May
10
Reuters | Florida Foreclosure Case Could Slam Banks – BONY v PINO
Florida foreclosure case could slam banks PINO’S STORY The Florida case provides a startling example of abuses that allegedly take place in the foreclosure process – and the strategies lenders use to overcome them. Roman Pino, a shy, 35-year-old drywall hanger, bought his home in 2006 during the housing boom. He put 20 percent down … Read more
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May
01
Ability-to-Repay Rule for Mortgages Nears CFPB Approval
Ability-to-Repay Rule for Mortgages Nears CFPB Approval Richard Cordray wants lenders to adhere to the most basic tenet of banking: making sure borrowers can repay. Getting them to agree on how is proving tougher. The director of the Consumer Financial Protection Bureau is aiming to discourage lenders from making home loans with risky features and … Read more
Related posts:
- Attn Captain Obvious | Fed Proposes Rule that Would Require Creditors to Determine a Consumer’s Ability to Repay a Mortgage BEFORE Making the Loan
- Mortgage Bankers Association Letter to the Federal Reserve RE “Skin in the Game” and the Ability of Borrowers to Repay
- Mass Court May Rule on Retroactivity of some Foreclosures Tied to ‘Naked Mortgages’
May
01
Bloomberg’s Editorial On MBS Failures – The First Time Mortgage-Backed Securities Failed
Bloomberg’s Editorial On MBS Failures It was rather amusing to read this over the weekend from Bloomberg’s editorial department: How would all the mortgages for these apartments and houses be funded? Lenders simply followed the people. For decades, urban investors had bought stakes in farm mortgage bonds. With the agricultural economy in such straits and … Read more
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- Why Mortgage-Backed Securities Aren’t (Backed by Securities): How MERS Toasted the Banks
- Bear Stearns Asset Backed Securities Trust 2005-4 v. EMC Mortgage Corp | JPMorgan Sued for $95 Million Over Mortgage Securities
- Another Wrist Slap | Wells Fargo Agrees to “Settle” with SEC for $11 million on Wachovia Securities Laws Violations Involving Mortgage-Backed Securities
Apr
28
Colorado Initiative 84 | Banking Groups Challenge Initiative that Would Require Lenders to Prove their Right to Foreclose
Banking groups challenge Colorado right-to-foreclose ballot initiative Two of Colorado’s largest banking associations are digging in for what could be a protracted battle against a ballot initiative that would require lenders to prove their right to foreclose on property. Currently, a bank can foreclose with just a lawyer’s signature without proof — such as a … Read more
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- Update from NJ – Bank of New York v. Michael Raftogainis – Foreclosure Case Means Lenders Have to Prove They Hold Mortgage in Atlantic, Cape Counties
- Motion to Dismiss WITH Prejudice Against Florida Default Law Groups Client Deutsche Bank – Over Two Year Period Plaintiff Failed to Produce Documents to Foreclose
- Allonge (n)- A Clever Way for Pretender Lenders to Pabricate “Proof” of Ownership in Order to Foreclose
Apr
27
Greenville Lafayette, LLC v. Elgin State Bank | “What do you mean that I can’t foreclose my mortgage and sue the guarantor at the same time? Since when?”
Michigan Appeals Court To Stiffed Lenders: ‘One Action’ Rule Means What It Says – Only One Action At A Time In Cases Involving Foreclosure Lexologyreports: [T]he Michigan Court of Appeals, Michigan’s intermediate appellate court, issued its opinion in Greenville Lafayette, LLC v. Elgin State Bank (Case No. 308450), which reversed a decision of the Montcalm … Read more
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Apr
27
Greenville Lafayette, LLC v. Elgin State Bank | “What do you mean that I can’t foreclose my mortgage and sue the guarantor at the same time? Since when?”
