Housing Wire reports on bank attorneys preparing for “showdowns” with the RMBS working group on fraud cases. Well, they have to justify their billings to their bosses, don’t they? The reality of whether banks should sweat the investigation is far less clear. In fact, we have more information from a couple sources today that suggest the attorneys don’t have to keep up this facade.
|By: David Dayen Saturday May 26, 2012 10:00 am|
|By: David Dayen Monday May 14, 2012 2:10 pm|
Ally Bank, formerly known as GMAC Mortgage, the nation’s fifth-largest mortgage servicer, put its mortgage subsidiary Residential Capital into bankruptcy. This is part of a continuing effort on the part of Ally, which is still majority-owned by the US government, to escape its mortgage liabilities. But what does it mean for the foreclosure fraud settlement, to which Ally is a signatory?
|By: David Dayen Thursday March 15, 2012 2:20 pm|
Remember after Martha Coakley sued leading banks for illegal foreclosures in Massachusetts, when Ally Bank, one of the market leaders, stopped most of their lending in the state in a fit of pique? They actually only dropped their correspondent lending business, where a smaller bank does the origination and they pick up the loan later. They always continued direct lending to homeowners in Massachusetts. The entire enterprise was a bullying attempt to create bad headlines for Coakley and perceived repercussions for her actions.
Now, three months later, Ally has quietly returned to even the correspondent lending business.
|By: David Dayen Tuesday March 13, 2012 8:00 am|
I’ve read most of the foreclosure fraud settlement documents that were filed in federal court in DC yesterday. Let’s take a look at the penalties being paid to the states. It seems Ally plead “I’m too poor to pay” and got $100 million knocked off it’s fine, while others will get credit for doing what banks normally do.
|By: emptywheel Tuesday November 16, 2010 2:21 pm|
Liveblogging of the Senate Banking Committee hearing on foreclosure fraud continues. Senator Richard Shelby was actually pretty good, but then Sens. Mike Johanns and Bob Bennett went to some length to try to pretend the banksters weren’t doing what they were doing.
|By: David Dayen Tuesday November 16, 2010 12:35 pm|
This hearing is the latest example of national policymakers getting involved in the foreclosure fraud issue. The Congressional Oversight Panel warning of the enormous risk from the failures of servicers was the first report of its kind at the federal level to take full measure of the situation, and this is the first Congressional hearing. Senators on the Democratic side like Jeff Merkley and Sherrod Brown are sure to press the bank representatives aggressively on why foreclosure mitigation programs have failed, and why they used false documents to evict people from their homes. The ranking member on the Republican side, Richard Shelby, wants to investigate failures at the major loan servicers.
|By: emptywheel Friday November 12, 2010 12:45 pm|
Let me make a rare statement: I agree with just about everything Sen. Richard Shelby (R-AL) said in his call for an investigation of mortgage servicers. But Shelby’s choice of targets sure does bear watching.
|By: David Dayen Wednesday October 13, 2010 11:45 am|
Ally Financial (the parent company of GMAC Mortgage) expanded their review of their foreclosure processes to all 50 states, the second mortgage servicer to do so after Bank of America; the Obama Administration supports the 40-state investigation by Attorneys General into foreclosure fraud.
|By: David Dayen Friday October 8, 2010 12:50 pm|
Attorney General Cordray is going to need some time to prosecute this case. But he has an election coming up in a little over 3 weeks, against former Senator Mike DeWine. The latest poll shows him slightly behind, 44-38. It is imperative that Cordray and his team be given the time to reach discovery in this case and untangle the crooked web everyone suspects is at the heart of the mortgage lending industry.
|By: David Dayen Wednesday October 6, 2010 2:10 pm|
In addition to seeking penalties from GMAC in the lawsuit for their violations of state laws and perpretration of fraud, Cordray wants a “preliminary and permanent injunction” against all foreclosures by GMAC in any pending case. If he were to file future lawsuits – and I believe he will – he would move to do the same in those cases. That would effectively end all foreclosure proceedings in Ohio, a judicial foreclosure state.