Daily Archives: July 22, 2014

JPMorgan’s $13B RMBS settlement progress…so far

JPMorgan Chase (JPM) so far has correctly claimed $6,325,087 of consumer relief credit in reltion to its $13 billion agreement to settle claims regarding the packaging, marketing, sale and issuance of residential mortgage-backed securities by Chase, Bear Stearns andWashington Mutual to investors before the financial crisis.

Joseph Smith, as monitor of the settlement, released his initial report overseeing Chase as it distributes $4 billion in credited consumer relief.

Under the settlement, Chase is required to provide relief to borrowers within essentially a four-year period ending Dec. 31, 2017.

“Chase has begun to provide this relief, and my team and I have confirmed that Chase has provided approximately $6 million in credited consumer relief,” said Smith.

Read on.

People who opt out of receiving promotional offers from BofA have to restate their decision every five years

The letter Richard Knee received from Bank of America opened with a warning: “You may be missing out on valuable offers.”


“According to our records, you are not being mailed offers from Bank of America because you have opted out of postal mail marketing offers,” the letter said.

Happily for BofA, that’s changing. It said that the preference made clear by Knee, 68, five years ago would expire this month. If he didn’t opt out anew, the junk mail would start flowing again.

“Why should I have to opt out again?” the San Francisco resident asked me. “I already told them that I don’t want their stuff cluttering my mailbox. The opt-out should be permanent.”

It’s a great point, and I agree completely. Yet BofA’s marketing persistence illustrates a broader trend: Many businesses just won’t take no for an answer.

“If they offered you an opt-out and you opted out, they should honor it,” said Robert Gellman, a Washington, D.C., privacy consultant. “You’ve stated your preference.”

On its website, BofA says that “you have choices when it comes to sharing certain information with affiliates and third parties and limiting direct marketing contact.”

Read on.



Eliot Spitzer Invests In Financial Expert Accountability Company

New York — TipRanks, a financial accountability website, recently closed Round A with $3 million. Among the backers is former New York State Governor Eliot Spitzer, who earned his nickname the “Sheriff of Wall Street” for going after corrupt financiers when he was New York State’s Attorney General. Other investors include Cornell professor, Roni Michaely, and Angel investor, John Nakamura.


TipRanks was founded in June of 2012 with $700,000 seed money by Uri Gruenbaum, CEO, and Gilad Gad, CTO, as a resource for investors after realizing that there is not enough public information available regarding the track records of experts providing financial advice online, therefore investors do not know whose advice to trust.


Initially available as a “financial firewall” (an extension form which was automatically activated on a user’s screen whenever they read an article with a rating call in top financial publications), TipRanks quickly grew to include a standalone website, ranking over 6,500 analysts and bloggers based on their success rate of financial advice, average return, and consistency.


TipRanks uses machine learning and natural language processing algorithms (NLP) to analyze the internet and measure the performance of anyone giving investment advice online on leading financial blogs and websites.


TipRanks’ opened beta version ( www.tipranks.com) provides users with the capabilities to:

         See the track record of anyone publishing investment advice including more than 3,100 sell side analysts and more than 3,500 prominent financial bloggers

Read more: http://www.benzinga.com/startups/14/07/4719629/eliot-spitzer-invests-in-financial-expert-accountability-company#ixzz38ER3EtaJ

NY Fed Slams Deutsche Bank (And Its €55 Trillion In Derivatives): Accuses It Of “Significant Operational Risk”

More from WSJ:


In a letter to Deutsche Bank executives last December, a senior official with the New York Fed wrote that financial reports produced by some of the bank’s U.S. arms “are of low quality, inaccurate and unreliable. The size and breadth of errors strongly suggest that the firm’s entire U.S. regulatory reporting structure requires wide-ranging remedial action.”


The criticism from the New York Fed represents a sharp rebuke to one of the world’s biggest banks, and it comes at a time when federal regulators say they are increasingly focused on the health of overseas lenders with substantial U.S. operations.


The Dec. 11 letter, excerpts of which were reviewed by the Journal, said Deutsche Bank had made “no progress” at fixing previously identified problems. It said examiners found “material errors and poor data integrity” in its U.S. entities’ public filings, which are used by regulators, economists and investors to evaluate its operations.


The shortcomings amount to a “systemic breakdown” and “expose the firm to significant operational risk and misstated regulatory reports,” said the letter from Daniel Muccia, a New York Fed senior vice president responsible for supervising Deutsche Bank.



Deutsche Bank’s external auditor, KPMG LLP, also identified “deficiencies” in the way the bank’s U.S. entities were reporting financial data in 2013, according to a Deutsche Bank email reviewed by the Journal.

Action 9 investigates foreclosures that could force surviving spouses from homes


A new wave of foreclosures threatens hundreds of Central Florida families who could be kicked out of their homes after a spouse dies.

A Palm Bay widow is just one victim who blames a reverse mortgage and its hidden risks.

Action 9’s Todd Ulrich discovered how the very loan that was supposed to keep families in their homes is now forcing many out.

After her husband died, Cynthia Harris discovered the reverse mortgage, that had been a cash lifeline to keep their Palm Bay home, was now a costly trap.

“I definitely fear being kicked out of my own home. They’re taking my home,” said Harris.

The lender, One West, is foreclosing because Cynthia’s name is not on the deed.

When Cynthia and her husband got the reverse mortgage to tap their home’s equity she was 57 years old.  She said the lender told her that to qualify she had to sign a Quit Claim Deed and take her name off of the property.

“They said they would put me on the mortgage once I turned 62, to secure my position in the home,” said Harris.


Read on.

CIT to Buy OneWest for $3.4 Billion

And guess who runs CIT? John Thain, the former CEO of Merrill Lynch!

