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Lawsuits claim banks failing to honor loan modifications

Justice League

Bank of America sold the mortgage servicing rights of $650,000 home loans to a company called Green Tree. Green Tree said it received no record from Bank of America of Adella King’s loan modification and declared her mortgage in default.

Consumer lawyers in Western Washington say they are seeing increasing instances of banks failing to honor home loan modifications.

“It scared the heck out of me. I pretty much lost it because I thought I was going to lose everything,” said Adella King of Enumclaw.

King says her home of 20 years was foreclosed upon after her bank denied that she had been granted a modification.

King says Bank of America gave her the loan modification – a reduction in her monthly payment – in 2013 after her husband’s death. But later that year, she says, BOA sold the loan to Green Tree Loan Servicing.

“(Green Tree) said they had received…

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Deutsche Breeds Scandal After Scandal

Findsen Law

Photo Apr 02, 10 48 36 PMDepartment of Justice proposed a 14-billion dollar fine for Deutsche’s mortgage backed securities scandal (you’re thinking, “you’re going to have to be more specific; which one?”)  Wall Street J. 

Deutsche’s stocks took a tumble late yesterday and continuing today. 

Before that, last week it was reported in the New Yorker that Deutsche had a newer 10 billion dollar scandal related to the bank’s  apparent willingness to launder Russian money.

But in the New Yorker piece,  I liked this little capsule review of Deutsche’s role in the housing crisis, and how a former risk analyst explained that the bank was “structurally designed by management to allow corrupt individuals to commit fraud.”

In 2007, the bank’s share price hit an all-time peak: a hundred and fifty-nine dollars. But as it grew fast it also grew loose. Before the housing market collapsed in the United States, in 2008, sparking a global financial crisis…

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June report by an advocacy group found similar types of unnecessary and predatory accounts have been opened at BofA, J.P. Morgan and SunTrust

Justice League

National Employment Law Project website:

Banking on the Hard Sell incorporates information gleaned from class action lawsuits, landscape literature on banking practices, and interviews with dozens of workers employed by numerous banks in many positions to investigate the dangers of aggressive sales metrics to customers and workers alike. We find that workers suffer harassment and threats in order to make ever-changing over-aggressive quotas, and that low base wages mean they need to put their own financial interests above those of the customers. We note that at least one large U.S. bank, Amalgamated, does not use these types of quotas and that in other countries, agreements between bank workers and their employers ensure decent quality jobs and banking practices that put the customer first.

Key Findings

  • Even six years after launching new consumer protections, the number of complaints to the federal Consumer Financial Protection Bureau (CFPB) concerning “Bank Account or Services”…

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CHAIN OF NOTHING: Wells Fargo Fraud Is Causing the Curtain to Fall Revealing Fraud in Foreclosures and Ultimately Mortgage Bonds

Livinglies's Weblog

“Defendant Wells Fargo’s deceptive and intentional conduct displayed a complete and total disregard for the rights” of the couple, wrote Judge Elliott, a circuit judge in the 43rd Judicial District of Missouri. “Wells Fargo took its money and moved on, with complete disregard to the human damage left in its wake.”

see http://www.nytimes.com/2016/09/22/business/in-wells-fargos-bogus-accounts-echoes-of-foreclosure-abuses.html?_r=0

Gretchen Morgenson of the New York times has revived the issues of fraudulent foreclosures in mainstream media by publishing a sharply critical attack on Wells Fargo. Like Elizabeth Warren has done, Morgenson brings attention to two connected policies of the TBTF banks: (1) the the recent revelation that Wells Fargo forced 8 accounts upon each customer of the commercial banking side of the bank — regardless of whether the customer even knew those accounts existed and (2) the obvious similarity with the fraudulent sales of MBS and the fraudulent foreclosures initiated by Wells Fargo.

Senator Elizabeth Warren…

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I called the Wells Fargo ethics line and was fired

Justice League

wells fargo whistle blowers 1CNN Money:

Now CNNMoney is hearing from former Wells Fargo (WFC) workers around the country who tried to put a stop to these illegal tactics. Almost half a dozen workers who spoke with us say they paid dearly for trying to do the right thing: they were fired.

“They ruined my life,” Bill Bado, a former Wells Fargo banker in Pennsylvania, told CNNMoney.

Bado not only refused orders to open phony bank and credit accounts. The New Jersey man called an ethics hotline and sent an email to human resources in September 2013, flagging unethical sales activities he was being instructed to do.

Eight days after that email, a copy of which CNNMoney obtained, Bado was terminated. The stated reason? Tardiness.

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Gretchen Morgenson: In Wells Fargo’s Bogus Accounts, Echoes of Foreclosure Abuses

I have seen up close and personal what Wells Fargo will do when it wants to foreclose.They have no hesitation about using false documents and even forging the signature of a Texas notary on a document on one case I worked on several years ago. When the notary journal for the notary was reviewed there was no entry for any signature on any document on the date claimed by Wells Fargo. Wells Fargo is not making mistakes. Their actions are intentional.

Livinglies's Weblog

John Stumpf, the chairman and chief executive of Wells Fargo, won a dubious achievement award from one of his interrogators during Tuesday’s scorching hearings on Capitol Hill. The bank’s yearslong practice of opening bogus accounts for customers and charging fees to do so, said Senator Jon Tester, Democrat of Montana, had united the Senate Banking Committee on a major topic for the first time in a decade. “And not in a good way,” he added.

But this was not the first time problematic and pervasive activities at Wells Fargo succeeded in uniting a disparate group. After observing years of abusive mortgage loan servicing practices at the bank, an increasing number of judges hearing foreclosure cases after the financial crisis grew to understand that banks could not always be trusted in their pleadings.

This was a major shift: For decades, the nation’s courts had been largely pro-bank when hearing…

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DOJ mortgage settlement with Deutsche Bank to cost $14B?

The really outrageous part is that Deutsche Bank will be able to deduct some, if not all, of the penalty on their taxes. Not to mention that homeowners who got shafted will receive little if any benefit from this settlement. Just more window dressing.

Justice League

While an official settlement is not yet public, it’s rumored that the U.S. Justice Department proposed that Deutsche BankAG pay $14 billion to settle a case that dates back to the financial crisis, according to an article in The Wall Street Journal.

According to an the article by Aruna Viswanatha, Jenny Strasburg and Eyk Henning:

The U.S. Justice Department proposed that Deutsche Bank AG pay $14 billion to settle a set of high-profile mortgage-securities probes stemming from the financial crisis, according to people familiar with the matter, a number that would rank among the largest of what other banks have paid to resolve similar claims and is well above what investors have been expecting.

However, nothing is set in stone yet.

Read on.

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