Credit Agencies Sued Over Bankrupt Account Reporting
RICHMOND, Va. -- A group of consumers in Virginia who have previously filed bankruptcy are suing the credit repositories because their former debts don't show as discharged on their credit reports and instead show as outstanding and delinquent. In other credit-related litigation, one borrower claims that after two of the credit agencies settled a lawsuit she filed against them, she began receiving calls from creditors trying to collect someone else's debt. So she is back in court.
For three years, Sharon Ross has battled with credit-reporting agencies.
Last year, she sued two of the big three agencies for mixing her credit history with that of a stranger in Chicago -- a place where she neither had worked nor lived.
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Lender's NFL Tickets Auctioned by IRS
A Texas-based mortgage lender's problems with the Internal Revenue Service landed six prime NFL season tickets on the auction block. An affiliate of the company also faces accusations by state regulators of defrauding consumers.
Lenders Litigate Title Claims
Title insurers and mortgage bankers are battling in court over title insurance claims. One mortgage lender is using litigation to secure a superior lien position on a loan it refinanced after a judgment was issued against the borrower.
American Home Sued Over Servicing Practices
A lawsuit filed by the Texas attorney general alleges violations of the state's mortgage servicing laws byinsurance and taxes even though they didn't owe such expenses.
Mortgage Fraud Cases Jump 55%
A big surge in the number of active mortgage fraud cases helped push the Second Quarter 2010 FraudBlogger.com Index higher. The heavier caseload follows increased efforts by the Obama administration to prosecute mortgage crimes.
Mortgage Crimes Yield Prison Time
In separate cases, two women have been sentenced to prison for defrauding their bank employers by manipulating accounting records and reducing the amount owed on loans. A New Jersey man pleaded guilty to advertising a fraudulent mortgage scheme.
Service Providers Grow Through Acquisitions, Investments
A big law firm that services financial firms made a recent acquisition that included two former congressmen and signals aggressive growth planned at the firm. An investment in an income verification company is expected to enable an expansion into other services, while another mortgage service provider hopes to expand from investments it has received.
Anatomy of a Subprime RMBS
A closer look at some of the subprime loans packaged into residential mortgage-backed securities reveals loans with poor credit scores, silent second mortgages and unverified income that were already delinquent before issuance and garnered triple-A ratings. Many involved mortgage fraud. But investors who are looking to litigation have little hope of recovering their losses -- though secondary lenders are pushing losses back to the originator.
22 Indiana Foreclosure Firms Face Lawsuits
Including three complaints filed Friday, Indiana's attorney general has sued 22 foreclosure firms so far this year -- and more will likely follow. The latest spate of litigation was enabled by recently passed legislation.
Underwriters Suing Employers
Several lawsuits alleging unpaid overtime have been filed against mortgage lenders by underwriters and loan originators. A single law firm is responsible for much of the litigation.
