Compliance NewsHub
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.

Subscribe Today

October 03, 2022

CFPB sues online lender to servicemembers

The CFPB filed a complaint against MoneyLion Technologies, Inc. and the MoneyLion lending subsidiaries for allegedly violating the Military Lending Act and the Consumer Financial Protection Act by imposing excessive charges on loans to servicemembers and their dependents.

View Source

September 29, 2022

NY District Court Fails to Dismiss Multiple OD Fee Suit

Weiner Brodsky PC- Financial Services Update

A punitive class action suit has been allowed to continue in the U.S. District Court for the Northern District of New York (NDNY) related to an accountholder’s allegation that multiple overdraft fees were assessed and collected for the same item.

View Source

Are You Up to Date?

Search our Compliance Calendar for current
regulatory changes & updates from Fannie,
Freddie, FHA, VA, and USDA.

Search Now

August 30, 2022

Mortgage Loan Officer and Real Estate Agents Charged in Mortgage Fraud Scheme in Central Valley

Department of Justice

A federal grand jury has indicted German Antonio Lopez-Velasquez, Marko Antonio Lopez, and Lisa Marie Santos for bank fraud and conspiracy to commit bank fraud, utilizing false documents, fictional companies, and fictional individuals to obtain mortgage loans for borrowers who were not qualified to receive loans resulting in over $10 million in at least 30 loans.

View Source

August 18, 2022

Whistleblower Lifts Lid on "Toxic" Non-QM Lender

Mortgage Professional America--Richard Torne

A whistleblower, former employee for a non-QM firm has condemned the lending practices at his former company, asserting that rules were bent on a regular basis to approve suspect loans.

View Source

August 11, 2022

CFPB: Consumer Financial Protection Circular

The Consumer Financial Protection Bureau (CFPB) issue a circular confirming that financial companies may violate federal consumer financial protection law when they fail to safeguard consumer data.

View Source

August 09, 2022

New Orleans Man Sentenced for Mortgage Fraud

A 72 year old resident of New Orleans, Louisiana, was sentenced on August 4, 2022 for mortgage fraud and sentenced to time served, 5 years of supervised release, $751,900 in restitution, and a mandatory $100 special assessment fee.

View Source
On-demand Webinar

On-demand Webinar

QC NOW: Top Issues on Mortgage Compliance & What You Need to Know

Watch Now

July 29, 2022

CFPB Fines U.S. Bank $37.5 Million for Illegally Exploiting Personal Data to Open Sham Accounts for Unsuspecting Customers

The CFPB has taken action against U.S. Bank for illegally accessing its customers’ credit reports and opening checking and savings accounts, credit cards, and lines of credit without customers’ permission and pressured and incentivized its employees to sell multiple products and services to its customers, including imposing sales goals as part of their employees’ job requirements leading to U.S. Bank employees unlawfully accessing customers’ credit reports and sensitive personal data to apply for and open unauthorized accounts.

View Source

July 26, 2022

Three More Captured in Massive Multistate Fraud Scheme

Mortgage Professional America--Tony Cantu

Three more co-conspirators are in custody on charges related to a multi-layered mortgage fraud, credit repair and government loan fraud scheme, two of which were indicted in January on numerous charges for participating in a conspiracy to defraud mortgage lending businesses, banks, the Small Business Administration, and the Federal Trade Commission, according to the complaint.

View Source

July 26, 2022

Florida Man Charged with $1.6 Million CARES Act Loan Fraud Scheme

Compliance Alliance

Mohamed A. Awad, of Florida, was arrested on July 21, 2022, on charges related to his role in fraudulently obtaining over $1.6 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) payments.

View Source

June 29, 2022

Lender Agrees to Pay More Than $1 Million to Resolve Fraud Allegations

Mortgage Fraud Blog

American Financial Network, Inc has agreed to pay over $1 million to resolve allegations that it inappropriately and fraudulently originated government-backed mortgage loans insured by the Federal Housing Administration (FHA), a component of the U.S. Department of Housing and Urban Development (HUD).

View Source
Improve loan quality with ACES

Improve loan quality with ACES

With CFPB complaints on the rise, learn how ACES can keep you compliant in real time.

Book a Demo

June 27, 2022

Lender To Pay Over $1M To Resolve Mortgage Fraud Allegations

National Mortgage Professional--Keith Griffin

American Financial Network Inc will pay $1,037,145 to resolve allegations that it improperly and fraudulently originated FHA loans after a complaint was received from a whistleblower that is a former loan processor for the company.

View Source

June 24, 2022

Serial Fraudster Pleads Guilty to Multiple Investment Fraud Schemes

A California man was extradited from Mexico on March 8 and pleaded guilty on June 24, 2022, to conspiracy to commit mail fraud and wire fraud, mail fraud, and money laundering charges for two high-yield investment fraud schemes.

View Source

June 21, 2022

Real estate developer faces federal charges for COVID loan fraud

Mortgage Professional America--Mika Pangilinan

A federal grand jury in Portland has indicted Michael James DeFrees, a real estate developer, with fraudulently obtaining COVID-relief program funds and has been charged with wire fraud, bank fraud, and money laundering.

View Source

June 09, 2022

Special Alert: Eleventh Circuit upholds terms of arbitration agreement in challenge under Dodd-Frank

Buckley--Buckley Special Alert

The US Court of Appeals for the Eleventh Circuit issued a published decision that the Dodd-Frank Act does not prohibit the enforceability of delegation clauses contained in consumer arbitration agreements “in any way” as it is one of the first appellate decisions in the country concerning Dodd-Frank’s arbitration provision and supports broad enforcement of delegation clauses even where a statute could allegedly prohibit arbitration of the underlying claim.

View Source