True Stories: Hybrid, eNote and RON Implementation

Join expert panelists that will discuss the status of federal legislation, trends in digital adoption and how best to prepare your organization for the next generation of lending processes.

Spruce’s Patrick Burns on innovation in title technology

In the season finale of Housing News season 5, Spruce CEO discusses heightened investor interest in title tech, innovation and fintech adoption.

Top CFPB official “hates” QM rules, jeopardizing safe harbor

A top CFPB official in charge of the rule-making process has heavily criticized the agency's own qualifying mortgage rule, jeopardizing safe harbor.

Fraud risk factors at closing increased almost 90% last quarter

A variety of risk factors could be contributing to the drastic increase in wire and title fraud risk factors in mortgage and real estate closings – for example, compliance issues and an increase in transaction data errors.

Mortgage

JPMorgan settles military veterans mortgage lawsuit for $45M

JPMorgan Chase (JPM) agreed to pay the federal government $45 million to settle a lawsuit accusing big banks of charging military veterans excessive fees on government-backed loans, attorneys for the plaintiffs said Tuesday.  

Two whistleblowers filed the original case against Wells Fargo Bank (WFC), Bank of America (BAC), CitiMortgage (C), Suntrust Mortgage (STI), Washington Mutual Bank, PNC Bank, Countrywide Home Loans, Mortgage Investors Corp. and First Tennessee Bank.

JPMorgan Chase declined to comment, but said the settlement stipulates the agreement is not an admission of wrongdoing on the bank’s part. The law firm of Butler, Wooten & Fryhofer represented the plaintiffs in the case and confirmed the settlement Tuesday.

To date, JPMorgan Chase is the only lender to settle. 

The original lawsuit, which dates back to 2006, alleges the banks violated the federal False Claims Act and provisions of the Interest Rate Reduction Refinancing Loan Program by over-charging veterans on fees not allowed under the IRRRLP program. The IRRRLP refinancing program is available to homeowners with Veteran’s Administration loans and allows them to refinance at lower rates.  

The complaint claims the banks overcharged veterans on fees and then hid those details when applying to get insurance on those loans from the federal government. The plaintiffs claim taxpayer backing on the loans would not have been granted if the federal loan program had known about the excessive fees charged.

kpanchuk@housingwire.com

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