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Tag: Bank of America (Page 2 of 3)

Bank of America Forecloses on Santa Clara Woman After Telling Her to Miss Her Payments | | St. George News

008bBank of America Forecloses on Santa Clara Woman After Telling Her to Miss Her Payments | | St. George News

How many times do we have to read this same story? Telling someone that they have to stop paying to access a federal program, encouraging them to believe that they are going to get a loan modification, when your bank has already decided that no one is going to get this kind of deal, and then foreclosing on them when they fall for the bait – is this they way banks are supposed to make money?

What is the business ethics here? The bank should be telling its customers the truth, not a set of lies. I don’t think that requires much analysis.

Banks are a utility in the United States. That is, they have government protection in return for the bank following a set of rules. That’s why your accounts are insured and banks are supposed to be accountable. Because in a real sense a bank is public institution, it has privileges in the law to protect and profit it. How much less incentive should this kind of institution have than private companies from misleading and cheating its clients out of their homes?

Since, I wrote this article my own students have come forward with the same story of being told to miss payments by the bank and then being foreclosed on. There is great and calculated cruelty in these acts.

James Pilant

SANTA CLARA – Bank of America foreclosed on a Santa Clara woman’s home, despite her doing everything she was instructed to do in order to prevent it. Annette Lake resided in her house in Santa Clara from 1986 until May 24, 2011, when Bank of America foreclosed on her home. Just after her divorce from her husband was finalized in 2008, Lake was diagnosed with breast cancer. She was laid off from her job during chemotherapy treatments. She began ha … Read More

via

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Couple Claims They Were Duped By Bank Into Foreclosure (via CBS Chicago)

The same sad story over and over again. The bank says no problem, sets up a trial period and then forecloses. It’s a trap.

The post says the family “claims” they were duped.

“Claims,” yeah right, we’ve seen this technique over and over again. The bank literally takes the property legally by manipulating the families into a “trial” period, which they will then (to no one’s surprise) find the deal inadequate and then foreclose.

For cruelty and cold blooded maliciousness, it would be hard to find worse.

James Pilant

CHICAGO (CBS) –- A local couple said they did what the bank told them to do—and now they are facing foreclosure on their home. As CBS 2’s Kristyn Hartman reports, it has happened to hundreds of thousands of homeowners.  The house they were happy to build, is now a source of hurt for LaRae Alvarado and her husband. They are fighting their home mortgage default—and they say it isn’t their fault. … Read More

via CBS Chicago

Decision Not to File Charges Against Countrywide Excec Mozilo Upsets Blogosphere!

From the New York Times article by Gretchen Morgenson.

Mozilo (From the LA Times)

Federal prosecutors in Los Angeles have dropped their criminal investigation into Angelo R. Mozilo, the former chief executive of Countrywide Financial, once the nation’s largest mortgage lender, according to a person with direct knowledge of the investigation.

The closure of the case after two years of inquiry follows last October’s settlement by Mr. Mozilo of insider trading allegations made by the Securities and Exchange Commission. Regulators had contended that Mr. Mozilo sold $140 million in Countrywide stock between 2006 and 2007 even as he recognized that his company was faltering. Countrywide and Bank of Americapaid $45 million of Mr. Mozilo’s $67.5 million settlement, and he was responsible for the rest.
I was very unhappy about this, finding it difficult to believe there was no criminal conduct on his part.
But I am not the only one upset.

“All of these senior people got huge payouts and left behind the carnage, which has hurt many hundreds of thousands.”

From 4closureFraud.

Hundreds of billions of dollars have been lost by investors while millions of borrowers have lost their homes. Few of the people who ran the institutions that contributed to the disaster have been found liable.

Women Born Transsexual

Is it not clear to anyone by now that it is men like this who, even with the penalties levied against them, are still sitting pretty with large bank accounts as American’s are still losing their homes? Tell me it was the American people’s fault for signing into hefty monthly payments….go ahead, I dare you.

The Tumultuous Times

Mozilo’s settlement with the S.E.C. was for a bit over 10% of his estimated net worth of $600 million. It was surely a good deal for him if he could avoid admitting guilt and, especially, escape being criminally prosecuted for fraud.

House of Bread

Last week, California’s new AG fined Mozilo roght around $6 million, if I recall, and I opined that were he to have forgotten his checkbook, he could likely pay the amount using change found in his car.

