Wells Fargo Settlement with Department of Justice Announced for Bankrupt Homeowners Who Did Not Receive Change of Payment Notices

On Thursday, the Department of Justice released a settlement with Wells Fargo concerning Wells Fargo’s failure to send payment change notices and updated escrow statements to homeowners in bankruptcy: Settlement Terms Wells Fargo agrees to pay a total of $81.6 million to homeowners who were in bankruptcy between Dec. 1, 2011, and March 31, 2015, and who were […]

ResCap Proceedings and Relevant Court Documents

Relevant Court Documents Please find below a link to the following important document recently filed in the bankruptcy proceedings of Residential Capital, LLC, Case No. 12-12020 (MG) (USBC, Southern District of New York): No 1926 Third Revised Joint Omnibus Scheduling Order No. 1887 Notice of Hearing and Debtors’ Second Supplemental Motion Pursuant to Fed. R. […]

Victory for Consumer Debtors in Kentucky: Ocwen Bullied Debtors Into Forbearance Agreements

From the National Consumer Bankruptcy Rights Centerblog: In a victory for consumer debtors, the Bankruptcy Court for the Eastern District of Kentucky disallowed Ocwen’s proof of claim for late fees and charges, and awarded judgment, including punitive damages in the amount of $25,000.00, in favor of the debtor due to Ocwen’s “gross reckless[ness]” in accounting and […]

ResCap Musical Chairs

Pipeline Press, Rob Chrisman says: The industry continues to watch ResCap’s bankruptcy, even though at this point it is not front page news. The highly leveraged ResCap subsidiary had made Ally (its parent company) an unattractive asset because of the fears that the bank may become responsible for ResCap’s debt. On May 15, 2012, Ally put […]