Saturday, December 18, 2010
Drugmaker Lays Off 1,700 Via Conference Call Ahead Of Holidays
On Nov. 30, employees at Sanofi-Aventis pharmaceuticals, the world's fourth-biggest drugmaker, received an email from the company wishing them a happy Thanksgiving and telling them to check their email again at 5 a.m. on Tuesday, Dec. 2.
A.R., a Sanofi-Aventis sales representative in California who wished to remain anonymous, as her contract forbids publicly disparaging the company, said she and her coworkers each received one of the two mass emails the company sent out that Tuesday morning. Both emails contained a code, an 800-number and a call time, either 8:00 a.m. or 8:30 a.m. The employees who were instructed to call in at the earlier time were told they could keep their jobs, but the 1,700 employees who called in at 8:30 a.m. weren't so lucky: They were laid off by a voice on the other line that told them to stop working immediately, and had no opportunity for question or comment.
Unfortunately, A.R. found herself in the second group.
"The way they did this was so brutal and inhumane," she told HuffPost. "We were each assigned an employee number when we started working there -- an 'NM' followed by five digits -- and that's how I felt that day. Like a number, rather than a valued human being with feelings."
Sanofi-Aventis told its employees they would be paid through Dec. 31, and gave them a modest severance package. A.R., who had only been working at the company a year and a half, received 13 weeks of pay and benefits.
A.R. says a representative from an outside company hired by Sanofi-Aventis to repossess materials came by almost immediately after the layoffs to take back the company car she had been driving.
"My manager had convinced me to sell my personal car three months earlier because he said the company was in really good shape," she said. "So I sold it. I might have to use my severance pay to buy a new one now, so I can drive around to job interviews."
Read on.
A.R., a Sanofi-Aventis sales representative in California who wished to remain anonymous, as her contract forbids publicly disparaging the company, said she and her coworkers each received one of the two mass emails the company sent out that Tuesday morning. Both emails contained a code, an 800-number and a call time, either 8:00 a.m. or 8:30 a.m. The employees who were instructed to call in at the earlier time were told they could keep their jobs, but the 1,700 employees who called in at 8:30 a.m. weren't so lucky: They were laid off by a voice on the other line that told them to stop working immediately, and had no opportunity for question or comment.
Unfortunately, A.R. found herself in the second group.
"The way they did this was so brutal and inhumane," she told HuffPost. "We were each assigned an employee number when we started working there -- an 'NM' followed by five digits -- and that's how I felt that day. Like a number, rather than a valued human being with feelings."
Sanofi-Aventis told its employees they would be paid through Dec. 31, and gave them a modest severance package. A.R., who had only been working at the company a year and a half, received 13 weeks of pay and benefits.
A.R. says a representative from an outside company hired by Sanofi-Aventis to repossess materials came by almost immediately after the layoffs to take back the company car she had been driving.
"My manager had convinced me to sell my personal car three months earlier because he said the company was in really good shape," she said. "So I sold it. I might have to use my severance pay to buy a new one now, so I can drive around to job interviews."
Read on.
Tim Geithner Backs Foreclosure Aid As Clock Ticks Down
The U.S. Treasury Department has spent months blocking legal aid funding for borrowers fighting foreclosure, but is giving a late push to legislation that would expand its authority to help homeowners. In a bruising appearance before the Congressional Oversight Panel on Thursday, Treasury Secretary Timothy Geithner was accused of "covering for something" with current foreclosure policies. Now, as the clock runs down, the Treasury chief is throwing his support behind legislation that would extend millions of dollars in critical funding to homeowners in the states hit hardest by the foreclosure crisis.
Geithner has insisted that the Treasury does not have the legal authority to allow bailout money to be spent on legal bills for borrowers. That creates a difficult situation for the Obama administration's clunky foreclosure relief program, which often requires homeowners to undergo years of legal wrangling to achieve its stated goals.
But Treasury spokesman Steve Adamske says Geithner "enthusiastically supports" legislation from Rep. Marcy Kaptur (D-Ohio) that would explicitly grant Treasury the right to extend legal aid to foreclosure victims.
"I talked to Geithner, in fact, and Geithner agreed to support it," House Financial Services Committee Chairman Barney Frank (D-Mass.) told The Huffington Post. "I'm told Bachus was for it, but Boehner objected, even though it's no more money," Frank added, referring to the incoming committee chair Spencer Bachus (R-Ala.) and incoming Speaker John Boehner (R-Ohio).
Treasury has approved $7.6 billion in foreclosure relief funds to states hit hardest by the housing crash. The legislation would allow those states to use the funding for legal aid programs.
The bill is expected to be considered Friday under a special legislative fast-track requiring a two-thirds majority for passage. The legislation faces a difficult path forward with Boehner opposed to it, even though his state features one of the highest foreclosure rates in the country.
"This bill re-opens the TARP bailout fund for 'legal aid' programs, which could result in millions of taxpayer dollars being pumped into groups similar to ACORN," Boehner spokesman Michael Steel told HuffPost.
Read on.
Geithner has insisted that the Treasury does not have the legal authority to allow bailout money to be spent on legal bills for borrowers. That creates a difficult situation for the Obama administration's clunky foreclosure relief program, which often requires homeowners to undergo years of legal wrangling to achieve its stated goals.
But Treasury spokesman Steve Adamske says Geithner "enthusiastically supports" legislation from Rep. Marcy Kaptur (D-Ohio) that would explicitly grant Treasury the right to extend legal aid to foreclosure victims.
"I talked to Geithner, in fact, and Geithner agreed to support it," House Financial Services Committee Chairman Barney Frank (D-Mass.) told The Huffington Post. "I'm told Bachus was for it, but Boehner objected, even though it's no more money," Frank added, referring to the incoming committee chair Spencer Bachus (R-Ala.) and incoming Speaker John Boehner (R-Ohio).
Treasury has approved $7.6 billion in foreclosure relief funds to states hit hardest by the housing crash. The legislation would allow those states to use the funding for legal aid programs.
The bill is expected to be considered Friday under a special legislative fast-track requiring a two-thirds majority for passage. The legislation faces a difficult path forward with Boehner opposed to it, even though his state features one of the highest foreclosure rates in the country.
"This bill re-opens the TARP bailout fund for 'legal aid' programs, which could result in millions of taxpayer dollars being pumped into groups similar to ACORN," Boehner spokesman Michael Steel told HuffPost.
Read on.
Oops! BofA Sends Loan-Mod Letter in Error to WSJ Reporter
Bank of America helpfully sent out a letter last week informing a Brooklyn homeowner that the bank didn’t have all the documents needed to finalize a loan modification application.
“Our records indicate that we are still missing some of the required documents, or some of the documents were sent to us with missing or incorrect information,” said the form letter dated Dec. 6.
But there was one problem: the letter was addressed to the couple that sold the Brooklyn apartment in 1998. It arrived in the mailbox of a Wall Street Journal reporter who bought that apartment and has never had a mortgage on it.
It’s no secret that banks’ paperwork problems have plagued the Obama administration’s Home Affordable Modification Program, or HAMP, and the letter offers a glimmer into potential miscues. Borrowers frequently tell of sending and resending paperwork three or four times, while banks often say that modifications aren’t being completed because borrowers aren’t filing all the necessary documentation.
Bank of America says this letter was sent in error after a loan modification negotiator entered in the wrong nine-digit loan number and that the incident appears to have been “very isolated.” “It was simply someone going into a template [who] punched in the wrong number,” said a bank spokeswoman. “Obviously, we’re very sorry for the confusion.”
Reads on.
“Our records indicate that we are still missing some of the required documents, or some of the documents were sent to us with missing or incorrect information,” said the form letter dated Dec. 6.
But there was one problem: the letter was addressed to the couple that sold the Brooklyn apartment in 1998. It arrived in the mailbox of a Wall Street Journal reporter who bought that apartment and has never had a mortgage on it.
It’s no secret that banks’ paperwork problems have plagued the Obama administration’s Home Affordable Modification Program, or HAMP, and the letter offers a glimmer into potential miscues. Borrowers frequently tell of sending and resending paperwork three or four times, while banks often say that modifications aren’t being completed because borrowers aren’t filing all the necessary documentation.
Bank of America says this letter was sent in error after a loan modification negotiator entered in the wrong nine-digit loan number and that the incident appears to have been “very isolated.” “It was simply someone going into a template [who] punched in the wrong number,” said a bank spokeswoman. “Obviously, we’re very sorry for the confusion.”
