Bank Of America Explains Why It Never Assumed Title To Squatter-Filled Foreclosure
Yesterday, we told you about the California man who said he lost his house to foreclosure but who is being held responsible for the squatters who have moved into his former house because Bank of America has yet to assume the title to the property. Today, we bring you the bank’s side of the story.
According to a statement from the bank, BofA could not complete the foreclosure process on this particular home because the homeowner filed for bankruptcy in 2010.
“As a result, title to the property remains in his name as the file has continued to show that the property is in an active bankruptcy proceeding,” explains the bank, which points out that collection activities are restricted during bankruptcy proceedings.
And while the homeowner seemed surprised in the CBS San Francisco story to learn that he still owned the property that he’d claimed was lost to foreclosure around two years ago, a rep for BofA says that the bank has had “several conversations” with him in which it was explained “that he still owns the property and is in the strongest legal position to ask authorities to evict the squatters.”
“[The homeowner] had been made aware last fall that in order to resolve his concerns, we would need information that the property was no longer part of an active bankruptcy,” writes BofA, which says it finally received this notification in December 2012. Since then, the bank claims to have been working with the former homeowner and the mortgage owner to “expedite an acceptable liquidation of the mortgage that would lead to transfer of the title from his name.”
The bank says that the homeowner recently agreed to a deed-in-lieu (DIL) transaction, in which he would transfer the home over to the mortgage-owner rather than go through the standard foreclosure process, but that the investor holding the mortgage on the property did not initially go along with that proposal.
JPMorgan Chase CEO Jamie Dimon: ‘We Actually Benefit From Downturns’
Like most soft-spined Americans, you probably have painful memories of the financial crisis and consequent recession. Perhaps you even think of those things as “bad.” Fortunately, Jamie Dimon is not like the rest of you losers.
That is because, unlike you, Jamie Dimon is CEO of JPMorgan Friggin’ Chase, America’s greatest bank, which just so happens to snack on financial crises and recessions like so much KIND bar.
“This bank is anti-fragile, we actually benefit from downturns,” Dimon bragged to his bank’s investors at a conference on Tuesday.
And it is true! The bank definitely benefited from the last downturn. It got to buy Bear Stearns in a government-backed fire sale, getting itself a brokerage business on the cheap in exchange for shouldering only a few tiresome legal burdens. It also got billions of dollars in government handouts, from $25 billion in TARP funds to billions in savings from low-interest-rate borrowing programs to a permanent subsidy arising from the idea that the government will bail out the bank if it ever gets in trouble.
That permanent subsidy amounts to about $17 billion per year, according to a recent Bloomberg View study, representing nearly all of the bank’s profits. No other bank gets such a large subsidy, according to Bloomberg’s study (although, to be fair, some find Bloomberg’s methods unsound, to quote from Jamie Dimon’s favorite movie).
BULLETIN: Nevada’s 8th Judicial District Court dismisses all charges against LSI title officers.
LAS VEGAS — New evidence bearing on allegations that Attorney General Catherine Cortez Masto and her top deputies engaged in repeated and systemic prosecutorial misconduct to indict two Lender Processing Services employees is scheduled to go before Nevada’s Eighth Judicial District Court today.
Defense attorneys for the employees say photographs now submitted to the court provide “potent proof” of the falsity of sworn testimony by Masto’s former chief deputy and head criminal prosecutor in the case, John P. Kelleher — as well as the falsity of assurances that Masto’s office gave to the court.
Gary Trafford and Gerry Sheppard, two LPS title officers, were indicted by a Clark County grand jury in November 2011 on charges of so-called robo-signing “forgery,” having authorized certain LPS employees they supervised to sign the title officers’ names to legal documents.
Although Nevada law actually appears to permit “surrogate signing,” Kelleher, say the defense attorneys, got the indictments by misleading the grand jury “on the legal requirements for the crimes charged” and by using “inflammatory hearsay.” Then, “when grand jurors attempted to probe the factual basis for this testimony, the prosecutors improperly precluded any questioning on the subject.”
U.S. regulator says settlements with banks are appropriate
WASHINGTON, Feb 26 (Reuters) – A top U.S. bank regulator on Tuesday offered a lengthy defense of entering into settlements with banks, taking a swipe at critics who have questioned whether regulators are aggressive enough in taking banks to trial.
Comptroller of the Currency Thomas Curry said his agency’s main goal as a prudential supervisor is to fix problems and make sure that federal banks operate in a safe and sound manner.
“The purpose of our actions is not to punish banks or make examples of anyone,” Curry said in a speech before state attorneys general in Washington.
“We are very different from agencies like the Department of Justice, which is authorized under the law to bring actions for punitive purposes, including criminal actions, against institutions and individuals,” he said, according to prepared remarks.
– See more at: http://newsandinsight.thomsonreuters.com/Legal/News/2013/02_-_February/U_S__regulator_says_settlements_with_banks_are_appropriate/#sthash.QkaMsJpl.dpuf
Top WaMu execs in mortgage biz again
From the “If at First You Don’t Succeed” Department: David
Schneider, who headed Washington Mutual’s home-loans unit during the peak of the mortgage bubble, was running another sizable mortgage company until this past Friday.
Though Schneider is now out, several other WaMu veterans, including former chief operating officer Stephen Rotella, are still involved with the company, Vericrest Financial of Irving, Texas.
Vericrest, wholly owned by private equity firm Lone Star, specializes in servicing subprime mortgages and delinquent or otherwise troubled loans, of the sort that WaMu became notorious for peddling. It services some 55,600 mortgages with total outstanding principal balances of $10.1 billion.
Schneider, who was kept on by JPMorgan Chase after it acquired WaMu’s operations from the Federal Deposit Insurance Corp. in 2008, became Vericrest’s CEO just over a year ago.
But after reports earlier this month in the trade press that Schneider had left, and a direct inquiry from The Seattle Times, Vericrest issued a statement late Friday that Schneider had previously announced his intention to resign and that Feb. 22 was his last day. (Confusingly, though, Vericrest still lists Schneider as CEO on its website.)
Gary Gensler, the head of the Commodities Future Trading Commission (CFTC), has made a pretty depressing admission to the BBC. During an interview on one of the greater financial scandals in modern times, the rigging of the London Interbank Offered Rate (LIBOR), Chairman Gensler submitted that the global benchmark for interest rates is still “not clean” and was often “completely made up.”
“We have a lot more work to do,” Gary Gensler, chairman of the Commodity Futures Trading Commission, told the BBC in London.
He suggested that the rate was often “completely made up”…
Libor, which is set in London, is meant to reflect the average rate that banks pay to lend to each other and is used to benchmark everything from car loans and mortgages to complex financial transactions around the world.
Posted in Uncategorized