By Lynn Szymoniak • May 1, 2016
“Oops – Our Bad – The Banks Didn’t Have Standing to Foreclose”
In the first four months of 2016, Florida’s 4th District Court of Appeals reversed many foreclosure judgments, primarily on standing grounds. In these appellate opinions, the appellate court repeatedly held that the banks failed to prove that they had standing to foreclose when they failed to prove that they had possession of the indorsed original note at the time the complaint was filed. These were all cases where the foreclosure was sought by a bank that was not the original lender. In the vast majority of foreclosure cases decided after 2008, the lender and the plaintiff/forecloser were different entities because the lender sold the loan. [Read More]
By Lynn Szymoniak • March 7, 2016
Trump Mortgage was a company started in 2006 and closed 18 months later, following a scandal that involved significant over-stating of the credentials of the company’s president, E.J. Ridings. When Trump Mortgage closed, Donald Trump licensed his name to First Meridian Mortgage as his next partner in the residential mortgage business. How well did First Meridian Mortgage, a/k/a Trump Financial, operate?
First Meridian Mortgage made money, but not because of its careful lending practices. First Meridian Mortgage made money by selling its loans to big banks and securities companies so that the loans could be included in residential mortgage-backed trusts … [Read More]
By Lynn Szymoniak • February 1, 2016
TWO SMALL REAL ESTATE INVESTORS
WH was a 73-year-old man, living in an apartment near Ft. Lauderdale, when he ventured into the world of real estate in 2007. WH bought three houses in West Palm Beach, Florida in four months. He paid $195,000 for a house at 2408 Saginaw Avenue on February 16, 2007.(See Photo 1.01.) Less than two weeks later, on February 28, 2007, he paid $250,000 for a house at 514 44th Street in West Palm Beach.(See Photo 1.02.) Less than three months later, on May 14, 2007, he paid $230,000 for a house at 715 42… [Read More]
By Lynn Szymoniak • January 15, 2016
Goldman Sachs announced on January 14, 2016 that it will pay approximately $5 billion to settle federal and state investigations of its mortgage-related practices in the years before the financial crisis of 2008. Goldman will pay $2.39 billion in civil monetary penalties, $875 million in cash payments and provide $1.8 billion in consumer relief in the form of mortgage forgiveness and refinancing. Goldman, like other Wall Street banks, has been under investigation for allegedly misleading investors on the safety of the securities they created by bundling and selling mortgages.
Goldman Sachs was one of the financial giants that was most … [Read More]