Reads on.
Arizona, Nevada sue Bank of America Over Mortgage Servicing
SAN FRANCISCO, Dec 17 (Reuters) – The state of Arizona has sued Bank of America Corp (BAC.N) alleging the lender consistently misled consumers about its home loan modification process, a source familiar with the situation said.
The lawsuit, filed by Arizona Attorney General Terry Goddard’s office on Friday, accuses Bank of America of violating a 2009 consent judgment in which it committed to widespread loan modifications, according to a draft copy of the complaint obtained by Reuters.
The suit was filed in an Arizona state court. In it, Goddard’s office also accuses the bank of violating the state’s consumer fraud act.
Continue reading here…
Also, Nevada Attorney General sues too. Here is the story:
Las Vegas: Attorney General Catherine Cortez Masto announced today that her office is filing a lawsuit against Bank of America Corporation, N.A., BAC Home Loans Servicing, LP, Recon Trust Company ("Bank of America") for engaging in deceptive trade practices against Nevada homeowners.
The lawsuit, filed in the Eighth Judicial District of the State of Nevada, was triggered by consumer complaints and follows an extensive investigation into Bank of America's alleged deceptive practices involving its residential mortgage servicing, particularly its loan modification and foreclosure practices.
The Complaint alleges that Bank of America is:
Read on.
The lawsuit, filed by Arizona Attorney General Terry Goddard’s office on Friday, accuses Bank of America of violating a 2009 consent judgment in which it committed to widespread loan modifications, according to a draft copy of the complaint obtained by Reuters.
The suit was filed in an Arizona state court. In it, Goddard’s office also accuses the bank of violating the state’s consumer fraud act.
Continue reading here…
Also, Nevada Attorney General sues too. Here is the story:
Las Vegas: Attorney General Catherine Cortez Masto announced today that her office is filing a lawsuit against Bank of America Corporation, N.A., BAC Home Loans Servicing, LP, Recon Trust Company ("Bank of America") for engaging in deceptive trade practices against Nevada homeowners.
The lawsuit, filed in the Eighth Judicial District of the State of Nevada, was triggered by consumer complaints and follows an extensive investigation into Bank of America's alleged deceptive practices involving its residential mortgage servicing, particularly its loan modification and foreclosure practices.
The Complaint alleges that Bank of America is:
Read on.
New Survey – Servicers Continue to Wrongfully Initiate Foreclosures
4closurefraud:
A November 2010 survey by the National Association of Consumer Advocates (NACA) and the National Consumer Law Center (NCLC) demonstrates that mortgage servicers often initiate foreclosure proceedings improperly, either while a homeowner is awaiting a loan modification or due to improper fees or payment processing.
Foreclosure Initiation During the Loan Modification Process Is Still a Substantial Problem
• Almost 99% of consumer attorneys from 34 states represent homeowners placed in foreclosure while awaiting a loan modification.
• Over 15% of those respondents represent over 100 households suffering from this situation.
• Over 65% of the survey respondents stated that they represent more than 10 households who had been placed in foreclosure while awaiting a loan modification.
• Over 47% of the survey respondents stated that they represent more than 20 households who had been placed in foreclosure while awaiting a loan modification.
• In total, survey respondents reported representing over 2,500 homeowners placed in foreclosure while awaiting a loan modification.
The survey results demonstrate these practices are widespread.
• Over half of respondents represent homeowners who were placed into foreclosure due to misapplication of payments.
• Over half of respondents represent homeowners who were placed into foreclosure due to improper fees (e.g. late fees, broker-price opinions, inspection fees, attorney’s fees and other fees).
• Over half of respondents represent homeowners who were placed into foreclosure due to force-placed insurance.
• In total, survey respondents reported representing over 1,200 homeowners who had been placed into foreclosure due to misapplication of payments, improper fees, or force-placed insurance.
• Over 87% of the respondents represent homeowners who had been placed in foreclosure because the servicer did not properly accept the homeowner’s payments.
• Almost 90% of the respondents represent homeowners where a mortgage servicer initiated foreclosure proceedings while the homeowner was making payments as previously agreed upon.
• In total, survey respondents reported representing over 1,800 homeowners who had been placed into foreclosure despite making payments as agreed.
Full report below…
Servicers Continue to Wrongfully Initiate Foreclosures
A November 2010 survey by the National Association of Consumer Advocates (NACA) and the National Consumer Law Center (NCLC) demonstrates that mortgage servicers often initiate foreclosure proceedings improperly, either while a homeowner is awaiting a loan modification or due to improper fees or payment processing.
Foreclosure Initiation During the Loan Modification Process Is Still a Substantial Problem
• Almost 99% of consumer attorneys from 34 states represent homeowners placed in foreclosure while awaiting a loan modification.
• Over 15% of those respondents represent over 100 households suffering from this situation.
• Over 65% of the survey respondents stated that they represent more than 10 households who had been placed in foreclosure while awaiting a loan modification.
• Over 47% of the survey respondents stated that they represent more than 20 households who had been placed in foreclosure while awaiting a loan modification.
• In total, survey respondents reported representing over 2,500 homeowners placed in foreclosure while awaiting a loan modification.
The survey results demonstrate these practices are widespread.
• Over half of respondents represent homeowners who were placed into foreclosure due to misapplication of payments.
• Over half of respondents represent homeowners who were placed into foreclosure due to improper fees (e.g. late fees, broker-price opinions, inspection fees, attorney’s fees and other fees).
• Over half of respondents represent homeowners who were placed into foreclosure due to force-placed insurance.
• In total, survey respondents reported representing over 1,200 homeowners who had been placed into foreclosure due to misapplication of payments, improper fees, or force-placed insurance.
• Over 87% of the respondents represent homeowners who had been placed in foreclosure because the servicer did not properly accept the homeowner’s payments.
• Almost 90% of the respondents represent homeowners where a mortgage servicer initiated foreclosure proceedings while the homeowner was making payments as previously agreed upon.
• In total, survey respondents reported representing over 1,800 homeowners who had been placed into foreclosure despite making payments as agreed.
Full report below…
Servicers Continue to Wrongfully Initiate Foreclosures
Fannie and Freddie’s Regulator Opposes Reducing Mortgages for Struggling Homeowners
The Obama administration has been pushing for banks and investors to cut mortgage balances for homeowners who owe more than their home is worth. But the regulator for the biggest investors of them all -- the government-controlled Fannie Mae and Freddie Mac -- won't let the two do it.
The administration and some banks themselves have increasingly seen reducing the size of a borrower's loan -- what's known as principal reduction -- as an important tool for helping the quarter of all homeowners who are underwater on their mortgages. The Treasury Department told ProPublica that the imbalance between what borrowers owe and what their homes are worth is one of the "main causes" of homeowners defaulting on their loans.
The administration sees principal reduction as a win-win, keeping families in their homes and allowing owners of the mortgages to recoup more money than they would through foreclosures. The logic is that if homeowners owe closer to what their home is actually worth, it decreases the likelihood they will default on the loan even after its modified.
Fannie and Freddie would seem to be the perfect players to promote principal reduction to prevent foreclosures. They're under government control, and they own or guarantee about half of the country's mortgages, meaning they pay the loss if a homeowner defaults. Because of that dominance, they also set the tone for how companies manage, or "service" in industry parlance, delinquent loans.
Read on.
The administration and some banks themselves have increasingly seen reducing the size of a borrower's loan -- what's known as principal reduction -- as an important tool for helping the quarter of all homeowners who are underwater on their mortgages. The Treasury Department told ProPublica that the imbalance between what borrowers owe and what their homes are worth is one of the "main causes" of homeowners defaulting on their loans.
The administration sees principal reduction as a win-win, keeping families in their homes and allowing owners of the mortgages to recoup more money than they would through foreclosures. The logic is that if homeowners owe closer to what their home is actually worth, it decreases the likelihood they will default on the loan even after its modified.
Fannie and Freddie would seem to be the perfect players to promote principal reduction to prevent foreclosures. They're under government control, and they own or guarantee about half of the country's mortgages, meaning they pay the loss if a homeowner defaults. Because of that dominance, they also set the tone for how companies manage, or "service" in industry parlance, delinquent loans.
Read on.
SEC whistleblower complaint against Chase over credit card practices
Written by Biloxi
JP Morgan Chase has been hit with this latest scandal. It is not about the foreclosure fraud, robo-signing, or faulty paperwork process. It about JP Morgan Chase's credit card practices. Who is making this accusation? A former employee of JP Morgan Chase, Linda Almonte.
