Daily Archives: November 10, 2015

The LM Funding Business Model- Homeowners Association Liens And Foreclosure….Gone Public With the SEC!

There’s far more predatory and vulturous behavior in the foreclosure world…and it’s not just banks.

Read (from a prospectus filed with the Securities and Exchange Commission) about how a high flying finance organization is aggregating homeowner’s association foreclosures….

From The Prospectus:

As of June 30, 2015, we have, since our inception, purchased an aggregate of approximately $274 million in Association receivables by funding a total of approximately $11 million with respect to 11,000 units across nearly 500 Associations in Florida, Washington and Colorado. Through June 30, 2015, we have, since our inception, received just over $102 million from approximately $192 million in purchased Accounts. From these purchased Accounts, we have recovered almost all of our principal investment of $8 million and earned about $29 million in revenues. Per our contracts, we have paid or recovered $10 million in legal fees and returned $55 million to our funded Associations.

Our original product relies upon Florida statutory provisions that effectively protect the principal amount invested by us in each Account. In particular, Section 718.116(1), Florida Statutes, makes purchasers and sellers of a unit in an Association jointly and severally liable for all past due assessments, interest, late fees, legal fees, and costs payable to the Association. In addition, the statute grants to Associations a so-called “super lien”, which is a category of lien that is given a statutorily higher priority than all other types of liens other than property tax liens. Under the Florida statute, a Florida Association’s super lien has higher priority than all other lien holders, except in the case of property tax liens. The amount of the Association’s priority over a first mortgage holder that takes title to a property through foreclosure (or deed in lieu), referred to as the Super Lien Amount, is limited to twelve months’ past due assessments or, if less, one percent (1.0%) of the original mortgage amount. Under our contracts with Associations for our original product, we pay Associations an amount up to the Super Lien Amount for the right to receive the funded Super Lien Amount and all collected interest and late fees on Accounts purchased from the Associations.

The Full Prospectus Here

This is just crazy

Source: Matt Weidner law blog

The Dog Ate My Vote: How Congress Explains Its Absences


It’s customary for members of the House of Representatives to file an explanation when they miss a vote. These Personal Explanations are a glimpse into the pace and trade-offs inherent in modern government.

On a Monday afternoon in October 2011, West Virginia Democrat Nick J. Rahall II waited at the Charleston airport for a 4:50 p.m. U.S. Airways Express flight to Washington. If the plane left on schedule, the roughly 80-minute flight would allow him to get to the Capitol in time for votes in the House of Representatives that evening.

Things did not go according to plan. The flight didn’t leave Charleston for another four hours, giving Rahall, then the top Democrat on the House Transportation & Infrastructure Committee, plenty of time to “boil over,” as he later wrote. When he finally arrived in Washington, having missed three votes, he lambasted the airline’s handling of the delay in a statement in the Congressional Record:

“At moments, the arrival/departure information was so confused that the airplane would have had to violate the laws of physics in order to abide by the airline schedule,” Rahall’s statementread. “Needless to say, all passengers were inconvenienced and the airline’s explanations were wholly unsatisfactory. This flight delay prevented me from carrying out my Constitutional duty to represent the people of southern West Virginia: I feel I owe them and this body an explanation about why that was not possible last night.”

Voting is one of the most important duties of a lawmaker, and most miss very few votes. Yet voting attendance has become a topic of discussion in the Republican presidential primary, as Florida Sen. Marco Rubio has missed about a third of all votes this year, by far the most in that chamber.

In the House, unlike the Senate, lawmakers are given a chance to provide “Personal Explanations” to explain missed votes. These entries filed in the Congressional Record say not only how a Representative came to be absent, but also how they would have voted though they don’t have the effect of adding or changing a vote.

The custom has been in place since at least 1845, according to a 2008 Congressional Research Service report.

In a telephone interview, Rahall said he wanted it on the record that he would have voted in support of the three bills the House considered that day — a measure to convey federal land in Utah to the state, another changing the rules for granting ski area permits on national forest land and a third granting submerged land surrounding the Northern Mariana Islands to the American territory — if only to prevent political opponents from using the missed votes against him.

“They could end up as a 30-second sound bite in a campaign,” he said. (Rahall was defeated in 2014 by Evan Jenkins, a Republican).

ProPublica has collected all of the Personal Explanations filed since 2007 — some 5,058 in all, covering 21,176 votes — and created a database that lets readers look up their representatives’ missed votes, as well as their explanations. These statements are by no means required — only one in six absences are explained — but they document a little-discussed aspect of the lives and work of lawmakers, and provide hints at the competing priorities and difficulties of a system that, to many, seems chronically dysfunctional.

The reasons lawmakers cite most for missing votes range from the mundane (travel delays, often due to weather, or remaining in their districts for job fairs) to more personal (the birth of a child or a graduation ceremony or illness). Lawmakers have missed more than 2,000 votes for medical reasons, and thousands more for personal and family reasons.

Read on.

Deutsche Bank will pay Billings man $2 million for ‘mistaken’ foreclosure

A District Court jury has awarded a Billings man just over $2 million in his action against a bank that foreclosed on and sold a house that he and his wife had purchased outright for cash two years earlier.

After a four-day trial in the court of Yellowstone County District Judge Ingrid Gustafson last week, the jury unanimously awarded Jason Norman $350,000 in lost profitability, $100,000 for emotional distress and $1.6 million in punitive damages against Deutsche Bank National Trust Co, reports Last Best News.

Also named as defendants were Ocwen Loan Servicing, which handled the sale of the Normans’ house, and MOM Haven 6 LLP, the company to which the house was sold.

In 2010, Jason and Liz Norman moved back to Billings, Jason’s hometown, from Austin, Texas, where they’d spent 15 years.

