The lawsuit alleged the bank was using rubber-stamped promissory note endorsements in violation of a consent judgment. Bank of America agreed to pay $3.4 million to the federal government to settle whistleblower claims filed by Miami attorney Bruce Jacobs. The Jan. 5 agreement stems from allegations that the bank didn’t meet documentation standards for foreclosures and bankruptcies even after …
Month: January 2018
Lennar mortgage division scrutinized for alleged FHA violations
The mortgage subsidiary of one of the nation’s largest homebuilders is under investigation by the Department of Justice for its handling of Federal Housing Administration Loans. Lennar disclosed the investigation last week in a filing with the Securities and Exchange Commission, according to a USA Today report. Lennar said in the filing that federal authorities …
US has most affordable, unaffordable housing markets in the world – study
There are only 10 affordable major housing markets in the world, and all cities are found in the US, according to the Demographia International Housing Affordability Survey. However, the US also has the largest number of severely unaffordable major housing markets for all of the countries covered by the survey. The Demographia study looked at …
Ex-employee claims banking giant used him as scapegoat for predatory mortgage fees
Wells Fargo is facing a wrongful-termination lawsuit in which a former mortgage banker it employed claims the bank used him as a scapegoat for its predatory mortgage pricing policies, the Los Angeles Times reported. David Eghbali had been one of Wells Fargo’s top mortgage bankers. The bank fired him in 2015 over a scheme in …
Mulvaney outlines ‘humble, prudent’ vision for CFPB
Consumer Financial Protection Bureau Acting Director Mick Mulvaney has clarified his vision for the consumer watchdog, completely reversing his predecessor’s approach, according to a report by The New York Times. In a letter to bureau staff, Mulvaney outlined his vision for the agency, which involves enforcement of financial regulation and consumer protections with “humility and …
In most punk-rock moment of his career, Ataris bassist nabbed for fraud
What’s more punk-rock than real-estate fraud? Oh, practically anything? Okay, then. Don’t tell that to Michael Davenport, former bassist for punk band The Ataris. Davenport, 49, has been indicted on federal conspiracy and fraud charges for allegedly running a massive real estate scam that bilked more than 100,000 victims out of $27 million. Davenport and …
After weathering controversy, SoFi names new CEO
P2P lender Social Finance (SoFi) has named a former Twitter exec as its new chief executive officer. The appointment comes in the wake of the September resignation of the former SoFi CEO amidst a firestorm of controversy. SoFi has named Anthony Noto as CEO and as a director, effective March 1. Interim CEO Tim Hutton, …
Ocwen settles servicing complaints with two more states
Ocwen Financial has reached agreements with two more states over last year’s regulatory actions against the company. Ocwen has reached accords with North Carolina and South Dakota, bringing the total number of jurisdictions where the company has reached a resolution to 27, according to a recent regulatory filing. The company’s troubles began in April, when …
Bank of America will charge a $12 monthly fee for accounts with less than $1,500 or monthly direct deposits of at least $250
Bank of America has eliminated its free checking account program, a service that was popular with many low-income customers looking to avoid extra fees for having a low balance. Beginning this month, all eBanking customers will face a $12 monthly fee unless the customer has a direct deposit of $250 or more or a minimum balance …
Former banker sues Wells Fargo, says he blew whistle on mortgage practices
A former Wells Fargo mortgage banker in Beverly Hills who was fired and later fined by federal regulators has sued the bank, saying he was used as a scapegoat and that regulators ignored his attempts to report bad practices. Read on. David Eghbali, who had been one of the bank’s top mortgage bankers, said the …