Daily Archives: December 13, 2013

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US Can Add Wells Fargo Exec To Insurance Fraud Suit

US Can Add Wells Fargo Exec To Insurance Fraud Suit

Law360, Los Angeles (December 12, 2013, 9:34 PM ET) — A New York federal judge on Thursday allowed the federal government to add a Wells Fargo & Co. executive as a defendant in its lawsuit alleging the bank had defrauded a federal mortgage insurance program out of hundreds of millions of dollars by knowingly submitting mortgages with a high risk of default.

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VERMONT ATTORNEY GENERAL SUES BANK OF AMERICA FOR VIOLATING STATE FORECLOSURE MEDIATION LAW

VERMONT ATTORNEY GENERAL SUES BANK OF AMERICA FOR VIOLATING STATE FORECLOSURE MEDIATION LAW

The Office of Vermont Attorney General William H. Sorrell has filed suit against Bank of America for violating Vermont’s foreclosure mediation statute and Consumer Protection Act in foreclosure actions brought by the Bank against local homeowners. According to the complaint filed in Washington Superior Court in Montpelier, Bank of America, based in Charlotte, North Carolina, (a) failed or refused to comply with mediation settlements in Vermont state court foreclosure actions to which it previously agreed; (b) billed foreclosure defendants (the homeowners) for more money than their mediation settlements provided; and (c) sent mailings to homeowners containing misrepresentations, including misrepresentations about the amount of money due the Bank and the status of the foreclosure action.

 

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Fannie Mae Announces Eviction Moratorium for the Holidays

Fannie Mae Announces Eviction Moratorium for the Holidays

Keosha Burns

202-752-7840

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that it will issue an eviction moratorium for the holidays, as it has done in previous years. The company will suspend evictions of foreclosed single family and 2-4 unit properties from December 18, 2013 through and including January 3, 2014.  For this period, legal and administrative proceedings for evictions may continue, but families living in foreclosed properties will be allowed to remain in the home.

“The holiday season is meant for quality time with family and we want to relieve anyone of the anxiety of leaving their home during this season,” said Terry Edwards, Chief Operating Officer for Fannie Mae. “We encourage any homeowner who is having difficulty making their mortgage payment to reach out for help right away. Fannie Mae will continue to help borrowers avoid foreclosure whenever possible.”

This year, Fannie Mae Made it easier for a delinquent borrower to stay in their home when we introduced the Streamlined Modification which is available once someone experiences a hardship that causes them to be 90 days late with their mortgage payment.

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JPMorgan’s Reported Madoff Deal Proves Some Banks Too Big To Jail

JPMorgan’s Reported Madoff Deal Proves Some Banks Too Big To Jail

JPMorgan Chase is reportedly about to cut a sweet deal to dodge criminal charges over its role in the Bernie Madoff Ponzi scheme. It’s just the latest evidence that, despite their tough talk, U.S. prosecutors still think some banks are too big to jail.

JPMorgan is close to paying about $2 billion to settle claims that, as Madoff’s main bank for many years, it ignored blatant signs that Madoff was up to no good, the New York Times reports. As part of the deal, JPMorgan will also enter what’s known as a deferred prosecution agreement, where everybody will agree that the biggest U.S. bank broke criminal laws and also that prosecutors don’t plan to do anything about it, as long as JPMorgan keeps its nose clean.

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B of A’s Merrill to Pay $131 Million Over Norma CDO Marketing

B of A’s Merrill to Pay $131 Million Over Norma CDO Marketing

Bank of America Corp.’s Merrill Lynch agreed to pay about $131 million to settle U.S. regulatory claims it failed to tell investors that hedge fund Magnetar Capital LLC had a role in selecting assets for two 2006 mortgage-backed securities.

Magnetar, which held both equity and short positions in the collateralized debt obligations known as Octans I CDO Ltd. and Norma CDO I Ltd., exercised significant influence over the selection of collateral for the investments, the Securities and Exchange Commission said today in a statement.

The SEC also sanctioned two managing partners of investment adviser NIR Capital Management LLC, which handled the collateral selection for Norma. The executives agreed to pay collectively more than $472,000 and were suspended from working in the securities industry, the SEC said in a separate statement.

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Bankruptcy court confirms ResCap’s Ch. 11 bankruptcy exit plan

Bankruptcy court confirms ResCap’s Ch. 11 bankruptcy exit plan

Residential Capital, the former lending arm of Ally Financial that went through a bankruptcy reorganization, received the approval of a U.S. Bankruptcy Court to finalize its reorganization plan, allowing the firm to full exit the bankruptcy process.

ResCap’s lawyers at Morrison & Foerster announced that Judge Martin Glenn with the U.S. Bankruptcy Court for the Southern District of New York approved the plan this week.

The finalized plan includes a global settlement that resolves $100 billion in claims. It takes effect on Dec. 2013.