Tag Archives: DOJ

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.

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DOJ Watchdog To Review FBI Director James Comey’s Handling Of Clinton Investigation

It’s about time!

WASHINGTON ― The Justice Department’s internal watchdog will review the actions taken by FBI and DOJ officials in connection with an investigation into Hillary Clinton, Inspector General Michael E. Horowitz said Thursday.

Horowitz said the review was being conducted in response to requests from member of Congress, outside organizations and members of the public. It will review “allegations regarding certain actions” by the Department of Justice and the FBI “in advance of the 2016 election.”

FBI Director James Comey has faced extensive criticism for his handling of the Clinton matter.

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Two Ohio-based banks settle “redlining” allegations

A pair of banks based in Ohio must begin increasing mortgage lending in minority neighborhoods in certain areas of Ohio and Indiana as part of a settlement with theDepartment of Justice, which accused the banks of “redlining.”

The DOJ defines redlining as a “discriminatory practice by banks or other financial institutions of denying or avoiding providing credit services to consumers because of the racial demographics of the neighborhood in which the consumer lives.”

In this case, the DOJ accused Union Savings Bank and Guardian Savings Bank, which are based in Cincinnati and share common ownership and management, of redlining “predominantly African-American” neighborhoods in Cincinnati; Columbus, Ohio; Dayton, Ohio; and Indianapolis.

The complaint alleged that from at least 2010 through 2014, the banks extended credit to the residents of predominantly white neighborhoods to a “significantly greater extent” than they extended credit to majority African-American neighborhoods in the same cities.

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United Shore lands on DOJ hit list, will pay $48m for FHA lending violations

United Shore Financial Services will pay $48 million to settle allegations brought by the Department of Justice, which accused United Shore of violating the False Claims Act by “knowingly originating and underwriting” mortgages that did not meetFederal Housing Administration standards, the DOJ announced Wednesday.

The settlement makes United Shore just the latest in a long line of mortgage lenders that settled with the DOJ over alleged FHA lending violations.

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DOJ orders whistleblower to testify in Wells Fargo probe

The U.S. Department of Justice has subpoenaed a high-profile whistleblower in its criminal investigation into Wells Fargo & Co’s (WFC.N) opening of accounts without customer permission.

U.S. prosecutors in San Francisco have asked Wells Fargo banker Yesenia Guitron, who lost a private lawsuit against the fourth-largest lender, to testify before a grand jury in San Francisco on Tuesday, according to a subpoena dated Dec. 12, which was seen by Reuters.

A Wells Fargo spokesman declined to comment.

Guitron is among at least five Wells Fargo employees who sued the bank or filed complaints with regulators alleging that they were fired after reporting the opening of customer accounts without their permission, according to a Reuters review of lawsuits and complaints to the U.S. Labor Department.

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U.S. sues Barclays, ex-executives for mortgage securities fraud

The U.S. Department of Justice on Thursday sued Barclays Plc (>> Barclays PLC) and two former executives on civil charges of fraud in the sale of mortgage-backed securities during the run-up to the 2008-09 financial crisis.

The lawsuit was filed after Barclays resisted a penalty the U.S. government had sought in settlement negotiations, a person familiar with the matter said. The person would not disclose the government’s demand.

Major U.S. banks, including JPMorgan Chase & Co (>> JPMorgan Chase & Co.) and Bank of America Corp (>> Bank of America Corp), have paid tens of millions of dollars to settle similar claims over misconduct in the sale and pooling of mortgage securities, which helped to cause the financial crisis.

Barclays was among a handful of European banks still under investigation by the Justice Department, according to company disclosures. Deutsche Bank (>> Deutsche Bank AG) and Credit Suisse (>> Credit Suisse Group AG) are also in settlement talks, sources have said.

Barclays is accused of deceiving investors about the quality of loans underlying tens of billions of dollars of mortgage-backed securities between 2005 and 2007, according to the lawsuit filed in U.S. District Court in Brooklyn.

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JPMorgan to pay $264 million to resolve China hiring probe: SEC, DoJ

JPMorgan Chase & Co (>> JPMorgan Chase & Co.) has agreed to pay U.S. authorities $264 million to resolve allegations it hired the relatives of Chinese officials in order to win banking deals, the U.S. Securities and Exchange Commission and the Justice Department said in statements Thursday.

The SEC and Justice Department had been investigating over several years whether some of JPMorgan’s hiring efforts involved bribes, in violation of the U.S. Foreign Corrupt Practices Act.

The SEC will receive $130 million of the settlement, with $72 million going to Justice and $61.9 million to the U.S. Federal Reserve, which penalized the bank “for unsafe and unsound practices.”

JPMorgan did not admit or deny the charges. As part of its settlement with the Justice Department, a Hong Kong unit of the bank admitted to making quid pro quo hiring agreements with Chinese officials to win investment business.

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