Tag Archives: hud

DOJ Ignores Kickbacks to Banks from Mortgage Insurers

More Proof of DoJ Lack of Interest in Enforcing the Law: The Case of the Kickback-Demanding Banks

By Yves Smith
Naked Capitalism

In this world of rampant banking miscreance, it may seem hard to get worked up about $6 billion in impermissible kickbacks. But this is a case of a clear-cut legal violation, with the particulars sent to the Department of Justice by the HUD Inspector General’s office on a silver platter. And one of the alleged big bad actors was the ever-sanctimonious Wells Fargo.

American Banker has a detailed write-up of a kickback scheme between major banks who were mortgage originators, in particular Wells, Citigroup, Countrywide, and SunTrust and mortgage insurers.

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Corrupt Obama Admin Pressures NY Attorney General to Support Mortgage Whitewash

By Yves Smith
Naked Capitalism

It is high time to describe the Obama Administration by its proper name: corrupt.  The latest example is its heavy-handed campaign to convert New York state attorney general Eric Schneiderman to a card carrying member of the “be nice to our lords and masters the banksters” club.

[Image: Kathryn S. Wylde, New York Federal Reserve Board Member]

(Also see today’s TRNN interview of Yves Smith, “Should banks be a public utility?“)

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