Daily Archives: April 17, 2016

Non-bank servicers creating bigger mortgage problems

The government and Congress have been asleep at the wheel as usual of the rise of non-banks in the financial world. Big banks were clever to sell off their mortgage servicing rights of non-performing loans little by little to the non-banks such as Ocwen, Nationstar, and other non-banks. And government sold off their non-performing loans to the non-banks because the big banks refused them. What the big banks know and the government will soon realize that the Dodd-Frank bill doesn’t have tight regulations for the non-banks but only the large banks. The bill doesn’t go as far to regulate the non-banks but only the big banks. The government agency that has tight regulations for non-banks is CFPB. Both the big banks and the government have been made the non-banks much bigger which will create much bigger mortgage problems.

It’s hard to find a more sympathetic foreclosure story than Kathleen Conrad’s.

The disabled widow of a Marine who served in Vietnam, Conrad, 66, lives in a rundown Westchester house the couple bought in 1999, realizing their modest version of the America dream.

But after her husband died in 2004, Conrad faced larger-than-expected cuts to her widow’s benefits. During the 2007 housing market boom, she took out a second mortgage from GMAC. In 2013, Conrad fell behind on payments and was contacted by her loan’s new owner, Infinite Customer Systems and the strong-arm tactics began to get Conrad out of the home.

Unlike big banks, non-bank servicers like Infinite are not bound by even the modest consumer protections built into the National Mortgage Settlement (NMS) of 2012.

Non-bank servicers are taking a page from their predecessors’ playbooks. Sources say that many of the same old problems the NMS partially sought to address are back with the nonbank servicers, including long delays in reviewing loan modifications and wrongful denials of loan modification requests.

Read on.

Panama Papers Fallout: US Treasury Plans Rules Aimed At Tax-Evading Shell Companies

The U.S. Treasury department is preparing new rules to counter the use of shell companies to evade taxes, U.S. Treasury Secretary Jack Lew said Saturday. Lew made the statement to the International Monetary Fund’s (IMF) steering committee amid increased scrutiny by global watchdogs in the wake of the Panama Papers leak.

The U.S. Treasury is close to releasing a rule that would require banks to identify if any of the beneficial owners of new customers are companies, Lew said.

Read on.

Inside Panama Papers: Multiple Clinton connections, Clinton criticized those exposed in the Panama Papers

This will certainly be used as a political football in the Presidential race..


Some donors to Clinton foundation used the Panamanian law firm for offshores

Connections come from the more than 40 years Bill and Hillary Clinton have spent in public life

Clinton criticized those exposed in the Panama Papers, some looking to hide their wealth

All Pakistanis named in Panama Papers face probe

ISLAMABAD: The government has decided to investigate all Pakistanis named in the Panama Papers through a judicial commission headed by a retired judge, rebuffing the opposition’s demand for a probe into the scandal through a serving judge.

On Thursday, Finance Minister Ishaq Dar after a marathon huddle with senior leaders of the ruling party finalised the government’s strategy with three major components: legal, political and administrative measures, to deal with the mounting pressure.

The government has been under tremendous pressure since the Panama Papers revealed the names of around 220 Pakistanis, including Prime Minister Nawaz Sharif’s immediate family members, keeping offshore accounts in international tax havens.

Read on.

Billion Dollar Lawsuits Filed Following Deutsche Bank’s Admission Of Gold, Silver Rigging


Overnight, two class action lawsuits seeking $1 billion in damages on behalf of Canadian gold and silver investors were launched in the Ontario Superior Court of Justice.

The first class action alleges that the defendants, including The Bank of Nova Scotia, conspired to manipulate prices in the silver market under the guise of the benchmark fixing process, known as the London Silver Fixing, for a fifteen-year period.

More from the suit:


It is further alleged that the defendants manipulated the bid-ask spreads of silver market instruments throughout the trading day in order to enhance their profits at the expense of the class. This alleged conduct affected not only those investors who bought and sold physical silver, but those who bought and sold silver-related financial instruments.


Law enforcement and regulatory authorities in the United States, Switzerland, and the United Kingdom have active investigations into the defendants’ conduct in the precious metals market.


The case is on behalf of all persons in Canada who, between January 1, 1999 and August 14, 2014, transacted in a silver market instrument either directly or indirectly, including investors who participated in an investment or equity fund, mutual fund, hedge fund, pension fund or any other investment vehicle that transacted in a silver market instrument.


A copy of the Notice of Action can be found at sotosllp.com. Potential class members can register on the website to obtain more information as the case progresses.


The plaintiffs and the proposed national class are being represented by a national team of lawyers from Sotos LLP (www.sotosllp.com), Koskie Minsky LLP (www.kmlaw.ca) and Camp Fiorante Matthews Mogerman (www.cfmlawyers.ca) with offices in Ontario and British Columbia.

An identical class action lawsuit was also launched for gold manipulation.