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  • Ocwen facing CFPB investigation, potential fine for servicing practices

    It’s been nearly three years since Ocwen Financial agreed to offer $2 billion in consumer relief and pay up to $127.3 million to settle a Consumer Financial Protection Bureau investigation into its servicing practices. But it looks like Ocwen may not be done with the CFPB yet, as the company revealed Thursday that the bureau is currently investigating the company’s mortgage servicing practices, which could lead to a fine and/or other disciplinary action.

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Citi nears resolution on massive mortgage fraud probe

Follows string of high profile settlements


Citi [C] is said to be nearing a settlement with the Justice department in regard to a mortgage probe investigating the allegation of fraud and document mishandling according to the Wall Street Journal.

The article points out this is the latest in a string of such investigations:

A settlement with Citigroup next week would come on the heels of an $8.9 billion deal between federal and state officials and BNP Paribas SA that required the French bank to plead guilty to criminal charges related to the violation of U.S. sanctions.

The Justice Department also has been in talks with Bank of America Corp. to resolve civil probes over its mortgage business. The Citigroup mortgage investigation is among a handful of cases relating to bank conduct ahead of the 2008 financial crisis still pending before the Justice Department.

According to the report, the issue at hand is the total amount.

Citigroup offered about $4 billion, while the government was seeking close to $10 billion. That is a figure the bank found "objectionable" according to people familiar with the matter, according to the article.

Last year, Mega bank JPMorgan Chase (JPM) reached a $4.5 billion agreement with 21 major institutional investors to resolve legacy mortgage-backed securities issues.

Source: The WSJ

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