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Nevada Wallops Bank of America

Sun, 29 Apr 2012 12:49:51 +0100

by Paul Kiel

ProPublica, Aug. 30, 2011, 5:46 p.m.

This post has been updated to reflect Bank of America's response.

The state of Nevada dramatically expanded its lawsuit against Bank of America today, turning the narrow case it filed late last year into a broadside that targets virtually all aspects of the bank's mortgage operations. Bank of America has previously denied wrongdoing.The sweeping new suit [1] could have repercussions far beyond Nevada's borders. It further jeopardizes a possible nationwide settlement with the five largest U.S. banks over their foreclosure practices, especially given concerns voiced by other attorneys general, New York's foremost among them. (You can read the suit here [1].)

In a statement, Bank of America spokeswoman Jumana Bauwens said reaching a settlement would bring a better outcome for homeowners than litigation. "We believe that the best way to get the housing market going again in every state is a global settlement that addresses these issues fairly, comprehensively and with finality."

The suit also weakens a separate, 2008 multistate settlement in which Countrywide promised to evaluate troubled homeowners for loan modifications.

Most broadly, Nevada's action signals that the banks' problems with home mortgages—the main cause of the financial crisis—continue to burden them and rattle investors. Bank of America, the nation's largest bank and company that services mortgages, has seen its stock plunge [2] about 40 percent since March, in part because of its mortgage liabilities. Nevada's action won't help.

Nevada's attorney general charges that Bank of America and the now-defunct mortgage giant Countrywide acquired by the bank in 2008, deceived borrowers and investors at almost every stage of the process.

According to the suit, borrowers were duped into unaffordable loans and then victimized again through a misleading mortgage modification program that homeowners tried to use to avoid foreclosure. Finally, the suit alleges, the bank filed fraudulent documents to move forward with the foreclosures.

"Taken together and separately, [Bank of America's] deceptive practices have resulted in an explosionof delinquencies and unauthorized and unnecessary foreclosures in the state of Nevada," the suit alleges.
http://www.propublica.org/article/nevada-slams-bank-of-america-with-sweeping-suit-nation-wide-foreclosure-set

Big states set to make mortgage deal real

Thu, 09 Feb 2012 14:45:48 +0100

By Jennifer Liberto@CNNMoneyFebruary 9, 2012: 8:44 AM ET

Housing Secretary Shaun Donovan is one of the participants in the foreclosure settlement talks that are expected to produce a mortgage settlement soon.

A few other states were still on the fence as of late Wednesday, the person said.

With those two big states, the deal could be worth as much as $26 billion when it is announced Thursday, another person familiar with the talks said.

For more than a year, state attorneys general, regulators, federal officials and big banks have been in talks about a settlement of allegations of improper foreclosures based on "robosigning," seizures made without proper paperwork.

As of Wednesday night, at least 42 had signed on, which would yield as much as $26 billion available for qualified homeowners. The deal marks the largest housing relief available "underwater" homeowners whose principal exceeds their home's value, as well as those who have been foreclosed on, since the financial crisis began.

Obama proposes new home refinancing plan

Under an earlier draft of the deal, some 1 million U.S. homeowners who are underwater on their mortgages could be eligible for as much as $20,000 in relief of principal owed, according to Secretary of Housing and Urban Development Shaun Donovan.

But the relief would only be available to those homeowners whose mortgages haven't been sold to the government-sponsored mortgage guarantors Fannie Mae and Freddie Mac.

In return, mortgage servicers in states that agree to the deal would get immunity from future state servicing and originating claims -- although homeowners could pursue claims against banks and states could still pursue criminal investigations.

New York's participation had been shaky this week, because some of the banks involved in the multi-state deal had also been sued by Attorney General Eric Schneiderman last week. Those banks -- Bank of America (BAC, Fortune 500), Wells Fargo (WFC, Fortune 500), JPMorgan Chase (JPM, Fortune 500) -- had also asked for a legal pass from Schneiderman's lawsuit, which accuses them of deceptive foreclosure practices for relying on the Mortgage Electronic Registration System.

On Tuesday, Schneiderman's office organized a media briefing to talk about the deal and then canceled it minutes before it was supposed to begin.

Requests for comment to the New York Attorney General's Office were not returned. A spokesman from the California Attorney General's Office said the state was still in negotiations.

The deal is supposed to protect consumers when it comes to robosigning, and ensure that mortgage servicers agree to communicate better, avoid delays and give homeowners who are late on mortgage payments a fairer shake.

