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Justice Department sues leading mortgage company

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Mortgage Professional America | 20 May 2016, 06:30 AM Agree 0
The government has filed suit against one of the nation’s leading privately held mortgage companies, alleging that it improperly underwrote FHA-insured mortgages. But the company is firing back
  • Tim | | 20 May 2016, 12:24 PM Agree 1
    How about going after these sleazy lenders who charge much higher than market rates to mainly minorities on Gov't mortgages to cover the cost of these so called legal kick backs in the form of marketing agreements. Our industry continues this unethical way of doing business. The argument that it is legal is total nonsense- everyone knows it but it continues.
  • Dpinh | | 20 May 2016, 01:48 PM Agree 0
    Couldn't agree with you more. I originate mortgages in a predominately farm labor county with a population of @ 450K. We have a lender who has pretty much bought all the big real estate companies and local builders. One of the mortgage officers in that group openly brags, "My rates are higher, but I still get the business". I know they have been reported multiple times, but nothing seems to be done about it. When you read the foreclosure notices in our local newspaper, 90% have Hispanic surnames.
  • 35 year mortgage veteran | | 20 May 2016, 03:45 PM Agree 0
    what a joke. another case of the government trying to extract another pound of flesh for its poorly implemented and monitored fha program. lack of guidance and improper automated underwriting logic has caused these issues. this will only serve to increase fees to all buyers and cause lenders to go out of business or quit fha financing. government is out of control, irresponsible and inept.
  • | | 23 May 2016, 09:34 AM Agree 0
    Due to automated underwriting these things happen. Good for you gov't for going after any sleezy lender that may take advantage of it. The option to do nothing, is not an option and could ultimately tank the market AGAIN with high foreclosure futures. I don't see this as hurting the little guy if the data was manipulated & an unqualified or undocumented 'buyers' were approved. I see it one of protection since all of us must deal with many of the resulting forebearances, slower recovering economy and individual/investor purchases of properties in neighborhoods well below market value and resulting tenancy or under market buyer.
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