Federal agencies fine default management company $65 million

Service Link finedOn January 24, the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve (Fed), and the Office of the Comptroller of the Currency (OCC) issued a press release announcing an enforcement action against ServiceLink Holdings, LLC (Service Link). The federal agencies fined $65 million for improper actions by its predecessor company, Lender Processing Services, Inc. (LPS), that resulted in significant deficiencies in the foreclosure-related services that LPS provided to mortgage servicers.


CFPB enters consent order with CitiFinancial for $8.8 million

On January 23, the CFPB issued a press release announcing that it entered into a consent order with CitiFinancial Servicing for alleged violations of the Real Estate Settlement Procedures Act (RESPA), the Fair Credit Reporting Act (FCRA), and the Consumer Financial Protection Act (CFPA).

CitiFinancial Servicing (CitiFinancial) is comprised of four entities incorporated in Delaware, 


CitiMortgage pays $20 million for alleged RESPA violations

On January 23, the CFPB issued a press release announcing that it has entered into a consent order with CitiMortgage, Inc. to resolve allegations that the mortgage servicer violated the Real Estate Settlement Procedures Act (RESPA) and the Dodd-Frank Act’s prohibition against deceptive acts or practices.

CitiMortgage is incorporated in New York and headquartered in O’Fallon, Missouri. It is a subsidiary of Citibank and mortgage servicer for government-sponsored entities including Fannie Mae and Freddie Mac.


JPMorgan Chase settles racial discrimination lawsuit for $55 million

Chase discrimination lawsuitOn January 18, the DOJ and JPMorgan Chase agreed to settle a federal lawsuit that alleged that the bank had discriminated against minority borrowers in violation of the Fair Housing Act (FHA) and Equal Credit Opportunity Act (ECOA). On the same day that the DOJ filed its complaint, the parties agreed to settle the matter for $55 million.

According to the complaint, between 2006 and 2009, JPMorgan had charged higher prices for residential mortgage loans on the basis of race or ethnicity. For years, JPMorgan used a network of mortgage brokers across the country. Chase gave those independent mortgage brokers discretion to change the interest rates and fees charged on mortgage loans from the rates initially set (which were based on objective criteria).


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