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…
On September 3, 2015, the Federal Trade Commission (“FTC”) agreed to settle allegations with a mortgage relief services company that allegedly charged homeowners an illegal fee for assistance the company never provided. The FTC brought its claims under section 5(a) of the Federal Trade Commission Act (“FTCA”), 15 U.S.C. § 45(a), the Mortgage Assistance Relief Services Rule (“MARS…
On August 21, 2015, the Sixth Circuit issued its widely anticipated decision in Hill v. Homeward Residential, Inc., No. 14-4168 (6th Cir. August 21, 2015), which affirmed a jury verdict that found Homeward Residential, Inc. had plaintiff Hill’s prior express consent to call him using an auto-dialer. The case is significant because plaintiff Hill…
On September 3, a reverse mortgage servicing company settled alleged violations of Federal Housing Administration (FHA) regulations with the U.S. Department of Housing and Urban Development (HUD). In July 2013, an individual brought a qui tam action in the U.S. District Court for the Middle District of Florida pursuant to the False Claims…
Joe Yenouskas, a partner in Goodwin Procter’s Consumer Financial Services Litigation Group, will speak on October 7, 2015 at DRI’s 2015 Annual Meeting in Washington, DC about MERS Litigation. His presentation will focus on the nationwide claims asserted by county recorders against Mortgage Electronic Registration Systems (MERS) alleging that the…
On September 1, 2015, North Carolina Special Court Superior Judge Gregory P. McGuire issued a preliminary injunction barring a North Dakota-based online fast cash lender from advertising, lending, and collection activity in the state of North Carolina. The preliminary injunction bars the lender and its affiliated companies from advertising, offering or entering into contracts to…
The Federal Reserve Bank of New York recently did a study which found that, while mortgage loan originations increased through the second quarter of 2015, the increase is only for borrowers with credit scores above 660). See Liberty Street Economics, “Just Released: Releveraging the Consumer Credit Panel with Two New Charts,” August…
On August 28, 2015, the Federal Deposit Insurance Corporation (FDIC) announced the release of its July 2015 administrative enforcement actions against banks and individuals. Among these was an Order to Pay Civil Money Penalties assessed against a Louisiana bank for $123,000 for alleged violations of the Flood Disaster Protection Act of 1973 (FDPA), the National Flood Insurance…
On August 28, 2015, the Federal Deposit Insurance Corporation (FDIC) announced the release of its July 2015 administrative enforcement actions against banks and individuals. Among those actions was an Order to Pay assessed against an Ohio bank for $9,600 for alleged violations of the Flood Disaster Protection Act of 1973 (FDPA) and Part 339 of the FDIC Rules and Regulations. Specifically, the FDIC…
On August 28, 2015, the Maryland Attorney General announced that it reached a settlement with an Ohio-based mortgage field-services company to resolve allegations that the company wrongfully locked Maryland residents out of their homes and took or damaged personal property. The company contracts with lenders and mortgage servicers to provide services related to inspecting,…
On August 31, 2015, the owner of a now-defunct New Jersey title company pleaded guilty to charges of second-degree theft and second-degree misconduct by a corporate official for failing to make required disposition of settlement funds. The investigation was spearheaded by the New Jersey Division of Criminal Justice Financial & Computer Crimes…
Click here to check out the latest article from LenderLaw Watch – No Summer Vacation for Student Lending Companies as Enforcement Activity Continues. The article analyzes recent federal and state enforcement activity taken against student lending companies, and comments on what student lenders can expect from enforcers in the near future.
Student lending continues to remain in the crosshairs of federal and state consumer finance regulators during the summer months, with over five enforcement actions and investigations in recent weeks. As covered in both LenderLaw Watch (LLW) and Consumer Finance Enforcement Watch (CFEW), this is a small part of a larger…
On August 24, 2015, a large student loan company disclosed in a filing with the Securities and Exchange Commission that it “received a letter from the CFPB notifying [it] that, in accordance with the CFPB’s discretionary Notice of Opportunity to Respond and Advise (“NORA”) process, the CFPB’s Office of Enforcement is considering recommending…
On August 21, 2015, the Office of the Comptroller of the Currency announced that it had concluded its investigation into several related national banks regarding alleged violations of the Servicemembers Civil Relief Act. The Act prohibits certain debt collection activities against members of the armed forces. Before proceeding with judicial…
On August 20, 2015, the CFPB and the New York Department of Financial Services (NYDFS) announced they had filed a lawsuit in federal court in California against two regional financial companies. According the complaint, the companies deceived consumers about the fees and interest rates associated with pension loans. The companies…
On August 19, 2015, the New York Attorney General’s Office announced an interim agreement with a subsidiary of a national banking organization over allegations that the bank charged improper fees on customer’s inactive accounts. The bank managed consumer investment accounts and charged a variety of fees for account management services….
On August 18, 2015, the Oregon Attorney General’s Office and the Oregon Department of Consumer and Business Services announced that they filed a lawsuit against a regional automobile loan company. The company advertised car title loans online. When consumers completed the online applications, the company allegedly deceived them into signing…
On August 18, 2015, the Washington State Attorney General’s Office announced the entry of summary judgment against a regional student loan processing company in a case involving alleged illegal fees charged to borrowers. The company offered student loan modification services, including income-based repayment plans, debt consolidation, and debt forgiveness. According…
On August 17, 2015, the North Dakota Attorney General’s Office announced it entered a cease and desist order against a regional consumer credit services company. According to the Attorney General, the company solicited business using illegal robocalls that promised interest rate reductions and other loan modification services. The company allegedly called…