twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to 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

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

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

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

Press Releases
Reports and announcements from

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.

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

Mortgage News


Mortgage News

HOT Topics









site map
Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.

The Mortgage Compliance Litigator

Recent mortgage compliance lawsuits and legal actions

March 29, 2010


Alleged mortgage compliance errors are landing some of the biggest names in the mortgage business in court. A bankrupt lender was held liable for mortgage fraud committed by a convicted real estate agent, and a former senior executive tied to the failure of a big FHA lender has been banned from any association with government lending.

Massachusetts Attorney General Martha Coakley said last week that Countrywide Financial Corp. agreed to a settlement that will provide an estimated $18 million in loan modifications -- including principal loan reductions -- to borrowers in the state as well as a $4 million cash payment to the state. The settlement, filed in Suffolk Superior Court, is an expansion of the 2008 agreement reached with 43 other states and Washington, D.C.

Countrywide used unfair lending practices by originating exotic loan products without considering the borrowers' abilities to repay the loans after introductory rates ended, Coakley said.

In a lawsuit against Wells Fargo Home Mortgage Inc. filed in U.S. District Court for the District of Maryland, plaintiff Renee Imeh Okon alleged violations of the Truth in Lending Act, according to a copy of the March 4 decision published by Leagle. She appealed the district court's decision to grant a summary judgment in favor of Wells Fargo, but the U.S. Court of Appeals, Fourth Circuit affirmed the lower court's decision.

TILA claims are fairly easy to bring, but they are difficult to maintain in state or federal court, California attorney Paul J. Molinar recently wrote. When mortgage brokers are involved, claims against wholesale lenders can be harder. Plaintiffs need to show some connection to invoke agency principles and this connection must be beyond the mere relationship status of a lender and a broker.

A federal judge has granted the City of Baltimore more time to file a second amended complaint against Wells Fargo Bank, N.A., the Associated Press reported. Baltimore alleged that predatory and discriminatory lending practices by the bank harmed the city. The judge dismissed the lawsuit in January but noted he did so "with leave for the city to file a second amended complaint asserting narrower claims."

A 70-year-old Arizona borrower won a $100,000 judgment against American Home Mortgage for allegedly aiding and abetting unlicensed real estate broker and convicted felon Patrick Downey in a mortgage fraud scheme, the plaintiff's counsel, Douglas J. Pettibone, said in a statement last month. The case was filed in U.S. Bankruptcy Court for the District of Delaware, where American Home filed bankruptcy, on behalf of Mona Dobben, who claims Downey forged her signature and submitted fraudulent documents without her knowledge.

Dobben claims American Home should have been alerted to red flags but ignored her pleas to look into the fraud. The lender then foreclosed on the property. The judgment included $32,000 in actual damages and $68,000 in treble damages.

An appeal by American Home is pending.

Michael Ashley, the former chief business strategist at failed Lend America, agreed to a settlement with the government that permanently enjoins him from originating, underwriting or submitting any loans to the U.S. Department of Housing and Urban Development for Federal Housing Administration insurance coverage, according to a copy of the consent judgment. He is also banned from advertising, marketing or soliciting business to originate federally insured loans and cannot work for a HUD-approved lender.

Lend America failed after it lost its FHA approval because of gross non-compliance with government lending requirements. Ashley didn't admit any guilt.

A $315,000 civil judgment was obtained by Monterey County, Calif., against Ed Veronick Mortgage Loans Inc. and several defendants, according to a March 12 statement from Monterey County District Attorney Dean Flippo. The loan brokerage allegedly engaged "in a civil conspiracy and illegal business practices between June 2004 and June 2007 to obtain an unfair advantage over competitors and earn illegal profits out of commissions on loans brokered by unlicensed persons."

Several of the defendants surrendered their licenses in exchange for lower penalties. The defendants had already been directed by California's Department of Real Estate in 2005 to cease illegal marketing and sharing loan commissions with unlicensed persons.

A lawsuit that included Pulte Mortgage LLC among its defendants was dismissed on Feb. 18 because it lacked a plausible claim, Pulte Homes announced. The case, filed in U.S. District Court for the Northern District of California, reportedly was an attempt by the Laborer's International Union of North America's to press for unionization at Pulte units.

