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January 2012 Article Archive

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Goldman Sachs Faces Dutch Pension Fund Suit Over Risky Mortgages
ai-cio.com | Jan 31, 2012
Banking giant Goldman Sachs has been sued by Dutch pension fund ABP over residential mortgage-backed securities.
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Mortgage Accord, Foreign Bribes, Municipal Bonds: Compliance
businessweek.com | Jan 31, 2012
States have until Feb. 3 to decide whether to accept a proposed nationwide settlement of a foreclosure probe with banks including JPMorgan Chase & Co. and Citigroup Inc. that may total as much as $25 billion.
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New Financial Crimes Unit to Police Banks for Faulty Mortgages
ai-cio.com | Jan 30, 2012
A new Financial Crimes Unit, announced by President Barack Obama during last week's State of the Union address, could jeopardize regulations among five of the largest banks in the United States over mortgage fraud and wrongful foreclosures.
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What can we expect from new DOJ/SEC/state AG task force on MBS?
enewspf.com | Jan 28, 2012
I follow mortgage-backed securities litigation closely enough to be disgusted at the greed that fueled the securitization of insufficiently underwritten mortgages issued to homeowners who had no hope of paying them off. Sure, MBS investors and the bond insurers that backed MBS trusts were sophisticated and, to some extent, forewarned about the timebombs lurking in those mortgage pools. But you can't read the voluminous MBS filings by monolines and investors -- including the federal agency that oversees Fannie Mae and Freddie Mac -- without wishing that someone be held accountable for sending the housing market on a slide, and dragging down the rest of the economy with it.
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U.S. Attorney General Holder, State and Federal Officials Announce Collaboration to Investigate Residential Mortgage-backed Securities Market
enewspf.com | Jan 27, 2012
Attorney General Eric Holder along with Housing and Urban Development (HUD) Secretary Shaun Donovan, Securities and Exchange Commission (SEC) Director of Enforcement Robert Khuzami and New York Attorney General Eric T. Schneiderman today announced the formation of the Residential Mortgage-Backed Securities Working Group under President Obama’s Financial Fraud Enforcement Task Force (FFETF).
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Mortgage fraud task force launched
marketwatch.com | Jan 27, 2012
More than three years after the height of the financial crisis, federal and state regulators on Friday launched a mortgage fraud task force to investigate the pooling and securitization of mortgage securities by big banks.
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Additional Resources for Financial Fraud Panel Look Light
news.firedoglake.com | Jan 27, 2012
In addition to the proposed settlement, there’s news on the Unit on Mortgage Origination and Securitization Abuses front. (As an aside, I don’t know what to call this thing. You could say “Financial Fraud Unit,” but there’s already one of those. The name above is the official title, but it’s a mouthful. You could shorten to “UMOSA,” but that’s an ugly acronym. You could say the “Schneiderman panel,” but it’s not his panel, he’s a co-chair. Welcome to my nightmare.)
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Mortgage Settlement Still Very Much Up in the Air
totalmortgage.com | Jan 27, 2012
There’s been a lot of back and forth over the past week as to whether or not the proposed mortgage settlement is imminent. Late last week and early this week, it appeared that a deal was close. Later, Iowa Attorney General Tom Miller, ostensibly the head of the investigation, said that no deal would be reached this week. The proposed deal, which may or may not include a settlement of around $25 billion in various concessions was decried in many circles for not pursuing criminal charges in the case of fraud, for passing much of the losses to pension fund holders, and for generally not going far enough in investigating the events that occurred during the credit bubble and in the subsequent foreclosure crisis.
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Raging Against The Foreclosure Machine
njtoday.net | Jan 27, 2012
Like millions of stories from the great recession, this one begins with homeowners struggling to keep up with a mortgage payment they simply couldn’t afford.
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President Obama creates new mortgage crisis unit
addictedtoradio.com | Jan 26, 2012
In last night’s State of the Union, President Obama announced a mortgage crisis unit that includes federal and state officials to investigate wrongdoing by banks related to real estate lending. Sam Stein at Huffington Post got the early details.
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AG backs expanded mortgage probe
addictedtoradio.com | Jan 26, 2012
Attorney General Eric Schneiderman on Wednesday promised to keep investigating the collapse of mortgage-backed securities that contributed to the national economic downturn, praising President Barack Obama’s creation of a new investigative effort Schneiderman is expected to chair.