Foreclosureblues

Un-fucking-believable. It looks like the rich and corrupt can get away as long as they pay. Since this comes from the Eric Holder-led DOJ, I wouldn’t be surprised this was done to keep all those Democrats, who received sweet-heart deals, out of court records.

Scotty Starnes’s Blog

Countrywide Exec walks away with your money and no criminal charges

Your Daddy’s Politics

 

Criminal Investigation Against Mozilo Dropped

Criminal Investigation Against Mozilo Dropped

From the New York Times article by Gretchen Morgenson.

 

Federal prosecutors in Los Angeles have dropped their criminal investigation into Angelo R. Mozilo, the former chief executive of Countrywide Financial, once the nation’s largest mortgage lender, according to a person with direct knowledge of the investigation.

The closure of the case after two years of inquiry follows last October’s settlement by Mr. Mozilo of insider trading allegations made by the Securities and Exchange Commission. Regulators had contended that Mr. Mozilo sold $140 million in Countrywide stock between 2006 and 2007 even as he recognized that his company was faltering. Countrywide and Bank of Americapaid $45 million of Mr. Mozilo’s $67.5 million settlement, and he was responsible for the rest.
I was very unhappy about this, finding it difficult to believe there was no criminal conduct on his part. Furthermore, it’s difficult to encourage good business ethics when bad business ethics goes unpunished.
But I am not the only one upset.

“All of these senior people got huge payouts and left behind the carnage, which has hurt many hundreds of thousands.”

From 4closureFraud.

Hundreds of billions of dollars have been lost by investors while millions of borrowers have lost their homes. Few of the people who ran the institutions that contributed to the disaster have been found liable.

Women Born Transsexual

Is it not clear to anyone by now that it is men like this who, even with the penalties levied against them, are still sitting pretty with large bank accounts as American’s are still losing their homes? Tell me it was the American people’s fault for signing into hefty monthly payments….go ahead, I dare you.

The Tumultuous Times

Mozilo’s settlement with the S.E.C. was for a bit over 10% of his estimated net worth of $600 million. It was surely a good deal for him if he could avoid admitting guilt and, especially, escape being criminally prosecuted for fraud.

House of Bread

Last week, California’s new AG fined Mozilo roght around $6 million, if I recall, and I opined that were he to have forgotten his checkbook, he could likely pay the amount using change found in his car.

Foreclosureblues

Un-fucking-believable. It looks like the rich and corrupt can get away as long as they pay. Since this comes from the Eric Holder-led DOJ, I wouldn’t be surprised this was done to keep all those Democrats, who received sweet-heart deals, out of court records.

Scotty Starnes’s Blog

Countrywide Exec walks away with your money and no criminal charges

Your Daddy’s Politics

 

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BOA: BAD BANK, BAD BANK, WORSE BANK (via Livinglies’s Weblog)

Right!

This is how I feel as well. It’s a good read. Be warned, he’s really upset. But so am I when I’m dealing with this issue.

Here is my writing on the same subject. You can see that I get passionate about foreclosures too.

Robo-Signing Foreclosure Freeze Update (via Foreclosureblues)

Lots of Links on the Foreclosure Fraud Crisis (via Rortybomb)

“We Can Either Have a Rational Resolution to the Foreclosure Crisis or We Can Preserve the Capital Structure of the Banks. We Can’t Do Both” (via Foreclosureblues)

Sheldon Whitehouse Weighs In On The Foreclosure Crisis

Third Way Comments on Foreclosure Fraud Policy in the Post-Ibanez Landscape (via Rortybomb)

Foreclosure Speed Made Loan Modifications Impossible

The Vast Majority Of Foreclosures Were Done Correctly?

In total, I have 46 posts about the mortgage crisis.

James Pilant

BOA: BAD BANK, BAD BANK, WORSE BANK COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary Bank of America to Create Troubled Loans Unit BANK STILL ATTEMPTING TO KEEP FORECLOSURES A POLITICAL ISSUE AS LEGAL OPTIONS RUN OUT EDITOR’S NOTE: As for what this means for homeowners, it is obvious that BOA is trying to come up with some formula that will be politically acceptable the final result of which will still be that they will get hundreds of thousands o … Read More

via Livinglies’s Weblog

BOA: BAD BANK, BAD BANK, WORSE BANK (via Livinglies’s Weblog) Part of The Foreclosure Crisis

Right!

