Daily Archives: March 16, 2014

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Letter to Editor: Why give JPMorgan Chase money to spend elsewhere?

Letter to Editor: Why give JPMorgan Chase money to spend elsewhere?

I saw on the front page of March 8’s paper that JPMorgan Chase is being offered a grant for $1.5 million to create jobs. I find it odd that although it appears Delaware is giving the grant, JPMorgan Chase might in fact use this money to refurbish the old AstraZeneca corporate headquarters in Fairfax, Va.

I must be a cynic to question how updating a facility in Virginia creates jobs in Delaware. According to the state grant, it says it’s not site-specific, meaning the money doesn’t have to stay in Delaware. Does anyone find this odd since Delaware is giving money earmarked to create jobs in Delaware, is going to Virginia.?

Is anyone awake out there? Something smells rotten in Delaware.

Nancy Fleischmann

Magnolia

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Federal Home Loan Mortgage Corp : Fannie, Freddie bill leaves status of private shareholders to courts

Federal Home Loan Mortgage Corp : Fannie, Freddie bill leaves status of private shareholders to courts

A draft bill to wind down government-run mortgage financiers Fannie Mae (>> Federal National Mortgage Assctn Fnni Me) and Freddie Mac (>> Federal Home Loan Mortgage Corp), released by two leading senators on Sunday, would leave a decision on how to treat their private shareholders to the courts.

A draft bill to wind down government-run mortgage financiers Fannie Mae (>> Federal National Mortgage Assctn Fnni Me) and Freddie Mac (>> Federal Home Loan Mortgage Corp), released by two leading senators on Sunday, would leave a decision on how to treat their private shareholders to the courts.

The 442-page draft measure from the Democratic chairman of the Senate Banking Committee and the panel’s top Republican would keep in place current terms of the government’s bailout of the two companies that require them to sweep all their profits into the U.S. Treasury.

It is silent on whether or not the companies’ junior preferred and common shareholders should share in any proceeds when the companies are eventually liquidated.

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Nichols Kaster Attorneys At Law Files Overtime Case Against Flagstar Bank on Behalf of Mortgage Underwriters

Nichols Kaster Attorneys At Law Files Overtime Case Against Flagstar Bank on Behalf of Mortgage Underwriters

The complaint alleges that Flagstar Bank misclassified Plaintiff and other mortgage underwriters, and as a result, improperly denied them from overtime compensation.

Santa Ana, CA (PRWEB) March 14, 2014

On March 13, 2014 a former employee of Flagstar Bank (“Flagstar”) filed suit in California federal court seeking unpaid overtime wages under federal law and California state law. The Plaintiff alleges that Flagstar misclassified himself and other mortgage underwriters as exempt from the overtime requirements of the Fair Labor Standards Act and California state law and as a result, improperly denied them overtime compensation.

The case is entitled Jefferson et al v. Flagstar Bank and was filed in the United States District Court for the Central District of California. The case number is 8:14-cv-00382.

According to the complaint, Flagstar uniformly classifies its mortgage underwriters as “exempt” from overtime pay and did not pay them overtime, even though Plaintiff believes that he and other mortgage underwriters were entitled to receive overtime pay.

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Mortgage Investors to Send Letters on Ocwen ‘Servicing Abuses’

Mortgage Investors to Send Letters on Ocwen ‘Servicing Abuses’

Holders of residential mortgage-backed securities are planning to communicate with trustees and master servicers about Ocwen Financial Corp. (OCN)’s practices, according to the Association of Mortgage Investors.

The group “unites RMBS around criticism of #Ocwen servicing abuses,” the Washington-based trade organization said yesterday in a Twitter message. “Look for a forthcoming letter to Trustees, Mastr Servicers.”

New York’s top bank regulator last month asked Ocwen for information about potential conflicts of interest between the firm and affiliated vendors. DoubleLine Capital LP and Kathy Patrick, a partner at Gibbs & Bruns LLP who represents investors including BlackRock Inc. and Pacific Investment Management Co., have criticized a December settlement between the company and government as potentially harmful to mortgage-bond owners by offering credits to the servicer for reworking the loans backing their holdings.