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JP Morgan Failed to Ensure that Title to the Underlying Mortgage Loans was Effectively Transferred
4closurefraud.org | Jan 26, 2012
Yesterday we put up John Hancock Life Insurance Co. v. JPMorgan Chase | JPMorgan Chase Sued by John Hancock Life Over Mortgage-Backed Securities. Remember, while you read the section of the complaint, that this ain’t no deadbeat homeowner making these claims. It is a big and powerful insurance company.
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Obama Answers Bernanke Housing Pleas With Refinancing Proposal: Mortgages
bloomberg.com | Jan 26, 2012
President Barack Obama answered Ben S. Bernanke’s appeal for more action to fix the U.S. housing market that’s restraining the economic recovery by proposing a plan to help borrowers reduce their monthly mortgage payments.
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The Belated Mortgage Fraud/Crisis Investigation
economonitor.com | Jan 26, 2012
The most interesting news from the SOTU address was the very belated appointment of a mortgage investigation task force, the Office 0f Mortgage Origination and Securitization Abuses.
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Schneiderman to serve with top federal officials in tackling mortgage abuses
polhudson.lohudblogs.com | Jan 25, 2012
As co-chairman of a new mortgage investigation unit announced last night by President Barack Obama, New York Attorney General Eric Schneiderman will work with federal agencies and state attorneys general to investigate parties that contributed to the global financial crisis by pooling and selling residential mortgage-backed securities. The Unit on Mortgage Origination and Securitization Abuses will be run through the President’s Financial Fraud Enforcement Task Force.
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JP Morgan Sees 'Gigantic' Jump in HARP Refinancing, Executive Says
foxbusiness.com | Jan 25, 2012
J.P. Morgan Chase & Co. has seen a surge in residential loans refinanced through a flagship government mortgage program after the U.S. housing regulator ushered through revisions late last year, a Chase capital markets executive said on Tuesday.
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Why all the robosigning?
sfbayview.com | Jan 24, 2012
The Wall Street Journal reports that the Obama administration is now engaged in heavy arm-twisting to get the 50 state attorneys general to agree to a settlement with five major banks in the “robo-signing” scandal. The scandal involves employees signing names not their own, under titles they did not really have, attesting to the veracity of documents they had not really reviewed. Investigation is revealing that it did not just happen occasionally but was an industry-wide practice, dating back to the late 1990s, and that it may have invalidated the titles to tens of thousands of homes.
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Appeals court upholds MERS right to assign, foreclose on a mortgage
housingwire.com | Jan 24, 2012
Mortgage Electronic Registration Systems Inc. has the right to assign a security deed and foreclose on a property that becomes part of the securitization process, the U.S. Court of Appeals for the 11th Judicial Circuit held in a new opinion.
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Fitch to Release Mortgage Models as Ranieri’s Lender Complains
businessweek.com | Jan 24, 2012
Fitch Ratings is planning to share its grading model for U.S. home-loan bonds with issuers and investors as industry pioneer Lewis Ranieri’s lender complains that credit-ranking firms are hindering the market’s recovery.
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This Could Be The Mortgage Lawsuit That Blows Up In JPMorgan's Face
businessinsider.com | Jan 23, 2012
Another lawsuit against JPMorgan Chase is brewing in California, and this one has the potential to blow up big.
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Senior Goldman bond executive retires: memo
reuters.com | Jan 23, 2012
Donald Mullen, a senior bond executive at Goldman Sachs (GS.N) who oversaw controversial subprime mortgage trades leading up to the financial crisis, has retired, according to an internal memo distributed on Friday and obtained by Reuters.
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Do BofA filings disclose $1.5 bln in lawyers' fees?
newsandinsight.thomsonreuters.com | Jan 20, 2012
Bank of America's eagerly-awaited fourth-quarter Securities and Exchange Commission filings landed Thursday. The bank reported that its liability for breaches of representations and warranties in mortgage-backed securitization contracts is up to $15.8 billion, with outstanding reps and warranties claims by Fannie Mae, Freddie Mac, bond insurers, and private-label investors already totalling $14.2 billion.
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One Year In, Schneiderman Goes His Own Way on Mortgages
wnyc.org | Jan 20, 2012
When he took office, Schneiderman was invited to join a small group of state attorneys general known as the executive committee. This group was deep in negotiations with five large mortgage servicers, including Bank of America and JP Morgan Chase. The idea was to get a settlement with these banks that could bring in billions of dollars in aid for hundreds of thousands of troubled homeowners who’d been served faulty foreclosure documents, some of them including forged signatures.