Ms. Almonte was a "mid-level executive" who "supervised employees across the litigation and post-judgment functions" of the credit card litigation department at JP Morgan Chase. Ms. Almonte no longer works for JP Morgan Chase because she was terminated from her position. In March of this year, Ms. Almonte sued the bank for wrongful termination. She has claimed that she was fired because she had refused to participate in the sale of 23,000 credit card accounts Chase had packaged for sale. Ms. Almonte claimed that 5,000 of the credit card accounts were listed the wrong amount owed and that thousands more had other problems according to her statement reported in Daily Finance. Now, Ms. Almonte filed a whistleblower complaint with the Securities and Exchange Commission (SEC) which adds more context and creditability to her lawsuit.
Ms. Almonte accuses JP Morgan Chase of illegal practices involving its credit card debt processes including robo-signing.
In. Ms. Almonte's November 30, 2010 letter to SEC, she alleged:
1. Chase Bank sold to third party debt buyers hundreds of millions of dollars worth of credit card accounts. . .when in fact Chase Bank executives knew that many of those accounts had incorrect and overstated balances.
3. Chase Bank executives routinely destroyed information and communications from consumers rather than incorporate that information into the consumer's credit card file, including bankruptcy notices, powers of attorney, notice of cancellation of auto-pay, proof of payments and letters from debt settlement companies.
4. Chase Bank executives mass-executed thousands of affidavits in support of Chase Banks collection efforts and those Chase Bank executives did not have personal knowledge of the facts set forth in the affidavits.
5. When senior Chase Bank executives were made aware of these systemic problems, senior Chase Bank executives -- rather than remedy the problems -- immediately fired the whistleblower and attempted to cover up these problems
Ms. Almonte is the first whistleblower and the first in her position to allow her letter to made public and to make such charges against a large bank publicly. Why is Ms. Almonte now going public with her letter on JP Morgan Chase's credit card practices? According to Ms. Almonte's lawyer, George Pressly, Mr. Pressly said, "Her disclosures may bring into question Chase Bank's representations regarding Chase Bank's own securities but may also bear on certain asset-backed securities where the underlying assets are Chase Bank credit card accounts."
Ms. Almonte said that a large volume of documents in her possession as evidence that would be available for review to SEC and her 'first-hand' observations. These direct observations include "witnessing the head of Chase's pre-litigation group 'shred' material communications from borrowers, such as 'bankruptcy notices, settlement communications, and debt settlement company communications' rather than entering the information into Chase's database." Also, Ms. Almonte alleged that "senior Chase Bank executives instructed Chase Bank employees remove important information and data from Litigation Accounts because the retention of the information would have resulted in increased computer hardware costs. Both types of record destruction rendered the accounts inaccurate."
What about the allegations of robo-signing? Mr. Pressly wrote:
"On numerous occasions, Ms. Almonte witnessed these Affidavit Signers work through at times 3-feet tall stacks of Judgment Affidavits at once during weekly multi-hour long, non-related company meetings. The notaries were not present at these meetings. The Affidavit Signers simply relied on hourly workers to reconcile amounts owed and then treated the actual execution of the affidavits as busy work to be performed while the Affidavit Signers could focus on other matters."
In October, New York Times newspaper reported on robo-signing problems with credit card collections. but, Ms. Almonte provides more creditability as a former JP Morgan Chase employee to robo-signing issues with credit card collections.
Ms. Almonte's whistleblower complaint proves a full picture background on how so many credit card accounts could contain flawed data in JP Morgan Chase and opens the possibility probe of other illegal credit card practices involving other banks. As SEC expands their mortgage probe into investigating the early stages by the large banks of packaging up mortgages for sale to investors, SEC may want to broaden their investigation into whether JP Morgan Chase executives knew that the mortgage loans weren't properly transferred to the trusts that issued the securities. If Ms. Almonte's allegation that the Chase bank executives knew of the illegal credit card practices is proven to be true, it leaves a bigger question to how much more illegal practices performed at JP Morgan Chase that Chase bank executives knew. It is my only hope that Ms. Almonte's complaint is not swept under the rug because her complaint [if proven true] may lead to charges against JP Morgan Chase. JP Morgan Chase denies her claims.
Here is Ms. Almonte's letter:
Almonte SEC Letter
JP Morgan Chase has been hit with this latest scandal. It is not about the foreclosure fraud, robo-signing, or faulty paperwork process. It about JP Morgan Chase's credit card practices. Who is making this accusation? A former employee of JP Morgan Chase, Linda Almonte.
Ms. Almonte was a "mid-level executive" who "supervised employees across the litigation and post-judgment functions" of the credit card litigation department at JP Morgan Chase. Ms. Almonte no longer works for JP Morgan Chase because she was terminated from her position. In March of this year, Ms. Almonte sued the bank for wrongful termination. She has claimed that she was fired because she had refused to participate in the sale of 23,000 credit card accounts Chase had packaged for sale. Ms. Almonte claimed that 5,000 of the credit card accounts were listed the wrong amount owed and that thousands more had other problems according to her statement reported in Daily Finance. Now, Ms. Almonte filed a whistleblower complaint with the Securities and Exchange Commission (SEC) which adds more context and creditability to her lawsuit.
Ms. Almonte accuses JP Morgan Chase of illegal practices involving its credit card debt processes including robo-signing.
In. Ms. Almonte's November 30, 2010 letter to SEC, she alleged:
1. Chase Bank sold to third party debt buyers hundreds of millions of dollars worth of credit card accounts. . .when in fact Chase Bank executives knew that many of those accounts had incorrect and overstated balances.
3. Chase Bank executives routinely destroyed information and communications from consumers rather than incorporate that information into the consumer's credit card file, including bankruptcy notices, powers of attorney, notice of cancellation of auto-pay, proof of payments and letters from debt settlement companies.
4. Chase Bank executives mass-executed thousands of affidavits in support of Chase Banks collection efforts and those Chase Bank executives did not have personal knowledge of the facts set forth in the affidavits.
5. When senior Chase Bank executives were made aware of these systemic problems, senior Chase Bank executives -- rather than remedy the problems -- immediately fired the whistleblower and attempted to cover up these problems
Ms. Almonte is the first whistleblower and the first in her position to allow her letter to made public and to make such charges against a large bank publicly. Why is Ms. Almonte now going public with her letter on JP Morgan Chase's credit card practices? According to Ms. Almonte's lawyer, George Pressly, Mr. Pressly said, "Her disclosures may bring into question Chase Bank's representations regarding Chase Bank's own securities but may also bear on certain asset-backed securities where the underlying assets are Chase Bank credit card accounts."
Ms. Almonte said that a large volume of documents in her possession as evidence that would be available for review to SEC and her 'first-hand' observations. These direct observations include "witnessing the head of Chase's pre-litigation group 'shred' material communications from borrowers, such as 'bankruptcy notices, settlement communications, and debt settlement company communications' rather than entering the information into Chase's database." Also, Ms. Almonte alleged that "senior Chase Bank executives instructed Chase Bank employees remove important information and data from Litigation Accounts because the retention of the information would have resulted in increased computer hardware costs. Both types of record destruction rendered the accounts inaccurate."
What about the allegations of robo-signing? Mr. Pressly wrote:
"On numerous occasions, Ms. Almonte witnessed these Affidavit Signers work through at times 3-feet tall stacks of Judgment Affidavits at once during weekly multi-hour long, non-related company meetings. The notaries were not present at these meetings. The Affidavit Signers simply relied on hourly workers to reconcile amounts owed and then treated the actual execution of the affidavits as busy work to be performed while the Affidavit Signers could focus on other matters."
In October, New York Times newspaper reported on robo-signing problems with credit card collections. but, Ms. Almonte provides more creditability as a former JP Morgan Chase employee to robo-signing issues with credit card collections.
Ms. Almonte's whistleblower complaint proves a full picture background on how so many credit card accounts could contain flawed data in JP Morgan Chase and opens the possibility probe of other illegal credit card practices involving other banks. As SEC expands their mortgage probe into investigating the early stages by the large banks of packaging up mortgages for sale to investors, SEC may want to broaden their investigation into whether JP Morgan Chase executives knew that the mortgage loans weren't properly transferred to the trusts that issued the securities. If Ms. Almonte's allegation that the Chase bank executives knew of the illegal credit card practices is proven to be true, it leaves a bigger question to how much more illegal practices performed at JP Morgan Chase that Chase bank executives knew. It is my only hope that Ms. Almonte's complaint is not swept under the rug because her complaint [if proven true] may lead to charges against JP Morgan Chase. JP Morgan Chase denies her claims.
