Housing Wire reports in its “Morning Cup of Coffee” Post: Countrywide is transferring mortgages to special servicers on certain deals in line with the servicing part of a proposed $8.5 billion residential mortgage-backed securities settlement proposed by The Bank of New York Mellon ($16.80 0.07%) and Bank of America($7.28 -0.03%) last year. As of June 26, Countrywide transferred 38,000 loans to Specialized Loan Servicing, Select Portfolio Servicing and Green […]
David Dayen wrote about the Consumer Financial Protection Bureau’s (CFPB) release of information breaking down the complaints received so far: So the majority of the issues covered foreclosures and loan modifications. Keep in mind that CFPB didn’t start taking complaints until July 2011. That’s AFTER the robo-signing scandal, after all the revelations of faulty servicing, […]
Mortgage Resolution Partners, a “Community Advisory firm working to stabilize local housing markets and economies by keeping as many homeowners with underwater mortgages in their homes as possible” is suggesting that local municipalities use eminent domain to pry underwater mortgages away from the securitization trusts that proclaim to hold them, and the perversely-incentivized servicers that […]
Hoffman’s Analysis of FJC Study of Twombly/Iqbal Published Professor Lonny Hoffman’s article, “Twombly and Iqbal’s Measure: An Assessment of the Federal Judicial Center’s Study of Motions to Dismiss” has just been published at 6 Fed. Cts. L. Rev. 1 (2012), available here. The abstract reads: This paper provides the first comprehensive assessment of the Federal Judicial Center’s long-anticipated study of motions […]
Martin Andelman recently interviewed William K. Black, law professor and criminologist, former regulator during S&L crisis. We have many posts related to Black’s always fascinating take on the crisis, control fraud, etc.
Gretchen Morgenson writes about Neil Barofsky’s (former federal prosecutor who had the pleasure of being selected to police TARP) new book skewering the crew of “complacent, bank-friendly Treasury officials” with whom he was expected to placate. Barofsky says, “The suspicions that the system is rigged in favor of the largest banks and their elites, so […]
The biggest banks have delayed recognizing losses on seconds for years while paying dividends and lavish executive bonuses. Involuntary sales of seconds at fair market value would end fictitious valuations and require an immediate accounting loss, making dividends and executive bonuses much harder to justify and perhaps even revealing some banks to be insolvent. Rep. […]