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Mortgage Crisis Watch Business and legal issues affecting: loan repurchases | mortgage-backed securities | mortgage insurance

Tag Archives: settlement

Former JPMorgan Chase Insider Blows the Whistle

Matt Taibbi of Rolling Stone recently profiled the woman JPMorgan Chase paid one of the largest fines in American history to keep from talking in his article, The $9 Billion Witness: Meet JPMorgan Chase’s Worst Nightmare. Alayne Fleischmann, a former Chase manager, revealed the true reason why JPMorganChase settled the claims brought by the DOJ… Continue Reading

BofA Underwater Mortgage Cases Hit Supreme Court

The U.S. Supreme Court will hear two cases brought by Bank of America regarding whether a second mortgage on an underwater property can be voided during Chapter 7 bankruptcy. Both cases involve Florida homeowners who sued to void second mortgages when the debt owed to the holder of the first mortgage exceeded the value of… Continue Reading

Bank of America’s $16.65 Billion Settlement

In what is being reported as the largest settlement ever between the U.S. and a single business entity, Attorney General Eric Holder and Associate Attorney General Tony West announced Thursday that Bank of America Corp. (“BofA”) has agreed to pay $16.65 billion to settle accusations by the Department of Justice that it, as well as… Continue Reading

Robo-Signing Still Making Headlines As Wells Fargo Settles Another Lawsuit

“Robo-signing,” the term coined to refer to bank officials who quickly approved mortgage foreclosure documents without actual knowledge of the validity of the grounds for foreclosure, has been spurring lawsuits and making headlines since as far back as 2010. It was in the news again with the recent settlement by Wells Fargo of another robo-signing… Continue Reading

Bank of America’s $8.5 Billion Settlement Will Not Be Delayed by AIG

Late last month, a New York state judge denied AIG’s request to delay approval of Bank of America’s $8.5 billion settlement with private investors in connection with certain mortgage-backed securities that had soured. Bank of America agreed to the settlement in June 2011 in order to resolve claims brought by institutional investors such as Black… Continue Reading

First Horizon Reaches Mortgage Loan Settlement With Freddie Mac

There is now yet another settlement in the mortgage loan industry to report. First Horizon National Corp. announced last week that it has entered into a definitive resolution agreement with Freddie Mac regarding loan repurchase issues. The agreement purportedly settles all representation and warranty claims related to loans sold by First Horizon to Freddie Mac from… Continue Reading

Mortgage Crisis Penalty for the Real Wolves of Wall Street Could Top $50 Billion

The real wolves of Wall Street–sixteen of America’s largest banks–could end up shelling out more than $50 billion to secure settlements from the federal government in connection with their alleged roles in the mortgage crisis. Of this amount, up to $15 billion would go directly to affected homeowners in the form of cash payments and/or… Continue Reading

Bank of America and Freddie Mac Settle Mortgage Loan Claims

Add yet another major settlement to the still-growing list of huge payouts by the nation’s largest banks to settle claims over toxic mortgage-backed securities. Bank of America has now agreed to pay $404 million to Freddie Mac to resolve all repurchase liabilities on home loans that it sold to the government-controlled mortgage company from 2000… Continue Reading

JPMorgan Chase Agrees to $13 Billion Settlement with the U.S. Justice Department for Knowingly Selling Toxic Mortgage-Backed Securities

On Tuesday, the United States Justice Department announced that it finalized a settlement agreement with JPMorgan Chase for $13 billion. This settlement will resolve a multitude of state and federal investigations into JPMorgan Chase’s sale of residential mortgage-backed securities to investors between 2005 and 2008. In addition to paying fines for securities violations, the proceeds… Continue Reading

Proposed Legislation Would Curb JP Morgan’s Potential Multi-Billion Dollar Tax Windfall

Late last month, we commented on JP Morgan Chase’s $5.1 billion settlement with the Fair Housing Financing Agency (FHFA), as conservator of Fannie Mae and Freddie Mac. The Wall Street Journal has since reported that JP Morgan will be able to deduct that entire amount on its 2013 tax returns, allowing the company to reap… Continue Reading