This is how I feel as well. It’s a good read. Be warned, he’s really upset. But so am I when I’m dealing with this issue.

Here is my writing on the same subject. You can see that I get passionate about foreclosures too.

Robo-Signing Foreclosure Freeze Update (via Foreclosureblues)

Lots of Links on the Foreclosure Fraud Crisis (via Rortybomb)

“We Can Either Have a Rational Resolution to the Foreclosure Crisis or We Can Preserve the Capital Structure of the Banks. We Can’t Do Both” (via Foreclosureblues)

Sheldon Whitehouse Weighs In On The Foreclosure Crisis

Third Way Comments on Foreclosure Fraud Policy in the Post-Ibanez Landscape (via Rortybomb)

Foreclosure Speed Made Loan Modifications Impossible

The Vast Majority Of Foreclosures Were Done Correctly?

In total, I have 46 posts about the mortgage crisis.

James Pilant

BOA: BAD BANK, BAD BANK, WORSE BANK COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary Bank of America to Create Troubled Loans Unit BANK STILL ATTEMPTING TO KEEP FORECLOSURES A POLITICAL ISSUE AS LEGAL OPTIONS RUN OUT EDITOR’S NOTE: As for what this means for homeowners, it is obvious that BOA is trying to come up with some formula that will be politically acceptable the final result of which will still be that they will get hundreds of thousands o … Read More

via Livinglies’s Weblog

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Bank of America Sued Over Countrywide Mortgage Related Investments

I’m surprised this hasn’t already happened. When you buy securities you expect that they be “secure.” These are not supposed to be the equivalent of penny stocks. Countrywide packaged securities that it knew were risky and packaged securities that it knew had serious ownership issues.

This is hard legal question. What is the first warranty guarantee that a seller gives automatically (implied)? Answer, that they own the product they are selling. That is the first thing you are supposed to do. And Countrywide sold a product that it knew it didn’t have a clear title to.

Is this going to be hard lawsuit to win? If it can be proved that Countrywide knew that its title to these properties was not secure, Bank of America which now owns Countrywide is going to be pay out more. I have heard estimates of up to 40 billion dollars in possible paybacks over these bad securities.

From CBS Money Watch

A lawsuit alleges Countrywide Financial Corp. and two of its former executives misled institutional investors who were stuck with huge losses from mortgage-related investments that they say were portrayed as low-risk.

The lawsuit was filed Monday in New York State Supreme Court by investors who bought hundreds of millions of dollars in Countrywide’s mortgage-backed securities from 2005 to 2007, before the housing market went bust. The list of a dozen plaintiffs includes New York Life Insurance Co., TIAA-CREF Life Insurance Co. and Dexia Holdings Inc.

The complaint names Countrywide, various subsidiaries that issued the securities, two former company executives including ex-CEO Anthony Mozilo, and Bank of America, which bought Countrywide in 2008.

The big guns are out on this one. Read a little more –

The plaintiffs allege they wanted conservative investments that Countrywide portrayed as being backed by low-risk mortgages written according to strict underwriting criteria.

Materials that Countrywide subsidiaries circulated to potential investors indicated all the mortgage-backed securities had been assigned investment-grade ratings, and most had top-rung “AAA” ratings, according to the lawsuit.

But as of last month, more than 31 percent of the mortgage loans underlying those securities were over 30 days delinquent, in foreclosure, bankruptcy or repossession, the lawsuit says. The securities “are no longer marketable at or near the prices the plaintiffs paid for them,” leaving them with “significant losses,” the complaint says.

The lawsuit seeks unspecified damages for alleged securities fraud.

These investments were marketed as conservative (solidly secure), given a triple AAA rating (higher than any paper you ever wrote could get) and are now sinking in value daily.

The American mortgage crisis just keeps rockin’ on.

James Pilant

Banks Suffer Major Setback

When foreclosing on mortgages the banks have been skipping the rule of law. They have not followed the rules for the transfer of property preferring to pretend that their electronic records are a viable substitute. I never believed the courts would go along with that and the Massachusetts court did not. Here’s the story from that excellent blog, Rortybomb.

