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TRID at six months: Where does the industry stand? Part 1
Posted Date: Wednesday, March 23, 2016
April marks six months since the TILA-RESPA Integrated Disclosure (TRID) rule was implemented Oct. 3, 2015. Before the rule was implemented, many were concerned about the potential for delayed closings, technology glitches and confusion about what has been called the “black hole” of TRID. Recently, we sat down with Loretta Salzano to see how much of this came true. See the first part of our two part story here.
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TRID at six months: Where does the industry stand? Part 2
Posted Date: Thursday, March 24, 2016
April marks six months since the TILA-RESPA Integrated Disclosure (TRID) rule was implemented Oct. 3, 2015. Recently, we sat down with Loretta Salzano to see how well the industry is adjusting. See the second part of our two part story here to learn about how TRID has affected technology, affiliated businesses and the secondary market.
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Did Justice Scalia already decide Spokeo?
Posted Date: Monday, March 14, 2016
With the unexpected death of U.S. Supreme Court Justice Antonin Scalia came a tidal wave of change in the country. Along with questions as to who will be named as Scalia’s successor, there also has been question regarding the state of a case now pending before the Court which could have a big effect on the consumer financial services industry. Now the question is what that result will be now that Scalia has passed. See the options here.
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Final judgment issued in CFPB v. Morgan Drexen, attorneys held in contempt
Posted Date: Monday, March 21, 2016
A federal district court entered a final judgment against Morgan Drexen, Inc. in the case by the Consumer Financial Protection Bureau against the company. Both the company and its former president and CEO have been ordered to pay money damages, and its attorneys, who allegedly continued the company’s illegal actions after a permanent injunction was issued, have been held in contempt of court. See the details of the case here.
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Federal court denies former Fannie exec’s motion for summary judgment
Posted Date: Thursday, March 10, 2016
Former Fannie Mae chief executive Daniel Mudd will not be able to get out of the lawsuit initiated by the U.S. Securities and Exchange Commission (SEC), a federal court decided last week. Despite his efforts to be released from the suit, the judge found that the SEC had evidence which supported its claims that Mudd had made misleading statements regarding the mortgagor’s exposure to subprime mortgage loans before the financial crisis of 2008. See what the court had to say here.
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Appellate court rules on M&T RESPA class-action case
Posted Date: Thursday, February 25, 2016
The Third Circuit Court of Appeals filed its ruling on a class-action RESPA case brought against M&T Bank, alleging violations related to the bank’s captive reinsurance business. Did the appellate court find that plaintiffs’ claims could be equitably tolled? Read on for the details.
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HSBC to pay $4 million in force-placed insurance settlement
Posted Date: Thursday, February 25, 2016
The Massachusetts attorney general’s office announced it had reached a settlement with HSBC over allegations that it received commissions and other kickbacks related to force-placed insurance policies in the state. Read on to see how HSBC will disperse the $4 million it agreed to pay in the settlement.
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ABA: TRID still a problem, heavy compliance burden
Posted Date: Wednesday, March 2, 2016
A survey by the American Bankers Association (ABA) found that banks still are struggling to comply with the TILA-RESPA Integrated Disclosure (TRID) rule, which was implemented last October. According to the ABA, compliance with TRID “is still a relevant problem, continues to impose a heavy compliance burden and causes customer dissatisfaction through delayed closings and increased fees and costs.” See the details of the survey here.
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Lenders reluctant to share closing documents post-TRID, NAR says
Posted Date: Thursday, March 10, 2016
The National Association of Realtors performed a survey of a panel of mortgage originators regarding their experiences in the fourth quarter of 2015. The survey revealed that lenders are more reluctant to share closing documents with real estate agents following the implementation of the new TILA-RESPA Integrated Disclosure rules. See the reasoning and what else the survey uncovered about the post-TRID industry here.
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Survey reveals consumers not so thrilled about TRID
Posted Date: Monday, March 21, 2016
Repeat homebuyers believe that getting a mortgage under the new TILA-RESPA Integrated Disclosure (TRID) rules is harder than under the old rules, a new survey recently released by ClosingCorp says. Nonetheless, a majority found that the forms did a better job at preparing them for how much they would owe at closing. See the details here.
