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June 2015 Article Archive

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Fannie bumped in Idaho
justia.com | June 28, 2015
The Federal National Mortgage Association (“FNMA”) purchased Russell Hafer’s home at a non-judicial foreclosure sale. FNMA filed an eviction suit when Russell and his wife, Sandra, refused to vacate. The Hafers claimed that the foreclosure sale was invalid because their loan servicer, American Home Mortgage Services, Inc.(now known as Homeward Residential, Inc.), agreed to modify the terms of Russell’s loan just prior to instituting foreclosure proceedings.
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How the banksters try to wiggle out of rescission
livinglies.files.wordpress.com | June 28, 2015
From one of my readers, I received the Power Point Presentation (PDF) given by a law firm representing the banks. It confirms everything I have been saying. It also offers a glimpse of some of the ways they will try to wiggle out of it. Suffice it to say that in addition to losing far more cases than what has been previously been reporting, the banks are now stuck with a problem that they can't fix, to wit: when they try to "securitize" a pool of new loans they cannot say that the deal is done because the borrower could assert a right to rescind triggering a nightmare of problems for all the parties starting with origination. The appetite for mortgage backed securities is almost certainly going to decline or vanish completely.
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CFPB begins public disclosure of consumer complaint narratives
jdsupra.com | June 28, 2015
Consumer narratives are now publicly available on the CFPB’s consumer complaint database. In its press release, the CFPB stated that the database now includes “for the first time over 7,700 consumer accounts of problems they are facing with financial companies concerning mortgages, bank accounts, credit cards, debt collection, and more.”
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Wells Fargo: 'Robo-signing' settlement offers Bakersfield homebuyers $15,000 downpayment grants
4-traders.com | June 28, 2015
More than 200 Bakersfield families will get money toward the purchase of a home thanks to a court agreement last year settling accusations Wells Fargo & Co. used "robo-signings" to expedite home foreclosures in the early days of the financial crisis.
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Homeowner wins DUAL TRACKING issue against OCWEN
June 26, 2015
Plaintiffs filed suit against Ocwen after their lender's purchase of their residence at a nonjudicial foreclosure sale, alleging that Ocwen violated Civil Code section 2923.6, the prohibition on "dual tracking" contained in the Homeowners Bill of Rights, when it conducted a foreclosure sale of plaintiffs' property while their loan modification application was pending. The trial court sustained Ocwen’s demurrer.
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Consumer Financial Protection Bureau Identifies Illegal Practices Uncovered Through Supervision
June 23, 2015
WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (CFPB) released its latest supervision report outlining the illegal practices uncovered by the Bureau’s examiners in the first four months of 2015. The Bureau found problems with dual-tracking at mortgage servicers that could mislead consumers to believe their trial modifications were canceled. The Bureau also found a lack of quality control measures in place at consumer reporting agencies. The report shows that across all industries CFPB supervisory resolutions resulted in remediation of $11.6 million to more than 80,000 consumers.
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Baron Rothschild indicted in France over fraud case
theolivepress.es | June 22, 2015
FRENCH police have been ordered to track down one of Europe’s wealthiest aristocrats over a fraud involving hundreds of British pensioners. Baron David de Rothschild has been indicted over the allegations after the victims, mostly expats living in Spain, bought into his loan scheme.
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Apply for Attorney Fees as Soon as Your Attorney Obtains a Preliminary Injunction; You do NOT have to Wait Until the End to Get Attorney Fees!
law.justia.com | June 19, 2015
In 2012, new legislation imposed specific limitations regarding the nonjudicial foreclosure of owner-occupied residential real property. Among other things, the statutory scheme provided that a court may award reasonable attorney fees and costs to the "prevailing borrower:" "A borrower shall be deemed to have prevailed for purposes of this subdivision if the borrower obtained injunctive relief or was awarded damages pursuant to this section."
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6 Banks Face Limits on Mortgage Servicing Activities by OCC
zacks.com | June 19, 2015
It seems that the scars inflicted by the financial crisis have not been erased entirely from the banking business. The Office of the Comptroller of the Currency (OCC) has imposed restrictions on business activities related to mortgage servicing of six banks as they failed to comply with the consent orders related to faulty foreclosures in the past.
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Banks penalized for rushed foreclosures
mpamag.com | June 19, 2015
The Office of the Comptroller of the Currency, part of the Treasury Department, announced Wednesday that it has taken action against U.S. Bank, Wells Fargo, JPMorgan Chase, HSBC, Santander and Everbank. The action includes limits placed on the banks planning to purchase rights to service mortgages from other lenders.
