Compliance

In violation of the Servicemembers Civil Relief Act, JPMorgan Chase has been overcharging about 4,000 military members on their home loans and improperly foreclosed the homes of 14 military families.“Chase has a very strong history of supporting military and veterans’ organizations, which makes the mistakes we made here particularly painful,” JPMorgan Chase said in a statement.

ML 11-02 –Quality Control Plans must be updated. QC plans must now provide for monitoring third party originators and underwriters. Review must include thresholds based on volume, past experience and other factors as set forth in 4060.1 Rev 2, Para. 7-6. QC Plan must include methodology of review, results and corrective actions taken.

The FBI investigation into a massive fraud at U.S. Mortgage Corp. and its CU National subsidiary orchestrated by Michael McGrath was initially uncovered by one of McGrath's business partners, who was negotiating his own plea in a separate mortgage fraud case.

The Federal Court of the Eastern District of North Carolina sentenced Lynda Steele to serve 41 months in prison, followed by three years of supervised release for committing real estate fraud in Cumberland County.

A former Austin, Texas, businessman has been indicted by a federal grand jury in connection with a Ponzi scheme that victimized more than 300 individuals and resulted in a total estimated loss to investors of $41 million.

The Georgia Department of Banking and Finance finalized a cease and desist order on Feb. 25 against the mortgage lending company Mortgage Direct Inc.

Juan Rangel, Downey, Calif., has been sentenced to 22 years in Federal prison for running two fraud schemes—a Ponzi scheme that took in at least $30 million from more than 500 victims, and a mortgage fraud scheme that preyed on working-class homeowners by stealing the equity from their homes and secretly taking title to their properties.

Big banks and Washington aren't on the same page—again.

Carrington Capital Management, a former subprime securitization specialist, salvaged an impressive amount of money from its low-ranked residential mortgage-backed securities, thanks to the unusual strategies of its servicing affiliate.

Investors and analysts have howled over specific mortgage servicers' handling of delinquent loans for years. The ratings industry generally has not.

The former treasurer of Taylor, Bean & Whitaker, Ocala, Fla., pleaded guilty to criminal charges involving her role in selling "fictitious" mortgages to Colonial Bank, contributing to that institution's failure.

Michael McGrath, the disgraced former president of U.S. Mortgage Corp. and its CU National Mortgage unit, was sentenced late Thursday to 14 years behind bars for a massive fraud in which he sold $140 million of CU mortgages his company was servicing to Fannie Mae and kept the proceeds.

Freddie Mac late Thursday said Donald J. Bisenius, executive vice president of its single-family credit guarantee business, received a 'Wells Notice,' which means the Securities and Exchange Commission is considering filing civil charges against him.

Quicken Loans Inc., one of the top mortgage lenders in the country, is currently defending its 25-year reputation regarding the company’s business strategies in a federal court case in Detroit.

Despite the national fraud risk index remaining flat from both the previous quarter and last year, increases in localized ZIP codes can affect the ranking of a state, according to the latest Mortgage Fraud Risk Report developed by Interthinx.

A California con man has been sentenced to 22 years in prison for two independent fraud schemes targeting the Latino community.

A convicted financial crime felon, whose conviction has been widely reported in the press and which is known to every person working on the NMLS, submits an MU form and applies for a state MLO license.

After two and a half years of failures nearly every Friday, and a pile of about 350 collapsed banks, one former management team of a shuttered thrift has decided to fight back.

The Federal Deposit Insurance Corp. has sent letters to former executives of the failed Washington Mutual Bank, Seattle, warning of possible legal action, according to a report by Dow Jones, quoting a source familiar with the situation.

Federal prosecutors have ended their criminal investigation of former Countrywide Financial chairman and CEO Angelo Mozilo, after deciding that his actions managing the nation's largest lender did not constitute criminal behavior, according to a report in The Los Angeles Times.