The British bank Barclays is just the latest big bank to settle mortgage fraud allegations with the U.S. government over its role in the subprime mortgage and subsequent foreclosure crisis. It has recently agreed to pay $2 billion in civil penalties in order to settle a 2016 federal lawsuit alleging that Barclays:
"You close or hit the bricks...Get out there - you got the prospects coming in. You think they came in to get out of the rain? A guy don't walk on the lot lest he wants to buy. They're sitting out there waiting to give you their money. Are you gonna take it? Are you man enough to take it?"
For the past five years, the most continuously newsworthy topic regarding personal finance has surprisingly not been taxes, but rather mortgage rates or more specifically, refinancing. Now that it appears we are nearing the end of the Real Estate Bubble, creditors are being scrutinized for their lending tactics under the misnomer "Predatory Lending".
The "gist of the action" doctrine is otherwise known as the "economic loss doctrine". This doctrine originated from the concept that contract remedies should be distinguished from tort remedies. However, since its creation, the law regarding whether a tortfeasor is liable in tort for an action founded upon a contract has mutated with law's evolving complexity.