Mortgage

Federal Reserve Board Fines National Bank $8.6 Million Civil Penalty for Mortgage Servicing Related Deficiencies, Ends Enforcement Action from 2011

On August 10, 2018, the Board of Governors of the Federal Reserve (“Board of Governors”) announced that a national bank had consented to the assessment of a civil money penalty totaling $8.6 million pursuant to the Federal Deposit Insurance Act, as amended, 12 U.S.C. §§ 1818(b)(3) and 1818(i)(2)(B), for engaging in…

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FTC Obtains Preliminary Injunction Against Mortgage Relief Operation

FTC

On May 8, the Federal Trade Commission (“FTC”) announced that the U.S. District Court for the Central District of California granted its request to preliminarily enjoin affiliated California-based debt relief companies from continuing operations, and to freeze their assets. In its complaint, the FTC alleged that the companies violated Section 5(a) of the Federal Trade Commission Act,…

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CFPB and OCC Settle with National Bank for $1 Billion Over Auto and Mortgage Lending Practices

On April 20, 2018, the Consumer Financial Protection Bureau (CFPB)​ and Office of the Comptroller of the Currency (OCC) each announced settlements totaling $1 billion with a national bank resulting from a coordinated action between the two agencies. The OCC found that deficiencies in the bank’s enterprise-wide compliance risk management program…

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D.C. Circuit Issues Long-awaited Decision in PHH Corp. v. CFPB, Reinstating the Panel's RESPA Holdings

On January 31, 2018, the U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit), sitting en banc, issued its long-awaited decision in PHH Corp. v. CFPB, holding that the provision of the Dodd-Frank Act shielding the single director of the CFPB from removal without cause is constitutional.  In all,…

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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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Federal Reserve Enters Consent Order With Kansas Bank Over Deceptive Mortgage Origination Practices

​On November 28, the Federal Reserve announced that it had entered into a consent order with a Kansas state bank, resolving allegations that the bank engaged in deceptive residential mortgage lending practices in violation of Section 5 the Federal Trade Commission Act. According to the consent order, the bank’s loan officers often gave borrowers…

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FTC Secures Summary Judgment Over Alleged Fraudulent Mortgage Relief Scheme

On September 20, the Federal Trade Commission (FTC)  announced that the U.S. District Court for the Central District of California entered summary judgment against two law firms and two individuals for their participation in an allegedly fraudulent mortgage relief scheme. According to the FTC, the law firms misrepresented to consumers that they could obtain monetary recoveries…

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Court Awards Nearly $280 Million in Treble Damages Against Former FHA Lender

On September 14, 2017, the U.S. District Court for the Southern District of Texas issued an opinion and order against two former mortgage companies and their former president and CEO.  The order, which followed a previous jury verdict against the company, awarded the Government nearly $280 million in treble damages under the False Claims Act (FCA), approximately $13 million…

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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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