Items Tagged with 'Department of Justice'


DOJ planning to sue Moody's over crisis-era mortgage bond ratings

Ratings agency discloses looming lawsuit from government
In the fallout from the financial crisis, many argued that the credit ratings agencies’ competition for business led to ratings shopping among bond issuers and relaxed ratings standards for the ratings agencies themselves. Last year, Standard & Poor's reached a $1.375 billion settlement over just such claims. And now the Department of Justice is taking aim at Moody's Investors Service.
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First American Mortgage Trust to pay $1 million for FHA lending violations accused of knowingly submitting false claims for FHA insurance
First American Mortgage Trust, which does business as, and the company’s CEO will pay slightly more than $1 million to settle charges brought by the Department of Justice, which accused the lender of submitting false claims on mortgages insured by the Federal Housing Administration.
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Senators call for DOJ investigation of Wells Fargo executives

Will execs face prosecution for 2 million fake accounts?
The Department of Justice announced last year that it planned to begin targeting individual employees for corporate misconduct. Now, a group of senators are asking the DOJ to put that new policy to work and investigate, and perhaps even prosecute, executives at Wells Fargo for the fake accounts scandal.
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BB&T to pay $83 million for FHA lending violations

Latest lender to be accused of violating False Claims Act by DOJ
BB&T will pay $83 million to settle allegations brought by the Department of Justice, which accused the lender of violating the False Claims Act by falsely certifying that it complied with “critical underwriting and quality control requirements” on mortgages insured by the Federal Housing Administration. BB&T becomes the latest in a long string of lenders targeted by the DOJ for False Claims Act violations.
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Senator Warren calls DOJ's financial crisis response an "abysmal failure"

Wants to know why executives got off "scot-free"
Thursday, Sept. 15, 2016 marked the eight-year anniversary of Lehman Brothers declaring bankruptcy, sending shockwaves through the economy and sending the U.S. into a recession. Sen. Elizabeth Warren, D-Mass., used the anniversary of the “failure of the fourth-largest U.S. investment bank” to loudly question again why individuals were not held responsible for the conduct that led to the financial crisis, and this time she did it armed with some disconcerting new information.
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Regions Bank next on DOJ hit list, will pay $52.4 million for FHA-lending violations

Becomes latest lender to be accused of violating False Claims Act
Over the last few years, the Department of Justice used the False Claims Act as its weapon of choice against the mortgage industry, using the law to extract settlements from lenders for supposedly misrepresenting the quality of loans to the Federal Housing Administration. And now, Regions Bank is the latest on the DOJ’s hit list, after agreeing to settle False Claims Act charges for $52.4 million.
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DOJ again rebuked in effort to enforce massive BofA 'Hustle' mortgage fine

Billion-dollar settlement for Countrywide home loans denied
Needless to say, the federal government probably isn’t too happy with the United States Court of Appeals for the Second Circuit right now. That's because for the second time in three months, the Second Circuit rebuked an effort by the government to extract one of the largest fines to come out of the housing crisis.
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DOJ loses another top cop on mortgage fraud

U.S. Attorney for the District of Colorado John Walsh stepping down
The Department of Justice is about to lose another one of its top cops in its fight against mortgage fraud. The DOJ announced Friday that John Walsh, the U.S. Attorney for the District of Colorado and the co-chair of the DOJ’s Residential Mortgage-Backed Securities Working Group, is stepping down. While with the DOJ, Walsh played a key leadership role in securing a $7 billion settlement with Citigroup over residential mortgage-backed securities and collateralized debt obligations.
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Deutsche Bank negotiating with DOJ on mortgage bond settlement

Discloses ongoing talks with government on RMBS activities
Deutsche Bank revealed Wednesday that it is currently in negotiations with the Department of Justice to resolve an investigation into the bank’s mortgage bond activities. The bank’s earnings materials don't disclose what specific matter the DOJ is investigating, but the DOJ has been looking into Deutsche Bank's mortgage-backed securities activities since at least 2013.
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