Tag Archives: JPMorgan Chase

Robosigning ‘sweatshop’

There are millions of backlogged foreclosures currently in the U.S.

Last year, claims of robosigning, unlawful signing of documents, were uncovered and then just recently a settlement with the major banks, and those in need of help with foreclosure, was finalized to make right for all of the deceptive practices uncovered.

Talks about fraudulent mortgage practices might have never totally summed up the actual extent of how many documents were being signed each day.

Business Insider decided to put some numbers along with the allegations and figure out just how many documents were being signed each day.

The results?

Let’s just say the headline of the article includes a “sweatshop” reference.

“One Bank of America manager claimed she sign nearly 68,000 documents (93 per day) and notarized 1,390 over a two year period,” as reported in the Business Insider article.

Also, an Ally employee admitted he “routinely signed 400 affidavits per day and up to 10,000 per month, certifying that he had personal knowledge of the facts when he did not and without reviewing the supporting documentation referenced in them.”

“Auditors found notaries would sign off on documents before they were even cleared by affiants (workers who sign an affidavit and attest to its truthfulness before a notary),” according to Business Insider.

In addition to the what were described as “disturbing findings”, Citi did not even have a process for signing foreclosure documents until November 2009 and BofA allegedly outsourced foreclosure documents to law firms for review but nonlawyers would often forget the attorney’s signatures.

“One attorney’s signature appeared on five separate foreclosure documents–each in different handwriting,” reported Business Insider.

Robosigning is not the only form of deceptive foreclosure practices that has gone on in the last several years. There are 335 civil law violations that might have been violated when your documents were drafted.

The Mortgage Forensic Audit can be used to uncover these predatory lending practices.

These deceptive practices have wrongfully placed people in mortgage default, throughout the country, in foreclosure and caused major backlog throughout the states.

Foreclosure lawyers can help decrease the backlog and keep homeowners, in their homes, where they should be.

Call The Foreclosure Law Center today, for a FREE consultation. 1-888-600-5505

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Official Foreclosure Fraud Settlement Break Down

“How far does $26 billion go”?

Reporters at ProPublica and the rest of the country (especially those in need of help with foreclosure) have been wondering that question since the settlement became final last month.

Last week details and terms of the agreement became final.

“Bank of America, Citigroup, Ally Financial (formerly GMAC) and JPMorgan Chase are on the hook for billions, which will be divvied up among penalties paid to the federal and state governments, direct payments to homeowners wrongfully foreclosed upon and credits to the banks for providing “consumer relief,”’ according to ProPublica.

Here’s the breakdown as provided by Cora Currier in ProPublica:

$1.4 billion: total direct payments from the settlement to homeowners who were wrongfully foreclosed upon between 2008 and 2011.

750,000: foreclosed homeowners expected to qualify.

$2,000: estimated average payout.

3.8 million: total foreclosures between 2008 and 2011.

25 percent: expected increase in foreclosures in 2012. That would mean about 1 million foreclosures, up from 804,000 last year, partly as a result of banks clearing a backlog held up by the settlement proceedings.

$3 billion: total for which banks can be credited for offering refinancing to underwater homeowners who owe more than their homes are worth. (There are questions about exactly how the credits will work and why the banks are being given incentives rather than punishment.)

$17 billion: total from the settlement that banks can be credited for offering loan modification ($10 billion) and other forms of “consumer relief” ($7 billion) for underwater borrowers — counted separately from the refinancing incentives.

$11.1 millionunderwater mortgages in the U.S.

$717 billionnegative equity from those underwater mortgages.

3 million: estimated underwater mortgages owned or guaranteed by government-controlled Fannie Mae or Freddie Mac, which are not covered by the settlement.

5 percent: portion of the country’s underwater mortgages that might qualify for modification under the settlement, according to a Brookings Institute estimate. (Officials have put the number closer to 10 percent.)

$10.9 billion: Bank of America’s total outlay in the settlement, more than any other bank.

$2 billion: Bank of America’s fourth-quarter 2011 profit.

$1 billion: settlement of allegations that Bank of America passed bad loans on to the Federal Housing Administration to insure. A government audit, made public with the settlement, showed similar patterns at other banks.

$6 billion: amount that the FHA paid in insurance claims on defaulted mortgages handled by the five banks between 2008 and 2010.

60-200: documents signed daily by different individual loan processors working for Bank of America, according to the government audit.

