Skip to main content

Continental Mortgage Bankers Settles Federal Charges

Phil Hall
Mar 17, 2016
It’s a case that seems all too reminiscent of the abuses that were commonplace in the days before the 2008 crash

The federal government has announced the resolution of charges brought against Westbury, N.Y.-based Continental Mortgage Bankers and its president, Walter Stashin.

The charges—which were levied by the U.S. Departments of Justice (DOJ) and Housing & Urban Development (HUD), and the Federal Deposit Insurance Corporation (FDIC)—claimed that the company and its president funneled payments on at least eight insured by the Federal Housing Administration (FHA) into a “purported charitable organization, the Rainy Day Foundation, in order to avoid defaults and delinquencies that could trigger governmental investigation.” The government claimed that these payments “artificially suppressed Continental’s comparative delinquency and default rates, as compiled and computed by the FHA.”

Under the terms of the settlement, Continental and Stashin acknowledged what transpired and agreed to pay $300,000 to settle the case.

“The resolution of this matter, including the defendants’ admissions to wrongdoing, both help to restore the integrity of the FHA mortgage insurance program as well as to serve as a warning to others who would abuse federal mortgage programs,” said United States Attorney Robert L. Capers. 

Published
Mar 17, 2016
CFPB Reports Trends In Financial Assistance

The latest developments from this study reveal that most consumers have exited the payment assistance they received at the start of the pandemic.

Analysis and Data
Jul 14, 2021
CFPB Orders GreenSky To Refund $9M In Unauthorized Loans

The consent order requires GreenSky to refund or cancel up to $9 million in loans for the customers harmed by this illegal conduct.

Regulation and Compliance
Jul 13, 2021
CFPB Warns Landlords And Consumer Reporting Agencies To Report Accurate Rental Information

Inaccurate rental or eviction information can unfairly block families and individuals from safe, affordable housing.

Regulation and Compliance
Jul 01, 2021
FHFA Mandates Quarterly Fair Lending Reports

FHFA issued orders for all enterprises to submit quarterly Fair Lending Reports with data and information to improve the FHFA’s capabilities. 

Regulation and Compliance
Jul 01, 2021
FHFA Follows CFPB To Protect Borrowers Once COVID-19 Foreclosure And Eviction Moratoriums End

The Federal Housing Finance Agency made it clear that Fannie Mae and Freddie Mac servicers are not permitted to make first notice or filing for foreclosure that would be prohibited by the CFPB protections for borrowers affected by COVID-19.

Regulation and Compliance
Jun 30, 2021
CFPB Finds Evidence Of Redlining And Deceptive Acts In 2020

Enforcement actions resulted in more than $124 million in consumer remediation and civil money penalties in 2020

Regulation and Compliance
Jun 29, 2021