Tag Archives: Department of Justice

Quicken Loans CEO Bill Emerson is adamant in his denial of the Department of Justice's accusations.

It's the fourth-largest RMBS settlement reached between the government and one financial institution.

The settlement stems from Wells Fargo’s participation in the Direct Endorsement Lender program, a federal program administered by the Federal Housing Administration. It is the largest recovery for loan origination violations in FHA history.

Federal and state regulators are still probing the bank even after Wells Fargo agreed to a $1.2 billion settlement earlier this month over underwriting practices on FHA-insured loans.

Despite a memo issued by the Justice Department in September promising to seek prosecution of individuals for their role in the financial crisis, it has not happened in the last five months even after the announcement of three notable settlements with large financial firms.

The Department of Justice (DOJ) announced Friday that HSBC Bank has reached a settlement with several federal agencies and almost every state attorney general regarding "mortgage origination, servicing, and foreclosure abuses."

The Department's complaint, which originated from a referral by the Federal Deposit Insurance Corp., says that from January 2011 through May 2014, Sage Bank originated mortgage loans to about 550 African-American and Hispanic borrowers.

The DOJ is reportedly standing by its word and pursuing criminal cases against executives at these two banking institutions for allegedly selling flawed mortgage securities after being warned by associates of their wrongdoings.

Wells Fargo Bank and the Department of Justice’s U.S. Trustee program have entered into a settlement agreement over the bank’s acknowledged violation of federal bankruptcy rules that took effect in December 2011, according to an announcement from the DOJ.

Bernanke, who headed the U.S. central bank from 2006 to 2014, told the BBC that the Department of Justice should have attempted to hold individuals accountable for the crisis instead of companies because it was the decisions of individuals, and not the companies themselves, that brought on the crisis.