32 More Foreclosures Dismissed for Lack of “Documentation”

By Moe Bedard & Aaron Krowne

In another Ohio ruling on November 14th, State District Judge Kathleen Mc Donald O’Malley dismissed 32 more foreclosures for lack of “documentation”. Read the ruling... [Read More]

In 1968, Congress passed Proxmire’s Truth in Lending Act

By Moe Bedard

Will the Truth in Lending Act be the law that saves the American consumer from foreclosure and financial death? Will attorneys finally get a clue and learn this area of ”mortgage law” and start the massive wave of class action lawsuits that have yet to make noise in our Federal Court system?

The facts are that this law is very uncharted territory and it is a new and exciting frontier for those of the legal cloth that wish to explore this potentially lu... [Read More]

California Civil Code 1632 and What it Means to Non-English Speaking Borrowers

There is a little known law in the state of California that was set in place to protect non-English speaking borrowers against predatory lenders. The funny thing is that it was never, ever followed and I have yet to see one case of a lender or broker following this law. Many homeowners could stop foreclosure if they only knew about this law that protects them against these abuses.

The law in particular that relates to non-English speaking borrowers is California Civil Code 1632.... [Read More]

FBI: 200 agents working on mortgage fraud probe

WASHINGTON (Reuters) - The FBI has more than 200 agents and 33 task forces addressing mortgage fraud, has more than 1,300 cases under investigation and has targeted 19 large companies, FBI Director Robert Mueller said on Friday.

"Clearly, in the last couple of years, we have seen a substantial increase in mortgage fraud cases, and my anticipation is that we will continue to see that increase," he told a question-and-answer session after addressing the National Press Club.

Mueller said there... [Read More]

Deutsche Bank Foreclosures Tossed Out of Ohio Federal Court - “They Own Nothing!”

Judge Christopher A. Boyko of the Eastern Ohio United States District Court, on October 31, 2007 dismissed 14 Deutsche Bank-filed foreclosures in a ruling based on lack of standing for not owning/holding the mortgage loan at the time the lawsuits were filed.

Judge Boyko issued an order requiring the Plaintiffs in a number of pending foreclosure cases to file a copy of the executed Assignment demonstrating Plaintiff (Deutsche Bank) was the holder and owner of the Note and Mortgage as of the da... [Read More]

Rescission in a Class Action Under TILA - Andrews v. Chevy Chase Bank

Andrews v. Chevy Chase Bank, FSB (2007 WL 112568, E.D. Wisconsin,
January 16, 2007).

Plaintiff filed a class action against Chevy Chase Bank alleging various violations of the federal Truth-in-Lending Act (TILA).

Borrowers alleged that the lender:

(1) failed to properly disclose the paymentschedule because the schedule did not reflect that the required payments were duemonthly;

(2) did not clearly disclose the APR and variable rate feature, based in part on disclosures refle... [Read More]

The RESPA mess: how the Good Faith Estimate has everyone in an uproar

A single sheet of paper has the real estate industry in an uproar.


Every time a potential home buyer applies for a mortgage, he or she receives a document known as the Good Faith Estimate, which spells out the thousands of dollars in fees the buyer is expected to pay when the deal closes.

The problem is the document is confusing, lenders use different versions, and there is plenty of room for abuse, if not outright fraud.

"The unnecessary complexity of mortgages has actually greatly co... [Read More]

Class action against credit card companies gets the green light

A proposed class action against the credit card companies for allegedly conspiring with each other to limit the resolution of cardholder complaints was revived by the Second Circuit, which uses the opportunity to remind us about standing, a legal doctrine which can kill any good lawsuit.

The case is Ross v. Bank of America, decided on April 25. The plaintiffs claim that, in violation of the antitrust laws, the credit card companies illegally conspired with each other to force cardhol... [Read More]

Truth-in-Lending Disclosure Failure Leads to Mortgage Becoming "Unsecured"

It is a fascinating tale that I suspect won't be ignored for long. For those few people familiar with the Federal Truth-in-Lending Act [TILA], this won't be much of a surprise. To everyone else, read on.

