Stewart Sues Brokers
Some of the mortgage brokers who previously operated as part of a defunct net branch network are embroiled in a $3 million mortgage fraud lawsuit in the Massachusetts state courts.
Broker Beats State
A Massachusetts judge has ruled that a mortgage broker was the victim -- and not the perpetrator -- of a fraudulent mortgage license scheme.
NetBank Sues Former Executive
NetBank Inc. has filed a lawsuit against a former executive of its now defunct nonconforming mortgage subsidiary -- claiming he owes the company $1.1 million as a result of being terminated.
BK Trustee Targets Lenders
A bankruptcy trustee seeks to set aside liens held by mortgage lenders including Washington Mutual and National City for their alleged negligent underwriting of fraudulent loans from a now bankrupt company that bilked 490 investors of $40 million.
MERS Cloud Lifted
A court has upheld that the liens held by the mortgage electronic registration system are legitimate and must be recorded by county clerks.
Former Fannie Execs Face Charges
Fannie Mae's regulator has filed civil charges against three former top executives and is seeking hundreds of millions of dollars from the trio.
Secondary Subprime Suit
Two mortgage companies, one owned by an investment banker and another in the process of being acquired by an investment banker, are battling over $70 million in subprime mortgage buybacks.
Twisted Foreclosure Lawsuit
Washington Mutual has reportedly agreed to settle with a couple who claimed to suffer emotional distress when their home was foreclosed on after they had filed for bankruptcy. But whether the husband or his now deceased wife actually ever owned the property was not clear.
Fannie Files $2 Billion Lawsuit
For the third time this year, auditors have been the target of legal actions over the faulty financials of mortgage firms. But the defendant in the latest litigation, a lawsuit filed by mortgage behemoth Fannie Mae, said the issues raised in Fannie's complaint are already being addressed in a federal case.
Predatory Liability for Investment Banker
A federal appeals court has held Lehman Bros. liable for "aiding and abetting" a multi-million dollar predatory lending scheme.
Chase Settles With States
Chase Home Finance LLC has settled allegations it deceived borrowers when it added membership club fees to their mortgages.
Real, Phony Attorneys Busted
Flagstar Bank was duped in one case involving a crooked lawyer for $700,000 while a Miami attorney stole about that amount in public money.
A Virginia Beach borrower has filed a lawsuit against a mortgage broker, claiming he was deceived about refinancing his delinquent loan. Meanwhile, the broker has filed a lawsuit against a television station that aired the borrower's allegations -- claiming the station's defaming coverage has severely cut into his business. And one attorney involved in the matter suggests more lawsuits are on the way.
Processor OT Lawsuit
Loan processors have filed a lawsuit against an Indiana-based mortgage lender claiming they were forced to work unpaid overtime and told to lie about it.
Underwriters Fired for Fraud
An Ohio bank has reportedly fired a handful of underwriting employees and filed a lawsuit against dozens of people for more than $10 million it claims was lost in a mortgage fraud scheme.
States Strike Down Predatory Law
For the second time in two weeks a court has struck down a law designed to crack down on predatory lending.
Wholesaler Settles Class Actions
A Michigan-based nonprime mortgage lender has settled three class action lawsuits.
State Preempts City
Ohio's top state court has struck down the city of Cleveland's attempt to outlaw predatory lending.
Fannie Compromises on Tech Patent
Fannie Mae's patent loan customization technology will be available to all lenders, though it won't fully be in the public domain.
Legal Battle Brewing
Two Virginia-based companies are fighting a legal battle over nearly $10 million in lost profits that allegedly resulted from mismanagement of a mortgage company.
Broker Sued for Faxing Prospects
When mortgage broker Shelly Piaggio looked to generate mortgage leads in 2003 for her newly hired loan officers, she decided that contacting prospective borrowers via fax machine was the way to go.
Collection Harassment Class Action
The mortgage lending subsidiary of Warren Buffett's corporate empire has been sued over alleged collection harassment.