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The mortgage finance lost years
housingwire.com | Jan 19, 2012
The years following the housing crisis might as well be called the "the lost years" since so little has been done to fix lingering housing and mortgage finance issues.
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The Return of the Liquidating Trust
jdsupra.com | Jan 19, 2012
Recently, the Wall Street Journal highlighted the arrival of “bad loan securities.” If this is a trend, and I both hope and think it is, we clearly have to get a better deal name for these than “Insert Bank Name”, Bad Loan Securities 2012-1. Securitization of less than ideal conduit product has been with us since the birth of securitization, but reached its apogee in the RTC series, for non-performing loans, in the early to mid 1990s.
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New Obstacles on the Course: State Foreclosure Laws Continue to Complicate Mortgage Loan Servicing
jdsupra.com | Jan 18, 2012
It is no secret that the housing crisis is a drag on the economy for which there appears to be no quick and easy fix. President Obama’s recent announcement that his administration would revise the underutilized Home Affordable Refinance Program (“HARP”) in the hopes of assisting underwater borrowers was the latest federal effort to assist homeowners during the ongoing financial crisis. As has been the case with each previous federal effort, the HARP announcement comes on the heels of ever more inventive – and, for servicers, expensive – state and local legislative initiatives with the same ends.
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Freddie Mac Announces K-705 Offering of K Certificates Backed Only by 7-Year Multifamily Mortgages
marketwatch.com | Jan 17, 2012
Freddie Mac today announced its fifth offering of Structured Pass-Through Certificates ("K Certificates") backed exclusively by multifamily mortgages with a 7-year term. The company expects to offer approximately $1.0 billion in K Certificates ("K-705 Certificates"), which are expected to price the week of January 16, 2012, and settle on or about February 7, 2012.
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Foreclosure “Squatters” Goad Lenders and Stand Pat
thefiscaltimes.com | Jan 17, 2012
Delinquent borrowers are beginning to see a bright side to foreclosure -- they can stay in their homes, often living rent-free as courts and banks bat around their cases for months if not years.
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Audit Notes: Triple Dip; Bloomberg Terminals; Goldman, AIG, and the Fed
cjr.org | Jan 16, 2012
Rolling Stone’s Matt Taibbi revisits the tale, reported by Teri Buhl in The Atlantic last year, of the former Bear Stearns executive who now works high up in Goldman Sachs and is being sued, along with his former and current employers, by the Federal Housing Finance Agency for fraud.
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On the Trail of Mortgage Fraud
nytimes.com | Jan 16, 2012
Queens has been harder hit by foreclosures than any other New York borough, and the Federal Bureau of Investigation believes it has found a culprit. Last July, the F.B.I. accused Edul Ahmad, a local broker, of a $50 million mortgage fraud, saying he lured fellow immigrants into subprime mortgages, inflated the values of their properties and concealed his involvement in deals that were ruinous for scores, if not hundreds, of borrowers.
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Redwood bringing $415 million RMBS to market
housingwire.com | Jan 13, 2012
Redwood Trust will bring a fourth privately funded residential mortgage-backed securities deal to market containing 446 loans with a balance of roughly $415.7 million, according to a pre-sale report released by Fitch Ratings Thursday.
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Top real estate market news of 2011
cbsnews.com | Jan 12, 2012
The holidays are over, the decorations have been taken down and New Year's Eve has come and gone. We're onto a new chapter of the real estate story, and everyone is hoping it's better than the last one. There were some positive signs last year, but overall the market remained oversaturated and underperforming.
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More MBS investors take issuers to court
housingwire.com | Jan 10, 2012
Mortgage bond investors are more aggressively launching legal actions to preserve the integrity of the contracts they signed on residential mortgage-backed securities. However, it is unclear if the jump is due to upcoming statutes of limitations, pressures from attorneys to file, or the simpler pursuit of justice.
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Fed Governor Sarah Bloom Raskin Addresses Foreclosure Crisis and the Rule of Law
totalmortgage.com | Jan 10, 2012
One of the most galling things to me about the foreclosure crisis has been the flagrant and apparent total disregard for the rule of law. The rampant and blatant abuses committed in the processes of mortgage origination, securitization, and foreclosure have only started to be addressed in the past couple of years, and we still have seen a paucity of criminal investigations over what appears to be naked fraud.
