1 00:00:00,040 --> 00:00:02,320 Speaker 1: Well, now it's time for our daily Bloomberg Law Brief, 2 00:00:02,360 --> 00:00:05,160 Speaker 1: exploring legal issues in the news and today, Bloomberg LA 3 00:00:05,240 --> 00:00:08,280 Speaker 1: host Jun Grosso and Michael Best discuss a lawsuit against 4 00:00:08,560 --> 00:00:12,760 Speaker 1: mortgage giant Ackwin for improper handling of mortgages bought from 5 00:00:12,760 --> 00:00:14,480 Speaker 1: banks in the fall out of two thousand and eight 6 00:00:14,480 --> 00:00:17,760 Speaker 1: financial crisis. They speak with Robert Hawkeett, a professor at 7 00:00:17,800 --> 00:00:21,599 Speaker 1: Cornell University Law School. Bob, you know, this isn't the 8 00:00:21,640 --> 00:00:24,280 Speaker 1: first time the CFPB has gone after Akwin, and went 9 00:00:24,320 --> 00:00:27,400 Speaker 1: after them in two thousand thirteen over what sounds like 10 00:00:27,520 --> 00:00:32,000 Speaker 1: very similar kinds of allegations of mismanagement of accounts. How 11 00:00:32,120 --> 00:00:34,760 Speaker 1: is it that this didn't get cleared up when that 12 00:00:34,880 --> 00:00:37,640 Speaker 1: when the CFPB went after them the first time? Well, 13 00:00:37,760 --> 00:00:41,239 Speaker 1: I mean that that is uh sixty four thousand dollar question, right. 14 00:00:41,280 --> 00:00:43,360 Speaker 1: I mean, one would have thought that Akwin would have 15 00:00:43,360 --> 00:00:45,360 Speaker 1: been put on notice ban uh and that they would 16 00:00:45,360 --> 00:00:47,479 Speaker 1: have gotten their act together. Um. I think there are 17 00:00:47,400 --> 00:00:49,920 Speaker 1: a couple of possible explanations. They're sort of good faith. 18 00:00:50,000 --> 00:00:52,840 Speaker 1: I mean, there are sort of charitable explanation possible. I'm sorry, 19 00:00:53,000 --> 00:00:55,440 Speaker 1: there are some possible explanations that are sort of charitable 20 00:00:55,480 --> 00:00:57,880 Speaker 1: and others that are less. So let's start with the charitable. 21 00:00:57,880 --> 00:00:59,920 Speaker 1: The charitable explanation might be that they said that, yeah, 22 00:01:00,000 --> 00:01:01,560 Speaker 1: we'll get our act together, we'll sort of get back 23 00:01:01,600 --> 00:01:04,320 Speaker 1: on the straight arrow, will we'll fix these problems, and 24 00:01:04,319 --> 00:01:07,560 Speaker 1: that they really tried um, but that they underestimated the 25 00:01:07,959 --> 00:01:10,480 Speaker 1: magnitude of the problem and so didn't succeed in sort 26 00:01:10,480 --> 00:01:14,000 Speaker 1: of fully handling it. Another possibility is that they were 27 00:01:14,040 --> 00:01:16,560 Speaker 1: in fact acting to correct the problems that the CFPB 28 00:01:17,319 --> 00:01:20,320 Speaker 1: notified them about, but that in the meanwhile, they kept 29 00:01:20,319 --> 00:01:24,520 Speaker 1: taking on additional servicing rights so that the full portfolio 30 00:01:24,640 --> 00:01:27,640 Speaker 1: and that they were dealing with continued to grow. So 31 00:01:27,760 --> 00:01:31,200 Speaker 1: the CFPB, the State of Florida, and twenty one other 32 00:01:31,280 --> 00:01:35,120 Speaker 1: state agencies are suing them or issuing cease and decease 33 00:01:35,319 --> 00:01:38,880 Speaker 1: desist orders against the company. Yeah, it has said it 34 00:01:38,880 --> 00:01:43,639 Speaker 1: will vigorously defend itself. What is its defense? I really, 35 00:01:43,760 --> 00:01:46,759 Speaker 1: I frankly can't imagine what it could be. I really can't. 36 00:01:47,000 --> 00:01:51,120 Speaker 1: I'm very I mean, I'm surprised by this particular attitude. 