Daily Archives: March 7, 2014

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Woman’s ‘mummified’ remains found frozen in car at foreclosed Detroit-area home

Woman’s ‘mummified’ remains found frozen in car at foreclosed Detroit-area home

Authorities believed the woman, a German immigrant in her 40s, may have been dead for several years. One neighbor said it had been at least six years since anyone saw the woman.

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The foreclosure nightmare isn’t over yet

The foreclosure nightmare isn’t over yet

RIDGELY, Md. — The house is full of everything the Moody family wants to leave behind when their foreclosure nightmare—five years and counting—finally comes to a close.

There are the piles of clothes that Paul and Kim’s four daughters have outgrown since their mortgage troubles began in 2009. The door where the sale notice was posted, forcing them to rush to court to stop the auction. The exposed insulation in the room they stopped remodeling when they realized how long they would be in financial limbo.

“I need to move on,” says Paul Moody, 46, a land surveyor who lives in a rural stretch of Maryland’s Eastern Shore. “It’s destroyed our credit. It’s destroyed our quality of life.”

From Wall Street to Washington, the revival of the U.S. housing market has produced a huge sigh of relief as home prices and construction have rebounded. But for homeowners like the Moodys, the great foreclosure crisis has never ended.

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Suing Wells Fargo

Suing Wells Fargo

SAN FRANCISCO – Wells Fargo Bank stiffed employees for overtime and violated other labor laws, a class action claims in Federal Court.  

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Ex-Dewey Executives Charged in Fraud That Destroyed Firm

Ex-Dewey Executives Charged in Fraud That Destroyed Firm

Three former executives at Dewey & LeBoeuf LLP, once the No. 3 legal adviser to banks handling merger deals, were charged with a “blatant” $200 million fraud that spurred the largest law firm bankruptcy in history.

The three, including the chairman, executive director and chief financial officer, were accused of using accounting gimmicks similar to those that sent top executives at WorldCom Inc. and Tyco International Ltd. to prison a decade ago. Authorities cited e-mails in which the men referred to “fake income,” “cooking the books” and “accounting tricks.”

“Fraud is not an acceptable accounting practice,” ManhattanDistrict Attorney Cyrus R. Vance Jr. said today in announcing the charges. “The defendants are accused of concocting and overseeing a massive effort to cook the books” that “contributed to the collapse of a prestigious international law firm.”

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HERRICK ET AL V. JPMORGAN CHASE BANK, N.A. ET AL | CHASE SETTLEMENT. AUTOMATIC OPT-IN | CAUSE OF ACTION: DIVERSITY-BREACH OF CONTRACT FORCED PLACE INSURANCE

HERRICK ET AL V. JPMORGAN CHASE BANK, N.A. ET AL | CHASE SETTLEMENT. AUTOMATIC OPT-IN | CAUSE OF ACTION: DIVERSITY-BREACH OF CONTRACT FORCED PLACE INSURANCE

Background Plaintiff has alleged, among other things, that when a borrower was required to have hazard property insurance pursuant to a residential mortgage or home equity loan or line of credit, and the borrower failed to provide evidence of acceptable coverage, Defendants would place hazard insurance in a manner whereby JPMorgan Chase Bank, N.A. and Chase Insurance Agency, Inc. (collectively, “Chase”) allegedly received unauthorized benefits from the Defendants issuing the hazard lender-placed insurance (“LPI”) policies. Plaintiff also alleges that the way in which LPI policies were obtained and placed caused the rates and the amount of coverage to be excessive

 

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Wells Fargo settles forced placement lawsuit for undisclosed amount

Wells Fargo settles forced placement lawsuit for undisclosed amount

Wells Fargo (WFC) and two insurance companies agreed to repay homeowners in cash up to 11% of the premiums paid before March 24, 2012, in a settlement reached Thursday.

The class-action lawsuit filed in a Florida federal court arises from Wells Fargo “force placing” homeowners with two insurance companies – Assurant Inc. and QBE Insurance Group – when those homeowners failed to maintain property insurance.

Detailed terms of the amount of the settlement were not disclosed, though the agreement did say Wells Fargo and companies would be providing “significant monetary relief.”

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California Congressman goes on REO-to-rental warpath

California Congressman goes on REO-to-rental warpath

Longtime critic of REO-to-rental U.S. Rep. Mark Takano, D-Calif., is on the warpath Thursday, firing off letters to four federal entities asking for a detailed investigation into the growth of REO operations and REO-to-rental as an investment — and what they are doing to effectively regulate the emerging asset class.

Takano sent letters Thursday morning to the Consumer Financial Protection Bureauthe U.S. Department of Housing and Urban Development, the U.S. Securities and Exchange Commission, and Treasury Office of Financial Research.

Takano is concerned that rental prices are going up, and a surplus of investors in rentals — along with new rental-backed securities deals — could have the effect of artificially raising rental prices, making housing even more costly in parts of California and elsewhere.

Takano cites a Federal Reserve report, which claims if unchecked, investor activity in local housing markets may lower the quality of neighborhoods, while pushing up prices.