Daily Archives: February 1, 2016

West Virginia Woman Sues Wells Fargo Over Alleged Home Loan Modification Misrepresentations

When you’re going through the often-tedious process of refinancing your mortgage, getting some bad information can only serve to make things worse. That’s why a West Virginia woman is suing Wells Fargo, alleging that the bank told her to stop making loan payments then put her into collections and foreclosure.

According to the complaint [PDF], filed in a federal court in West Virginia, the homeowner took out her loan through Wells Fargo Home Mortgage in 2006.

In early 2015, she contacted the company about modifying her loan. At that point, a rep for Wells Fargo Home Mortgage instructed her not to make payments while the modification was being processed.

Relying on the information from the rep, the woman stopped payment, while providing all necessary paperwork for the modification.

In June 2015, Wells Fargo re-sent the woman a packet requesting duplicate documents. The following month, the woman says she began receiving debt collection calls.

Read on.

First Tennessee Bank reaches $1.9 million settlement over discriminatory lending

For the second time in just over six months, First Tennessee Bank, the regional bank for First Horizon National, is settling with the federal government over allegations that it violated U.S. lending laws.

In June 2015, First Tennessee Bank agreed to pay $212.5 million to resolve allegations that it violated the False Claims Act by “knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration that did not meet applicable requirements.”

That settlement resolved allegations that First Tennessee failed to comply with FHA origination, underwriting and quality control requirements.

As part of the settlement, First Tennessee admitted that from January 2006 through October 2008, it “repeatedly certified” for FHA insurance mortgage loans that did not meet the Department of Housing and Urban Development’s underwriting requirements.

Read on.

The Bank Whistleblowers United Campaign Funding Plan: Say “No” to Contributions from Financial Felons

New Economic Perspectives:

In order to restore the rule of law, we ask every candidate for the nomination of their party for the presidency to pledge that they will not take contributions from any financial firm (or contributions above $250 from their officers) that the United States or its agencies have, after investigation, charged with committing the legal elements of fraud.  That list includes virtually all of the largest banks in the U.S. and Europe and Freddie and Fannie.  Indeed, most of these financial giants have admitted that they conducted massive frauds.


The Bank Whistleblowers United – Who are We, and Why are We Trying to Help Implement Real Banking Reform?

At this time (January 29, 2016), we consist of four founding members:

Gary Aguirre
William Black
Richard Bowen
Michael Winston

Our bios are listed at the end of this post.  We share a number of common experiences.  They explain why we came together to try to implement real reform.  Continue reading

Trader exposes sexist horrors of the Wall Street ‘frat house’

When Maureen Sherry resigned from Bear Stearns after 10 years, she was given a going-away party, a sizable check — and a nondisclosure agreement.

“The legal department gave me this document to sign,” she says, and the money was a bribe: Don’t ever talk about the things you’ve seen here, or the way you were harassed, dehumanized, humiliated.

Sherry refused to sign and declined the check. “Me taking money,” she says, “wouldn’t help anyone coming up after me.”

Her forthcoming novel, “Opening Belle” (Simon & Schuster), a thinly fictionalized account of her 11 years on Wall Street, is the result.

She also interviewed young female traders working on the Street today, and found not much has changed.

For all of the horror stories she tells — the sexual degradation of female traders, the marginalization of women who were married or had kids — Sherry insists she didn’t have it so bad. A colleague may have guzzled her breast milk, and another may have left unwrapped condoms strewn in her pizza box, but, she says, “a lot of it was pranks. I never got groped.”

Read on.