Bad Legal Advice
From Florida to Hawaii, real estate attorneys continue to break the law. In one of the latest cases, a Georgia lawyer was charged in a mortgage fraud scheme designed to pump up his used car business.
NovaStar Faces YSP Lawsuit
Allegations of undisclosed yield spread premiums paid to mortgage brokers have NovaStar Mortgage Inc. facing thousands of borrowers in a class action lawsuit.
LendingTree Sued for Lending
A lawsuit recently filed in California's state court claims LendingTree operates as a lender even though it claims otherwise. But the online giant says the lawsuit is only retaliation from a disgruntled former employee.
Fannie Technology Draws Concern
Fannie Mae, facing pressure from trade groups who are attacking its patent on a new loan customization system, is beginning to address the groups' concerns.
Mortgage Fraud Lawsuit
A national mortgage lender has filed a lawsuit against six businesses and 28 individuals -- including several mortgage brokers and originators -- alleging that it has been the victim of a complex sting operation, causing the company to approve 19 loans that have all defaulted.
$3 Million Bankrate Settlement
Bankrate Inc. has agreed to pay $3 million to settle a lawsuit brought by a mortgage lender who claimed that the popular purveyor of consumer interest rate data looked the other way while other lenders used the company's Web site to deceive prospective borrowers.
Major Lenders Sued Over Spam
When the president of a California business noticed her company's e-mail servers had suddenly started receiving loads of junk mail from what appeared to be actual mortgage companies, she decided to do some sleuthing.
Aborted Audit Excruciates Auditors
Auditors have settled for nearly $40 million a lawsuit charging them with failing to notify investors of an audit that was aborted upon the discovery of financial fraud. The settlement caps the sensational history of a mortgage banker that used hundreds of millions of dollars intended to fund mortgage loans for his own lavish lifestyle -- buying himself a yacht, giving his adult-film actress girlfriend a mansion, and driving his company into a massive bankruptcy.
Credit Score Lawsuit
A lawsuit filed against the three major credit bureaus accuses the trio of using false and misleading claims to promote adoption of their own credit scoring product. But the lawsuit, which was anticipated, was without merit, the bureaus contend.
Reverse Redlining Ruling Reaffirmed
Pennsylvania's top court has decided to let stand a lower court decision against a mortgage broker that Pennsylvania law forbids "reverse redlining."
WaMu Loses Upcharging Appeal
A California state appellate court has found Washington Mutual Inc. liable for upcharging for settlement services provided by third-parties. In so ruling, the court reversed an earlier decision against the Los Angeles-area borrowers who had challenged the controversial business practice.
SEC Sues Former Mortgage Exec
The Securities and Exchange Commission has filed a lawsuit against the former president of a California mortgage company -- accusing him of fraudulently raising more than $30 million to pay off personal gambling debts and fund a lavish lifestyle.
Service Guaranteed Higher Credit Scores
The state of Missouri has shut down a credit repair service that allegedly did nothing for the nearly $500 it charged. The owner of the company, who falsely claimed to carry a mortgage license, has been shut down before under another business name.
Recruitment Spawns Lawsuit
Connecticut regulators are accusing CTX Mortgage Co. of illegally recruiting the employees and stealing secret information from a competitor.
State Stops Seconds
An Ohio homebuilder may have to refund interest on as many as 300 loans because it was not licensed to make second mortgages.
Harassment Lawsuit Filed by EEOC
The Equal Employment Opportunity Commission has filed a lawsuit against a Utah-based residential mortgage lender alleging female workers were sexually harassed by the owner and other employees. But an attorney for the defendants claims an internal investigation by the company paints a different picture.
Countrywide Stung by Massive Fraud
Countrywide Home Loans appears to have been victimized in a mortgage fraud case that could involve as much as $40 million.
128 Originators Suing Employer
A lawsuit against an Indiana-based mortgage company now includes 128 mortgage originators as plaintiffs -- and the number is still growing. The attorney who filed the case has a stern warning for other mortgage employers.
