Monthly Archives: August 2012

Principal reductions under AG settlement remain in the dark

Mortgage servicers already wrote down principal on loans bundled into private bonds in order to satisfy the robo-signing settlement, but not even the monitor will know how many for some time, according to those familiar with the agreement.
A total of 7,093 borrowers received principal forgiveness through a completed modification from four of the five largest servicers JPMorgan Chase ($37.30 0.17%), Wells Fargo ($34.07 -0.03%), Citigroup ($29.91 0.57%) and Ally Financial, according to an initial report from the monitor Joseph Smith.
Read on.

BofA says it will complete AG settlement relief within first year

Bank of America ($8.00 0.04%) claims it will provide all $8.5 billion in robo-signing settlement relief within one year of signing it.
“The agreement term is 36 months, yet within the first year, we believe we will reach or exceed all program targets under the agreement,” a bank spokesman said.
BofA committed to providing $7.6 billion in relief through modifications, short sales, forbearance and other options. The bank must refinance another $948 million in mortgages for eligible borrowers.
Read on.

Title Company Says Court Ruling Could Cloud Home Ownership for Thousands

(Source: By Christopher Quinn, The Atlanta Journal-Constitution (MCT) A company providing services to lenders and home buyers says a recent Georgia court case that tightened the enforcement of foreclosure laws will raise questions about the ownership of thousands of homes, create uncertainty in the housing market and result in many lawsuits.

The July court ruling says foreclosure documents and public foreclosure notices need clear identification of the loan owner or those legally able to negotiate for the owner, which many recent documents lacked because of the complex ways in which loans were created and sold to investors.

“…the Court of Appeals’ decision will cause great uncertainty in Georgia foreclosures as to the validity of a foreclosure, particularly those foreclosures that have occurred since 2008…” said attorney William Brown in a brief filed to encourage the Georgia Supreme Court to review the ruling.

Read on.


On July 14, they moved all of their belongings from their hotel room to the home and continued fixing up the place.

“I had people pull up in the front yard telling me ‘You’re doing such a good job,’ ” Benjamin Spence said. “They told me that it was such an eyesore before and to keep up the good work.”

Last Tuesday, the couple was at home when a city inspector and Spartanburg Public Safety Department officers came knocking on their front door.

The inspector told them that the property’s owner wanted them out of the house, and they had two weeks to vacate.

“We were like ‘what?’ ” Railynn Spence said. “We said, ‘We’re the owners. We bought it out of an FLC sale.’ ”

The Spences said they went up to the county’s Delinquent Tax Office. There, an official showed them that the parcel number for the home at 777 Hayne St. ended in the digits 156.00, and paperwork showed that the Spences had made their bid on a parcel ending in 157.00, which was the empty lot.

Full article here…

Citi settles stockholder class-action suit for $590 million

Citigroup ($29.78 0.44%) will pay $590 million to settle a class-action lawsuit from stockholders, who claimed the bank made misleading statements about its exposure to several collateralized debt obligations tied to risky mortgages.

Investors in the class action bought Citi stock between Feb. 26, 2007, and April 18, 2008, just as housing began to collapse and credit markets froze. The average stock price fell by 46% from a $56.41 high during this period.

“This fall caused billions of dollars in shareholder losses and made Citigroup common stock the worst performing stock in the Dow Jones Industrial Average for 2007,” according to a statement Wednesday from Kirby McInerney, the firm representing the investors.

Citi admits no guilt under the settlement and will pay investors from its existing litigation reserves.

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IN RE: INDYMAC MORTGAGE-BACKED SECURITIES LITIGATION – Court Grants Class Certification to Purchasers of IndyMac RMBS

IN RE: INDYMAC MORTGAGE-BACKED SECURITIES LITIGATION – Court Grants Class Certification to Purchasers of IndyMac RMBS.

First Take: Progress Report from the Monitor of the National Mortgage Settlement

First Take: Progress Report from the Monitor of the National Mortgage Settlement.