Links in “Fines, Penalties, Suits, and Settlements”
- Impact of JPM Settlement on Credit Unions
The Department of Justice has announced that the NCUA will be receiving a $1.4 billion dollar settlement from JPMorgan as compensation for failed corporate credit union investments. According to NCUA Chair Debbie Matz, this settlement along with other settlements should greatly reduce future assessments to credit unions. [11/20]
- When to Fight the Federal Government, According to Cuban
Contrary to the JPM "settlement seeking" approach, "bazillionaire" Mark Cuban prefers or more aggressive stance when it comes to taking on the federal government. It helps to have pockets that are very, very deep. [11/20]
- JPM’s Preferred Approach to Regulatory Conflicts: Resolution
"It is very had to fight with your regulators or the federal government," says JPMorgan Chase CEO Jamie Dimon as news that its $13 billion settlement was finalized. [11/20]
- RMIC Hit for Kickbacks
CFPB fines RMIC $100,000, but requires remediation efforts and cessation of practice. Fine focuses on alleged RMIC practice of requiring captive reinsurance to the benefit of lenders in exchange for referrals of private mortgage insurance business. [11/18]
- Second Disparate Impact Shoe Drops: Mt. Holly Settles
The second opportunity to gain clarity from the Supreme Court on the issue of disparate impact effectively disappeared last night when the Mount Holly town council voted last night to approve a settlement. [11/14]
- Fraud Nets Former Bank Exec 23 Years in Jail and $333 Million in Restitution
Former CEO/president of the now defunct Bank of the Commonwealth in Virginia sentenced for conspiracy to commit bank fraud, false entry in a bank record, unlawful participation in loans, and more. [11/12]
- Castle & Cooke Hit for Steering
CFPB hits Castle & Cooke Mortgage for $13 million in restitution and fines for fair lending issues surrounding allegedly steering consumers into costlier mortgages and for allegedly paying loan officers illegal bonuses. [11/8]
- Mt. Holly May Vote Tonight on Disparate Impact Case
Settlement would again avert the Supreme Court's ruling on the issue of disparate impact, in which it is not necessary to show intent to discriminate, only that a policy has had a disproportionate effect on racial minorities. [11/6]
- HUD Hits Deutsche Bank Hard for Fair Housing Violations
HUD and Deutsche Bank agree upon $12.1 million settlement for 2007-2008 actions of an indirect subsidiary of the Bank (MortgageIT, Inc.). Allegations focused on the residential lender discriminating practices against African American and Hispanic borrowers seeking mortgage loans including charging higher APRs and fees than similarly-situated white borrowers and denying minority applicants loans more often than similarly-situated white applicants. Findings present key comparative statistical analysis that should be analyzed by every FI to ensure practices are not occurring. [11/6]
- Pregnant Pause and Penalty against BofA
Bank of America fined $45,000 for resolution of allegations that the lender discriminated against pregnant women seeking mortgage loans. Broader potential impact for all lenders to ensure that their practices do not include similar practices that included settlement date and denial of application due to discounting of income for pregnant woman. BofA praised for cooperation in working with HUD. [11/5]
