Law and legal issues

If an unusual consumer protection gets rolled back in the state, servicers could get more of a second chance in court and borrowers will lose some protection.

Legal experts are gaming out the various options for the CFPB after a three-judge panel of the U.S. Court of Appeals for the 5th Circuit ruled on Oct. 19 that the bureau's funding is unconstitutional.

The lender earlier this year also filed a poaching suit against CrossCountry Mortgage.

An appeals court ruling last week found that the Consumer Financial Protection Bureau's funding structure violates the Constitution, but another court filing shows how the agency might fight back.

The parent company Ocwen is contesting the award from the arbitrator, who ruled the company made a false offer to the borrower.

The companies formed a partnership in 2019, in which the lender would handle mortgage processing, underwriting and closing for the digital-only bank.

The U.S. Court of Appeals for the 5th Circuit overturned a lower court's ruling, declaring the agency's funding structure and its 2017 payday lending rule invalid.

Some of the hacks in question are confirmed to have impacted millions of customers, while the full scope of other incidents have yet to be disclosed.

A Wisconsin taxpayers group asked the U.S. Supreme Court to block President Biden's student-loan relief plan from taking effect, accusing him of usurping the power of Congress and costing taxpayers potentially more than $1 trillion.

The lender has been largely unresponsive in at least three other federal lawsuits from firms seeking recourse in mortgage contracts.

The agreement includes roughly $300 million in restitution, and a $100 million civil money penalty that will be one of the largest in New Jersey's history if it receives court approval.

The company accused of raiding competitors' offices across the country recently launched two scathing countersuits.

The class action complaint includes 23 plaintiffs accusing the firms of failing to protect their information, including Social Security numbers, in a cyberattack which lasted 41 days.

Plaintiffs in two similar class action complaints accuse the companies of failing to protect their Social Security numbers and loan information.

The class-action lawsuit was brought on behalf of mortgage borrowers who were allegedly placed into forbearance during the early days of the pandemic without their consent.

A federal judge found last year that a credit reporting dispute did not have to be investigated because the consumer's complaint was frivolous. The Consumer Financial Protection Bureau and the Federal Trade Commission argue that the decision undermines a key purpose of the Fair Credit Reporting Act.

Bank of America is facing off in court with the bond insurer Ambac Financial Group in a $2.7 billion case that's one of its last legal hangovers from the subprime crisis.

The companies are the latest mortgage businesses to face class action complaints from consumers impacted by the cyberattacks.

The lender gave a $1.3 million mortgage refinance loan to a borrower based off overstated, fraudulent debt, prosecutors said.

A contested home valuation was based on the professional's "racist beliefs" and eschewed industry standards with comparisons of properties away from the majority-white neighborhood, according to the lawsuit.