Posts Tagged ‘FDIC’

FDIC announces settlements with Wisconsin banks for unfair and deceptive practices

On May 11, 2017, the FDIC issued a press release announcing settlements with Bank of Lake Mills, Lake Mills, Wisconsin, and two of its institution-affiliated parties, Freedom Stores, Inc. and Military Credit Services, LLC (MCS), resolving allegations that the lenders violated Section 5 of the Federal Trade Commission (FTC) Act, which prohibits unfair and deceptive practices.

HUD reaches $1.25 million settlement with mortgage lender for concealing defaults from FHA

Franklin First FHA lawsuitOn February 7, the US Attorney for the Eastern District of New York, the Office of the Inspector General for the Department of Housing and Urban Development (HUD), and the Inspector General for the Federal Deposit Insurance Corporation (FDIC) issued a press release announcing a settlement agreement with residential mortgage lender, Franklin First Financial, Ltd. (Franklin First).

The lawsuit, which was filed in September 2015, alleged that Franklin First and several executives conspired to hide their high default rate from HUD so it could continue to issue loans insured by the Federal Housing Administration (FHA).

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.