Daily Archives: August 7, 2013

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Bank of America fends off fine, strikes deal in couple’s mortgage case

Bank of America fends off fine, strikes deal in couple’s mortgage case

Faced with one of the heftiest fines on record inOrlando’s federal bankruptcy court, Bank of America Corp. apologized earlier this year for missing court hearings, ignoring a judge’s orders and pestering a local couple for mortgage payments they didn’t owe.

But then the bank put its lawyers to work.

Now, after months of arguing that it had never received “adequate notice” of those earlier court proceedings, BofA has fended off the $220,000 fine by accepting a mortgage modification it had first approved 21/2 years ago but had been ignoring ever since, court documents show.

U.S. Bankruptcy Judge Karen S. Jennemann, who imposed the fine on BofA in March, lifted the sanction last month and approved a joint settlement between the bank and the Orange County couple that confirms the previous mortgage deal. It also calls for the bank to, among other things, pay the couple $72,000 in cash relief and $10,000 to cover legal fees.

The judge’s order, signed July 17, appears to end the baffling case of Warren Hougland and Mary Grant-Hougland. Court records show the bank approved the mortgage-relief plan in January 2011, inexplicably rescinded its approval in May, then kept trying to collect the older, higher mortgage payments despite court orders to the contrary.

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Class action lawsuit against Saxon Mortgage regarding HAMP

Class action lawsuit against Saxon Mortgage regarding HAMP

SAN FRANCISCO – Marie Gaudin can represent a class of California borrowers who did not receive loan modifications pursuant to the federal Homeowners Affordable Modification Program when they entered into trial period plans with Saxon Mortgage Services, a federal judge ruled.

COMPLAINT | USA vs BANK OF AMERICA CORPORATION, BANK OF AMERICA, N.A., BANC OF AMERICA MORTGAGE SECURITIES, INC., and MERRILL LYNCH, PIERCE, FENNER & SMITH, INC. f/k/a BANC OF AMERICA SECURITIES LLC – Suit For $850 Million

COMPLAINT | SEC v. BANK OF AMERICA, N.A., BANC OF AMERICA MORTGAGE SECURITIES, INC., and MERRILL LYNCH, PIERCE, FENNER & SMITH, INC. f/k/a BANC OF AMERICA SECURITIES LLC

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Bank of America to slash servicing positions

Bank of America to slash servicing positions

Bank of America informed the state of Pennsylvania that it plans to slash 209 mortgage servicing-related jobs at a facility in Pittsburgh.

The company’s spokeswoman Jumana Bauwens released a statement, saying the cuts are part of a previously announced plan to “reduce the size of mortgage servicing operations.” The bank notes the cuts come at a time when BofA (BAC) is achieving more success in reducing its portfolio of delinquent mortgage customers.

“Compared to peak levels in 2011, today we have fewer than half the numbers of customers who need the specialized programs and support of this team,” Bauwens said. “We will not sacrifice service to our customers in need of assistance.”

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DOJ slams BofA with $850M RMBS suit

DOJ slams BofA with $850M RMBS suit

The Department of Justice slapped Bank of America and numerous subsidiaries with an $850 million lawsuit Tuesday, alleging the firms lied to investors about the quality of mortgages backing residential mortgage-backed securities sold off to investors.

The DOJ suit, which was worked in tandem with the U.S. Attorney for the Western District of North Carolina, accuses BofA (BAC) and several of its affiliates of intentionally making false statements, failing to perform due diligence on loans and packing securitization deals with a “disproportionate amount of risky mortgages originated through third party mortgage brokers.”

Attorney General Holder says the suit stems from the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force RMBS Working Group. TheSecurities and Exchange Commission filed similar civil charges in a Charlotte, N.C., federal court.