February 2014

Ocwen: Where Cheaters Prosper

February 26, 2014 Mark Cullen

From David Dayen at The American Prospect:

Think about this: Ocwen has shown nothing but contempt for actually servicing mortgages, yet they want to securitize them. It’s like a dishwasher going to a restaurant owner to get an advance on years of salary—though the analogy only works if the dishwasher spends her days breaking every dish she washes.

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February 21, 2014 The Housing Justice Foundation

Ocwen Financial needs some good news. On February 19, 2014, Congresswoman Maxine Waters called for more regulatory scrutiny of the sale of billions of dollars of mortgage servicing rights to specialty firms. There are only two such big specialty firms buying most of these servicing rights, Ocwen Financial and NationStar.… [Read More]

JP Morgan to Pay Government $614 Million for False Claims

February 5, 2014 Lynn Szymoniak

From Christina Rexrode at Market Watch:

The Department of Justice in Manhattan and other government agencies that J.P. Morgan “admitted, acknowledged and accepted responsibility for” submitting false claims to government agencies. According to prosecutors, the bank asked for government-backed insurance and refinancing for thousands of mortgage loans that were not eligible for either…

The government trusts the banks to submit only eligible loans.

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Banks, Mortgage Companies Defrauded HUD

February 5, 2014 Mark Cullen

Kate Berry at National Mortgage News writes about Lynn Szymoniak’s pending litigation:

…The lawsuit is a stark reminder that banks still face massive litigation and potential settlements for wrongdoing from the mortgage boom and financial crisis. On Wednesday, JPMorgan Chase acknowledged that it violated the False Claims Act and agreed to pay $614 million to settle claims that it improperly approved Federal Housing Administration and Veterans Affairs loans that did not meet underwriting standards.

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U.S. Seeks $2.1 Billion from Bank of America for Fraud

February 5, 2014 Lynn Szymoniak

From Nate Raymond at Reuters:

The U.S. government has raised the amount it is seeking in penalties from Bank of America Corp to $2.1 billion after a jury found the bank was liable for fraud over defective mortgages sold by its Countrywide unit.

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February 5, 2014 Lynn Szymoniak

Richard A. Oetheimer has written an overview of foreclosure defense in Massachusetts including a useful review of judicial decisions on foreclosure cases over the last few years. The full PDF can be found on the ABA website. [Read More]