Mortgage

Mortgage Lender Pays $4.157 Million to Settle False Claims Act Allegations Concerning FHA Loans

​On July 3, 2017, the United States Department of Housing and Urban Development (HUD), the HUD Office of Inspector General (HUD-OIG), the U.S. Attorney’s Office for the Northern District of Georgia, and the U.S. Attorney’s Office for the Northern District of California announced that they had reached a settlement with a national mortgage lender, resolving…

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CFPB Takes Action Against Mortgage Servicer for Unlawful Practices

On June 7, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a Chicago-based mortgage servicing company, settling allegations that it failed to provide borrowers with the foreclosure protections required by law. According to the CFPB, the mortgage servicer violated federal consumer protection laws in its…

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Kentucky AG Announces Home Loan Protections in Connection with Settlement with Mortgage Recording Company

On May 25, 2017, Kentucky Attorney General Andy Beshear (“Kentucky AG”) announced steps it is taking to provide guidance to Kentucky homeowners whose banks use online mortgage recording databases​ instead of traditional public land records to track land ownership.  The Kentucky AG has provided county clerks with information to post in…

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Reverse Mortgage Servicer to Pay $89 Million to Resolve False Claims Act and FIRREA Claims

On May 16, 2017, the U.S. Department of Justice (“DOJ”) announced that it had reached a settlement with a company engaged in reverse mortgage servicing, in connection with the company’s participation in the Department of Housing and Urban Development’s (“HUD”) Home Equity Conversion Mortgage (“HECM”) program, which offers senior citizens reverse mortgages insured by the Federal Housing Administration…

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Massachusetts AG Settles With Mortgage Broker and Insurance Agent Over Alleged Deceptive Practices

On April 12, 2017, the Massachusetts Attorney General’s Office (AG) announced that it had reached a settlement with a mortgage broker, its employee, and an insurance agent, resolving allegations that they had preyed on elderly consumers by causing them to take out reverse mortgages on their homes.  The AG alleged that the broker and agent induced elderly…

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California DBO Enters Into $1.4 Million Consent Order With Mortgage Lender Over Interest Charges

On April 10, 2017, the California Department of Business Oversight (DBO) announced​ that it had entered into a consent order with a Michigan-based residential mortgage lender and servicer over allegations that the firm was overcharging consumers for interest on a number of loans. The DBO brought an enforcement action against the…

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Mortgage Servicer Enters in to $225 Million Consent Order with California DBO

On February 17, 2017, the California Department of Business Oversight (California DBO) announced that it had entered in to a $225 million consent order with a national mortgage servicer following an investigation by a third-party auditor into loans serviced by the company in California between January 1, 2012 and June 30, 2015.  The servicer had agreed to the audit…

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