12-18 inches: height of the stacks of documents one Bank of America employee signed “without a review.”

$1 million: fine to be levied on the banks for each violation of the terms of the overall settlement, escalating to $5 million for repeat violations. (Exactly how fines will be tallied is still unclear.)

Call The Foreclosure Law Center today, for a FREE consultation. 1-888-600-5505

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Pruitt rejects relief money for Oklahoma foreclosure victims—Only state to opt out

Two weeks ago, when the foreclosure fraud settlement finally became official, 49 states accepted the deal while Oklahoma Attorney General Scott Pruitt decided against having the state sign on.

The state would have received $18.6 million in cash, to be used for any purpose, and a designated $10.2 million to be directly paid to those in need of help with foreclosure, according to the state breakdown provided by the Iowa Attorney General’s Office, in NewsOK.

Instead, Pruitt decided to cut the $10.2 million relief from the amount and accept only the $18.6 million. That extra money would have been sure mortgage rescue aid for those affected by deceptive foreclosure practices. Now there are no guaranteed funds for Oklahoma victims.

“Pruitt said he refused to join other states in a federal foreclosure agreement on the principle that the agreement went beyond the scope of attorneys general,” as reported in NewsOK.

Now Oklahomans are the only people in the country who will not be able to apply for the $1.5 billion earmarked for victims.

Although citizens of Oklahoma are not applicable for those funds, there are foreclosure lawyers who can help with other options to restructure mortgages and compensate for the banks’ crimes.

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Lawsuit filed alleging Wells Fargo and Chase charge excessive default fees

Wells Fargo and JPMorgan Chase are being hit with a class action lawsuit alleging that they have been illegally charging excessive and deceptive mortgage default service fees against homeowners who were late on their mortgage payments, according to National Mortgage Professional Magazine.

Between the two banks, they currently service about 25 percent of all U.S. mortgages.

The suit states that they allegedly cheated hundreds of thousands of borrowers by charging abusive mortgage default fees, as reported in NMP Magazine.

The amount of inflated charges varies from $20 to $135. According to NMP Magazine, the extra charges are often listed under vague categories such as “other” or “miscellaneous” in attempt to conceal what they are for.

“Our investigation has revealed that as a result of these practices, banks often make more money from loans that are in default than loans that are current,” said Mark Pifko, one of the Los Angeles attorneys involved in the case, in an interview with NMP.

The illegal excessive fees just make it increasingly more difficult for those who need help with foreclosure to stand a chance to get mortgage relief and avoid foreclosure.

“Loan agreements require that default-related services must be reasonable and appropriate. Banks are not allowed to mark-up the charges so they can make a profit, but that is exactly what they have done. In many cases, the banks are overcharging by as much as 300 percent,” Pifko said.

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Banks reach $25 billion foreclosure fraud settlement with 49 states—Is it enough?

After over a year of back-and-forth negotiations, the five major banks–JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, and Ally Financial—have finally reached a settlement on deceptive foreclosure practices of $25 billion with 49 states, according to Mark DeCambre, the New York Post.

Can you really put a price on the foreclosure fraud mess?

Homeowners in need of help with foreclosure have suffered substantially. Mixed opinions are going around on whether this deal will efficiently help them recover from the deceptive practices many of them have endured.

The deal had a previous deadline of Friday Feb. 3 before it was postponed to Mon. Feb 6, although, Tuesday night was when they ended up officially settling the deal.

New York Attorney General Eric Schneiderman “finally found an accord he couldn’t refuse” and decided to join the settlement along with California’s Attorney General, Kamala Harris–two of the most avid holdouts–reported DeCambre.

Just this past Friday Schneiderman filed a lawsuit against BofA, JPMorgan Chase and Wells Fargo on accusations of fraud using the MERS system, an electronic-mortgage data base system created in the mid-1990s.

The U.S. is calling this deal “the largest federal-state civil settlement in our nation’s history,” with the banks committing to $20 billion in various forms of mortgage relief and an additional $5 billion to state and federal governments, according to a Bloomberg report.

The $25 billion has been broken down differently for each state. Now, time is the remaining factor in seeing if these efforts will help save the homes of the millions of homeowners affected.

Only 20 percent of homeowners successfully restructure mortgages through their banks, as shown in a study done by ProPublica. Whether or not the mortgage relief plans from this settlement help homeowners, a foreclosure lawyer and Mortgage Forensic Audit can create the kind of legal leverage needed to secure lower monthly payments and save homes.

