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February 2016 Article Archive

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Citibank Will Stop Collecting $34 Million in Credit Card Debt
stltoday.com | February 25, 2016
Certain credit card debtors are in for some relief. Citibank has agreed to provide nearly $16 million in consumer relief and forgo collecting on about $34 million in debt held by nearly 7,000 cardholders as part of two enforcement actions taken by the Consumer Financial Protection Bureau.
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Court Decision To Shake Up Lending Market, Says LeClairRyan Attorney
prnewswire.com | February 25, 2016
Employers should be prepared to face an onslaught of labor and employment law changes in 2016, cautions Charlie Meyer, a shareholder in national law firm LeClairRyan's Richmond office. From large-scale Equal Employment Opportunity Commission (EEOC) investigations, to changes in minimum wage and overtime protections, several emerging cases in 2016 could change the business landscape, writes Meyer in a recent blog post at EPLI Risk, which focuses on employment practices liability insurance, Directors and Officers liability insurance, and related issues.
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United States ex rel. Adams v. Aurora Loan Servs.
justia.com | February 25, 2016
Relators filed suit under the False Claims Act, 31 U.S.C. 3729(b)(2)(A), against various lenders and loan servicers, alleging that defendants certified that loans purchased by Fannie Mae and Freddie Mac were free and clear of certain home owner association liens and charges when they were not. At issue was whether Fannie Mae and Freddie Mac are officers, employees, or agents of the federal government for purposes of the Act.
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Gilman v. Brown
justia.com | February 25, 2016
Plaintiffs filed suit under 42 U.S.C. 1983 to enjoin the application of Propositions 89 and 9 as to them. Proposition 89 amended the California Constitution to vest in the Governor constitutional authority to reverse, affirm, or modify grants of parole as to inmates convicted of murder. Proposition 9 amended the California Penal Code to increase the default period of time after which a prisoner would be scheduled for a parole hearing, after the denial of parole.
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HSBC to Pay Mass. Homeowners $2.7M Over Force-Placed Insurance Practices
insurancejournal.com | February 22, 2016
Massachusetts Attorney General Maura Healey said national mortgage lender and servicer HSBC has agreed to pay $4 million to resolve allegations involving force-placed insurance practices. The settlement resolves allegations that HSBC received commissions and other “kickbacks” relating to force-placed insurance policies that it procured for struggling Massachusetts homeowners, Healey said.
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Calif. Supreme Court Lets Borrowers Challenge Wrongful Foreclosures
nationalmortgagenews.com | February 19, 2016
The California Supreme Court on Thursday ruled that borrowers may challenge a wrongful foreclosure on the grounds that the assignment of the deed of trust was invalid. The decision in Yvanova v. New Century Mortgage Corp. has the potential to radically increase the number of lawsuits brought by borrowers, particularly on loans that were pooled into securitized trusts, experts on both sides of the issue said.
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Borrower has Standing to Challenge Forclosing Entity to Show Assignment is VOID! (but not to show merely "voidable")
February 17, 2016
The logic of defendants’ no-prejudice argument implies that anyone, even a stranger to the debt, could declare a default and order a trustee’s sale—and the borrower would be left with no recourse because, after all, he or she owed the debt to someone, though not to the foreclosing entity. This would be an “odd result” indeed. (Reinagel, supra, 735 F.3d at p. 225.) As a district court observed in rejecting the no-prejudice argument, “[b]anks are neither private attorneys general nor bounty hunters, armed with a roving commission to seek out defaulting homeowners and take away their homes in satisfaction of some other bank’s deed of trust.” (Miller v. Homecomings Financial, LLC (S.D.Tex. 2012) 881 F.Supp.2d 825, 832.)
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February 17, 2016
The collapse in 2008 of the housing bubble and its accompanying system of home loan securitization led, among other consequences, to a great national wave of loan defaults and foreclosures. One key legal issue arising out of the collapse was whether and how defaulting homeowners could challenge the validity of the chain of assignments involved in securitization of their loans. We granted review in this case to decide one aspect of that question: whether the borrower on a home loan secured by a deed of trust may base an action for wrongful foreclosure on allegations a purported assignment of the note and deed of trust to the foreclosing party bore defects rendering the assignment void.