JPMorgan Chase Agrees to Settle Forced-Placed Insurance Class-Action Lawsuit for $300 Million

Forced-Place Insurance Business Surged Following the Housing Collapse JPMorgan Chase and Assurant Inc. recently agreed to settle a class-action lawsuit initiated in June 2012 for $300 million brought by a class of 1.3 million homeowners nationwide who claimed that they were overcharged for forced-placed insurance. The plaintiffs have also entered into a separate settlement for… Continue Reading

FHFA’s $5.1 Billion Settlements With J.P. Morgan Chase

On October 25, 2013, the Federal Housing Finance Agency (“FHFA”), as conservator of Fannie Mae and Freddie Mac, announced that it will receive settlement payments of $5.1 billion with J.P. Morgan Chase & Co. in connection with claims of alleged violations of federal and state securities laws related to private-label, residential mortgage-backed securities purchased by Fannie… Continue Reading

Wells Fargo Settles Mortgage Buyback Litigation with Freddie Mac for $869 Million

Under Threat of Having to Repurchase Thousands of Home Loans Sold to Freddie Mac Prior to January 1, 2009, Wells Fargo Agrees to Resolve all Remaining Claims in a Single $780-Million Cash Payment As of June 30 of this year, Wells Fargo & Co., this nation’s largest mortgage lender, had received demands to repurchase $1.4… Continue Reading

Bank of America Settles Class Action Brought By Mortgage Investors

$40 Billion Settlement Bank of America  has agreed to settle a class-action lawsuit brought by investors who claimed they were misled by its Countrywide unit into buying risky mortgage securities. Bank of America acquired Countrywide Financial, a California-based lender, in July 2008 for $2.5 billion, but analysts have put the effective cost at more than… Continue Reading

New Precedent that Holds Banks Responsible?

Judge Rakoff awards $90.1 million judgment to Assured Guaranty Corp The legal press is abuzz with reports of a New York federal judge’s award of a $90.1 million judgment to mortgage insurer Assured Guaranty Corp. after a lengthy trial in its suit against Flagstar Bank FSB. The lawsuit arose from Assured’s claims that Flagstar had… Continue Reading

Bank of America Won’t Quit While It’s Ahead

BofA’s About Face on Global Resolutions In previous posts, we highlighted our concerns related to Bank of America’s “repurchase” demands asserted against residential mortgage loan originators. We knew that for years, BofA steadfastly refused to entertain global resolutions of its repurchase claims. Then, beginning in early 2012 and continuing to this day, BofA became hell… Continue Reading

New York Attorney General: Foreclosure Fraud and “Robosigning”

New York Attorney General Takes On Foreclosure Fraud, Including “Robosigning” New York Attorney General, Eric T. Schneiderman,  has announced the introduction of a bill that would protect New Yorkers from fraudulent business practices in the foreclosure process, including “robosigning.” The Foreclosure Fraud Prevention Act of 2012  imposes new criminal penalties for those who intentionally engage… Continue Reading

Lehman: “You Gotta Know When”

On May 3, 2012, U.S. District Judge Lewis Kaplan in Manhattan refused to allow insurers for former officers and directors of Lehman Brothers Holdings Inc. to settle a fraud lawsuit for $90 million. The lawsuit had been brought as a class action by shareholders of Lehman Brothers. Judge Kaplan was not satisfied with the independent… Continue Reading

For Investors There May Be a Brighter Side to the “Robo Settlement”

Further to Phil Stein’s post on Friday, as we continue to parse through the political rhetoric, the fine print of the settlement agreement, and the hoards of misinformation promulgated by the press, we do not believe that investors in securitizations and/or their trustees are entirely left hanging in the wind. While apparently the settlement with… Continue Reading

What a Settlement – Banks and Government Think They Can Work off Debt by Hurting Investors!

Servicers to Receive Credits for Principal Writedowns of Loans American Banker’s Kate Berry reports that mortgage bondholders are now threatening legal action over the $25 billion national mortgage settlement, which provides the five largest servicers with “credits” for principal writedowns. The settlement’s final terms, released last week, offer banks incentives to write down the principal… Continue Reading