Daily Archives: September 4, 2016

NEW CFPB RULES TO THWART WRONGFUL FORECLOSURES

The Consumer Financial Protection Bureau (CFPB) approved rues on August 5, 2016, to help prevent wrongful home foreclosures.

Mortgage servicers will be required to promptly notify borrowers when loss mitigation applications are complete.  Many mortgage servicers never considered an application complete and repeatedly demanded information and documents that the borrower had already provided.  Many borrowers complained that the servicers often demanded federal income tax returns over and over.  Borrowers were required to make adjusted monthly payments while the applications were pending.  The repeated stalling benefited the banks and servicers.  Many borrowers reported that when their applications were finally refused, the interim payments were never credited to their accounts.  Servicers are also prohibited from dual tracking – pursuing both a modification and a foreclosure simultaneously.

[Read More]

NOVASTAR FINANCIAL FILES FOR BANKRUPTCY

Novation Companies, formerly known as NovaStar Financial, a company that made over $11 billion in mortgage loans that failed at very high rates during the housing crisis, filed for bankruptcy court protection in Baltimore on July 20, 2016.

NovaStar was a major participant in mortgage-backed securities.…[Read More]

The Disaster of American Loan Servicing

From David Dayen at Salon:

It shouldn’t be terribly difficult to accept a monthly loan payment from a homeowner or a student borrower, and to manage day-to-day operations on the loan. This is the job function of a servicer, a company that handles loans on behalf of the ultimate owner, funneling payments through the system and deciding how to manage defaults.

Why this has become the most impossible business in America doesn’t make a lot of sense. But with evidence mounting up, we should acknowledge that servicers either don’t know what they’re doing or can’t turn a profit on their operations without doing so at the expense of their customers. And we must start thinking about alternatives to the current servicing model, which appears to be hopelessly broken.

Read the rest of the article at Salon.

DNC fraud lawsuit update: Judge slams DNC ‘shenanigans’, ordered plaintiffs to serve papers again to move the class lawsuit forward

wasserman schultz sued

From DNC Fraud Lawsuit website:

Judge had advised plaintiffs to serve the papers to the DNC again in order to move the class action lawsuit forward.The  judge chastised the DNC defendants for their “shenanigans” in trying to derail the case.

The court hereby advises Defendant DNC that will not tolerate the conduct in which Defendant DNC engaged in this instance,” Judge Zloch wrote in his order.

The plantiff served the defendant again and have the proof of service to the DNC and Wasserman-Schultz. Papers were served on August 31:

September 2, 2016 41 41 Return of Service for DNC
September 2, 2016 42 42 Return of Service for Debbie Wasserman Schultz
September 2, 2016 43 43 Plaintiffs’ Notice of Filing Proofs of Service

 

How Wall Street’s CEO bonus loophole cost the US government $1bn

Here’s a figure that could have you reaching for an EpiPen, assuming you can afford one: one billion dollars. That’s how much additional revenue the Institute for Policy Studies calculates the federal government might have collected over a four-year period if it weren’t for a pesky loophole that allows US corporations to deduct performance-based compensation from what they have to pay in corporate taxes each year.

The just-released study comes amid the latest example of how basic salary on share price performance leads to bad decisions that have negative effects on society at large: Mylan, the drug company whose decision to hike the price of the lifesaving EpiPen has triggered a sky-high share price and a massive pay day for its CEO, Heather Bresch.

The IPS’s report is the latest in a series devoted to excessive executive compensation and wealth inequality, the research firm takes aim at the loophole as it relates to Wall Street’s banks. The top 20 banks forked over more than $2bn in performance-related bonus payments to each of their top five executives between 2012 and 2015, IPS says.

Read on.

Wall Street Is Whining Yet Again

File this one under “Yes, we almost destroyed the world, but how long are you going to hold that against us?”

Bank trade groups and industry advisers are debating the possibility of legally challenging the Federal Reserve in an attempt to force changes to annual “stress tests” of the biggest U.S. lenders, people familiar with the talks said….The discussions are at an early stage and…have centered on legal

strategies that would allow a challenge to the stress tests, with much of the focus on their opacity and how the Fed changes certain aspects of the exams each year.

….The exams arguably have made banks safer by forcing them to better measure risks they face. They also dictate the amount of capital banks can return to shareholders, in turn influencing returns on equity and share-price valuations….Fed officials have disclosed more in recent years about how the tests work. They have described in more detail the mathematical models used to determine how much money banks would lose under the tests, pointing out changes from year to year.

Read on.

Wells Fargo taking heat over ad that artists call demeaning

 

The new Wells Fargo ads putting down teens working in the arts is getting artists in an uproar.

The text in one ad says,  “A ballerina yesterday. An engineer today.” The other reads, “An actor yesterday. A botanist today.” Both are followed by: “Let’s get them ready for tomorrow.”

Among the latest to weigh in is Marisha Wallace, a Broadway veteran, currently in Rotten Broadway!, who starred in Dreamgirls at Dallas Theater Center through July 24.

Wallace posted on Facebook: “Wells Fargo, I’m pretty sure I’m making more money as an actor than I would as a bank teller at your bank.”

Then she added: “P.S. That’s an actor/model/actress in your ad.”

Read on.