ABIGAIL FIELD: NYAG’S STANDING TO SUE BOFA
NY AG Eric Schneiderman’s suit to bring meaning to the servicing standards of the National MortgageEnforcement Fraud rises and falls on how the D.C. Circuit interprets two provisions of the Consent Judgment.
In my last post, I explained that one provision–the one sentence section II–seems to require that the bankscomply to the letter of the servicing standards in Exhibit A, notwithstanding the elaborate metrics/monitoring process that institutionalizes banks’ right to violate the standards so long as they don’t do it too often. If it doesn’t Schneiderman has no suit.
But even if it does require perfect compliance, the AG has one more argument he has to win. I didn’t explain that properly last post. Here’s the key part:
“3. Enforcement Action. In the event of an action to enforce the obligations of Servicer and to seek remedies for an uncured Potential Violationfor which Servicer’s time to cure has expired, the sole relief available in such an action will be:
(a) Equitable Relief….
(b) Civil Penalties….”
NY AG Schneiderman’s right to sue hinges on how the bolded language is read. If “enforce the obligations of Servicer” means the same thing as “seek remedies for an uncured Potential Violation”, then there’s no right to sue until the metrics process really plays out. Bank of America would then be right. (See the end of its letter to A.G. Schneiderman.)
How many times Senator John McCain has been on the bobblehead shows on Sundays? Who cares. In fact, nobody cares about what McCain thinks on those shows. How about we talk about how Congress and Senate are not doing their jobs and taken more recess time off than doing the American people’s work.
Short sales show up on credit reports as foreclosure, sellers unable to get back in housing market
TRINITY, Fla. – More and more short sales are turning up as foreclosures on credit reports. The issue caught the attention of Senator Bill Nelson who this week asked for a federal investigation into why the mortgage industry does not have a separate credit reporting code for short sales.
Like some of his Trinity neighbors, George Albright unloaded his underwater two-story thru a short sale. A short sale damages credit versus a foreclosure that slashes consumer scores.
It’s been more than two years since Albright sold his home, and now’s he ready to buy again, but can’t. It’s showing up as a foreclosure on his credit.
Read more: http://www.abcactionnews.com/dpp/money/consumer/taking_action_for_you/short-sales-show-up-on-credit-reports-as-foreclosure-sellers-unable-to-get-back-in-housing-market#ixzz2T79x6arF
Foreclosure checks leave many distressed
Tyler Reid is among millions of Americans who have received checks in recent weeks to offset the loss of their homes during the foreclosure crisis. Reid’s Ladera Ranch condo was foreclosed in 2010, despite his attempts to pursue a loan modification or sell it in a short sale.
Philly councilman pushes to remove $250 million city deposits from Wells Fargo bank
A Philadelphia city councilman has introduced legislation to remove city deposits from a major financial institution — until he hears a good reason why it should have the city’s business.
Councilman Jim Kenney’s legislation would remove about a quarter-billion dollars from Wells Fargo & Co. bank. Kenney says he’d like Wells Fargo officials to explain why it should hold the city’s money.
“We gave those large institutions taxpayer money to keep them from failing to think they could back off some of those debt-service payments or swap payments that are killing our school district and killing our city,” Kenney said.
The city and school district lost $331 million with financial institutions from participating in speculative rate management agreements also known as swaps. Kenney says he believes it’s time for big banks to come and ask for the city’s money.
“This bank has our deposits and our business since the PNC days,” he said. “We’ve never had a discussion with the new iteration of each bank that’s come forward whether it’s PNC or CoreStates or Wachovia or Wells Fargo … why we should be doing business with them as opposed to anyone else.”
Bank of America Unloads Some Commercial Mortgage Servicing Rights to KeyCorp
Bank of America (BAC) struck a deal late Thursday to sell a portion of its $110 billion commercial mortgage servicing rights portfolio to Keycorp (KEY) in a move that further separates the No. 2 largest U.S. bank from the turbulent housing industry.
Terms of the deal were not disclosed.
KeyBank Real Estate Capital, the commercial real estate arm of KeyCorp, said it will purchase virtually all of the third party CMBS and special servicing rights from Bank of America’s global mortgage and securitized products business.
Read more: http://www.foxbusiness.com/industries/2013/05/10/bank-america-unloads-110b-commercial-mortgage-servicing-rights-to-keycorp/#ixzz2T75QetPK
JPMorgan board members targeted by shareholder advisers
JPMorgan Chase, one of the nation’s largest banks, survived the financial crisis better than most — only to have the $6 billion “London Whale” trading loss last year expose embarrassing flaws in its accounting and risk controls.
Influential shareholder advisers are now calling for a more personal reckoning at the top of the company.
Two groups, Institutional Shareholder Services and Glass, Lewis & Co., are urging shareholders to reject the re-election of three board members, including billionaire Chicago business executive James Crown. Glass Lewis also is calling for a no vote on members of the firm’s audit committee, including Chicagoan James Bell, who is chairman of the Chicago Infrastructure Trust and a retired Boeing Co. chief financial officer.