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.

April 25, 2019

Massachusetts mortgage company founder jailed for defrauding Ginnie Mae out of $2.5 million

Housingwire--Ben Lane

The founder and president of a defunct Massachusetts mortgage company will spend nearly three years in prison after admitting to defrauding Ginnie Mae out of approximately $2.5 million.

Robert Pena pleaded guilty in 2017 to one count of conspiracy and six counts of wire fraud. Pena was the founder and president of Mortgage Security, a shuttered mortgage company based in Falmouth, Massachusetts...

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April 24, 2019

HUD sued over new down payment assistance rules for FHA mortgages

HousingWire--Ben Lane

Last week, the Department of Housing and Urban Development announced it was issuing new rules for down payment assistance on mortgages backed by the Federal Housing Administration.

According to HUD and the FHA, the new rules were meant to provide clarity around what documentation would be required for borrowers who are using funds from another person or entity to cover...

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April 24, 2019

Victims of reverse mortgage scam want protection from Ditech bankruptcy

HousingWire--Jessica Guerin

Two years ago, a Chicago loan officer was charged with defrauding elderly homeowners in a reverse mortgage scam by taking out reverse mortgages without their knowledge or misrepresenting the terms of the loan in order to convince them to get one.

The case involved 125 African American families and about six different HECM lenders. The result cost these homeowners...

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ACES Intelligent Questionnaires

April 24, 2019

Q1 Trends in Regulatory Actions

DSNews--Mike Albanese

The latest Banking Compliance Index (BCI) quarterly report was released on Tuesday by Continuity, and it showed that Q1 2019 was the third consecutive quarter where more than 50% of enforcement actions were taken against bank officers and directors, rather than financial institutions.

The BCI measures the incremental cost burden on financial institutions to keep up with...

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April 24, 2019

Mortgage Fraud Scheme Gets Attorney Sentenced

Mortgage Fraud Blog--Rachel Dollar

Laurence Savedoff, Esq., 44, New City, New York, who was convicted of misprision of a felony, was sentenced today for his role in a mortgage fraud scheme.

Between 2008 and 2009, the defendant represented The Funding Source (“TFS”), a mortgage bank, as the settlement attorney. The defendant’s law office was used to execute the closings for the...

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April 23, 2019

Fintech lender hit with $3m fine for misleading investors

Mortgage Professional America--Ryan Smith

Peer-to-peer lending company Prosper, which in November announced plans to launch a digital home equity line of creditproduct, has been slapped with a $3 million fine for allegedly misleading investors.

According to the Securities and Exchange Commission, Prosper reported inflated returns to investors. The SEC said that between July 2015 and May 2017, the company excluded...

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April 23, 2019

CFPB Announces Policy Change Regarding Bureau Civil Investigative Demands

FOR IMMEDIATE RELEASE: April 23, 2019

MEDIA CONTACT: Office of Communications Tel: (202) 435-7170

CFPB Announces Policy Change Regarding Bureau Civil Investigative Demands

WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (Bureau) announced changes to policies regarding Civil Investigative Demands (CIDs) to ensure they provide more information about the potentially wrongful conduct under investigation.

Consistent with...

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Customer Testimonials

April 22, 2019

LO Comp Flexibility to Increase Consumer Choice and Savings

Rob Chrisman

The [Community Home Lenders Association] CHLA has weighed in with a letter to the CFPB, offering "a common sense approach to the issue of LO Compensation flexibility. Commonly an LO makes a loan offer, in conjunction with working with a potential borrower, sometimes for an extended period of time. Then, at the last minute the borrower solicits...

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April 22, 2019

MBA Advocacy Update

MBA Newslink--Steve O'Connor; Bill Killmer

Congress continued its two-week recess as members remained in their districts for the Passover/Easter/Spring District Work Period. Consumer Financial Protection Bureau Director Kathy Kraninger gave a speech detailing her approach to the Bureau, while FHA issued guidance clarifying eligibility for downpayment assistance sources.   

CFPB Director Kathy Kraninger Lays Out Vision for BureauConsumer Financial Protection...

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April 22, 2019

Florida Court Re-Examines Foreclosure Attorney’s Fees Case

DSNews--Seth Welborn

In the case of Nationstar Mortgage LLC v. Glass, the Florida Supreme Court judge recently issued a ruling withdrawing its January 4, 2019 opinion. The Fourth District Court of Appeal originally held that the borrower who prevails on standing by arguing the lender is not a proper party to foreclose the note and mortgage, cannot then turn around and use that...

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April 19, 2019

Florida Court Re-Examines Foreclosure Attorney’s Fees Case

DSNews--Seth Welborn

In the case of Nationstar Mortgage LLC v. Glass, the Florida Supreme Court judge recently issued a ruling withdrawing its January 4, 2019 opinion. The Fourth District Court of Appeal originally held that the borrower who prevails on standing by arguing the lender is not a proper party to foreclose the note and mortgage, cannot then turn around and use that...

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