Michigan Appeals Court To Stiffed Lenders: ‘One Action’ Rule Means What It Says – Only One Action At A Time In Cases Involving Foreclosure Lexologyreports: [T]he Michigan Court of Appeals, Michigan’s intermediate appellate court, issued its opinion in Greenville Lafayette, LLC v. Elgin State Bank (Case No. 308450), which reversed a decision of the Montcalm … Read more
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Apr
26
Interview, MERS RICO complaint: Doug Welborn, State District Court Clerk vs. MERSCORP Shareholders and Trustees (“the banksters”)
Interview, MERS RICO complaint: Doug Welborn, State District Court Clerk vs. MERSCORP Shareholders and Trustees (“the banksters”)
By lambert strether of Corrente.
Yes, I know that Doug Welborn, East Baton Rouge Parish ...
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- COMPLAINT | DOUG WELBORN AS CLERK OF COURT v BANK OF NY MELLON, BOA, CHASE, CITI, GMAC et al
- Clerk of Court (NOT SHARON BOCK) Sues Lenders for Withholding Fees in Racketeering Conspiracy
- COMPLAINT | JIM FULLER, CLERK OF THE COURT, DUVAL COUNTY, FLORIDA vs MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, MERS
Apr
18
Toxic Titles | Oklahoma Stewart Bulletin – Recent Oklahoma Supreme Court Decisions Regarding Foreclosures
Dear Associates: The Oklahoma Supreme Court has recently issued several opinions: Deutsche Bank National Trust v. Brumbaugh, 2012 OK 3 {Approved for Publication} Deutsche Bank National Trust v. Byrams, 2012 OK 4 HSBC Bank USA v. Lyon, 2012 OK 10 Deutsche Bank National Trust Company v. Matthews, 2012 OK 14 Deutsche Bank National Trust Company … Read more
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Apr
18
Sit Back and RadLAX
I'm having trouble getting excited over RadLAX going before SCOTUS. Ronald Mann has written that RadLAX "well might be the most important business bankruptcy case since its 1999 decision in Bank of America National Trust & Savings Ass’n v. 203 North LaSalle Street Partnership." I think that statement is literaly true, but that's not saying much; the Supreme Court doesn't hear very many business bankruptcy cases, period.
As it stands, I don't think the outcome in RadLAX is going to have much of an impact on bankruptcy practice on the ground. If the creditors prevail, the world will look like status quo, say 2009: credit bidding is allowed in sales under plans (and there will be little reason to teach RadLAX in a bankruptcy course).
If the debtor prevails, then de jure there will be no right to credit bid, but there will be one de facto in most cases (making the case well worth teaching). If there's a DIP financing agreement, that agreement will almost certainly provide for the DIP lender to have a right to credit bid. That means a ruling for the debtors will affect a narrow class of creditors and cases. It will affect secured lenders not in the DIP consortium, and it will affect secured lenders in cases where there is no DIP financing. That's cases financing themselves on cash collateral or unrestricted cash or trade credit or unsecured insider DIP loans. In other words, no impact whatsoever on the mega-cases. Maybe a greater impact on middle market. We'll also see syndication agreements including provisions to deal with cash bidding situations. In other words, a ruling for the debtors in RadLAX is unlikely to result in a major realignment of power in bankruptcy cases.
Sadly, SCOTUS taking RadLAX (which is reasonable to deal with a circuit split) is a reminder that SCOTUS hasn't addressed the two key issues in Chapter 11: the use of DIP financing agreements and asset sales as sub rosa plans. Obviously SCOTUS has to have a proper case to deal with these problems, and SCOTUS generally has discretion on hearing appeals. The Court could have dealt with this in Chrysler, but because of the macroeconomic impact of Chrysler (via GM), it was not the ideal case for addressing the interaction between the DIP loan, the sale, and the plan. So while it's nice to see a business bankruptcy case before the Court, I don't think too much rides on this one.
