Daily Archives: February 14, 2017

Bank of America Scolded Over Pre-2008 Lending

CHICAGO (CN) – The Seventh Circuit issued Bank of America a stinging rebuke, finding it should not recover $893,000 from three convicted fraudsters because its own reckless mortgage lending showed deliberate indifference to the risk of losing the money.

Minoas Litos and Adrian and Daniela Tartareanu were convicted of fraud for falsifying loan applications and financing the sale of their own properties to buyers in Gary, Ind. They walked away with the purchase price of the property, minus the amount of the down payment.

As required by federal law, the fraudsters were ordered to pay restitution to their victim – Bank of America – in the amount of $893,015, on the ground that they cheated the bank by pretending that the buyers were the source of the down-payment money.

On appeal, the Seventh Circuit vacated the restitution order Friday and condemned the bank’s pre-2008 financial crash lending practices.

Read on.

It’s confirmed: CFPB doesn’t need to follow Trump’s executive order on regulations

The Office of Information and Regulatory Affairs finally put to rest questions around the requirements of independent agencies under President Donald Trump’s recent presidential memorandum and executive order.

The uncertainty surrounded the impact of the EO on the future of regulations across all industries.

Dominic Mancini, acting administrator of the OIRA, put out a memorandum giving interim guidance on implementing Trump’s executive order on Jan. 30 titled “Reducing Regulation and Controlling Regulatory Costs.”

The memorandum, which gives a list of questions and answers, includes the question, “Do Section 2’s requirements apply to significant regulatory actions of independent agencies?”

The short answer: no.

From the memorandum:

No, the requirements of Section 2 apply only to those agencies required to submit significant regulatory actions to OIRA for review under EO 12866. Nevertheless, we encourage independent regulatory agencies to identify existing regulations that, if repealed or revised, would achieve cost savings that would fully offset the costs of new significant regulatory actions.

Read on.

Quicken Loans begins long journey with DOJ over FHA violation charges

Monday marked the first of what will likely be many hearings between Quicken Loansand the Department of Justice before U.S. District Judge Mark A. Goldsmith over FHA lending violation charges.

The two parties are first meeting for a hearing on Quicken Loans’ request to have the case dismissed, but if denied, the trial will begin in April 11, 2019.

Read on.

The swamp expands: Steven Mnuchin sworn in as Treasury Secretary

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Despite all the bluster, attempted parliamentary maneuvering, and name-calling from the Democratic party, the Senate voted Monday evening to approve Steven Mnuchin to serve as the next Secretary of the Department of the Treasury.

As expected, the Senate approved Mnuchin in a partisan vote of 53-47, with one Democrat, Sen. Joe Manchin, D-West Virginia, splitting from his party and voting with the Republican majority.

Read on.