The Pressure Mounts!

The Pressure Mounts!
Legal pressures mounting against Banks and Sercvicers! Speaker of the house, Nancy Pelosi, and fellow members of the California Congressional delegation have petitioned federal regulators and the Department of Justice to launch a formal investigation into the foreclosure practices of banks and servicers. The California group sent letters to Fed Chairman Ben Bernanke, Attorney General Eric Holder, and Comptroller John Duggan requesting a federal probe to determine if the banks or servicers committed fraud by utilizing “robo-signers.” On top of the alleged documentation fraud, the lawmakers...
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B of A suspending foreclosures

B of A suspending foreclosures
Decision centered on document preparation and integrity Bank of America (B of A), as of Friday, has become the nation’s first lender to institue a moratorium on foreclosures. The moratorium is designed to give them time to review their process for handling foreclosure documents; and, more importantly, ensure the bank followed correct f0reclosure procedures. According to a source in John Rebchook’s blog: “…is only expected to last 15 to 30 days.” If that is truly the case then I wouldn’t expect this moratorium to provide any long term relief to distressed...
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Ohio Sues Ally Financial!

Ohio Sues Ally Financial!
Attorney General Seeks Civil Penalties! Ohio Attorney General Richard Cordray filed a lawsuit against Ally Financial for allegedly submitting fraudulent foreclosure documents. The lawsuit seeks to block Ally from pursuing any pending foreclosure and selling the home. The Attorney General has also asked for $25,000 in civil penalties for every violation discovered and restitution for the consumer/borrower. Ally maintains insists that their actions were not fraudulent and intends to fight the charges. Cordray is not stopping with Ally. He has requested that JP Morgan Chase and B of A suspend any...
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Wells Fargo buys their way out of probe!

Wells Fargo buys their way out of probe!
Wells Fargo to pay $24 Million to end mortgage probe in 8 states! Wow! That is all one can say anymore when they read the business news. That and shake their head I guess. In breaking news, Wells Fargo has announced that they will pay $24 million in 8 states, including Colorado, to end a probe investigating whether or not lenders made risky mortgages without disclosing the true nature of the loans and their perils. The states said loans known as option adjustable rate loans, or “pick-a-payment” mortgages, were deceptive to borrowers. Those particularly toxic loans allowed borrowers to defer...
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Colorado Attorney General Steps In!

Colorado Attorney General Steps In!
John Suthers General Gets Involved! Following the announcement that GMAC, Bank of America, and JP Morgan Chase were suspending foreclosures in 23 states (to determine whether or not information in the foreclosure documents was properly verified) Colorado Attorney General, John Suthers, has asked Ally Financial to freeze foreclosure activity in Colorado as well. Suthers may request the same of other banks and servicers. The foreclosure halt in the other 23 states was largely due to the fact that they are states with Judicial foreclosures. Colorado is a Judicial and non-Judicial foreclsosure state. The...
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Denver Short Sale relief on the way? Congress Stepping In!

Denver Short Sale relief on the way? Congress Stepping In!
U.S. Representatives Robert Andrews (D-NJ) and Tom Rooney (R-FL) introduced H.R. 6133 last week. H.R. 6133 “Prompt Decision for Qualification of Short Sale Act of 2010” is aimed at keeping potential buyers from walking away from short sales because lenders take months to respond to offers. This legislation aims to “require the lender or servicer of a home mortgage, upon a request by the homeowner for a short sale, to make a prompt decision whether to allow the sale.” (Library of Congress) The National Association of Realtors (NAR) backs this bill. NAR President Vicki Cox Golder...
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