Daily Archives: May 4, 2013

Link

Man sues Bank of America, JPMorgan Chase for illegal debt collection

Man sues Bank of America, JPMorgan Chase for illegal debt collection

CHARLESTON – A Charleston man is suing Bank of America N.A. and JPMorgan Chase Bank N.A. for illegal debt collection in two separate lawsuits.

In 2005, William Martin was induced into two simultaneous loans with Quicken Loans based on misrepresentations regarding the actual value of his property, according to two complaints filed April 17 in Kanawha Circuit Court.

Martin claims his Pennsylvania home secured the loans and the combined indebtedness of the two loans was more than $293,000; the first mortgage was for $187,000 and the second mortgage was for $106,300.

Quicken’s appraiser appraised the property at a value of $300,000 when, unknown to Martin, the property was only worth approximately $240,000, according to the suits.

Martin claims the first mortgage was subsequently assigned to Bank of America and the second mortgage was assigned to Chase.

In January 2006, Martin discovered the inflated appraisal when his job required that he relocate to West Virginia, according to the suits.

U.S. May Charge JPMorgan For Power Market Manipulation: Analysts

(Reuters) – The regulator of U.S. power markets appears likely to pursue manipulation charges against JPMorgan Chase & Co , analysts said, after a New York Times report on the agency’s document that seemed to lay out its case.

The Times said on Friday it reviewed a confidential, 70-page government document that the U.S. Federal Energy Regulatory Commission (FERC) sent to JPMorgan in March, which alleged the bank manipulated the power market in California and Michigan in 2010 and 2011.

FERC investigators found JPMorgan devised “manipulative schemes” that transformed “money-losing power plants into powerful profit centers,” the Times reported, citing the document. It said the bank has until mid-May to respond.

Read on.

Who Leaked the JPMorgan Chase FERC Document to the New York Times?

The New York Times is still in exclusive possession of a confidential government document recommending that the Federal Energy Regulatory Commission sue several individuals atJPMorgan Chase over alleged “manipulative schemes” in connection with energy trading in California and Michigan.

I can confirm that the document exists and recommends official actions against the JPMorgan executives. But the document itself remains elusive.

As does the question of who gave it to the Times.

Read on.

Ex-DocX President Gets at Least 40 Months in Robo-Sign Case

Lorraine Brown, former president of the mortgage document processor DocX LLC, was sentenced to at least 40 months in prison on a racketeering charge in a robo- signing case,Michigan Attorney General Bill Schuette said.

The Alpharetta, Georgia, resident was sentenced yesterday by Judge Mark Trusock in Grand Rapids, Michigan, and sent to the state corrections department to start her sentence, the attorney general said today in a statement.

Brown’s term could be as long as 20 years, Schuette said. His spokeswoman, Joy Yearout, said today in a phone interview that the duration depends on her conduct while incarcerated.

Read on.

Class Certification against New Century Mortgage and Wells Fargo Mortgage as trustee for Carrrington Mortgage Loan Trust and Tom Croft – May 2013

New Century Mortgage and Home123 Corporation filed for bankruptcy in Delaware on 4-2-2007. Now the bankruptcy case is called New Century Liquidating Trust and the case number is 07-10416 KJC. As of 5/2/2013 there are still a handful of homeowner-borrowers litigating up in that bankruptcy. At least two pro se homeowner-borrower’s negotiated cash settlements between 60K and 80K. 

This is also a brand new class action case filed.

Link

Flagstar Settles Mortgage Suit for $110M

Flagstar Settles Mortgage Suit for $110M

Flagstar Bancorp (FBC) in Troy, Mich., will pay $110 million to settle allegations that it misrepresented the quality of more than $1 billion of private label mortgage-backed securities it sold to investors.

The settlement ends a suit that MBIA Insurance Corporation brought in January, alleging that Flagstar lied about the quality of loans backing $1.1 billion of securities that MBIA insured in 2006 and 2007. MBIA said that it had to pay $165 million to cover losses the two securities trusts suffered.

Flagstar said Thursday that the settlement will have no significant financial impact due to its high litigation reserves. In February, Flagstar said it would set aside $161 million to cover potential losses in the MBIA case and other lawsuits over its mortgage-underwriting practices. The announcement came shortly after a federal judge ordered it to pay $90 million to bond insurer Assured Guaranty Municipal Corp over allegations it misled the insurer over the quality of loans backing $1 billion of securities. Flagstar said it disagrees with the ruling and intends to appeal.

Link

U.S. Prosecutors Pursuing Libor Convictions, Acting Criminal Division Head Raman Says

U.S. Prosecutors Pursuing Libor Convictions, Acting Criminal Division Head Raman Says

U.S. prosecutors are pursuing guilty pleas, criminal convictions and “significant monetary penalties” from banks and their employees in the global investigation into the rigging of benchmark interest rates, a senior Justice Department official said.

Mythili Raman, the acting head of the department’s criminal division, said authorities “are not done” with the wide- ranging probe that has led to resolutions with three international banks, including the Royal Bank of Scotland Group PLC in February, and criminal charges against two former UBS AG (UBSN) traders.

“Banks will be held to account through public admissions of guilt, payment of significant monetary penalties and, as seen with RBS and UBS, criminal convictions,” Raman said today at a Washington conference sponsored by the Corporate Crime Reporter newsletter. “Banks will be required to remediate their bad behavior, individual targets will be charged and meaningful cooperation from the subject banks will be demanded.”