Daily Archives: December 20, 2013

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Ruling clears Lynn homeowners to sue Bank of America in Housing Court

Ruling clears Lynn homeowners to sue Bank of America in Housing Court

A group of Lynn homeowners claiming big banks and mortgage servicers foreclosed their home loans improperly will be able to sue for damages and attorneys fees in Massachusetts Housing Court, a state Appeals Court panel has ruled.

The case, Bank of America vs. Ceferino S. Rosa, involves a collection of four Lynn foreclosure cases in which evicted homeowners argued they were wrongly denied mortgage modifications and were treated unfairly by lenders and mortgage servicers including BofA, BNY Mellon and Freddie Mac.

The defendants’ arguments fall under the state’s 93A statute covering unfair and deceptive business practices. The banks and Freddie Mac argued Housing Court was not the place to hash out a 93A case.

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CA Attorney General Kamala D. Harris Announces $2.1 Billion Mortgage Settlement with Ocwen

CA Attorney General Kamala D. Harris Announces $2.1 Billion Mortgage Settlement with Ocwen

California homeowners eligible to receive an estimated $268 million in first lien principal reductions and nearly $23 million in cash payments
Thursday, December 19, 2013
Contact: (415) 703-5837

SAN FRANCISCO – Attorney General Kamala D. Harris today announced a $2.1 billion multistate and federal settlement with Ocwen Financial Corporation and Ocwen Loan Servicing, LLC (Ocwen) over alleged mortgage servicing misconduct.

The settlement makes California homeowners eligible to receive up to $268 million in first lien principal reductions and nearly $23 million in cash payments to borrowers.
 
“This settlement will help homeowners who’ve been misled while trying to modify their Ocwen mortgages,” said Attorney General Harris, “But our work isn’t done. Too many California families are still ‎coping with uncooperative banks and mortgage service providers. My office will continue to fight on their behalf.”

The settlement resolves allegations that Ocwen engaged in robo-signing, “dual tracking” of borrowers seeking loan modifications, and other misconduct in the course of its mortgage servicing activities. The settlement also resolves similar allegations against Homeward Residential, Inc. and Litton Loan Servicing, LP, which Ocwen acquired.

Ocwen holds nearly 390,000 loans in California, of which 12% are underwater. Ocwen holds approximately 6% of all California underwater loans.

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Miami sues big banks over discriminatory mortgage lending

Miami sues big banks over discriminatory mortgage lending

Dec 19 (Reuters) – Miami has sued Bank of America , Wells Fargo and Citibank in U.S. federal court in Florida, for discriminatory mortgage lending practices against minority residents that resulted in a rash of foreclosures, the city said on Thursday.

The lawsuits, filed on Dec. 13, accuse the banks of engaging in a “continuous pattern and practice of mortgage discrimination in Miami” since at least 2004 in violation of the U.S. Fair Housing Act of 1968, according to a court filing.

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CFPB OCWEN CONSENT ORDER: VIOLATED, AMONG OTHER LAWS, THE UNFAIR AND DECEPTIVE ACTS AND PRACTICES LAWS AND THE CONSUMER FINANCIAL PROTECTION ACT OF 2010

CFPB OCWEN CONSENT ORDER: VIOLATED, AMONG OTHER LAWS, THE UNFAIR AND DECEPTIVE ACTS AND PRACTICES LAWS AND THE CONSUMER FINANCIAL PROTECTION ACT OF 2010

WHEREAS, the parties have agreed to resolve their claims without the need for litigation; 8 WHEREAS, Defendant has consented to entry of this Consent Judgment without trial or adjudication of any issue of fact or law and to waive any appeal if the Consent Judgment is entered as submitted by the parties; WHEREAS, Defendant, by entering into this Consent Judgment, does not admit the allegations of the Complaint other than those facts deemed necessary to the jurisdiction of this Court; WHEREAS, the intention of the Consumer Financial Protection Bureau and the States in effecting this settlement is to remediate harms allegedly resulting from the alleged unlawful conduct of the Defendant; WHEREAS, the State Mortgage Regulators are entering into a Settlement Agreement and Consent Order with Ocwen to resolve the findings identified in the course of multi-state and concurrent independent examinations of Ocwen, as well as examinations of Litton Loan Servicing, LP and Homeward Residential, Inc., which were subsequently acquired by Ocwen. AND WHEREAS, Defendant has agreed to waive service of the complaint and summons and hereby acknowledges the same; NOW THEREFORE, without trial or adjudication of issue of fact or law, without this Consent Judgment constituting evidence against Defendant, and upon consent of Defendant, the Court finds that there is good and sufficient cause to enter this Consent Judgment, and that it is therefore ORDERED, ADJUDGED, AND DECREED:

 

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Taylor Bean Said to Reach Agreement in U.S. False Claims Lawsuit

Taylor Bean Said to Reach Agreement in U.S. False Claims Lawsuit

Taylor, Bean & Whitaker Mortgage Corp.’s bankruptcy trustee is poised to settle a U.S. Justice Department lawsuit claiming the firm submitted fraudulent mortgages to the Federal Housing Administration, two people with knowledge of the pending agreement said.

Taylor Bean and a mortgage lender it bought in 2009, Home America Mortgage Inc., have agreed to settle the false-claims lawsuit for about $320 million, one of the people said. The government will only receive a portion of those funds from the the defunct company, said the people, who asked not to be named because the agreement was still being circulated among the parties.

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FHFA Still Needs More Examiners for Fannie, Freddie: IG Report

FHFA Still Needs More Examiners for Fannie, Freddie: IG Report

The Federal Housing Finance Agency has fallen behind in its examinations of Fannie Mae and Freddie Mac because it simply does not have examiners to properly monitor the government-sponsored enterprises, according to new report from the agency’s watchdog.

In a report released early Thursday, the FHFA’s Office of Inspector General recommended that the FHFA hire more examiners in order to avoid further delays. It noted that the agency is so short-staffed that one team had to push back about 40% of its exams scheduled for fourth quarter into 2014.

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CFPB launches campaign to empower consumers

CFPB launches campaign to empower consumers

The Consumer Financial Protection Bureau is drilling down and taking its fight against mortgage servicing and lending issues directly to housing counselors and consumers.

The bureau just launched a campaign to educate the public about some of the new lending and servicing protections offered to them under the assortment of regulations taking effect on Jan. 10.

For the past two years, the bureau has been educating the mortgage industry on what to expect when the rules are released, but today, the bureau is shifting its strategy and trying to inform borrowers who may have complaints of their own. The new data also caters to housing counselors who may be on the frontlines, looking for violations.