Los Angeles Foreclosure Postponed for 3 Years Now Reaches Settlement
Los Angeles, CA — (SBWIRE) — 08/14/2013 — Los Angeles Homeowner Molly Basler used The Law Offices of Art Hoomiratana and Paladin Securitization Auditors to postpone her foreclosure and obtain a settlement from her lender.
Molly Basler was in foreclosure and facing a sale of her home after being behind a year in payments when they retained the Law Office of Art Hoomiratana to initiate immediate litigation against her lender to defend against the pending foreclosure. The Law Offices of Art Hoomiratana immediately retained Paladin Securitization Auditors, a nationally recognized securitization audit company, to consult on this matter and find a sustainable cause of action that could be used to litigate on relating to mortgage fraud.
Paladin’s audit found the following was present in the foreclosure process: grounds for Fraud and Wrongful Foreclosure Case based upon statutory violations, promissory estoppel, Negligence, Negligent Misrepresentation, Violation of Business and Professional Code 17 200. Based on these findings, the Law Offices of Art Hoomiratana litigated on these matters and kept the homeowner’s sale postponed for two years while they worked out a negotiation through a settlement hearing.
The settlement between Basler and her lender provided a loan modification with a deferred principal balance of $502,312.00 to Basler and lowered her monthly mortgage payment from $2,300 to $1,297.14.
Executive Offices of Citi and Nationstar Stop Foreclosure and Settle
Madison, ME — (SBWIRE) — 08/20/2013 — Up against a wall and facing a possible eviction from his home, Laszlo Kakuk needed a way to stop foreclosure. After seeking out the services of The Law Offices Of Art Hoomiratana, a foreclosure defense law firm it was suggested that Kakuk obtain a securitization audit from Paladin Securitization Auditors. The securitization audit, although widely criticized on the internet, is an invaluable tool in foreclosure defense when it is performed by an experienced and creditable auditing company. As seen by their list of success stories, Paladin Securitization Auditors appears to be just that company.
Kakuk’s securitization audit found that the Mortgage Note and Deed had become bifurcated and that the servicer, Nationstar was hired by Fannie Mae to collect the debt but was not the true holder of the note, had no validity to foreclose. In layman’s terms, because the loan had been securitized and sold numerous times, the true owner of the Note and the Deed were not one in the same. This means that Nationwide, the current load servicer, had no right to foreclose on Kakuk.
After Kakuk received his securitization audit he immediately drafted a letter to the Office of the President of Nationstar threatening immediate litigation based upon the attached audit and gave them one more opportunity to settle out.
In under one weeks time a member of the executive offices of Nationstar Mortgage contacted the client called up offering them a work-out solution, removed their loan from foreclosure, and informed them that their attorney had instructed them to settle this matter our before it went to court. Kakuk said the following:
I am bursting at the seams….I just received a phone call from the cooperate office of Nationstar Mortgage escalation department. Anyway, this man told me that they are wanting to resolve the issue at hand and even if a HAMP cannot be approved then they have in house options to offer. They stated that they had received a letter from the attorney in Rhode Island who told them to try and resolve the issue with us opposed to litigation.
Source: Foreclosure Hamlet
And here are some samples recorded documents of Deborah L. Board that she notarized fraudulent assignments for Dominique Johnson: http://www.hofj.org/virtualoffice_files/DominiqueJohnson030413.pdf
Morgan Stanley Mortgage Securitization Is a Microcosm of Our Economic Malady
Recently, Morgan Stanley became the first investment bank to be sued by a group of homeowners, who claim they suffered from racial discrimination due to securitization of high-risk mortgage loans, which lead to the financial crisis of 2007-2008.
This action is significant, since the plaintiffs elected to bypass the original lender of the subprime mortgage and target the investment bank responsible for securitizing high-risk loans in neighborhoods that were vulnerable to economic catastrophe. They cite the Fair Housing Act statute as a basis for this action.
Morgan Stanley orchestrated these securitizations as a principal financier of the now-defunct New Century Mortgage Corp. This firm was highly leveraged with a huge concentration of subprime loans. A small drop in asset prices virtually wiped out shareholder equity in very short order.
BlackRock CEO Larry Fink, who has been mentioned as a possible Treasury secretary, suggested the credit bubble was present in 2006 and recognized it would implode. However, he acknowledged his timing of the crisis was grossly inaccurate, according to Businessweek.
Wanna see a teller? Banks say pay for it
Banks now want you to pay for face time, as more institutions charge fees for what was once the ritual for withdrawing and depositing your money: interacting with a teller.