Here is Ms. Almonte's letter:
Almonte SEC Letter
Friday, December 17, 2010
Banks to Fed: Water down mortgage rule taking away homeowners' rights
Banks have opened up a new front in their battle with homeowners over faulty foreclosures -- they are asking the Federal Reserve to water down homeowners' rights to put the kibosh on mortgages based on misstatements.
And time is of the essence in this battle. Banks hope to win the concessions before July 2011, when the newly formed Consumer Financial Protection Bureau takes over regulation of this issue. Banks fear the CFPB will be less sympathetic to their cause, according to Bloomberg, which reported on the matter yesterday.
"Anyone servicing loans is now pushing the Federal Reserve" to follow through on its Sept. 24 proposal to basically gut the rescission law before oversight moves to Elizabeth Warren's CFPB, said David Lykken, with consultant Mortgage Banking Solutions...
Read on.
And time is of the essence in this battle. Banks hope to win the concessions before July 2011, when the newly formed Consumer Financial Protection Bureau takes over regulation of this issue. Banks fear the CFPB will be less sympathetic to their cause, according to Bloomberg, which reported on the matter yesterday.
"Anyone servicing loans is now pushing the Federal Reserve" to follow through on its Sept. 24 proposal to basically gut the rescission law before oversight moves to Elizabeth Warren's CFPB, said David Lykken, with consultant Mortgage Banking Solutions...
Read on.
A bombshell deposition by LPS employee
Written by Biloxi
When it rains, it pours for the Jacksonville, Florida based Lender Processing Services Inc. Lender Processing Services, Inc, (LPS) provides mortgage and foreclosure processing services for financial institutions. Currently, LPS has been under investigation for several months by federal and state authorities over allegations that one of its subsidiaries, Alpharetta, Ga.-based Docx LLC, has falsified documents used in foreclosure proceedings.
Also, LPS faces lawsuits that allege that the company engaged in illegal fee-splitting arrangements with law firms in exchange for referrals in bankruptcy and foreclosure cases. The company denies these allegations and said that when it discovered potential problems with the foreclosure documents that it shut down the DocX operation.
Well, the latest bombshell follows with a 325 page deposition of LPS employee Bill Newland. Here is an excerpt of Mr. Newland's deposition obtained by by Stopforeclosurefraud website.
2 Q Sure. Are there any attorneys who are not
3 members of the Fidelity — or the LPS attorney network
4 who can access your Process Management system?
5 A Not that I’m aware of.
6 Q And is it a fact that the only attorneys who
7 are using Process Management are attorneys who have
8 signed a referral agreement with LPS?
9 A That would be correct.
10 Q So, while your clients are free to choose
11 whomever as a foreclosing attorney, if they are an MSP
12 user and they are an LPS — they have an LPS agreement
13 with you for Default Solutions, the only attorneys
14 available on LPS system are attorneys who have signed
15 a contract with LPS?
16 A That have signed a contract with LPS, yes.
3 Q So I just want to be sure. What you’re
4 testifying to is that there is no compensation ever
5 paid by the servicer to LPS Default Solutions for all
6 this work that it does on behalf of the servicer with
7 respect to the foreclosure?
8 A No.
9 Q There is compensation or there is not
10 compensation?
11 A No, there’s no compensation.
12 Q Is it your testimony then that the only fees
13 which LPS Default Solutions collects with respect to
14 the foreclosure of any given loan is the
15 administrative support fee charged to the network
16 attorneys?
17 A Yes.
18 Q And the division of LPS Default Solutions
19 which we are here about today and which you are
20 testifying as a 30(b)(6) representative, the only
21 source of income it derives for its work with respect
22 to foreclosure is the administrative support fee?
23 A That’s my understanding.
Mr. Newland just gave such damning information that I find it real hard for Lender Processing Service to defend this damaging information. The real question is: Will more shoes drop for LPS?
When it rains, it pours for the Jacksonville, Florida based Lender Processing Services Inc. Lender Processing Services, Inc, (LPS) provides mortgage and foreclosure processing services for financial institutions. Currently, LPS has been under investigation for several months by federal and state authorities over allegations that one of its subsidiaries, Alpharetta, Ga.-based Docx LLC, has falsified documents used in foreclosure proceedings.
Most of the instant filing of foreclosure documents was mostly prepared by clerical workers and not lawyers. LPS faces the same dilemma in alleged falsifying documents as the major banks are accused of using robo-signers or bank hires with little to no experience that processed and signed foreclosure documents without verification.
Also, LPS faces lawsuits that allege that the company engaged in illegal fee-splitting arrangements with law firms in exchange for referrals in bankruptcy and foreclosure cases. The company denies these allegations and said that when it discovered potential problems with the foreclosure documents that it shut down the DocX operation.
Well, the latest bombshell follows with a 325 page deposition of LPS employee Bill Newland. Here is an excerpt of Mr. Newland's deposition obtained by by Stopforeclosurefraud website.
EXCERPTS:
2 Q Sure. Are there any attorneys who are not
3 members of the Fidelity — or the LPS attorney network
4 who can access your Process Management system?
5 A Not that I’m aware of.
6 Q And is it a fact that the only attorneys who
7 are using Process Management are attorneys who have
8 signed a referral agreement with LPS?
9 A That would be correct.
10 Q So, while your clients are free to choose
11 whomever as a foreclosing attorney, if they are an MSP
12 user and they are an LPS — they have an LPS agreement
13 with you for Default Solutions, the only attorneys
14 available on LPS system are attorneys who have signed
15 a contract with LPS?
16 A That have signed a contract with LPS, yes.
3 Q So I just want to be sure. What you’re
4 testifying to is that there is no compensation ever
5 paid by the servicer to LPS Default Solutions for all
6 this work that it does on behalf of the servicer with
7 respect to the foreclosure?
8 A No.
9 Q There is compensation or there is not
10 compensation?
11 A No, there’s no compensation.
12 Q Is it your testimony then that the only fees
13 which LPS Default Solutions collects with respect to
14 the foreclosure of any given loan is the
15 administrative support fee charged to the network
16 attorneys?
17 A Yes.
18 Q And the division of LPS Default Solutions
19 which we are here about today and which you are
20 testifying as a 30(b)(6) representative, the only
21 source of income it derives for its work with respect
22 to foreclosure is the administrative support fee?
23 A That’s my understanding.
Mr. Newland just gave such damning information that I find it real hard for Lender Processing Service to defend this damaging information. The real question is: Will more shoes drop for LPS?
Biloxi Buzz for Friday
- Lender Processing Services Makes False Statements About Pending Litigation in SEC Filing
Julian Assange Freed From Prison
Boeing Whistleblowers Warn Of 'Catastrophic' Event
Man Who Leaked Pentagon Papers Defends WikiLeaks
House Passes Obama-GOP Tax Cut Deal, Sending Bill To President
Federal Government Cuts Off Recession Relief Money To States
Visa, MasterCard Plunge as Fed Issues Rules to Cut Debit Fees — Visa Inc. and MasterCard Inc. plunged more than 10 percent in New York trading after the Federal Reserve Board proposed rules that could slash debit-card interchange fees by 90 percent. — The new rules, posted today by the Fed … Blake Edwards, Prolific Comedy Director, Dies at 88 — Blake Edwards, a writer and director who became a Hollywood master of screwball farces and rude comedies like “Victor/Victoria” and the “Pink Panther” movies, died Wednesday night in Santa Monica, Calif. He was 88.
House Passes Obama-GOP Tax Cut Deal, Sending Bill To President
Federal Government Cuts Off Recession Relief Money To States
Visa, MasterCard Plunge as Fed Issues Rules to Cut Debit Fees — Visa Inc. and MasterCard Inc. plunged more than 10 percent in New York trading after the Federal Reserve Board proposed rules that could slash debit-card interchange fees by 90 percent. — The new rules, posted today by the Fed …
Blake Edwards, Prolific Comedy Director, Dies at 88 — Blake Edwards, a writer and director who became a Hollywood master of screwball farces and rude comedies like “Victor/Victoria” and the “Pink Panther” movies, died Wednesday night in Santa Monica, Calif. He was 88.
Last week's poll had asked:
Do you approve President Obama's deal on the tax cuts plan? JL readers answered no. This week's poll is now up.
