Bank of America reported on Wednesday its earnings for the third quarter, revealing that profits tanked under the weight of a massive legal charge stemming from a recent mortgage settlement with the Justice Department. Factoring in the settlement, BofA's mortgage unit was the only one of its five businesses that didn't see income grow over the last year.
Read More »HUD OIG Recoups $1B
The Office of Inspector General for HUD announced that civil investigations of some of the Federal Housing Administration's (FHA) largest lenders have resulted in significant settlements in the last year. "These settlements are the latest step in a continuing effort to bring to light significant problems that we have identified in the loan underwriting practices of a number of large FHA-approved lenders, which have or will provide a meaningful financial boost to the FHA insurance fund," HUD OIG David A. Montoya said.
Read More »Wells Fargo Settles Over Maternity Discrimination Claims
HUD announced a $5 million settlement with Wells Fargo Home Mortgage to resolve allegations that Wells Fargo discriminated against women who were either pregnant or on maternity leave. Among other accusations, the six complaints allege that Wells Fargo made loans unavailable to families based on familial status and forced women to give up their maternity leave and return to work before their loans closed.
Read More »Chase Claims $868M in Consumer Relief Credit
JPMorgan Chase reports it has completed nearly a quarter of its consumer relief obligations required under a landmark mortgage-backed securities (MBS) settlement last year. According to a report issued Wednesday by the settlement's monitor, Joseph Smith Jr., the megabank expects to be credited for more than $862 million it provided through various borrower relief measures in the second quarter.
Read More »HSBC, FHFA Reach $550M RMBS Settlement
HSBC Holdings is the latest institution to make good with the Federal Housing Finance Agency (FHFA) after the firm's North American arm agreed Friday to pay hundreds of millions to settle claims revolving around faulty mortgage-backed securities (MBS) sold to Fannie Mae and Freddie Mac in the years before the crash.
Read More »Morgan Stanley Agrees to $95M MBS Settlement
Morgan Stanley has agreed to pay $95 million to settle a lawsuit alleging it misled investors in securities purchases prior to the financial crisis. The plaintiffs alleged in the suit had alleged that Morgan Stanley violated U.S. securities law in a total of 29 mortgage-backed securities it packaged and sold in 2006 and 2007.
Read More »Goldman Sachs, FHFA Settle in RMBS Suit
Goldman Sachs has agreed to pay $3.15 billion to settle a lawsuit filed by the Federal Housing Finance Agency (FHFA) over faulty RMBS. Under the terms of the settlement, Goldman Sachs will pay $2.15 billion to Freddie Mac and about $1 billion to Fannie Mae to buy back the alleged faulty RMBS the two GSEs purchased between 2005 and 2007. FHFA estimates the worth of the settlement to be about $1.2 billion due to the bonds' current value.
Read More »BofA, Justice Department Announce Record Settlement
Bank of America announced Thursday morning it has agreed to pay a record $16.65 billion to resolve claims of financial fraud in the sale of toxic mortgage-backed securities during the years leading up the financial crisis.
Read More »Fifth Third to Pay $1.52M in Discrimination Settlement
Fifth Third Bancorp has reached a settlement agreement with the Justice Department in which it will pay more than $1.5 million over allegations of loan discrimination against applicants with disability status. "Today's announcement holds lending institutions accountable for their actions, and is a reminder that every American has the right to apply for a home loan and live in the community of their choice," said Gustavo Velasquez at HUD.
Read More »Report: BofA, Justice Department Finalizing $16B Settlement
Bank of America and the Justice Department are close to completing a long-rumored and record-setting deal to resolve allegations of misconduct sales of mortgage-backed securities that went bad, according to a report from the Wall Street Journal.
Read More »