Harsha Agadi billed Friendly's $234,000 for expenses the year before the company went bankrupt the Wall Street Journal reports.
Saturday, November 19, 2011
Steven J. Baum law firm getting peppered; Linked to 1st robo-signing criminal case
The stink is growing around the state’s largest foreclosure mill.
The Steven J. Baum law firm, which last month agreed to pay a $2 million fine to settle a federal probe into bogus foreclosure case filings, has now been barred by federal mortgage giants Fannie Mae and Freddie Mac from getting any more referrals of home loan defaults owned by either company.
In addition, the 70-lawyer firm is linked to the first criminal case brought against alleged robo-signers.
The criminal case was brought by the Nevada attorney general against two title officers — Gary Trafford and Gerri Sheppard — charged with forging signatures on 606 foreclosure-related mortgage documents.
The two worked for Lender Processing Services, a publicly-traded company, which was not charged in the matter.
In New York, LPS also had provided allegedly doctored records used in a foreclosure case here handled by the Baum firm, court records show.
Those LPS documents furnished to Baum were found by the mortgage lender’s own legal team as “factually inaccurate,” court documents show.
In the New York matter, the questionable Baum documents were signed by an LPS officer identified as Scott Walter, transcripts show.
Read more: http://www.nypost.com/p/news/business/foreclosure_mill_getting_peppered_kiOTIVUoa2nNSftA2YwZKJ#ixzz1e6MT7IU1
Read more of the deposition of Scott Walker. Click here and here.
California's Welfare Families Paid Banks Millions In Fees For Public Assistance
The state distributes public assistance through so-called EBT cards, which look and work much like debit cards. But Robinson's neighborhood in South Los Angeles has only three places that allow him to use that card to withdraw enough cash to cover his monthly rent free of charge. He can visit any bank ATM, but that entails charges of as much as four dollars per transaction. A local check cashing chain charges $1.75. Grocery stores will let him withdraw cash, but only after a purchase.
"Those are your options, in this neighborhood anyway," said Robinson, 43, who has resigned himself to surrendering part of his $317-per-month check for lack of other options. "I can either pay the fee, or go buy several packs of gum to get the money and suck up a different kind of waste."Across much of the nation, administering relief programs such as unemployment benefits and emergency rental assistance has become an increasingly substantial profit center for banks and other financial services firms, according to analysts. Like California, many states have contracted with private companies to distribute these funds. While the contracts have saved states millions of dollars in costs previously incurred for printing and mailing out checks, the agreements often give companies the ability to extract fees from recipients -- some of the nation’s most vulnerable families
Friday, November 18, 2011
Dodd-Frank Act & Identity, Address, & Other Contact info of the Owner or Assignee of the Loan
Section 1463. Real Estate Settlement Procedures Act of 1974 Amendments
(a) Servicer Prohibitions- Section 6 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605) is amended by adding at the end the
following new subsections:
(a) Servicer Prohibitions- Section 6 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605) is amended by adding at the end the
following new subsections:
Dodd Frank & Mortgage Servicing
Thursday, November 17, 2011
California attorney general's office subpoenas Fannie, Freddie
Reporting from L.A. and Washington—
Investigators with the California attorney general's office have subpoenaed information from mortgage titans Fannie Mae and Freddie Mac as part of a wide-ranging inquiry into lending and foreclosure practices in the state.
The subpoenas ask the government-controlled finance companies to answer a series of questions about their activities in California, including their roles as landlords who own thousands of foreclosed properties. The attorney general's office is also seeking details of Fannie and Freddie's mortgage-servicing and home-repossession practices, according to a person familiar with the matter.
In addition, investigators want to learn more about the companies' purchases and sponsorship of securities holding "toxic mortgages" in the Golden State, said the person, who was not authorized to speak on the matter and requested anonymity.
The subpoenas ask the government-controlled finance companies to answer a series of questions about their activities in California, including their roles as landlords who own thousands of foreclosed properties. The attorney general's office is also seeking details of Fannie and Freddie's mortgage-servicing and home-repossession practices, according to a person familiar with the matter.
In addition, investigators want to learn more about the companies' purchases and sponsorship of securities holding "toxic mortgages" in the Golden State, said the person, who was not authorized to speak on the matter and requested anonymity.
