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.




June 22, 2018

Plaintiffs in industry lawsuit challenging CFPB payday loan rule move for reconsideration

Ballard Spahr LLP--Jeremy T. Rosenblum and Alan S. Kaplinsky

We have previously blogged about the industry challenge to the CFPB’s rule on payday/vehicle title/high rate installment loans.  The Plaintiffs’ have now filed an Unopposed Motion for Reconsideration and have advised that the CFPB intends to file a separate supporting memorandum.  In their Motion for Reconsideration, the Plaintiffs’ argue...

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June 22, 2018

California foreclosure attorney sentenced for fraud

National Mortgage News--Garth Stapley, The Modesto Bee

One-time Modesto City Council candidate Robert Farrace, an attorney and real estate broker, was sentenced Monday to two years in federal prison for defrauding real estate lenders.

Farrace, 53, was president of the Stanislaus County Bar Association when a jury in November convicted him of three fraud counts after a five-day trial. His law license...

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June 22, 2018

MBA Voices Support for False Claims Act Reform Bill

MBA Newslink--Mike Sorohan

The Mortgage Bankers Association threw its support behind legislation that would clarify how FHA-insured loans are treated under the False Claims Act.

Reps. Josh Gottheimer, D-N.J., and Lee Zeldin, R-N.Y., on June 1 introduced H.R. 5883, the Fixing Housing Access Act of 2018 (https://www.congress.gov/bill/115th-congress/house-bill/5993?r=2). The bill would clarify how civil actions brought against FHA-insured loans under the...

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Customer Testimonials

June 21, 2018

MBA Urges Clarity to CFPB LO Comp Rule, QM Requirements

MBA Newslink--Mike Sorohan

The Mortgage Bankers Association, in a letter to the Consumer Financial Protection Bureau, urged the Bureau to make changes to its Loan Officer Compensation Rule for clarity and simplicity and to make adjustments so that more creditworthy borrowers can be eligible for Qualified Mortgage loans.

The MBA letter is the latest in a series of CFPB Requests for...

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June 20, 2018

Real Estate Attorney Sentenced for Fraudulent Short-Sale Scheme

Mortgage Fraud Blog--Rachel Dollar

Robert Farrace, 54, Modesto, California was sentenced today to two years in prison for a fraudulent short-sale scheme.

On November 14, 2017, a jury found Farrace guilty of three counts of wire fraud in connection with the scheme. According to court documents, Farrace, an attorney specializing in real estate law and the former president of the Stanislaus...

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ACES Automated Document Manager

June 20, 2018

Federal court: Wells Fargo must face Oakland’s mortgage discrimination lawsuit

Wells Fargo must face a lawsuit brought against the bank by the city of Oakland, California, which sued the bank in 2015 for allegedly steering minority borrowers into higher-cost loans, thereby causing rampant foreclosures and neighborhood blight.

The California city sued the bank nearly three years ago, claiming that Wells Fargo violated the Fair Housing Act by “targeting minorities” with high-cost loans...

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June 19, 2018

Jury in West Virginia Returns Verdict for Defendant Lender and Loan Servicer on All Counts

troutman sanders--John C. Lynch; Jason E. Manning; Megan Burns

Reverse Mortgage Solutions, Inc. (“RMS”), a leading servicer of home equity conversion mortgages, commonly known as reverse mortgages, recently received a complete defense verdict in the United States District Court for the Southern District of West Virginia, in a trial presided over by Judge Irene Berger. The case arose out of a reverse...

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June 18, 2018

Wells Fargo's $142m fake-accounts settlement is finally official

Mortgage Professional America--Ryan Smith

Wells Fargo has received final approval to settle a class-action lawsuit over its fake-accounts scandal.

The bank received preliminary approval last July to settle the suit for $142 million. The settlement is meant to compensate millions of customers who had accounts opened in their name without their knowledge or approval. A California judge has now granted final...

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