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Rise in Bank Repossessions Fuels 1 Percent Increase in Foreclosure Activity to 19-Month High in May
realtytrac.com | June 19, 2015
IRVINE, Calif. – June 18, 2015 — RealtyTrac® (www.realtytrac.com), the nation’s leading source for comprehensive housing data, today released its May 2015 U.S. Foreclosure Market Report™, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 126,868 U.S. properties in May 2015, up 1 percent from the previous month and up 16 percent from a year ago to a 19-month high. The U.S. foreclosure rate in May was one in every 1,041 housing units with a foreclosure filing.
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Barclays To Discontinue Trading In Non-Agency U.S. Mortgage-Backed Securities
forbes.com | June 19, 2015
Barclays has decided to pull out of the $700-billion non-agency U.S. mortgage trading industry in a bid to fall in line with stricter rules imposed by U.K.’s financial regulators. While U.S. regulations allow banks to ignore the credit rating of mortgage bonds while calculating their capital ratios, British regulators require U.K.-based banks to set aside more capital to cover junk-rated mortgage bonds.
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Judge rules California owes $331 million to homeowners
news.yahoo.com | June 16, 2015
SAN FRANCISCO (Reuters) - A California judge has ruled the state is obligated to pay $331 million in mortgage relief funds it used to bolster its finances, but stopped short of ordering that the money be turned over to homeowners hard hit by the mortgage and foreclosure crisis.
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NEW Fraud Reporter: First Edition
June 15, 2015
Welcome to the first issue of The Fraud Reporter, a periodic newsletter designed to be a source of news and information regarding fraud prevention, investigation and litigation. We hope that you will find this newsletter to be a useful tool to stay current on fraud-related issues.
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USURY REVIVED: 2d Circuit Rules Assignee Does Not Inherit the Preemption of National Banks
livinglies.wordpress.com | June 12, 2015
This is a decision with extremely far reaching consequences. Practically all debt now is subject to claims of securitization. Thus most “loans” are assigned and/or sold or transferred to a third party. It has been assumed that the National Banking Act preempted any local laws on usury.
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Aurora v. Taylor NY Ct Appeals Holds Aurora had STANDING to foreclose as note was transferred to Aurora before foreclosure started
justia.com | June 12, 2015
Defendant executed an adjustable rate note to First National Bank of Arizona, wherein she agreed to repay a loan. To secure payment, Defendants executed a mortgage with the the bank. The loan was subsequently made part of a residential mortgage-back securitization trust, and Deutsche Bank Trust Company Americas became the owner of the note.
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JP Morgan Chase Bank, N.A. v Butler
nycourts.gov | June 10, 2015
In an action to foreclose a mortgage, the plaintiff appeals, as limited by its brief, from so much of an order of the Supreme Court, Kings County (Schack, J.), entered July 10, 2013, as (a) granted those branches of the motion of the defendant Frederick D. Butler which were (i) pursuant to CPLR 2606 for the payment out of court of the sum of $490,000, held on deposit by the Kings County Clerk, to the extent of directing a payment to him in the sum of $55,617.11, and (ii) pursuant to 22 NYCRR 130-1.1 for the imposition of sanctions against the plaintiff and/or its attorneys to the extent of directing a hearing to determine whether sanctions should be imposed, and (b) denied its cross motion pursuant to CPLR 2606 for the payment out of court of the sum of $490,000, held on deposit by the Kings County Clerk, and directed a hearing to determine whether it was entitled to the balance of the sum held on deposit by the Kings County Clerk.
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CFPB fines mortgage bank for illegal compensation
mpamag.com | June 10, 2015
The Consumer Financial Protection Bureau has ordered a defunct California mortgage bank to pay $228,000 for paying illegal incentives to its loan officers. The CFPB ordered Guarantee Mortgage Corporation to pay the penalty for paying its branch managers based in part on the interest rates of the loans they closed.
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Account exec tapped for TPO manager job
mpamag.com | June 10, 2015
When Inlanta Mortgage, Inc. went looking for someone to lead its expanding third-party origination business, they didn’t have to look very far. Inlanta has just announced that Gary Grocholski has been promoted to the position of TPO Manager, managing Inlanta’s expanding third-party origination business and overseeing the execution of new partnership agreements.
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Consumers more positive about housing market, says Fannie
mpamag.com | June 10, 2015
Consumer attitudes about the housing market are on the upswing, according to new data from Fannie Mae. The results of Fannie’s May 2015 National Housing Survey show consumers are becoming more positive about the housing market as average hourly earnings accelerate and personal income growth firms up. The share of survey respondents who believe it’s a good time to sell a home reached an all-time high last month, and those saying they’d prefer to buy rather than rent on their next move jumped three points to 65%.
