Mortgage Probes Shift to Smaller Banks

May 27, 2014
Wall Street Journal 
mortgage lending news
After reaching billion-dollar settlements with large banks such as JPMorgan Chase and Bank of America, U.S. housing officials are focusing on smaller lenders and servicers. Government agencies are specifically looking at whether several lenders submitted to the Federal Housing Administration (FHA) loans that fell short of underwriting standards.

The probes are part of ongoing civil probes detailed in banks' public filings. In recent months, mid-size players such as Fifth Third Bancorp and SunTrust Banks have disclosed federal investigations related to the origination and servicing of home loans. Banks such as U.S. Bancorp and Capital One Financial Corp. also have disclosed details of queries related to practices that include mortgage servicing and loan securitization.

The examinations illustrate how banks of all sizes are coming under increased scrutiny for their behavior during the housing bubble and the financial crisis. Recouping money from more lenders could help stabilize the FHA's finances. The probes involve officials at the Department of Housing and Urban Development (HUD), the department's inspector-general office, and the Justice Department.

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.