California Real Estate Fraud Report

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Archive for the 'CFPB' Category

Appellate Court Dismisses Morgan Drexen’s Constitutional Challenge to CFPB’s Authority

May 5th, 2015 at 8:15am

In an important victory for consumers across the nation, the U.S. Court of Appeals for the District of Columbia Circuit has dismissed a constitutional challenge to the Consumer Financial Protection Bureau (CFPB) filed by Costa Mesa-based Morgan Drexen Integrated Systems. The CFPB had filed a lawsuit against Morgan Drexen in federal court in 2013.

In a 2-1 vote, the judges rejected the claims of Morgan Drexen and its contracted Connecticut-based attorney Kimberly Pisinski,  that the CFPB violates the U.S. Constitution’s separation of powers because it is not subject to Congressional oversight. The panel rules that Morgan Drexen did not have legal grounds to bring litigation.

Morgan Drexen, whose website states it “develops and delivers efficient legal support services to America’s Law Firms,” was the target of an enforcement action in 2013 by the CFPB after the CFPB accused it of charge advance fees for debt relief (illegal) and demand it turn over thousands of documents related to Pisinski’s bankruptcy clients. In its fight against the action, Morgan Drexen and Pisinsky said the documents were protected by attorney-client privilege and that the CFPB was essentially on hunting mission to “data mine” the “confidential financial information of distressed consumers.”

Click here for a copy of the U.S. Court of Appeals for the District of Columbia Circuit ruling.

According to an article in the OC Register, Morgan Drexen has ironically now filed for Chapter 7 bankruptcy protection.

Read the original article in DSNews.

 

CFPB and Maryland Attorney General suing banks and others for RESPA anti-kickback violations

May 1st, 2015 at 11:32am

The Consumer Financial Protection Bureau (CFPB) and the Maryland Attorney General have filed complaints accusing six individuals of taking illegal mortgage kickback scheme with banks such as Wells Fargo and JPMorgan Chase. They are charged of receiving cash and marketing services in exchange for giving mortgage loan referrals to the banks.

The CFPB named the individuals as follows: Jay Zukerberg and Brandon Glickstein, the owner and marketing director respectively of defunct Genuine TitleGary Klopp, Adam Mandelberg,  and Angela Pobletts (all loan officers); and William Peterson, the president of a mortgage brokerage. Genuine Title is accused of paying the loan officers by running the kickbacks through limited liability companies.

“Paying kickbacks for mortgage referrals is illegal, and it has been illegal for decades,” said CFPB Director Richard Cordray in a press release. “Secret and unlawful payments keep consumers in the dark and put honest businesses at a disadvantage, and the consumer bureau will continue to take action against them.”

Click on the Real Estate Settlement Practices Act (RESPA) to learn about its anti-kickback provisions.

Read the original article in National Mortgage News.

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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