[NYSC] JUDGE SCHACK SLAMS CITI FOR NOT COMPLYING WITH NEW RULE “COURT DOES NOT WORK FOR CITI” CitiMortgage, Inc. v Nunez
Stopforeclosurefraud:
CitiMortgage, Inc., Plaintiff,
against
Angela Nunez, et. al., Defendant.
EXCERPTS:
The Court does not work for CITI and cannot wait for CITI, a multi-billion dollar financial behemoth to get its “act” together.
CitiMortgage Inc v. Nunez
CitiMortgage, Inc., Plaintiff,
against
Angela Nunez, et. al., Defendant.
EXCERPTS:
The Court does not work for CITI and cannot wait for CITI, a multi-billion dollar financial behemoth to get its “act” together.
CitiMortgage Inc v. Nunez
NY JUDGE DENIES 127 FORECLOSURES PURSUANT TO ADMINISTRATIVE ORDERS FROM CHIEF JUDGE, ROBO SIGNING
EXCERPT:
Pursuant to an Administrative Order of the Chief Judge, dated October 20, 2010, all residential mortgage foreclosure actions require an affirmation from the attorney representing the plaintiff/lender/bank, as stated in the affirmation attached to this order, that he/she has inspected all documents.
The plaintiff is also directed on any future application to provide a copy of this Court’s order, the prior application/motion papers and an updated affidavit of regularity/merit from the plaintiff/lender/bank’s representative that he/she has reviewed the file in this case and that he/she documents that all paperwork is correct. The plaintiff/lender/bank’s representative shall also provide in said affidavit of regularity her/his position, length of service, training, educational background and a listing of the documents and financial records reviewed substantiating the review of the amounts owed. The affidavit should also include that she/he has personally reviewed both the mortgage and the note and any assignments for accuracy.
The plaintiff bears the burden of proof in a summary judgment proceeding and judgment will only be awarded when all doubt is removed as to the existence of any triable issue of fact. Under the present circumstances, where there have been numerous instances alleged as to “robo” signing of documents and a failure to attest to the accuracy of documents in mortgage foreclosure proceedings, the plaintiff must prove its entitlement to foreclose on a mortgage as a matter of law by establishing the regularity and accuracy of the financial documentary evidence submitted and the Court will be scrutinizing all documents for accuracy.
The foregoing constitutes the decision of the Court.
SEE ALL 127 Below…
Source: Stopforeclosurefraud
127
Pursuant to an Administrative Order of the Chief Judge, dated October 20, 2010, all residential mortgage foreclosure actions require an affirmation from the attorney representing the plaintiff/lender/bank, as stated in the affirmation attached to this order, that he/she has inspected all documents.
The plaintiff is also directed on any future application to provide a copy of this Court’s order, the prior application/motion papers and an updated affidavit of regularity/merit from the plaintiff/lender/bank’s representative that he/she has reviewed the file in this case and that he/she documents that all paperwork is correct. The plaintiff/lender/bank’s representative shall also provide in said affidavit of regularity her/his position, length of service, training, educational background and a listing of the documents and financial records reviewed substantiating the review of the amounts owed. The affidavit should also include that she/he has personally reviewed both the mortgage and the note and any assignments for accuracy.
The plaintiff bears the burden of proof in a summary judgment proceeding and judgment will only be awarded when all doubt is removed as to the existence of any triable issue of fact. Under the present circumstances, where there have been numerous instances alleged as to “robo” signing of documents and a failure to attest to the accuracy of documents in mortgage foreclosure proceedings, the plaintiff must prove its entitlement to foreclose on a mortgage as a matter of law by establishing the regularity and accuracy of the financial documentary evidence submitted and the Court will be scrutinizing all documents for accuracy.
The foregoing constitutes the decision of the Court.
SEE ALL 127 Below…
Source: Stopforeclosurefraud
127
Thursday, December 16, 2010
Ohio Attorney General Richard Cordray Selected to Head the Enforcement Division of the New Consumer Financial Protection Bureau
(Reuters) – The Obama administration has selected Ohio Attorney General Richard Cordray, a vocal critic of the banking industry, to head the enforcement division of the new Consumer Financial Protection Bureau, according to a Treasury official.
Cordray, a Democrat, has been a leader among state attorneys general in the probe into mortgage foreclosure practices. The probe is examining whether banks submitted faulty legal documents in foreclosure proceedings.
The Obama administration will announce the selection of Cordray later today, the Treasury official said. Cordray lost his re-election bid in November to Republican Mike DeWine.
Cordray emerged as a key figure in the foreclosure probe when he announced in October that he would sue national mortgage servicer GMAC Mortgage and its parent company, Ally Financial, alleging fraud and violations of Ohio’s consumer laws.
Continue reading here…
Cordray, a Democrat, has been a leader among state attorneys general in the probe into mortgage foreclosure practices. The probe is examining whether banks submitted faulty legal documents in foreclosure proceedings.
The Obama administration will announce the selection of Cordray later today, the Treasury official said. Cordray lost his re-election bid in November to Republican Mike DeWine.
Cordray emerged as a key figure in the foreclosure probe when he announced in October that he would sue national mortgage servicer GMAC Mortgage and its parent company, Ally Financial, alleging fraud and violations of Ohio’s consumer laws.
Continue reading here…
Firm may skirt millions in property fees
Attorney General Martha Coakley is trying to determine whether a lender-created company that tracks mortgage loan data has failed to pay millions of dollars in property recording fees in Massachusetts.
Coakley is taking aim at the little-known but powerful Reston, Va., company whose members include Bank of America Corp., JPMorgan Chase, and other major lenders.
The company, Mortgage Electronic Registration Systems Inc., oversees a database of about 31 million mortgages, about half of the active loans in the United States.
As concern about foreclosure practices mounts across the country, Mortgage Electronic Registration Systems is increasingly being questioned by regulators, lawyers, and housing advocates about the way it operates.
Essex County’s register of deeds, John L. O’Brien Jr., last month asked Coakley to investigate the company, known as MERS. He said that by using its own database for property transfers, MERS does not pay recording fees or disclose the transactions, as Massachusetts law requires.
O’Brien estimated that in Essex County alone, $10 million was lost over the past decade because MERS failed to pay a $75 fee each time a mortgage was transferred between lenders.
“They created their own registry of deeds,’’ he said. “They have to record these assignments. The taxpayers deserve these fees.’’
A spokeswoman for Coakley said her office is looking at the issues O’Brien raised.
Coakley is taking aim at the little-known but powerful Reston, Va., company whose members include Bank of America Corp., JPMorgan Chase, and other major lenders.
The company, Mortgage Electronic Registration Systems Inc., oversees a database of about 31 million mortgages, about half of the active loans in the United States.
As concern about foreclosure practices mounts across the country, Mortgage Electronic Registration Systems is increasingly being questioned by regulators, lawyers, and housing advocates about the way it operates.
Essex County’s register of deeds, John L. O’Brien Jr., last month asked Coakley to investigate the company, known as MERS. He said that by using its own database for property transfers, MERS does not pay recording fees or disclose the transactions, as Massachusetts law requires.
O’Brien estimated that in Essex County alone, $10 million was lost over the past decade because MERS failed to pay a $75 fee each time a mortgage was transferred between lenders.
“They created their own registry of deeds,’’ he said. “They have to record these assignments. The taxpayers deserve these fees.’’
A spokeswoman for Coakley said her office is looking at the issues O’Brien raised.
Biloxi Buzz for Thursday
Senator Whitehouse testifies on foreclosure-prevention measure
U.S. Sues BP Over Gulf Spill
Senate Passes Tax Deal
Mark Madoff's Body Cremated, His Widow Breaks Her Silence
Time Names Mark Zuckerberg 'Person Of The Year
Goldman Execs to Get $111 Million in 2007, 2009 Bonuses — Goldman Sachs Group Inc. Chief Executive Officer Lloyd C. Blankfein and his top deputies will collect about $111.3 million in stock next month in a delayed payoff from last year and their record-setting 2007 bonuses.
Ethics panel extending probe of three lawmakers into the next Congress — The ethics committee has extended an investigation into the fundraising of three members in connection to their votes on the financial regulation law. — Ethics committee Chairwoman Zoe Lofgren (D-Calif.) …
Congress' Job Approval Rating Worst in Gallup HistoryThirteen percent approve of the way Congress is handling its job — PRINCETON, NJ — Americans' assessment of Congress has hit a new low, with 13% saying they approve of the way Congress is handling its job.
