Daily Archives: March 1, 2016

NY court allows fraud claim against Trump University to proceed

NEW YORK (Reuters) – A fraud claim against Trump University by New York’s attorney general can proceed following a state appeals court’s ruling on Tuesday, days after Republican presidential front-runner Donald Trump defended his for-profit education program on the campaign trail.

The decision by the court in Manhattan could make it easier to find the Trump venture liable for fraud because the civil claim does not require proof of intent, according to a spokesman for state Attorney General Eric Schneiderman.

The court ruled on a lawsuit filed in 2013 by Schneiderman accusing Trump and his program of misleading thousands of people nationwide who paid as much as $35,000 to learn the billionaire businessman’s real estate investment strategies.

Read on.

Meanwhile in the Trump lawsuit in San Diego proceeds where Trump may testify in court. Click here to see the complete witness list from the plaintiffs and here to see the complete witness list from the defense. (Art)Cohen v. Trump is a nationwide class action lawsuit; the other lawsuit, Makaeff v. Trump, is a class action in California, Florida and New York. In the Cohen case, a required conference to try to settle the case is set for March 29. In the Makaeff case, a final pretrial conference is set for May 6. On a side note: Trump is also listed as a witness for the plaintiff.
Source: http://www.nbcsandiego.com/news/local/Donald-Trump-on-Witness-List-for-Class-Action-Lawsuit-May-Testify-in-San-Diego-370159811.html#ixzz41h54fr1Z

Click here to read more about the lawsuit and see the court documents.

Source: http://www.nbcsandiego.com/news/local/Donald-Trump-on-Witness-List-for-Class-Action-Lawsuit-May-Testify-in-San-Diego-370159811.html#ixzz41h7BQqJ9

California Supreme Court Opens Door For Wrongful Foreclosure Lawsuits and Challenges to Transfers of Mortgages: Practical Implications and Options Moving Forward

It’s about time!

In Yvanova v. New Century Mortgage Corporation et al, the Supreme Court of California reversed the Court of Appeal’s ruling, and held that a borrower plaintiff who has been subject to a nonjudicial foreclosure has standing to bring an action for wrongful foreclosure based on an allegedly void deed of trust assignment (without making any determination as to whether the alleged facts established a void assignment).  In so doing, the Supreme Court came down solidly in favor of the “aggrieved” borrower thus settling, at least in California and likely other non-judicial foreclosure states, the issue regarding the standing of such a plaintiff to challenge the acts of a securitization trust.  Since the financial crisis there have been several cases considering the standing issue, most notably the California Court of Appeal decisions in Glaski  v. Bank of America, N. A. (2011) 198 Cal. App. 4th 256 (holding the plaintiff had standing to challenge the authority of the beneficiary to foreclose) and Jenkins v. JP Morgan Chase Bank, N.A. (2013) 216 Cal. App. 4th 497 (holding the plaintiff had no standing to enforce the terms of the agreements allegedly violated).  The Supreme Court stated “On the narrow question before us – whether a wrongful foreclosure plaintiff may challenge an assignment to the foreclosing entity as void- we conclude Glaski provides a more logical answer than Jenkins.”

The Yvanova case has a particularly bad fact pattern where the deed of trust was executed in 2006 together with an assignment of mortgage or deed of trust “in blank”, or without filling in the name of the assignee of the deed of trust and recording the assignment.  New Century, the lender and beneficiary on the deed of trust, filed for bankruptcy on April 2, 2007 and on August 1, 2008 was liquidated and its assets were transferred to a liquidation trust.  Prior to that time, the mortgage was sold to a securitization trust – MSAC-2007 Trust-HE-1 Pass Thru Certificates.  Ocwen Loan Servicing LLC, as attorney in fact for New Century, completed the assignment of mortgage on December 19, 2011, and the assignment was recorded on December 30, 2011.  Although not deciding on the issue of whether the assignment was “void” and not merely “voidable”, the Court noted that New Century no longer existed when the assignment of mortgage was “completed”.  The foreclosure occurred in September 2012.

– See more at: http://www.natlawreview.com/article/california-supreme-court-opens-door-wrongful-foreclosure-lawsuits-and-challenges-to#sthash.0VJ760pC.dpuf

Fired FX Trader’s Fight With Citigroup Nets Him $82,000

Former Citigroup Inc. currency trader Perry Stimpson was awarded 58,774 pounds ($82,000), less than half his annual salary, after winning a lawsuit claiming he was unfairly fired during an investigation into allegations of market rigging.

The London court refused to give Stimpson, a 25-year veteran of the bank, his job back in a ruling Tuesday. That decision closed the door on a potentially larger severance payment if the lender decided to fire him a second time.

“I do not accept that the claimant has a genuine desire to work at the bank, this is a tactical position connected with a compensatory award,” Judge Alison Russell said during the hearing. Despite winning the suit, Stimpson was guilty of “foolish and contributory conduct,”she said.

Read on.

Mortgage-service giant Ocwen hit with another SEC probe

The bad boys of mortgage service are again making headlines — and for all the wrong reasons.

Ocwen Financial is again being probed by regulators over fees and expenses related to liquidated loans and bank-foreclosed properties, the company said in a regulatory filing on Monday.

The Securities and Exchange Commission sent a letter to Ocwen on Feb. 11 about the probe, asking the company to “voluntarily produce documents and information,” it said.

Read on.

Win For Affordable Housing As SCOTUS Passes On Calif. Case

SFGate:

Advocates of low-cost housing scored a legal victory Monday when the U.S. Supreme Court left intact a ruling by California’s highest court allowing cities and counties to require builders to include a percentage of affordable units in each new development.

The building industry had argued that those requirements amount to a government confiscation of property and should be allowed only if a particular development would cause a shortage of affordable housing. The state Supreme Court rejected those arguments unanimously in June, and the nation’s high court denied review Monday.

The case involved a San Jose ordinance, passed in 2010 but not yet in effect, that requires developers of 20 or more units to make at least 15 percent of those units affordable to low- or moderate-income buyers and renters.

Jamie Dimon to Wells Fargo: Go ahead, make my day

It sounds like Jamie Dimon has been brushing up on his Sun Tzu. TheJPMorgan boss appears to be goading one of his biggest rivals into the perilous terrain of global investment banking. He suggested in an interview with Bloomberg that, if Wells Fargo wants to compete internationally, it’ll have to buy a Wall Street franchise. That would recklessly push the otherwise boring lender led by John Stumpf deeper into businesses it doesn’t know well.

Read on.

And interesting comment on CNBC blogger:

  • I worked with both banks dealing with international business.

    It’s hard to tell which is worse.

    Wells and JPMORGAN couldn’t handle domestic mortgage lending without resorting to fraud. Their international business skills are laughable.

Krawcheck Joins Board of Blythe Masters’s Blockchain Startup

Former Citigroup Inc. and Bank of America Corp. executive Sallie Krawcheck has joined the board of Digital Asset Holdings Inc., the startup run by Blythe Masters that hopes to revolutionize how financial transactions are processed.

The development brings together two of Wall Street’s highest-profile women. Krawcheck, who was previously head of wealth management and chief financial officer at Citigroup and later ran wealth management for Bank of America, currently serves as chief executive officer of Ellevest, a yet-to-open service aimed at helping women invest. Masters, Digital Asset’s CEO, once ran JPMorgan Chase & Co.’s commodities business and helped invent credit-default swaps.

Read on.