Tag Archives: Settlements

The Justice Department announced that U.S. Bank has agreed to a $200 million settlement on claims it underwrote FHA-insured loans that did not meet eligibility requirements. U.S. Bank also admitted that its quality control program fell short of FHA requirements. Consequently, the bank failed to identify shortcomings in many of the loans it had certified for FHA insurance.

The Federal Housing Finance Agency (FHFA), functioning as the conservator for Freddie Mac, announced a $99.5 million settlement with RBS Securities, Inc. The settlement resolves alleged violations of federal and state securities law in connection with private-label mortgage-backed securities (PLS) purchased by Freddie Mac during 2005 to 2007.

SunTrust Banks announced it has struck a nearly $1 billion deal with the government to settle allegations of misconduct in its lending and servicing practices. In an agreement reached with the Consumer Financial Protection Bureau (CFPB), Justice Department, HUD, and attorneys general in 49 states and the District of Columbia, SunTrust agreed to provide relief to consumers and payments to the government totaling a combined value of $968 million.

Per a settlement announced with the Federal Housing Finance Agency (FHFA), First Horizon National Corporation has agreed to pay a combined $110 million to Fannie Mae and Freddie Mac to resolve alleged violations of securities laws connected to private-label securities purchased by the GSEs from 2005–2007. The settlement is the 14th of its kind, bringing the agency closer to closing the book on 18 suits filed in 2011.

Bank of America has agreed to a multibillion settlement with the Federal Housing Finance Agency (FHFA) to resolve allegations of securities fraud related to loans sold to Fannie Mae and Freddie Mac at the height of the housing bubble. Under the agreement, BofA will make an aggregate payment of approximately $9.33 billion, $3.2 billion of which will go toward the repurchase of certain RMBS at fair market value.

According to separate releases from both FHFA and Credit Suisse, the bank will pay approximately $234 million to Fannie Mae and approximately $651 to Freddie Mac—$885 total. The settlement—the ninth out of 18 suits filed against banks by the FHFA in 2011—closes all claims against Credit Suisse in two lawsuits: FHFA v. Credit Suisse, et al. and FHFA v. Ally Financial Inc., et al.

California's Department of Business Oversight announced the state has joined 48 others in reaching a $2.1 billion settlement with Ocwen Financial Corporation and Ocwen Loan Servicing. The lawsuit stems from Ocwen's acquisition of two mortgage servicers, Litton Loan Servicing, LP and Homeward Residential, Inc., in 2011 and 2012, respectively. Ocwen was held liable for prior malfeasance regarding mortgage servicing laws.