The Ohio Supreme Court has ruled that servicing a residential mortgage does not constitute a “consumer transaction” as defined by state law, a ruling that consumer groups and attorneys say eliminates a protection for homeowners trying to save their homes amid the housing collapse.
The ruling stems from a lawsuit filed by a Norwalk homeowner against Barclay’s Capital Real Estate in U.S. District Court in Toledo.
The homeowner, Sondra Anderson, alleged that Barclay’s, which operated the mortgage-servicing business under the name HomEq before selling it three years ago, had not applied her mortgage payments correctly.
This quiet title claim against U.S. Bank and BONY (collectively, “Defendants”) is based on the assertion that Defendants have no interest in the Plaintiffs’ mortgage loan, yet have nonetheless sought to foreclose on the subject property.
Currently before the court is Defendants’ Motion for Summary Judgment, arguing that Plaintiffs’ quiet title claim fails because there is no genuine issue of material fact that Plaintiffs’ loan was sold into a public security managed by BONY, and Plaintiffs cannot tender the loan proceeds. Based on the following, the court finds that because Defendants have not established that the mortgage loans were sold into a public security involving Defendants, the court DENIES Defendants’ Motion for Summary Judgment.
A foreclosure defense lawyer in Florida has been reported missing as authorities investigate the reported disappearance of at least $6 million in funds held by his law firm in trust accounts.
Timothy McCabe is a partner at McCabe and Samiljan in Lake Worth, Fla. His wife, Donna, reported him missing on April 5, report the Sun Sentinel and the Palm Beach Post. Authorities say she contacted them after one of her husband’s friends told her that McCabe had called him and said it was the last time he would hear from him.
According to the information, co-conspirator Willie G. Manley, charged elsewhere, was an accountant who created false income documents, such as W-2 forms, paystubs, and Form 1040 income tax returns, which were submitted to lenders. Co-conspirator Eric Ponder, charged elsewhere, is alleged to have held himself out as a real estate developer and helped cause the submission of numerous fraudulent loan applications that resulted in mortgages being unwittingly issued by various banks by, making false statements on loan applications in his own name and helping secure mortgages in the names of others by recruiting straw buyers whose identities and fraudulent information were used to obtain the loans.
A COURT ACTUALLY MADE A BANK FOLLOW THE LAW AND ITS OWN RULES!
"The assignment of the Defendant’s note and mortgage, having not been assigned from the Depositor to the Trust, is therefore void as in being in contravention of the PSA. The evidence submitted by Defendant that the note was acquired after the closing date and that assignment was not made by the Depositor, is sufficient to raise questions [*10]of fact as to Whether the Plaintiff owns the note and mortgage, and precludes granting Plaintiff summary judgment."
The assignment of the note and the mortgage which affected the transfer was dated July 16, 2008, however, pursuant to the terms of the PSA the trust closed on November 14, 2006.
Bank of America Corp., the second- largest U.S. lender by assets, must face claims by homeowners that it took kickbacks from private insurers, a judge ruled.
U.S. District Judge Berle Schiller in Philadelphia denied the bank’s request to toss the lawsuit because the statute of limitations had expired on the claims. Homeowners who sued should have the opportunity to develop their argument that the claims should be allowed because the bank intentionally concealed its behavior....
Ward admitted to engaging in a fraud scheme that took place from 1997 to April 5, 2012, the day he was arrested by Canadian authorities. According to the plea agreement, Ward led a scheme that solicited and recruited homeowners whose properties were in danger of imminent foreclosure. Ward promised to delay their foreclosures for as long as the homeowners could afford his $700 monthly fee. Once a homeowner paid the fee, Ward accessed a public bankruptcy database and retrieved the name of an individual debtor who recently filed bankruptcy. Ward admitted that he obtained copies of unsuspecting debtors’ bankruptcy petitions....
A federal grand jury in U.S. District Court for the Eastern District of California in Sacramento returned a superseding indictment charging Andrew B. Katakis, of Danville, Calif., with obstruction of justice related to a federal investigation into conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions held in San Joaquin County, Calif., the Department of Justice announced.
The added charge alleges that after Katakis received a letter notifying him that a federal grand jury had subpoenaed his bank account, he deleted and caused others to delete electronic records and documents related to the conspiracies. The superseding indictment alleges that Katakis also installed and caused others to install and use a software program that overwrote deleted electronic records and documents so that they could not be viewed or recovered.
The Banks claim their interest in the property through another entity, First National Bank of Chicago. But by the time First National obtained its assignment of the note, from the receiver of Home Owners Federal Savings and Loan Association, Home Owners had already assigned the note to another party, Knutson Mortgage Corporation, which subsequently assigned the note to ASIP. It follows that, at the time the Home Owners receiver purported to assign the note to First National, Home Owners no longer had any interest in the note to assign–and that First National, in turn, had no interest to assign to the Banks.
