After describing one of the most egregious stories of foreclosure madness ever, Chris Hayes details a program that is the right way to handle the threat of foreclosure, and its creator, and a homeowner who was helped by the program, join him.
Chris Hayes details the story of a man who died in court trying to get his home back, after the bank foreclosed on him, after a subcontractor erroneously said he owed back property taxes.Â The incredibly sad story is followed by the story of a program that actually helps struggling homeowners.
Federal judge slapped Wells Fargo with a $203 million restitution order and a new injunction in a class action over “high-to-low” debit posting
(CN) – A federal judge slapped Wells Fargo with a $203 million restitution order and a new injunction in a class action over “high-to-low” debit posting.
After paying hundreds of dollars in fees on relatively small overdrafts, lead plaintiffs Veronica Gutierrez and Erin Walker sued Wells Fargo to get their money back and stop the “high-to-low” practice, which the bank started in California more than a decade ago. The bookkeeping method processes account debits in the order of the highest amount to the lowest, emptying customer accounts by multiplying overdraft fees that the bank then collects in the billions of dollars.
U.S. District Judge William Alsup had previously ruled against Wells Fargo on several issues after a two-week bench trial on the issue in San Francisco. He found that the bank had acted in bad faith and violated several prongs of the California Business and Professions Code. The court ordered the bank to stop using the high-to-low method and to pay back some $203 million in overdraft fees.
A three-judge panel of the 9th Circuit reversed most of that decision late last year, and vacated the injunction and the restitution order.
N.Y. AG Revising Foreclosure Settlement Complaint Against B of A, Wells
Documentation failings: they aren’t just for bankers.
New York Attorney General Eric Schneiderman is revising his allegations of foreclosure settlement violations by Wells Fargo (WFC) and Bank of America (BAC), resetting the clock on his plans to sue the banks over 339 alleged servicing violations.
Under the national mortgage settlement agreement, Schneiderman must give the other settlement parties 21 days before pursuing litigation. Schneiderman asserted during his May 6 press conference that his office was ready to bring a case, making the re-submission something of a do-over.
The cause of the revisions is unclear, as is the question of whether complaints will be resubmitted for each of the cases. A spokeswoman for the office was checking on this late Friday afternoon.
The attorney general “temporarily suspended” his complaints earlier this week, according to the office of Iowa’s Attorney General, who is on the monitoring committee for the national foreclosure settlement. Iowa declined to comment on why New York’s original grievance was retracted.
“We are sending the [mortgage settlement] monitoring committee more information which we believe will help them in their analysis of their enforcement action,” a spokeswoman for Schneiderman told American Banker. “We expect to have that to them by the middle of next week..”
The owners of an Aurora woman’s mortgage said they absolutely will file a foreclosure lawsuit to take her house because of claims that Colorado’s public trustee process is unconstitutional.
In a request to dismiss a federal lawsuit against them, lawyers for U.S. Bank on Thursday said they’ll pursue a foreclosure against Lisa Kay Brumfiel in Arapahoe County District Court “to remove any due process concerns” that come from a public trustee foreclosure.
U.S. District Judge William J. Martínez stopped the Arapahoe County public trustee from auctioning the houseuntil he could hear evidence that Brumfiel’s constitutional rights were violated.
U.S. Bank is the trustee for an investment trust that owns the rights to mortgages bundled into securities that were sold in 2007 and included Brumfiel’s note.
The trust ownership, which is made up of a consortium of investors over which there is a servicer who collects homeowners’ payments and U.S. Bank as the trustee who distributes the proceeds, wants the case dismissed because it says the constitutional question is moot because it withdrew the public trusteeforeclosure it began in October 2011.
Additionally it consented to a permanent injunction against pursuing Brumfiel’s house via the public trustee foreclosure process.
American Banker is reporting that Wells Fargo ($39.88 0.62%) andCitigroup ($51.45 0.84%) ‘halted’ most of their foreclosure sales in several states after evaluating the process against the backdrop of new guidance from the Office of the Comptroller of the Currency.
Reporters Jeff Horwitz and Kate Berry wrote that within two weeks of the OCC’s release of new guidance on minimum standards for foreclosure sales, Wells, Citi and JPMorgan ‘all but stopped’ foreclosure sales.
Since then, JPMorgan has picked them back up again.
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Sequester to shut HUD for seven days
The U.S. Department of Housing and Urban Development will close its offices nationwide on Friday, May 24th.
The news comes as a result of government-wide automatic spending cuts that took effect on March 1, 2013, known as sequestration.
Absent any action to overcome these required reductions, the Department anticipates the need to close and suspend operations for an additional six days over the remainder of the current fiscal year, HUD said in a statement.
The closures, which are paired with holidays when possible, are expected on:
- Friday, May 24th
- Friday, June 14th
- Friday, July 5th
- Monday, July 22nd
- Friday, August 2nd
- Friday, August 16th
- Friday, August 30th