House approves 'Don't ask' repeal, 250-175 — The House on Wednesday overwhelmingly passed legislation to repeal the ban on openly gay people serving in the military. — Lawmakers approved a standalone repeal bill by a vote of 250-175. Openly gay Rep. Barney Frank (D-Mass.) gaveled the vote closed.
DeMint will force readings of START Treaty and omnibus bill — Sen. Jim DeMint (R-S.C.) will force readings of both a nuclear arms treaty and $1.1 trillion spending bill that could eat up hours of the remaining lame-duck Congress. — DeMint will invoke a senatorial privilege
Feds Indict Former Detroit Mayor Kwame Kilpatrick
According to local news reports, former Detroit mayor Kwame Kilpatrick has been indicted on federal corruption charges.
Kilpatrick was charged along with his father, Bernard Kilpatrick, and several other former city officials: city contractor Bobby Ferguson, former top Kilpatrick aide Derrick Miller and former water department chief Victor Mercado, according to the Free Press.
According to the Detroit News, the men are being charged under Racketeer Influenced and Corrupt Organizations, or RICO, a law usually used to prosecute mobsters and other perpetrators of organized crime.
Kilpatrick was charged along with his father, Bernard Kilpatrick, and several other former city officials: city contractor Bobby Ferguson, former top Kilpatrick aide Derrick Miller and former water department chief Victor Mercado, according to the Free Press.
According to the Detroit News, the men are being charged under Racketeer Influenced and Corrupt Organizations, or RICO, a law usually used to prosecute mobsters and other perpetrators of organized crime.
Evicted homeowner slams House Committee at hearing
Written by Biloxi
On Wednesday, the House Judiciary Committee, chaired by Rep. Hank Johnson (D-GA) held a hearing on the causes and effects of the mortgage foreclosure crisis as well as foreclosure practices by mortgages servicers. The Committee heard from consumer advocates as well as an attorney involved in foreclosure cases. But, there was another witness to testify to the Committee: A former homeowner who lost her family home in Detroit, Michigan by foreclosure. And this woman's testimony was a very compelling.
Her name is Sandra Hines. Ms. Hines' testimony certainly got my attention. And without notes for her testimony, Ms. Hines let the Committee have it and called them. Here are some of the excerpts of her testimony in which I wrote down in which she blasted the Committee:
“Why should people have to come here and tell you this when you see millions and millions of people in foreclosure….Don’t you want to do something about it….All of you got a home, you got money, you have health care, you’ve got the best insurance anyone can have….the bottom line, don’t just listen, do something about it.”
Here is the entire hearing on video. Click here. Ms. Hines' testimony starts at 38:04. I was very curious and wanted to find out more about Ms. Hines. So, I decided to do some research about her lost of her family home. Here is the story of how Ms. Hines was a victim of foreclosure. Seth Freed Wessler, reporter for Colorlines.com,
did a piece on Ms. Hines's foreclosure loss in July of this year. Here is Ms. Hines' story:
In the summer of 2007, the Hines family took out an adjustable rate refinance loan from H&R Block in order to do some repairs on the house. When their monthly payment began climbing after just three months, they couldn't keep up with payments. As they rapidly went into default in their home, they were evicted from their home of 38 years just days before Christmas. Ms. Hines described how her two sisters, niece, and she watched the bailiffs throw out their belongings and padlock the doors on their home. It's no secret that the state of Michigan is number one in U.S. home foreclosures. Michigan’s foreclosure rate is driven faster because of the unemployment rate. Last month, Michigan's jobless rate was 12.8 percent which is the second highest in the country behind Nevada.
Currently, Ms. Sandra Hines is an active vocal member of Detroit-based organization Moratorium Now, an organization that fights to keep people in their homes and to implement moratoriums on foreclosures and evictions on the state level. ColorLines.com's Seth Freed Wessler profiled Sandra Hines during the 2010 US Social Forum where both Wessler and Hines visited her old neighborhood to discuss the effectiveness of racial predatory lending. Here is the video, Click here.
Sandra Hines is the first homeowner to testify to the House Committee to provide her story as well as frustrations to why the banks are not held accountable for their actions for this foreclosure mistakes as well as fraud. Ms. Hines’s testimony represented the frustrations of many distressful homeowners. Ms. Hines’ story needed to be heard. We certainly need more Sandra Hines in this country to testify in front of the House committees as well as Senate committees because American people are losing the American dream of homeownership while the banks are stealing the American dream. As Ms. Hines so poignantly said to the House Committee," Don't just listen, do something about it." The question is: Will they?
Wednesday, December 15, 2010
JP Morgan Chase ransacked home of man on his death bed
Summary
J.D. Butler was on his death bed when JP Morgan Chase invaded his home, ransacked it and left it in shambles, according to his daughter. Celeste Butler says she couldn't get any answers from Chase, so her only option was to sue.
Chase says (an elderly veteran) had fallen behind in payments. And if a loan is delinquent, Chase says it has the right to enter a house. 'We followed our policy to maintain a mortgaged property..." The daughter says the bank told her the payment was up to date.
Read on.
J.D. Butler was on his death bed when JP Morgan Chase invaded his home, ransacked it and left it in shambles, according to his daughter. Celeste Butler says she couldn't get any answers from Chase, so her only option was to sue.
Chase says (an elderly veteran) had fallen behind in payments. And if a loan is delinquent, Chase says it has the right to enter a house. 'We followed our policy to maintain a mortgaged property..." The daughter says the bank told her the payment was up to date.
Read on.
Sen. Ted Kaufman Introduces COP’s December Report
The Congressional Oversight Panel has a new HAMP report out. Like all COP reports, it’s long and chock full o’ analysis. There’s an executive summary up front, but some of the most important points are only in the report proper (especially pp. 100-111). I think there are three big things to take away from the report:
• First, 21% of HAMP permanent modifications have redefaulted in their first year. That’s ghastly given that HAMP permanent modifications have an additional 3 months of trial seasoning and fairly serious payment reductions. The fact that Treasury hasn’t been reporting on this itself, much less analyzing the reasons for the redefaults is disgraceful.
• Second, if past trends continue, starting this month, there will be more HAMP redefaults each month than new permanent modifications. That means that the total number of active permanent modifications will peak at around 500,000 and decline.
• Third, it looks as if Treasury will only end up spending $4B for HAMP out of the $75B allocated for homeowner assistance.
Congressional Oversight Panel December Oversight Report
• First, 21% of HAMP permanent modifications have redefaulted in their first year. That’s ghastly given that HAMP permanent modifications have an additional 3 months of trial seasoning and fairly serious payment reductions. The fact that Treasury hasn’t been reporting on this itself, much less analyzing the reasons for the redefaults is disgraceful.
• Second, if past trends continue, starting this month, there will be more HAMP redefaults each month than new permanent modifications. That means that the total number of active permanent modifications will peak at around 500,000 and decline.
• Third, it looks as if Treasury will only end up spending $4B for HAMP out of the $75B allocated for homeowner assistance.
Congressional Oversight Panel December Oversight Report
Barclays, JPMorgan Violated Korean Derivatives Rules - Regulator
SEOUL (Dow Jones)--The South Korean units of Barclays PLC (BCS) and JPMorgan Chase & Co. (JPM) have been warned by regulators for selling currency derivatives that broke local regulations and have been asked to punish the responsible officials.
According to the Financial Supervisory Service, JPMorgan sold high-risk currency options in 2007 that crimped the ability of six companies to effectively hedge against currency volatility, while Barclays sold currency derivatives to three exporting companies between June 2006 and November 2007 which resulted in them incurring losses.
A spokeswoman at JPMorgan's Seoul office said the company has noted "receipt of a minor caution from the FSS." A Barclays official said the company won't comment on the matter.
An FSS spokesman said the warnings won't necessarily lead to the investments banks being punished unless they continuously break local rules.
An official at the financial regulator's banking service division said the moves are the result of regular investigations in 2009 into possible improprieties at banks.
Read on.
According to the Financial Supervisory Service, JPMorgan sold high-risk currency options in 2007 that crimped the ability of six companies to effectively hedge against currency volatility, while Barclays sold currency derivatives to three exporting companies between June 2006 and November 2007 which resulted in them incurring losses.
A spokeswoman at JPMorgan's Seoul office said the company has noted "receipt of a minor caution from the FSS." A Barclays official said the company won't comment on the matter.