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Toxic loans: “The officials were so confident”

Toxic loans: “The officials were so confident”

Translated in English:

Former bank executive, Emmanuel Fruchard is co-host of the siteemprunttoxique.info . He focused on products it deems most risky (those who bet on the currency ), calculating the real additional cost to the community of which he managed to obtain details of the contracts. A feat which today serves as an example to all activists pro-transparency and anti-toxic loans. Councillor PS (opposition) to Saint-Germain-en-Laye, near Paris , he tries to warn his fellow citizens about the risks taken by the union garbage in his city.

How you are you interested in toxic loans in your city?

Emmanuel Fruchard: When I was at Credit Lyonnais, I was Structurer swap[designer of a type of financial product designed to manage investment risk] . It is not the instrument that is bad, but the use which has been made.

In preparing the municipal 2008 with PS, it was distributed annual reports of unions and I have had waste. I saw that the union ( Sidru, Syndicat intercommunal for the destruction of MSW ) was treated swap formula to reduce the cost of its debt. It made ​​me jump , because I had not seen it in dynamic asset management, that is to say, speculation leveraged [a multiplier effect that magnifies gains or losses] .

It took months to get contracts. The mayor tried we walk , but we ended up having, full, in summer 2007. It was, in September, a mailing alerting the serious risk that was taken (there was one in three chance that the Sidru pays a higher rate at 30%) to fifteen mayors union by proposing future they explain : no has suggested that we go to see .

 

Why did they choose elected to contract a structured debt?

The cost of the incinerator established in the late 1990s was very high and it is oversized relative to the number of inhabitants. The accounts were still unbalanced so it was, according to Emmanuel Lamy [Mayor UMP since 1999], or play [agreeto a speculative bet on a financial product], or increase the tax on household waste. Several mayors were quite against the latter.

Then the “why contracts” is the “soft” information: a citizen can get contracts, but not the emails exchanged between business leaders and the community.

They were so confident that some contractual maturity dates falling stack municipal year [2008]. And to a certain generation, they did not see the franc Swissabove the dollar [until 2010, it was less one dollar for one Swiss franc, it now takes more than a dollar to get a Swiss franc].

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Settlements Reached in Multiple Force-Placed Insurance Lawsuits

Settlements Reached in Multiple Force-Placed Insurance Lawsuits

Miami, FL: Banks and mortgage lenders who thought their use of force-placed insurance on homeowners would be an easy way to increase profits might be thinking twice, following numerous settlements in force-placed insurance lawsuits. According to reports, settlements have been reached in lawsuits filed against Bank of America, HSBC Holdings Plc,Citigroup and Wells Fargo, concerning their use of force-placed insurance.

Settlements Reached in Multiple Force-Placed Insurance LawsuitsTerms of the settlements involving Bank of America and HSBC are confidential, while the Citigroup lawsuit was reportedly settled for $110 million. Reuters (2/6/14) reports that class members will receive 12.5 percent of their premium once their claim is submitted.

Plaintiffs in the Citigroup lawsuit alleged Citigroup and Midland Mortgage “unfairly, unjustly and unlawfully forced Plaintiff and other Putative Class members to purchase and maintain flood insurance in amounts greater than required by law, greater than required by their mortgage agreements, and greater than Defendants’ financial interest in their property,” according to court documents.

Furthermore, the lawsuit alleges, the defendants profited from force-placed insurance by arranging for “kickbacks, commissions, or other compensation for Defendants and/or their affiliates.”

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Citigroup Inc : Creditors seize ship tied to Mexican oil company probe

Citigroup Inc : Creditors seize ship tied to Mexican oil company probe

Creditors to Oceanografia, a Mexican oil services company at the center of an alleged fraud that forced Citigroup to cut its 2013 profit, have seized a ship that was used as collateral for debt issued by the company.

Norsk Tillitsmann, the Oslo-based trustee for some of Oceanografia’s bonds <OCNGR.UL>, is preparing to sell the ship, OSA Goliath, to recoup funds for lenders, according to a letter published on Saturday on the trustee’s website.

The ship was seized on Friday in Aruban waters on Norsk Tillitsmann’s request, the letter said.

A spokesman for Oceanografia, whose main business was providing services for Mexico’s state oil company Pemex<PEMX.UL>, did not immediately respond to a request for comment.