One Bank’s $4 Billion Litigation Loss Cuts All Banks’ Third Quarter Earnings. Can You Say JPMorgan Chase?

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $36.0 billion in the third quarter of 2013. That’s a lot of money, but it also is a $1.5 billion (3.9 percent) decline from the $37.5 billion in profits that the...

Bank of America Settles Remaining Mortgage Repurchase Claims with Freddie Mac for $404 Million

Bank of America has reached an agreement with the Federal Home Loan Mortgage Corporation (Freddie Mac) to resolve all remaining representations and warranties claims for residential mortgage loans sold to Freddie Mac through the end of 2009. Under terms of the agreement, Bank of America will pay Freddie...

Credit Suisse Sued Over Sale of More than $10 Billion in Mortgage Backed Securities

The State of New Jersey has filed a lawsuit against Credit Suisse Securities (USA) LLC and two of its affiliates alleging that they offered more than $10 billion in residential mortgage backed securities trusts for sale while misrepresenting the risks involved in the investments and failing to disclose...

If You Thought that JPMorgan Chase Was Finished Settling, Think Again. Now, It Pays $614 Million to Resolve More Mortgage Loan Charges

JPMorgan Chase has reached yet another settlement with federal prosecutors. Now, it will pay $614 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans submitted for insurance coverage and guarantees by the Department...

Nevada Reaches Its Own Settlement Over Alleged “Robosigning" Mortgage Charges

Nevada has reached a settlement with Lender Processing Services, Inc. (“LPS”), now known as Black Knight Financial Services, over allegations of the alleged “robosigning” of mortgage documents. The settlement resolves the state’s civil action alleging that LPS violated the...