Apr
18
COMPLAINT | DOUG WELBORN AS CLERK OF COURT v BANK OF NY MELLON, BOA, CHASE, CITI, GMAC et al
“Each individual transaction can cost $100 or more,” Lyon said Tuesday. “In many cases, they just avoided filing anything at the courthouse. They didn’t pay anybody.” Complaint below… ~ EBR court clerk sues lenders in withholding fees State District Court Clerk Doug Welborn of Baton Rouge sued 17 banks and mortgage companies Tuesday, alleging they … Read more
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Apr
18
Clerk of Court (NOT SHARON BOCK) Sues Lenders for Withholding Fees in Racketeering Conspiracy
“Each individual transaction can cost $100 or more,” Lyon said Tuesday. “In many cases, they just avoided filing anything at the courthouse. They didn’t pay anybody.” ~ EBR court clerk sues lenders in withholding fees State District Court Clerk Doug Welborn of Baton Rouge sued 17 banks and mortgage companies Tuesday, alleging they participated in … Read more
Related posts:
- Florida Clerk of Court (NOT SHARON BOCK) Sues Mortgage Electronic Registration System (MERS) for Civil Conspiracy, Unjust Enrichment, as well as Fraudulent and Negligent Misrepresentation
- PBC Clerk of Court Sharon Bock to County Citizens RE Fraudclosures, It’s Not My Problem
- Clueless | Palm Beach County Clerk of Court Sharon Bock on FL MERS Lawsuit “We had no knowledge of the lawsuit until today”
Apr
17
New York’s Top Judge, Jonathan Lippman, is Not Done Smacking Around Foreclosure Mills
Judge bites banks Prods lenders, attys to unclog foreclosure cases New York’s top judge is not done smacking around foreclosure mills for their bad behavior. Chief Judge Jonathan Lippman, faced with thousands of stalled foreclosure cases clogging his courts, is expected to soon start a pilot program that will force these foreclosure mills and their … Read more
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Apr
17
Big Banks Slack on Maintaining Foreclosed Homes in Minority Areas, Complaint Charges
Big Banks Slack on Maintaining Foreclosed Homes in Minority Areas, Complaint Charges by Cora Currier ProPublica Answers to homeowners’ questions about the Independent Foreclosure Review.The administration’s website for the foreclosure prevention program. Provides an FAQ, homeowner examples, and other tools to see whether you might qualify for the program.A list of HUD-approved housing counseling agencies … Read more
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- NFHA Report | Here Comes the Bank, There Goes Our Neighborhood – How “Lenders” Discriminate in the Treatment of Foreclosed Homes
- Bulldoze ‘Em | Banks turn to demolition of foreclosed properties to ease housing-market pressures
- High court in Massachusetts upholds law aimed at blocking certain evictions from foreclosed homes
Apr
06
Palm Beach County Foreclosure Filings Surge 65% in March
Palm Beach County foreclosure filings surge in March WEST PALM BEACH — Lenders filed to foreclose on 1,502 Palm Beach County homeowners in March, a 65 percent increase from the same time last year and up 25 percent from February. The surge in new filings was called “dramatic” by Palm Beach County Clerk and Comptroller … Read more
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Apr
05
Report | THE BANKS ARE BACK OUR NEIGHBORHOODS ARE NOT – Discrimination in the Maintenance and Marketing of REO Properties
THE BANKS ARE BACK – OUR NEIGHBORHOODS ARE NOT Discrimination in the Maintenance and Marketing of REO Properties EXECUTIVE SUMMARY As the foreclosure crisis continues to affect 1 in 69 households across the United States, or roughly 2.7 million families in 2011, banks are repossessing an unprecedented number of properties.1 As a result, a related … Read more
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- NFHA Report | Here Comes the Bank, There Goes Our Neighborhood – How “Lenders” Discriminate in the Treatment of Foreclosed Homes
- GAO Report | VACANT PROPERTIES – Growing Number Increases Communities’ Costs and Challenges
- Fraudclosuregate | More Banks Walking Away from Homes, Adding to Housing Crisis
Mar
28
MERS | All in One Basket – The Bankruptcy Risk of a National Agent-Based Mortgage Recording System
All in One Basket: The Bankruptcy Risk of a National Agent-Based Mortgage Recording System John P. Hunt University of California – Davis School of Law (King Hall); Berkeley Center for Law, Business and the Economy Richard Stanton University of California, Berkeley – Finance Group Nancy Wallace University of California, Berkeley – Real Estate Group February … Read more
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- Mass. Bankruptcy Judge Voids Foreclosure of MERS Mortgage – Judge Tells Lenders You Can’t Have Your MERS Cake & Eat It Too
- California | Bankruptcy Judge Denies MERS, Foreclosure Sale Void, “MERS System is not an Alternative to Statutory Foreclosure Law”
- Statement by CEO of Mortgage Electronic Registration Systems (MERS) “The MERS System is not fraudulent, and MERS has not committed any fraud.”
