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.
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.
Search our Compliance Calendar for current regulatory changes & updates.
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.
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.
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.
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).
ACES QC Now webinar, “Key Mortgage Compliance Updates & What’s Ahead" presented by ACES Quality Management's EVP of Compliance, Amanda Phillips and Ballard Spahr's Richard J. Andreano. Our experts specifically cover what’s going on at the CFPB and what to expect in 2026.
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.
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.
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.
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.
"ACES has made my life so much easier from a QC perspective. It's life-changing"
- Kelly Cooper Spencer, QC & Business Intelligence Data Manager at Thrive Mortgage
OIG
A US Attorney announces the return of an indictment charging Evelisse Hernandez, a licensed mortgage loan officer, for creating and executing a mortgage fraud scheme targeting the financial institution where she was employed, and if convicted, could face up to 30 years in federal prison on each bank fraud count and a mandatory consecutive 2 years’ imprisonment on the aggravated identity theft counts.
OIG
George Kritopoulos, 50, of Salem, MA has been convicted by a federal jury in connection with a 10-year mortgage fraud scheme involving at least two dozen fraudulent loan transactions totaling $6.5 million and resulting in more than $3.8 million in losses to lenders.
Mortgage Fraud - Stephanie Abbott
Philip Abramowitz a business owner from Maryland, pleaded guilty to conspiracy to commit wire fraud in relation to the sale of two Baltimore properties.
Mortgage Fraud Blog - Stephanie Abbott
Evelisse Hernandez, a licensed mortgage loan officer, has been charged with four counts of bank fraud and aggravated identity theft.
