November 14, 2012
Judge Cote (SDNY) Allows FHFA To Proceed in Suit Against JPMorgan
The court said that the FHFA, Fannie and Freddie’s regulator, can proceed with its securities fraud claim relating to billions of MBS bought by the two mortgage companies. The allegations turn on allegedly false representations made by the bank relating to the mortgages underlying the securities.
The quoted representations are pretty strong. One reads:
depositor will not include any loan in the trust fund for any series of
securities if anything has come to the depositor’s attention that would
cause it to believe that the representations and warranties of a seller or
originator will not be accurate and complete in all material respects in
respect of the loan as of the date of initial issuance of the related series of
securities.
The Opinion and Order can be found here:
https://bit.ly/PX00xX
November 14, 2012 | Permalink | No Comments
November 10, 2012
FHFA and CFPB To Create a National Mortgage Database
This is a very big deal. Data on mortgages is very fractured and imcomplete and it is hard for researchers to access in many cases. Private companies that collected such data often are unwilling to share it and some types of information that would be useful to know has not been collected at all. The press release indicates that the “database will primarily be used to support the agencies’ policymaking and research efforts and to help regulators better understand emerging mortgage and housing market trends.” It continues, “the database will include loan-level data about the mortgage including: the borrower’s financial and credit profile; the mortgage product and terms; the property purchased or refinanced; and the ongoing payment history of the loan. Data will be updated on a monthly basis and track as far back as 1998. Additionally, this database fulfills an FHFA requirement under the Housing and Economic Recovery Act of 2008 (HERA) to conduct a monthly mortgage market survey.“
Complete Press Release here: https://www.consumerfinance.gov/pressreleases/federal-housing-finance-agency-and-consumer-financial-protection-bureau-to-partner-on-development-of-national-mortgage-database/
November 10, 2012 | Permalink | No Comments
Federal Court in Texas Rules in Favor of Counties in Recording-Fee Case Against MERS
Margaret Cronin Fisk & Tom Korosec report a decision by the U.S. District court in Dallas to not dismiss a case brought by several Texas counties against MERS and Bank of America for lost recording fees. Margaret Cronin Fisk & Tom Korosec, Bank of America, MERS Lose Bid to Dismiss Texas Fee Suit, Bloomberg Businessweek (May 24, 2012).
November 10, 2012 | Permalink | No Comments
CFPB Issues Supervisory Highlights
The Fall 2012 Highlights state that the Bureau will have three guiding principles
1. Focused on consumers;
2. Driven by data; and
3. Examinations conducted consistently across sectors.
The Bureau found that effective systems to ensure compliance with Federal consumer financial law were lacking in one or more financial institutions. (p. 3)
The Bureau also discovered “numerous violations of Federal consumer financial law.” (p. 7)
In particular, the Bureau noted significant examples of non-compliance with RESPA, TILA and HMDA. (p. 13)
The complete document is here: [link]
November 10, 2012 | Permalink | No Comments
November 9, 2012
Federal Prosecutors Sue Bank of America Over Mortgage Program
Ben Protess reports that federal prosecutors in New York sued Bank of America on Wednesday, accusing it of carrying out a mortgage scheme that defrauded the government during the depths of the financial crisis. Ben Protess, Federal Prosecutors Sue Bank of America Over Mortgage Program, The New York Times Deal Book (Oct. 24, 2012)
November 9, 2012 | Permalink | No Comments
Florida Appellate Court Holds that a “Non-Holder” does not have Standing
In Cutler v. U.S. Bank National Association, ____ So.3d ____ (Fla.App. 2 Dist. 2012), a Florida Appellate court held that if a bank could not establish that it was the holder of the mortgage note or allonge, which took effect prior to the date of the complaint, it did not have standing to bring a foreclosure claim.
November 9, 2012 | Permalink | No Comments