Mar
28
OREGON DEPARTMENT OF JUSTICE SEEKS TO STOP LENDERS FROM WRONGFULLY FORECLOSING
OREGON DEPARTMENT OF JUSTICE SEEKS TO STOP LENDERS FROM WRONGFULLY FORECLOSING March 27, 2012 DOJ files an amicus brief in an Oregon foreclosure lawsuit pending before the 9th U.S. Circuit Court of Appeals. Oregon Attorney General John Kroger today announced the filing of an amicus, or “friend of the court,” brief that seeks to protect … Read more
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Mar
27
Judge Rules against Freddie Mac and Fannie Mae, Taxpayers Will Recover Millions (VIDEO)
Judge rules against Freddie Mac and Fannie Mae in Oakland County lawsuit DETROIT (WXYZ) – Oakland County is celebrating a major win over mortgage giants Fannie Mae and Freddie Mac. The county said U.S. District Court Judge Victoria Roberts ruled in favor of the county on Friday, saying the lenders were not exempt from the … Read more
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Mar
12
$95 MILLION SETTLEMENT WITH THE NATION’S FIVE LARGEST MORTGAGE SERVICERS PARTIALLY RESOLVES SOUTH CAROLINA FALSE CLAIMS ACT LAWSUIT
According to the settlement documents, the banks are also paying tens of millions of dollars to resolve whistleblower lawsuits alleging lenders defrauded the government in seeking federal mortgage insurance for some risky loans. The banks are paying $95 million, for example, to settle a case brought by Lynn Szymoniak, a homeowner who was featured on … Read more
Related posts:
- OCC Settles Civil Money Penalties Against Large National Bank Mortgage Servicers for $394 Million; Penalty Assessment Coordinated with Servicers’ Actions and Payments Under Federal-State Settlement
- Supreme Court of South Carolina ADMINISTRATIVE ORDER Re: Mortgage Foreclosure Actions
- Federal Government and State Attorneys General Reach $25 Billion Agreement with Five Largest Mortgage Servicers to Address Mortgage Loan Servicing and Foreclosure Abuses
Mar
12
$95 MILLION SETTLEMENT WITH THE NATION’S FIVE LARGEST MORTGAGE SERVICERS PARTIALLY RESOLVES SOUTH CAROLINA FALSE CLAIMS ACT LAWSUIT
According to the settlement documents, the banks are also paying tens of millions of dollars to resolve whistleblower lawsuits alleging lenders defrauded the government in seeking federal mortgage insurance for some risky loans. The banks are paying $95 million, for example, to settle a case brought by Lynn Szymoniak, a homeowner who was featured on … Read more
Related posts:
- OCC Settles Civil Money Penalties Against Large National Bank Mortgage Servicers for $394 Million; Penalty Assessment Coordinated with Servicers’ Actions and Payments Under Federal-State Settlement
- Supreme Court of South Carolina ADMINISTRATIVE ORDER Re: Mortgage Foreclosure Actions
- Federal Government and State Attorneys General Reach $25 Billion Agreement with Five Largest Mortgage Servicers to Address Mortgage Loan Servicing and Foreclosure Abuses
Mar
12
Bank of America, MERS Ask Court to Dismiss Texas Counties’ Recording Fee Suit
Bank of America, MERS Ask Court to Dismiss Texas Counties’ Mortgage Suit Mortgage Electronic Registration Systems Inc. and Bank of America Corp. asked a court to dismiss a lawsuit brought by Texas counties accusing MERS of filing false claims in property records. The counties allege Merscorp Inc.’s MERS was established by lenders including Bank of … Read more
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Mar
12
Bank of America, MERS Ask Court to Dismiss Texas Counties’ Recording Fee Suit
Bank of America, MERS Ask Court to Dismiss Texas Counties’ Mortgage Suit Mortgage Electronic Registration Systems Inc. and Bank of America Corp. asked a court to dismiss a lawsuit brought by Texas counties accusing MERS of filing false claims in property records. The counties allege Merscorp Inc.’s MERS was established by lenders including Bank of … Read more
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Mar
06
Oregon House Passes Foreclosure Protection Bill Addressing Mediation, Dual Track
