Items Tagged with 'Department of Justice'

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  • 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.
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  • 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.
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  • Sierra Pacific Mortgage fined $3.67 million for FHA lending violations

    Accused of knowingly submitting loans for FHA insurance that didn’t qualify
    Sierra Pacific Mortgage will pay a fine of $3.67 million to settle allegations that the company knowingly violated FHA lending standards more than a decade ago. According to the U.S. Attorney’s Office, Sierra Pacific was accused of violating the False Claims Act by falsely certifying that it complied with FHA mortgage insurance requirements in connection with certain loans made between 2007 and 2009.
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  • GE claims it reached $1.5 billion settlement with DOJ over WMC subprime loans

    No official word from DOJ yet
    It appears that General Electric may finally be close to putting its shuttered subprime lending unit completely in its past. It’ll just cost the company $1.5 billion to do so. GE revealed Thursday that it reached a tentative agreement with the Department of Justice that would see GE pay a fine of $1.5 billion for the lending activities of WMC Mortgage.
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  • SEC joins DOJ in giving up case against mortgage bond trader Jesse Litvak

    SEC abandons pursuit of former Jefferies managing director
    Over the summer, the Department of Justice gave up its five-year pursuit of former Jefferies managing director and mortgage-backed securities trader Jesse Litvak, ending the DOJ’s effort to jail the trader for allegedly lying to customers about mortgage bond trades. And now, the Securities and Exchange Commission has done the same thing.
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  • MAA must pay $8.7 million to fix Post apartments that are not accessible to persons with disabilities

    DOJ sued Post Properties in 2010 over 50 apartment complexes
    The Department of Justice announced last week that it reached an $11.3 million settlement with MAA, which owns more than 101,000 apartment units in 17 states, over properties MAA acquired when it merged with Post Properties in 2016. According to the DOJ, Post allegedly built 50 apartment complexes across the country that were not properly accessible to persons with disabilities.
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  • UBS expecting DOJ lawsuit over pre-crisis mortgage bonds

    Lawsuit could come as soon as this week
    UBS, which has already paid out hundreds of millions of dollars over its pre-crisis mortgage securitization activities, is about to be facing another massive lawsuit for the same conduct. UBS revealed late Wednesday that it is expecting to be sued by the Department of Justice over its issuance, underwriting and sale of residential mortgage-backed securities from 2006 to 2007.
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  • Florida law firm accused of preying on Hispanic homeowners in foreclosure rescue scam

    DOJ accuses Advocate Law Groups of Florida of running predatory loan scheme
    The Department of Justice this week filed a lawsuit against Advocate Law Groups of Florida, Jon Lindeman, and Ephigenia Lindeman, accusing the firm and the Lindeman’s of violating the Fair Housing Act by “intentionally discriminating against Hispanic homeowners by targeting them with a predatory mortgage loan modification and foreclosure rescue services scheme.”
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  • Lennar subsidiary Eagle Home Mortgage fined $13.2 million for FHA lending violations

    The False Claims Act ain’t dead yet
    It appears the False Claims Act ain’t dead yet. The Department of Justice announced Friday that it reached a $13.2 million settlement with Universal American Mortgage Company, the mortgage subsidiary of Lennar that does business as Eagle Home Mortgage, to resolve allegations that the lender violated the False Claims Act by falsely certifying that it complied with FHA lending standards.
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