Daily Archives: April 15, 2014

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German Agency Drops Out Of Wells Fargo CDO Suit

German Agency Drops Out Of Wells Fargo CDO Suit

Law360, Chicago (April 15, 2014, 3:37 PM ET) — A German public agency responsible for winding up the assets of dissolved bank WestLB AG has dropped out of a suit alleging that Wells Fargo Bank NA’s mismanagement of a WestLB collateralized debt obligations vehicle led to more than $160 million in losses, according to documents filed Tuesday in New York federal court.

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Class action: Wells Fargo to pay $625k for force-placed flood insurance

Class action: Wells Fargo to pay $625k for force-placed flood insurance

SAN FRANCISCO – Wells Fargo will pay $625,000 under a settlement approved by a federal judge in the class action regarding force-placed flood insurance on home mortgages

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Ginnie Mae Nixes Bank of America Mortgage Servicing Transfer Because the Bank is Missing Documents

Ginnie Mae Nixes Bank of America Mortgage Servicing Transfer Because the Bank is Missing Documents

Ginnie Mae has halted the transfer of mortgage servicing rights from Bank of America (BAC) to a nonbank servicer because the bank is missing documents such as recorded mortgages and title policies on the underlying home loans.

Ted Tozer, the president of Ginnie Mae, says he has held up the transfer of servicing rights by B of A “for an extended period” because the bank is not complying with agency’s guidelines that require all mortgage documents be delivered to custodians in a timely manner.

“Issues are coming up now because documents are missing,” Tozer said Tuesday. “It’s a new phenomenon with the major banks getting out of the servicing business. We don’t want to transfer the risk to a new servicer.”

It is unclear how widespread the problem of missing documents is in the transfers of mortgage servicing, Tozer says, and he does not want to single out B of A.

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Missed Mortgage Payments Are Back on the Rise

Missed Mortgage Payments Are Back on the Rise

For several quarters, lenders have been reporting low and falling delinquency rates for credit card, mortgage and auto loan borrowers, and that positive trend has opened up credit products to consumers with lower credit scores. That may be starting to shift. A greater share of mortgages were 30 to 59 days past due in the fourth quarter of 2013 than at the same time in 2012, and bank risk professionals expect credit card and auto loan delinquencies to follow suit.

A closed mouth gathers no foot: Dimon has had it with other CEOs being so sensitive

JP Morgan CEO Jamie Dimon has a message to all those CEOs out there who say “uncertainty” is holding them back from investing in their businesses…

Get over it.

In his annual shareholder letter, Dimon devotes a little time to explaining something he sees as a phenomena of our post financial crisis world — the too-scared-CEO. You see them everywhere. Even billionaire Sam Zell has said he needs an ‘all clear’ to get back to business since the world is so scary.

Well Jamie Dimon is here to say that big boys don’t need that kind of hand holding.

From his letter:

“It seems that just about everyone has become a risk expert and sees risk behind every rock. They don’t want to miss it – like they did in 2008. They want to be able to say, “I told you so.”And, therefore, they identify everything as risky.”


Read more: http://www.businessinsider.com/jamie-dimon-on-uncertainty-2014-4#ixzz2yw31o2W9

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Three ex-ICAP staff in court to face fraud allegations over Libor

Three ex-ICAP staff in court to face fraud allegations over Libor

A TRIO of former workers at interdealer broker ICAP are due in court today over claims they were involved in efforts to manipulate key interest rate benchmark Libor.

Daniel Martin Wilkinson, Darrell Paul Read and Colin John Goodman face allegations of conspiracy to defraud. They are scheduled to appear at Westminster Magistrates’ Court at 10am.

The Serious Fraud Office (SFO) has now brought charges against nine people accused of involvement in alleged efforts to manipulate the benchmark.

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In California, a reversal of foreclosure fortunes

In California, a reversal of foreclosure fortunes

A homeowner bill of rights first and foremost is meant to protect homeowners against their foreclosing lenders. California, which adopted such a measure nearly two years ago, is seen as a leader in the movement.

But now that HBR is in place, the reality appears to diverge away from its beginning motivation, offering lenders a way to prove their foreclosures are on solid footing.

Back in May 2013, HousingWire started a three partseries by Robert Jackson, president of the Irvine, Calif.-based Law Offices of Robert Jackson and Associateswhere he provided an in-depth look into what the HBR is and the potential implications.     

Now almost a year later, those predictions are coming to light.

Enacting the HBR creates two problems for lenders: it increases the litigation exposure and piles on an additional layer of compliance, thus pushing lenders into judicial foreclosures, Scott Jackson, president and managing attorney with Robert Jackson and Associates, explained.

According to a recent article in Bloomberg, in the first quarter, banks filed 2,348 court notices in non-judicial states, a drastic jump compared to only seven notices in the first quarter of 2013.