Daily Archives: April 14, 2014


United States: Repurchase Suits To Proceed Against DB Structured Products

United States: Repurchase Suits To Proceed Against DB Structured Products

On March 20, Judge Alison J. Nathan of the United States District Court for the Southern District of New York granted in part and denied in part DB Structured Products, Inc.’s, (DBSP) motions to dismiss four lawsuits brought by HSBC Bank as trustee of four different residential mortgage securitization trusts.  The court dismissed the trustee’s claims for a declaration that DBSP is required to reimburse the trustee for expenses incurred in enforcing its remedies under the relevant contracts, including costs and attorney’s fees, on the basis that the trustee could seek such reimbursement without the need for declaratory relief.  The court denied DBSP’s motion to dismiss the trustee’s breach of contract claims for failure to comply with the contractual requirements for a demand to repurchase allegedly breaching loans, holding that DBSP’s discovery of breaches of representations and warranties was adequately pleaded and provided a sufficient basis for the claims to proceed without evaluating the sufficiency of such demand.  The court also allowed claims for damages to proceed.  Order.


Veterinarian in First Year of Law School Files Federal Suit against Bank of America, pro se, Alleging Mortgage Fraud

Veterinarian in First Year of Law School Files Federal Suit against Bank of America, pro se, Alleging Mortgage Fraud

On October 25, 2013, veterinarian Jennifer Embury filed federal suit against Bank of America in an effort to prevent losing her home and two businesses. The foreclosure sale for her home is set for May 6, 2014.

A federal law suit was filed against Bank of America in the United States District Court for the Northern District of Florida, Gainesville Division by veterinarian Jennifer Embury, on October 25, 2013. According to these court documents, Dr. Embury purchased her five acre farm just outside Gainesville in Newberry, Florida just before the economic collapse of 2009. She had recently received a USDA agricultural grant to start a hydroponic nursery operation and also started her mobile veterinary practice, Indigo Farms Veterinary Services. Soon after, the economy was in ruins. Veterinarians were hit especially hard. For the first time in veterinary history, veterinarians lost their jobs and closed their practices. Because so many people lost their jobs due to the failing economy, seeking veterinary attention for their animals became a low priority, which severely impacted the veterinary industry. (Economic Downturn Hits Veterinary Practices, March 11, 2009, VIN News Serviceshttp://news.vin.com/VINNews.aspx?articleId=12438)

According to court records filed in federal case 1:13-CV-00211-MW, Dr. Embury had obtained her mortgage from Taylor, Bean and Whitaker in Ocala. FL when she purchased the property in March of 2009. Five months later, on August 14, 2009, following an FBI raid and suspension by the Federal Housing Administration from issuing FHA mortgage loans, Taylor, Bean and Whitaker ceased its business operationshttp://www.bloomberg.com/news/2011-06-30/fannie-mae-silence-on-taylor-bean-mortgages-opened-way-to-3-billion-fraud.html According to court documents, in 2010, she began receiving notices from Bank of America that they now held the mortgage and she was told to send the mortgage payments to them. Also during this time, she began to fall behind in her mortgage payments as a consequence of the dire economy.

Court documents from case 1:13-CV-00211-MWhttps://www.pacermonitor.com/public/case/1919828/EMBURY_v_BANK_OF_AMERICA revealed that Bank of America sent Dr. Embury notices for loan modifications from 2010 to 2013. Dr. Embury complied by sending in the requested documentation and paperwork, only to be told they never received it, couldn’t access it in the computer system, couldn’t find it, or no one was able to speak with her, and they would start the process all over again. Court documents also reflect an assignment of her mortgage from Taylor, Bean and Whitaker Mortgage Corp. was never issued to Bank of America until nearly three years later on June 5, 2012 despite the fact Taylor Bean and Whitaker had ceased operations in August of 2009 http://isol.alachuaclerk.org/RealEstate/SearchResults.aspx.


New York requires licensing for title agents

New York requires licensing for title agents

Title insurance agents in New York will soon be required to register with the state, meet qualification standards and undergo regular training as part of the state’s new licensing process.

The licensing requirement was included as part of the New York state budget passed on April 1. New York was previously one of three states in the country that did not require its title insurance agents to be licensed.

The budget gives the state’s Department of Financial Services the authority to license the state’s title agents. The DFS will also have the authority to monitor abuse by agents and to revoke licenses accordingly.

The department already licenses the state’s other insurance agents and brokers.

The law will go into effect on September 29, which is 180 days after the law was signed. Title agents will be required to renew their license every two years, and complete 15 hours of continuing education during their two-year licensing period.