State Sues 4 Mass Firms
In the wake of what the Massachusetts Division of Banks calls an effort to "crack down on abusive mortgage lenders and brokers," emergency orders to stop conducting real estate transactions have been issued to four companies accused of unfair and deceptive practices.
Closing Attorney Settles with FDIC
A Boston closing attorney has settled with the Federal Deposit Insurance Corp. allegations that he violated federal law by providing tickets to sporting events and gift certificates to upscale restaurants to promote referrals of loan closings.
Broker Owes $239,000 in Back Wages
The U.S. Department of Labor has filed a lawsuit claiming an Ohio-based mortgage broker did not pay his loan officers the required minimum wage under federal law.
3 Year Rescissions for DE Borrowers
A potentially large number of Delaware borrowers may still be able to rescind mortgages closed up to three years ago with Ameriquest.
The Power of Attorneys
Stealing mortgage proceeds from clients is bad enough. But two of the latest real estate attorneys gone wild stole from elderly clients.
Attorney, Appraiser Settle w/HUD
A Boston area closing attorney and an appraisal company settled government allegations they paid illegal kickbacks to a New England mortgage lender in exchange for referral business.
$36 Million First Horizon Settlement
First Horizon Home Loan Corp. has agreed to settle allegations it charged Missouri borrowers illegal second mortgage fees. The move was made in spite of claims that no laws were broken.
Credit Report Reissue Fees Litigated
Equifax is using its "market power" to make mortgage bankers and brokers purchase additional credit reports whenever "tri-merged" reports are reissued, according to an Ohio lawsuit filed against the credit repository.
Cease & Desist Order Against Mortgage Co.
A North Carolina firm that promised to provide foreclosure relief to delinquent borrowers has been ordered to cease business.
Freddie Settles With Employees
The Federal Home Loan Mortgage Corp. has agreed to pay $4.65 million to settle a lawsuit alleging the company misled employees by overstating earnings and mismanaging their retirement funds.
Countrywide Sued for Overcharges
A $30 fee has landed Countrywide Home Loans in an Illinois state court fighting a case that seeks class action status. But the mortgage giant has asked the judge to throw out the lawsuit.
Drugs, Bribes & Thefts
A real estate attorney who operated a Washington escrow company was apparently escrowing more than money, while two lawyers from a prominent California firm have denied charges they bribed a witness who was a mortgage broker.
IndyMac Files Fraud Lawsuit
IndyMac Bank has filed a lawsuit alleging it was defrauded on $20 million in Florida mortgages.
BoA, HSBC Tangled Up In Fraud Lawsuit
Three prominent banks must defend themselves against allegations of negligence and breach of fiduciary duty in connection with a mortgage-related Ponzi scheme run by a real estate attorney who milked hundreds of millions of dollars from the Orthodox Jewish community.
Highest Closing Costs by State
Attorneys' fees helped drive one state's mortgage closing costs above the rest.
Home Improvements Financed, Not Completed
An Ohio mortgage broker, whose offices were recently raided by postal inspectors and local police, helped finance home improvements that were not performed.
Attorneys Gone Wild
Three more real estate attorneys may be headed for prison.
SEC Stops Senior Scam
In an emergency action, the Securities and Exchange Commission has frozen the assets and received the green light from a federal judge to appoint a receiver to stop a real estate investment scheme in New York that has allegedly taken millions of dollars from senior citizens and retirees since 1996.
MI Co. Sued Over Role in Fannie Accounting Fraud
A mortgage insurer is being blamed for helping Fannie Mae commit accounting fraud.
FL Attacking Do Not Call Violators
A California-based mortgage broker is facing a Florida lawsuit for allegedly violating the state's "Do Not Call" law.
Crooked Mortgage Attorneys
Real estate lawyers in trouble with the law continue to grow in numbers.
Brokers Should Scrutinize Lender Contracts
PHILADELPHIA -- Mortgage brokers should review, investigate and analyze contracts with wholesale lenders at the outset of the business relationship so they don't have to defend themselves in court down the road.
