Daily Archives: January 12, 2015

California Foreclosure Law: California Supreme Court Grants Review Of The Keshtgar Decision

As reported in our blog article below, in June the Second District Court of Appeal held that California’s non-judicial foreclosure statutes do not grant a defaulting borrower the right to enjoin a foreclosure sale by alleging that the lender lacks standing. (Keshtgar v. U.S. Bank, N.A. (2014) 226 Cal.App.4th 1201.)

The California Supreme Court recently granted review of the Keshtgar decision and deferred briefing until resolution of a related matter entitled Yvanova v. New Century Mortgage Corp.

The court has also granted review of Mendoza v. JPMorgan Chase Bank and deferred briefing until resolution of Yvanova.

The grant of review in Yvanova is limited to a single issue: “In an action for wrongful foreclosure on a deed of trust securing a home loan, does the borrower have standing to challenge an assignment of the note and deed of trust on the basis of defects allegedly rendering the assignment void?”

More from JD Supra website.

Bad debt cases ended, NY AG forces firm to drop $18M in outdated judgments

The state attorney general wiped out $18 million in outdated bad debt judgments against thousands of New Yorkers in a settlement with one of the nation’s largest debt collectors, which illegally sued debtors over old claims and filed unverified “robosigned” legal paperwork to support its efforts.

California-based Encore Capital Group agreed to vacate court judgments against 4,500 New Yorkers for debts that were too old to be sued over, pay a $675,000 state penalty, and start telling debtors when debts are too old to be pursued in court.

Read on.

AIG Insurance Executive Goes Missing In Palm Desert, CA

ABC News:

PALM DESERT, Calif. (KABC) — A Los Angeles executive with AIG Insurance Company has been reported missing following a company dinner in Palm Desert.

Omar Meza, 33, went missing Thursday night. Co-workers last saw him take an Uber to his hotel.

He was last seen on video in the lobby of the JW Marriott Desert Springs Resort & Spa around 11 p.m. Thursday. He failed to show up for scheduled meetings on Friday.

Investigators from the Palm Desert Sheriff’s Station found Meza’s jacket and wallet on the hotel’s golf course, but they don’t expect foul play.

His wife says her husband was in a car accident in 2013 and suffers from memory loss. She thinks he has long-term damage and may not know where he is.

Search and rescue teams used bloodhounds to try and track Meza to no avail.

The investigation is ongoing. Anyone with any information on Meza’s whereabouts was urged to contact the Palm Desert Sheriff’s Station at (760) 836-1600.

Citigroup, Goldman Sachs & ICAP Reportedly Running “Grexit” Stress Tests

Tyler Durden: Every couple of years the same identical European drill repeats itself: 1) Greece makes loud noises asit approaches an election, 2) Europe says it couldn’t care what the outcome is and that Greece should stay in the Euro but if it exits it won’t be a disaster,3) the ECB reminds everyone of the lie that it is not preparing for Plan B (it is) despite holding on to over €100 billion in “credibility-crushing” Greek bonds, 4) panicking Greek banks say the deposit outflow situation is completely under control (adding that “The Bank of Greece along with the European Central Bank are monitoring closely the developments and intervene whenever this is necessary,” which is code word for far more familiar, five-letter word), and meanwhile 5) all non-Greek banks quietly start preparing for the worst case scenario.

So far this time around, we had everything but step “5″. We do now.

According to the WSJ, “banks and other financial institutions in Europe are stress-testing their internal systems and dusting off two-year-old contingency plans for the possibility Greece could leave the region’s monetary union after a key election later this month. Among the firms running through drills are Citigroup Inc., Goldman Sachs Group Inc. and brokerage ICAP PLC, according to people familiar with the matter.”

Read on. More from Forex Magnates website.

DOJ Denies Discovery Claims in Wells Fargo Fraud Suit

Law360, New York (January 12, 2015, 2:29 PM ET) — The U.S. Department of Justice on Friday rejected Wells Fargo & Co.’s allegations that it has failed to uphold its discovery obligations in its $189 million mortgage insurance fraud suit against the bank, telling a New York federal judge that it has made significant progress.

The Manhattan U.S. Attorney’s Office rejected the bank’s complaints in a letter to U.S. District Judge Jesse M. Furman, saying the government has begun producing documents and plans to start rolling production on certain bank requests by January and February, months…

Source: Law360

Banks Want ‘Responsible’ Customers, but Rewards Don’t Show It

NEW YORK (MainStreet) — With bank rewards programs, customers increasingly feel they’re getting less bang for their buck — and they want banks to do something about it.

In Bank of America‘s most recent Preferred Rewards Consumer Study, 79% of consumers say they want rewards programs to help their money go further, whereas just 20% say they want “fancy” rewards/benefits to use toward a special one-time experience or purchase.

Overwhelmingly, consumers say they want rewards for the financial steps they are already taking — in particular, those that can be deemed as “responsible” actions,” says Bank of America in a Thursday press release. “That includes depositing to a savings account; making mortgage payments on time; depositing to a retirement account; using a bank website to do banking activities online; having more than one account with a bank; maintaining a minimum balance in a primary account.”

Read on.

Payday Lenders Are Using The Internet To Evade State Law

Borrowing from any payday lender can be a risky endeavor. Borrowing from one online can be downright perilous.

The pitfalls of borrowing from storefront payday lenders — companies that offer short-term loans with high interest rates — are already well-documented. Regulators and consumer groups have long warned such loans can trap people in vicious cycles of debt. Less is known about online payday lenders, which offer the same service with the added allure of the transaction happening completely on the Web.

Consumer groups say these types of lenders may be even riskier for struggling borrowers than brick-and-mortar lenders, leading consumers into even more hopeless financial quagmires.

Read on.