Tag Archives: Settlements

The investment banking firm's Q4 and full year 2015 earnings took a big hit as a result of the $5 billion residential mortgage-backed securities settlement announced last week.

Out of 18 firms sued by the FHFA in 2011 over RMBS fraud, RBS is the only one not to have resolved their case through either settlement or trial.

The investment banking firm reached an agreement in principle to settle claims that it sold faulty mortgage-backed securities before the crisis.

The NCUA said it plans to continue to pursue litigation in federal courts against financial institutions based on the sale of faulty RMBS that caused five corporate credit unions to collapse.

Investors claim that JPMorgan Chase misled them as to the quality of the loans underwriting $10 billion worth of residential mortgage-backed securities, according to Bloomberg; the bank denies any wrongdoing.

The Department's complaint, which originated from a referral by the Federal Deposit Insurance Corp., says that from January 2011 through May 2014, Sage Bank originated mortgage loans to about 550 African-American and Hispanic borrowers.

The class action suits claim the insurance policies were automatically issued to homeowners at rates approved by lenders, which were much higher than market rates. Homeowners claim they did not have a choice in the matter, hence the term “forced placed insurance.”

According to the bank’s quarterly filing with the Securities and Exchange Commission, the bank has agreed to pay $335 million to settle a federal lawsuit that claims the bank misled shareholders as to the quality of certain mortgage-backed securities sold to investors immediately following the crisis.

Ocwen Financial Corporation failed four metrics and was deemed to have failed seven others in an independent settlement monitor’s review of the servicer’s entire residential mortgage loan portfolio covering the second half of 2014, according to the monitor’s report filed with the U.S. Court for the District of Columbia on Thursday.

NCUA sued Wachovia, which was acquired by Wells Fargo in 2008, in 2011. The Association filed suit against Barclays, the U.S. subsidiary of the British financial services firm, in 2012. Once the settlements are completed, NCUA will dismiss pending suits against both firms in federal district courts in California, New York and Kansas. As part of the settlement, neither Wachovia nor Barclays do not admit any fault.