U.S., Switzerland strike bank deal over tax evasion
(Reuters) – The United States and Switzerland have struck a deal to allow some Swiss banks to pay fines to avoid or defer prosecution over tax evasion by their U.S. customers, moving closer towards ending a long-running dispute.
The deal will apply to about 100 second-tier Swiss banks, which could have to disclose some previously hidden information and face penalties of up to 50 percent of assets they managed on behalf of wealthy Americans.
But it does not cover banks already under U.S. criminal investigation, which include some of Switzerland’s biggest banks such as Credit Suisse and Julius Bae
Blame BofA layoffs on falling refi volumes
As the mortgage refinance boom continues to reverse course, Bank of America (BAC) is falling in line with other lenders by cutting more than 1,000 jobs in home loan fulfillment and consumer banking services.
Bank of America spokesperson Jumana Bauwens confirmed the company’s impending layoff Friday.
“We continue to reduce the size of our mortgage servicing operations in line with the successful reduction of our portfolio of delinquent mortgage customers,” Bank of America said in a statement.
Bank of America currently has fewer than one-third the amount of customers needed to support current levels of specialized support teams and services.
Additionally, the actions reflect ongoing efforts to keep up with market realities, including declining refinance volumes as interest rates tick up.
NCUA files RMBS suit against Morgan Stanley
The National Association of Credit Unions filed a lawsuit in the Federal District Court in Kansas against Morgan Stanley & Co. (MS), Inc. and other firms, NCUA said in a press release.
The lawsuit charged the companies for selling more than $566 million in faulty mortgage-backed securities to now-defunct U.S. Central and WesCorp corporate federal credit unions.
“Firms like Morgan Stanley sold securities that turned out to be faulty, triggering a crisis in the credit union industry that has been extremely expensive to contain and repair, and credit unions are still paying the tab,” said NCUA Board Chairman Debbie Matz.
“All the credit unions we supervise and insure are sharing this burden. The people who are accountable, those who precipitated this crisis, should be required to shoulder that burden, as well,” she added.
Homeowner Can Challenge Mortgage Assignment
udge Kennelly has ruled that a homeowner can challenge a mortgage assignment under Illinois law in Elesh v. MERS et al., No. 12 C 10355 (Aug. 16, 2013). The Court stated that
Defendants argue that Elesh is not a party to the assignment and thus lacks standing to challenge it. Only one of the cases upon which defendants rely, however, is an Illinois case, and that case makes it clear that this supposed “rule” has exceptions. See Bank of America Nat’l Ass’n v. Bassman FBT, LLC, No. 2-11-0729, 2012 IL App (2d) 110729, 981 N.E.2d 1, 6-11 (2012). The basic requirements of standing are that the plaintiff suffered an injury to a legally cognizable interest and is asserting his own legal rights rather than those of a third party. See id. at 6. Elesh unquestionably meets the first requirement; the recorded assignment constitutes a cloud on his title, and Deutsche Bank recently relied on the assignment to prosecute a foreclosure action against him. Elesh also has a viable argument that in challenging the validity of the assignment, he is asserting his own rights and not someone else’s rights. For example, given Deutsche Bank’s apparent lack of possession of the original note, Elesh is put at risk of multiple liability as long as Deutsche Bank claims to hold the mortgage. See id. at 7-8 (citing cases indicating that an obligor has an interest in ensuring that he will not have to pay the same claim twice). In any event, Illinois law, to the extent there is much of it on this point, appears to recognize an obligor’s right to attack an assignment as void or invalid under certain circumstances. (3)
Libor Rate-Probe Spotlight Shines on Higher-Ups at Citigroup, Other Banks
Three days after Tokyo-based trader Tom Hayes was fired by Citigroup Inc.C +0.33% for trying to manipulate benchmark rates, he shot off a letter to one of the bank’s human-resources executives.
“My actions were entirely consistent with those of others at senior levels” in Citigroup Japan, he wrote on Sept. 9, 2010, and “the senior management at [Citigroup Japan] were aware of my actions.”
Regulators in the U.S. and U.K. are probing up to a dozen banks, including Citigroup, in connection with alleged efforts to manipulate the London interbank offered rate, or Libor, in order to benefit their trading positions. Among other things, they want to know whether senior executives knew of, or participated in, illegal activity. Mr. Hayes’s letter is now in the hands of investigators in the U.K.’s Serious Fraud Office, and the former trader has been cooperating for months with their investigation, according to a person familiar with the matter.