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Sirmons Motion in Opposition to Plaintiff's Motion for Summary Judgement
February 17, 2016
This educational material was prepared in response to Plaintiff’s Motion for Protective Order MPO). The information contained herein should be used in Defendants’ Motion in Opposition as the same issues are argued. Plaintiff alleges in Paragraph C of their MPO “Defendants Lack Standing to Challenge Plaintiff’s Compliance With its Pooling & Servicing Agreement.”
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2 Banks Agree on Fines to End Foreclosure Enforcement
detroitnews.com | February 10, 2016
U.S. Bancorp will pay $10 million and Banco Santander SA agreed to turn over $3.4 million to settle Office of the Comptroller of the Currency complaints over missteps in how the banks handled regulators’ orders to fix faulty foreclosure practices. The fines stem from violations of 2013 accords over mortgage-servicing flaws, the OCC said in a statement Tuesday. The new penalties close out a series of restrictions the companies were placed under in June after they failed to live up to earlier agreements related to loans mishandled after the 2008 financial crisis.
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Mortgage-backed Trusts Using Mortgage Assignments from DocX, LLC
thjf.org | February 10, 2016
On November 20, 2012, Lorraine O’Reilly Brown, the former president of mortgage-document mill, DocX, LLC, a subsidiary of Lender Processing Services, pleaded guilty in federal court in Jacksonville, Florida to conspiracy to commit mail fraud and wire fraud. DocX produced over one million mortgage assignments. These assignments were used in foreclosures across the country. Brown admitted that she knew that these assignments were being prepared to use in foreclosures.
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Assignee Liability and Set-off Rights: Steps to Mitigate Risks of Purchasing or Financing Residential Mortgage Loans
corporate.findlaw.com | February 10, 2016
In light of a number of bankruptcies among mortgage loan originators, participants in the secondary market for residential mortgage loans have become increasingly aware of potential assignee liability and mortgagor set-off rights under the Truth in Lending Act ("TILA") and the Real Estate Settlement Procedures Act ("RESPA"). Both purchasers and lenders, who before relied almost exclusively upon originators' representations and warranties and repurchase and indemnification obligations to ensure that they were protected from losses due to TILA or RESPA violations, have found their asset pools less valuable due to potential mortgagor offsets and have incurred affirmative expenses due to the assignee liability provisions under TILA.
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U.S. Bank, Santander Fines End OCC Mortgage Enforcement Actions
dailynewsx.com | February 10, 2016
U.S. Bancorp agreed to pay $10 million while Banco Santander SA settled for $3.4 million following missteps in how they handled earlier orders from regulators to fix faulty foreclosure practices, according to the Office of the Comptroller of the Currency. The two lenders’ fines stem from violations of 2013 accords over mortgage-servicing flaws, the agency said in a statement Tuesday. The new penalties close out a series of mortgage-servicing restrictions the companies were placed under in June after they failed to live up to earlier agreements that had involved foreclosure faults after the 2008 financial crisis.
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HSBC fined $470m for 'abusive mortgage practices' during 2008 crisis
theguardian.com | February 8, 2016
HSBC has been fined $470m (£325m) for “abusive mortgage practices” in relation to the 2007-2009 housing crisis in which millions of people lost their homes. The British bank on Friday agreed to pay the fine to settle US federal and state investigations into alleged abuses against homeowners struggling to keep up with mortgage payments during the 2008 global financial crisis.
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SEC Enforcement: Wells Fargo to Pay $1.2B on Mortgage Fraud
thinkadvisor.com | February 8, 2016
Among recent enforcement actions by the Securities and Exchange Commission, Wells Fargo & Co. has agreed to pay $1.2 billion to settle a lawsuit that brought claims of mortgage fraud against the firm. In addition, the SEC charged a lending company and a brokerage firm with fraud and imposed a $1 million penalty on a brokerage firm for violating anti-money laundering protocols.
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Wells Fargo to pay $1.7b in US mortgage fraud settlement
todayonline.com | February 5, 2016
NEW YORK — Wells Fargo, the largest mortgage lender in the United States, has agreed to pay US$1.2 billion ($1.7 billion) to settle claims that it had engaged in mortgage fraud during the sub-prime housing scandal that ignited the 2008 global financial crisis.
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If You Received a New Mortgage or Refinance between 2005 and the Present Your Mortgage is Null and Void!
cfla.com | February 3, 2016
If you received a new mortgage or refinanced you old mortgage between 2005 and the present and your mortgage was securitized by the Wall Street banks, your mortgage is null and void! We have truth in lending laws and full disclosure laws that are supposed to be front and center at your real estate closing.
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