The big question throughout the negotiations was how much money would be available to help homeowners, which depended on how many states agreed to the deal. If all 50 states sign on, the mortgage servicing settlement has the potential to offer as much as $26 billion. California's participation raises the total settlement value by several billion dollars.

Generally, the attorneys general have been concerned that if they signed on to a deal, it would cripple their own investigations into mortgage cases.

At least one consumer advocacy group, the Center for Responsible Lending, has said the deal -- while "no silver bullet" -- leaves room to hold banks accountable in other mortgage probes, said Kathleen Day, a spokeswoman for the nonprofit.

The negotiations are between federal agencies, including the U.S. Department of Justice and the U.S. Department of Housing and Urban Development, as well as the state attorneys general and the five largest mortgage servicers:Bank of America, Wells Fargo, JPMorgan Chase, Citigroup (C, Fortune 500) and Ally Financial. A few other regional banks that service mortgages are reportedly considering signing on as well.

And left-leaning groups, including Move On and the New Bottom Line, are continuing to urge states to hold out for a big criminal investigation and a $300 billion settlement award.

--CNN's Jessica Yellin contributed to this story.

HUD Launches Emergency Homeowners’ Loan Program

Thu, 14 Jul 2011 12:42:54 +0100

In an effort to help distressed homeowners avoid foreclosure, the U.S. Department of Housing and Urban Development (HUD) and NeighborWorks® America launched the Emergency Homeowners’ Loan Program (EHLP) last month. The deadline for applications is July 22, 2011.

The program will aid Puerto Rico and 27 states, and five states operating substantially similar programs are administering EHLP directly. Between the EHLP and the Hardest Hit Fund, a similar program that provides financial aid to 18 states and the District of Columbia, mortgage assistance is now available for unemployed and underemployed homeowners in every state.

Eligible homeowners can qualify for an interest-free loan that pays a portion of their monthly mortgage for up to two years, or up to $50,000, whichever comes first. The loan could also help cover missed mortgage payments or past-due charges, including principal, interest, taxes, insurances and attorney fees. HUD anticipates this program will help nearly 30,000 homeowners, with an average loan of approximately $35,000.

To learn more about the program, visit www.FINDehlp.org or call (855)-FIND-EHLP (346-3345).

Lost Mortgage Documentation

Sat, 05 Feb 2011 16:49:51 +0100

You wanted concrete proof of widespread lost mortgage documentation?

Feast your eyes upon this.

A foreclosure lawyer sent this little beauty by email. I had no idea the market was so robust for missing mortgage documents. And apparently there is inflation within the foreclosure fabrication circles. Prices to replace missing documents keep going up...;-)

Fraud: Take back your home from the Banksters: http://abclocal.go.com/kabc/video?id=7716215&syndicate=syndicate&section=
BOMBSHELL: Check Out This Industry Catalog And Price Sheet Used By The Banksters For FABRICATED Foreclosure Documents

This Could Get Your Investment Back

Fri, 28 Jan 2011 19:04:02 +0100

Lawsuit Comparison

Filing a lawsuit with a local law firm in Reno, NV takes about three years and is expensive. The law firm will charge you $40,000 in fees on a $400,000 mortgage. You will also owe them 40% of the market value of the home upon settlement. If the home is worth $200,000, you owe them $80,000 on a 30 year promissory note.

We can help you join a National Class Action Lawsuit for $5,500 and have an attorney represent you in court and file the suit.

You have a $600,000 mortgage, but your house is only worth $300,000 today. If you get $600,000 at the Settlement Agreement for both lawsuits, you're going to owe the law firm half, $300,000. You're going to owe us 25%, which is $150,000. That leaves you with $150,000.

You will pay out $450,000 and put $150,000 in your pocket and have a free and clear home from both lawsuits.

A Lawsuit Settlement Example

This lawsuit is for removal of the liens and you get a free and clear property. The back end fee is 25% of the mortgage eliminated or 25% of the value of your home, whichever is less. You are hoping for a cash settlement out of the lender. If there's no cash settlement, you'll owe us 25%.

For example, you have a $600,000 mortgage and the home is worth $300,000. The $600,000 mortgage has been eliminated. We get paid 25% of the $300,000 value of the home. So you would owe us $75,000. You'd have a $75,000 mortgage on your $300,000 house versus "a $600,000 mortgage on your $300,000 house the day you came into our offices and started the process.

http://www.banksgotcaught.com/