A staggering amount of financial malfeasance has taken place since the global financial collapse of 2008. The Consumer Financial Protection Bureau has been tracking illegal and unethical mortgage lending practices since the Dodd-Franks Act was enacted, and has found a deeply disturbing amount of illegal behavior directed at American consumers is deeply disturbing.
In addition to citing financial companies for banking and credit card fraud, the CFPB has identified and stopped deceptive or illegal mortgage practices. Some of these practices include discrimination like redlining, where prospective homeowners in primarily African-American or Hispanic neighborhoods are denied mortgages, or where people of color are steered toward mortgages with higher fees and rates compared to white borrowers with similar credit and financial histories.
A fact sheet from the CFPB in July 2016 listed some of the enforcement and supervision actions against financial institutions for illegal mortgage practices. CFPB has cited and fined Sun Trust, Flagstar Bank, Green Tree Servicing, Residential Credit Solutions, Ocwen Financial, PNC Bank, Hudson City Savings Bank, BankCorp South, Amerisave Mortgage, JP Morgan, and Wells Fargo, among others.
For more information on consumer problems, please contact us.