News, Research & Insights for American Homeowners, Patriots & Constitutional Conservatives
If Keystone XL had been a high speed rail line, it would be half way built
More than a few liberal voices are doing something of an end zone dance over the presumed demise of the Keystone XL pipeline. Of course, similar to a quip by Mark Twain, reports of its death may be greatly exaggerated, since President Obama’s decision left the door open for alternate proposals to be submitted. (The [...]
Uh oh.
Via Business Insider, true or not? On the one hand, it’s North Korean state media. On the other hand, it’s Jimmy Carter. In the message Jimmy Carter extended condolences to Kim Jong Un and the Korean people over the demise of leader Kim Jong Il. He wished Kim Jong Un every success as he assumes [...]
Thin skin.
“Three years ago DC pundits predicted with glee the demise of Sarah Palin’s political career. This past weekend their tune changed, citing false information that she has made a decision and set a date regarding a future campaign. Any professional pundit claiming to have ‘inside information’ regarding Governor Palin’s personal decision is not only wrong [...]
Asteroids.
Patrick Ishmael wrote about this in the Green Room, but why should he have all the fun? Not too long ago, Dick Durbin lamented the demise of credibility for Keynesian economic proposals, but even I didn’t realize the Keynesians had become quite this desperate. Fareed Zakaria offers a strange view of economics where government seizes [...]
Oh, like real people (aka “working stiffs” according to his majesty Nobama) in America are surprised. Is it just me or do the DC Democrats just come across as plain stupid? Enjoy the demise…. and I think I saw Harry drooling at one point at the thought of having his name on this “historic” piece of legislation that he conjectures will save all mankind forever and ever, amen.
“It’s illusionary, said Matt Weidner, a foreclosure defense attorney in St. Petersburg. “The fundamental problems are still there and they’re not being addressed.”
Among them: improper or fraudulent documentation by plaintiffs and their attorneys, the demise of a major Florida foreclosure law firm and myriad investigations into mortgage lenders and servicers’ foreclosure practices.
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The report of the ruling below by this Federal Judge has several implications:
This ruling could ultimately end up being the demise of ALL foreclosure actions involving securitized loans. One thing is clear in that the federal court identifies the investors as the owners of the loan and is so doing the court also recognizes that the servicer/intermediaries/pretender lender have no authority to do ANYTHING in the way of enforcement, modification, collection through legal means such as a foreclosure action because they simply have no standing (the alleged debt is not owed to anyone other than the investors).
Just because a secret deal between Wall Street, servicers, banks and MERS occurred to obscure the ownership and the transfers of mortgages doesn’t mean their deal will hold up under the careful eye of diligent judge who understands AND cares about the law being upheld.
* Federal judge lacks jurisdiction, moves case to states
* Loan modifications can hurt mortgage investors
NEW YORK, Aug 20 (Reuters) – A federal judge has ruled that Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz) cannot have a lawsuit by investors seeking to force it to buy back mortgages heard in federal court, saying he lacks jurisdiction to decide the case.
Tuesday’s ruling by Judge Richard Holwell of the U.S. District Court in Manhattan means the case will move to state court. Holwell did not decide the merits of the case.
“Congress passed two statutes within a year of each other to address the mortgage crisis,” the judge wrote. “In neither of these statutes did Congress federalize the case.”
The ruling is a win for investors, to the extent that Holwell rejected a claim by the bank’s Countrywide Financial Corp unit that new federal laws to encourage loan modifications to help struggling borrowers stay in their homes govern this case.
Countrywide had argued that the laws negated obligations it might have had to buy back modified loans. In 2008, Countrywide agreed with some 11 state attorneys general to modify $8.4 billion of loans made to roughly 400,000 borrowers.
Investors who own mortgage securities typically receive interest and principal payments. If servicers modified the underlying loans to reduce borrower obligations, investors would be harmed because they would receive lower payments.
Holwell did rule that investors bear the burden of showing that pooling and servicing agreements for their loans, taken “as a whole,” require Countrywide to buy back the loans.
Bank of America could not immediately be reached for comment. A published report said a spokeswoman agreed that the court did not rule on the merits of the plaintiffs’ claims.
The current case was brought by two investment funds holding Countrywide mortgages, Greenwich Financial Services Distressed Mortgage Fund 3 LLC and QED LLC.
These investors complained they would be harmed if Countrywide shifted the burdens of loan modifications to 374 trusts into which loans had been repackaged and securitized.
These investors would rather Countrywide repurchase modified loans for the full unpaid amounts.
Countrywide had been the largest U.S. mortgage lender before Bank of America acquired it last July for $2.5 billion.
The case is Greenwich Financial Services Distressed Mortgage Fund 3 LLC and QED LLC v. Countrywide Financial Corp, U.S. District Court, Southern District of New York (Manhattan), No. 08-11343. (Reporting by Jonathan Stempel, with additional reporting by John Tilak in Bangalore)
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