Daily Archives: July 7, 2014

Eminent domain survives Richmond City Council opposition

In a narrow 4-3 margin, the Richmond City Council rejected a resolution to terminate a contract with Mortgage Resolution Partners, the company that hatched a plan to seize underwater mortgages through eminent domain. PerContra Costa Times:  

As the columnist Tom Barnidge put it in the article:

The flaws in Richmond’s plan are many, beginning with whether eminent domain can even be used this way. Plus, the plan affects a limited number of homes — barely 3 percent of single-family residences — and helps no one in foreclosure, while MRP tacks a fee onto each transaction. Then there’s the search for lenders to fund new loans at more than 100 percent of value.

This scheme to end the so-called mortgage crisis, championed by bank-hating Mayor Gayle McLaughlin, is rich in intention and short on critical thought.

 

Argentina default could hurt JP Morgan and Citigroup, will be recovered from their pockets

Summary

  • Argentina’s expected default will be recovered from the pockets of Citigroup and JP Morgan, the CDS writers.
  • If the U.S. court’s ruling is fully enacted upon by the Argentinean government, a series of default will begin.
  • Citigroup failed the stress test of Fed; a red flag for the current and prospective shareholders.
  • Flawed mortgage securities issued in the past continue to teach a lesson to the big banks like Citigroup, Bank of America etc.
  • Risk management continues to be a serious issue for the group and requires urgent attention.

The epitome of a global bank, Citigroup Inc. (C), seems to be in a lot of trouble these days as it continues to get hit from every end. Although the bank is consistently working on ameliorating the efficiency of its core operations, the decisions made six to eight years ago continue to haunt the group with the ceaseless repercussions.

Read on.

Neighboring counties in South Carolina join Beaufort County in suing mortgage-services company MERS

The other counties in the South Carolina’s 14th Judicial Circuit are following Beaufort County’s lead by filing lawsuits against a nationwide mortgage database, according to an attorney for those counties.

Beaufort, Allendale, Colleton, Hampton and Jasper counties say Mortgage Electronic Registration Systems, owned by nearly two dozen large banks and mortgage services, operates an electronic record-keeping system that parallels the counties’ deed records.

The counties contend the system hides who owns loans, often by listing only MERS as the owner, not a specific member bank or service. That constitutes fraud and undermines the county’s property-ownership records, which state law requires to list the exact owner of a property’s title, county attorney Josh Gruber said.

In extreme circumstances, that could mean homeowners are left in the dark about who owns their loans and would have no public records to turn to try to defend their homes against foreclosure, Gruber said.

“You’re talking about anticipating the worst-case scenario,” he said. “Your mortgage company is entitled to foreclose on the loan (if its agreement isn’t met), and if you don’t know who has that, you could find yourself in big trouble.”

The company also could have sidestepped several hundred thousand dollars in local Register of Deeds’ filing fees for recording transactions on deeds. Lawsuits against MERS to recoup those fees have failed in other states, so the 14th Judicial Circuit counties have avoided that claim, Gruber said.