Links in “Fines, Penalties, Suits, and Settlements”

Up until recently, the CFPB has seemingly been satisfied with imperfect compliance with the new mortgage servicing rules, so long as a “good faith effort” to comply with the rules is demonstrated. But the recent actions against Flagstar Bank seem to signify that the good faith effort isn’t enough anymore. In this video, AffirmX’s SVP and In-House Counsel Jane Pannier discusses what has happened and what it means for your institution. [10/10/14]

Anaheim, Calif.-based online lender used a subsidiary that originated the loans on a South Dakota Indian reservation to issue loans in Iowa that hit up to 169% on an annual basis. The tribal angle didn't fly with the Iowa Division of Banking, which revoked the license and hit the lender with $1.5 million in restitution of 3,400 loans to Iowans. [10/9/14]

The Justice Department is preparing charges against a number of U.S. and foreign banks that the agency believes altered foreign currency prices. These new charges follow charges earlier this year that certain American and foreign banks manipulated the Libor and engaged in the sale of faulty mortgage-backed securities. [10/8/14]

Attorney General Eric Holder may have dominated the limelight, but it was this 41-year-old Justice Department attorney who quietly muscled the deals through behind the scenes. For Geoffrey Graber, it was personal. [10/7/14]

It turns out to be complicated. JPMorgan's $13 billion settlement last year included $4 billion in consumer relief. The financial institution claims it has doled out more than $862 million in relief through various means. A settlement monitor has to sample loans before confirming JPM is meeting its obligations. [10/6/14]

Title insurance agency in Michigan found out the hard way that paying fees to companies under market services agreements based on referrals received was not a good way to get around RESPA requirements. [10/2/14]

Former Bush administration security advisor says that big penalties for AML mistakes, while effective in drawing attention, are creating a zero tolerance environment that threatens to push banks to exit whole regions and categories of businesses. [10/1/14]

Lighthouse Title has been ordered by the CFPB to pay $200,000 for referrals which violated RESPA. Director Cordray, stated, "[we] will continue to take action to ensure that the mortgage market is a level playing field where everyone plays by the rules." [10/1/14]

The CFPB has taken action against Flagstar Bank, citing the bank for violating the new mortgage servicing rules. The bank will pay $27.5 million to victims in addition to a $10 million fine. [9/30/14]

Merrick Bank of Utah pays a pretty penny for marketing and servicing credit card add-on products which were unfair and deceptive. [9/30/14]