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.
Buckley--InfoBytes Blog
Last month the FTC and CFPB filed a joint amicus brief with the U.S. Court of Appeals for the Eleventh Circuit seeking the reversal of a district court’s decision that denied servicemembers the right to sue to invalidate a contract that allegedly violated the Military Lending Act.
Mortgage Fraud Blog – Stephanie Abbott
Victor Santos and Fausto Simoes, a real estate developer and attorney of New Jersey, admitted to a mortgage fraud scheme that led to over $3.5 million in losses.
Search our Compliance Calendar for current regulatory changes & updates.
Ballard Spahr Consumer Finance Monitor - Alan S. Kaplinsky & Michael Gordon
The Consumer Financial Protection Bureau (CFPB) has gone directly to the Supreme Court in regards to the ruling of the constitutionality of the agency's funding mechanism.
The Department of Justice (DOJ) announced that a man in Illinois was sentenced to 24 months in prison, 2 years of supervised release and ordered to pay $210,000 in restitution to the victim of the offense, the Small Business Administration (SBA) in regard to 44 fraudulent applications for $10,000 grants from the SBA pursuant to the COVID-19 Economic Injury Disaster Loan (EIDL) Program, of which 21 were approved.
The Office of the Comptroller of the Currency (OCC) has planned a symposium on bank mergers at its Washington, DC headquarters for February 10, 2023, with the intent of seeking public input on the need for an updated framework for analyzing potential mergers.
Ballard Spahr--Alan S. Kaplinsky, Michael Gordon & John L. Culhane, Jr.
In a unanimous decision, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit ruled that the funding mechanism for the CFPB violates the U.S. Constitution’s Appropriations Clause and the separation of powers principles on which it is based that will have a huge impact on CFPB issued rules, guidance, and existing enforcement orders.
"By partnering with ACES, we have witnessed an overall improvement in the quality of our reviews."
-Hilda Melendez, Quality Control Systems Director at Lennar Mortgage
FTC Business Blog- by Lesley Fair
An automotive group recently settled an FTC complaint alleging multiple areas of discrimination against Black and Latino customers throughout the purchase and financing of vehicles.
The Consumer Financial Protection Bureau, the Federal Reserve Board, and the Office of the Comptroller of the Currency announced that the 2023 threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans will increase from $28,500 to $31,000.
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.
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.
ACES allowed Cardinal Financial to:
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.
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.
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.
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.
