Links in “Fines, Penalties, Suits, and Settlements”
- Mortgage Fraud Scheme Nets Connecticut Man 18 Months
Man and co-defendants recruited buyers to purchase more than 40 properties, then applied for loans on behalf of the buyers using false information, and pocketed the money for themselves. Banks lost between $2.5 million and $7 million. [2/6]
- Lawsuit Challenges HUD’s Use of Disparate Impact Liability under FHA
Two insurance industry groups are challenging HUD's rule adopted in February 2013 that formalized HUD's use of disparate impact liability under the FHA. The lawsuit submits that based on the FHA's plain language, the FHA only prohibits intentional discrimination. Plaintiffs in the Washington, D.C. federal district court have filed a motion for summary judgment. [2/6]
- FTC Seeks National Law on Data Security
In testimony before Senate Judicial Committee, FTC seeks expanded powers and enforcement capacity (penalties)Â to reduce security breaches and promote compliance with UDAAP, GLBA, FCRA, and COPPA. FTC further seeks national law requiring controls and consumer notification of security breaches. [2/5]
- Second Credit Union Files Suit Against Target
Pennsylvania credit union First Choice FCU has become the second credit union to file suit against Target for its massive data breach. The $38 million-asset credit union stated that it had to cancel and reissue 75 cards and faces losses for fraudulent charges, interest and transaction fees and other costs for monitoring and preventing fraud. [2/3]
- CFPB Goes After PHH for PMI Kickbacks
CFPB initiates proceedings against PHH alleging harm to consumers through a mortgage insurance kickback scheme dating back to 1995. CFPB will seek civil fines, an injunction and restitution. [1/30]
- $20 Billion in Penalties Later: JPM Gives Raise to Its Chief
Despite $20 billion in penalties that JPMorgan paid last year to federal authorities, the bank's board votes to give chairman and chief executive Jamie Dimon a raise as a reward for his stewardship through such a difficult period. [1/24]
- Cordray Heralds CFPB Results to Mayors
$3,000,000,000 in fines with 15,000 complaints: a month and a mandate to make every complaint count. [1/23]
- Rent Rates Connected to Loan Production Results in RESPA Violation
Missouri-based mortgage lender ordered to pay more than $80,000 for funneling illegal kickbacks in the form of rent reduction in exchange for referrals. [1/22]
- Small Bank Hit with Big Fine for Involvement with “Targeted Company”
Department of Justice squeezes $1.2 million settlement out of a small North Carolina bank for its involvement with a "targeted company" (payday lenders, credit repair organizations, mortgage assistance relief companies, etc.). [1/21]
- Big Fraud Case Comes to a Close
Lawrence Wright was sentence to six years in federal prison for conspiracy to commit bank fraud, conspiracy to commit money laundering, bank fraud, mail fraud, aggravated identity theft, and making a false statement to a federally insured financial institution. Additionally, he has been ordered to pay restitution fees in excess of $3.7 million. [1/20]
