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Law and legal issues

New ruling answers legacy mortgage bond servicing question

Law and legal issues, Politics and policy, RMBS, Securitization, Servicing /

The New York Supreme Court has weighed in on a contractual dilemma Wells Fargo has reportedly faced as a residential mortgage-backed securities trustee with a responsibility to oversee investor payment distributions impacted by unforeseen policy changes. A judge has ruled on how trustees and servicers should handle forborne principal from loans in the now-defunct Home […]

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Fannie Mae faces bias suit after mass firing over fraud

Fannie Mae, Law and legal issues /

Dozens of former Fannie Mae workers are suing their former employer for discrimination, after they were fired en masse in April over fraud allegations.  The 55 plaintiffs filed the suit Monday evening in the U.S. District Court for the District of Columbia. All are U.S. citizens of Indian origin from a variety of departments, and

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Wells Fargo sued for not disclosing fees during loan origination

Industry News, Law and legal issues, Originations /

A California borrower is accusing Wells Fargo of concealing for more than a decade that it improperly charged customers certain origination-related fees.  The issue surfaced in 2022 when the bank sent “cryptic notices” to borrowers stating it had incorrectly assessed float fees during the loan origination process, according to a federal lawsuit filed in California

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Freedom and Loancare settle long-running servicing dispute

Law and legal issues, Servicing /

Freedom Mortgage and Loancare say they’ve settled a long-running fight over servicing practices, two years after a jury awarded a $22 million verdict in the case.  The agreement disclosed in federal court this week will end both district court and federal appeals court cases. Freedom took the fight to the Third U.S. Circuit Court of

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Suit alleges Loandepot steered borrowers in LO comp scheme

CAREER & COMPENSATION, Law and legal issues, loanDepot /

A class action lawsuit claims Loandepot since 2019 has steered borrowers to higher rates and punished its loan officers who didn’t steer customers by giving them little to no commission.  Five borrowers filed the complaint Tuesday in a Maryland federal court, accusing the major lender and servicer of violating the Truth in Lending Act. They’re

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Trump says Fannie Mae suspects Schiff of mortgage fraud

Trump says Fannie Mae suspects Schiff of mortgage fraud

Fraud, Law and legal issues, Politics and policy /

Sen. Adam Schiff, D-Calif., called the Trump administration’s accusations of mortgage fraud regarding his Maryland property political retaliation.Al Drago/Bloomberg Fannie Mae suspects Sen. Adam Schiff, D-Calif., of mortgage fraud.  President Trump announced the government-sponsored enterprise’s findings in a Truth Social post Tuesday. The scheme allegedly involves a Maryland property Schiff has owned since at least

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Mortgage strain pushes foreclosure inquiries up

Distressed, Law and legal issues, Servicing /

Fears of falling behind on mortgage payments are driving a growing number of homeowners to seek legal help, with foreclosure concerns fueling the spike. Foreclosure-related legal inquiries rose 13.3% from the first to the second quarter of 2025, according to data from legal services provider LegalShield. Year over year, those inquiries surged 28.9% compared to

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Strict new non-compete law in Florida empowers employers

CAREER & COMPENSATION, Law and legal issues, Regulation and compliance /

Florida has enacted a new non-compete law that gives employers broad power. The Contracts Honoring Opportunity, Investment, Confidentiality and Economic Growth, or CHOICE Act, passed earlier this month, according to media reports. The bill, lobbied by hedge fund billionaire Citadel CEO Ken Griffin, allows employers to extend non-compete agreements up to four years, among other

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UWM stays undefeated against brokerages fighting ‘All-In’

Law and legal issues, Mortgage brokers /

United Wholesale Mortgage’s All-In initiative, which rocked the broker world four years ago, continues to survive legal challenges.  A Michigan federal judge last week granted partial summary judgment to UWM in its case against America’s Moneyline, a brokerage accused of violating the ultimatum. The since-defunct brokerage admitted to selling numerous loans to both UWM and

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UWM sues nearby rival Towne Mortgage for poaching

CAREER & COMPENSATION, Law and legal issues, UWM /

United Wholesale Mortgage is suing nearby rival Towne Mortgage in a rare theft of trade secrets case from the industry’s largest lender. The lawsuit filed in January accuses nine former UWM account executives of taking trade secrets, including broker partner information, to Towne. The competing retail and wholesale lender and servicer last month denied the

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