FTC Against Mandated Lawyer Doc Prep
The Federal Trade Commission has come out against a state bill that would require attorneys to prepare documents in real estate transactions.
A rash of crooked attorneys has descended upon real estate finance.
Broker Sues Freddie Over Blacklisting
When a California mortgage broker decided to share his yield spread premiums with borrowers, his business boomed and customers lined up to repeatedly refinance their home loans. But when Freddie Mac found out about the practice, the party was over.
Mortgage Cartel Alleged
Bankrate Inc. has joined a host of companies being sued by a mortgage lender that claims the group is deceiving prospective borrowers.
Lead Companies Battle in Court
For the second time this year, an Internet lead generation company has obtained a judgment against a competing mortgage lead company.
Originator OT Issue Isn't Over
Washington Mutual Inc. was sued this week in a New York federal court by three former mortgage loan originators for failure to pay overtime and minimum wages. The trio claims the company can't hide behind a recent overtime ruling.
MO Attorney General Sues Mortgage Co.
Two companies have been sued by the state of Missouri over telephone calls to prospective borrowers.
Employees Allege Fraud in Lawsuit
Former employees of a defunct Indiana-based mortgage banker are accusing the company of fraud.
Loan Pricing on Regulators' Radars
WASHINGTON -- Government regulators and class-action lawyers are on the prowl for mortgage lenders that use unfair pricing tactics. And lenders that want to be prepared for government scrutiny of their servicing practices should look to two prior servicer settlements.
Massive Ruling Against Quicken
An appeals court has ruled Quicken Loans Inc. must abide by a defunct California statute -- potentially costing the online lender millions of dollars in interest refunds.
Couple Claims CTX Stole Staff
CTX Mortgage is being sued in Connecticut state court by a husband-and-wife team who say the Texas-based lender stole their employees using sales training seminars as recruiting grounds.
Mortgage Case May go to Supreme Court
The U.S. Supreme Court is expected to make its decision next month on whether to hear a case about whether mortgage lenders affiliated with national banks can be subjected to state anti-predatory lending laws.
Warehouse Lender Wins Massive Judgment
A small East Coast bank that was sued by a warehouse lender over its relationship with a now-defunct mortgage banker has been hit with a $44 million judgment.
Plot Thickens at Class Action Law Firm
A retired mortgage broker has admitted he was illegally paid millions of dollars by a major law firm that has filed numerous class-action lawsuits against large lenders.
Foreclosure Assistance Co. Battling State AGs
A North Carolina-based mortgage default assistance company has found itself in hot water with state attorneys general across the country. Consumers claim the company takes their money but does not negotiate lower mortgage payments, as promised, with their lenders.
$186,000 Originator OT Judgment Against Ohio Co.
A recent originator overtime ruling by a government agency has the attorney representing one mortgage company scratching his head about how to handle a judgment issued before the ruling.
DOJ Touts Action Against Downpayment Assistance Firm
A federal court has barred an Illinois-based downpayment assistance organization from promoting contributions to its program as tax deductible.
Former Countrywide Execs Settle SEC Charges
Two former Countrywide Financial Corp. executives have settled insider trading charges with the Securities and Exchange Commission.
Several Class Actions Filed Against MD Lenders
One of Maryland's most prominent class action attorneys has trained his sights on mortgage lenders in Maryland, setting up a predatory lending unit within his law firm, running newspaper ads and accusing an increasing number of lenders in court of charging excessive and illegal fees. But Maryland lenders and mortgage associations say the lawsuits have no merit and will hurt consumers and the smaller mortgage lenders.
Wells Sued for Pregnancy Discrimination
Wells Fargo Home Mortgage has been sued by a former residential mortgage manager who claims that, while employed by the company, she was punished for becoming pregnant.
Ameriquest Settlement Worries Brokers
WASHINGTON -- The chairman of a mortgage broker trade group warned that the landmark settlement reached earlier this year with Ameriquest Mortgage Co. has big implications for mortgage brokers.