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Mergers, acquisitions, and the regulatory environment
mpamag.com | June 10, 2015
The past several years of industry overall in the regulatory environment has definitely been a tough pill to swallow. For most of us in the mortgage industry, it has been a challenge to adapt the ever flowing stream of changes. We've had to beef up our compliance departments to make sure we're in proper standing. We've had to adopt new technologies in order to meet the new standards. We've even had to train our people on new methodologies to be used in the new environments we find ourselves in.
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PHH ordered to pay $109 million over kickback scheme
mpamag.com | June 10, 2015
An embattled mortgage lender has been ordered to pay a $109 million penalty for orchestrating a massive mortgage insurance kickback scheme. Consumer Financial Protection Bureau Director Richard Cordray denied an appeal by mortgage lender PHH Corp., concluding that the lender illegally referred customers to mortgage insurers in exchange for kickbacks. Cordray ordered PHH to pay $109 million to the CFPB for violating the Real Estate Settlement Procedures Act (RESPA).
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Supreme Court of California Case Notification for: S218973
appellatecases.courtinfo.ca.gov | June 10, 2015
Petition for review after the Court of Appeal affirmed the judgment in a civil action. The court limited review to the following issue: In an action for wrongful foreclosure on a deed of trust securing a home loan, does the borrower have standing to challenge an assignment of the note and deed of trust on the basis of defects allegedly rendering the assignment void?
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Rescission Confusion Persists
livinglies.wordpress.com | June 10, 2015
For more information on common law rescission, TILA Rescission and foreclosure defenses please call 954-495-9867 or 520-405-1688. THIS IS NOT A LEGAL OPINION ON ANY ONE PARTICULAR CASE. GET A LAWYER, BUT INSIST THAT HE OR SHE DO THOROUGH ANALYSIS BEFORE HE OR SHE GIVES AN OPINION.
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Abacus Bank Acquitted of All Charges In Mortgage Fraud Case
themreport.com | June 9, 2015
Law360's John Kennedy reported that a New York state jury found Abacus Federal Savings Bank not guilty of residential mortgage fraud, falsifying business records, and grand larceny charges on Thursday, a spokeswoman for Manhattan District Attorney Cyrus R. Vance Jr.'s office confirmed to the site. James C. McKinley Jr. at the New York Times also reported the jury rejected the Manhattan district attorney’s attempt to prove that the bank systematically lied for years to Fannie Mae about the qualifications of its mortgage applicants in the four month trial.
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Goldman, Morgan Stanley Near Settlements With Justice Department
thestreet.com | June 9, 2015
Goldman Sachs (GS) is one of up to nine banks reportedly expected to pay billions of dollars in settlements with the U.S. Department of Justice over the sale of mortgage-backed securities leading up to the financial crisis. Goldman Sachs and Morgan Stanley (MS) could finalize their settlements within the next couple of weeks, as early as late June, according to the Wall Street Journal, which cited people familiar with the matter. Other banks including Barclays (BCS), Credit Suisse (CS), Deutsche Bank (DB), HSBC (HSBC), Royal Bank of Scotland (RBS), UBS (UBS) and Wells Fargo (WFC) are expected to reach settlements in the coming months as well.
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STANDING - 8th Circuit finds homeowner has NO STANDING to challenge failure to timely transfer into the trust
justia.com | June 7, 2015
Rogers’s 2005 mortgage on her Minnesota home was executed in favor of Countrywide and it listed Mortgage Electronic Registration Systems (MERS) as the mortgagee. In 2008, MERS transferred its interest in the mortgage to a securitized mortgage trust by assigning the mortgage to Bank of New York as Trustee for the Certificate holders.
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JPMorgan Chase mortgage banker sentenced for bribery, tax evasion
housingwire.com | June 7, 2015
A Texas mortgage banker was sentenced to six months in prison, followed by six months of home confinement, for her role in a commercial bribery and tax evasion scheme. Lynda Sanabria of Rockwall, Texas, admitted accepting hundreds of thousands of dollars in bribes in return for selling mortgage loans to her preferred customers on the secondary mortgage market.
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Recorder announces free fraud protection service
hannibal.net | June 7, 2015
The Marion County Recorder’s Office is extending access to a service that allows users to keep a watchful eye for signs of potentially fraudulent activity involving their property. “In our current economic climate, people are making tough choices over what to do with every dollar, said Harla Friesz, Marion County Recorder. “But at the same time property and mortgage fraud are even a more potential threat. Opening the Fraud Protection Alert Service to everyone and making Marion County less attractive to criminals is in the best interest of the community.”