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MidAmerica Mortgage purchasing defect TRID loans
Posted Date: Monday, March 21, 2016
MidAmerica Mortgage, Inc. has been winning roughly 80 percent of its bids on TILA-RESPA Integrated Disclosure “defect” loans, owner and CEO Jeff Bode recently announced. The company, which is one of the few investors bidding on these loans, has been bidding on loans that have been rejected for purchase by other investors based on TRID infractions. See the details here.
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Corker asks CFPB how it will handle TRID implementation issues
Posted Date: Thursday, March 17, 2016
Senator Bob Corker (R-Tenn) recently wrote a letter to the Consumer Financial Protection Bureau Director Richard Cordray to express his concerns with the TILA-RESPA Integrated Disclosure rule. See what the senator would like to see the bureau address about the rule here.
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Cordray grilled on credit unions, TRID on the Hill
Posted Date: Thursday, March 17, 2016
Consumer Financial Protection Bureau Director Richard Cordray testified before the House Financial Services Committee on March 16, where, among other topics, he was asked about credit union regulations and TRID. The hearing was one of the two annual trips Cordray makes to each chamber of Congress. See what happened here.
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Fed seeks comment on Reg Z requirements
Posted Date: Friday, February 19, 2016
The Federal Reserve is seeking comments for an information collection to modify and update Regulation Z to account for pre-existing regulatory requirements that were not separately included in prior notices. It also seeks to account for requirements of new rules issued during the past three years. See the details here.
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CFPB requests comments for rural area designation procedure
Posted Date: Friday, February 19, 2016
The Consumer Financial Protection Bureau is requesting comments for a new information collection titled “Application Process for Designation of Rural Area under Federal Consumer Financial Law.” See how you can have your voice heard here.
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CFPB focuses on student loan servicing in latest supervision report
Posted Date: Monday, March 14, 2016
The Consumer Financial Protection Bureau (CFPB) released its latest supervision report, in which it reported that its exams of banks and nonbanks resulted in the remediation of $14.3 million to approximately 228,000 consumers. The latest report focuses on student loan servicing violations. See the details here.
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Credit unions garner support for CFPB regulatory relief
Posted Date: Monday, March 14, 2016
In an effort led by credit unions to increase support for a letter composed by Reps. Adam Schiff (D-Calif.) and Steve Stivers (R-Ohio), the number of federal legislators calling for the Consumer Financial Protection Bureau to use its authority to protect credit unions hit 330. The letter has garnered support from both sides of the aisle. See the details here.
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FHA unveils new loan-level, lender-level certifications
Posted Date: Thursday, March 17, 2016
The Federal Housing Administration (FHA) released new loan-level and lender-level certifications in an effort to provide more clarity for mortgagees. The FHA said these certifications will make it easier for banks to avoid penalties for errors during the mortgage process and jump-start lending to borrowers with lower credit scores.
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Group urges ethics inquiry into MBA’s Stevens
Posted Date: Wednesday, March 2, 2016
The National Legal and Policy Center, a right-leaning governmental ethics group, is encouraging the U.S. Attorney for the District of Columbia and the Inspector General of the Department of Housing and Urban Development to conduct an investigation of Mortgage Bankers Association CEO David Stevens. The group is alleging that Stevens violated ethics laws during his previous position as commissioner of the Federal Housing Administration. See the details here.
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Regulatory oversight causing increased loan servicing costs
Posted Date: Friday, February 19, 2016
Mortgage Bankers Association Vice-Chairman J. David Motley, CMB, president of Colonial Savings, F.A., spoke at the opening session of the Mortgage Bankers Association’s National Mortgage Servicing Conference and Expo 2016. See what he had to say here.
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Are we in the midst of another housing crisis? NAR’s Yun says ‘no’
Posted Date: Monday, March 21, 2016
National Association of Realtors’ Chief Economist Lawrence Yun recently discussed the question of whether the U.S. economy is entrapped in another housing bubble like the one that burst in 2008. Although Yun acknowledges that some of the conditions in the housing market today are similar, he states firmly that the U.S. is not experiencing another housing bubble. See what he had to say here.
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NS3 Preview: Attorneys to discuss RESPA, ethics, reverse vendor oversight
Posted Date: Wednesday, April 27, 2016
Title agents and attorneys are expected to adhere to the highest ethical standards, especially given Dodd Frank’s ban on unfair, deceptive or abusive acts or practices, which gave the CFPB broad authority to root out questionable activities. This will be the topic of a highly engaging ethical discussion at this year’s National Settlement Services Summit, led by Charles Cain and Marx Sterbcow. See more here.
