Wells Fargo To Pay $1.2 Billion To Settle Govt. Lawsuit Over “Reckless” Mortgages

Wells Fargo To Pay $1.2 Billion To Settle Govt. Lawsuit Over “Reckless” Mortgages

In Oct. 2012, the U.S. Department of Justice sued Wells Fargo, alleging that the mega-bank had defrauded taxpayers by issuing “reckless” mortgages then misleading the Federal Housing Administration about the quality of those loans. Today, Wells revealed that has agreed to pay $1.2 billion to close the book on this issue. [More]

Wells Fargo To Pay $81.6M To Homeowners In Bankruptcy For Failure To Provide Payment Notices

Wells Fargo To Pay $81.6M To Homeowners In Bankruptcy For Failure To Provide Payment Notices

Wells Fargo has agreed to pay $81.6 million in relief to homeowners after the bank repeatedly failed to provide them with proper legal notices during bankruptcy proceedings.
[More]

NJ-Based Bank Must Pay $33M To Settle Discriminatory Lending Charges

NJ-Based Bank Must Pay $33M To Settle Discriminatory Lending Charges

“Redlining” is the act of denying services, either directly or through selectively raising prices, to residents of a certain area based on race or ethnicity. Federal law prohibits creditors from this type of discrimination, but New Jersey-based Hudson City Savings Bank is now on the hook for a total of nearly $33 million for allegedly providing unequal access to credit in parts of four states. [More]

(The.Comedian)

Auto Loan Debt Tops $1 Trillion For First Time; All Consumer Debt Nearing $12 Trillion

Now that the Great Recession has gone from “is it really over?” to “remember when?” more Americans are buying cars, pushing auto loan debt beyond the $1 trillion mark for the first time in U.S. history. [More]

Electronic Mortgage Documents Easier To Understand, Provide More Benefits For Consumers

Electronic Mortgage Documents Easier To Understand, Provide More Benefits For Consumers

If you’ve ever bought a house, you’re more than familiar with the mountain of paperwork you have to deal with at closing, not all of which are easy to understand.  But a study claims that homeowners who utilize a newer electronic method for reviewing closing documents may better comprehend what they’re signing. [More]

(jetsetpress)

Mortgage Servicer To Pay Back $1.5M To Screwed-Over Homeowners

Residential Credit Solutions is a mortgage servicer specializing in delinquent loans and “credit-sensitive” (read: high-risk for default) residential mortgages. But after allegedly screwing over homeowners by, among other things, not honoring loan modifications on mortgages transferred from other servicers, RCS is on the hook to pay $1.5 million in restitution and a $100,000 penalty to federal regulators. [More]

Nearly 80% Of Americans Hold Some Form Of Debt, But It Isn’t Always Bad

Nearly 80% Of Americans Hold Some Form Of Debt, But It Isn’t Always Bad

When most people think of debt, they probably conjure up a vision of consumers struggling to make ends meet after making unwise financial decisions. But that actually isn’t the case for most Americans. In fact, like other things, debt in moderation is actually a good thing. [More]

Western Union-Owned Mortgage Company Must Return $33.4M To Customers

Western Union-Owned Mortgage Company Must Return $33.4M To Customers

A mortgage payment company owned by Western Union has agreed to return $33.4 million to consumers following allegations that it misled customers into thinking they could save thousands of dollars on their home loans. [More]

Bank Of America, Wells Fargo Top List Of Most Complained About Mortgage Issuers

Bank Of America, Wells Fargo Top List Of Most Complained About Mortgage Issuers

For the past four years, the Consumer Financial Protection Bureau’s Consumer Complaint Database has seen its fair share of consumer issues related to mortgages. In fact, complaints regarding loan modification, collection, foreclosure, loan servicing, payments and escrow accounts continue to be one of the biggest financial thorns in consumers’ sides. And the worst offender? Bank of America. [More]

CFPB Proposes Delay Of New Mortgage Rules By Two Months

CFPB Proposes Delay Of New Mortgage Rules By Two Months

Prospective homebuyers anticipating a more streamlined disclosure process while buying their dream home may have to wait a little longer, as the Consumer Financial Protection Bureau is proposing a delay to new rules. [More]

Discover Financial Ditching Home-Lending Business

Discover Financial Ditching Home-Lending Business

Just three years after getting into the mortgage origination business, Discover Financial Services plans to shutter its home lending operations. [More]

(Scott Cimakosky)

Abusive Lending Practices Can Lead To Negative Long-Term Consequences For Borrowers, Communities

Every year, more than 12 million Americans spend $17 billion on payday loans, despite the fact research has shown these costly lines of credit often leave borrowers worse off. Yet abusive lending practices are not relegated to borrowers in need of a couple hundred dollars to stay afloat until their next paycheck; there are mortgages, car loans, and other traditional lines of credit that can leave the borrower in a bind. Even if you never find yourself on the wrong end of a predatory loan, these products can still be a drain on your entire community. [More]

CFPB Fines Mortgage Company $20M For Pushing Customers Into Spending More Than They Had To

CFPB Fines Mortgage Company $20M For Pushing Customers Into Spending More Than They Had To

While a report earlier this year suggested that consumers don’t spend nearly enough time shopping for the right mortgage, that doesn’t mean lenders are off the hook for purposefully steering potential homeowners into costlier mortgages. Because doing so will land a company in hot water with federal regulators. Just ask RPM Mortgage and its top executive, who must now pay $20 million for their allegedly deceptive practices. [More]

(Mike Mozart)

Wells Fargo Breached 2010 Mortgage Settlement, Must Work To Provide Homeowner Assistance

Some homeowners who were wrongly denied mortgage assistance from Wells Fargo will soon receive the help they needed years ago after a federal judge ruled this week that the bank’s denial of modifications were in breach of a 2010 settlement involving adjustable-payment mortgages. [More]

The CFPB's electronic version of its Know Before You Owe Mortgage Toolkit includes interactive forms to help consumer find the right mortgage for them.  [Click to Enlarge]

CFPB Releases Mortgage Toolkit Aimed At Making The Home Buying Process Easier

In January, the Consumer Financial Protection Bureau released a report suggesting that many homebuyers spend more time looking for a TV than shopping around for the right mortgage. In an attempt to make things a little less daunting for prospective borrowers, the Bureau today released the “Know Before You Owe” mortgage shopping toolkit. [More]

(Adam Fagen)

CFPB Returned $19.4M To 92,000 Consumers In The Last Half Of 2014

Each year the Consumer Financial Protection Bureau supervisory examiners hold hundreds of companies accountable for violations of fair lending and debt collection rules. During the last half of 2014, those actions resulted in the return of $19.4 million to more than 92,000 consumers, according to a new report from the agency. [More]

(frankieleon)

Woman Wants To Back Out Of Buying House Saddled With $400K Debt, Blaming Winning Bid On Diet Pills

Feeling like maybe you shouldn’t have splurged on that shirt when you’ve already got a bunch like it already in your closet is one thing, but deciding you’d rather not own a home you purchased is an entirely other category of buyer’s remorse. A Florida woman is blaming her winning bid on a home that comes with a $400,000 debt on it on diet pills, saying they caused her to become confused. [More]