Daily Archives: September 4, 2013

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JPMorgan Agrees to $18.3 Million Mortgage Lawsuit Accord

JPMorgan Agrees to $18.3 Million Mortgage Lawsuit Accord

JPMorgan Chase & Co. (JPM) agreed to pay $18.3 million to settle claims that its Bear Stearns Cos. unit failed to disclose the actual interest rates on adjustable-rate mortgage documents.

U.S. District Judge S. James Otero in Los Angeles will consider whether to approve the agreement at a Oct. 7 hearing, according to a court filing.

The lawsuit was filed in 2007 by plaintiffs who refinanced their home loans with adjustable-rate mortgages. JPMorgan acquired Bear Stearns in June 2008. The loans were acquired by a Bear Stearns unit, EMC Mortgage, based in Lewisville, Texas, that specialized in buying and servicing troubled mortgages.

Phoenix Light Et Al v Jpmorgan Chase Co Et Al

Complaint | PHOENIX LIGHT, et al v JPMORGAN CHASE & CO, et al | NYSC – Fabricate or fraudulently alter mortgage assignment documentation, Title & Vast majority of loans underlying the offering were not properly or timely transferred to the trust…REMIC, PSA, SECURITIZATION FAILURE!

 

Royal Park Investments Sa Nv vs Deutsche Bank Ag

Complaint | ROYAL PARK INVESTMENTS SA/NV vs DEUTSCHE BANK AG et. el | NYSC – Fabricate or fraudulently alter mortgage assignment documentation, Title & Vast majority of loans underlying the offering were not properly or timely transferred to the trust…REMIC, PSA, SECURITIZATION FAILURE!

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Order lifted, 825 RI foreclosure cases to proceed

Order lifted, 825 RI foreclosure cases to proceed

PROVIDENCE, R.I. — A federal judge on Tuesday lifted a blanket order that had stopped hundreds of Rhode Island foreclosures from going forward and had sent the cases first to mediation.

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Libor-RMBS suits: A ticking time bomb

Libor-RMBS suits: A ticking time bomb

U.S. banks could find themselves facing a slew of new litigation if investment companies begin accusing banks en masse of conspiring to keep Libor benchmarked interest rates low from 2007 through 2010.

Investors nationwide could have a bone to pick with all of the Libor-participant banks accused of setting the Libor benchmark interest rate too low—a situation that lowers an investor’s ability to earn appropriate returns on residential and commercial-mortgage backed securities.

The risk of this type of litigation resurfaced this week.

A series of investment companies filed suit against Bank of America (BAC), Citi (C), JPMorgan Chase (JPM) and countless others involved in Libor, claiming banks conspired to keep the benchmarked Libor rate low, compressing returns for investors in RMBS and CMBS.

So what is Libor and could it really hit the banks hard considering the tens of billions in liability surrounding Libor participants based on some analyst estimations?

To understand the scandal, the market has to understand Libor. Libor is used as a benchmark rate for simple loans, derivatives and impacts an array of financial instruments from RMBS, CMBS, interest-rate swaps and short-term paper.

Principal Funds and other investment entities recently sued the mega banks and others over Libor in the U.S. District Court for the Southern District of Iowa Central Division.

Small lenders surpass larger banks

The little guy is pulling ahead, as smaller banks adjust faster to handling all of the regulations coming down the pipeline. Loans at small banks grew at a 4.7% annual rate at the end of the second quarter compared with a growth rate of less than 1% for big banks.

Per The Wall Street Journal:

As long as regulatory uncertainty remains, big banks will continue to be at a disadvantage, according to bank analysts and executives. “This could have a significant impact on lending from big banks in the year and years ahead,” said Scott Anderson, chief economist at San Francisco-based Bank of the West.

Source: WSJ