Articles Tagged with foreclosure defense

There is no singular public official who bears the entire burden for failure to prosecute banks during the foreclosure crisis. However, many of them do have some responsibility, considering some 9.3 million American families lost their homes during the late Bush and most of the Obama years, just before, during and after the housing market crashed. foreclosure defense

There was a perfect storm of wrongdoing by lenders, brokers and others – including inflated appraisals, falsified underwriting and improper placement into subprime loans, which all led to misconduct and fraud in loan servicing, securitization, foreclosures and loan modification. Millions of phony documents were used as evidence to secure eviction. In other words, there was unlawful fraud going on in every step of the process. And despite this, there was very little accountability by those in power which, at the time, were mostly Democrats.

Case-in-point, as noted recently by The New Republic, is Kamala Harris. As the previous attorney general (now serving as a U.S. senator), Harris overrode a recommendation from state prosecutors to pursue civil enforcement action against OneWest Bank, a company under the direction of now-treasury secretary Steven Mnuchin, accused of repeatedly violating state foreclosure laws. Harris declined to provide a reason for this, and it has caused many even on the left to view her with great skepticism.  Continue reading

Wells Fargo has repeatedly found itself answering to government regulators for violating consumer rights – most recently for overcharging military veterans on home finance loans.foreclosure attorney

Just one week before announcing the $108 million settlement it had reached with the federal government for this wrongdoing, the bank revealed it was paying out $80 million in compensation for wrongfully force-placing car insurance on some 570,000 consumers. A significant number of those customers their vehicles wrongly repossessed when they couldn’t keep pace with the artificially high payments – which impacted their credit scores too. And just before that, the bank was answering to allegations that more than 5,000 former employees opened 2 million unauthorized accounts in order to rake in sales and bonuses. The bank paid an $185 fine, plus another $142 million settlement following a class action in that case.

In the case of military veterans, it all stems from a 2006 lawsuit claiming the Interest Reduction Refinance Loans through the Department of Veteran Affairs – issued by Wells Fargo – should not have been eligible for guarantees through the VA because the bank was reportedly charging loan fees that weren’t authorized. The VA then paid claims after a number of those loans defaulted, and the government then sought redress from Wells Fargo. Continue reading

The Miami foreclosure defense lawyers at Jacobs Keeley have not been shy with criticism of the current presidential administration, in particular with regards to a failure to hold big banks and executives accountable for their central role in the foreclosure crisis. Unfortunately, it does not seem as if the new administration is going to take any more of a hard line on this kind of issue, despite repeated promises to “drain the swamp.” whitehouse

One must look no further than the recent appointment of Steve Mnuchin, Wall Street financier, to the cabinet as Secretary of Treasury. Mnuchin is a career banker. He spent 17 years at Goldman Sachs, ultimately attaining the position of partner. He oversaw a privately-owned hedge fund and later was a top fundraiser for Republican president-elect Donald Trump. He also worked for a time at a California bank that NPR recently referred to as a “foreclosure machine” in the midst of the housing bust.

Essentially, Mnuchin and others were searching for ways to turn a profit from the ruins of the housing market. He and a group of other billionaire investors purchased IndyMac, a bank that took a nosedive after its risky mortgage loans turned sour. He and the others bought it with a promise to pay future losses above a certain threshold – which they did, and after six years, sold it as OneWest at a $1.5 billion profit for $3.4 billion. How did they do this? On the backs of suffering homeowners.  Continue reading

Some 6 million Americans were stripped of their homes during the housing crisis and subsequent economic recession. It was soon apparent that the underlying cause of the crisis were unethical and fraudulent practices by some of the biggest banks in the world. frontdoor

The federal government through its U.S. Department of Justice vowed to make these big banks pay dearly for the harm caused to homeowners and taxpayers. And ultimately, federal prosecutors did finagle some large settlements from six of the biggest banks, which allowed those firms to resolve criminal allegations. None of the top-level banking executives served time in prison.

In all, there were more than 30 mortgage-related settlements reached and more than $110 billion collected by the DOJ, federal housing agencies and state Attorneys General. But there has been very little accounting of where that money went. Presumably, it was to go to taxpayers. Specifically, it was supposed to go in large part to those who had lost their homes or suffered other serious financial woes after the fallout.

Some of the money was used for that purpose. But as a recent investigation revealed, much of it was not. In fact, one of the biggest benefactors of that money? The federal government. Continue reading