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Long and winding road ahead for CFPB and PHH
Posted Date: Wednesday, April 27, 2016
Following the recent oral arguments in the D.C. Circuit Court of Appeals for the PHH Corp. v. Consumer Financial Protection Bureau case, many in the industry are hopeful that the court will decide in PHH’s favor. The decision is not likely to come out for a while, but even then, the case is likely far from over. See why here.
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CFPB reopens comment period on mortgage servicing provisions
Posted Date: Wednesday, April 27, 2016
The Consumer Financial Protection Bureau is reopening the comment period for proposed amendments to certain mortgage servicing provisions in Regulations X (RESPA) and Z (TILA). The proposed rule originally was published Dec. 15, 2014. The comment period will be open until May 26. See the details here.
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HUD reaches settlement with bank for alleged unfair lending practices
Posted Date: Wednesday, April 27, 2016
The Department of Housing and Urban Development announced that it has reached an agreement with North Carolina-based Fidelity Bank and the Fair Housing Project of North Carolina Legal Aid after receiving a complaint last year regarding alleged unfair lending practices. See the details of the settlement here.
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Saving for downpayment tough for millennials, survey shows
Posted Date: Wednesday, April 27, 2016
A recent survey by Apartment List of 30,000 lenders across the United States indicates that, although the vast majority of millennial renters (79 percent) want to purchase a home, many are finding it too expensive. Even so, young people in some of the most expensive areas of the country are underestimating how much they’ll need to purchase a home. See the details here.
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ABA recommends changes to CFPB’s interim rule
Posted Date: Wednesday, April 27, 2016
The American Bankers Association (ABA) recently wrote a comment letter applauding the Consumer Financial Protection Bureau’s interim final mortgage rule which broadens the availability of certain special provisions for small creditors operating in rural or underserved areas. Despite its support, ABA also urged a couple of changes and clarifications to the rule. See the details here.
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NS3 Preview: Industry leaders panel up to share insights
Posted Date: Monday, April 25, 2016
When the industry gathers in Charlotte, N.C., June 6-8 for the National Settlement Services Summit, it will have a chance to hear from a host of top underwriter and lender executives in three panels. Read on to find out who will be featured, and what to expect from some of the most dynamic sessions at the conference.
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Attorney loses to CFPB following loan modification scheme
Posted Date: Monday, April 25, 2016
An attorney who was accused of scamming homeowners seeking loan modifications received no relief from the Ninth Circuit Court of Appeals recently. The Ninth Circuit upheld the judgment against attorney Chance Gordon of California, who purported to provided home loan modification services to homeowners struggling to make their monthly payments. See the details of the case here.
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CFPB to host field hearing on arbitration
Posted Date: Monday, April 25, 2016
The Consumer Financial Protection Bureau will be conducting a field hearing in Albuquerque, New Mexico, about arbitration. Arbitration has become one of the CFPB’s key concerns over the years, much to the chagrin of industry groups. See the details of the meeting here.
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Ratings agency said TRID to have limited effect on securities
Posted Date: Monday, April 25, 2016
Kroll Bond Rating Agency recently released a report stating that it expects errors from loans conducted since the TILA-RESPA Integrated Disclosure rule took effect to have a limited impact on residential mortgage-backed securities markets. See the details of the report here.
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Vedi veni vici: RESPRO edition
Posted Date: Monday, April 25, 2016
Last week, RESPA News was in New Orleans to attend the 2016 Real Estate Services Providers Council (RESPRO) annual conference. See how it all went down here.
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Survey: Banks show more attention to commercial real estate
Posted Date: Monday, April 25, 2016
The American Bankers Association released its first annual Commercial Real Estate Lending Survey last week. The results of the survey show that 82 percent of banks plan to increase capital concentration in commercial real estate. See the details of the survey here.
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Ratings agency said TRID to have limited effect on securities
Posted Date: Thursday, April 21, 2016
Kroll Bond Rating Agency recently released a report stating that it expects errors from loans conducted since the TILA-RESPA Integrated Disclosure rule took effect to have a limited impact on residential mortgage-backed securities markets. See the details of the report here.