An FSS spokesman said the warnings won't necessarily lead to the investments banks being punished unless they continuously break local rules.
An official at the financial regulator's banking service division said the moves are the result of regular investigations in 2009 into possible improprieties at banks.
Read on.
Bank of America dings credit score over a “where’s the note?” ask
Let’s imagine the following scenario: You have a Jumbo mortgage with Bank of America. You are a good customer, do your banking with BofA, and you have never missed a payment. In fact, you always send your mortgage in on time.
But this fraudclosure mess has you curious. You wonder who actually holds your note, how many times its been sold, what MERS involvement is.
With your curiosity piqued, you decide to ask Bank of America where your actual mortgage note is, and who is holding it.
That is what long time BP reader SM did. He writes in to note what happened:
“FYI Just to let you know I ended up doing Where’s the Note and it resulted in this for me, see the 2 reported disputes in the attached screenshots below for my Jumbo 1st mortgage. 40 point hit on my scores. I will be speaking with an attorney soon. We need to get a warning out (SEIU has not responded).”
That is astonishing –
SM included a snapshot of his Credit report (Nice payment history!):
Bank regulators examine foreclosure files
WASHINGTON (MarketWatch) — In the wake of revelations about foreclosure-documentation errors at big banks, regulators are reviewing files in response to concerns that mortgage-servers are improperly racing documents through the foreclosure process, a senior government official disclosed Tuesday.
“In reviewing these files, examiners are checking for a documented audit trail that demonstrates that data and information in foreclosure affidavits and claims are accurate and comply with state laws,” John Walsh, the acting Comptroller of the Currency, wrote in a letter to Democratic lawmakers that was obtained by MarketWatch.
Contractual obligations
Rep. Brad Miller of North Carolina and nine fellow House Democrats had written to Walsh, urging that regulators review files to ensure the documents satisfy contractual representations and warranties for the mortgages in question.
“Since this mortgage mess has blown up, it has been unclear to me whether they are looking at these issues,” Miller said in an interview. “It sounds like they are now looking at the right things.”
Read on.
“In reviewing these files, examiners are checking for a documented audit trail that demonstrates that data and information in foreclosure affidavits and claims are accurate and comply with state laws,” John Walsh, the acting Comptroller of the Currency, wrote in a letter to Democratic lawmakers that was obtained by MarketWatch.
Contractual obligations
Rep. Brad Miller of North Carolina and nine fellow House Democrats had written to Walsh, urging that regulators review files to ensure the documents satisfy contractual representations and warranties for the mortgages in question.
“Since this mortgage mess has blown up, it has been unclear to me whether they are looking at these issues,” Miller said in an interview. “It sounds like they are now looking at the right things.”
Read on.
Iowa AG Miller says bank executives who broke the law could face jail
Iowa Attorney General Tom Miller on Tuesday told homeowners at risk of foreclosure that he supports a settlement with the big banks that requires significant principal rate reductions, loan modifications, compensation for citizens defrauded of their homes and criminal prosecutions against big bank executives who broke the law.
“We will put people in jail,” Miller said, in response to questioning. He later added: “So when people misrepresent the homeowners, they lie to them, they cheat them out of their homes, we believe that should be a criminal case.”
Miller said one of the main tools needs to be principal reductions, which would reduce loan principal for homeowners who owe more on their mortgage than their home is now worth. The practice was used during the farm crisis of the 1980s.
“There should be some kind of compensation system for people who have been harmed,” he said. “And the foreclosure process should stop while loan modifications begin. To have a race between foreclosures and modifications to see which happens first is insane.”
http://iowaindependent.com/48923/miller-says-bank-executives-who-broke-the-law-could-face-jail
“We will put people in jail,” Miller said, in response to questioning. He later added: “So when people misrepresent the homeowners, they lie to them, they cheat them out of their homes, we believe that should be a criminal case.”
Miller said one of the main tools needs to be principal reductions, which would reduce loan principal for homeowners who owe more on their mortgage than their home is now worth. The practice was used during the farm crisis of the 1980s.
“There should be some kind of compensation system for people who have been harmed,” he said. “And the foreclosure process should stop while loan modifications begin. To have a race between foreclosures and modifications to see which happens first is insane.”
http://iowaindependent.com/48923/miller-says-bank-executives-who-broke-the-law-could-face-jail
Biloxi Buzz for Wednesday
CalPERS suspends mortgage program for members
Postman Arrested For Delivering Mail In The Nude
Air Force Blocks Sites With Leaked Cables — The U.S. Air Force is blocking its personnel from using work computers to view the websites of the New York Times and other major publications that have posted secret material obtained by WikiLeaks, people familiar with the matter say.
GOP donors: We'll leave if Steele stays — Some of the Republican Party's most prominent donors reacted Tuesday with shock — and then fury — to Michael Steele's decision to seek re-election, bluntly warning that they would not raise money for the party if the controversial chairman wins another term.
Financial Crisis Panel In Turmoil As Republicans Defect; Plan To Blame Government For CrisisFederal Government drops charges against Cheney, Halliburton
The Federal Government has dropped charges against former United States (U.S.) Vice President, Richard Bruce ‘Dick’ Cheney, and other officials of Halliburton in the multi-million dollar bribe-for-contract scandal.
The development is sequel to an agreement reached between Nigerian officials in the negotiating team and top officials of the United States and Halliburton in a meeting held in London last weekend.
At the meeting, Halliburton agreed to pay about N20 billion as criminal penalty, while promising to liaise with the United States to recover the outstanding $132 million which is currently frozen in Switzerland.
It was gathered that former U.S. President, George Bush (snr) and former Secretary of State, James Baker, were part of the deliberations through conference calls.
The Attorney General of the Federation and Justice Minister, Mr. Mohammed Bello Adoke (SAN) led Nigeria’s team at the negotiations which included the Secretary of the Economic and Financial Crimes Commission (EFCC), Mr. Emmanuel Akomaye, legal luminaries, Damian Dodo (SAN) and Godwin Obla and the Executive Secretary of the National Human Rights Commission, Roland Ewubare.
Halliburton’s Chief Executive and Chairman, David Lesar, who replaced Cheney, Halliburton President, Eastern Hemisphere, Ahmed Lofty, Deputy General Counsel, James Ferguson, were also at the meeting.
Halliburton, it was learnt, sought for small fines but the Nigerian officials vehemently opposed the move, reasoning that the U.S. could not have benefitted from the fines more than Nigeria, where the crime was committed originally.
“We will not settle for less than what was paid to the U.S Government,” Adoke was quoted to have said.
http://www.compassnewspaper.com/NG/index.php?option=com_content&view=article&id=71456:fg-drops-charges-against-cheney-halliburton-&catid=43:news&Itemid=799
The development is sequel to an agreement reached between Nigerian officials in the negotiating team and top officials of the United States and Halliburton in a meeting held in London last weekend.
At the meeting, Halliburton agreed to pay about N20 billion as criminal penalty, while promising to liaise with the United States to recover the outstanding $132 million which is currently frozen in Switzerland.
It was gathered that former U.S. President, George Bush (snr) and former Secretary of State, James Baker, were part of the deliberations through conference calls.
The Attorney General of the Federation and Justice Minister, Mr. Mohammed Bello Adoke (SAN) led Nigeria’s team at the negotiations which included the Secretary of the Economic and Financial Crimes Commission (EFCC), Mr. Emmanuel Akomaye, legal luminaries, Damian Dodo (SAN) and Godwin Obla and the Executive Secretary of the National Human Rights Commission, Roland Ewubare.
Halliburton’s Chief Executive and Chairman, David Lesar, who replaced Cheney, Halliburton President, Eastern Hemisphere, Ahmed Lofty, Deputy General Counsel, James Ferguson, were also at the meeting.
Halliburton, it was learnt, sought for small fines but the Nigerian officials vehemently opposed the move, reasoning that the U.S. could not have benefitted from the fines more than Nigeria, where the crime was committed originally.
“We will not settle for less than what was paid to the U.S Government,” Adoke was quoted to have said.
http://www.compassnewspaper.com/NG/index.php?option=com_content&view=article&id=71456:fg-drops-charges-against-cheney-halliburton-&catid=43:news&Itemid=799
Little-known law could help foreclosed homeowners
St. Paul, Minn. — Many homeowners in foreclosure may not be aware there’s another option that would allow them to keep their homes. Under state law, they can buy their home back after the sheriff’s sale for the price of the winning bid. That bid can be tens or even hundreds of thousands of dollars less than what they owed on the house.
