Judge Shira Sheindlin of the U.S. District Court for the Southern District of Manhattan ruled HSBC Holdings must face three lawsuits from investors that claim the bank tried to hide defects in residential mortgage-backed securities from them before the crisis,
Read More »Judge Dismisses Class Action Racketeering Suit Against Ocwen
The homeowners claim that Ocwen charged them for unnecessary repeat inspections properties where the borrower was either delinquent or in default, and by doing so they claim Ocwen was in violation of Fannie Mae's servicing guidelines that require individual cases to be assessed to determine if the properties are in need of subsequent inspections after the first.
Read More »Judge Dismisses RMBS Complaints Against Bank of America, U.S. Bancorp
Likewise, Forrest ruled that investors based in Ireland and the Cayman Islands lacked standing to sue the two banks. All of the plaintiffs were given a chance to amend their complaints.
Read More »Bank of America Victorious in Discriminatory Lending Lawsuit
Los Angeles sued Bank of America, one of the nation's largest lenders and servicers of residential mortgages, in December 2013. The lawsuit accused the bank of predatory lending in the run-up to the 2008 financial crisis, saying the terms of mortgage loans offered to minorities were less favorable than those offered to Whites.
Read More »Morgan Stanley Says It Might Settle MBS Suit With Deutsche Bank for $292 Million
Deutsche Bank sued Morgan Stanley in April 2014, claiming that the New York-based investment firm breached a contract by misrepresenting the quality of about $735 million worth of loans held in a trust in in which Deutsche Bank was the trustee and Morgan Stanley was the sponsor.
Read More »Appellate Court Dismisses Company’s Constitutional Challenge to CFPB’s Authority
The U.S. Court of Appeals for the District of Columbia Circuit dismissed a constitutional challenge to the Consumer Financial Protection Bureau (CFPB) brought about by Costa Mesa, California-based support services company Morgan Drexen Integrated Systems.
Read More »Banks Ask Second Circuit Court to Dismiss FDIC’s Mortgage-Backed Securities Suit
At the heart of the FDIC's claim is that the banks misled Alabama-based Colonial Bank, an FDIC-insured institution, as to the quality of $300 million worth of mortgage-backed securities they sold to Colonial in the run-up to the financial crisis. As a result of the soured securities, Colonial suffered huge losses and went into receivership in 2009. FDIC sued the banks three years later in 2012, claiming the banks violated the Securities Act of 1933.
Read More »DOJ Sues Quicken Loans for Alleged Improper Underwriting Practices
Less than a week after Quicken Loans sued the Department of Justice and HUD, accusing them of coercing the Detroit-based lender into making false statements, the DOJ filed a lawsuit against Quicken accusing the lender of improperly originating and underwriting FHA-insured mortgages, according to an announcement from the DOJ on Thursday afternoon.
Read More »Quicken Loans Files Lawsuit Against Federal Agencies
The Detroit-based lender claims the government has enjoyed “extraordinary profitability for FHA's insurance program” through its efforts, saying the company’s participation in FHA's program will proved the government more than $5.7 billion in net profits “from the insurance premiums collected above and beyond claims made from over $40 billion in FHA home loan volume closed by Quicken Loans during the 2007 to 2013 timeframe.”
Read More »Status Conference for Investors’ Lawsuit Over GSE Profits Scheduled for March 31
A status conference for a lawsuit filed by Wall Street investment firm Fairholme Funds against the government over the sweeping of GSE profits into the U.S. Department of Treasury is scheduled for Tuesday, March 31, according to a spokesperson in the chambers of U.S. Court of Federal Claims Judge Margaret Sweeney.
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