Monthly Archives: September 2013

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JPMorgan, Citigroup Lose Bid to Throw Out Securities Lawsuit

JPMorgan, Citigroup Lose Bid to Throw Out Securities Lawsuit

JPMorgan Chase & Co. and Citigroup Inc. were among the banks that lost a bid to throw out a Federal Deposit Insurance Corp. lawsuit over $388 million in securities sold to a failed lender.

U.S. District Judge Louis Stanton in Manhattan today denied a motion to dismiss the suit, which also targets UBS AG, Deutsche Bank AG and Wells Fargo & Co. Stanton rejected defense arguments that FDIC filed the suit too late and that the agency failed to make a sufficient claim that could allow it to recover.

In the suit, filed last year, FDIC alleged that the banks misrepresented the quality of the loans underlying 11 residential mortgage-backed securities that Colonial Bank purchased in 2007.

Despite bank notices, borrowers should stay in homes

While banks recollect homes from delinquent borrowers, a New York housing court judge said that if a homeowner receives a foreclosure notice from their bank, they shouldstay in the house, citing that they are still responsible for the upkeep of the home. The Buffalo News has the story:

Housing Court Judge Patrick M. Carney spoke to about 50 people who had gathered in Council chambers in City Hall for a public hearing about housing issues, where vacant and flipped properties were also addressed.

People should leave their house only if they get a court order, he said.

Many times, people who are facing bank foreclosure think they must leave because of carefully worded letters they receive from their mortgage lender, he said. But they don’t know they are still responsible for the upkeep of the home, even if the bank starts paying the taxes so it doesn’t face foreclosure from the city.

Source: Buffalo News
 
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How Banks Are Still Discriminating Against Minorities in the Foreclosure Crisis

How Banks Are Still Discriminating Against Minorities in the Foreclosure Crisis

he foreclosure crisis has had a second set of less visible victims: people who never lost their homes (nor are in danger of it) but who live near others who have. These are the neighbors left behind in communities where seemingly every third house has been abandoned. They’re the people who deal with adjacent lawns that never get mowed, with houses visible through their front windows that are decaying by the day.

They’re the ones left to worry about falling property values and absentee banks. And, fair housing groups allege, these people are disproportionately located in predominantly minority communities across the country.

We’ve written before about evidence of racial discrimination of a different kind in the mortgage crisis, a subplot suggesting that big banks intentionally targeted minority communities with bad loans before the bubble ever burst. Now, housing advocates have been documenting what they view as racial discrimination in the aftermath: Bank of America in particular, the National Fair Housing Alliance says, has been doing a much better job of maintaining and marketing foreclosed homes for sale in white neighborhoods than in minority ones.

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EEOC sues Bank of America over treatment for former employee

EEOC sues Bank of America over treatment for former employee

The Equal Employment Opportunity Commission filed suit on Wednesday against Bank of America for the way it allegedly treated a former deaf employee.

The complaint in U.S. District Court said the bank’s Las Vegas region had employed Melchora Lee from 1998 until 2010, first as a cashier and then as a cash services representative. Through 2003, she had a supervisor trained in sign language.

Afterward, the complaint said, her requests for a sign language interpreter were not fulfilled. She alleges she was terminated in 20102 due to her disability.

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JPMorgan audit director admits bank mistakes

JPMorgan audit director admits bank mistakes

The head of JPMorgan Chase’s audit committee acknowledged on Thursday that the bank had made mistakes and said it has tried to learn from them.

“We’ve got these things that we actually are guilty of and we’ve got to fix them,” said Laban Jackson, the head of the audit committee of JPMorgan’s board of directors.

“It’s embarrassing for the board,” he added. Jackson spoke at a conference at a downtown Chicago hotel on Thursday.

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Mistaken Identity Leads To Mistaken Foreclosure By JP Morgan Chase Of Mansfield Man’s Home

Mistaken Identity Leads To Mistaken Foreclosure By JP Morgan Chase Of Mansfield Man’s Home

MANSFIELD, Ohio – A Mansfield man is battling one of the biggest banks in the world over a big mistake that he says cost him his home.

John Watson is suing Chase Bank.

He says they mistakenly foreclosed upon his home, thinking that he was someone else. 

In Watson’s case, it was all about his name. 

“My name’s John Robert Watson,” he said. “His name is John Raymond Watson.”

Watson is talking about his son.

Everything was fine until September 2008, when he sent his daughter-in-law to Chase Bank with a mortgage check.

“She comes back and says that they wouldn’t take the check, because my house was in bankruptcy,” Watson said. 

He wasn’t. But his son was; the other John R. Watson who lived at the same Wayne Street address.

John says that the local bank executive thought he could fix what appeared to be a simple case of mistaken identity.

“He made a bunch of phone calls, and after about 20 minutes says, ‘I can’t get anywhere with them,’” Watson said. “He said, ‘I suggest you hire an attorney,’ And I told him I already had one, and when we got up to leave, he said, ‘It’s too bad you named your son after you.’”

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Fannie Mae Breaks Its Word

Fannie Mae Breaks Its Word

Antonina Juarez paid the rent on her Fair Haven apartment every month, even after her landlord was foreclosed on by Fannie Mae. Now Fannie Mae wants her and her kids to leave their home, violating the quasi-governmental lender’s own policy of not evicting tenants during foreclosure.

Juarez (pictured), who’s 33, is fighting the eviction with the help of attorney Amy Marx, of New Haven Legal Assistance. 

Marx has fought this battle before, and thought that she’d won.

In 2008, Marx helped win a landmark victory when Fannie Mae agreed to a new national policy ofhalting evictions of tenants in buildings it has foreclosed on. Fannie Mae created the policy after Marx and fellow legal aid attorney Amy Eppler-Epstein threatened a lawsuit.

“Years later, it feels like we’re back to square one,” Marx said.