Daily Archives: August 1, 2014

Did John Wiley Price alleged co-conspirator and political consultant Kathy Nealy buy her own condo out of foreclosure?

According to a public document called a Rescission of Substitute Trustee’s Sale and Cancellation of Substitute Trustee’s Deed, Kathy Nealy, an alleged co-conspirator of John Wiley Price’s, apparently bought or got her condo unit at The Terrace back into her ownership after it was sold to PHH Mortgage on August 9, 2013.

The mortgage default was rescinded on December 13, 2013, signed by Nealy on January 9, 2014, and notarized by Price on January 28, 2014.

Yet in DCAD, the ownership of unit 216 at The Terrace, 2323 N. Houston St., is still listed as the Federal National Mortgage Association. Huh.

Cheryl Jordan at the Dallas County Appraisal District says DCAD picks up whatever is filed at the Dallas County Clerk’s office. “We look at warranty deeds filed,” she says. “We can’t look at every court document filed, unless someone brings it to our attention.”

Well, now it’s now been brought to their attention.

Read on.


Kathy Nealy, a political consultant currently under indictment by the FBI for an alleged bribery conspiracy, owned a unit inside the Victory Park highrise known as the Terrace. Once under foreclosure, Nealy’s unit was then taken off foreclosure rolls and the deed was transferred to Nealy and signed by John Wiley Price.

Andrew Cuomo hires criminal lawyer to represent governor’s office as scandal over Moreland anti-corruption commission grows: sources

ALBANY — Gov. Cuomo has lawyered up in response to the growing scandal over the way he handled his anti-corruption commission, the Daily News has learned.

Cuomo hired prominent white-collar criminal defense lawyer Elkan Abramowitz in May to represent the governor’s office in U.S. Attorney Preet Bharara’s probe into the administration’s dealings with the Moreland Commission, sources told The News.

Read more: http://www.nydailynews.com/news/politics/preet-bharara-threatens-cuomo-new-probe-article-1.1887193#ixzz39AyTnpcD

Exclusive: JPMorgan’s proposed $4.5 billion deal to be accepted for most trusts

Trustees representing investors in JPMorgan Chase & Co’s (>> JPMorgan Chase & Co.) $4.5 billion settlement over money-losing mortgage-backed securities are expected to accept the bank’s proposal for the vast majority of their trusts, according to a person familiar with the matter.

The seven trustees overseeing the securities will accept the deal for all but perhaps two dozen of the 330 trusts included in the offer, the person said.

Trustees may poll bondholders in some trusts to see if they would pursue claims if the offer is rejected, the person said.

JPMorgan reached the $4.5 billion agreement in November with 21 institutional investors in 330 residential mortgage-backed securities trusts issued by JPMorgan and Bear Stearns, which it took over during the financial crisis.

Read on.

New York now allows shared appreciation mortgage modifications

Underwater homeowners in New York state are now eligible for an additional form of mortgage modification intended to help more of them keep their homes, in a development quietly passed in the state.

On July 9, the New York Department of Financial Servicesadopted regulations that allow for shared appreciation mortgage modifications under certain circumstances. The new regulations were announced in the state’s registerand went into effect that day.

The regulations, Section 6-f of New York banking law, state that if a borrower is at the risk of foreclosure due to owing more on their home than it is currently worth, a a lender or mortgage holder may reduce the principal amount of a loan to help the borrower stay in their home.

According to a letter from the DFS sent to New York lenders, the lender or mortgage holder would then be entitled to share in any appreciation of the market value of the property between the effective date of the reduction in the principal amount of the mortgage loan and the date when the property is sold or transferred.

Read on.

MERS and ICE in talks to merge


The Atlanta-based exchange owner has been gauging demand for derivatives that enable investors to bet on defaults by U.S. homeowners,Bloomberg News reported in May. ICE, which earns most of its revenue by owning one of the world’s largest derivatives markets, has recently exnded into new businesses such as equity trading with its 2013 purchase of NYSE Euronext and the administration of interest-rate benchmarks.

MERS keeps filling headlines as it sifts through a pile of lawsuits of foreclosures stemming back to the crisis. 
Source: Bloomberg

Geoff Lewis of JPMorgan gives an overview of how risks in the U.S., Russia and Argentina are impacting investment strategies in emerging markets

Hong Kong securities watchdog to clamp down on ‘dark pools’- sources

Hong Kong’s securities watchdog has warned banks it will clamp-down on exchange trading platforms known as dark pools in a direct fallout from a contentious lawsuit against Barclays Plc (>> Barclays PLC) in the United States, people familiar with the matter told Reuters.

The increased regulatory scrutiny by Hong Kong’s Securities and Futures Commission (SFC) could hurt prospects for the nascent dark trading market in the Asian financial centre and may trigger similar action by other regulators in the region, they added.

Banks in Hong Kong have sought legal advice following a confidential meeting convened by the SFC’s supervisory department last month, during which the watchdog told firms it would step-up scrutiny of dark pool marketing materials, one person said.

Read on.

Lobbyists Bidding to Block Government Regs Set Sights on Secretive White House Office

When Washington lobbyists fail to derail regulations proposed by federal agencies, they often find a receptive ear within the Office of Information and Regulatory Affairs, an arm of the White House Office of Management and Budget that conducts much of its business in secret.

Read on.

Banking Cases To Watch As 2014 Rolls On

Law360, New York (July 28, 2014, 5:39 PM ET) — Litigation in the second half of 2014 could fundamentally alter a major credit card firm’s business, change how investor losses on mortgage-backed securities are timed and determine whether dark pools will be exposed to greater sunlight.
Even as those cases move forward, the U.S. Department of Justice and federal banking regulators are expected to continue their push against foreign banks for alleged sanctions violations and the Consumer Financial Protection Bureau will keep up the pressure that it has put on banks, payday lenders and other industry players.

Here are some of the major banking and financial services cases to watch in the latter stages of 2014:

Read on.

Big Banks Remind Us Why We Should Be Scared

Huffington Post:

Six years after the height of the financial crisis that triggered the most punishing economic downturn since the Great Depression, Thursday’s reports and warnings collectively suggested that the measures President Barack Obama signed into law four years ago intending to prevent another financial crisis didn’t go far enough.

“These banks are not just too big to fail,” Sen. Sherrod Brown (D-Ohio) said during aninterview with Bloomberg TV. “They’re too complex to regulate. They’re too big or too complicated to manage. Look at the problems these largest banks have had.”

Since 2008, big U.S. and foreign banks have spent close to $100 billion to settle federal and state allegations of wrongdoing, including accusations that they:

1) Illegally seized borrowers’ homes.
2) Cheated towns across the country that had issued debt.
3) Ripped off troops.
4) Manipulated benchmark interest rates.
5) Misled investors when selling them home loans that had been bundled into securities.
6) Duped homeowners into taking out expensive mortgages.
7) Rigged markets to bolster their trading positions.
8) Processed payments for alleged terrorists and genocidal regimes.
9) Helped Americans evade U.S. taxes.
10) And enabled Mexican drug cartels to launder their money.

Authorities also have accused large financial institutions of misdeeds that includeignoring signs that Bernie Madoff was engaged in a massive Ponzi scheme, and tricking households into paying for worthless credit card products. In most of the settlements that ended government probes into banks’ misbehavior, the banks neither admitted nor denied wrongdoing.