Shareholders Sue PHH
In a lawsuit filed against PHH Corp., shareholders allege financial misrepresentation. Plaintiffs' attorneys say the filing is a class action.
IL Sues Mortgage Companies for Fraud
The Illinois Attorney General has filed two lawsuits against three companies she says claim to help homeowners facing foreclosure keep their houses but that actually engage in mortgage rescue fraud.
FTC Takes Position in M.I. Lawsuit
The Federal Trade Commission weighed in on whether charging a borrower a higher mortgage insurance premium constitutes an adverse action.
Shareholders Lose Lawsuit Against REIT
A Florida real estate investment trust has won a lawsuit filed by stockholders.
Mortgage Technology Suit Costs Lender Near $6 Million
A Houston-based mortgage-software provider has been awarded $5.8 million in a patent infringement case it brought against a large Internet-based mortgage company.
Broker Baffled Over Overtime Lawsuit
The Department of Labor has filed a lawsuit against two Ohio-based mortgage companies which it claims failed to pay their sales agents more than $220,000 in back wages. But the companies' owner has vowed to fight the action, claiming that his employees were properly paid on a commission basis.
Lawsuit Suggests Ameriquest Shouldn't Have Made Loan
Ameriquest Mortgage Co. is facing a lawsuit filed in Utah's federal court brought by an elderly woman who claims company representatives cajoled her into obtaining a loan at double the interest rate she could have gotten from her credit union. But the subprime lender sees no merit in her allegations.
LOs Sue First Horizon
A federal judge has ordered that a lawsuit filed on behalf of seven loan officers who claim that First Horizon Home Loan Corp. did not pay them overtime can proceed as a nationwide collective action.
Judgment on $31,000 Mortgage Costs Servicer $1.8 Million
A Florida-based nonconforming mortgage servicer seeks reversal of a $1.8 million judgment connected to a $31,000 home improvement loan.
2nd Mortgage Fee Waiver Lands Lender in Litigation
A Maryland-based bank has been sued by a borrower who claims the lender deceived him when it waived closing costs on a second mortgage, then charged the fees when he prepaid the loan. Attorneys for the borrower are seeking class-action status.
Wells Sued for Damaged Credit
A California couple is taking Wells Fargo Home Mortgage to court, claiming that the company "blighted their credit" by inaccurately reporting that they were responsible for making payments on an Orange County house that was condemned after it disappeared in a sinkhole.
Fake Paystubs Online
A Florida Internet company has allegedly offered online services for mortgage loan applicants that needed fake paystubs.
OT Lawsuits Filed Against Wells, National City
Two mortgage giants face lawsuits alleging the companies violated federal law by refusing to pay overtime.
Down Payment Assistance Under Fire
The federal government is seeking an injunction against an Illinois-based downpayment assistance organization that it says wrongly promotes seller-paid assistance as tax deductable.
$200k Judgment Against Lead Company
A California-based mortgage lead company has obtained a $200,000 judgment against an online competitor that copied its ads.
Credit Agency Settles Charges of Sloppy Merged Reports
A Utah-based credit reporting agency will pay thousands of dollars to the Federal Trade Commission to settle charges that it allegedly did not verify data when creating a credit report for FHA borrowers, some of whom have defaulted on the loans.
Lender Sued Over Inflated Appraisal
A West Virginia woman will get a chance to tell a jury her side of the story in a case in which she has accused a mortgage lender of appraisal fraud.
Shareholders Sue Nonprime REIT
Shareholders are suing a California-based real estate investment trust, claiming they were lied to about the true financial condition of the company.
Ocwen Hit With Biggest Judgment Ever
A Texas attorney has handed Florida-based Ocwen Financial Corp. a one-two punch by obtaining the two largest legal verdicts ever against the company.
Mortgage Company Loses Lawsuit
A Colorado court has ruled against a mortgage company that allegedly deceived delinquent borrowers into giving up their homes.