Quotes for Thursday
"Congress says pizza is a vegetable. Is The Onion now writing legislation?" huff.to/v9S0Xi--tweeted yesterday by Congressman Earl Blumenauer (repblumenauer)
"How do you say delicious in Cuban?"-- Herman Cain's latest gaffe while campaigning in Miami's little Havana: He thinks Cuban is a language. http://bit.ly/u7wJjS
Letter | Elijah Cummings to Edward DeMarco RE Freddie and Fannie Fees
Dear Acting Director DeMarco:
I am writing to request additional information about $150 million in fees that Fannie Mae and Freddie Mac charged mortgage servicing companies in 2010 for failing to conduct foreclosures quickly enough to meet federally imposed timelines. I am concerned that these penalties, at least some of which were ordered by the Federal Housing Finance Agency (FHFA), may have contributed to widespread abuses by mortgage servicing companies and law firms attempting to meet arbitrary deadlines to expedite foreclosures.
Full letter below…
Elijah Cummings to Edward DeMarco
I am writing to request additional information about $150 million in fees that Fannie Mae and Freddie Mac charged mortgage servicing companies in 2010 for failing to conduct foreclosures quickly enough to meet federally imposed timelines. I am concerned that these penalties, at least some of which were ordered by the Federal Housing Finance Agency (FHFA), may have contributed to widespread abuses by mortgage servicing companies and law firms attempting to meet arbitrary deadlines to expedite foreclosures.
Full letter below…
Elijah Cummings to Edward DeMarco
Wednesday, November 16, 2011
Winnebago County Ill. recorder still finds instances of 'robo-signing'
ROCKFORD — In late 2010, the furor over “robo-signers” revealed the complicated — and occasionally sloppy, if not entirely negligent — mountains of paperwork that accompany mortgages and the process of foreclosure.
Attorneys representing homeowners in several states uncovered the fact that many banks, or the companies the banks used to process paperwork, were authorizing documents without checking their accuracy or even giving them more than a cursory glance. In some cases, these “robo-signers” fraudulently signed the names of bank officials, attorneys and notaries.
Several of the largest banks, including Wells Fargo, JPMorgan Chase and Bank of America, halted foreclosures for several months in states that don’t use the court system in order to check the accuracy of the documents in their foreclosure pipeline.
In Illinois, foreclosures are processed through the courts so the foreclosure wave continued unabated. And Winnebago County Recorder Nancy McPherson believes she has found evidence that “robo-signing” is still rampant here in the Rock River Valley.
McPherson is one of 12 county recorders collecting evidence of mortgage document fraud for Illinois Attorney General Lisa Madigan.
Attorneys representing homeowners in several states uncovered the fact that many banks, or the companies the banks used to process paperwork, were authorizing documents without checking their accuracy or even giving them more than a cursory glance. In some cases, these “robo-signers” fraudulently signed the names of bank officials, attorneys and notaries.
Several of the largest banks, including Wells Fargo, JPMorgan Chase and Bank of America, halted foreclosures for several months in states that don’t use the court system in order to check the accuracy of the documents in their foreclosure pipeline.
In Illinois, foreclosures are processed through the courts so the foreclosure wave continued unabated. And Winnebago County Recorder Nancy McPherson believes she has found evidence that “robo-signing” is still rampant here in the Rock River Valley.
McPherson is one of 12 county recorders collecting evidence of mortgage document fraud for Illinois Attorney General Lisa Madigan.
Nichols Kaster PLLP Files Class Action Against GMAC Mortgage and Balboa Insurance Services for Illegally Backdating Insurance Policies and Charging for Worthless Coverage
On November 14, 2011, Plaintiff Christine Ulbrich filed a nationwide class action lawsuit against GMAC Mortgage, LLC and Balboa Insurance Services, Inc. in the United States District Court for the Southern District of Florida. The lawsuit alleges that GMAC and Balboa illegally backdated force-placed insurance policies and charged borrowers for insurance coverage that was, in some cases, expired on the day it was purchased. The suit also alleges that GMAC and Balboa charged borrowers inflated premiums that were as much as 14 times the market rate. According to Plaintiff’s attorney, Kai Richter, “The whole point of insurance is to protect against future risks. Forcing borrowers to buy expired insurance at inflated premiums is inexcusable.”
