Daily Archives: November 5, 2012

US orders 90-day suspension of FHA foreclosures in disaster areas

Nov 5 (Reuters) – One of the U.S. government’s largest mortgage aid programs will suspend foreclosures for 90 days in areas affected by megastorm Sandy, U.S. Housing and Urban Development Secretary Shaun Donovan said on Monday.

Read on.

JP Morgan’s big lost in court against FHFA: U.S. District Judge Denise Cote finds FHA justifiably relied on banks’ offering docs

Here is the court document:

Romney Avoids Taxes via Loophole Cutting Mormon Donations

Harry Reid was right on the money and Bloomberg finally cracked the story.

In 1997, Congress cracked down on a popular tax shelter that allowed rich people to take advantage of the exempt status of charities without actually giving away much money.

Individuals who had already set up these vehicles were allowed to keep them. That included Mitt Romney, then the chief executive officer of Bain Capital, who had just established such an arrangement in June 1996.

The charitable remainder unitrust, as it is known, is one of several strategies Romney has adopted over his career to reduce his tax bill. While Romney’s tax avoidance is legal and common among high-net-worth individuals, it has become an issue in the campaign. President Barack Obama attacked him in their second debate for paying “lower tax rates than somebody who makes a lot less.”

In this instance, Romney used the tax-exempt status of a charity — the Mormon Church, according to a 2007 filing — to defer taxes for more than 15 years. At the same time he is benefiting, the trust will probably leave the church with less than what current law requires, according to tax returns obtained by Bloomberg this month through a Freedom of Information Act request.

Read on.

Mitt Romney’s Bain Capital Dodged $102 Million In Taxes By Using Dutch Tax Loophole, Newspaper Writes

Tralated in English by Dutch newspaper:

The tax loopholes of Mitt Romney also run through the Netherlands. The private equity fund Bain Capital, which presidential candidate participates, via the Dutch would route some 80 million euros in dividends have dodged.

Royal Park Investment Sues Bank of America Over Mortgage Securities

Royal Park Investments SA/NV sued Bank of America Corp. (BAC), the second-largest U.S. bank, in New York state court over losses on about $1.6 billion in residential mortgage-backed securities.

The suit seeks damages of more than $713 million for losses on the securities, which were initially purchased by third parties, according to a complaint filed in New York State Supreme Court in Manhattan on Oct. 26. The court was closed last week because of Hurricane Sandy.

Read on.

BRIEF-JPMorgan Chase fails to win dismissal of FHFA lawsuit over Fannie Mae, Freddie Mac mortgage debt losses

Reuters:

Nov 5 (Reuters) – JPMorgan Chase & Co : * Fails to win dismissal of fhfa lawsuit over fannie mae, freddie mac mortgage securities losses — court ruling * U.S. district judge denise cote dismisses some claims raised by fhfa * Fhfa had alleged that fannie mae, freddie mac were misled over its purchases of more than $33 billion rmbs sponsored or underwritten by JPMorgan, Bear Stearns or Washington mutual