The United States can pursue parts of a civil lawsuit against Bank of America Corp over its sale of toxic mortgages to Fannie Mae and Freddie Mac, boosting a largely untested legal theory the government used in the case, a federal judge ruled on Wednesday.
Bank of America had sought to dismiss the lawsuit, which seeks penalties under two laws. One is the False Claims Act, which is often used to target fraud against the government, and the other is the 1989 FIRREA law.
The indictment also alleges that Sampson embezzled $440,000 from escrow accounts under his supervision as a court-appointed referee for foreclosures. It says some of the funds were funneled into a losing campaign to become Brooklyn district attorney..
When an interview with the FBI last year concluded with agents accusing the senator of lying, Sampson responded, "Not everything I told you was false," the indictment says.
The result we see from bank policies and conduct is that people go into a declared “default” on a false loan because the bank representative who has no money in the game told them that the only way they can apply for relief is by being behind in their payments at least 90 days. Translation: We are advising you to breach your loan documents and go into debt on past due payments such that you won’t be able to reinstate.
People go into trial modifications on a false loan with a bank or entity with no authority to offer it during which they deplete their savings and retirement, go totally broke from paying the “offer of trial modification” thinking they are saving their home.
In the fall of 2010, a series of revelations about foreclosure documentation irregularities hit the housing markets. The transfer of a property’s title from the mortgagor (the homeowner) to the mortgagee (typically a bank or a trust) necessary for a successful foreclosure requires a series of steps established by state law. The securitized mortgage transaction adds additional steps necessary to the process and procedure required to pass “good title” to loan documents between and among participants in the transaction. Defi ciencies in the transfers of loan documents may threaten the enforceability of mortgages held as securitized paper, or as it is more commonly known, RMBS.1
A former Los Angeles resident who fled to Canada and was a federal fugitive for 12 years pleaded guilty today to aggravated identity theft and bankruptcy fraud in connection with leading a nearly 15-year foreclosure-rescue scam that fraudulently postponed foreclosure sales for more than 800 distressed homeowners, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Central District of California André Birotte, Jr., U.S. Attorney for the Northern District of California Melinda Haag, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office, and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
Golden First Mortgage Corp., and its owner, operator, and president, David Movtady, are the subjects of a civil mortgage fraud lawsuit. The lawsuit seeks damages and civil penalties under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) for years of misconduct in connection with Golden First's participation in the Federal Housing Administration's (FHA") Direct Endorsement Lender Program.
The Complaint alleges that Golden First and Movtady intentionally, knowingly, and recklessly approved loans since 2002 that should never have been federally insured.
Court systems across Florida have made little progress on their foreclosure backlogs during the past year — the pace of new home defaults has kept almost lockstep with those dismissed by a special task force.
Since the start of the July 1 fiscal year, case workers have moved 6,222 foreclosures through the 12th judicial court that covers Sarasota, Manatee and DeSoto counties.
But during that time, 5,174 new default filings have made their way into the pipeline — reducing the backlog by 1,048 cases in the past nine months and leaving an estimated logjam of 15,581 foreclosures....
In many cases, the case for ownership or foreclosure collapses completely because in fact the trust or pool never did acquire ownership because there was no sale and the trustee never had any records showing the money paid by the homeowner or other parties who may have paid down the loan under non-subrogated obligations to payoff the debt. The creditor only being entitled to recover once on the debt, must show that there were no mitigating payments received by the trustee or anyone on its behalf as agent, servant or employee or affiliate.
In a case that is bound to be watched and probably the first of many to come, a Federal Judge found that the constitutionality of the greased lightening judicial sale is probably unconstitutional and cancelled the sale of a home in foreclosure.
U.S. District Judge William Martinez issued a preliminary injunction against the sale of Lisa Kay Brumfiel’s four-bedroom home, scheduled for Wednesday in Arapahoe County, until the judge can decide whether parts of state law are unfair to homeowners facing the loss of their house.
The part of the law that the Judge finds troublesome and that the rest of us find is absurd is that in lieu of actually providing the court with evidence, lawyers can assert that their client has the right to foreclose, thus delegating the function of the Judge to the lawyer for the bank.
If Florida’s judges, Constitutional officers as they are, became aware that in a significant percentage of the cases that pass their benches, the banks were ripping off the State of Florida? Would the judges have a duty to not allow the foreclosures to continue?
And no, I’m not talking about fraud or forgery or robo signing or any of the other crimes that are so well documented, I’m talking about a new scam that has become apparent. A scam so bold, so arrogant, so persistent that, well….only a banker and their foreclosure mill attorneys would contemplate carrying it out.
According to the indictment, from May through July 2006, Johnson recruited two financially unqualified individuals to buy multiple properties in Dorchester and Mattapan, Massachusetts. To secure their participation in the scheme, Johnson, or others acting with him, promised these individuals that they would have no responsibility for any expenses or payments on the property. Johnson promised that the individuals would hold the titles in their name for a few months until the property was improved and sold, and in exchange, they would receive a payment for each property purchased.