From RortybombBig Week in Foreclosure News

The biggest news is the decision in Massachusetts’ “Ibanez case”, where the Massachusetts Supreme Court voided the seizures of two homes by Wells Fargo and US Bank based on their inability to show that they owned the mortgages at the time of foreclosure. Tracy Alloway walks you through the case, David Dayen has more including the PDF of the decision, and analysis from Yves Smith and Felix Salmon.

From the opinion: “Where, as here, mortgage loans are pooled together in a trust and converted into mortgage-backed securities, the underlying promissory notes serve as financial instruments generating a potential income stream for investors, but the mortgages securing these notes are still legal title to someone’s home or farm and must be treated as such.”

They ruled through Massachusetts law instead of New York law, so no answers on looming New York trust law. Bank stocks are down. This is likely to have major implications down the road. We’ll have more on this opinion later.

I do not believe the ruling will stand. Congress will ride to the rescue of the banks legalizing their reckless disregard for state law and afflicting the suffering homeowners with even more pain. Congress will enact it. Obama will sign it. He will then explain it as a major legislative victory. Everything he does merits a press release and a couple of morning show appearances demonstrating his successful legislative record.

I wish there was someone somewhere who was as concerned with the rights and privileges of the American middle class and less concerned with the welfare of the banks.

James Pilant

Banks Suffer Major Setback: The Use of MERS – electronic property transfers – is not valid for mortgage foreclosures

When foreclosing on mortgages the banks have been skipping the rule of law. They have not followed the rules for the transfer of property preferring to pretend that their electronic records, MERS, are a viable substitute. I never believed the courts would go along with that and the Massachusetts court did not. Here’s the story from that excellent blog, Rortybomb.

From RortybombBig Week in Foreclosure News

The biggest news is the decision in Massachusetts’ “Ibanez case”, where the Massachusetts Supreme Court voided the seizures of two homes by Wells Fargo and US Bank based on their inability to show that they owned the mortgages at the time of foreclosure. Tracy Alloway walks you through the case, David Dayen has more including the PDF of the decision, and analysis from Yves Smith and Felix Salmon.

From the opinion: “Where, as here, mortgage loans are pooled together in a trust and converted into mortgage-backed securities, the underlying promissory notes serve as financial instruments generating a potential income stream for investors, but the mortgages securing these notes are still legal title to someone’s home or farm and must be treated as such.”

They ruled through Massachusetts law instead of New York law, so no answers on looming New York trust law. Bank stocks are down. This is likely to have major implications down the road. We’ll have more on this opinion later.

I do not believe the ruling will stand. Congress will ride to the rescue of the banks legalizing their reckless disregard for state law and afflicting the suffering homeowners with even more pain. Congress will enact it. Obama will sign it. He will then explain it as a major legislative victory. Everything he does merits a press release and a couple of morning show appearances demonstrating his successful legislative record.

I wish there was someone somewhere who was as concerned with the rights and privileges of the American middle class and less concerned with the welfare of the banks.

James Pilant

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Bank Of America Next WikiLeaks Target – Bank Digging For Dirt

The headline to my quoted article says that the bank is digging for dirt on itself. This is just PR. They know exactly what they don’t want people to know. Bank of America wants to give the impression that it’s such a hugh and confusing organization that nobody really had a handle on everything going on. Nonsense.

Frankly, I’m excited. This bank has been a key player in the mortgage foreclosure crisis and has just settled some buyback lawsuits. Let’s see exactly what they thought of the quality of their ownership chain. Let’s see what their internal memos said about the speed of the foreclosures, their refusals to renegotiate mortgages and their thoughts on the President’s plan to help homeowners.

I promise you a careful look at these documents as soon as I can get to them.

From The Lookout from Yahoo News

WikiLeaks founder Julian Assange recently confirmed that Bank of America will be his next target — so it’s not surprising that the nation’s largest bank is now in damage-control mode. Still, the megabank’s methods are a bit unorthodox. Instead of trying to frantically pin culpability elsewhere in the great chain of financial dealing, BofA executives are actually digging for dirt on the bank’s own operations, the New York Times reports. That way, the reasoning goes, the bank’s messaging team will be better positioned to spin any damaging revelations that surface from WikiLeaks.

Do people believe this stuff? Doesn’t this sound more like the plot for an episode of a television comedy?

James Pilant

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