Daily Archives: June 9, 2012

BofA, Fannie Mae evicts man during move-out

Lender evicts man during move-out.

EGLESTON SQ.—Ken Tilton was forcibly evicted from his Weld Avenue home on June 1 despite the fact he already was in the process of moving out.

Tilton—the former owner of landmark JP businesses Zon’s restaurant and the novelty store Pluto—has been working with the local housing group City Life/Vida Urbana since Bank of America and Fannie Mae foreclosed on his house in 2009.

The eviction was not expected, as Tilton was already planning on moving to a new home, he said. Most of his belongings were already in boxes when the truck showed up and he planned to move the bulk of them to his new home the following day, June 2.Fannie Mae, the owner of the loan, “didn’t give me a day. They didn’t give me an hour,” he told the Gazette as movers loaded the truck.

City Life attorneys contacted the Federal National Mortgage Association, commonly known as Fannie Mae, to ask for a day’s delay but were denied, City Life Organizing Coordinator Steve Meachem told the Gazette.

Rest here…

 

Lapsed home insurance policy leads to $10,000 premium for Florida man thanks to Wells Fargo

Lapsed home insurance policy leads to $10,000 premium for….

North Palm Beach —

Think your homeowners insurance is outrageous? Mark Kunzelmann likely has you beat.

Kunzelmann, a 49-year-old network specialist, let the policy on his four-bedroom, North Palm Beach home lapse last year. It was a big mistake, he acknowledges.

But he can’t believe what the oversight (later remedied) cost him: $10,000 for just a few months worth of coverage. And he has his bank, Wells Fargo, and its insurance partner, Assurant, to thank.

As most homeowners are aware, if your property is financed, you have to have insurance to protect the lender. If a bank learns a mortgage holder is not covered, it is allowed to secure a policy and pass the charge on to the customer. In Kunzelmann’s case, Wells Fargo got him a policy that carried a startlingly high cost.

How high? Roughly $18,000 a year — of which, he says, the bank got an 11 percent commission. By comparison, Kunzelmann’s old policy, the one he let lapse, was costing him just $2,500.

 

B of A to pay discrimination settlement against California homeowner, accused of refusing to refinance woman’s mortgage because she was on maternity leave

B of A to pay discrimination settlement | bank, woman, pay – The Orange County Register.

Bank of America agreed to pay $161,180 to settle accusations that it refused to refinance an Irvine woman’s mortgage because she was on maternity leave, the U.S. Department of Housing and Urban Development announced.

According to a HUD statement, the woman applied to refinance her mortgage in December 2009 after a bank agent offered her a new home loan at a 5 percent interest rate with no costs or fees.

A month later, the bank refused to process her application because she was on maternity leave, telling her she would have to return to work full time to get the new loan approved, the woman maintained. The bank still refused to process the application after the woman protested that she earned the same pay and benefits while on maternity leave.

The Fair Housing Act prohibits lenders from denying home loans to women because they are pregnant or on maternity leave, HUD officials said.

 

Read on.

More Bear Stearns Executives get off without Paying Millions in Shareholder Settlement Cost

Teri Buhl:

Bear Stearns lawyers at Paul Weiss are slapping them self on the back today after stockholders and pension funds who sued Bear executives for misleading them about the health of the company months before it failed agreed to a cash settlement of only $275 million on Wednesday. The suit’s settlement lead by Michigan’s retirement fund, who lost $61 million in the collapse of Bear’s stock in March 2008, is being hailed as the 5th largest class action suit by bank shareholders. But considering the evidence that has come out in the last for years regarding what Bear executives like Tom Marano and Alan Schwartz knew about the health of the firm in late 07 early 08 while they were pushing shareholders to buy more stock this settlement number and the terms tied to it is a joke!

Beside the fact that the Bear executives named in the suit didn’t have to admit guilt neither do they have to take a hit to their fat wallets. According to a person familiar to the settlement the Directors and Officers Insurance Bear held is picking up the whole damn tab. But even if JP Morgan, Bear’s successor owner, wanted to encourage the insurance company to pass on any settlement payment responsiblity to the likes of Tom Marano, Alan Schwartz, Jimmy Cayne, Sam Molinaro, & Ace Greenberg I’m told they can’t.

“At the time of the Bear Stearns merger with JP Morgan the Bear bylaws were changed so that the Bear executives have indemnification rights from JP Morgan,” says securities attorney Brett Sherman.

Some of the most damaging evidence about who at Bear knew what and when came out in the Monoline suits against Bear/JPM, led by attorneys at PBWT, for rmbs fraud and the FCIC report.

Read on.

Biloxi Buzz for Saturday

 

Goldman Sachs CEO: We’re Planning For Disaster In Europe

Former GOP Gov Faces Alarming Accusations

Obama Foreclosure Program Blasted For Protecting Banks Over People

State May Force Detroit To Go Broke

Berkshire Hathaway sells ResCap bonds after pushing for examiner in lender’s bankruptcy

Warren Buffett’s Berkshire Hathaway Inc. (BRKA, BRKB), which wants an independent examiner appointed in Residential Capital LLC’s bankruptcy, sold its unsecured bonds in the mortgage lender this week, according to a court document.

The sales occurred Tuesday and Wednesday, the Thursday filing said.

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