NEW YORK - (09/27/04) -- In a major blow to the mortgageindustry, a federal appeals court ruled Friday that many of the fatfees lenders earn during the settlement process may amount toillegal mark-ups if the lender performs no significant service toearn the additional fees. The ruling found that Wells FargoMortgage Corp., one of the largest mortgage lenders in the country,marked up fees charged to borrowers from third-party vendorswithout adding any additional value or service of their own. Aclass action suit claims that Wells contracted for loan originationservices from third-party vendors at a cost of $20 to $50, thencharged its borrowers $150 to $300 for the same documents. The suitalso challenged fees charged to use of Fannie Mae's and FreddieMac's automated underwriting systems, which cost Wells $20 perapplication, but for which Wells charged the borrowers as much as$300. The ruling comes several months after Congress shot down abid by the Department of Housing and Urban Development to reformthe settlement process and reign in settlement costs, under whichborrowers are charged thousands of dollars for property and floodzone appraisals, title work, document preparation, credit reportfees, and underwriting.
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Liberty Bank in Salt Lake City had been "structurally unprofitable" since 2008, according to its regulators. Experts criticized the FDIC for allowing the bank's demise to play out in slow motion.
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The New York-based bank says it will push its concentration of commercial real estate loans below 400% of risk-based capital over the next two years and focus more on C&I.
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The San Francisco-based firm's Anchorage Digital Trusted Liquidity and Settlement network, better known as Atlas, will allow clients to settle a range of cryptocurrency transactions.
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Consumer spending slowed and charge-offs rose during the first quarter, but Bread Financial said a pending late-fee rule may not be as devastating to its revenue as the Columbus, Ohio-based firm initially feared.
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Artificial intelligence models are energy hogs. Climate First Bank and UBS are among the very few trying to solve this problem.
April 25 -
The FDIC board debated and ultimately withdrew two separate proposals to address asset managers' control over banks, but acting Comptroller of the Currency Michael Hsu said he couldn't support either and called for more research and debate about how asset managers' control over banks impacts safety and soundness.
April 25