Daily Archives: April 29, 2015

Quicken Sued By Feds Over Home Loans

WASHINGTON, D.C. (CN)- The United States’ second largest mortgage lender routinely approved loans that violated Federal Housing Authority rules, resulting in millions in losses for the federal government, the U.S. Justice Department claims.
Quicken Loans, Inc., is approved by the U.S. Department of Housing and Urban Development to underwrite mortgage loans under an FHA program designed to encourage home ownership by creditworthy low income families and first-time home buyers.
In a lawsuit filed in the Washington, D.C. Federal Court last week, the Justice Department says Quicken took advantage of its position and intentionally made exceptions to program rules in order to approve families who did not meet the criteria for a loan.
Approving more families for loans mean more profits for Quicken, the agency says. At the same time, however, any costs of default fell squarely on the shoulders of the federal government.
“Quicken established a culture that valued getting a loan approved and endorsed for FHA insurance over complying with FHA’s rules,” the complaint says. “Quicken’s aim was to get loans insured by the United States and sold for a profit – even when Quicken could not truthfully certify to FHA that the loan qualified for FHA insurance.”
Quicken management encouraged its underwriters to break HUD rules by allowing exceptions to underwriting requirements, requesting inflated appraisals, manipulating data, pressuring underwriters to approve loans faster, paying prohibited commissions to underwriters and encouraging underwriters to ignore risks evident in loan files, the Justice Department says.
The lender also had the FHA endorse loans that it knew violated FHA requirements, the complaint says.

Read on.

NY Lawmakers Want Banks Held Accountable For ‘Zombie Properties’

NEW YORK (CBSNewYork) — Officials are warning the foreclosure crisis in the boroughs isn’t over and are taking aim at so-called “zombie properties.”

Although many people might think the crisis is abating, there has actually been a sharp increase inabandoned and foreclosed homes in the last year, state Attorney General Eric Schneiderman said Monday.

“Last year in the Bronx there was a 45 percent increase in the number of ‘zombies,’”Schneiderman said.

Bronx state Sen. Jeff Klein is introducing a bill that would let homeowners stay in the homes as long as possible and hold the banks accountable for the disrepair.

Read on.

Ex-JPMorgan Employee Stole Customer Data, FBI Says

Law360, Los Angeles (April 28, 2015, 9:42 PM ET) — Federal prosecutors charged a former JPMorgan Chase & Co. employee with bank fraud, alleging he stole customer account information and used it to make unauthorized withdrawals, according to New York federal court filings.

The Federal Bureau of Investigation said during the course of its investigation, Peter Persaud sold customer bank information to an undercover agent through a confidential informant, according to a criminal complaint filed on April 20 and unsealed on Tuesday.

In November 2014, Persaud allegedly approached the FBI’s informant — who was not under…

Source: Law360

BofA Can’t Bleed Child Actor Trusts, Calif. Appeals Court Rules

Law360, Los Angeles (April 28, 2015, 9:48 PM ET) — A California appeals court on Monday revived a putative class action against Bank of America NA and ruled banks cannot pull service fees without court approval from so-called Coogan trusts, which are designed to protect the earnings of child entertainers.

Named plaintiffs Jasmine Phillips and Anesha Coleman had alleged the bank’s withdrawals from the trust accounts of their actor children, including withdrawals for monthly service fees, violate California law, which prevents withdrawals from the accounts by any person or entity without express court permission until a beneficiary…

Source: Law360

Wal-Mart to build 115 new China stores by 2017 in push to offset slowing growth

It makes you wonder if this is why Walmart closed the the recent 6 stores.. I just never believed the plumbing problem was the cause of closing the 6 stores and laying off employees…

Giant U.S. retailer Wal-Mart Stores Inc (>> Wal-Mart Stores, Inc.) plans to expand its footprint in China by nearly a third by opening 115 new stores by 2017, the firm’s chief executive said, in a renewed push to lure China’s grocery shoppers despite slowing growth.

“Our aim is to become an integral part of China’s economy,” Chief Executive Doug McMillon said at a news conference in Beijing on Wednesday. “China is a top priority.”

The development plans come as the U.S. retailer seeks to stave off slower growth in China, closing some under-performing stores and giving more emphasis to the faster-growing online grocery market through its Yihaodian.com platform.

Read on.