Legal News

This topic consolidates everything you need to know to stay informed including prominent industry advocacy movements, current regulatory enforcement actions, and judicial rulings impacting mortgage banking.

December 14, 2018

Who watches the Watchmen? Former senior FDIC employee found guilty of stealing confidential bank documents

HousingWire--Ben Lane

The Federal Deposit Insurance Corp. is one of the nation’s top banking regulators, but one of the agency’s former senior employees faces 20 years in jail for stealing confidential documents from the world’s largest banks while trying to get a job at those very same banks.

According to the U.S. Attorney’s Office for the Eastern District of New York, Allison...

Read more

December 13, 2018

New York shuts down mortgage lender

Housingwire--Jacob Gaffney

Here's a first for LendingLife readers: The New York State Department of Financial Services last month issued a cease and desist order against Long Island, New York-based mortgage banker Franklin First Financial.

The list of no-no’s at the company is long: inaccurate balance sheets, substantial lead generation payments to employees in an effort to dodge LO comp restrictions, transferring of funds to private businesses...

Read more

December 13, 2018

Civil War's False Claims Act still the catch-all

Daily Mortgage News and Commentary--Rob Chrisman

The United States Department of Justice announced that Finance of America Mortgage, LLC has agreed to pay $14.5 million to settle a False Claims Act lawsuit involving mortgage fraud. The lawsuit relates to FHA loans originated by Gateway Funding Diversified Mortgage Services LP, which FAM acquired in 2015. The settlement resulted from a lawsuit filed under the qui...

Read more
ACES Intelligent Questionnaires

December 12, 2018

5 most scandalous fraud cases of 2018

Mortgage Fraud Blog--Rachel Dollar--Fraud Magazine

Takeaway: The ACFE, along with input from members, selected five stories as the most scandalous frauds of 2018. The stories were chosen based on the amount of money lost, the number of lives impacted and/or the relevance to the anti-fraud profession.

READ FULL ARTICLE ...
Read more

December 12, 2018

CFPB announces consent order with State Farm Bank to settle alleged violations related to furnishing consumer report information and obtaining and using consumer reports

Ballard Spahr LLP--Barbara S. Mishkin 

At the end of last week, the CFPB announced that it had entered into a consent order with State Farm Bank, FSB to settle allegations that the Bank violated the Fair Credit Reporting Act, Regulation V, and the Consumer Financial Protection Act in connection with furnishing information to consumer reporting agencies (CRAs ) and obtaining and using...

Read more

December 12, 2018

Judge allows mortgage escrow suit against JPMorgan to proceed

Mortgage Professional America--Francis Monfort

JPMorgan Chase Bank is set to face a lawsuit alleging that it did not pay interest on mortgage escrow accounts in violation of California law, according to a report by Reuters.

A federal judge in San Francisco ruled that the bank must face the suit filed by mortgage borrowers in the state. JPMorgan tried to avoid...

Read more

December 12, 2018

Former Owner of Mortgage Company Ordered to Pay Restitution in Fraud Scheme

Mortgage Fraud Blog--Rachel Dollar

David Fili, Jr., 48, Drexel Hill, Pennsylvania, was sentenced today to one day in jail and five years of supervised release, with the first 18 months of supervised release to be served on home confinement in multi-million dollar fraud scheme.

Along with George Barnard, 47, Newtown Square, Pennsylvania, Fili owned Capital Financial Mortgage Corporation (“CFMC”), based in Delaware County...

Read more
Webinar: Agency and Regulatory Reporting Essentials

December 12, 2018

Woman Sentenced For Fannie Mae Fraud

Mortgage Fraud Blog--Rachel Dollar

Hollie Darlene Dustin, 60, Punta Gorda, Florida, was sentenced today to six months in federal prison for committing wire fraud against the Federal National Mortgage Association (Fannie Mae).

According to court documents, Dustin, a licensed real estate broker, owned Home Choice Real Estate (HCRE), a company that contracted with Fannie Mae to manage and perform preservation services...

Read more

December 12, 2018

Former CEO Sentenced in Warehouse Loan Fraud

Mortgage Fraud Blog--Rachel Dollar

Matthew T. Voss, 43, Northport, New York, formerly the Chief Operating Officer of Long Island mortgage lender Vanguard Funding, LLC (Vanguard), was sentenced today to conspiring to commit wire and bank fraud in connection with the diversion of more than $8.9 million of warehouse loans that Vanguard had fraudulently obtained purportedly to fund home mortgages and mortgage refinancing.

...
Read more

December 11, 2018

JPMorgan can't avoid lawsuit over mortgage escrow interest - ruling

Reuters--Dena Aubin

JPMorgan Chase Bank must face a lawsuit by California mortgage borrowers accusing it of violating state law by not paying interest on mortgage escrow accounts, a federal judge in San Francisco ruled on Friday.

Chase had argued that the California law is preempted by the federal Home Owners Loan Act (HOLA), which governs thrift banks, including the original issuer...

Read more

December 10, 2018

Former mortgage company owner on the hook for $11.5m in fraud scheme

Mortgage Professional America--Francis Monfort

A former owner of a Pennsylvania-based mortgage company has been ordered to pay more than $11.5 million in restitution and forfeiture after pleading guilty to a multimillion-dollar fraud scheme, the US Attorney’s Office for the Eastern District of Pennsylvania has announced.

David Fili Jr. was ordered by US District Judge Joel Slomsky to forfeit approximately $...

Read more