Village Green I, GP v. Fed. Nat’l. Mortgage Ass’n. (In Re Village Green I, GP), 811 F.3d 816 (6th Cir. 2016) –

The debtor sought confirmation of a plan of reorganization where the impaired accepting class consisted of two claims totaling less than $2400 which were to be paid over 60 days. The secured creditor objected that this did not satisfy the Bankruptcy Code confirmation requirements. The bankruptcy court initially confirmed the plan. After bouncing back and forth between the bankruptcy court and the district court, the case was dismissed and the automatic stay lifted. An appeal to the 6^th Circuit followed.

NY Post:

A Long Island couple’s safe deposit box is so secure, even they can’t get into it, they say in a lawsuit.

Brenda and Robert Fox have kept $48,000 in jewel­ry in a box at a Chase Bank in Huntington since 2009.

The Foxes had no trouble with the setup until last year, when Brenda was told there was no record of her owning the box.

Even after a supervisor opened it with Brenda’s key, managers declined to let her have the belongings inside because recently computerized records listed a different owner, the Foxes say in Brooklyn federal court.

U.S. Senate Banking Committee Democrats sent another letter to Wells FargoWFC, +0.07%   on Thursday, asking why their other letters have not yet been answered.

The bank’s management has so far failed to answer all the questions the committee members have put to it, the letter says, following its settlement with multiple regulatory authorities in September for multi-year fraudulent sales practices.

The letter, jointly signed by nine Democrats including Ranking Member Sherrod Brown of Ohio and Elizabeth Warren of Massachusetts, again asked Wells Fargo’s board for a status report on its ongoing investigation of the fraud and a detailed timeline of when the board learned about the illegal practices and actions it took. They also asked why the board didn’t investigate the misconduct sooner.

The senators say Wells Fargo’s management is dodging them, even though its new CEO Tim Sloan told CNBC on October 12 that there were…

It has been called “a bigger risk than Brexit”– the Italian banking crisis that could take down the eurozone. Handwringing officials say “there is no free lunch” and “no magic bullet.” But UK Prof. Richard Werner says the magic bullet is just being ignored. 

On December 4, 2016, Italian voters rejected a referendum to amend their constitution to give the government more power, and the Italian prime minister resigned. The resulting chaos has pushed Italy’s already-troubled banks into bankruptcy. First on the chopping block is the 500 year old Banca Monte dei Paschi di Siena SpA (BMP), the oldest surviving bank in the world and the third largest bank in Italy. The concern is that its loss could trigger the collapse of other banks and even of the eurozone itself.

There seems little doubt that BMP and other insolvent banks will be rescued. The biggest banks are always…

Wenzel v. Green Tree Servicing, LLC (In re Wenzel), 554 B.R. 861 (Bankr. W.D. Wis. 2016) –

A chapter 7 trustee and a debtor sought to avoid as a preference a mortgage assignment that was recorded within 90 days prior to the bankruptcy filing. Underlying this claim was their contention that the original mortgage was void as against subsequent purchasers (thus allowing the trustee to avoid the lien) because no legal description was attached to the mortgage.

For the past 15 years there has been a huge chasm between what a document says and what actually occurred. In foreclosure settings, the conscious decision has been made to ignore the Truth and proceed on the falsehoods promulgated by the banks. This arises from the “national security” fear that if the banks are not allowed to continue their fraudulent behavior, the entire financial system will collapse taking the entire society down with it. This myth is promulgated by the Banks, who supply the government with people to regulate the banks. Even as a theory it is untested, and unsupported by any real evidence. Unfortunately for Americans, too many people believe it.

On November 30th, 2016, President-elect Trump named Steve Mnuchin to be the United States Treasury Secretary.

Also known as the “Foreclosure King,” Mnuchin earned the nickname for his bank’s practice of buying distressed mortgages during the financial crisis and evicting thousands of homeowners.

As the Chief Executive Officer and owner of OneWest Bank, Mnuchin oversaw what housing advocates called a “Foreclosure Machine.”

How did the “Foreclosure Machine” work?
The “Foreclosure Machine” repossessed the homes of tens of thousands of American families between 2009 and 2015. These actions only intensified the economic pain of the Great Recession.

Programs were created and available specifically to help banks like OneWest work with families to modify their mortgages and keep them in their homes.

Instead, OneWest pursued an aggressive strategy of foreclosing on families to rack up profits. In one case in Minnesota, a homeowner in a foreclosure dispute with OneWest came home in…

“reapplying the “signature images” upon stored copies.”

I have obtained confirmation from a large bank vendor (Visionet Systems, Inc.) that it rectifies “lost notes” by reapplying the “signature images” upon stored copies. —- Bill Paatalo, December 10, 2016

Kudos to Bill Paatalo who has quantified and identified what I have been talking about for years — the production of “original” notes that were previously destroyed. The sarcasm from the bench has dripped ridicule on anyone even suggesting that the “blue ink” signature is merely a reproduction on a fabricated document. The revelations in this article might be a step toward changing that attitude. — Neil Garfield

“Automated Affidavit Verifications” And “Lost Note” Reproductions. For…