Continental Mortgage Bankers Settles Federal Charges – NMP Skip to main content

Continental Mortgage Bankers Settles Federal Charges

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. 

About the author
Published
Mar 17, 2016
MISMO Updates Business Glossary To Support AI, eMortgages

New definitions covering eHELOCs, remote online notarization, valuation modernization, and compliance initiatives aim to improve consistency

MISMO Launches AI Governance Framework For Mortgage Lenders

New FRAME toolkit gives lenders, servicers, and technology providers a roadmap for managing AI risk while supporting innovation

CFPB Tells Lenders Immigration Status Can Factor Into ATR Analysis

CFPB frames immigration status as a potential ability-to-repay factor when future U.S.-based income is at risk

UAD 3.6 Deadline Nears; First American Earns Verification

First American's ACI Sky Workbench gains verification ahead of the Nov. 2 implementation date for the GSEs' updated appraisal reporting requirements

MISMO Introduces New Loan Boarding Standard

Wrapper Files support standardized data transfers between origination and servicing systems, with potential savings of $60 to $160 per loan

The GLBA Compliance Gap Your AI Deployment Just Opened

Old statutes, new models, and the vendor contract you signed before machine learning became operational