Items Tagged with 'Department of Justice'

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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. 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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BancorpSouth fined $10.6 million for discriminatory lending, redlining

CFPB, DOJ accuse bank of having "explicitly discriminatory denial policy"
BancorpSouth will pay $10.6 million to settle charges against the bank by the Department of Justice and the Consumer Financial Protection Bureau, which accused the Mississippi-based bank of redlining and discriminatory lending practices. The agencies accused BancorpSouth of a number of discriminatory practices, including illegally redlining in Memphis, and implementing an "explicitly discriminatory loan denial policy."
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Countrywide's Mozilo reportedly off the hook for all those subprime mortgages

Bloomberg reports that Justice is abandoning malfeasance case
One of most notorious people at the center of the housing crisis is reportedly off the hook for any supposed malfeasance, as Bloomberg is reporting that the Department of Justice is abandoning its attempt to sue Angelo Mozilo, the founder of Countrywide, for his company’s lending practices in the run-up to the housing crisis.
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'Face of the housing crisis' exonerated by Appeals Court Countrywide Hustle ruling

Former Countrywide exec Rebecca Mairone cleared
Lost in the shuffle of the United States Court of Appeals for the Second Circuit's decision to toss the $1.27 billion penalty against Bank of America was the fact that the court also overturned the fraud charges and voided the $1 million penalty against Rebecca Mairone. Mairone is the same person who the New York Times once referred to as the "face of the housing crisis."
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Appeals Court overturns Bank of America's $1.27 billion fine in 'Hustle' case

BofA handed victory in row over Countrywide mortgages
The United States Court of Appeals for the Second Circuit handed Bank of America a massive victory, and dealt the Department of Justice a major blow, on Monday when it overturned a $1.27 billion penalty against the megabank in a fraud case over defective mortgages sold by Countrywide. The case stems from the government suing Bank of America over Countrywide's "Hustle" loan origination process.
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Guild Mortgage becomes DOJ's latest target over alleged FHA-lending violations

Lender says it plans to fight back against allegations of False Claims Act violations
Over the last several years, lenders like Wells Fargo, Franklin American Mortgage, Walter Investment, First Tennessee Bank, Freedom Mortgage and M&T Bank chose to settle with the Department of Justice after being accused of originating and underwriting mortgage loans that did not meet Federal Housing Administration standards. Now, Guild Mortgage is next on the DOJ’s hit list, but the lender says it plans to fight back.
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Department of Justice loses another one of its top cops on mortgage fraud

Co-chair of the Mortgage Fraud Working Group Benjamin Wagner stepping down
Less than a month after Stuart Delery, the third in command at the Department of Justice and leader of the DOJ’s investigations into the conduct of banks during the financial crisis, announced he was stepping down, the DOJ is about to lose another of its big guns in the fight against mortgage fraud.
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Freedom Mortgage to pay $113 million for FHA violations

Unusually high levels of defective mortgages
Freedom Mortgage Corporation now has more in common with Wells Fargo, Franklin American Mortgage, Walter Investment, and First Tennessee Bank than simply being mortgage lenders, as Freedom Mortgage is set to become the latest mortgage company to settle with the Department of Justice over alleged violations of the False Claims Act.
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