The new regulations were met with approval by the New York State Land Title Association, which represents a statewide network of 10 insurance corporations and nearly 300 small businesses, employing more than 10,000 people in New York.


ResCap, GMAC Agree To Pay $2M To End Wage Class Action

ResCap, GMAC Agree To Pay $2M To End Wage Class Action

Law360, New York (April 14, 2014, 4:24 PM ET) — GMAC Mortgage LLC and bankrupt Residential Capital LLC have agreed to pay $2 million to settle a wage-and-hour class action alleging they stiffed workers on proper meal and rest breaks in violation of the Fair Labor Standards Act, according to documents filed in Washington federal court.


Citigroup : Mexico bank regulator, Citigroup report second fraud at Banamex

Citigroup : Mexico bank regulator, Citigroup report second fraud at Banamex

Citigroup reported quarterly profits this morning. However, more problems for Citigroup.

Citigroup and Mexico’s bank regulator on Monday said they uncovered a second fraud at Citi’s local unit Banamex, as part of a wider investigation following the discovery in February of fraudulent loans to oil services company Oceanografia.

Mexico’s National Bank and Securities Commission (CNBV) said the investigation found another company with under $30 million in fraudulent loans.

Citigroup in February said it found $400 million in bad loans at Banamex, Mexico’s No.2 bank by assets, made to Oceanografia and backed by apparently fraudulent invoices to state-owned oil company Pemex.

Wells Fargo Faces Class Action Over Foreclosures, Late Fees

Law360, Los Angeles (April 11, 2014, 10:35 PM ET) — Wells Fargo Bank NA violated California consumer laws by billing late fees to, or foreclosing on, state homeowners who had loan modification applications pending with the bank, according to a putative class action removed to California federal court Thursday.

The suit is among the latest based on the California Homeowner Bill of Rights, enacted Jan. 1, 2013. The law forbids banks from pursuing foreclosures while simultaneously processing loan modifications, a practice known as “dual tracking,” and from charging late fees during the process.



Goldman dodges a shareholder battle that dogs rivals

Goldman dodges a shareholder battle that dogs rivals

When Goldman Sachs Group Inc filed its shareholder proxy earlier this month, it was free of a proposal that has become increasingly popular among corporate governance activists: a demand for more disclosure about lobbying.

Goldman’s big Wall Street rivals can’t say the same. JPMorgan Chase & Co, Bank of America Corp, Citigroup Inc and Morgan Stanley all face lobbying-disclosure proposals this year. Some activist shareholders want the banks to be more transparent about their lobbying objectives, disclose more about the trade groups they belong to and say how much money they spend to influence policy.

Goldman persuaded the Needmor Fund – which had sponsored a lobbying-disclosure proposal on the investment bank’s proxy in 2013 – not to try again this year. Goldman’s lead director, James Schiro, went on a tour to hear the views of groups of shareholders after taking the role last year and sought to work out compromises, people who attended the meetings told Reuters.

“We don’t want to engage after the fact, we want to be able to deal with the issues by listening and engaging ahead of time,” said John F.W. Rogers, chief of staff and secretary to Goldman’s board of directors. “We believe this approach has been very productive.”


EU to approve bank rules to allow failing banks to be wound down without public money before May election slows legislative machine

EU to approve bank rules to allow failing banks to be wound down without public money before May election slows legislative machine

The European Union will sign off on a slew of major reforms this week to allow failing banks to be wound down without public money, clearing its desk before elections in May that may lead to a slower pace of legislation.

This week is the final plenary session of the European Parliament before it breaks up ahead of the vote in May.

The welter of rules the bloc has approved since the worst financial crisis in a generation began unfolding from a corner of the U.S. housing market in 2007 is fundamentally reshaping the banking and securities industry.

The rule changes also strengthen the bloc’s grip on capital markets at the expense of national governments to an extent few federalists would have dared to dream of, as policymakers want to avoid more taxpayer bailouts of banks and euro zone countries.


Wall Street Journal: Citigroup cuts 200-300 jobs

Wall Street Journal: Citigroup cuts 200-300 jobs

Including former Citi CEO’s Charles Prince’s son too.. 


US bank Citigroup (NYSE: C – news) has cut between 200 and 300 additional jobs, most in the global markets business, The Wall Street Journal reports.

Some of the employees were fired, while others left voluntarily. Among them was Steve Prince, the younger brother of former chief executive Charles Prince, according to the newspaper.

Prince’s LinkedIn profile says he is a senior vice president for marketing and advertising.

The cuts account for about two percent of the global markets business, it added, citing a person familiar with the matter.