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Law and legal issues

Judge OKs Wells Fargo’s $100 million mortgage borrower fund

Law and legal issues, Originations, Racial bias, Regulation and compliance /

Wells Fargo will fund a new $100 million mortgage borrower assistance fund, following a federal judge’s final approval of a large settlement agreement.  Processing Content U.S. District Judge Trina Thompson OK’ed the terms last week, which resolved some longstanding claims regarding the bank’s alleged discriminatory hiring and lending practices. The agreement also includes a $10 […]

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Two Harbors investor seeking to halt CrossCountry vote

Law and legal issues, M&A /

A Two Harbors shareholder will have a last-minute shot at halting a vote next week on the company’s pending merger with CrossCountry Mortgage. Processing Content A federal court will hold a hearing Monday morning to weigh a temporary restraining order on the vote, 24 hours before the company’s special meeting Tuesday. The servicer’s board of

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Rocket sues UWM for $100 million in Mr. Cooper MSR fight

Law and legal issues, Servicing /

Rocket Mortgage is suing United Wholesale Mortgage for $100 million in damages, over the rival’s alleged refinancing of loans it sold to Mr. Cooper.  Processing Content The breach of contract complaint filed Thursday in a New York state court is the first lawsuit between the industry leaders. Rocket points to past promotions and comments by

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Freedom Mortgage settles FLSA suit with call center workers

CAREER & COMPENSATION, Law and legal issues /

Freedom Mortgage has agreed to pay a $750,000 settlement to resolve a Fair Labor Standards Act complaint from a class of over 900 employees.  Processing Content A federal judge last month granted preliminary approval to the agreement between the large lender and servicer and remote call center employees. The lawsuit filed last March claims that

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FTC warns Mortgage Connect over noncompete agreements

FTC, Industry News, Law and legal issues, Regulation and compliance /

The chairman of the Federal Trade Commission sent a warning letter Friday to national mortgage services provider Mortgage Connect over employee contracts. Processing Content Andrew Ferguson, who has served as the agency’s commissioner since April 2024, urged the company to review its employment contracts, including any noncompete agreements or other restrictive covenants, to ensure they

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Title agent accused of rebranding to evade fraud penalty

First American Financial Corp., Industry News, Law and legal issues, Title insurance /

First American Title Insurance Co. is suing a former agent to recover sums owed after her firm erroneously wired funds, claiming she changed her business’ name to evade more than $600,000 in penalties. Processing Content In a lawsuit filed in Eastern District Court of New York, First American accused Patricia Stein-Oliva, principal of Consumer Direct

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New Cantero escrow ruling backs preemption in split decision

New Cantero escrow ruling backs preemption in split decision

Law and legal issues, Servicing /

The latest decision in the closely watched Cantero v. Bank of America case related to preemption of New York escrow rules supports the institution, but it’s unlikely to be the final say. Processing Content The ruling on remand in the U.S. Court of Appeals for the Second Circuit found that preemption should prevail because state

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Lenders are taking more repurchase demands to court

Lenders are taking more repurchase demands to court

Capital markets, Law and legal issues, Mortgages, Originations /

More mortgage firms are suing their counterparties over buyback demands. Processing Content In the past six months, several lenders and servicers have sued origination partners over repurchases, for funds experts say they may never recoup. Although the latest federal complaints are small in number, they’re ticking up again after a small wave of the complaints

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Impac describes its debt, downfall in bankruptcy filing

Bankruptcy, Earnings, Law and legal issues /

Impac Mortgage Holdings’ bankruptcy seemed decades in the making.  Processing Content The company filed for Chapter 11 bankruptcy protection Sunday, after years of struggles exacerbated by rising interest rates earlier this decade. In a series of federal court filings this week, the former lender and servicer described its debts, and the numerous factors that led

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Appraisal firm sues rival for using AI to replicate its tech

Appraisals, Law and legal issues, Mortgage technology /

An appraisal technology firm is suing a startup founder, claiming the nascent rival used commercially available artificial intelligence tools to recreate its products.  Processing Content True Footage sued Automax AI and founder Humza Ahmed last week for fraud, among other counts, in a California federal court, looking to stop the startup from profiting off their

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