Ocwen Financial Corp. on Friday won the dismissal of two securities class actions that arose from alleged compliance issues related to servicer agreeing to a $150 million settlement in 2014, and now shares of the company are trading higher. Read on.
Bank of America and HSBC Holdings Plc agreed to settle lawsuits concerning property insurance that borrowers were forced to accept after homeowners alleged that the banks got a financial windfall by cutting deals with insurance companies and over-charging borrowers for the coverage.
If the way settlements are headed continues, an additional $16 billion in penalties will be paid by banks, including Bank of America and Goldman Sachs over mortgage-backed securities sold to Fannie Mae and Freddie Mac.
Huge legal costs are becoming a theme in Wall Street fourth-quarter earnings reports, specifically litigation and investigations related to residential mortgage-backed securities and the credit crisis.
According to Verizon’s 2019 Data Breach Investigations Report, 10% of the 2,013 breaches that occurred in 2018 were within the financial industry. Personal data was compromised in 43% of those breaches, which were largely attributed to privilege misuse, errors or unsecure web applications.
Rising interest rates often cause homebuyers to think twice about moving forward with a mortgage. In April, mortgage applications fell more than 7% after 30-year fixed mortgage rates reached a high for the month.