Daily Archives: September 17, 2013


Problem Solver: Mortgage switch leads to confusion, foreclosure order

Problem Solver: Mortgage switch leads to confusion, foreclosure order

After GMAC sold Lisa Encarnacion’s mortgage to Green Tree Servicing, things went wrong.

In the almost two decades GMAC serviced Lisa Encarnacion’s mortgage, the Hoffman Estates resident never had a problem.

Then her mortgage was sold to Green Tree Servicing in February. Things quickly began to unravel.

Encarnacion said she sent Green Tree proof of her homeowners insurance and was told not to worry. Green Tree would put her insurance payments in escrow then directly pay her policy with American Family Insurance.

In April, she received a letter from American Family saying Green Tree hadn’t paid. Encarnacion said she called Green Tree again and was told she had been given the wrong information — she should pay American Family directly for her homeowners insurance.

Once again, she was asked for proof that her condominium was insured. Once again, her insurance agent faxed it to Green Tree, she said.

In early July, Green Tree sent her a letter saying her mortgage was in default. The letter said Green Tree was going to initiate foreclosure procedures. Immediately, Encarnacion called Green Tree, she said.

She was told that her last three mortgage payments were considered partial payments because Green Tree did not have proof that her townhouse was insured. Without proof of insurance, Green Tree began charging an additional $500 per month for a “force-placed policy,” an insurance policy set up through Green Tree to make sure the property was protected.

In the months that followed, Encarnacion spoke repeatedly to Green Tree, she said. Each time she was asked to provide proof of insurance, and each time she or her insurance agent faxed over the requested documents, she said.

To avoid foreclosure, she paid Green Tree an additional $1,000 for insurance. Encarnacion said she was told the $1,000 would be refunded once she provided the proper proof of coverage.

Encarnacion said she faxed Green Tree proof that her condo was covered at least eight times.

By mid-August, her account remained in disarray, so she emailed What’s Your Problem?

She said she had no idea if Green Tree had the document it needed, or whether she would receive her $1,000 back.

“This is just insane,” she said. “From a financial standpoint, you want to know what your mortgage payment is going to be.”

The Problem Solver contacted Whitney Finch, vice president of investor relations for Walter Investment Management Corp., which owns Green Tree Servicing.


Orlando couple wins $3M award from Citigroup, one of largest in recent years

Orlando couple wins $3M award from Citigroup, one of largest in recent years

A federal regulatory panel has awarded more than $3 million to an Orlando couple in a case that accused banking giant Citigroup Global Markets Inc. and a former local broker of negligence in getting the couple to invest in ill-fated land deals.

The panel found the Citigroup unit liable for its broker’s actions and said the company must pay $3.1 million in compensatory and punitive damages and other costs, according documents released this week by the Financial Industry Regulatory Authority.


CFTC not part of settlement – pursues own probe of JPM

CFTC not part of settlement – pursues own probe of JPM

  • Not a part of JPMorgan’s (JPM -0.3%) reportedly nearing settlement with regulators on both sides of the pond over the London Whale incident, the CFTC is pursuing its own probe, reports the WSJ. Feeling its oats thanks to new powers granted to it by Dodd-Frank, the CFTC is zeroing in on aggressive derivatives bets made in early 2012 as traders tried to contend with growing losses in the bank’s credit portfolio.

JPMorgan Chase Is Said to Admit Fault in Settlement of Trade Loss

JPMorgan Chase Is Said to Admit Fault in Settlement of Trade Loss

JPMorgan Chase has agreed to pay about $800 million to a host of government agencies in Washington and London — and make a groundbreaking admission of wrongdoing — to settle allegations stemming from a multibillion-dollar trading loss, people briefed on the matter said.


JPMorgan Is Still Under Criminal Investigation For ‘Whale’ Scandal

JPMorgan Is Still Under Criminal Investigation For ‘Whale’ Scandal

NEW YORK, Sept 17 (Reuters) – U.S. prosecutors are still looking into events surrounding JPMorgan Chase & Co’s “London Whale” trading scandal for potential wrongdoing by the bank itself, according to several people familiar with the probe, in a sign that an expected $700 million civil settlement with regulators on the issue may not end its legal woes.

The criminal probe being conducted by the Federal Bureau of Investigation and federal prosecutors in New York, which has already resulted in fraud charges against two former JPMorgan employees, is looking at the role others at the largest U.S. bank played in its $6.2 billion trading loss, the sources said.

Mr. Potter and the State of Washington Legislate No Need for Original Note – Just Take the Land; Bye Bye

Deadly Clear

By Sidney Sullivan

washington flagThe history of Washington includes thousands of years of Native American history before Europeans and Americans arrived and began to establish territorial claims. The region was part of Oregon Territory from 1848 to 1853, after which it was separated from Oregon and established as Washington Territory. In 1889, Washington became the 42nd state of the United States – and was recently screwed by its own legislature. [Source: Wikipedia]

On Tuesday, March 19, 2013 the Washington SENATE FINANCIAL INSTITUTIONS, HOUSING & INSURANCE Committee met to discuss SB 1435, a law that excludes the need for the original promissory note – as a convenience to lenders, title insurance companies and the Washington Bankers Association – Mr. Potter Eliason.   

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BECKER vs WELLS FARGO | CA – B&G Wins Sanctions Against Wells Fargo For Failing to Turn Over Documents in Discovery

B&G wins sanctions again against a defendant bank, this time Wells Fargo was ordered to respond to discovery and was hit with $1,500 in sanctions for stonewalling discovery.