Sixth Circuit Mitan v. Freddie Mac – Reversed Summary Judgment for Freddie- Structural Defects Render Foreclosure Absolutely Void

Mitan v. Federal Home Loan Mortgage Corp., No. 12-1168, (6th Cir. Dec. 12, 2012) Michigan law distinguishes between foreclosures with notice defects and those with “structural defect[s] that go[] to the very heart of defendant’s ability to foreclose by advertisement in the first instance.” Davenport, 739 N.W.2d at 384. Notice defects render a foreclosure voidable. […]

Foreclosure Links: Independent Review Muckraking and Frontline Unmasks the Two-Tiered Justice System

Lots of action in the foreclosure world this week… Must see TV PBS Frontline The Untouchables Did this show’s airing on Tuesday lead to Lanny Breuer’s resignation from the Dept. of Justice?   Must read posts: Yves Smith at Naked Capitalism’s Series on Independent Foreclosure Review Whistleblowers Bank of America Foreclosure Reviews: Whistleblowers Reveal Extensive […]

AIG Sues Maiden Lane and Fed For the Right to Assert Tort and Securities Act Claims Against BoA For Bad Portfolio

AIG “sold” (was bailed out) a huge portfolio of residential mortgage-backed securities to the Fed via the Maiden Lane vehicles.   AIG claims that it retained its tort claims against Bank of America.   Therefore: In August 2011, AIG filed a $10 billion lawsuit against one of the most blatant offenders, Bank of America and certain […]

More on the Independent Review Horses*i$t

I got these links from Barry Ritzholtz’s Morning Reads on the Big Picture: • The latest foreclosure horror: the zombie title (Reuters) see also Bank Deal Ends Flawed Reviews of Foreclosures (NYT) Don’t read that New York Times article if you need to be in a good mood.

Bill Black on Lew For Replacement of Geithner

Bill Black, our favorite outspoken ex-regulator (S&L crisis), criminologist, and law professor on our new prospective Treasury Secretary, Lew: The fifth less obvious problem is that each of these key advisors is so slavish in his dedication to our systemically dangerous institutions (SDIs) (the so-called “too big to fail” banks) that they have embraced crony […]

Feds Replace Flawed Foreclosure Review With Vague $8.5 Billion Settlement by Paul Kiel ProPublica, Jan. 8, 2013, 9:13 a.m. The Independent Foreclosure Review was supposed to be a full and fair investigation of the big banks’ foreclosure abuses, and it was trumpeted as the government’s largest effort to compensate victimized homeowners. Federal regulators, who designed […]