The Complaint alleges that GMAC force-placed a windstorm policy on Ulbrich’s property in March 2011, which was backdated for the period from October 1, 2009 to October 1, 2010, and charged Ulbrich almost $10,000 for this already-expired coverage. The lawsuit further alleges GMAC sent Ulbrich a renewal notice on the very same date, stating that “the windstorm insurance coverage we placed on your account has expired,” and then force-placed a second windstorm policy on her property in April 2011, which was backdated by more than six months and cost more than $9,600. According to the Complaint, Ulbrich’s mortgage payments skyrocketed from $1,227.52 per month to $2,695.59 per month after GMAC purchased this backdated coverage, due to an alleged “shortage” in her escrow account. GMAC is now threatening to foreclose on her home because she cannot afford the increased payments, even though she previously was current on her mortgage.
Analysis: SEC targets low-level bankers, spares top execs
(Reuters) - The U.S. government is not taking advantage of an enforcement tool that could potentially hold top Wall Street figures accountable for their role in the recent financial crisis, despite its prior success.
Broker-dealers, investment advisers, and others regulated by the Securities and Exchange Commission are required to supervise their representatives. If a trader engages in misconduct, the SEC can sue the management with "failure to supervise."
But in some of the biggest cases the SEC has brought in recent months -- against units of JPMorgan, Goldman Sachs, and Citigroup -- the agency has sued only low-level bankers.
AIG-owned United Guaranty opposes HARP 2.0 reps and warrants waivers
United Guaranty, the mortgage insurance subsidiary of AIG (AIG: 23.12 -1.78%), said Monday it refuses to accept all of the new HARP refinancing terms based on fears it will end up on the hook for fraudulently written or bad loans.
United Guaranty responded to HousingWire after Bloomberg News said the mortgage insurer refuses to provide blanket waivers on reps and warranties for mortgage lenders trying to get loans through the HARP process. Reps and warrants force originators to buy-back loans that were either poorly or fraudulently underwritten.
The appeal of HARP 2.0 is the fact it gives lenders
Class action lawsuit filed against MERS over unpaid taxes
Two county registers of deeds filed a class action lawsuit Monday on behalf of Michigan’s 83 counties alleging that the Mortgage Electronic Registration Services owes millions of dollars in property title transfer taxes.
Curtis Hertel, Jr., the Ingham County Register of Deeds, and Branch County Registrar Nancy Hutchins filed the suit, which alleges that the company and numerous banks failed to pay property transfer taxes when the title to the company was transferred to another owner in the MERS system.
“MERS created a shadow registry system that has made it very difficult for the public and for government offices like mine to keep track of who owns what mortgage,” Hertel said. “They have also stated they were created to avoid fees in my office. When we began the investigation into robo-signing I asked my attorneys to research MERS foreclosures to see if there were patterns of irregularity. This lawsuit is a direct result of that investigation. I believe there has been a systematic attempt to avoid paying taxes by MERS and the banks that use MERS.”
Hertel alleges the company has created a “shell game” designed to dodge taxes.
Curtis Hertel, Jr., the Ingham County Register of Deeds, and Branch County Registrar Nancy Hutchins filed the suit, which alleges that the company and numerous banks failed to pay property transfer taxes when the title to the company was transferred to another owner in the MERS system.
“MERS created a shadow registry system that has made it very difficult for the public and for government offices like mine to keep track of who owns what mortgage,” Hertel said. “They have also stated they were created to avoid fees in my office. When we began the investigation into robo-signing I asked my attorneys to research MERS foreclosures to see if there were patterns of irregularity. This lawsuit is a direct result of that investigation. I believe there has been a systematic attempt to avoid paying taxes by MERS and the banks that use MERS.”
Hertel alleges the company has created a “shell game” designed to dodge taxes.
PA County Sues US Bank Over MERS Recordings
Pennsylvania’s 67 counties may have lost $100 million in fees because of a system that assigns mortgages without recording documents in county courthouses, according to a lawsuit filed by Washington County.
The county sued U.S. Bank Corp. of Minneapolis in Washington County Court, claiming the bank failed to pay a $52 recording fee when it acquired residential properties bundled in investment securities and sold them through the Mortgage Electronic Registration System Inc. of Reston, Va., known as MERS.
