Daily Archives: March 27, 2015

Bank of America not giving shareholders a vote on chairman decision

Bank of America shareholders learned Thursday that the bank will not hold a vote at its May 7 annual meeting on its move last fall to hand its CEO the chairman title.

The Charlotte bank’s annual proxy filing does not include any proposals from the bank’s management or shareholders on the lender’s combination of the two roles in October.

Several large investors had pushed for the bank to let shareholders vote on the bank’s decision to roll back a bylaw change approved by shareholders in 2009 to split the roles. But these shareholders later backed off a request for a vote.

In the proxy filing, Bank of America strongly defended its decision to give CEO Brian Moynihan the extra title, saying it was based on a “well-researched” review and months of “thorough deliberation.”

Servicers in DOJ’s Crosshairs Following JPM Robo-Signing Settlement

Mortgage servicers were supposed to have stopped robo-signing foreclosure documents when state and federal authorities cracked down on the practice years ago, but it seems some have not learned their lesson.

While only JPMorgan Chase has been cited for recent robo-signing infractions, Clifford J. White 3rd, the head of a Justice program that oversees consumer bankruptcies, says he is seeing evidence of other servicers not following proper protocols when it comes to dealing with homeowners who have filed for bankruptcy. That could include not just robo-signing documents, but also failing to inform homeowners of mortgage payment increases or charging excessive loan-default fees.

Such abuses violate a 2012 settlement between law enforcement officials and the nation’s largest servicers and White is putting other servicers on notice that they too will be punished if they flout bankruptcy rules.

“Compared to where we were a few years ago, the banks are doing a better job,” said White, the director the Justice Department’s Office for U.S. Trustees. But, he added, “it is disappointing that, after all the years, [the problems]…are not completely rectified.”

Read on.

FDIC Employee Quits and Goes Public With Complaint Against Chase, WAMU, Citi and two law firms

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See Eric Mains Federal Complaint

see Mains – Table of Contents.petition 2 transfer

On Monday Eric Mains resigned from his employment with the FDIC. He had just filed a lawsuit against Chase, Citi, WAMU-HE2 Trust, Cynthia Riley, LPS, WAMU, and two law firms. Since he felt he had a conflict of interest, he believed the best course of action was to resign effective immediately.

His lawsuit, told from the prospective of a true insider, reveals in astonishing detail the worst of the practices that have resulted in millions of illegal foreclosures. Some of his allegations cast a dark shadow over claims of Chase Bank on its balance sheet, as reported to the public and the SEC and the reporting of both Chase and Citi as to their potential liability for wrongful foreclosures. If he is right, and he proves…

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Congresswoman wants to put Fannie, Freddie profits in escrow

U.S. Rep. Marsha Blackburn, R-Tenn., introduced a bill Thursday addressing the treatment of revenues from the government-sponsored enterprises Fannie Mae andFreddie Mac.

The bill would put Fannie and Freddie’s profits in escrow until GSE reform is achieved.

“We congratulate Rep. Marsha Blackburn for introducing legislation to protect taxpayers, honor obligations to investors and restore the rule of law,” said Investors Uniteexecutive Director Tim Pagliara. “As long as Congress and the Administration remain paralyzed in addressing the fate of Fannie Mae and Freddie Mac, revenues generated from the GSEs should be placed in a reserve fund to cover possible losses of the GSEs, as Rep. Blackburn proposes.”

Pagliara said that this bill would be a meaningful proposal to end the “Third Amendment sweep” and shut off what he says is an illegal revenue stream for the Treasury.

Read on.

Ocwen offering indemnification to company directors and executive officers

By its own admission, Ocwen Financial (OCN) is facing 21 pending investigations in 15 different states, is currently facing delisting by New York Stock Exchange for delaying the release of its annual report, and has run afoulof investors and homeowners alike.

Either in spite of or because of those issues, Ocwen said Thursday that it is offering indemnification agreements to each of the company’s directors and executive officers.

Ocwen disclosed the pending indemnification agreements in a filing with the Securities and Exchange Commission.

According to the filing, the company began offering indemnification agreements to its directors and executive officers on March 21. The filing states that the indemnification agreements are required by the company’s governing documents and are “consistent with common practice among public companies.”

Read on.