Items Tagged with 'Department of Justice'

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Quicken Loans begins long journey with DOJ over FHA violation charges

Will the case ever be dismissed?
Monday marked the first of what will likely be many hearings between Quicken Loans and the Department of Justice before a U.S. district judge over FHA lending violation charges. If the first hearing on Quicken Loans’ request to have the case dismissed is denied, the trial will begin in a little more than two years. Here's an update to one of the biggest wars brewing in mortgage finance.
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Franklin First Financial fined $1.25 million for FHA loan violations

Allegedly concealed default rates by paying borrowers’ mortgages for them
Franklin First Financial is set to join a list of mortgage lenders that settled with the Department of Justice for violating Federal Housing Administration lending standards, but unlike Wells Fargo, Walter Investment, and a host of others, Franklin First isn’t settling allegations. Rather, the government accused Franklin First of paying borrowers mortgages to keep them from defaulting, thereby concealing the lender’s default rates.
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RBS sets aside $3.8 billion more for RMBS settlement with DOJ

Getting closer to the finish line?
It appears that despite a new administration running the ship in Washington, D.C., the federal government still plans to seek restitution for the events that led to the financial crisis, or at least that’s what one foreign bank thinks. Royal Bank of Scotland said Thursday that it is setting aside $3.8 billion to be used to settle with the government.
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JPMorgan Chase officially reaches $53 million settlement for lending discrimination

Wholesale lending brokers accused of charging higher rates to minorities
Confirming reports that began to emerge last week, JPMorgan Chase officially reached a settlement with the Department of Justice over allegations that the bank’s brokers charged higher interest rates to minority borrowers than white borrowers in the run-up and during the financial crisis. Initial reports pegged the settlement amount at $55 million, but the actual settlement amount is slightly lower, checking in at $53 million.
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Societe Generale fined $50 million for pre-crisis RMBS fraud

Lied to investors about quality of underlying loans
In its last few days, the Obama administration announced multibillion dollar settlements with two foreign banks, Deutsche Bank and Credit Suisse, for each bank’s mortgage securitization practices leading up to the housing crisis. And on Friday, as most people focused on the inauguration of Donald Trump, the Obama administration announced one last settlement with a foreign bank for its pre-crisis activities – France’s Societe Generale.
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Credit Suisse reaches $5.28 billion mortgage bond settlement

Required to provide $2.8 billion in consumer relief
For the second time in as many days, the Department of Justice announced that it reached a multi-billion dollar settlement with a foreign-based bank over its mortgage securitization practices leading up to the housing crisis. On Tuesday, the DOJ announced that it reached a $7.2 billion settlement with Deutsche Bank. Now, it’s Credit Suisse’s turn.
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It's official: Deutsche Bank reaches $7.2 billion RMBS settlement

Largest RMBS settlement ever
Late last year, Deutsche Bank announced that it reached a $7.2 billion settlement with the Department of Justice in connection with the bank’s issuance and underwriting of residential mortgage-backed securities between 2005 and 2007. Although the bank made the announcement in late December, the settlement was not official, but it is now.
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Minnesota's KleinBank accused of discriminatory lending

DOJ accuses bank of redlining minority neighborhoods
Minnesota-based KleinBank excluded minority neighborhoods from its service area for all banking services and engaged in discriminatory lending, the Department of Justice claimed in a lawsuit filed late last week. According to the Department of Justice, none of KleinBank’s branch locations in the Minneapolis-St. Paul metro area is located in a minority neighborhood, a practice known as “redlining.” The bank denies the DOJ's allegations.
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Moody’s reaches $864 million settlement over RMBS credit ratings

Settlement dates back to financial crisis
Moody’s Corp. agreed to pay nearly $864 million to settle claims for its role providing credit ratings for Residential Mortgage-Backed Securities and Collateralized Debt Obligations that contributed to the financial crisis. "Moody’s failed to adhere to its own credit rating standards and fell short on its pledge of transparency in the run-up to the Great Recession," said Principal Deputy Associate Attorney General Bill Baer. 
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Two Ohio-based banks settle "redlining" allegations

Will invest $9 million in minority communities in Ohio and Indiana
A pair of banks based in Ohio must begin increasing mortgage lending in minority neighborhoods in certain areas of Ohio and Indiana as part of a settlement with the Department of Justice, which accused the banks of “redlining.” The DOJ defines redlining as a “discriminatory practice by banks or other financial institutions of denying or avoiding providing credit services to consumers because of the racial demographics of the neighborhood in which the consumer lives.”
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