July 31, 2014
by Nicholas Tomsho
A federal judge on Wednesday imposed a $1.27 billion penalty on Bank of America after a jury found them liable for mortgage fraud. Judge Jed Rakoff for the US District Court for the Southern District of New York ruled after a jury found that Bank of America, the second largest bank in the US, had ...[read more]
May 5, 2014
by Benjamin Minegar
The US Supreme Court ruled unanimously Monday in Robers v. United States that the Mandatory Victims Restitution Act (MVRA) requires restitution calculation based upon the property a lender loses, not upon the collateral the lender receives. In 2005, petitioner Benjamin Robers submitted fraudulent ...[read more]
February 25, 2014
by Kyle Webster
The ongoing saga of major bank settlements with the Department of Justice, Fannie Mae and Freddie Mac is mostly the result of the economic crisis of 2007-2008. Prior to this time, Bank of America and JPMorgan Chase & Co. sold billions of dollars in mortgage loans and mortgage securities to ...[read more]
February 25, 2014
by G. Redd
Sub-prime loan practices began in the mid-1980s as lawmakers sought to increase housing opportunities. Prior to this, many Americans were unable to purchase a home due to credit scores below 550. Census data compiled by the Federal Reserve shows that over half of the failed mortgage payments were ...[read more]
November 20, 2013
by Elizabeth LaForgia
The US Department of Justice (DOJ) on Tuesday announced that a $13 billion civil settlement with JPMorgan & Co. has been finalized, resolving federal and state claims arising from the bank's risky mortgage practices which helped lead to the 2008 financial crisis. It is the largest settlement ...[read more]
October 26, 2013
by Julie Deisher-Edwards
The Federal Housing Finance Agency (FHFA), acting in its capacity as conservator for Freddie Mac and Fannie Mae, on Friday announced a $5.1 billion settlement with JPMorgan Chase & Co.. The FHFA alleged that JPMorgan misrepresented the quality of the sub-prime mortgages and mortgage securitie... ...[read more]
January 7, 2013
by Dan Taglioli
Bank of America (BOA) on Monday reached a $10.3 billion settlement with Fannie Mae to settle claims that Countrywide Financial Corporation, now a BOA subsidiary, employed faulty lending practices on $1.4 trillion in mortgages that were sold to Fannie Mae as investment products from 2000 to 2008. ...[read more]
November 2, 2012
by Rebecca DiLeonardo
Wells Fargo claimed Thursday that a federal lawsuit filed by the US government to recover money from defective mortgages is barred by a settlement reached earlier this year. The government filed the lawsuit last month, alleging that Wells Fargo deliberately concealed the nature of mortgages that ...[read more]
October 24, 2012
by Jerry Votava
US Attorney Preet Bharara on Wednesday filed a $1 billion civil lawsuit against Bank of America (BOA) claiming the bank committed fraud in residential mortgages. The claim was filed in the US District Court for the Southern District of New York (SDNY) and alleges that Countrywide Financial, a home ...[read more]
August 14, 2012
by Max Slater
The US Securities and Exchange Commission (SEC) announced Tuesday that Wells Fargo will pay a $6.5 million fine for improperly selling high-risk mortgage securities to investors during the housing market crash in 2007. The SEC claimed that Wells Fargo did not adequately inform investors of the ...[read more]

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