Items Tagged with 'Department of Justice'

ARTICLES

  • Former Equifax executive jailed for profiting off data breach

    Jun Ying admitted to dumping stock after learning of breach
    The former chief information officer of Equifax’s U.S. business admitted in court that he dumped nearly $1 million in company stock after learning of the massive data breach at the credit reporting agency, but before the breach was disclosed to the public.
    Read More
  • Urban Institute to FHA: Want more lenders? Clarify False Claims Act enforcement

    Researchers propose ideas for greater clarity regarding False Claims violations
    Many lenders have pulled away from FHA lending in recent years – something the agency has taken steps to address by clarifying underwriting rules. But according to a recent blog post from the Urban Institute, the FHA has not gone far enough to quell lender fears about getting back into the business of FHA lending. The problem? Not enough clarity regarding what qualifies as a violation of the False Claims Act and what the penalties might be.
    Read More
  • Quicken Loans agrees to pay $32.5 million to resolve FHA loan allegations with DOJ

    Mediation finally brings 4-year battle over False Claims Act violations to an end
    Quicken Loans is now finally able to move past its beef with the DOJ over the nonbank’s FHA lending practices, as a mediator for the two parties announced Friday that they have finally reached a resolution. Without any admission of guilt or determination of wrongdoing on either side, Quicken agreed to pay the government $32.5 million to settle allegations that it violated the False Claims Act for submitting hundreds of "improperly underwritten" loans for FHA mortgage insurance. Click the headline for more.
    Read More
  • DOJ demands to see CoreLogic's MLS data in antitrust probe

    Investigation follows lawsuits against NAR, MLS providers on buyer broker compensation rules
    The Department of Justice recently sent a letter to CoreLogic requesting access to its MLS data regarding buyer broker compensation, a clear sign that the federal authorities are actively investigating allegations of antitrust violations among multiple listing service providers.
    Read More
  • Top U.S. landlord charged with running Ponzi scheme in massive multifamily mortgage fraud probe

    DOJ and SEC file multiple charges against Robert Morgan for multimillion-dollar scam
    Robert Morgan, one of the largest landlords in the country, was hit with multiple charges this week by both the DOJ and the SEC for allegedly running a Ponzi-type scheme that involves shuffling around money from investors and falsifying loan documents. The charges are the culmination of a cross-agency investigation into a massive multifamily mortgage fraud scheme that raises serious questions about GSE regulations for multifamily financing.
    Read More
  • Federal Savings Bank CEO indicted for approving Manafort mortgages in attempt to land top job in Trump administration

    Stephen Calk accused scheming with Paul Manafort in quid-pro-quo deal
    Stephen Calk, the CEO and founder of the Federal Savings Bank of Chicago, was indicted Thursday for approving $16 million in mortgage loans for Paul Manafort in exchange for the former Trump campaign chairman’s help in landing a senior post with the administration. The move was unsuccessful, in more ways than one. Click the headline for the full story.
    Read More
  • New York Court approves representation for mortgage borrowers in Ditech bankruptcy

    Ditech loses motion to dismiss consumer committee
    The Bankruptcy Court of the Southern District New York denied Ditech’s motion Friday to dismiss the formation of a consumer committee to protect the interests of mortgage borrowers who have loans with Ditech or its subsidiaries – including those who have reverse mortgages with its subsidiary Reverse Mortgage Solutions – ensuring these borrowers will not suffer too great a loss as the mortgage giant restructures.
    Read More
  • Massachusetts mortgage company founder jailed for defrauding Ginnie Mae out of $2.5 million

    Mortgage Security founder Robert Pena gets 32 months in prison
    The founder and president of a defunct Massachusetts mortgage company will spend nearly three years in prison after admitting to defrauding Ginnie Mae out of approximately $2.5 million. Court documents show that starting in 2011, Mortgage Security founder Robert Pena began diverting money borrowers sent to MSI into private bank accounts, which he then used to pay for personal and business expenses.
    Read More
  • GE to pay $1.5 billion fine over WMC Mortgage subprime loans

    Reaches settlement with DOJ
    General Electric will pay a fine of $1.5 billion as part of a settlement with the Department of Justice over the pre-crisis lending activities of GE’s shuttered subprime lending unit, WMC Mortgage. The lender allegedly misrepresented the quality of the “majority” of its loans, which were sold to investors as part of residential mortgage-backed securities between 2005 and 2007.
    Read More
  • Quicken Loans, DOJ sent to mediation in ongoing battle over FHA loan allegations

    Trial is scheduled for Aug. 5, 2019
    Nearly four years after the legal battle between Quicken Loans and the Department of Justice began over claims Quicken violated FHA lending rules, the case may finally be decided in court later this year. But not before the parties give settling the matter at least one more try, after being ordered to do so by a federal judge.
    Read More