The CIT Group, a lender to small and midsize businesses run by John A. Thain, said on Tuesday that it had agreed to acquire the parent company of OneWest Bank for $3.4 billion in cash and stock.

The deal will bolster CIT’s lending abilities by more than doubling its deposit base. OneWest currently manages $15 billion in deposits, as well as $23 billion in assets, including commercial and home mortgages.

It will merge with CIT’s own bank, creating a commercial bank with $28 billion in deposits and $67 billion in assets – putting it above the $50 billion threshold for increased regulatory oversight of banks deemed systemically important.

Read on.

Short-sale former BofA banker sentenced to 2½ years for bribery

LOS ANGELES – A former Bank of America worker on Monday was sentenced to 2½ years and federal prison and ordered to forfeit his house for taking $1.2 million in bribes to approve cheap short sales on properties on which the bank held mortgages.
Kevin Lauricella, 29, of Thousand Oaks, also was ordered to pay $5.7 in restitution to Bank of America, and to forfeit his home, which he bought with some of the bribe money, the U.S. Attorney’s Office said in a statement.
Lauricella pleaded guilty in January to two felonies: taking bribes and making false entries in the bank’s books and records.
Lauricella worked in BofA’s Short Sales Department in Simi Valley in 2010 and 2011. He was responsible for negotiating short sales. His “fraudulent short sales also clouded the title on the properties, which in turn resulted in expensive litigation for innocent parties, including individuals who purchased the homes later,” according to the U.S. attorney.

Read on.

Fannie Mae contractor Cyprexx accused of racial discrimination

The National Fair Housing Alliance, Housing Opportunities Made Equal, and Fair Housing Continuumfiled a discrimination complaint with the Department of Housing and Urban Development, alleging that Cyprexx Services failed to properly maintain real estate owned properties in African American and Latino neighborhoods in Baltimore, Maryland; Kansas City, Missouri; Orlando, Florida; and Richmond, Virginia.

A Cyprexx source said the company was not made aware of any complaints and the NFHA, to his knowledge, never reached out. And this is not the first time the NFHA decided to take aim at a field service provider.

The NFHA typically uses this type of shoot-first tactic. When asked whether Cyprexx was notified of the investigation prior to the complaint being filed, the NFHA said it does not contact the subjects of its investigations.

“We have contacted Fannie Mae about these types of issues in the past,” said Shanna Smith, president and CEO of the National Fair Housing Alliance. “We expected Fannie to contact their vendors to address these issues. We expect Cyprexx knew about this. We are taking administrative action to remedy these issues as quickly as possible.”

The alliance, in the past, also targeted big lenders, such asBank of America, as well as online real estate market places, such as Zillow and Trulia.

Today it is Cyprexx’s turn.

The consortium of housing advocacy groups surveyed nearly 175 properties in the four cities and found that theFannie Mae-owned properties in minority neighborhoods were in much worse condition than those in predominantly white neighborhoods.

“Fannie Mae is allowing its contractors to treat homes in communities of color very poorly,” Smith said. “Cyprexx is required by federal law to maintain foreclosures without regard to the racial makeup of the neighborhood, but the evidence we uncovered flies in the face of that obligation. Unfortunately, this complaint addresses merely the latest in long pattern of discrimination by Fannie and its contractors.”

Read on.

EX 35 1 Pooling and Servicing JPMorgan Mortgage Acquisition Trust 2007-CH3

Published by Mary Cochrane



RE: J.P. Morgan Mortgage Acquisition Trust 2007-CH3 Asset Backed Pass-Through
Certificates, Series 2007-CH3: This Pooling and Servicing Agreement, is dated as
of April 1, 2007 (the “Agreement”), by and among J.P. Morgan Acceptance
Corporation I, a Delaware corporation, as Depositor (the “Depositor”), J.P.
Morgan Mortgage Acquisition Corp., a Delaware corporation, as Seller (the
“Seller”) for purposes of Section 2.03 and 2.06, JPMorgan Chase Bank, National
Association, as Servicer (the “Servicer”), Deutsche Bank National Trust Company,
as Trustee (the “Trustee”) and Pentalpha Surveillance LLC as Trust Oversight
Manager (the “Trust Oversight Manager”)

The undersigned, a duly authorized officer of JPMorgan Chase Bank, National
Association, as servicer (the “Servicer”) pursuant to the J.P. Morgan Mortgage
Acquisition Trust 2007-CH3 Asset Backed Pass-Through Certificates, Series
2007-CH3 (The “Agreement”), does hereby certify that:

(1) A review of the activities of the Servicer during the calendar year
ending December 31,2007 and of the performance of the Servicer under the
Agreement has been made under my supervision; and

(2) To the best of my knowledge, based on such review, the Servicer has
fulfilled all its obligations under the Agreement in all material respects
throughout such year.

Date: 02/28/2008

JPMorgan Chase Bank,
National Association,
as Servicer

By: /s/ David Lowman
Name: David Lowman
Title: Executive Vice President


Podcast: Glaser, Cuomo, and the Refusals That Made the Story

Justin Elliott (@JustinElliott) was doing his poking around a year ago when he uncovered a story he hadn’t even known existed, he tells Assistant Managing Editor Eric Umansky (@ericuman) in this week’s podcast.

Looking into the relationship between Howard Glaser, a mortgage industry lobbyist, and Andrew Cuomo, now New York’s governor, he filed a Freedom of Information request for Glaser’s emails in that capacity. The state denied the request, citing Glaser’s role as a consultant in Cuomo’s  investigation into the mortgage industry during his time as attorney general — a previously unreported fact.

Read on.

And here is the podcast. Click here.