Bank of America Papers Show Conflict and Trickery in Mortgages

by The Compliance Exchange on August 22, 2014

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A founder of Countrywide Financial warned three years before the housing market collapsed that his company could face “financial and reputational catastrophe” if it continued holding certain risky mortgages on its balance sheet. Still, Countrywide continued to sell these loans to investors.

Bank of America refinanced a $156,491 Countrywide loan for a 24-year-old mobile home into a government-backed mortgage. The borrower, who also managed
to roll credit-card debt into the
loan, was behind on his payments at the time of the refinancing.

And a Merrill Lynch consultant vented in … Read More »

CFPB fines auto company $2.75 million for distorting credit reports

by The Compliance Exchange on August 22, 2014

It’s every consumer’s worst credit score nightmare — a lender dinging their score repeatedly by sending wrong, negative information to the credit bureaus for years.

On Wednesday, the Consumer Financial Protection Bureau said a … Read More »

BofA Grabs $12 Billion Tax Write-Off From $17 Billion Mortgage Settlement

by The Compliance Exchange on August 22, 2014

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If you get stuck paying out huge amounts to anyone, you want to ease the burden by writing it off. Bank of America may be smarting over the historic $17 billion legal settlement it reached over soured mortgage securities Still, it should be mollified that it’s getting a hefty tax … Read More »

Federal prosecutors probe GM’s lawyers over possible recall delay

by The Compliance Exchange on August 22, 2014

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Suspicion that legal department hid evidence from regulators about faulty ignition switch.

Federal prosecutors are looking into suspicions that members of General Motors Corp’s legal department hid evidence regarding faulty ignition switches from regulators, the Wall Street Journal reported Friday.

The investigation is a blow to GM’s hopes to draw a line … Read More »

Regulators Struggle With Conflicts in Credit Ratings and Audits

by The Compliance Exchange on August 22, 2014

Few businesses have more obvious conflicts of interest than those that involve the issuing of “objective” and “independent” reports and opinions about companies that pay for those reports and opinions.

If the opinions are to … Read More »

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