Law Firms Investigate Sterling Bancorp’s Halt of Non-QM Program – NMP Skip to main content

Law Firms Investigate Sterling Bancorp’s Halt of Non-QM Program

Phil Hall
Dec 16, 2019
Photo credit: Getty Images/Kuzma

Eight law firms are seeking input from stockholders in Sterling Bancorp following the company’s decision to indefinitely suspend its Non-QM Advantage Loan program.
 
Eight law firms are seeking input from stockholders in Sterling Bancorp following the company’s decision to indefinitely suspend its Non-QM Advantage Loan programOn Dec. 9, Sterling Bancorp reported in a regulatory filing that its subsidiary, Sterling Bank and Trust FSB, suspended the Advantage Loan program following an audit of the documentation on past loans. The company did not say how long the program would be halted or specify if there were significant problems in the documentation, but stated that its decision was needed so “it could put in place additional systems and controls to ensure the bank’s policies and procedures are followed on loans originated under the program.”
 
Following the bank’s announcement, several law firms began to make public pleas to Sterling Bancorp stockholders for input in their respective probes on whether the company’s suspension of the program was the result of violating federal securities laws or engaging in unlawful business practices.
 
“We’re focused on recovering investors’ losses and whether Sterling concealed its systemic violation of its stated loan approval processes for the Advantage Loan Program,” said Reed Kathrein, partner at the San Francisco law firm Hagens Berman.
 
Other law firms seeking input from Sterling Bancorp stockholders are Bragar Eagel & Squire P.C., Rosen Law Firm, Robbins LLP, Glancy Prongay & Murray LLP, Law Offices of Howard G. Smith, Block & Leviton LLP and Pomerantz LLP. Sterling Bancorp did not publicly comment on the law firms’ investigations.
Published
Dec 16, 2019
MISMO Seeks Public Comment On 3 eMortgage Resources

Updates proposed to MISMO Business Glossary, eMortgage Glossary, and eModification Reference Flyer.

Regulation and Compliance
Aug 05, 2022
As Expected, The Fed Raises Rate By Another 0.75%

Experts say housing industry will shrug off the latest increase.

Regulation and Compliance
Jul 27, 2022
AmTrust Ends 'No-Poach' Agreement, Pays $1.25M Fine In Deal With N.Y. AG

Company also agrees to cooperate with ongoing investigations of the title insurance industry.

Regulation and Compliance
Jul 25, 2022
NAR Chief Economist: Nationwide Home Price Decline Won't Happen Soon

Lack of inventory continues to support growth in prices, which have increased year over year for 124 straight months.

Regulation and Compliance
Jul 22, 2022
FHFA Director: Fannie, Freddie Need $300B Combined In Capital

So far, the enterprises combined have built $83.5 billion in reserves, or about 27% of the target.

Regulation and Compliance
Jul 21, 2022
Expansion Of Community Reinvestment Act A Poor Fit For A Non-Problem

Equating non-bank mortgage companies to banks is misguided for several reasons.

Analysis and Data
Jul 20, 2022