Items Tagged with 'Department of Justice'

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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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Department of Justice names new head of financial crisis investigations

Bill Baer taking over for departing Stuart Delery
As expected, the Department of Justice named Bill Baer as the replacement for the departing Stuart Delery. As Acting Associate Attorney General, Baer will be 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.
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Leader of Justice Department's financial crisis investigations stepping down

Acting Associate Attorney General Stuart Delery leaving for private sector
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, is stepping down. In his time as the lead of the DOJ’s Civil Division, Delery oversaw massive settlements with several financial institutions for their business practices during the financial crisis, including a $601 million settlement with HSBC.
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Solar panel telemarketer faces charges over unlawful robocalls

Violated the Do Not Call Registry
The appeal of solar energy is starting to gain a lot of traction across the nation, especially in warmer states. However, with the increase in demand comes an increase in caution. The Department of Justice filed a new suit against a solar panel telemarketer over unlawful robocalls.
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GE gets subpoena over subprime mortgage operation

DOJ investigating whether GE broke any laws from 2005 to 2007
GE disclosed in its annual report on Friday that its lending unit, GE Capital, and defunct subprime lending unit WMC, received subpoenas in January. GE said it will cooperate with the Justice Department's investigation, which is at an early stage.
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