Daily Archives: January 16, 2013

JPMorgan Halves Dimon Pay, Says CEO Responsible for Lapses

JPMorgan Chase (JPM) Chief Executive Officer Jamie Dimon had his pay cut by half after a review of losses at the bank’s chief investment office found he bears responsibility for the blunders.

The CEO’s compensation for 2012 is $11.5 million, the New York-based bank said today on its website, compared with $23 million a year earlier. The 2012 sum includes a $1.5 million salary and $10 million of incentive compensation.

“Mr. Dimon bears ultimate responsibility for the failures that led to the losses in CIO and has accepted responsibility for such failures,” the New York-based company said today on its website after spending about eight months reviewing what Dimon, 56, has called “egregious mistakes” at the CIO.

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LETTER | In Wake Of Wrongful Foreclosures Settlement Deal, Brown Urges Fed and OCC To Maximize Relief For Homeowners

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Michigan bank settles ‘shameful’ housing discrimination charges

Michigan bank settles ‘shameful’ housing discrimination charges

A bank in Michigan has settled Justice Department charges that it discriminated against African-Americans in its lending practices, agreeing to invest $165,000 in financing programs and other services and to open a loan production office in a predominantly black neighborhood. 

Community State Bank of St. Charles, Mich. allegedly “engaged in a pattern or practice of discriminatory racial redlining harming African-Americans in violation of the Equal Credit Opportunity Act and the Fair Housing Act,” according to the complaint by DOJ filed January 15 in U.S. District Court for the Eastern District of Michigan. 

The suit grew out of an examination in 2010 by the bank’s overseer, the Federal Deposit Insurance Co., which assigned Community its lowest possible rating, “substantial non-compliance,” which it awards to less than one half of one percent of banks it inspects. The FDIC referred the matter to DOJ for enforcement. 

Community is a small bank, with assets of about $200 million and eight full-service branches in the Saginaw/ Flint area. According to the complaint, the bank excluded loan applicants from neighborhoods with substantial African-American populations. The result: while African-Americans make up about 20 percent of the Saginaw metropolitan area as a whole, they constituted just 1 percent of the population in the area served by the bank.

Quiet Title is Possible in Florida Foreclosure Actions

Elizabeth Spencer, Appellant, vs. EMC Mortgage Corporation, Appellee.

No. 3D11-136

COURT OF APPEAL OF FLORIDA, THIRD DISTRICT

97 So. 3d 257; 37 Fla. L. Weekly D 2068

August 29, 2012, Opinion Filed

JUDGES: Before SALTER  and FERNANDEZ , JJ., and SCHWARTZ, Senior Judge. FERNANDEZ ., J., concurs.

OPINION BY: SALTER

OPINION

[*258]  SALTER , J.

Elizabeth Spencer appeals a final summary judgment of foreclosure entered against her in December 2010 based on defaults in payment which are alleged to have begun in July 1997, over thirteen years earlier. We reverse and remand the case with directions to enter a judgment dismissing the foreclosure case based on the lender’s failure to prosecute it, among other procedural and substantive deficiencies.1

FOOTNOTES

1 The parties agreed to stay a foreclosure sale until this appeal could be completed.

Background

Ms. Spencer obtained a residential mortgage loan for $75,600 from United Companies  Lending Corporation in August 1993. The contract interest rate was 13.5% per annum. The loan was to be amortized over fifteen years in level monthly payments, with the last payment due September 1, 2008.

United Companies   [**2] commenced a first foreclosure proceeding against Ms. Spencer in early 1998. In March 1999, however, United Companies  filed a petition under Chapter 11 of the United States Bankruptcy Code. In September 2000, the bankruptcy court approved the sale of a number of mortgage loans, including the mortgage loan to Ms. Spencer, to EMC Mortgage Corporation, the appellee here. In 2001, EMC was substituted for United Companies  as the foreclosing plaintiff against Ms. Spencer, but that lawsuit was dismissed for lack of prosecution in November 2002. The file in that initial foreclosure action was later destroyed by the Miami-Dade circuit court clerk’s office in accordance with its normal procedure.

Later in November 2002, EMC filed a second foreclosure complaint against Ms. Spencer and various other defendants, alleging that Ms. Spencer failed to make regular monthly payments, “the loan being due for July 1, 1997.” In her responsive pleading, Ms. Spencer raised a number of affirmative defenses, including an allegation that the complaint was barred by the statute of limitations. After a substitution of counsel for EMC and various motions, the case languished for thirteen months. The trial court issued  [**3] a notice of lack of prosecution (order to show cause why the case should not be dismissed), docketed on March 5, 2009, and it scheduled a hearing for the matter for May 29, 2009. There was no record activity in the case during the sixty-day period following the notice of lack of prosecution.

Read more from Attorney Gregory Bryl