Daily Archives: October 25, 2016

US hints at delay to huge bank fines for mortgage mis-selling

A series of huge fines from US regulators for mis-selling mortgage securities could be delayed until after next month’s presidential election, dealing a blow to Royal Bank of Scotland’s (RBS’s) hopes of finalising a settlement by the end of the year.

Sky News has learnt that Department of Justice (DoJ) representatives have signalled in recent days that the imposition of penalties on Barclays, Credit Suisse and Deutsche Bank may not be concluded until closer to the arrival of the new US administration in January.

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Trustee claims Nationstar Mortgage wrongfully foreclosed on property

SAN FRANCISCO — A special trustee has filed suit against a mortgage company for allegedly wrongfully foreclosing on a property.

3216 Balboa LLC filed a complaint Oct. 5 in U.S. District Court for the Northern District of California against Nationstar Mortgage LLC, alleging that the Texas company breached its duty of good faith and fair dealing.

According to the complaint, the plaintiff alleges that on May 19, 2014, 3216 Balboa LLC’s sole managing member, David Rienhart, was named as a special trustee by his former wife, together with Joanna Cheung, who later quitclaimed all of the trust’s interests in the subject property to the plaintiff for the benefit of his children.

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SEC accuses Wall Street exec of $200 million fraud

NEW YORK – A government lawyer said prominent Wall Street executive Lynn Tilton cheated investors in failing companies of over $200 million and should be banned from the industry.

But her lawyer said the Securities and Exchange Commission has created a laughable fraud case built on revisionist history. The dispute is being aired before an administrative law judge in New York federal court.

SEC senior trial counsel Dugan Bliss said the SEC wants Tilton banned from the securities industry and forced to give up over $200 million.

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Introducing Wells Fargo commitment campaign

Oh please….

Fannie & Freddie Shareholders Want Billions

HOUSTON (CN) — Shareholders have sued the Department of the Treasury and the Federal Housing Finance Agency, claiming their $195 billion “net worth sweep” of Fannie Mae and Freddie Mac in 2012 illegally sent all their dividends to the U.S. Treasury rather than shareholders.
The Federal National Mortgage Association (Fannie Mae), and The Federal Home Loan Mortgage Corporation (Freddie Mac), are government-sponsored private companies that own or guarantee trillions of dollars in U.S. home loans. They buy home loans from banks, freeing up the banks to issue more home loans.
After the financial crisis began in late 2007, as the value of securitized home loans collapsed, Congress in July 2008 passed the Housing and Economic Recovery Act of 2008, under which Fannie and Freddie received a $188 billion government bailout.
The Act also created the Federal Housing Finance Agency and authorized it to appoint itself conservator of the companies, which it did in September 2008.
Lead plaintiff J. Patrick Collins a Freddie Mac stockholder, filed the lawsuit on Oct. 20 in Federal Court.

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