37 00:01:51,160 --> 00:01:53,040 Speaker 1: I would have thought that they would have been exhibiting 38 00:01:53,400 --> 00:01:56,400 Speaker 1: some kind of contrition um, some sort of plea to 39 00:01:56,440 --> 00:01:58,400 Speaker 1: the effect that well, you know, please, you know, work 40 00:01:58,480 --> 00:02:00,440 Speaker 1: with us here where we really are trying. We're doing 41 00:02:00,440 --> 00:02:02,560 Speaker 1: our best. But but the problem is that the thing 42 00:02:02,640 --> 00:02:05,400 Speaker 1: has you know, that the portfolio has grown so rapidly 43 00:02:05,400 --> 00:02:07,840 Speaker 1: that even as we are making improvements, were still having 44 00:02:07,880 --> 00:02:10,000 Speaker 1: trouble keeping up. That would have struck me as the 45 00:02:10,080 --> 00:02:12,760 Speaker 1: right sort of tone to take. Instead by striking a 46 00:02:12,760 --> 00:02:15,120 Speaker 1: defiant tone and saying, oh, this is just a CFPB 47 00:02:15,280 --> 00:02:17,160 Speaker 1: sort of getting out of control, I think it's an 48 00:02:17,200 --> 00:02:19,920 Speaker 1: amazingly stupid strategy to tell you the truth, because when 49 00:02:19,960 --> 00:02:22,720 Speaker 1: you've got half of the states of the Union making 50 00:02:22,760 --> 00:02:26,359 Speaker 1: the same claim, trying to scapegoat the CFPB just isn't 51 00:02:26,360 --> 00:02:29,000 Speaker 1: gonna It's not gonna fly, right, Nobody's going to buy that. 52 00:02:29,040 --> 00:02:31,079 Speaker 1: I can't see what kind of defense they could possibly 53 00:02:31,120 --> 00:02:33,720 Speaker 1: offer that would be consistent, at least with a defiant 54 00:02:33,720 --> 00:02:36,760 Speaker 1: tone that they're striking. And that's Robert Hawkeet, a professor 55 00:02:36,760 --> 00:02:39,799 Speaker 1: at Cornell University Law School, speaking with Bloomberg Law host 56 00:02:40,040 --> 00:02:42,359 Speaker 1: and Crosso. You can listen to Bloomberg Law Wait days 57 00:02:42,360 --> 00:02:45,960 Speaker 1: at one pm Wall Street Time here on Bloomberg Radio Now. 58 00:02:45,960 --> 00:02:49,560 Speaker 1: Among the top legal stories from Bloomberg Law, drivers fort 59 00:02:49,639 --> 00:02:53,919 Speaker 1: Left have accused Uber of illegally tracking their whereabouts using 60 00:02:53,960 --> 00:02:57,440 Speaker 1: spywear was according to a complaint filed in San Francisco 61 00:02:57,520 --> 00:03:01,399 Speaker 1: Federal court that says Uber wanted to identified drivers who 62 00:03:01,400 --> 00:03:04,360 Speaker 1: worked for both companies so they could be targeted with 63 00:03:04,680 --> 00:03:08,440 Speaker 1: incentives to primarily work for Uber. Folks for Uber had 64 00:03:08,560 --> 00:03:13,200 Speaker 1: no comment. United Airlines is another passenger problem to deal with. 65 00:03:13,240 --> 00:03:15,560 Speaker 1: A woman claimed she was forced out of her business 66 00:03:15,560 --> 00:03:18,600 Speaker 1: class seat during a flight from Newark to London and 67 00:03:18,840 --> 00:03:21,400 Speaker 1: escorted to the back of the plane without an explanation. 68 00:03:21,760 --> 00:03:24,600 Speaker 1: She wants a hundred fifty thousand dollars in punitive damages. 69 00:03:24,880 --> 00:03:28,799 Speaker 1: United says it's reviewing the complaint. French drugmakers Center Fee 70 00:03:28,840 --> 00:03:32,240 Speaker 1: is accusing Melon of trying to squash a rival to 71 00:03:32,320 --> 00:03:36,280 Speaker 1: its EpiPen allergy treatment and aren't officially inflate the price 72 00:03:36,360 --> 00:03:39,160 Speaker 1: of the drug. Sono Fias filed suit in federal court 73 00:03:39,240 --> 00:03:43,160 Speaker 1: in New Jersey. Melon is not commenting. And that's this 74 00:03:43,280 --> 00:03:45,720 Speaker 1: morning's Bloomberg Lawbrary. If you can find more illegal news 75 00:03:45,800 --> 00:03:49,120 Speaker 1: at Bloomberg Law dot com and Bloomberg BNA dot com. 76 00:03:49,400 --> 00:03:52,680 Speaker 1: Attorneys will find exceptional legal research and business development tools 77 00:03:52,680 --> 00:03:56,040 Speaker 1: there as well. Visit Bloomberg law dot com and Bloomberg 78 00:03:56,120 --> 00:03:58,360 Speaker 1: BNA dot com for more information.