Items Tagged with 'foreclosure abuses'

ARTICLES

  • Massachusetts hits Nationstar (aka Mr. Cooper) with fine, sanctions over servicing abuses

    Accused of offering borrowers “unfair and deceptive” mortgage modifications
    Nationstar Mortgage, the nonbank now known as Mr. Cooper, allegedly put hundreds of borrowers in Massachusetts at a heightened risk of foreclosure by offering them “unfair and deceptive” mortgage modifications, the state’s attorney general said Tuesday. “Nationstar failed to stop foreclosures and this settlement gives homeowners in the hardest hit areas in Massachusetts a chance to stay in their homes,” Massachusetts AG Maura Healey said.
    Read More
  • DOJ suing Northwest Trustee Services for illegally foreclosing on veterans

    Claims foreclosure trustee violated Servicemembers Civil Relief Act
    “Our investigation revealed that Northwest Trustee Services repeatedly failed to comply with laws that are meant to ensure our service members do not have to fight a two front war – one on behalf of all of us, and the other against illegal foreclosures,” U.S. Attorney Annette Hayes said.
    Read More
  • Scandal: Former staffer at National Community Stabilization Trust among 7 indicted for foreclosure profiteering

    Accused of taking bribes to funnel foreclosures to certain nonprofits
    The former director of community development at the National Community Stabilization Trust, a national nonprofit that works to stabilize communities affected by the foreclosure crisis, is among seven people indicted last month for allegedly participating in a conspiracy to profiteer off of foreclosures. According to the U.S. Attorney’s Office for the District of Nevada, Sergio Barajas allegedly accepted bribes to funnel foreclosures to certain nonprofits.
    Read More
  • Feds indict "mastermind" of foreclosure scam that bilked $7 million from struggling borrowers

    Charged with 11 counts relating to bankruptcy fraud
    A California man stands accused of leading a foreclosure-avoidance scam that preyed on struggling borrowers to the tune of $7 million in ill-gotten gains. Per the details of his indictment, Michael "Mickey" Henschel's company didn't operate by legitimate means. Instead, Henschel is the alleged mastermind of a foreclosure scam.
    Read More
  • CFPB hits Fay Servicing with $1.15 million fine for illegal foreclosure practices

    Servicer fined for “keeping borrowers in the dark” about foreclosure options
    The Consumer Financial Protection Bureau announced Wednesday that it is fining Fay Servicing more than $1 million for “illegal foreclosure practices.” According to the CFPB, an investigation found that Fay Servicing was “keeping borrowers in the dark” about their foreclosure prevention options and pursuing foreclosure actions even as borrowers were actively seeking help to save their homes, a practice sometimes referred to as “dual tracking.”
    Read More
  • HSBC reaches $601M settlement over charges of 'abusive mortgage practices'

    Settlement reached with DOJ, HUD, CFPB, Federal Reserve, 49 states
    HSBC agreed to a $601 million settlement with a series of federal agencies and nearly every state over charges that the bank engaged in mortgage origination, servicing and foreclosure abuses. The massive settlement with HSBC was jointly announced Friday by the Department of Justice, the Department of Housing and Urban Development, the Consumer Financial Protection Bureau, 49 states and the District of Columbia.
    Read More
  • Ocwen fires back at “disingenuous” charges of negligence

    Accuses mortgage bond investors of being "pro-foreclosure"
    Ocwen Financial is doubling down in its fight against a group of mortgage bond investors that accused the nonbank of failing to properly collect payments on mortgage loans and breaching its bond covenants, charging the investors, which include BlackRock, MetLife, and PIMCO, of having a “pro-foreclosure, anti-modification” agenda.
    Read More
  • Report: Citigroup forgot to send 23,000 settlement checks

    Still owes $20 million as part of Independent Foreclosure Review
    According to a report from Bloomberg, Citigroup did not send settlement checks to approximately 23,000 borrowers who are eligible for payment under the Independent Foreclosure Review and is now preparing to mail out $20 million worth of checks to those borrowers.
    Read More
  • Military members to receive $123 million for unlawful foreclosures

    Relief is part of National Mortgage Settlement
    According to the U.S. Department of Justice, Bank of America, JPMorgan Chase, Citi, Wells Fargo and GMAC Mortgage will send payments to 952 service members and their co-borrowers for conducting non-judicial foreclosures conducted in violation of the Servicemembers Civil Relief Act.
    Read More
  • Ocwen: Mortgage bond investors mislead public, push foreclosures

    Fires back at “baseless, groundless” charges of mortgage payment negligence
    Ocwen fired back at claims of mortgage payment negligence, saying that the mortgage bond investors that accused it of failing in its duties as servicer have ulterior motives. “Your letter obscures the ultimate objective of your investor clients: to stop servicers from modifying loans and force them to foreclose on and evict as many struggling homeowners as quickly as possible,” Ocwen said in response.
    Read More