Daily Archives: August 24, 2013

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O.J. Simpson home to foreclosure auction

O.J. Simpson home to foreclosure auction

O.J. Simpson didn’t fare as well in front of Miami-Dade Circuit Court Judge Gisela Cardonne Ely as he did before JudgeLance Ito, as the former judge sent his Kendall home to foreclosure auction.

The football legend, currently in a Nevada prison after a robbery and kidnapping conviction, lost an $892,283 foreclosure judgment to JPMorgan Chase BankWednesday. The judge ruled the $660,982 in principal on the mortgage hadn’t been paid since March 2010. Four years of taxes were owed as well.

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JPMorgan Worth 30% More If Broken Up, KBW Says

JPMorgan Worth 30% More If Broken Up, KBW Says

JPMorgan Chase & Co. (JPM), the biggest U.S. bank by assets, would be worth 30 percent more if broken into its four business segments, an unlikely scenario, an analyst at Stifel Financial Corp. (SF)’s KBW unit said.

JPMorgan’s businesses — traditional banking, investment banking, asset management and private equity — are separately worth $255.7 billion, KBW’s Christopher Mutascio said today in a note. That compares with the New York-based lender’s $197 billion market capitalization as of yesterday’s closing price.

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Wells Fargo Spinoff Suits Dismissed as Duplicative

Wells Fargo Spinoff Suits Dismissed as Duplicative

cked a settlement from an earlier case on “Pick-a-Payment” mortgage loans.
     Jennifer Murphy, Richard D’Alessio and Paul McDermed separately sued Wells Fargo Home Mortgage over alleged settlement breaches from the other case, In re: Wachovia Corp. “Pick-A-Payment” Mortgage Marketing and Sales Practices Litigation,assigned to U.S. District Judge Jeremy Fogel.
     That multidistrict litigation represented the consolidation of assorted “Pick-a-Payment” class actions filed in district courts around the country, including the first-filed action filed in northern California, Mandrigues v. World Savings, Inc., et al.
     Fogel approved a written settlement agreement (MDL-SA) in the consolidated actions in 2010.

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JPMorgan Reviews Dealings With Foreign Banks

JPMorgan Reviews Dealings With Foreign Banks

JPMorgan Chase & Co. (JPM) is reviewing its correspondent banking unit and not taking on new business from foreign lenders after regulators identified deficiencies in its anti-money-laundering procedures.

The bank said in a memo last week that its treasury services unit won’t take on new correspondent clients or new business from existing customers who use the bank to process transactions, according to Brian Marchiony, a spokesman. The halt allows JPMorgan to review its existing relationships, he said. The Wall Street Journal reported the memo earlier today.

“Serving financial institutions in correspondent banking has been, and will continue to be, a core strength of ours,” Marchiony said in an e-mailed statement. “It’s important for us to pause and assess our business, particularly in select markets, to ensure we are well-positioned to meet our responsibilities for the long-term.”

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BofA Takes Hard Look At Work-Life Balance After Intern’s Death

BofA Takes Hard Look At Work-Life Balance After Intern’s Death

Bank of America said Friday morning it would be studying how to improve the work-life balance of the institution’s junior staffers, a week after a 21-year old summer intern working for the bank’s investment banking unit unexpectedly died. Moritz Erhardt, an intern in London, had been a week shy of completing his term with the bank when he died on Aug. 15.

“We are going to be looking at our entire junior population,” John McIvor, a spokesman for the bank, said in a phone interview from London. “We are going to listen to our employees at all levels. This isn’t just about hours

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Colorado foreclosure billing mess may blow up into national issue

Colorado foreclosure billing mess may blow up into national issue

Colorado Attorney General John Suthers‘ investigation into law firms allegedly overbilling for foreclosure filings — or billing for filings they never made — likely will turn into a national story, according to a Cato Institute fellow and national bloggers who are following the case.

The Denver Post has published a series of articles on the local investigation this summer, citing court documents on Suthers’ and other investigations.

“National mortgage and banking bloggers have taken the view that these practices are not just in Colorado,” said Walter Olson, Cato Institute fellow. “Colorado just happens to be the first place where the attorney general has launched an investigation. Underneath it all is a pattern you can easily see being replicated in other states.”

Carolyn Tyler, spokeswoman for Suthers, wouldn’t comment on the case because the investigation is ongoing.

According to Paul Jackson, publisher and CEO at HousingWire, similar probes into foreclosure billing practices have begun on the East Coast, although subpoenas have not yet been issued.

Those investigations focus on how law firms billed for “allowable costs” in conjunction with foreclosures on loans insured or guaranteed by government-sponsored enterprises (GSEs) Fannie MaeFreddie Mac or the Federal Housing Administration, Jackson wrote in the HousingWire.com REwired blog on Aug. 14.

“It turns out that many of the major law firms responsible for managing foreclosures for the GSEs also have a controlling interest in the ancillary service firms that generate the variable fees that appear as ‘costs’ on the lawyer’s bill. Many law firms either outright own, or their partners have a significant interest in, the company that is posting and publishing notices; or they may own or have an interest in the company that manages process of service, as well,” Jackson said.

Because federal dollars are involved, the Obama administration or Congress may get involved, Olson said.

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Sandy victims choose to walk away from mortgages

Sandy victims choose to walk away from mortgages

Victims of Hurricane Sandy are making the tough decision to walk away from their homes instead of rebuilding. Ultimately, the cost to rebuild is too much for families to afford. Per USA Today:

“It’s very common,” Keyport bankruptcy attorney Warren Brumel said. “The combination of the FEMA benefits and flood insurance and homeowners’ insurance payments is just a fraction of the total cost of rebuilding the house. Clients are telling me, ‘I have $80,000 in checks but it’s going to cost $130,000 to rebuild.'”

Source: USA Today