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New York Attorney General Sues three major banks

Top mortgage lenders face serious fraud allegations.

Last Friday New York Attorney General Eric T. Schneiderman began a lawsuit against Bank of America, Wells Fargo and JPMorgan Chase on accusations of fraud involving an electronic mortgage database, as reported in the New York Times.

The database allegedly resulted in deceptive foreclosure practices including the use of false documents and other illegal practices.

The mortgage database, called Mortgage Electronic Registration System (MERS), was originally created to track and organize mortgage ownership by top lenders in the country.

“The mortgage industry created MERS to allow financial institutions to evade county recording fees, avoid the need to publicly record mortgage transfers and facilitate the rapid sale and securitization of mortgages en masse,” said Schneiderman in an interview with the New York Times.

The Times reported that about 70 million mortgage loans have been registered in the MERS system since the mid-1990s when it was created.

It seems every day there is a new case discovered where people who need help with foreclosure are taken advantage of in the process of restructuring their mortgage.

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Foreclosure fraud settlement deadline set for Feb 3.—What will the end result be?

After months and months of negotiating and reviewing settlement details, the deadline is three days away.

The banks involved are BofA, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial.

There have been many talks of the settlement ending up somewhere near $25 billion but now what it comes down to is which states decide to join.

“The final value of any settlement will depend on which states it includes, and could drop sharply if states like California, one of the hardest hit by the foreclosure crisis, do not join,” as reported by Reuters.

Last week in Obama’s State of the Union address, he announced the possibility of a new formed group of investigators that would be solely in charge of handling deceptive foreclosure practices. Since then, the settlement began to pick up steam but people are still unsure of what the right action is.

Whether or not the settlement does go through, there are still other options to find help with foreclosure. People countrywide have taken advantage of the Mortgage Forensic Audit and in result received the loan modification they were unable to obtain and their homes were saved.

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Foreclosure settlement possibly threatened

The ongoing discussion between the banks and states of a $25 million settlement might be derailed by President Obama’s new expanded plan.

In Obama’s State of the Union address, Tuesday, he shared that he has asked his attorney general to create a special unit of prosecutors to expand investigations into lender foreclosure practices.

JPMorgan Chase & Co (JPM.N) Chief Executive Jamie Dimon said that these investigations could stop settlement talks with the states over foreclosure practices, according to Reuters.

It is not yet clear how these investigations will differ from those already in progress.

If you need help with foreclosure and believe that you might have fallen victim to deceptive foreclosure practices, the Mortgage Forensic Audit can be the right step to take in restructuring your mortgage and saving your home.

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Banks are close to reaching foreclosure fraud settlement

Deceptive foreclosure practices are not new problems.

They’ve been going on for decades but have just recently been uncovered over the past few years. People in need of help with foreclosure have, many times, been unfairly placed deeper into their problems rather than helped out of them out.

About two years ago, major banks temporarily suspended foreclosures following the uncovering of several deceptive practices.

“That has backlogged millions of foreclosures that must be cleared before the housing market can fully recover,” reported Derek Kravitz, Associated Press, in the San Francisco Chronicle.

The settlement between the nations major banks (BofA, JPMorgan Chase, Wells Fargo, Citibank and GMAC), and the states, should be somewhere near $25 billion.

After more than a year of back and forth negotiations, officials are finalizing the agreement, stating the sum and conditions of the settlement, and are expected to complete the terms for release within the next few weeks.

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O.J. Simpson, Felony to Foreclosure

Felons need help with foreclosure too.

In September 2000, O.J. Simpson took out a $575,000 mortgage to purchase his $522,000 one-story home in Florida, according to examiner.com.

About 8 years later, he was arrested and sentenced to a 33-year prison term after being charged with kidnapping and armed robbery.

Allegedly, JPMorgan Chase initiated the foreclosure process after Simpson accumulated hundreds of thousands of dollars in mortgage debt on his former suburban Miami home, reports GossipExtra.com.

The 4,233 square foot home, south of Miami, has four bedrooms, four baths, a pool, and a guest house.

In 2010, the Miami-Dade County property appraiser assessed the property at $478,953.

According to GossipExtra.com, Simpson now owes $724,354.15, including principal, interest, attorney fees and penalties. He stopped paying his mortgage in 2010.

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