Call Today for a FREE Consultation
Ball & Bonholtzer
Se Habla Español 626-817-6453

More Enforcement Against Individuals Engaging in Misconduct and Fraud in the Mortgage Industry

Will there be an increase in lawsuits brought against individuals who worked in the mortgage industry during the housing bubble and not just against the major corporate finance and banking brands?

Financial services regulator urges more enforcement against individuals, reaffirms focus on nonbank mortgage servicers

March 21st, 2014. By BuckleySandler LLP via March 19, New York State Department of Financial Services (DFS) Superintendent Benjamin Lawsky called on banking regulators to assess whether they are doing enough, particularly with regard to enforcement, to deter or prevent financial crime. In remarks  delivered to the Exchequer Club, Mr. Lawsky asserted that true deterrence means focusing not only on corporate liability, but individual accountability. He called on banking regulators to "publicly expose - in great detail - the actual, specific misconduct that individual employees engaged in," and, where appropriate, ensure individuals face "real, serious penalties and sanctions when they break the law." Mr. Lawsky is the most recent of several regulators and policymakers to advocate for more individual accountability. Federal enforcement officials, including  CFPB Director Richard Cordray and  SEC Chair Mary Jo White, have similarly threatened an enhanced enforcement focus on individuals. Earlier this year, U.S. District Judge Jed Rakoff  wrote critically of financial fraud enforcement, and suggested "that the future deterrent value of successfully prosecuting individuals far outweighs the prophylactic benefits of imposing internal compliance measures that are often little more than window-dressing." In addition to his prepared statement on individual enforcement, Superintendent Lawsky devoted a substantial amount of his remarks and Q&A responses to his  concerns about nonbank mortgage servicers. He specifically raised concerns about nonbank servicers' staffing, especially in the context of the single point of contact requirements of the CFPB's new servicing rules and the  agreements certain servicers entered into with the DFS in 2011 and 2012. View original post here.

  • America's Top 100 Attorneys
  • Rated By SuperLawyers Stephen C. Ball 11 Years In A Row 2005-2006
  • American Board Of Trial Advocates
  • The National Top 100 Trial Lawyers Trial Lawyers
Email Us For A Response

Contact Us For The Help You Need

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy


Ball & Bonholtzer
300 North Lake Avenue Suite 1100
Pasadena, CA 91101

Phone: 626-817-6453
Fax: 626-793-3198
Pasadena Law Office Map