Search Results: DOJ

National Bank Finalizes $1.2 Billion Settlement Relating to FHA Lending Program

On April 8, 2016​, the Department of Justice (DOJ) officially announced a $1.2 billion settlement with a national bank and one of its executives relating to the bank’s participation in the Federal Housing Administration (FHA) Direct Endorsement​ Lender Program.  As part of the settlement agreement, the bank acknowledged that between the period of May…

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National Bank Will Pay $600 Million to Settle Federal and State Claims Addressing Loan Origination, Servicing, and Foreclosure Practices

​On February 5, 2016, the Department of Justice, the Department of Housing and Urban Development, the Consumer Financial Protection Bureau, and 49 state attorneys general and the District of Columbia’s attorney general announced a $470 million settlement with a national bank to address alleged mortgage origination, servicing, and foreclosure abuses. …

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CFPB Settles Discriminatory Lending Claims Against Auto Manufacturer for $21.9 Million

On February 2, 2016, the Consumer Financial Protection Bureau announced a settlement with an auto manufacturer resolving claims of alleged discrimination under the Equal Credit Opportunity Act.  Under the terms of the settlement, the auto manufacturer will pay “$21.9 million in restitution to thousands of African-American and Asian and Pacific Islander…

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National Bank Announces $1.2 Billion Settlement Relating to FHA Lending Program

​On February 3, 2016, a national bank announced in its SEC filing that it has reached a $1.2 billion agreement in principle with the United States Department of Justice (“DOJ”), the United States Attorney’s Office for the Southern District of New York, the United States Attorney’s Office for the Northern District of California, and…

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DOJ Settles Disability Income Discrimination Claims Against National Bank

​On January 19, the U.S. Department of Justice (DOJ) announced that it had reached a settlement with a national bank over allegations that the bank discriminated against mortgage loan applicants who had disabilities or received public assistance.  The DOJ alleged in its simultaneously filed complaint that the bank violated the Fair Housing…

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DOJ and State AGs Obtain $100 Million in Student Debt Relief for Students of For-Profit Colleges

On November 16, 2015, the DOJ announced a settlement with a national for-profit education company over alleged violations of the False Claims Act and the Higher Education Act. The settlement resolves four separate qui tam suits filed against the company in federal court. In conjunction with the DOJ announcement, the Attorneys General…

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DOJ Settles with National Bank Over Bankruptcy Mortgage Payment Change Notices

On November 5, 2015, the DOJ’s U.S. Trustee Program announced that it entered into a nationwide settlement agreement with a national bank over allegations the bank failed to file mortgage payment change notices in bankruptcy proceedings. When a debtor has entered Chapter 13 bankruptcy proceedings, federal bankruptcy law requires mortgage…

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DOJ & HUD Announce Sentences in $64 Million Criminal Mortgage Fraud Conspiracy

On September 24, 2015, the DOJ and HUD announced that the owner and employees of a regional mortgage company had been sentenced for their participation in a $64 million mortgage fraud scheme. According to the DOJ, the Defendants operated a regional mortgage company, which specialized in securing Federal Housing Administration…

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Reverse Mortgage Servicer to Pay Over $29 Million to Resolve False Claims Act Allegations

On September 4, 2015, the Department of Justice (“DOJ”) announced that a company engaged in reverse mortgage servicing agreed to pay $29.63 million​ to settle allegations that it violated the False Claims Act (“FCA”) in connection with its participation in the Department of Housing and Urban Development’s (“HUD”) Home Equity Conversion Mortgage…

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CFPB Asks DOJ to Investigate Automotive Lending Company for ECOA Violations

​On August 10, 2015, the American subsidiary of an automotive lending company disclosed in an SEC filing that the Consumer Financial Protection Bureau (CFPB) had notified the company on July 31, 2015 that it had asked the DOJ to investigate the company’s potential violations of the Equal Credit Opportunity Act.  According ​to the filing, the CFPB’s referral…

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American Bankers Association Asks Financial Regulators to Adopt Supreme Court's Disparate Impact Framework

On August 5, 2010, the American Bankers Association (ABA) announced that it had sent a letter to federal regulators and enforcement agencies, requesting that they confirm in their “interagency guidance, updated exam procedures, and where appropriate amended regulations” that the burden-shifting framework used by the Supreme Court in Texas Department of Housing and Community Affairs v….

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Bank Reveals DOJ False Claims Act Investigation of FHA Loans

On August 5, 2015, a bank revealed in an U.S. Securities and Exchange Commission filing that the U.S. Department of Housing and Urban Development (“HUD”) Office of Inspector General and the U.S. Department of Justice (collectively, the “Government”) are currently investigating whether the bank complied with underwriting requirements on loans…

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Auto Finance Company Settles Action Brought by CFPB and DOJ

On July 15, the Consumer Financial Protection Bureau (“CFPB”) and the Department of Justice (“DOJ”) announced that claims concerning an indirect auto finance company’s alleged discriminatory lending practices were settled as part of a consent order requiring $24 million in restitution payments to borrowers and changes to the lender’s dealer compensation system.  The consent order alleges…

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Florida Mortgage Company Employees Plead Guilty to FHA Mortgage Fraud

​On July 14, 2015, the U.S. Attorney for the Southern District of Florida announced​ that the owner of a Miami-area mortgage company, his business partner, and a senior mortgage underwriter each pleaded guilty to conspiracy to commit wire fraud affecting a financial institution.  As part of the owner’s plea, he will forfeit $8…

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