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Mers v Robinson Order. MERS loses critical case - California District Court dismisses MERS claims that holds claim to title instead of the Lender
scribd.com | June 7, 2015
California District Court (Central California) dismisses MERS claims that it holds claim to title instead of the Lender. Court holds MERS is a "separate corporation that is acting solely as nominee for Lender and Lender's Successors and assigns. Benefit of collection belongs t lender, as true beneficiary."
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IN RE MORTGAGE ELECTRONIC REGISTRATION SYSTEMS (MERS) LITIGATION by JAMES A. TEILBORG, Senior District Judge | The judicial lower court damn protecting MERS for a decade is starting to crumble in the Ninth Circuit
stopforeclosurefraud.com | June 7, 2015
This Court previously granted a motion to dismiss this case. Plaintiffs appealed that decision and the Court of Appeals reversed the dismissal (Doc. 1797). Following remand, Defendants indicated that they intended to again move to dismiss. This Court ordered that if any Defendant again moved to dismiss, such Defendant must address the Rule of Mandate and how this Court could entertain another round of motions to dismiss having already been reversed for dismissing the case (Doc. 1803).
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Mortgage Lender Accused of Violating the False Claims Act Agrees to Pay Government $212.5 Million for Alleged FHA-Insured Loan Fraud
washingtontimes.com | June 7, 2015
On June 1, 2015, the Department of Justice (DOJ) announced that First Tennessee Bank NA, headquartered in in Memphis, TN, has agreed to pay the U.S. Government $212.5 million to resolve allegations that it violated the False Claims Act (FCA) by certifying mortgage loans insured by the U.S. Department of Housing and Urban Development (HUD) Federal Housing Administration (FHA) – mortgages that allegedly did not meet HUD’s underwriting requirements.
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White Lies on Mortgage Applications Are Costly to Lenders
nytimes.com | June 7, 2015
Mortgage lenders have good reason to require borrowers to specify whether they intend to live in a house they are financing. “If it’s not your primary residence, the chance of you defaulting is very high versus your primary residence, where you’re living with your family,” said Tim Coyle, the senior director for financial services at LexisNexis Risk Solutions, which develops risk mitigation tools for banks.
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Attorney General Lynch Announces Five Major Banks Agree to Parent-Level Guilty Pleas
youtube.com | June 7, 2015
Five major banks – Citicorp, JPMorgan Chase & Co., Barclays PLC, The Royal Bank of Scotland plc and UBS AG – have agreed to plead guilty to felony charges. Citicorp, JPMorgan Chase & Co., Barclays PLC, and The Royal Bank of Scotland plc have agreed to plead guilty to conspiring to manipulate the price of U.S. dollars and euros exchanged in the foreign currency exchange (FX) spot market and the banks have agreed to pay criminal fines totaling more than $2.5 billion.
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Abacus Bank, officers cleared in mortgage fraud case
washingtontimes.com | June 7, 2015
NEW YORK (AP) - A savings bank and two of its senior officers have been cleared of mortgage fraud and other charges. Abacus Federal Savings Bank; chief credit officer Yiu Wah Wong; and loan originator supervisor Raymond Tam were acquitted Thursday after trial on a 240-count indictment.
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Disabled Navy veteran who lost his house because of Wells Fargo TYPO collapses and DIES in court during fight against bank
dailymail.co.uk | June 7, 2015
A 62-year-old U.S. Navy veteran has keeled over and died in a California court while fighting a legal battle against banking giant Wells Fargo, which foreclosed on his home by mistake. Larry Delassus, of Hermosa Beach, lost his house two years ago after a typo in his assessor's parcel number suggested he was behind in his property taxes - but the number actually corresponded to his neighbor's home.
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J.P. Morgan Wins Legal Battle in WaMu Case
wsj.com | June 4, 2015
J.P. Morgan Chase & Co. won a legal battle in its effort to avoid billions of dollars in potential liabilities from its purchase of Washington Mutual Inc.’s banking operations during the financial crisis. A U.S. District Court judge in Washington ruled Wednesday that the Federal Deposit Insurance Corp. must shoulder certain legal claims stemming from decisions that Washington Mutual made before J.P. Morgan bought the business in 2008 at the behest of regulators.
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Senate GSE Proposals Gain Support of Key House Member
nationalmortgagenews.com | June 4, 2015
WASHINGTON — Rep. Edward Royce, R-Calif., urged fellow House members Wednesday to support a Senate proposal that would make significant reforms to Fannie Mae and Freddie Mac. Legislation, which is principally focused on regulatory relief, recently approved by the Senate Banking Committee would require Fannie and Freddie to conduct more securitizations involving risk-sharing with private investors.
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