Happy Holidays: The US government is taking a two-week break from foreclosing on homes
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Monthly Archives: December 2016
New York unveils bill of rights for borrowers facing foreclosure
Obama may have done nothing for homeowners in the last 8 years except provide a HAMP scam – but at least the great state of New York is setting a precedent.
Whistleblower Didn’t Live to See Landmark Allied Mortgage Verdict, Taxpayers Recover $92 Million
Peter Belli died in 2012, according to online news reports. Whistleblowers typically receive a share of the fines and online reports suggest his share will flow to his estate. Allied Home Mortgage Capital Corp. and Allied Home Mortgage and its CEO Jim Hodges, are expected to appeal the decision. ProPublica has written extensively on Allied Home Mortgage’s troubles. Check out their most recent story for more details on the case.
http://www.thinkglink.com/2016/12/06/allied-home-mortgage-whistleblowers-and-the-future-of-the-mortgage-industry/
In May, 2011, Peter Belli filed a complaint in Boston. With guidance from whistleblower experts at Mahany Law, he accused Allied Home Mortgage Capital Corporation of massive mortgage fraud in a False Claims Act “qui tam” whistleblower lawsuit.
Over five years later, and after a trial that lasted five weeks, a jury found both the corporation and its CEO, Jim Hodge, guilty of knowingly representing to Housing and Urban Development (HUD) that certain loans were properly prepared and eligible for Federal Housing Administration (FHA) insurance, when in fact they were not.
Belli had managed several Allied branches in Massachusetts, Rhode Island, Arizona, and other states. He was thus in an ideal position to observe Allied Capital’s fraudulent practices, and he was determined to bring the scheme to light. Unfortunately, he passed away before the verdict came out only days ago in Texas. The move to a Texas court had been…
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Sen. Merkley intros bill to give Wells Fargo victims day in court
Way to go Jeff!
Sen. Jeff Merkley, D-Ore., announced Monday that he has joined 14 of his colleagues to introduce legislation, the Justice for Victims of Fraud Act of 2016, to give Wells Fargo customers who were victims of a fraudulent account scheme their day in court.
The senator said Wells Fargo is using the forced arbitration clauses it tucked away in the fine print of contracts customers signed when they opened legitimate accounts to prevent the Wells Fargo customers with fraudulently opened accounts who were harmed from joining together and taking Wells Fargo to court.
“What Wells Fargo did was outrageous,” Merkley said. “Opening millions of fraudulent accounts was a jaw-dropping betrayal of their customers’ trust, and one that had a real cost for many consumers. Whether it’s fraudulent fees or a falsely-damaged credit score, consumers should have every recourse when it comes to these violations—especially since customers never actually agreed to…
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Mnuchin as Treasury Secretary: Lackey for the TBTF Banks
The TBTF banks are so far gone that there is probably little Mnuchin can do to stave off the inevitable. No doubt there is an Oligarchy – whether they planted Mnuchin and Ross is yet to be seen. Maybe the realities of the rigged system caused a tad bit of conscience to develop since there servicer-related escapades.
Fed official stands by Wall Street reforms, says must complete work
Over $700 TRILLION in derivative debt, not to mention $3.4 TRILLION of unfunded (gambled away) state and union pension and retirement funds all across the country… yeah, ya think the TBTF needs to end? I’d say the sooner the better …and better late than never!
The United States “absolutely must” complete unfinished work ending the too-big-to-fail bank problem that helped plunge the global economy into recession eight years ago, an influential Federal Reserve policymaker said on Saturday.
In remarks that appeared to pre-empt President-elect Donald Trump, who has promised to roll back Wall Street regulations, New York Fed President William Dudley said much progress has been made making the financial system “less prone to panics.”
“Still,” he said in prepared remarks, “there is more to do before we can say that we have ended ‘too big to fail.’ This is work that we absolutely must complete.”
Dudley’s comments, to a Group of 30 meeting of top world regulators, came a day after another powerful regulator at the U.S. central bank, Daniel Tarullo, also warned against “backsliding” after years of implementing the landmark 2010 Dodd-Frank financial-reform law.
Challenges especially remain in regulators safely and smoothly handling…
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First Look: New Linda Tirelli Suit Against Bank of America
Excellent! Now, as long as the judge’s mutual funds aren’t heavily invested in MBS or bank stocks there might be a fair and balanced decision.
Attorney Linda Tirelli, a rockstar in the arena of foreclosure defense, has just filed an adversarial bankruptcy suit in the Southern District of New York naming the following as defendants: Bank of America, Nationstar, U.S. Bank, and Recontrust. As many former and soon-to-be-former homeowners know, this group is a veritable rogue’s gallery of home/wealth/livelihood/sanity thieves and scam artists. The fact that Tirelli is going after this financial mafia family is heartening, because Tirelli gets results.
So I read through her complaint, filed on November 29, 2016. You can read it here. What follows are my first impressions and sections of the complaint that stood out to me.
The Remedies
I am thrilled to see that Tirelli is going for the jugular with this complaint, and not shying away from what her client (and millions of people who are or have been in the same situation) truly deserves. Namely…
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Fed’s Kashkari Releases Plan to End “Too Big To Fail,” Compares Banks to Terrorists
When Neel Kashkari, a former Goldman Sachs banker who helped administer the U.S. Treasury Department’s bailout program during the 2008 financial crisis, was appointed as President of the Minneapolis Federal Reserve Bank, I commented on his intent to break up the big Wall Street banks as either too good to be true, or a political smokescreen.
Mr. Kashkari had made addressing the “too big to fail” his signature issue. And, it looks as if he is holding true to his promise.
It’s also gratifying to see a Federal Reserve official voice some of the same ideas that my Bank Whistleblowers United colleagues have voiced. BWU has also called for increased capital as one action item needed to avoid another financial crisis.
In a recent speech to the Economic Club of New York , Mr. Kashkari unveiled a plan to end the systematic risk posed by U.S. banks by forcing them to hold a massive amount of capital
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OneWest’s Mnuchin: Putting the Fox in Charge of the Henhouse
We can only hope there is enough righteousness lingering inside Mnuchin – but probably the best person to ask that question to would be Mike Perry the former IndyMac CEO that NY Dem. Senator Chuck Schumer’s rumor took down while his vulture pals waited in the wings.
David Dayen at The Nation:Ross and Mnuchin—Profiteers of the Great Foreclosure Machine—Go to Washington
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