home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Subsidiary of Wall Street Giant Faces FTC Inquiry

FTC inquiring about EMC servicing practices

January 4, 2006


The Federal Trade Commission has opened a probe into a Texas-based subprime servicer.

Wall Street giant Bear Stearns Cos. disclosed in a regulatory filing that the FTC wants to know if subsidiary EMC Mortgage Corp. broke any consumer protection or lending laws.

The FTC has confirmed the investigation but has not commented on it or released any statements. Other than disclosing the investigation in a Dec. 30 regulatory filing with the Securities and Exchange Commission, neither Bear Stearns nor EMC is commenting.

But New York-based Bear Stearns acknowledged in the filing that it received a Civil Investigative Demand, or CID, from the FTC. The demand is similar to a subpoena in that it is used to retrieve documents and other information from a company.

"EMC Mortgage Corp. ... has received a civil investigative demand from the (FTC) seeking documents and data relating to EMC Mortgage Corporation's business and servicing practices," Bear Stearns said in the filing.

The FTC wants the documents, the company said, "to determine whether there have been violations of certain consumer protection laws. EMC ... is cooperating with the FTC's inquiry."

Irving, Texas-based EMC services more than $50 billion in first and second mortgages. According to Fitch Ratings, EMC is rated 'RPS1' for prime, Alt-A, and subprime products and rated 'RSS1' as a special servicer.

Those are the highest ratings available from Fitch.

But EMC has been the focus of some consumer complaints, according to a Florida law firm.

The Tampa Bay firm of class action specialists James, Hoyer, Newcomer and Smilijanich said it is "reviewing allegations that numerous EMC customers didn't get credit for payments made, got billed for insurance they didn't need and were unjustifiably threatened with foreclosure."

The firm appears to be in the process of gathering members for potential legal action against the company.

"Some EMC customers are complaining about extra charges on their bills even though they paid on time," the firm said in a posting on its Web site. "The extra charges can lead to threats of foreclosure and negative entries on credit reports. Consumers have also complained that EMC failed to properly credit them for payments made, and that EMC charged them for insurance they didn't need."

On its Web site EMC said it is a "mortgage banking company specializing in the acquisition, securitization, servicing, and disposition of residential loans."

The company said it has grown from 10 employees in 1990 to more than 1,000.

Bear Stearns has operated since 1923 and, according to its corporate Web site, had total capital of $54.3 billion as of Nov. 30 and assets of $284.5 billion as of Aug. 31, making it one of the largest securities firms in the world.

Patrick Crowley is a MortgageDaily.com feature journalist and blogger, and a reporter, blogger and columnist for The Cincinnati Enquirer. e-mail Patrick at: [email protected]
Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders