliated auto finance companies stemming from allegations that the companies violated the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. § 3901, et seq., by failing to obtain court orders prior to repossessing vehicles owned…

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DOJ Obtains $907,000 Settlement for Auto Lender's Repossession of Active Duty Servicemembers' Vehicles

On September 18, 2017, the Department of Justice (“DOJ”) announced that it had entered into a $907,000 settlement with an auto loan lender and servicer (“Defendant”).  In its co​mplaint,​ filed the same day in the United States District Court for the Northern District of Texas, the DOJ alleged that the Defendant had…

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Q2 2017 Sees Significant Decrease In Civil Penalties and Consumer Relief

In the second quarter of 2017, Consumer Enforcement Watch tracked 40 enforcement actions taken against consumer financial service providers. This represents a marginal decrease from the 46 enforcement actions taken against consumer financial service providers that we tracked last quarter, and from the 46 enforcement actions tracked in the second…

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