What happens if a lender fails to comply with the TILA rules? The borrowers are allowed to RESCIND THE LOANS AND VOID THE MORTGAGES ON THEIR HOMES. The mortgage lender is then just another unsecured creditor, who must get in line behind everyone else who may have filed a lie... [Read More]

Predatory Lending Bill Video

Bill is the closet congress has ever been to blocking predatory lending.

Please watch the MSN Video Here

Proposed RESPA Rules Threaten Notary Signing Agents

The U.S. Department of Housing and Urban Development (HUD) has proposed rules to clarify the Real Estate Settlement Procedures Act (RESPA), and is now seeking comment from everyone in the industry on how they may be improved. The proposal requires the person who is presiding over a signing appointment — as part of the closing process — to read aloud a prepared script to the borrower and explain it if the person has questions. HUD is proposing the closing script as a way to more thoroughly... [Read More]

N.Y. Judge Finds Homeowner Liable for Loan

Neither the state nor the federal Home Ownership and Equity Protection Act of 1994 allow a mortgagor to "escape their legal obligations simply because they borrowed too much," wrote the judge.

Declining to halt a foreclosure sale, a Long Island, N.Y., judge has been left with the "unhappy result" of a loan that should not have been taken for which the homeowner is nevertheless responsible.

The case of Alliance v. Dobkin, 10625/06, is illustrative of the nationwide mortgage lending... [Read More]

The Subprime Hall of Shame Expands; Welcomes Chris Dodd

The Subprime Hall of Shame just got a lot bigger, based on this Portfolio magazine investigation into Countrywide Financial Corp.'s special VIP program involving mortgage loans at favorable rates for friends of former CEO Angelo Mazilo.

Former Fannie Mae CEO James Johnson, tapped to help vet vice presidential candidates for Sen. Barack Obama, resigned this week from that position after reports that he received loans at special rates from Countrywide under the program.

Now, Portfolio's... [Read More]

Firm pursuing foreclosure might not be your lender

Figuring out which company to deal with during a foreclosure can be daunting. Even if the original mortgage was with a company recognized by the borrower, that company may not be the one acting against the borrower in court.

For example: Wells Fargo filed more than 3,600 foreclosure lawsuits in Iowa from January 2005 to February 2008, more than any other company identified in Iowa court data. But the company could be taking legal action because it processed payments for another mortgage company... [Read More]

Federal Judge Rejects Homeowners' MERS Lawsuit

A federal judge has dismissed a proposed class action lawsuit filed by homeowners who cast doubt on the legitimacy of the nation's leading mortgage registration firm to represent lenders in foreclosures.

U.S. District Judge Timothy J. Corrigan in Jacksonville, Fla., ruled that Mortgage Electronic Registration Systems did not misrepresent itself or hide its role as a nominee for mortgage lenders.

The plaintiffs claimed MERS "engaged in a pattern and practice of illegal debt collection practic... [Read More]

U.S. Seeks New Curbs on Credit-Card Practices

Federal bank regulators on Friday proposed a new set of rules to make it more difficult for credit card companies to raise rates arbitrarily, conceal high penalty fees or engage in other practices that consumer groups say are abusive.

Under the proposal, credit card companies would generally have to give consumers more time to make payments before they are considered overdue. The companies would not be permitted to steer payments to pay down the portion of the bill that had lower interest char... [Read More]

Lawsuit settled over disputed credit card debt

But Paoletta, of 484 Hawthorne Place, said his case is an example of what is wrong with the credit and banking establishment, and his experience is typical of people hounded by debt collectors employing illegal tactics.
“I’m not alone,” Paoletta said of credit problems. “Anywhere you go, people are talking about the same thing.”

