In the wake of the financial crisis and with the advent of the Consumer Financial Protection Bureau (CFPB), federal and state enforcement officials have increasingly scrutinized consumer financial products and services. In many situations, these officials and agencies coordinate to advance common or similar claims and actions. Against this backdrop, we created the Consumer Finance Enforcement Watch blog – the marketplace’s first resource for real-time reporting on the full range of public federal and state consumer finance enforcement activity. Here, you will also find links to enforcement documents, statistics on the volume and nature of enforcement actions as well as reports and comments on significant enforcement trends and issues.

Regional Bank Settles Allegations of FHA Mortgage Lending Violations with Justice Department for $212.5 Million

On June 1, 2015, the Department of Justice announced a settlement with a regional bank over allegations that the bank originated and underwrote mortgage loans that did not meet applicable requirements of the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) insurance program.  The settlement was previously…

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OCC Enters Consent Orders with National Bank Regarding Compliance with SCRA

On May 29, 2015, the Office of the Comptroller of the Currency (“OCC”) entered into two consent orders with a National Bank regarding the bank’s non-home loan compliance with the Servicemembers Civil Relief Act (“SCRA”) and the bank’s practices in connection with non-home debt collection litigation practices. The OCC estimates…

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CFPB and Florida AG Granted Default Judgment Against Florida Mortgage Relief Companies

On May 29, 2015, the United States District Court for the Southern District of Florida granted the Consumer Financial Protection Bureau (“CFPB”) and the State of Florida​ a final default judgment​ against a Florida Foreclosure Relief Company and its corporate affiliates based on the company’s failure to answer or otherwise…

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MI Attorney General Files Criminal Charges Alleging Fake Loan Modification Scheme

On May 22, 2015, the Michigan Attorney General (“AG”) and its Homeowner Protection Unit filed charges in Oakland County’s 48th District Court against a Michigan mortgage company and its owner alleging that the owner and mortgage company engaged in a scheme to defraud borrowers by promising to modify mortgages for…

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HUD Settles Fair Housing Claim with Regional Bank for $200 Million

​​The U.S. Department of Housing and Urban Development (HUD) announced that it reached a settlement agreement with a regional bank over a disparate treatment fair housing claim.  HUD alleged that the bank engaged in racially discriminatory redlining by lending less in majority-minority census tracks than in other neighborhoods.  Under the…

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State Attorneys General Announce Settlement with Credit Reporting Agencies

On May 20, 2015, Ohio Attorney General Mike DeWine, along with attorneys general of thirty other states (“the State AGs”), announced a $6,000,000 settlement with three major credit reporting agencies (“CRAs”). According to the announcement and the Settlement Agreement, the settlement is a culmination of a multistate investigation that the…

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New York Federal Court Issues TRO Over Debt Collector's Communications

FTC

​​On May 21, the Federal Trade Commission (FTC) announced​​ that its “Messaging for Money” enforcement campaign resulted ​in the U.S. District Court for the Western District of New York issuing a temporary restraining order against a debt collector who, according to the FTC’s complaint filed on May 11,  allegedly told consumers via text messages that legal actions had been filed…

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