Read on.

Homeowners say houses were emptied before being foreclosed


Many Americans have stories to tell about losing their homes to foreclosure. Channel 9 found out that some homeowners who haven’t yet been foreclosed have come home to find all their belongings gone.

“It was a crime because no one had permission to take those items from the house,” homeowner Bill Gullbrandson said.

Gullbrandson was in the early stages of foreclosure on his Wildwood home.

The house was still in his name when he said he walked inside and found that his belongings had been taken.

“How much did they take off with?” Channel 9’s Jamie Holmes asked.

“Approximately $6,000 worth of new furnishings and appliances that had been placed in the house,” said Gullbrandson.

The same thing happened to Jonathan Axtell.

In both cases, the men’s attorney claims that the items were taken by a clean-out company hired by the bank to secure the property.

– See more at: http://www.wftv.com/news/news/local/homeowners-say-houses-emptied-out-being-foreclosed/npKhk/#sthash.1HUQ93Tw.dpuf

Stoltmann Law Offices Investigates Marcus J. Debaise and Wells Fargo Advisors

Chicago, IL, Nov 09, 2015 (GLOBE NEWSWIRE via COMTEX) —

CHICAGO– Stoltmann Law Offices announces it is investigating former Wells Fargo and Wachovia Securities financial adviser Marcus J. Debaise (CRD# 2404266) of Glastonbury, Connecticut. Debaise may have over-concentrated and failed to diversify the portfolio of retirees in a variety of equity investments. These investments include, but are not limited to, MFC Corp., KHD Wedag International, Compton Petroleum Corp., Niko Resources, Ltd., Presstek Inc., Essex Rental Corp., Fusion-IO Inc., GMX Resources, Inc., Amarin Corporation PCL, Bankers Petroleum, Xtreme Drilling & Coil, Myriad PhArmaceuticals, FAB Universal Corp, Dendreon Corp., Galleon Energy, Inc., ATP Oil & Gas, China Mediaexpress Holdings, Aviat Networks, Inc., Dryships, Inc., Turnkey E&P Inc., TESCO, Walter Energy, National Oilwell, Varco, Inc., Carrington Labs, Inc., Regis Corp Minn, Talisman Energy, Inc., Mosaic Company, Carrizo Oil & Gas, Petrohawk Energy Corp., United Therepeutics Corp., Black Diamond, Inc., Orient Express Hotels Ltd – A, Bioenvision Inc., Liveperson, Inc., DVI, Inc., Harris Stratex Networks, ICJ Medical, Inc., CV Therapeutics, and Middleby Corporation. Marcus Debaise is now subject to 17 customer disputes since 2011, many of which relate to the over-concentration of investor portfolios in equities.
According to Chicago securities fraud attorney Andrew Stoltmann “Brokers are required to make suitable investment recommendations to clients consistent with their financial resources, actual investment objectives and risk tolerance. Failure to do so can make the brokerage firm liable for some, or all, of the damages sustained by the investor.”

Read on.

Las Vegas man says mortgage firm, Bank of America defrauded him

Michael Bondi is no stranger to foreclosures. He’s a real estate broker in town and has even appeared on HGTV’s “House Hunters Las Vegas” reality show.

But after about a decade of guiding clients through the home ownership and bank repossession processes, he’s found himself in a foreclosure nightmare of his own that has snowballed into him filing a federal lawsuit against Bank of America and Nationstar Mortgage on claims of fraud and violations of credit and debt laws.

Bondi is seeking $1 million in damages plus attorney fees.

Read on.

Former CA Gov candidate, former Treasury Bailout chief and PIMCO ‘equity’ portoflio manager Neel Kashkari has been selected as Minneapolis Fed’s next president

Goldman Sachs -> Treasury -> PIMCO -> The Fed

He just can’t get Wall Street out of his system…

As The Wall Street Journal reports,

The Federal Reserve Bank of Minneapolis has named former banker, government official and unsuccessful California gubernatorial candidate Neel Kashkari to become its new president and chief executive officer.

He’ll succeed Narayana Kocherlakota, who leaves office at the end of the year. Mr. Kashkari, 42, is slated to take office on Jan. 1, 2016, the bank plans to announce Tuesday.

Mr. Kashkari’s views on central bank interest-rate policy are not publicly known. He’s not an economist, beginning his career as an aerospace engineer working on space missions before earning an M.B.A. at the University of Pennsylvania’s Wharton School. He’s an alumni of investment bank Goldman Sachs and investment fund Pacific Investment Management Co., or Pimco.

Mr. Kashkari rose to public prominence as a member of President George W. Bush’s administration by running the government’s $700 billion Troubled Asset Relief Program—a controversial effort aimed at stabilizing the financial system by pumping capital into banks during the 2008 financial crisis. Critics called the program an improper intrusion by the government into private enterprise and an unfair bailout of big banks.

Mr. Kashkari—taking a job that paid $339,000 a year, according to the Fed’s most recent annual report—said in an interview with the Wall Street Journal that his diverse resume provides a critical foundation for his new role. He also offered broad praise for how the Fed has conducted policy, even as he declined to offer his views about the monetary policy outlook.

The Fed’s regional banks “can be and should be some of the most important economic policy thought leaders in the country,” Mr. Kashkari said in the interview. He sees his new job as “a continuation of a lot of the policy work I’ve already done” in government and the private sector. He said he also sees the regional Fed banks as an antidote to the “group-think” that can take hold of Washington-based policy makers.

But who will forget his appearance at Congress…

“I’m just wondering how you feel about an AIG giving $503 million worth of bonuses on the one hand, and accepting $154 billion from hard-working taxpayers,” Cummings asked Kashkari.

“What really bothers me is all these other people who are lining up. They say, well, is Kashkari a chump?”