Daily Archives: June 14, 2013

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Sexist boasts and banter at RBS as traders manipulated Libor after bailout

Sexist boasts and banter at RBS as traders manipulated Libor after bailout

An international criminal network inside RBS continued to fix a key interest rate for profit for two years after the bank was taken into taxpayer ownership, British and American regulators revealed today, as they fined the troubled lender a total of £390 million.

RBS, which is 83 per cent taxpayer owned, was punished today for “hundreds” of attempts to manipulate Swiss and Japanese Libor [interbank lending] rates, many of which were successful.

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Wells Fargo Sold A Florida Woman’s House In Foreclosure Even Though She Paid Up

Wells Fargo Sold A Florida Woman’s House In Foreclosure Even Though She Paid Up

A homeowner in Florida says her house was sold in foreclosure even though she was current on her Wells Fargo mortgage, ThinkProgress has learned. Her case is just one of many since the foreclosure crisis exposed improper or even potentially illegal behavior by banks.

Jo-An Seipp, who provided documents to ThinkProgress that verify her story, says that she fell behind in her mortgage payments in 2011 as she experienced financial difficulties with the business she owns. In 2012, her house went into foreclosure. But she went to the final judgment and told the judge that she intended to reinstate the mortgage by paying everything she owed, who gave her 60 days to do so. She sent the full instatement funds that the bank quoted – $141,441.81 – and the bank then reinstated her loan and told her it had vacated the final motion to foreclose. At that point she should have once again been the rightful owner of her house with no danger of a foreclosure sale.

Yet in reality the bank failed to stop the sale. Crimson Ibis, LLC, a real estate investment firm, bought the title to her house. Meanwhile, Seipp claims she got no notice about the sale.

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Drama, paper-throwing revealed in Bank of America mortgage testimony

Drama, paper-throwing revealed in Bank of America mortgage testimony

Bank of America execs and lawyers allegedly threw papers across the negotiating table and told Countrywide mortgage-bond investors their grandchildren would have grandchildren before they were paid for bad mortgages, according to accounts of courtroom testimony this week.

It’s yet another example of the mess Charlotte-based BofA has tried to unwind after buying Countrywide Financial in 2008. The deal has already cost BofA more than $40 billion in legal fees and settlement costs. The bank paid $4 billion to acquire the troubled subprime lender.

BofA is in court in New York this week seeking a judge’s approval of an $8.5 billion settlement that would resolve legal claims made by two dozen private investors in mortgage bonds sold during the subprime boom-then-bust.

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Beaufort County sues MERS

Beaufort County sues MERS

Beaufort County has filed a lawsuit against Mortgage Electronic Registration Systems, a nationwide mortgage database that is owned by nearly two-dozen large banks and mortgage services.

County officials say the company’s records do not always accurately reflect a loan’s owner.

The company also does not consistently alert the county Register of Deeds Office when loans on properties are bought, sold or bundled into a tradable security. Instead, the record indicates only that MERS owns the note, county attorney Josh Gruber said.

 

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CFPB launch of new mortgage rule implementation page

CFPB launch of new mortgage rule implementation page

Today, we are announcing our new Regulatory Implementation page, which consolidates all of our new 2013 mortgage rules and related implementation materials. This is an effort to support rule implementation and ensure that industry is ready to comply with the new borrower protections.

This is the central access point for our mortgage-related implementation materials, including:

  • Mortgage rules at a glance
  • Small entity compliance guides
  • Videos
  • Quick reference charts
  • 2013 rural or underserved counties list
  • Other helpful materials