Daily Archives: September 4, 2015

Miami Gets Another Shot at Big Banks

(CN) – The 11th Circuit revived Miami’s claims that Bank of America, Wells Fargo and Citigroup made predatory loans to black and Hispanic borrowers for a decade.
Miami filed separate lawsuits claiming the banks targeted black and Latino homebuyers for predatory loans with steeper fees and interest rates than they offered to similarly situated white customers, a practice called reverse redlining.
The city claimed the banks created incentives to encourage employees to sell the high-cost loans even when they were not justified by an applicant’s creditworthiness.
By steering minorities into predatory loans, the banks share responsibility for the unnecessary foreclosures of minority-owned properties, depriving the city of tax revenue, and contributing to urban blight, Miami claimed.
A federal judge dismissed the complaints, finding that the city had not shown the banks’ practices caused it actual harm. But the 11th Circuit reversed and remanded Tuesday, finding the city had standing under the Fair Housing Act.

Read on.

Freddie Mac joins Fannie Mae in extending foreclosure timelines

On Thursday, Fannie Mae announced that it wasincreasing its maximum number of allowable days for a foreclosure sale in 33 states. But Fannie Mae wasn’t alone.Freddie Mac has also announced that it is increasing the maximum number of allowable days for “routine” foreclosure proceedings in those same 33 states.

As with Fannie Mae, Freddie Mac said the new foreclosure timelines apply to all foreclosure sales completed on or after Aug. 1.

Read on.

Donald Trump stumbles during interview on foreign policy

I’m shaking my head on this… Who are the Qud Force?

The Quds Force (also spelled Ghods or Qods) (Persian: نیروی قدس‎ Nīrū-ye Qods or سپاه قدس Sepâh-e Qods), inEnglish: the Jerusalem Force, is a special forces unit of Iran‘s Revolutionary Guards and is responsible for their extraterritorial operations.[1]

The Quds Force reports directly to the Supreme Leader of Iran, Ali Khamenei.[2][3] Its commander is Major General Qasem Soleimani[4] and his deputy is Hossein Hamadani.[5] While “little is reliably known” about the force,[6] as of 2007, its size was estimated at 15,000 troops.[7]

And who are the Kurdish people?An ethnic group being targeted by ISIS in northern Iraq.

Marketwatch:

The Quds Force and the Kurdish people are not the same thing.

Donald Trump seemed to think conservative radio host Hugh Hewitt was referring to the latter — a group with its own language and culture — instead of the former in a radio interview on Thursday. Hewitt, the New York Times writes, asked Trump about the Quds Force, an Iranian military group. Trump told Hewitt the Kurds have been “horribly mistreated” before Hewitt interrupted and corrected him. Fellow Republican presidential hopeful Carly Fiorina, the Times writes, sounded informed about the Quds Force when she appeared on Hewitt’s show. Trump also told Hewitt at one point that his question about the names of individual foreign leaders was “somewhat ridiculous.”

Excerpt of Trump’s interview:

HH: Are you familiar with General Soleimani?

DT: Yes… but go ahead, give me a little, go ahead, tell me.

HH: He runs the Quds Forces.

DT: Yes, okay, right.

HH: Do you expect his behavior —

DT: The Kurds, by the way, have been horribly mistreated by —

HH: No, not the Kurds, the Quds Forces, the Iranian Revolutionary Guards Quds Forces, the bad guys.

DT: Yes, yes. Right.

HH: Do you expect his behavior to change as a result…

DT: Oh, I thought you said Kurds, Kurds.

HH: No, Quds.

DT: Oh, I’m sorry, I thought you said Kurds, because I think the Kurds have been poorly treated by us, Hugh. Go ahead.

And about Hamas and Hezbollah? Trump says, he will know the difference between Hamas and Hezbollah ‘when it’s appropriate.’

At least Trump knows China and Mexico…

Trump signs GOP pledge — with wrong date

The man is punking the party. He signed the pledge with the wrong date? And he is a business man? Certainly, that signed pledge is not a legal binding agreement…Check out Trump’s signed pledge dated August 3, 2015 and not September 3, 2015:

But, he later tweeted the corrected signed pledge:

Embedded image permalink

The Pledge

And his reason for the mistake date?:

When asked about the mistake, the GOP’s 2016 presidential front-runner dismissed it as someone else’s error.

“They put it in … yeah. Somebody else wrote it. We’ll change the date,” Trump said.

Somebody else wrote it? lol! Like I said Trump is doing a snowjob on the GOP party.

Nonbanks face increasing regulations as share of mortgage lending grows

The Community Home Lenders Association shows in a side-by-side chart comparison the growing divergence in both consumer and financial regulations that non-bank lenders and banks face.

Non-banks increasingly face a heavy burden of regulatory concerns, the chart shows.

The CHLA, which represents non-bank mortgage lenders, has consistently warned that non-bank over-regulation can lead to industry concentration, which hurts consumers and actually increases financial risk.

“The Community Home Lenders Association is releasing a detailed side-by-side comparison to show that non-bank mortgage lenders are subject to more consumer protections than banks and have virtually identical financial and operational regulation by product regulators, including FHA, RHS, VA, Ginnie Mae andFHFA,“ said Scott Olson, CHLA executive director.  “We are releasing this comparison to dispel myths and misperceptions held by some in the press and some in Congress that non-bank mortgage lenders are not adequately regulated.”

The comparison takes place as non-bank lenders have significantly increased their share of mortgage lending in the last few years, while many banks have exited or reduced the mortgage market.

Here’s a preview.

Click to enlarge

Read on.

New York Gov. Cuomo Silent On Effort To Force General Electric To Clean Up Its Pollution From Hudson

Environmental groups and Democratic legislators are pressuring New York Gov. Andrew Cuomo to say that General Electric must continue cleaning up the massive pollution the company dumped into the Hudson River over decades during the 20th century. Cuomo’s own environmental officials say the pollution continues to cause “ongoing contamination,” and federal officials warn that GE’s plan to end its cleanup this fall could harm the effort to restore the river’s ecosystem.

But the Democratic governor — who has benefited from GE’s campaign cash — is declining to say whether he agrees.

In comments to reporters in Albany on Thursday, the governor said he thinks the company should “follow the law and the agreements that have been made.” Under the 2002 agreement in question, GE is planning to shut down its cleanup operations at the end of 2015 — which, environmental groups claim, will leave behind at least 35 percent of the carcinogenic polychlorinated biphenyls (PCBs) the company dumped into the river during the mid-20th century.

“I know there are claims for [GE] to do more above and beyond that,” Cuomo said of the request by legislators and environmental groups. But, he added, “I haven’t really looked into that.”

Conservation groups said that unless Cuomo takes action, the cleanup of one of the nation’s largest environmental disasters will end prematurely, leaving carcinogenic PCBs in New York’s largest waterway.

Read on.

Lloyds sued for unfair dismissal over Libor sacking

Lloyds Banking Group is being sued for unfair dismissal by a former employee who was sacked following the Libor-rigging scandal.

Andrew Reed, who was responsible for entering Lloyds’ yen Libor submissions, will take his case to a London employment tribunal on September 16.

The bank fired eight staff last year for “totally unacceptable behaviour” discovered during its investigation into rate-rigging.

Lloyds subsequently handed evidence to the UK’s Financial Conduct Authority (FCA), the United States Commodity Futures Trading Commission and the United States Department of Justice, resulting in a £225m fine.

Read on.