MERS is a national database of mortgages created by the banking industry to automate recordings and aid creation of mortgage-backed securities. Some experts consider that process to be a contributing cause to the mortgage and credit crisis that plunged the country into a recession in 2008. The electronic system tracks more than 65 million mortgages.
In the lawsuit, Washington County estimated it lost $1.6 million in recording fees over seven years from U.S. Bank’s failure to record mortgages it acquired. Based on the estimated losses, about 30,470 mortgages were not recorded in the county.
Washington County Recorder of Deeds Deborah Bardella said that estimate may be low because the county does not know how many times the mortgages were assigned to different investors.
The lawsuit, filed Sept. 28, not only wants restitution from U.S. Bank but asks the court to require the bank to record prior mortgage assignments on all properties on which it foreclosed. The county also is seeking class-action status that would cover the lost recording fees in the state’s 67 counties.
U.S. Bank spokeswoman Nicole Garrison-Sprenger said, “We think this suit is without merit.”
It’s the first lawsuit filed in the state against a bank over the issue of failing to record mortgages bundled into mortgage-backed securities that were sold and assigned to other financial institutions through MERS, said Evie Rafalko McNulty, president of the Pennsylvania Recorder of Deeds Association and the recorder in Lackawanna County. She estimated that Lackawanna County, where Scranton is the county seat, lost $1.3 million in recording fees.
Read more here
The county sued U.S. Bank Corp. of Minneapolis in Washington County Court, claiming the bank failed to pay a $52 recording fee when it acquired residential properties bundled in investment securities and sold them through the Mortgage Electronic Registration System Inc. of Reston, Va., known as MERS.
MERS is a national database of mortgages created by the banking industry to automate recordings and aid creation of mortgage-backed securities. Some experts consider that process to be a contributing cause to the mortgage and credit crisis that plunged the country into a recession in 2008. The electronic system tracks more than 65 million mortgages.
In the lawsuit, Washington County estimated it lost $1.6 million in recording fees over seven years from U.S. Bank’s failure to record mortgages it acquired. Based on the estimated losses, about 30,470 mortgages were not recorded in the county.
Washington County Recorder of Deeds Deborah Bardella said that estimate may be low because the county does not know how many times the mortgages were assigned to different investors.
The lawsuit, filed Sept. 28, not only wants restitution from U.S. Bank but asks the court to require the bank to record prior mortgage assignments on all properties on which it foreclosed. The county also is seeking class-action status that would cover the lost recording fees in the state’s 67 counties.
U.S. Bank spokeswoman Nicole Garrison-Sprenger said, “We think this suit is without merit.”
It’s the first lawsuit filed in the state against a bank over the issue of failing to record mortgages bundled into mortgage-backed securities that were sold and assigned to other financial institutions through MERS, said Evie Rafalko McNulty, president of the Pennsylvania Recorder of Deeds Association and the recorder in Lackawanna County. She estimated that Lackawanna County, where Scranton is the county seat, lost $1.3 million in recording fees.
Read more here
Tuesday, November 15, 2011
Welfare for millionaires:Your tax dollars for the rich and famous?
From tax write-offs for gambling losses, vacation homes, and luxury yachts; to subsidies for ranches and estates, billions of your tax dollars are supporting the lifestyles of the rich and famous. And a new report from fiscal conservative Sen. Tom Coburn (R-OK) counts the ways.
Read Sen. Coburn's report
Entitled "Subsidies of the Rich and Famous," Coburn outlines billions for millionaires: $74 million in unemployment checks, $316 million in farm subsidies, $9 billion in retirement checks and more. Overall,
Coburn says millionaires have received $9.5 billion in government benefits since 2003, and borrowed $16 million in government-backed education loans for college.
Some big stars are among the beneficiaries. The Coburn report says that millionaires who have collected taxpayer-funded farm subsidies include former NBA star Scottie Pippen and billionaire media titan Ted Turner. The report cites General Accountability Office findings that highlight the need to prevent USDA farm subsidies from going to the rich.
Also in the report: superstar singer Jon Bon Jovi paid only $100 in property taxes last year on his extensive NJ real estate holdings because he "raises bees" on it; "The Boss" Bruce Springsteen gets subsidies for leasing property to an organic farmer. Quincy Jones, who produced the top selling record of all time, Michael Jackson's "Thriller," got a $25,000 award from the taxpayer-funded National Endowment for the Arts for his contribution to music.
