Tag Archives: Mortgage

FDIC may revive three U.S. bank lawsuits over soured mortgage debt

A federal judge granted the FDIC permission to revive lawsuits against Citigroup Inc (>> Citigroup), Bank of New York Mellon Corp (>> Bank of New York Mellon (The)) and U.S. Bancorp (>> US Bancorp) that he had dismissed last September, to recoup more than $695 million of losses on soured mortgage debt that a failed Texas bank once owned.

In a decision made public on Tuesday, U.S. District Judge Andrew Carter in Manhattan said the FDIC could try to show it still had legal standing to sue as the receiver for Austin-based Guaranty Bank, despite having transferred its claims to a “resecuritization trust” when it sold the debt in March 2010.

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Chase is offering 100,000 credit-card rewards points for new mortgage customers

Don’t do it, folks! Dimon is out to make another quick buck! Smells like 2008!

 The bank is trying to make money off millennial Sapphire credit card holders.

This has to be one of the most expensive ways to pick up some credit-card points.

Chase JPM, -0.28%   announced Monday it is offering 100,000 Chase Ultimate Rewards points to its customers who have Sapphire, Sapphire Preferred or Sapphire Reserve credit cards — if they open a mortgage with Chase. The offer will be available through August 6 to customers who had any Chase Sapphire card as of May 7.

Chase’s credit cards have been popular in recent months, particularly the Sapphire Reserve card, which debuted in 2016 and initially offered a 100,000-point sign-up bonus, which was later reduced to 50,000 points. Credit card experts estimate some 900,000 people signed up for that card between September 2016 and November 2016. (Chase has declined to confirm that number.)

As a result, J.P. Morgan chief executive Jamie Dimon said in December the Chase Sapphire Reserve credit card reduced the bank’s profit by $200 million in the fourth quarter, to $300 million. Now, Chase is attempting to capitalize on the young consumers it captured with that card.

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Here’s a snapshot of the CFPB monthly mortgage complaints

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(Source: CFPB)

cfpb

(Source: CFPB)

More from Housingwire. Click here.

Where Does the Mortgage Settlement Money Go?

Since the 2008 housing crisis, federal regulators have touted billion-dollar settlements, which, by giving certainty to investors, are often accompanied by a jump in the bank’s stock price.

Financial companies have paid at least $164 billion in more than 100 mortgage-related settlements since 2009, according to an analysis by Keefe, Bruyette & Woods. Below, we examine the eight banks that have paid the most and explain how the largest payments were divided up.

1. Bank of America: $71.23 billion in 24 settlements

The bank has settled mortgage-related cases with a plethora of federal and state regulators as well as investors from the Justice Department and the State Teachers Retirement System of Ohio. A number of these settlements are tied to Bank of America’s purchase of Countrywide Financial and Merrill Lynch.

In 2014, the bank paid the single largest government settlement by a company in American history: $16.65 billion. Some of this is in the form of “soft money,” or help for borrowers. The bank also gets credit for writing down loan balances. And the pain is significantly reduced by tax deductions.

“The real financial cost to the bank could be considerably lower,” said Laurie Goodman, a specialist in housing at the Urban Institute. “This is helping consumers, but it may not be costing the bank.”

Settling for $16 Billion, Bank Knows It Will Pay Much Less (Aug. 22, 2014)

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Whistleblower Didn’t Live to See Landmark Allied Mortgage Verdict, Taxpayers Recover $92 Million

In May, 2011, Peter Belli filed a complaint in Boston. With guidance from whistleblower experts at Mahany Law, he accused Allied Home Mortgage Capital Corporation of massive mortgage fraud in a False Claims Act “qui tam” whistleblower lawsuit.

Over five years later, and after a trial that lasted five weeks, a jury found both the corporation and its CEO, Jim Hodge, guilty of knowingly representing to Housing and Urban Development (HUD) that certain loans were properly prepared and eligible for Federal Housing Administration (FHA) insurance, when in fact they were not.

Belli had managed several Allied branches in Massachusetts, Rhode Island, Arizona, and other states. He was thus in an ideal position to observe Allied Capital’s fraudulent practices, and he was determined to bring the scheme to light. Unfortunately, he passed away before the verdict came out only days ago in Texas. The move to a Texas court had been a choice of the defendants.

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Wells Fargo accused of commencing foreclosure without a mortgage

PHILADELPHIA — An individual is suing Wells Fargo U.S. Bank National Association as Trustee for the Structured Asset Investment Loan Trust Loan Trust, 2005-11, and Assurant, Inc., financial institution, citing alleged unjust enrichment.