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NS3 Preview: Lender Oversight PACE Lap sessions focus on liability, compliance
Posted Date: Thursday, April 21, 2016
This year at the National Settlement Services Summit (NS3) June 6-8 October Research, LLC will be offering an all-new feature called the Lender Oversight PACE Lap. It will feature four high-impact sessions examining a range of third-party compliance issues. One of these speakers, Brent Laliberte gave a preview of the sessions. Keep reading to learn more.
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Cordray responds to inquiry on credit unions
Posted Date: Thursday, April 21, 2016
Consumer Financial Protection Bureau (CFPB) Director Richard Cordray responded to an inquiry from a pair of House representatives on credit union and community bank exemptions from CFPB rulemaking, saying the bureau has taken steps to provide regulatory relief to small institutions. Read on for more details.
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Sanders housing plan focused on first-time buyers, affordable housing
Posted Date: Thursday, April 21, 2016
In the days before the New York primary, Sen. Bernie Sanders released a comprehensive housing plan if he were elected president. Among the areas Sanders said he would work to improve are promoting homeownership, expanding affordable housing, helping underwater homeowners, and preventing homelessness. Read on for details of the candidate’s plan.
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CFPB report links online payday loans, bank penalties
Posted Date: Thursday, April 21, 2016
A new report from the Consumer Financial Protection Bureau showed a connection between loans trying to be collected by online payday lenders and increased bank penalties by customers of those loans. The report is based on data collected by the bureau in a previous report, spanning 2011-2012. Read on for the details.
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SFIG proposal to standardize TRID review gets high marks from Fitch
Posted Date: Thursday, April 21, 2016
Snippet: The Structured Finance Industry Group has been working on a draft proposal to standardize the approach to review loans made since the TILA-RESPA Integrated Disclosure rule took effect. The proposal received high remarks from Fitch Ratings, which said in a report that it marked a “significant step forward for developing an industry standard treatment of errors related to the new residential mortgage disclosure requirements.” Read on for details of the proposal and Fitch’s review.
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ABA survey finds more servicing held, more loans in portfolio
Posted Date: Thursday, April 21, 2016
At its Real Estate Lending Conference in San Antonio, Texas, this week, the American Bankers Association released its 23rd annual Residential Real Estate Survey, showing that banks generally were holding more of their servicing rights and keeping more loans in portfolio. How is regulatory compliance affecting their bottom line? Read on for the details.
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House bill would delay HMDA information release
Posted Date: Thursday, April 21, 2016
U.S. Rep. Randy Hultgren (R-Ill.) and two others have introduced legislation to delay public release of Home Mortgage Disclosure Act (HMDA) information until a study on its impact on consumer privacy can be made. The new HMDA rule, finalized by the Consumer Financial Protection Bureau in October 2015, is set to take effect Jan. 1, 2018. Read on for more details.
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CFPB hosts second TRID Q&A
Posted Date: Friday, April 15, 2016
The Consumer Financial Protection Bureau (CFPB) hosted its latest webinar on the TILA-RESPA Integrated Disclosure (TRID) rule this week. It is the second webinar on the TRID rule, also known as Know Before You Owe, since the rule was implemented on Oct. 3, 2015. See the questions the bureau provided here.
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We’re live at the 2016 RESPRO annual conference
Posted Date: Friday, April 15, 2016
RESPA News is in New Orleans today to bring you coverage from the 2016 Real Estate Services Providers Council annual conference. We’ll be doing live updates throughout today and tomorrow. See how to keep track of us here.
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Indiana federal court upholds state court’s RESPA judgment
Posted Date: Friday, April 15, 2016
After sorting through a long, rambling complaint with plenty of causes of action listed, the U.S. District Court for the Southern District of Indiana upheld an Indiana appellate court’s decision regarding the plaintiff’s RESPA violation claim. See the details of the case here.
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Moody’s: TRID could cause GSE investors trouble
Posted Date: Friday, April 15, 2016
The Federal Housing Finance Agency has instructed Fannie Mae and Freddie Mac not to conduct loan-level reviews for technical compliance to the TILA-RESPA Integrated Disclosure rules during the rule’s transitional period. However, according to Moody’s Investors Service, this creates a risk for investors in bonds linked to the performance of loans insured by Fannie and Freddie, called credit risk transfer transactions. See the details here.
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House committee passes bill to reign in CFPB
Posted Date: Friday, April 15, 2016
The House Financial Services Committee recently approved bills that put the Consumer Financial Protection Bureau on a spending budget and repeal the Dodd-Frank Act’s bailout fund for large, complex financial institutions. See the details of the two bills here.