You’re FIRED | Foreclosure Mill Lawyer Extraordinaire Steven J. Baum Dropped by Freddie Mac
After November 10, 2011, Servicers may not refer any new Freddie Mac foreclosure or bankruptcy cases in New York to Steven J. Baum, P.C., whether referred within or outside of our Designated Counsel Program.
Until further notice, Steven J. Baum, P.C. will continue to work on all foreclosure and bankruptcy matters referred on or before November 10, 2011.
It is important that you review Single-Family Seller/Servicer Guide Exhibit 79, Designated Counsel/Trustee, periodically for the most current information about Program participants.
Until further notice, Steven J. Baum, P.C. will continue to work on all foreclosure and bankruptcy matters referred on or before November 10, 2011.
It is important that you review Single-Family Seller/Servicer Guide Exhibit 79, Designated Counsel/Trustee, periodically for the most current information about Program participants.
Courtesy of FreddieMac.com
KEL law firm resigns from BBB amid homeowner complaints
Peppered with complaints by former clients, the KEL law firm has been forced to resign from the Better Business Bureau of Central Florida — the first area law firm to be ousted in the business-rating agency’s 27-year history, the local BBB chief has confirmed.
The resignation of Orlando-based KEL, formally known as Kaufman, Englett & Lynd, from bureau membership followed a jump in the number of complaints during the past year and the BBB’s determination that KEL had “failed to resolve the underlying cause(s) of a pattern of complaints,” the agency’s latest report states. The agency gives the firm an F rating — a rarity for a law firm.
Although the firm has resolved all but three of the 39 complaints filed against it during the past three years, KEL’s inability to slow the pace of the complaints — 27 in the past 12 months — moved the BBB to act in June, said Judy Pepper, the agency’s chief executive officer.
“Once a company no longer meets our standards, they are not eligible to have the BBB accreditation,” she said. “We will give those companies the opportunity to resign, or their membership will be revoked.”
According to the BBB complaints, many of the former clients accused the high-profile, widely advertised law firm of charging thousands of dollars in fees for foreclosure-defense and mortgage-modification services that were poorly executed or never provided.
“There’s no doubt I am losing my house now because of them,” said Amanda Smith-Gillaspie of DeBary, who said she paid KEL more than $3,500 last year to defend her home against foreclosure. “They dropped the ball so many times, it was ridiculous. When I wouldn’t pay them another $3,500, they dropped me. Then I started working directly with Citibank and found out KEL hadn’t filed some of the paperwork at all.”
Read more here
The resignation of Orlando-based KEL, formally known as Kaufman, Englett & Lynd, from bureau membership followed a jump in the number of complaints during the past year and the BBB’s determination that KEL had “failed to resolve the underlying cause(s) of a pattern of complaints,” the agency’s latest report states. The agency gives the firm an F rating — a rarity for a law firm.
Although the firm has resolved all but three of the 39 complaints filed against it during the past three years, KEL’s inability to slow the pace of the complaints — 27 in the past 12 months — moved the BBB to act in June, said Judy Pepper, the agency’s chief executive officer.
“Once a company no longer meets our standards, they are not eligible to have the BBB accreditation,” she said. “We will give those companies the opportunity to resign, or their membership will be revoked.”
According to the BBB complaints, many of the former clients accused the high-profile, widely advertised law firm of charging thousands of dollars in fees for foreclosure-defense and mortgage-modification services that were poorly executed or never provided.
“There’s no doubt I am losing my house now because of them,” said Amanda Smith-Gillaspie of DeBary, who said she paid KEL more than $3,500 last year to defend her home against foreclosure. “They dropped the ball so many times, it was ridiculous. When I wouldn’t pay them another $3,500, they dropped me. Then I started working directly with Citibank and found out KEL hadn’t filed some of the paperwork at all.”
Read more here
JUDGE DENNIS BLACKMON NAILS US BANK IN GEORGIA ON HAMP, WRONGFUL FORECLOSURE
From the opinion…
“Sometimes, only courts of law stand to protect the taxpayer. Somewhere, someone has to stand up. Well, sometimes is now, and the place is the Great State of Georgia. The Defendant’s Motion is hereby Denied”
“The United States Government paid taxpayer dollars to the largest of our financial institutions, and to European Union Banks, in order to prop up those poorly run organizations. Twenty Billion of those dollars were handed over to the defendant, U.S. Bank.”
