Daily Archives: July 18, 2016

Here’s The Full Text Of The 2016 Republican Platform

Borrowers love Wells Fargo’s 3% down program

About a month ago, Wells Fargo announced that it now offers a down payment of as little as 3% for fixed-rate mortgages, answering calls in the industry to expand the credit box.

This new program, yourFirstMortgage, quickly became popular among first-time buyers.

“In addition, we launched yourFirstMortgage, a new home loan program to help more qualified first-time homebuyers and low- to moderate-income consumers become homeowners,” Wells Fargo shared on its earnings call on Friday. “Early reaction to this program has been positive with over $1 billion of applications in the first 30 days.”

Wells Fargo reported on Friday that applications increased to $95 billion for the second quarter of 2016.

Read on.

Client Alert: From the Scheer Law Group: Servicer Claims for Mishandling Loan Modifications are Held to be the Obligations of the Lender

Client Alert: From the Scheer Law Group: Servicer Claims for Mishandling Loan Modifications are Held to be the Obligations of the Lender

To All SLG Clients and Affiliates.
From: Spencer Scheer
Date: July 7, 2016
Subject:  Client Alert: From the Scheer Law Group

Court are upholding Negligence Claims against Servicers for Mishandling Loan Modification Applications and holding that the Lender/Investor can be liable under agency Principles.

A California appellate court has held that borrowers can assert claims for both misrepresentation and negligent loan administration against a loan servicer and against an indenture trustee (lender/investor), as the servicer’s principal, resulting from allegedly mishandling a loan modification application  (See Daniels v. Select Portfolio Servicing, Inc., 246 Cal. App. 4th 1150, 201 Cal. Rptr. 3d 390 (2016)).

There is currently a split of authority under California law on whether there is a duty of care imposed by law on a servicer handling a loan modification application. The trend as evidenced by the Daniels case appears to be in favor of finding a duty of care under the law and  permitting the borrower to assert a negligence claim against the loan servicer for mishandling the modification process (Note: There is contrary authority). What should concern all lender/investors is that the Court in this case allowed claims against the lender/investor for acts of the servicer, for both the negligence and intentional misrepresentation claims, based on agency theories.

Read on.

Homeowners say foreclosure firm failed them

Brooklyn lawyer says he helped save people’s homes

Just five years out of law school, Gennady Litvin ran a bustling legal practice that took in millions of dollars from distressed homeowners who hoped they could avoid foreclosure.

The Litvin Law Firm grossed $5.2 million in 2013, much of it from financially strapped clients who paid $500 a month or more for help negotiating lower mortgage rates or other legal assistance to keep them from losing their homes. That year, Litvin drew a salary of $466,477, according to court filings.

But the Brooklyn, New York, law firm’s fortunes soured as it faced repeated accusations of fraud and other illegal conduct in complaints filed by state regulators and disgruntled clients, some of whom were low-income and minority homeowners who lost their property after trusting the firm. In March and April 2015, Litvin and the firm both filed for bankruptcy, leaving more than 4,500 potential creditors, mostly former clients.

“There was a ton of money that he made and where that money has gone, we don’t know,” said Cleveland lawyer Geoff McCarell.

Read on.

GOP platform pushes for big-bank breakup, return of Glass-Steagall

hahamouse

lol! I wonder what Sen. Warren and Sen. Sanders have to say on this since GOP Congress and Senators have been trying many times to dismantle the Dodd-Frank bill and the bank lobbyists have been lobbying against the Glass-Steagall. And now their platform pushed to break up the banks??? Don’t buy the beans, folks! The GOP party are going after votes, not the banks!

The Republican Party is going after the big banks.

As the GOP convention gets under way in Cleveland, a top adviser to presumptive nominee Donald Trump said the party wants to revive the Glass-Steagall Act, Depression-era legislation that helped prevent big bank “supermarkets” but which was repealed in 1999.

Critics of the banking industry believe the repeal created too-big-to-fail institutions that required a massive government bailout when the financial crisis exploded in 2008. The repeal often is cited as a cause of the crisis, even though two of the investment banks at the core of the crisis, Lehman Brothers and Bear Stearns, were unaffected by the act’s prohibition of combining investment and commercial banks.

“We believe the Obama-Clinton years have passed legislation that has been favorable to the big banks, which is why you see all the Wall Street money going to her,” Trump campaign manger Paul Manafort told reporters, according to an account in The Hill. “We are supporting the small banks and Main Street.”

Read on.

Chiefs of 5 public colleges paid more than $1M, study finds

Now this is insane…

BOSTON (AP) — Pay for public college presidents continued to climb in 2015, and a growing number of chiefs topped the $1 million mark, according to results from a new study.

The median total pay for public university presidents reached $431,000 in the 2015 fiscal year, an increase of 4.3 percent over the year before, according to an annual survey by The Chronicle of Higher Education. Five presidents were paid packages of more than $1 million, up from two presidents in the previous year and three in 2013.

Topping the list was Renu Khator, who was paid $1.3 million to serve as both chancellor of the University of Houston system and president of its Houston campus.

She was followed by Michael Gottfredson, former president of the University of Oregon; Michael Young, president of Texas A&M University’s flagship campus; William McRaven, chancellor of the University of Texas system and a retired United States Navy admiral; and Mark Becker, president of Georgia State University.

The pay for Gottfredson, who resigned in 2014, includes a $940,000 severance package. Young and McRaven started their jobs in 2015, and their pay reflects the portions of the year that they worked. Officials at the University of Houston say that both Young and McRaven will surpass Khator in pay during the current fiscal year.

“I can say unequivocally that Chancellor Khator’s salary is appropriate based on her stellar track record and the achievements she has helped the UH system and the University of Houston obtain,” Tilman Fertitta, chairman of the University of Houston’s board of regents, wrote in a letter in response to the Chronicle survey.

But critics question whether colleges should be raising pay for their presidents at a time when schools face increasing pressure to rein in costs.

Read on.

Low bar: How lawyers profit off desperate homeowners

And this should get media coverage. And the lawyers that do participate on profiting off of struggling and desperate homeowners should be reported to the bar association and have their licenses suspended or revoked.

Foreclosure relief scams bilk millions, often targeting minorities

In 2012, after a heart attack left him too ill to work and unable to make his mortgage payments on time, John M. Green turned to the Litvin Law Firm for help.

Green said he paid the firm some $8,000 over the next two years to negotiate better terms with the lender on his house in Baker, Louisiana. But he lost the home anyway, he says, because the Brooklyn, New York, law firm did little beyond taking his money.

“My experience was horrible,” said Green, 72, who is back at work part-time as a school teacher. “They didn’t follow through with anything they said they were going to do.”

It’s not just former Litvin clients like Green who are aggrieved. The attorneys general of New York and Maryland have accused the firm of preying on distressed homeowners by failing to deliver the legal firepower it promised.

People deeply in arrears on their mortgages wasted money they could ill afford to lose, while dozens lost their homes, Maryland officials charged. The case, filed in 2014, targets the firm and its founder, attorney Gennady Litvin. Both state proceedings are pending.

Litvin would not comment.

Since 2010, tens of thousands of strapped homeowners have alleged they were cheated by lawyers or marketers boasting ties to law firms, whom they trusted to renegotiate mortgage loans or stave off foreclosure actions, a Center for Public Integrity investigation found.

Read on.