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Wells Fargo’s $1.2 billion settlement approved
Posted Date: Wednesday, April 13, 2016
The federal government’s case against Wells Fargo for mortgage fraud related to Wells Fargo’s participation in the Federal Housing Administration Direct Endorsement Lender Program has come to a close, the Justice Department recently announced. Wells Fargo agreed to pay a $1.2 billion settlement to the FHA for its violations. See the details of the settlement here.
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Merrill Lynch breaks with PHH
Posted Date: Wednesday, April 13, 2016
In a statement to investors, PHH Corp. recently announced that Merrill Lynch Home Loans, a division of Bank of America, intends to move the origination of new applications for certain mortgage loan products to its internal operations effective April 25, and has significantly reduced its volume forecast for the remainder of 2016. See the details of the statement here.
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CFPB to consumers: Here’s our number, call us maybe?
Posted Date: Friday, April 8, 2016
The Consumer Financial Protection Bureau recently released information for consumers on how to directly speak with people at the bureau regarding any issues they have regarding a financial product or service. See the details here.
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CFPB to host discussion on credit scores, community banks
Posted Date: Friday, April 8, 2016
The Consumer Financial Protection Bureau will be hosting its Community Bank Advisory Council meeting, featuring Director Richard Cordray. At the meeting, the council will discuss credit scores and credit reporting and implications for community banks. Read on for the details.
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PHH update: Judges raise constitutional questions before hearing
Posted Date: Wednesday, April 6, 2016
PHH Corp. will face the Consumer Financial Protection Bureau (CFPB) in oral arguments next week, but before the two present their cases before the U.S. Court of Appeals for the District of Columbia, two of the appeals court judges have a few preliminary questions. See what questions the court wants the lawyers to be prepared to answer here.
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Ocwen, NAACP team up to keep struggling borrowers in their homes
Posted Date: Wednesday, April 6, 2016
Ocwen Financial and the NAACP are teaming up to reach struggling mortgage borrowers to stay in their homes via a series of community outreach events. See more details about how the program helps to counsel these borrowers here.
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Cities working to eliminate neighborhood blight
Posted Date: Wednesday, April 6, 2016
Cities across the country are working to eliminate blight in their neighborhoods via new rules and legislation. Lawmakers in Michigan, Pennsylvania and Oregon are putting forth various plans to cure problems of abandoned homes. See what they want to do here.
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NAFCU outlines TRID concerns in response to congressmen’s inquiry
Posted Date: Friday, April 1, 2016
In response to a request by Reps. Blaine Luetkemeyer (R-Mo.) and Randy Neugebauer (R-Texas), National Association of Federal Credit Unions President and CEO Dan Berger outlined his organization members’ major concerns with the TILA-RESPA Integrated Disclosure rule in a recent letter. See the exchange here.
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Mortgage complaints increased from last year, CFPB report finds
Posted Date: Friday, April 1, 2016
The Consumer Financial Protection Bureau (CFPB) released its latest monthly consumer complaint snapshot, which highlights consumer complaints related to debt collection, but the report also found that the volume of mortgage complaints has been increasing both year-over-year and month-over-month. See the trends here.
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HAMP scammers could face 20 years behind bars
Posted Date: Friday, April 1, 2016
A scam in which five men persuaded more than 400 distressed homeowners to send “reinstatement fees” and “trial mortgage payments” to participate in the Treasury Department’s Home Affordable Modification Program (HAMP) came to a close when the ringleader, Roscoe Ortega Umali, and his four other co-conspirators pleaded guilty to fraud. See the details of the case that lost more than 400 homeowners their homes and $3.8 million here.
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Former bank CEO gets 11 years for lying to regulators, concealing losses
Posted Date: Friday, April 1, 2016
Gilbert Lundstrom, 74, former CEO of TierOne Bank, was sentenced to 11 years in federal prison last week after the Justice Department says he concealed more than $100 million in losses on loans and real estate. He also was ordered to pay a $1.2 million fine. See the details of the case here.
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Credit Suisse to pay millions for toxic RMBS deals
Posted Date: Friday, April 1, 2016
Credit Suisse will pay more than $29 million resolving claims by the National Credit Union Administration that the bank had sold toxic mortgage-backed securities to credit unions, which later failed. See the details of the case here.
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