Oregon House passes foreclosure protection bill addressing mediation, dual track Oregon lawmakers reached a last-minute deal Monday on protections for homeowners facing foreclosure, passing legislation that will require lenders to meet face to face with borrowers before initiating foreclosure. The House approved Senate Bill 1552 by a 59-1 vote late Monday as the Legislature approached … Read more
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- Oregon | House Proposal Would Weaken Senate Foreclosure Protection Bills, Validate MERS Retroactively
- Homeowners’ Response to Banks’ Dual Track Mod/Foreclosure System
- Oregon | Re: PRR 174 – Public Records Request Acknowledgment on Oregon House Judiciary Committee Records Dash-7 Amendment to Senate Bill 519
Feb
28
New Jersey’s Looming Foreclosure Crisis
New Jersey’s Looming Foreclosure Crisis As long as NJ allows major lenders to file documents using a private electronic system, there’s no way of achieving a transparent review process “I’m not surprised [investigators] would find a high percentage of irregularities, even fraud,” said Phyllis Salowe-Kaye, executive director of New Jersey Citizen Action, which counsels people … Read more
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Feb
24
Credit for Parenthood (in the Wall Street Journal)
Wall Street Journal Reporter Jessica Silver-Greenberg casts a spotlight on the market for fertility treatment loans - including loans that enable the purchase of other women's eggs - in the article "In Vitro a Fertile Niche for Lenders." (subscription required). Perhaps this will prompt some coverage of the adoption loan market, which also has very interesting not-for-profit lending options; the direct financial price of the credit may be low but some complicated strings are attached. My earlier efforts to broadly evaluate the impact of loans in these markets are here and here.
Feb
21
Neil Barofsky on U.S. Foreclosure Fraud Settlement (VIDEO)
Feb. 21 (Bloomberg) — Neil Barofsky, former special inspector for the U.S. Treasury’s Troubled Asset Relief Program and a Bloomberg Television contributing editor, talks about the settlement with U.S. lenders over foreclosure abuses. He speaks with Erik Schatzker on Bloomberg Television’s “InsideTrack.” ~ 4closureFraud.org TweetNo related posts.
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Article 9 and Bankruptcy Judges
By Melissa Jacoby | Securitization-MBS
Leave a Comment
A prior post addressed a proposed amendment to Article 9's official comments stating that the date of an Article 9 filing relates back to the initial filing date even if the debtor did NOT authorize the filing at that time. This post returns to that topic for two reasons. First, although it is risky to generalize, I sense that bankruptcy judges may still be unaware of this proposed amendment. This is relevant because bankruptcy judges often are on the "front lines" of Article 9 interpretation. Second, I have heard, indirectly, that at least some people want this amendment to lend approval to some lenders' current practice to routinely file without authorization during the loan application process. In other words, the loan is likely to be given within a few days, so no harm no foul. Maybe I misheard or misunderstood?
Article 9 does contemplate and even endorses "pre-filing," (filing a financing statement before the loan is approved). Absent exceptions not relevant here, however, Article 9 expressly conditions a lender's authority to file a financing statement against a debtor on getting that debtor's authorization for the filing in an authenticated record - whether in an elaborate loan application or scrawled on a napkin. This may well be one of the clearest parts of Article 9. Whatever one's views of the merits, a comment cannot trump this statutory requirement that reserves to the debtor some control over the clouding of title to his/her/its property.As suggested by one of the commentators in response to my last post, eliminating debtor signatures from financing statements sure did open a can of worms. Moving to medium neutrality is one thing. Rendering debtor authorization optional is something different entirely.