Flagstar mortgage fraud lawsuit settled for $133 million

[Bozita]

Flagstar mortgage fraud lawsuit settled for $133 million
8:55 PM, February 24, 2012
By Katherine Yung
Free Press Business Writer

The U.S. government announced Friday that it had reached a $133-million settlement with Troy-based Flagstar Bank that resolves a civil fraud lawsuit accusing the bank of fraudulent mortgage lending practices.

The lawsuit, filed by the U.S. attorney for the Southern District of New York and the U.S. Department of Housing and Urban Development, alleged that Flagstar used unqualified employees to approve mortgage loans backed by HUD, approved mortgage loans that did not comply with HUD and Federal Housing Administration underwriting requirements, and made false certifications on mortgage loans.

“The lawsuit filed today is another stark example of how certain lenders put profit ahead of responsibility by recklessly churning out mortgage loans without regard to the risk that those loans would default or the significant consequences for the individual homeowners who would inevitably default on their loans,” Preet Bharara, U.S. attorney for the Southern District of New York, said in a statement Friday.

Flagstar’s CEO and president Joseph Campanelli said in a statement that the bank “is one of the leading originators and servicers of FHA-insured loans, and we remain committed to continuing in that capacity. This agreement with the Department of Justice allows us to move forward and to continue to focus on core operations and on serving our customers.”

more...
http://www.freep.com/article/20120224/BUSINESS06/120224054/Flagstar-mortgage-fraud-lawsuit-settled-133-million?odyssey=tab|topnews|text|FRONTPAGE

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I'm betting they profited a helluva lot more than $133 Million from their shit.

Any takers?

And good to know nobody goes to prison.

And, .... it's really good to know that they're open for your business in the morning!

Fucking Banksters!

[Mojorabbit]

1. I can't even get mad anymore. I have outrage exhaustion. nt

[IthinkThereforeIAM]

2. Of course, Mr. Campinelli is part of the 1%...

... check out his salary and compensation for 2010: $6,472,124.00

[link:http://people.forbes.com/profile/joseph-p-campanelli/73563|

[Trillo]

3. "A monetary fine" of any corporation that makes money by"creating it out of thin air" is but a joke.

For people who labor for their money, perhaps their fines should be based on their particular labor specialty. If a baker breaks the laws, perhaps demanding a loaf or two of bread as a punishment would be roughly equivalent to monetarily fining a banker. If a store clerk breaks some laws, perhaps their punishment should be some mandated smiles or "happy face".

[sarcasmo]

4. Same ole bullshit, fined 133 million and I bet they made more than a billion.

No one in jail just fines, Fucking Bankers.