“The HAMP guidelines require U.S. Bank to perform modification services for all mortgage loans its services. Otis Philips applied to modify his mortgage with U.S. Bank. U..S. Bank denied the request, without numbers, figures, or explanation, reasoning, comparison to the guidelines, or anything.”
“A cynical Judge might believe that this entire motion to dismiss is a desperate attempt to avoid the discovery period, where U.S. Bank would have to tell Mr. Phillips how his financial situation did not qualify him for a modification. Or, perhaps he was qualified, yet didn’t receive the modification, in violation of U.S. Bank’s Service Participation Agreement (SPA).”
“A cynical judge might think that, if the guidelines clearly prevented Mr Phillips from getting his modification, the US Banks would have trotted out theat fact in matematic equations, pie charts, and bar graphs, all on 8 by 10 glossy photo paper, with circles and arrows and paragraphs on the back explaining each winning number.”
“U.S. Bank’s silence on this issue might heighten the suspicions of such a cynical jurist.”
“I, on the other hand, am sure that nothing of the sort could be true. Maybe US Bank no longer has any of the $20 billion dollars left, and so their lack or written explanation might be attributed to some kind of ink reduction program to save money. I’m sure there is a perfectly reasonable explanation for why US Bank will not print out the ONE page of figures that show that MR Phillip’s financials compared to the HAMP guidelines to clear this all up.”
“Clearly, U.S. Bank cannot take the money, contract with our government to provide a a service to the taxpayer, violate that agreement, and then say no one on earth can sue them for it. That is not the law in Georgia. In fact, since no administrative review is provided in HAMP [which is something you should put in your OCC letter demanding review], the courts are the only recourse.”
Conclusion
“There is no merit to Defendant’s Motion to Dismiss, and same is hereby DENIED.”
Judge Dennis Blackmon
Full opinion below…
Us Bank Opinion
Monday, November 14, 2011
Banks Quietly Ramping Up Costs to Consumers
Even as Bank of America and other major lenders back away from charging customers to use their debit cards, many banks have been quietly imposing other new fees.
Need to replace a lost debit card? Bank of America now charges $5 — or $20 for rush delivery.
Deposit money with a mobile phone? At U.S. Bancorp, it is now 50 cents a check.
Want cash wired to your account? Starting in December, that will cost $15 for each incoming domestic payment at TD Bank. Facing a reaction from an angry public and heightened scrutiny from regulators, banks are turning to all sorts of fees that fly under the radar. Everything, it seems, has a price.
County clerks warn that private home loan registry may cloud titles to thousands of Central Texas homes
The ownership of tens of thousands of Central Texas home loans could be in question because of the actions of a national private registry that officials say has sidestepped the filing of proper documents with county clerks, the American-Statesman has learned.
The Mortgage Electronic Registration System was created in the 1990s by 3,000 of the nation's largest lenders to "streamline the mortgage sale process by using e-commerce to replace paperwork," according to the company's website.
In recent years, the Virginia-based registry has exploded across the U.S. as mortgages increasingly were bundled and sold as commodities in rapid churn to investors.
U.S. Bank calls for court to hear class-action suit
U.S. Bank National Association has asked U.S. District Court to hear a class-action suit, filed by Washington County on behalf of all counties in the state, over the association's failure to use the recorder of deeds offices to record mortgages, denying counties the related fees.
Washington County first took the case to Washington County Court, but the bank is now seeking a change in jurisdiction. The county alleges that more than $100 million has been lost in recording fees by all 67 counties in the state.
The county alleges U.S. Bank National Association, as trustee for various residential mortgage-backed security trusts, violated state law by failing to record "each and every mortgage transfer."
The bank instead used a private entity, Mortgage Electronic Registration Systems Inc., for recording, "thereby depriving Washington County of the accompanying recording fees" for 15 or more years.
Washington County Recorder of Deeds Debbie Bardella said U.S. Bank would file the original mortgage, but list Mortgage Electronic Registration Systems Inc. as the mortgagee.
"Banks did not file subsequent assignments," Bardella said. "When people go to foreclose or take action on these properties, they don't really know who the lender is because action was taken without us seeing the full picture.