But the law is not widely known, and as a result many homeowners have lost out on the chance to stay in their homes. Marie Forsell, who owned a home in Washington County, is one of them.
What Forsell didn’t know was how much her house had sold for at the sheriff’s sale. After she’d agreed to take the $5,000, Forsell found out that her house — on which she owed close to $600,000 — had sold at auction for only about $86,000.
“I was absolutely sick to my stomach,” she said. “You mean to tell me I’ve worked for years with the mortgage company, and they just dumped it for $86,000 — which I never would have ever guessed, and now I had already signed the house away.”
That’s when Forsell discovered something else: under state law she could have bought her home back during the redemption period that follows the sheriff’s sale, for far less than what she owed.
Forsell says if she had known that, her family could have lent her the money. While people going through foreclosure probably couldn’t get a loan from a bank, they could potentially borrow the money elsewhere.
“They say it’s embarrassing to be in foreclosure. No, it’s embarassing to sign away your house for $5,000 and realize what you did,” said Forsell.
The investors who bought Forsell’s deed also bought her rights to redeem her house. Now, they can put it back on the market for a profit.
Check out the article in its entirety here…
But the law is not widely known, and as a result many homeowners have lost out on the chance to stay in their homes. Marie Forsell, who owned a home in Washington County, is one of them.
What Forsell didn’t know was how much her house had sold for at the sheriff’s sale. After she’d agreed to take the $5,000, Forsell found out that her house — on which she owed close to $600,000 — had sold at auction for only about $86,000.
“I was absolutely sick to my stomach,” she said. “You mean to tell me I’ve worked for years with the mortgage company, and they just dumped it for $86,000 — which I never would have ever guessed, and now I had already signed the house away.”
That’s when Forsell discovered something else: under state law she could have bought her home back during the redemption period that follows the sheriff’s sale, for far less than what she owed.
Forsell says if she had known that, her family could have lent her the money. While people going through foreclosure probably couldn’t get a loan from a bank, they could potentially borrow the money elsewhere.
“They say it’s embarrassing to be in foreclosure. No, it’s embarassing to sign away your house for $5,000 and realize what you did,” said Forsell.
The investors who bought Forsell’s deed also bought her rights to redeem her house. Now, they can put it back on the market for a profit.
Check out the article in its entirety here…
WIKILEAKS RELEASES BOEHNER’S NETFLIX ACCOUNT [SATIRE]
WASHINGTON, D.C. (SatireWire.com) — Just days after his tearful 60 Minutes interview, a visibly upset House Minority Leader John Boehner today announced WikiLeaks has published details of his private Netflix account showing “Terms of Endearment” has still not shipped, despite him sending back “Something About Joey” nearly a month ago.
Surrounded by supportive colleagues, Boehner could barely speak as he haltingly discussed WikiLeaks release of sensitive material, and the heart-rending scene in which a dying Joey is given his brother’s trophy.
“WikiLeaks has made America vulnerable, just like cancer made Joey vulnerable, just like the goodbye scene in ‘Free Willy’ makes me vulnerable,” said Boehner, expected to take over as Speaker of a very emotional House in January. “When that kid… when he and the whale have to… to say goodbye… oh God give me a minute.”
After composing himself, the Ohio Republican vowed to crack down on WikiLeaks as soon as he sorted out his Netflix queue, which he described as a very important part of his life.
“I used to go to the movies. I can’t even go to theaters anymore. It’s the stories. ‘Sophie’s Choice.’ ‘Bambi.’ All these people chasing the American dream. Netflix brings those to me,” he sobbed, eventually burying his head into the shoulder of House Minority Whip Eric Cantor.
Read on.
Tuesday, December 14, 2010
Broward homeowner in Florida alleges robo-signer wrongdoing in foreclosure case
Long before the furor over foreclosures exploded nationwide, Gerta Kachko figured something was amiss.
The computer programmer from New Jersey lost her job in 2008, nearly three years after she had taken out a $350,400 mortgage on a second home, a waterfront condominium in Hollywood.
When Kachko missed several months of payments, Deutsche Bank filed for foreclosure, but she didn’t understand why Deutsche was involved. The lender that gave her the note was American Home Mortgage Servicing Inc.
“We never heard of them before,” said Kachko’s son, Eugene, 33.
With that, the Kachkos launched a legal battle to fight the foreclosure, an odyssey that would include a quick judgment for the bank and alleged wrongdoing by so-called robo-signers.
After employees of mortgage-servicing companies nationwide admitted to signing thousands of foreclosure affidavits without reviewing them, several big lenders this fall suspended foreclosures while they investigated possible paperwork errors in the filing process.
Homeowners and their lawyers say overwhelmed lenders and judges are rubber-stamping foreclosures, overlooking major problems and compromising the defendants’ rights to due process.
So…
Eugene Kachko hired an expert on mortgages and foreclosures to review his mother’s case.
The expert, West Palm Beach attorney Lynn Szymoniak, wrote in an affidavit that “it is clear” that Deutsche had not acquired the Kachko mortgage at the time it moved to foreclose.
Szymoniak testified that Deutsche filed a document proving that it owned the Kachko mortgage only after filing the initial foreclosure, and it attempted to make the document effective retroactively.
The document was signed by Linda Green and Linda Thoresen, who were identified as representatives of America Home Mortgage.
But Szymoniak said Green and Thoresen actually were employees of Lender Processing Services Inc., a Jacksonville-based company whose services include drafting missing documents to facilitate foreclosures.
Green and Thoresen “signed thousands of documents each week as needed in foreclosure cases, without any personal knowledge of the documents, often without any authority from the entities they claimed to be their employers and, in most cases, without ever reading such documents,” Szymoniak wrote.
She also noted that LPS told federal regulators in August that its document production operations were the subject of state and federal investigations. A spokewoman for LPS did not respond to an interview request.
On Aug. 20, Sherman filed a motion for a rehearing, asking that the judge’s ruling for Deutsche be vacated on the grounds that the bank allegedly committed fraud.
Judge Eli Breger granted the order on Sept. 24, canceling the Kachko foreclosure. Four days earlier, GMAC Mortgage had become the first lender to suspend foreclosures.
The computer programmer from New Jersey lost her job in 2008, nearly three years after she had taken out a $350,400 mortgage on a second home, a waterfront condominium in Hollywood.
When Kachko missed several months of payments, Deutsche Bank filed for foreclosure, but she didn’t understand why Deutsche was involved. The lender that gave her the note was American Home Mortgage Servicing Inc.
“We never heard of them before,” said Kachko’s son, Eugene, 33.
With that, the Kachkos launched a legal battle to fight the foreclosure, an odyssey that would include a quick judgment for the bank and alleged wrongdoing by so-called robo-signers.
After employees of mortgage-servicing companies nationwide admitted to signing thousands of foreclosure affidavits without reviewing them, several big lenders this fall suspended foreclosures while they investigated possible paperwork errors in the filing process.
Homeowners and their lawyers say overwhelmed lenders and judges are rubber-stamping foreclosures, overlooking major problems and compromising the defendants’ rights to due process.
So…
Eugene Kachko hired an expert on mortgages and foreclosures to review his mother’s case.
The expert, West Palm Beach attorney Lynn Szymoniak, wrote in an affidavit that “it is clear” that Deutsche had not acquired the Kachko mortgage at the time it moved to foreclose.
Szymoniak testified that Deutsche filed a document proving that it owned the Kachko mortgage only after filing the initial foreclosure, and it attempted to make the document effective retroactively.
The document was signed by Linda Green and Linda Thoresen, who were identified as representatives of America Home Mortgage.
But Szymoniak said Green and Thoresen actually were employees of Lender Processing Services Inc., a Jacksonville-based company whose services include drafting missing documents to facilitate foreclosures.
Green and Thoresen “signed thousands of documents each week as needed in foreclosure cases, without any personal knowledge of the documents, often without any authority from the entities they claimed to be their employers and, in most cases, without ever reading such documents,” Szymoniak wrote.
She also noted that LPS told federal regulators in August that its document production operations were the subject of state and federal investigations. A spokewoman for LPS did not respond to an interview request.
On Aug. 20, Sherman filed a motion for a rehearing, asking that the judge’s ruling for Deutsche be vacated on the grounds that the bank allegedly committed fraud.
Judge Eli Breger granted the order on Sept. 24, canceling the Kachko foreclosure. Four days earlier, GMAC Mortgage had become the first lender to suspend foreclosures.
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