Tagged as: Mortgage Loans

FHA Lender Settles False Claims Act Allegations for $113 Million

On April 15, the U.S. Department of Justice (DOJ) announced that a mortgage company settled claims it violated the False Claims Act by originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that failed to comply with certain requirements for the FHA insurance program. The settlement…

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California Department of Business Oversight Announces $10.1 Million Settlement with Mortgage Company Over Improper Fees

On November 19, 2015, the California Department of Business Oversight (DBO) announced that it had reached a settlement with a national mortgage company over allegations the company overcharged customers for mortgage settlement services. The company allegedly charged consumers a $200 settlement service fee in connection with mortgage loans. The fee…

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New York Financial Firm Ordered to Surrender License Over Alleged Cheating on Regulatory Exams

On November 19, 2015, the New York Department of Financial Services (DFS) announced​ that it had ordered​ a regional mortgage company to pay a $1 million fine and surrender its mortgage license over allegations the firm’s senior managers cheated on continuing education exams. Under New York law, all mortgage originators must…

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DOJ Settles with National Bank Over Bankruptcy Mortgage Payment Change Notices

On November 5, 2015, the DOJ’s U.S. Trustee Program announced that it entered into a nationwide settlement agreement with a national bank over allegations the bank failed to file mortgage payment change notices in bankruptcy proceedings. When a debtor has entered Chapter 13 bankruptcy proceedings, federal bankruptcy law requires mortgage…

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