"The recorder's office is not getting all the documents. I have no way of knowing how many times this mortgage has changed hands. It has caused a lot of heartache and headaches for the individual and the county has lost all that revenue because they're not filing all the paperwork here."
Washington County is also seeking attorneys' fees, which, in a class-action suit, could be as much as 30 percent of a judgment.
Bankruptcy Ruling Paves Path For Non-Judicial Foreclosure Defense
A Chapter 13 bankruptcy case in the Eastern District of Arkansas, Jonesboro Division, has caused title companies in the state to investigate foreclosure sales to determine if the properties were properly taken back by lenders.
In a Sept. 29 decision, the court held that a lender not authorized to do business in the state of Arkansas was not in compliance with the state’s non-judicial foreclosure laws. That case, In Re Johnson, concerned objections filed by J.P. Morgan Chase Bank and the related Chase Home Finance regarding the confirmation of three Chapter 13 plans for debtors who had lost their homes to the lenders through non-judicial foreclosure proceedings.
The non-judicial foreclosure has become the preferred method for taking back homes from debtors who have defaulted on mortgages. It is an abbreviated process that is less expensive than a traditional judicial foreclosure proceeding that is litigated in the courts system.
J.P. Morgan, in the In Re Johnson case, objected to the Chapter 13 plans of which the debtors sought court approval. A Chapter 13 bankruptcy plan is designed to pay creditors at least a percentage of what they are owed by the debtors over a period of years. J.P. Morgan argued that it was owed its the costs and fees it had incurred through the non-judicial foreclosure proceedings and those were not considered in the plans.
The court sided with the debtors, stating J.P. Morgan was not in compliance with Arkansas’ non-judicial foreclosure statutes as it was not authorized to do business in Arkansas. The court ruled the debtors did not owe the foreclosure fees and costs sought by J.P. Morgan. Furthermore, the court ruled J.P. Morgan owed the debtors’ attorneys fees incurred in litigating the issue.
Meanwhile, Little Rock Realtor Allen Trammel said that — in the past week — two of his clients who purchased homes that had been taken back through the state’s non-judicial foreclosure laws were in limbo. He said the explanation given to him in each instance is that title companies are typically refusing to issue title insurance in those transfers until they can determine whether the homes were taken in compliance with state law. Bob Balhorn, another Little Rock Realtor, confirmed that the In Re Johnson case has put the brakes on sales of the foreclosed properties at issue.
Read more here
In a Sept. 29 decision, the court held that a lender not authorized to do business in the state of Arkansas was not in compliance with the state’s non-judicial foreclosure laws. That case, In Re Johnson, concerned objections filed by J.P. Morgan Chase Bank and the related Chase Home Finance regarding the confirmation of three Chapter 13 plans for debtors who had lost their homes to the lenders through non-judicial foreclosure proceedings.
The non-judicial foreclosure has become the preferred method for taking back homes from debtors who have defaulted on mortgages. It is an abbreviated process that is less expensive than a traditional judicial foreclosure proceeding that is litigated in the courts system.
J.P. Morgan, in the In Re Johnson case, objected to the Chapter 13 plans of which the debtors sought court approval. A Chapter 13 bankruptcy plan is designed to pay creditors at least a percentage of what they are owed by the debtors over a period of years. J.P. Morgan argued that it was owed its the costs and fees it had incurred through the non-judicial foreclosure proceedings and those were not considered in the plans.
The court sided with the debtors, stating J.P. Morgan was not in compliance with Arkansas’ non-judicial foreclosure statutes as it was not authorized to do business in Arkansas. The court ruled the debtors did not owe the foreclosure fees and costs sought by J.P. Morgan. Furthermore, the court ruled J.P. Morgan owed the debtors’ attorneys fees incurred in litigating the issue.
Meanwhile, Little Rock Realtor Allen Trammel said that — in the past week — two of his clients who purchased homes that had been taken back through the state’s non-judicial foreclosure laws were in limbo. He said the explanation given to him in each instance is that title companies are typically refusing to issue title insurance in those transfers until they can determine whether the homes were taken in compliance with state law. Bob Balhorn, another Little Rock Realtor, confirmed that the In Re Johnson case has put the brakes on sales of the foreclosed properties at issue.