The dismissal order indicated that the plaintiff, Soladin Kaing, was told she would receive a $75,000 price reduction on a $575,365 home if she used Pulte Mortgage. But the property was allegedly overvalued.

"These union groups have been behind false claims that Pulte and other residential homebuilders engaged in improper practices with respect to the sale of homes," Pulte stated. "The court had the opportunity to address many of these allegations in the lawsuit and found them lacking in merit, specifically citing that the plaintiff did not have a 'plausible claim' and that the plaintiff had an 'insurmountable problem' because plaintiff could not show that the alleged damages were caused by the alleged misconduct of Pulte."

In 2008, the New Hampshire Banking Department entered into a consent order with The Mortgage Specialists Inc. The Plaistow, N.H.-based company allegedly shredded documents to hide alterations to loan files from the regulators.

Now, the broker's former vice president of operations, Jean Duerr, alleges in a civil lawsuit filed in Rockingham County Superior Court that she was fired for refusing to hide things from state and federal investigators, the Eagle Tribune reported. The 10-year employee claims she tried to discourage the practice -- though she was one of four people named in the banking department's order.

Fifth Third Mortgage Co. lost an appeal to overturn a judgment in favor of Branch Banking and Trust Co., according to a copy of the March 2 decision from the Court of Appeals of North Carolina published by Leagle. Fifth Third had argued that its March 2007 note for $1.2 million to Alan Miller should have had priority over an $0.5 million home-equity line-of-credit recorded in June 2007 even though the property description was wrong.

After Miller and his wife defaulted on both loans, BB&T initiated foreclosure proceedings. Fifth Third quickly filed a complaint seeking to correct its errors, but the court ruled in favor of BB&T -- and its ruling was upheld by the appeals court.

Civil Action No. 10-1169 C (Superior Court, Suffolk, Commonwealth of Massachusetts).

RENEE IMEH OKON, Plaintiff-Appellant, v. WELLS FARGO HOME MORTGAGE, INCORPORATED, d/b/a American Servicing Company; FREMONT INVESTMENT & LOAN, INCORPORATED, a/k/a Fremont & Investment and Loan, Defendants-Appellees.
Appellate Case No. 09-1939, Civil Case No. 8:08-cv-01058-RWT (U.S. District Court for the District of Maryland; U.S. Court of Appeals, Fourth Circuit).

Mayor and City Council of Baltimore, Plaintiff, v. Wells Fargo Bank, N.A. and Wells Fargo Financial Leasing Inc., Defendants.
Case No. 08-00062-BEL, Jan. 8, 2008 (U.S. District Court for the District of Maryland).

In Re: American Home Mortgage Holdings, et al.
Case No: 07-11047 (U.S. Bankruptcy Court for the District of Delaware).

United States of America, Plaintiff, -against- Ideal Mortgage Bankers Ltd., d/b/a Lend America, and Michael Howard Ashley Defendants.
Case No. 2:09-cv-4484-JFB--WDW (U.S. District Court for the Eastern District of New York).

SOLADIN KAING, as an individual and on behalf of all others similarly situated, Plaintiff, v. PULTE HOMES, INC.; PULTE HOME CORPORATION, and PULTE MORTGAGE LLC, Defendants.
Case No. 09-5057 SC (U.S. District Court for the Northern District of California).

Case No. COA09-961 (Court of Appeals of North Carolina).

Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of in 2000.

[email protected]

Mortgage Compliance News | Mortgage Compliance Newsletter | Mortgage Regulations
News about complying with mortgage laws, rules and regulations.

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.

Predatory Lending News
FTC and HUD settlements. Class action lawsuits. Predatory lending prevention. Archives back to 2001.

Mortgage License News | State Agencies | NMLS Registration Statistics
Mortgage lending licenses and news about license issues by state. Mortgage broker licensing, license revocations and legislation.
Logout forgot

Mortgage Fraud Statistics
Government and private data on volume of mortgage fraud activity.

Mortgage Fraud Index
Dollar and index amount by quarter and state.

Mortgage Fraud Litigation
Lawsuits and settlements invoving mortgage fraud by a lender insider. From 2007 through first-quarter 2013

Mortgage Fraud News
News stories about fraud committed against home lenders.

Mortgage Fraud Blog
Actions in mortgage fraud criminal and civil cases.

local mortgage fraud

mortgage fraud links

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