Tagged as: Mortgage Servicing

CFPB Secures $7.9 Million Trial Verdict Against Mortgage Loan Servicer

On September 8, a federal judge in California ordered a national mortgage services company to pay a $7.9 million civil penalty based on false or misleading marketing statements it allegedly made to consumers about its mortgage loan repayment services.  The court, however, denied the Consumer Financial Protection Bureau’s (“CFPB”) request for $74 million in restitution, finding that the…

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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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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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HUD Announces Settlements with Insurance Companies Over Alleged Discriminatory Practices

On January 26, 2017, the Department of Housing and Urban Development (“HUD”) announced that it reached settlements with two insurance companies, available here and here​, resolving allegations that the companies’ practice of refusing to provide home insurance on properties used for subsidized or low income housing had a discriminatory effect on…

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Ohio AG Files Lawsuit Against Mortgage-Relief Services Provider

On November 4, 2016, the Ohio Attorney General’s office (AG) announced it filed a complaint against a California-based mortgage-relief services provider and its director (Defendants) alleging violations of Ohio’s consumer protection laws.  The complaint alleges that the provider sent advertisements to Ohio residents stating that the company has helped consumers to “receive payment…

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Flynn, Whalen and Swank Published in September 2016 issue of Mortgage Banking for Article: “Servicing Remains an Enforcement Target”

Goodwin’s Michael Flynn, a partner in the Financial Industry, Banking, Consumer Financial Services, and FinTech practices; Mike Whalen, a partner in the Technology Group and co-leader of the FinTech practice; and Levi Swank, an associate in the Financial Industry and Consumer Financial Services Litigation practices, were published in the September…

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OCC Terminates Mortgage Servicing Consent Order and Assesses Civil Money Penalties Against Two National Banks

On January 5, 2016, the Office of the Comptroller of Currency (“OCC”) announced that it had terminated consent orders against two national banks.  In doing so, the OCC assessed civil money penalties against the banks relating to previous violations of the existing consent orders.  The OCC announced that it was terminating…

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OCC Terminates, Amends Consent Orders With National Banks

On June 17, the Office of the Comptroller of the Currency (OCC) announced that it terminated foreclosure-related consent orders with three national banks, entered into amended consent orders with six other national banks, and decided to escheat at the end of the fiscal year any uncashed payments made under the Independent Foreclosure Review Payment Agreement…

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