Michael Earl Davis filed a complaint on Nov. 17, in the U.S. District Court for the Eastern District of Pennsylvania against the defendants alleging that they locked plaintiff out of his property without mortgage assignment.

According to the complaint, the plaintiff alleges that he suffered monetary damages. The plaintiff holds Wells Fargo U.S. Bank National Association as Trustee for the Structured Asset Investment Loan Trust Loan Trust, 2005-11, and Assurant, Inc. responsible because the defendants allegedly commenced a foreclosure action against the plaintiff without a mortgage.

The plaintiff requests a trial by jury and seeks $313,000, punitive damages, compensatory damages, court costs and any further relief this court grants.

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Mortgage mistake nearly leads to foreclosure

A mortgage mistake nearly cost a St. Charles County woman her home. Credit: KMOV

ST. CHARLES COUNTY (KMOV.com) –

A mortgage mistake nearly cost a St. Charles County woman her condo.

Kathleen Rasmussen claims she paid Texas based Nationstar each month.

“I don’t want to lose the roof over my head, I should not be in foreclosure.”

Rasmussen provided News 4 with letters from Nationstar along with returned checks intended to pay her mortgage.

“I don’t understand why they keep sending it back to me.”

A Kansas City law firm representing Nationstar sent Rasmussen a letter saying their office would “commence foreclosure proceedings.”

After trying to resolve the issue on  her own, Rasmussen contacted News 4 Investigates.

“We’re going round and round in circles and we’re not getting anywhere,” she said.

A Nationstar representative followed up with Rasmussen immediately after hearing from News 4. Rasmussen said, “right after that the VP of Nationstar called me and wanted to settle it right away.

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NYDFS reportedly looking into Caliber Home Loans

From the New York Times:

The New York regulator made the request in a letter sent a week ago to Caliber, said the person briefed on the matter. The regulator told Caliber it was investigating multiple complaints from consumers in New York and wanted information related to the firm’s procedures for handling distressed mortgages and foreclosures.

The regulator is also asking for information about mortgages Caliber has begun writing to borrowers who have filed for bankruptcy or been foreclosed on but are repairing their credit histories. Caliber is one of the few mortgage firms that has begun making so-called nonprime loans nearly a decade after the start of the housing bust.

Florida Man Pleads Guilty To Making False Statements In Mortgage Loan

And not one single bank execs gone to jail…

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Stevie McDonald (41, Winter Haven) has pleaded guilty to making false statements in a mortgage loan application. He faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.

According to court documents, on November 10, 2007, McDonald entered into a contract to purchase a home in Port Richey. He then applied for a mortgage loan from Washington Mutual Bank. In the loan documents that he signed and submitted to the bank, McDonald made false statements about his income and his employment. In December 2007, during the course of the closing on the property purchase, Washington Mutual paid more than $35,000 to a woman McDonald knew and later married. This payment was purportedly a satisfaction of an existing lien on the sale property. Subsequent investigation revealed that no such lien existed. Washington Mutual Bank suffered a financial loss as a consequence of McDonald’s default on this loan.

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UBS’ Liability in $2B Mortgage Suit Pruned

MANHATTAN (CN) — This past spring, UBS faced a trial over $2 billion in investor damages related to the 2008 housing crisis, but an order issued Tuesday clears a path for a smaller penalty.
Three trusts represented by U.S. Bancorp have spent for four years trying to hold the Zurich-based UBS liable for breaching warranties on over 12,000 of approximately 17,000 mortgage loans originally pooled.
On the road to trial, the trusts dropped their estimates to more than 9,800 loans that they claimed to be defective, and the case finally went to a bench trial before U.S. District Judge Kevin Castel from April 18 to May 13 this year.
Four UBS managers and traders took the stand along with one of the trust’s executives and experts from both parties. The banks and trustees also submitted two terabytes of data — including thousands of loan files — for the court’s review.
After digesting the enormous record over the summer, Castel issued a 239-page ruling clearing the bank of turning a blind eye toward the loans’ deficiencies.
“The trusts have not established that UBS was willfully blind to widespread breaches of warranties across the loans in the three trusts,” he wrote.
UBS manager Jonathan Lantz testified that the bank had “ceased its surveillance operations around the same time that it wound down its business of structuring and selling [residential mortgage-backed securities] pools,” according to the ruling.
But Castel also found that UBS would have to repurchase or pay damages for 13 out of 20 loans that he examined, described in the ruling as “exemplar loans.”
Thousands of other loans still need to be reviewed.

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