Read more here
Sunday, November 13, 2011
Did the U.S. borrowed billions to pay for the Bush tax cuts? Answer: yes
Whistleblower: Despite payments, a foreclosure threat
Nancy Gosselin cannot understand why CitiMortgage is about to foreclose on her St. Louis Park house. Neither can her local banker or the Minnesota attorney general.
At the heart of the dispute is a single monthly payment of $584 that CitiMorgage says she failed to make more than two years ago, according to the attorney general's office. Gosselin says she made all her payments. A loan officer at Bremer Bank agrees. The attorney general's office, which says it can't get a straight answer from CitiMortgage, has urged the mortgage giant to stop the foreclosure and work out a deal.
But the fallout from the alleged missed payment has been a series of cascading late fees and penalties and refused payments that has culminated in CitiMortgage's threat to auction Gosselin's home at a sheriff's sale Dec. 2
"I did nothing wrong. This is very frustrating," said Gosselin, standing on the sidewalk last week in front of her house on Xenwood Avenue S.
Gosselin gave CitiMortgage permission to discuss her case with Whistleblower. But Mark Rodgers, director of Citi public affairs in New York, declined to do so "due to privacy considerations."
"Generally, if an account is in the foreclosure process, we cannot accept less than the full amount needed to bring the account current, unless a work-out plan is developed," he said. "We encourage customers in such situations to get in touch with us directly to see what options may be available to them."
She tried. For nearly two years she repeatedly wrote CitiMortgage memos arguing that the company was mistaken in its late fees. CitiMortgage never budged.
Stephan O'Connor, a loan officer at Bremer Bank, reviewed Gosselin's records and disputed CitiMortgage's claims, writing that Gosselin "has provided all of the proof that her payments were made and made on time."
Biloxi Buzz for Sunday
Murdoch's Wife Gives First Interview Since 'Pie' Incident
Denver police forcing Occupy Denver to move their property in Civic Center — Denver police forced stubborn protestors out of Civic Center park early this evening, using pepper spray and tearing down illegally pitched tents. — About half of the protesters had started to leave Lincoln Park …
BOMBSHELL! – Banks Not Authorized To Collect Fees in Cases!
I’ve been screaming for years now that corporations who are not registered to do business in a state cannot proceed until the register and are authorized. Now there may be a limited exemption/preemption for National Associations, but I have yet to entirely lose that argument.
Google “Compendium of Capacity Cases”, the argument stands for the simple proposition that before a foreign corporation invokes the jurisdiction of a state’s court, it must simply register with the Division of Corporations. It’s like forcing cars from other states or forcing federal agencies to have license plates on their cars….they may be exempt from each state’s unique requirements but we are entitled to know who is driving on the roads.
Our states and especially our state courts have forgotten that they serve the citizens of the state and that as a condition of becoming attorneys and judges, they took an oath to protect and defend the Constitution of the State. But all across this country, the national banks have bullied their way into our courtrooms and into our land records but ignored the very basic requirements of corporate law.
This has a limited scope on one state’s bankruptcy proceedings, but the analysis must be expanded to foreclosures and bankruptcy all across the country….
J.P. Morgan was not qualified to use the Arkansas non-judicial foreclosure process when it initiated the foreclosures against
these Debtors. J.P. Morgan failed to comply with the authorized-to-do-business requirement of Ark. Code Ann. § 18-50-117, and nothing in Ark. Code Ann. § 18-50-102, the Wingo Act, or the National Banking Act allowed it to conduct those proceedings without meeting that requirement.
these Debtors. J.P. Morgan failed to comply with the authorized-to-do-business requirement of Ark. Code Ann. § 18-50-117, and nothing in Ark. Code Ann. § 18-50-102, the Wingo Act, or the National Banking Act allowed it to conduct those proceedings without meeting that requirement.
As a result, the foreclosure fees and costs incurred by Chase and J.P. Morgan are not owed by the Debtors, and need not be
included in the Debtors’ repayment plans in order for those plans to be confirmed. Finally, both parties request their attorney fees for pursuing or defending these matters. The Court finds that an award of attorney fees to the Debtors is warranted.
included in the Debtors’ repayment plans in order for those plans to be confirmed. Finally, both parties request their attorney fees for pursuing or defending these matters. The Court finds that an award of attorney fees to the Debtors is warranted.
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