Here we go again…
Citibank will pay out a fine of $25 million for violating the Fair Housing Act, the Office of the Comptroller of the Currency announced Tuesday.
According to the OCC, an investigation showed that Citibank did not equally offer certain mortgage discounts to all Citi customers, thereby “adversely” affecting some customers based on their “race, color, national origin, or sex.”
The OCC stated that Citibank had “certain control weaknesses” in a lending program called “Relationship Loan Pricing,” which offered mortgage discounts to Citi customers.
In the program, Citi customers could receive a credit to their closing costs or an interest rate reduction if they used Citi as their lender. The program was piloted in August 2011 and rolled out widely in February 2012.
Wells Fargo WFC, +0.54% Chief Executive Timothy Sloan received total compensation of $18.4 million in 2018, according to the bank’s proxy statement released Wednesday, an increase of $1 million. Though his performance share award was $1 million less, he received a $2 million annual incentive due to what the bank called his “continued leadership on the Company’s top priority of rebuilding trust, and his performance against his 2018 individual qualitative performance objectives.”
Wells Fargo CEO Tim Sloan appeared before the House Financial Services Committee on Tuesday to address questions regarding the bank’s overhaul after a series of scandals rocked the big bank in recent years.
In a tense four-hour hearing, Sloan was grilled about the steps he has taken during his two-year tenure as CEO to improve the bank’s culture, enhance its cybersecurity measures and pay restitution to the millions of customers it has wronged since numerous misdeeds were brought to light.
United States District Court Judge Beth Labson Freeman granted class action status to a lawsuit where a loan officer is seeking backpay from Wells Fargo. (Ruling found here.)
Plaintiff James Kang worked as an home mortgage consultant in Wells Fargo’s Palo Alto, California, branch from October 2000 through May 2015, with a short break in employment in 2011.
According to his lawsuit, LOs at Wells Fargo are paid advances on commissions at a rate of approximately $12 per hour, but those advances are “clawed back” from commissions earned. Kang said this violates labor laws. He also claims that Wells Fargo does not pay for pre-approved time off, as advertised, and doesn’t pay LOs to attend meetings and training seminars.
“Kang asserts claims on behalf of himself and other California-based HMCs for: (1) failure to pay minimum wages; (2) failure to pay overtime wages; (3) failure to pay vacation time; (4) failure to pay all wages owed every pay period; (5) failure to pay all wages due at separation; and (6) violation of California’s Unfair Competition Act.”
Profits and payouts surge, but it’s a mixed picture for staff
The ‘full economic impact will take many years to observe’
By year-end, most of the nation’s largest lenders met or exceeded their initial predictions for tax savings. On average, the banks saw their effective tax rates fall below 19 percent from the roughly 28 percent they paid in 2016. And while the breaks set off a gusher of payouts to shareholders, firms cut thousands of jobs and saw their lending growth slow.
WASHINGTON (Reuters) – A top U.S. bank regulator has decided not to fine Citigroup for discriminating against minority mortgage borrowers, dropping the public rebuke that some officials had sought, two people familiar with the matter told Reuters.
The decision is sure to be watched by consumer advocates who have questioned whether the Office of the Comptroller of the Currency (OCC) will enforce fair lending rules under the leadership of Joseph Otting, an appointee of President Donald Trump and former banker who has pledged to be friendlier to the industry.
This is certainly missed in the media…
THE CONSUMER FINANCIAL PROTECTION BUREAU penalized a man $1 this week, for illegally exchanging veterans’ pensions for high-interest “cash advances.” Mark Corbett claimed in sworn statements to the bureau that he had an inability to pay any fine of greater value, and the bureau accepted $1 as payment for making illegal, high-cost loans to former members of the armed forces.
Somehow, two other state regulatory agencies, in Arkansas and South Carolina, assisted in the extraction of a single dollar bill from Corbett.
This is not the first time during the Trump administration that CFPB has taken an inability to pay into account to reduce a fine for violations of consumer protection law. Under the previous acting director, current acting White House chief of staff Mick Mulvaney, this type of reduction was so widespread that it came to be known as the “Mulvaney discount.” The American justice system rarely treats impoverished defendants with such mercy.
Original mortgage documents found on separate exposed server
The massive data breach involving more than 24 million mortgage and banking documents just got much, much worse as an investigation unearthed a separate unprotected server that provided access to some of the original documents to anyone who happened upon it online.
The details of the expanded breach come again from TechCrunch, which has done yeoman’s work on exposing this incredible breach in mortgage and banking security.
In the original breach, digital files were located on an unprotected server that contained the information from 24 million mortgage and banking documents, but the data was scraped from the original documents using OCR, a computer process that converts paper documents into electronic documents.
The original mortgage documents were converted into digital files that were not easily readable, but people’s highly sensitive personal information, including names, addresses, dates of birth, Social Security numbers, and other information was accessible in the database for at least two weeks.
Here we go again..
Employee says she was fired after spotting falsified borrower info and other violations
Lennar subsidiary Eagle Home Mortgage is in hot water yet again.
Just a month after settling charges with the Department of Justice for failing to comply with FHA lending standards, a new lawsuit brings the lender back into the crosshairs of justice.
According to a lawsuit filed in November, Eagle Home Mortgage falsified borrower documents to increase the likelihood of approval, approved borrowers who were unqualified, and hid negative findings on audited loans from regulators.
But Eagle is apparently still desirable, despite the pending lawsuit. On Wednesday, HousingWire reported that Movement Mortgage is buying Eagle’s retail operations from Lennar, although it should be noted that the lawsuit in question deals with the in-house builder mortgage division of Eagle Home, which is remaining part of Lennar. Movement Mortgage is only buying Eagle Home’s retail operations, which are not part of the lawsuit.
Eric Kandell is making his pitch to veterans. Wearing a red T-shirt, with the words “Low VA Rates” emblazoned across his chest, he looks fit and muscular, as if he had stepped off an Army base himself. In this YouTube video and others, he tells current and former service members how they can take tens of thousands of dollars in cash out of their homes. They can pay off credit cards, remodel a kitchen, install a swimming pool, or travel to Las Vegas. “Do whatever you want,” he tells them. “Imagine your home is like an ATM.”
Kandell is targeting borrowers from the U.S. Department of Veterans Affairs mortgage program. He’s the 43-year-old president of a company whose very name is a come-on: Low VA Rates LLC. It’s among the lesser-known financial outfits dominating the business of selling cash-out VA mortgage refinancing, which totaled $41 billion worth of new loans over the past year.