Daily Archives: November 7, 2015

Former NBA player Glen Rice, ex-wife face foreclosure on downtown Miami condo

Former Miami Heat superstar Glen Rice and ex-wife Cristy Rice, formerly of Real Housewives of Miami, are facing the loss of a downtown condo they still own together.

Miami-Dade County records show M&T Bank is going after the Rices after they allegedly quit making payments on the condo they bought in 2006 as an investment when Glen retired from the Los Angeles Clippers.

Property records show Glen and Cristy paid $317,000 for the crib, on the 27th floor of the Neo Vertika building on Southwest First Court in downtown Miami.

Thing is, they took out several mortgages for a total of $500,000 on the condo. M&T’s loan is supposed to be paid back at the rate of $1,401 a month.

According to the foreclosure lawsuit, the Rices quit paying in February.

US Bank, Others Seek Approval Of $1B RMBS Citigroup Deal

Law360, New York (November 6, 2015, 5:11 PM ET) — U.S. Bank NA, along with units of Deutsche Bank AG and HSBC Holdings PLC, on Friday asked a New York judge to sign off on a $1.1 billion residential mortgage-backed securities settlement with Citigroup Inc., saying an exhaustive review has shown it to be a reasonable deal.

Attorneys for the moving lenders gathered in New York Supreme Court in Manhattan to petition Judge Marcy Friedman for approval of the settlement, under which Citigroup will make a binding offer to the trustees of 68 Citigroup-sponsored trusts that…

Source: Law360

Bank of America Wants to Use Robots to Manage Your Money

We’re trusting robots with more and more these days: Our luggage, our meals—even our lives on the road. Why not add finances to the list? Bank of America is joining several other banks that want to do just that.

Bloomberg Business reports that Bank of America wants to use algorithms that provide customers with investment advice online or on mobile apps, with no human involvement. Next year, the financial institution wants to roll out an “automated investment prototype,” offering algorithmic advising for accounts less than $250,000.

Entrusting your hard-earned cash to anyone—or anything—is pretty unnerving. What’s even more wild is that BofA isn’t alone in the pursuit for human-free financial advising: Wells Fargo and Morgan Stanley have also said they’re interested in such prototypes. Higher-ups at these banks may be betting that wired young people won’t bat an eye at letting a possibly person-less, cloud-connected system take care of all moolah matters.

What’s even wilder is how quickly “robo advising” is growing. In 2012, it was practically nothing, but by the end of 2016, over $300 billion in assets could be managed by autonomous advisers. By 2020? It could rocket to $2.2 trillion, consulting firm A.T. Kearney projected in June.

Read on.

US Taxpayer Set To Bank-Roll Biggest Billionaire Builders

Zerohedge:

Who do billionaires turn to when they want to buy apartment complexes? The U.S. taxpayer. Bloomberg explains…

Barry Sternlicht’s Starwood Capital Group and Stephen Schwarzman’s Blackstone Group LP are in talks with Freddie Mac to finance two transactions totaling more than $10 billion, according to people with knowledge of the negotiations. Those discussions come after the government-owned mortgage giant already agreed to back Lone Star Funds’ $7.6 billion deal to buy Home Properties Inc. and Brookfield Asset Management Inc.’s $2.5 billion takeover of Associated Estates Realty Corp.

The mortgage guarantor — which along with its larger counterpart Fannie Mae was rescued in a $187.5 billion taxpayer bailout in 2008 — is boosting its multifamily lending as their regulator eases restrictions on that part of their business. Cheap debt from the U.S.-backed companies is helping sustain a five-year surge in values for apartment buildings and fueling some of the biggest real estate deals since the financial crisis.

“They wield a very big stick,” said John Levy, a principal at a real estate investment banking firm in Richmond, Virginia, that bears his name. “It takes more time and it’s going to be more expensive” to get transactions done without the two companies, which can lend at rock-bottom rates because their deals have implicit government backing.

Bank of America nearing halfway mark in $7 billion consumer relief effort

Bank of America (BAC) is nearing the halfway point in delivering on its $7 billion promise of consumer relief required as part of its $16.65 billion settlement with theU.S. Department of Justice, certain federal agencies and six states to resolve claims over toxic residential mortgage-backed securities, collateralized debt obligations and an origination release on residential mortgage loans sold to Fannie Mae and Freddie Mac.

According to a report from Eric Green, the independent monitor of the settlement agreement, Green conditionally approved $2,148,067,798 worth of credit for consumer relief in the second quarter of 2015.

Read on.