In the federal suit filed in September, Paoletta alleged that the defendants, who include Hudson and Keyse LLC, a debt collection agency, and attorney Amato and his fi... [Read More]

House representatives argue that new Federal funds are needed to defend homeowners against foreclosu

By Moe Bedard

Amen!

It finally looks like members of our congress finally realize that the Hope Line, AKA 995-Hope, operated by Neighborhood Works, is not a cure all for distressed homeowners.

In fact, many who call the Hope Line are in need of legal assistance. HUD trained counselors who operate these phone lines, do not have the legal savy or mortgage skills to properly serve borrowers that have been victimized by predatory lending,... [Read More]

Mortgage Ruling Could Shock U.S. Banking Industry

Mortgage ruling could shock U.S. banking industry

Mon Jun 30, 2008 3:14pm EDT
By Gina Keating - Analysis
LOS ANGELES (Reuters) - A lawsuit filed by a Wisconsin couple against their mortgage lender could have major implications for banks should a U.S. appeals court agree that borrowers can cancel their loans en masse when their lenders violate a federal lending disclosure law.
The case began like hundreds of others filed since the U.S. housing boom spawned a rise in sales of adjustable rat... [Read More]

Ernst Statement: Mortgage brokers gave subprime borrowers overpriced home loans

Center for Responsible Lending
April 8, 2008

Today, we are reporting that mortgage brokers gave subprime borrowers overpriced home loans, even as they provided competitive rates to people with stronger credit.

For brokered loans made between 2004 and 2006, we estimate that typical subprime borrowers will pay $5,222 more in interest over four years than if they had gotten the same loan directly from a lender.

These results have serious implications for the estimated five million sub... [Read More]

US appeals court orders new credit card case trial

A U.S. appeals court reinstated a class-action suit on Friday against a group of banks that force their credit card customers to use arbitration instead of the courts to settle disputes.

The credit cardholders "alleged that the banks (with other co-conspirators, including American Express Co and Wells Fargo & Co) illegally colluded to force the cardholders to accept mandatory arbitration clauses in their cardholder agreements," according to the ruling by the 2nd U.S. Circuit Court of Appea... [Read More]

Summary judgment proper in certain cases

Q: I was sued by my lender, and the judge decided that a jury did not need to hear my case. I lost my house and owe $50,000, with the judge awarding the lender everything by "summary judgment." Is this "summary judgment" legal? Don't I have a right to have a jury hear my case?

A: Summary judgment is legal, and you are entitled to have your case decided by a jury - unless a judge determines that it's not necessary and he can decide your case through a summary judgment.

It may sound un... [Read More]

Economic and Housing Rescue Legislation Introduced in the House

Washington, DC - In response to the nationwide economic downturn caused by the housing and credit crisis, members of the House Financial Services Committee today introduced legislation to combat the unprecedented rise in foreclosures, and the associated impact on cities and states. The legislation first announced by Chairman Barney Frank in March, will be divided into two measures: H.R. 5830, the FHA Housing and Homeowne... [Read More]

Miami Gardens council takes aim at predatory lenders

In light of the region's mortgage crisis, the Miami Gardens City Council on Wednesday unanimously agreed on a measure it says will help curb predatory lending practices.

The measure calls for the Federal Reserve to implement strict regulations on lenders who engage in abusive practices and set unreasonable debt-to-income ratios on loans.

''People who weren't credit-worthy were given loans but weren't able to sustain them,'' Councilman André Williams, who sponsored the resolution, said Th... [Read More]

Loan servicer Homecomings sued over fees

A group of homeowners is suing Homecomings Financial, a Bloomington-based loan servicer handling nearly 800,000 mortgages, accusing it of charging dubious fees as it processes homeowners' monthly payments.
The lawsuit, filed Thursday in U.S. District Court in Minneapolis, is the latest in a slew of legal actions around the country against mortgage lenders and the servicers who process payments for them since the crash of the subprime mortgage industry. Attorneys are seeking national class statu... [Read More]