Daily Archives: July 19, 2012


A bank claims it is having difficulty foreclosing on a property due to missing paperwork in the county clerk’s office.

Bank of America filed a lawsuit June 20 in Jefferson County District Court against Allen K. Marble, Shannon Marble, Shawn A. Jurek and Carolyn D. Jurek.

In its complaint, Bank of America claims its predecessor, Countrywide, issued a mortgage to the Jureks for $177,300 to help them buy property in 2007 from the Marbles at 1028 North 22nd St. in Nederland. The Jureks secured their loan with a Deed of Trust, according to the complaint.

Bank of America has since discovered that the Power of Attorney, the Warranty Deed and the Deed of Trust can no longer be found in the real property records in Jefferson County, the suit states. However, when the Jureks first purchased the property, the required paperwork was filed in the correct place, the complaint says.

“At some subsequent date, the County Clerk ‘un-recorded’ those instruments and removed them from the indexes,” the suit states. “Plaintiff was not told of this ‘un-recording’ at the time in occurred.”

As a result, Bank of America claims it has been impossible to foreclose on the Jureks’ property.

Rest here…

Japan Bank Fined by SEC for CDO Investor Fraud that Bear Stearns Did Also

A Japan bank, Mizuho Securities, was hit with an enforcement action and fine from the SEC today for not telling the mortgage security raters the truth about the quality of the loans they were rating on a $1.6 billion CDO. The securities regulator says Mizuho made $10 million in fees selling a 2007 CDO called Delphinus to investors. The SEC claims the Japanese bank used an industry method know as packing the CDO with ‘dummy assets’ to get the security rated by S&P in a short amount of time. The problem is Mizuho didn’t actually package the CDO with mortgage bonds that had the high quality collateral they told the rating agency would be in the CDO. Delphinus 2007-1 closed on July 19th 2007 and six months later it started to default. As a result of this mortgage security fraud the SEC now gets $127.5 million in fines on a CDO the bank only earned $10 million on.

And guess what – Bear Stearns Mortgage team run by Tom Marano and it’s mortgage packing team at EMC did the exact same thing on BILLIONS of mortgage securities but the SEC hasn’t sued or lobbed a settlement with the American bank now owned by JP Morgan. News of internal EMC whistleblowers falsifying mortgage info to get a 20 minute AAA rating from S&P was first reported by me at The Atlantic in May 2010. Since then most of the monoline insures and a ton of RMBS investors have sued JP Morgan/Bear Stearns for rmbs fraud. In fact JP Morgan admitted in recent financial fillings they are being sued for up to $120 billion of mortgage securities. In New York, lying to a rater and getting an insurance company to invest in and insure the mortgage security based on a false rating is criminal Insurance Fraud. Which is what investor lawsuits and over 30 whistleblowers have alleged Bear Stearns did.

Read on.

Biloxi Buzz for Thursday

Defense Contractors Facing Cutbacks Say Tax Hikes Should Be On The Table


Jet-Owning CEO Of Collapsed Firm: ‘I Don’t Live A Lavish Lifestyle’


Strict ID Laws Put Half A Million Voters’ Rights At Risk

Deutsche, HSBC Traders Probed in Libor Case

Traders at Deutsche Bank AG (DBK), HSBC Holdings Plc (HSBA), Societe Generale SA (GLE) and Credit Agricole SA (ACA) are under investigation for interest-rate manipulation in a global probe that led to more than $450 million in fines for Barclays Plc (BARC) last month, a person with knowledge of the matter said.

Regulators are investigating the possible roles of Michael Zrihen at Credit Agricole, Didier Sander at HSBC and Christian Bittar at Deutsche Bank, the person said on condition of anonymity because the investigation is continuing. The names of the banks and traders were reported earlier by the Financial Times.

Read on.

Goldman Sachs agrees to settle mortgage debt class action

(Reuters) – Goldman Sachs Group Inc has agreed to settle a class-action lawsuit with investors who claimed losses on $698 million of securities backed by risky mortgage loans issued by defunct subprime lender New Century Financial Corp.

Lawyers for the investors said in a letter filed in U.S. District Court in Manhattan on Tuesday that a proposed settlement had been reached. Terms were not immediately disclosed, though they are expected to be included in court papers filed by July 31.

Read on.

Bank Contractors Break Into Occupied Homes, Terrify Residents, Lawsuits Say

It usually happens when homeowners are at work or out of town.

In Clawson, Mich., Nancy Cox returned home to find her possessions in the front yard, smashed with a sledgehammer, and a chalk drawing of a clown face on her garage with the tagline, “another job well done.”

For Kenneth and Margaret Karpa in Pittsburgh, china and photos of their daughter were damaged. Missing belongings included a coin collection and the family cat.

In Kansas City, Allen Danforth discovered his elderly parents’ furnishings — tables, chairs, family heirlooms — gone.

These homeowners allege in separate lawsuits that a contractor hired by a major bank to preserve abandoned properties against damage, mistakenly entered their homes while they were still occupied. In most cases, it appears that the contractor, known as a property inspector or property preserver, broke in after ignoring obvious signs of occupation: lights turned on, grass mowed and homes fully furnished.

“They need to be completely damn sure that the property is vacant,” said Richard Fersch, the sergeant in charge of foreclosures in the Allegheny County, Pa., Sheriff’s Office.

Read on.