2021 provided some long-awaited new exit ramps off the long and winding road of business vs. business residential mortgage litigation stemming from the 2007–08 financial crisis. A multitude of recent settlements has left that...more
United Wholesale Mortgage (UWM), the nation’s largest wholesale mortgage lender, announced on March 4, 2021, that it would no longer do business with mortgage brokers who also worked with Rocket Mortgage (the online loan...more
5/6/2021
/ Anti-Competitive ,
Anti-Steering Rules ,
Antitrust Violations ,
Class Action ,
Competition ,
Consumer Financial Products ,
Financial Services Industry ,
Monopolization ,
Mortgage Lenders ,
Mortgages ,
Quicken Loans ,
Restraint of Trade ,
Sherman Act ,
Unfair or Deceptive Trade Practices ,
Wholesale
A recent decision by the United States Court of Appeals for the Eighth Circuit offers some vindication for mortgage companies still facing “repurchase” demands made by the banks to which they sold residential mortgages in the...more
11/19/2019
/ Appeals ,
Consumer Financial Products ,
Financial Crisis ,
Financial Services Industry ,
Foreclosure ,
Loans ,
Mortgage Lenders ,
Mortgage Loan Originators ,
Mortgages ,
Repurchases ,
Summary Judgment
Thousands of mortgage lenders across the country either recently received, or will soon be receiving, this document from Lehman Brothers Holdings, Inc. (LBHI). It is a notice of a motion to approve a proposed settlement of...more
5/24/2017
/ Banking Sector ,
Commercial Bankruptcy ,
Fannie Mae ,
Freddie Mac ,
Indemnification ,
Lehman Brothers ,
Mortgage Lenders ,
Mortgages ,
Popular ,
Repurchases ,
RMBS ,
Settlement Offer
With 2016 rapidly drawing to a close, here are some thoughts regarding the types of litigation and legal/regulatory issues that will likely be top-of-mind for financial services companies, especially mortgage companies and...more
12/23/2016
/ Banks ,
Civil Investigation Demand ,
Consumer Financial Protection Bureau (CFPB) ,
Data Breach ,
Data Security ,
Department of Justice (DOJ) ,
Department of Labor (DOL) ,
FDIC ,
Federal Trade Commission (FTC) ,
Fiduciary Rule ,
Financial Services Industry ,
Indemnification Clauses ,
Mortgage Lenders ,
PHH Corp. v CFPB ,
RMBS
The Consumer Financial Protection Bureau (CFPB) will likely be weakened by the incoming Trump administration and its Republican allies in Congress. Exactly how, and how much, remains to be seen, however—and, in the meantime,...more
12/5/2016
/ Banking Sector ,
Bonuses ,
Consumer Lenders ,
Cross-Selling ,
Financial Institutions ,
Financial Regulatory Reform ,
Fraud ,
Incentive Compensation ,
Mortgage Lenders ,
Mortgages ,
Online Marketplace Lending ,
Payday Loans ,
Popular ,
Regulatory Oversight ,
Trump Administration ,
Wells Fargo
In the aftermath of the financial crisis, Fannie Mae and Freddie Mac aggressively demanded Wall Street and big bank aggregators (“aggregators”) repurchase millions of defaulted and distressed loans, due to purported breaches...more
6/12/2015
/ Banking Crisis ,
Banking Sector ,
Citibank ,
Fannie Mae ,
Freddie Mac ,
GSE ,
Mortgage Lenders ,
Mortgage Loan Aggregators ,
Mortgage Loan Originators ,
Mortgages ,
Repurchases ,
Settlement Agreements
Evidence is mounting that the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) are taking a renewed interest in investigating possible redlining—the practice of lenders charging certain groups...more
The U.S. Supreme Court recently held in Jesinoski v. Countrywide Home Loans, Inc. that borrowers exercising their right to rescind mortgages under the Truth in Lending Act (“TILA”) only need to provide written notice to...more
An increasing number of banks, mortgage lenders, auto finance companies and other financial services industry participants are dealing with inquiries, investigations and actual or threatened legal claims from the Consumer...more