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Court Eases Insurer’s Burden In Mortgage Backed Securities Case
financialfraudlaw.com | Jan 9, 2012
A typical pre-Fiscal Crisis mortgage-backed securitization began with a group of mortgage loans originated or acquired by a lender that were sold to a trust. The trust, in turn, issued notes and certificates backed by the loans to investors. Investors were promised a return of principal with interest that depended on an ongoing stream of principal and interest payments on the mortgage loans held by the trusts. Importantly, insurance policies guaranteed that the payments to the investors would be made.
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Bear Stearns Asset Backed Securities Trust 2005-4 v. EMC Mortgage Corp | JPMorgan Sued for $95 Million Over Mortgage Securities
thepatriotswar.com | Jan 9, 2012
JPMorgan Sued for $95 Million Over Mortgage Securities (Reuters) – JPMorgan Chase & Co has been sued for $95 million by the trustee for securities marketed in 2005 by the former Bear Stearns Cos over alleged misrepresentations regarding the underlying mortgage loans. US Bank NA wants to force JPMorgan to buy back the mortgage loans.
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GOB explains $17 million mortgage write off
reporter.bz | Jan 9, 2012
The government will write off over $17 million worth of Mortgages owed to the Social Security Board by 782 persons without actually spending a cent, Prime Minister Dean Barrow told The Reporter on Wednesday, January 4.
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Investors Seek Probe Into Wells Fargo Mortgage Bonds
online.wsj.com | Jan 6, 2012
Gibbs & Bruns LLP—the law firm that helped secure a proposed $8.5 billion mortgage settlement with Bank of America Corp.—Thursday said its investor clients seek an investigation into more than $19 billion of mortgage securities issued by Wells Fargo & Co.
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Banks' Worst Fear for 2012
thestreet.com | Jan 6, 2012
There are so many threats to the largest U.S. banks it can be dizzying trying to keep up with it all. Analysts have been saying for months that bank stocks are at historic low valuations, and yet lower still they go.
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No joy for MBS investors in NY judge's bond insurer rulings
newsandinsight.thomsonreuters.com | Jan 5, 2012
Tuesday's parallel rulings by Manhattan State Supreme Justice Eileen Bransten in MBIA and Syncora suits against Countrywide were a big win for the bond insurers. The judge concluded that MBIA and Syncora need only show that Countrywide materially misled them at the time they agreed to write insurance on Countrywide mortgage-backed notes, not that the alleged misrepresentations led directly to MBS defaults and subsequent insurance payouts. Bransten is considered a leading judge on MBS issues, so her grant of summary judgment on the insurance fraud and contract issues should be a boon to all of the monolines engaged in do-or-die litigation with MBS issuers.
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Mortgage Finance Act of 2011 Aims To Recreate Secondary Market
realtybiznews.com | Jan 4, 2012
Senator Johnny Isakson, himself a former real estate broker from Atlanta, Georgia, has introduced The Mortgage Finance Act of 2011 with the goal of recreating the secondary mortgage market in a way that will integrate with the new Qualified Residential Mortgage provisions created under the Dodd-Frank legislation.
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BofA, JPMorgan, WJB Capital, BP, Stanford, Exxon-Venezuela in Court News
bloomberg.com | Jan 4, 2012
Bank of America Corp. lost a ruling in a court fight against MBIA Inc. (MBI) that will help the bond insurer as it tries to recover losses on home loans made by the bank’s Countrywide Financial unit.
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JPMorgan Sued for $95 Million Over Mortgage Securities
businessweek.com | Jan 3, 2012
JPMorgan Chase & Co., the biggest U.S. bank by assets, was sued for about $95 million over mortgage loans bundled into securities.
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MassMutual sues five financial giants
bizjournals.com | Jan 2, 2012
Massachusetts Mutual Life Insurance Co. has filed suit against five financial services companies alleging that $200 million in mortgage-backed securities that purchased for the Springfield-based company are worthless.
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JPMorgan Chase and Ally Bank Sued Over Mortgage Bond Losses
gobankingrates.com | Jan 2, 2012
JPMorgan Chase & Co. and Ally Bank are among financial institution blamed in lawsuits over misrepresented mortgage bonds. German lender HSH Nordbank AG is suing the banks involved in hopes of recouping $293 million in losses.
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