Links in “Fines, Penalties, Suits, and Settlements”
- Oops: HUD Background Checks May Need a Little Tightening
Former loan guarantee specialist for HUD had a prior criminal record that spanned more than two decades. He was just sentenced to 26 months for defrauding the government of $843,000. [1/13/15]
- Pursuing Old Debts Costs Encore
Encore Capital obtained judgments against consumers for debts that were too old to collect, and must now get more than 4,500 in judgements totaling $18 million thrown out under terms of a settlement with New York. [1/12/15]
- Citi Picked the Wrong Wrong House to Foreclose On
CitiMortgage breaks into the wrong house, clears its contents, changes the locks, and posts the home. The right house was two doors down. The wrong house belonged to an attorney. It went downhill from there. [1/9/15]
- Attorneys Take FDCPA Where It Was Never Intended to Go
New breed of lawsuits stretches Fair Debt Collection Practices Act beyond its original intent of shielding borrowers from abusive and unfair debt collection practices. Now attorneys are challenging the validity of the venue of lawsuits brought where lenders have moved outside the state where the collateral for the mortgage is located. [1/5/15]
- HUD Compliance Failures Cost Mortgage Lender $36 Million
New York-based Golden First Mortgage's authority to originate, underwrite and certify mortgages for FHA insurance was abused on more than 1,000 mortgage loans. The company has settled for $36 million. [1/5/15]
- Wells Fargo, Ocwen Dominate Debt Servicing News in 2014 (Not in Good Ways)
Of the top five stories of debt servicing in 2014, Wells Fargo and Ocwen are each featured in two, and in ways they are not likely to recall with fondness. [12/30/14]
- Judge Orders Credit Suisse to Face the Music
New York's Supreme Court rejects Credit Suisse's request to dismiss a $10 billion lawsuit by the state's attorney general accusing the Swiss bank of fraud in the sales of mortgage-backed securities before the 2008 financial crisis. The move is expected to strengthen NY's hand in punishing other banks for bad behavior tied to the recession. [12/29/14]
- NCUA Sues Wells Fargo
The spirit of the holidays hasnât stopped NCUA from filing another federal lawsuit in its continuing effort to recover losses from the failed corporate credit unions. This time they have Wells Fargo Bank National Association in their crosshairs for failing to fulfill its fiduciary duties as trustee for 27 residential mortgage backed securities trusts. [12/24/14]
- How Heavy Regulatory Burdens on Banks Fueled Ocwen’s Disaster
Ocwen's portfolio grew rapidly over the last two years largely from banks seeking to deal with heavy regulatory burdens. The rapid expansion attracted regulatory scrutiny, resulting in a $150 million fine, the removal of its founder, and a precipitous drop in its stock price. [12/24/14]
- Ocwen Settlement: $150 Million and One Chairman
Mortgage servicer Ocwen settled with New York for alleged misdeeds in its dealings with distressed homeowners for $150 million and the resignation of its founder and executive chairman. [12/23/14]
