The California Reinvestment Coalition, which maintains the badbankmerger.com website, is asking homeowners and former homeowners who dealt with OneWest Bank or Financial Freedom (its reverse mortgage subsidiary) to complete a quick form about their experience.
The OCC has blessed a weak CRA plan from a SIFI bank created by two banks with troubled histories.
“Red tape foreclosures” are a problem that are continuing to plague surviving homeowners throughout California, according to housing counselors and attorneys. New legislation introduced by Senator Leno and Senator Galgiani, The Homeowner Survivor Bill of Rights, Senate Bill 1150, would address this problem. SB 1150 clarifies the responsibilities of a mortgage lender when a borrower … Continue reading Bill Creating Foreclosure Protections for Widows and Heirs Explained in New Video
It’s been a busy couple of weeks for Wells Fargo Bank!
On April 4, the LA Times reported that the US Supreme Court declined to hear Wells Fargo’s appeal of a class action lawsuit against the bank that it lost. After losing this lawsuit, Wells Fargo was ordered to pay $203 million related to overdraft fees it had charged Californians from 2004-2008. Read more here: Supreme Court upholds verdict against Wells Fargo on overdraft fees in California
Then, on April 8, Courthouse News Service broke the news that the City of Oakland’s lawsuit against the bank can proceed: Wells Fargo Must Face Oakland’s Lending Suit
And, last Friday, April 8, Wells Fargo agreed to pay the federal government $1.2 billion related to FHA mortgages the bank had underwritten (rather poorly, it turned out). The irony is especially rich on the heels of a recent Paul Krugman article which suggested that main street banks hadn’t really played a role in the mortgage meltdown. Or, the Op-Ed from GE’s CEO, lecturing Bernie Sanders about “creating jobs.” Just don’t remind GE’s CEO about GE’s role in creating the mortgage meltdown with its lender, WMC Mortgage Corp.
David Dayen has a great new piece (Weak Justice for Wall Street: How a Twisted Double Standard Saved Citigroup Millions) on CitiGroup failing to pay $20 million under the Independent Foreclosure Review:
Did Citigroup have to pay interest or make a late fee on two years’ of missed payments? No. Was its credit rating affected? No. Did it have a lien placed on its headquarters or bank branches, as would many debtors who failed to pay? No. Did the OCC call them in the middle of the night and threaten to garnish their tax refund? No. Were they in any way treated the way “deadbeat borrowers” are in this country? Nah. In fact, they got to use that $20 million for two years, and profit from it, without punishment.
Read the whole article here: Weak Justice for Wall Street: How a Twisted Double Standard Saved Citigroup Millions
Following the OneWest Bank and CIT Group merger? Should read this!
LA Community leaders, harmed homeowners, and advocates all called on the Federal Reserve and OCC to deny the merger unless substantial improvements are made.
Feb 27, 2015- Los Angeles- Yesterday, community reinvestment advocates spoke against the proposed merger of CIT Group and OneWest Bank during a day-long hearing hosted by the Federal Reserve and Office of the Comptroller of the Currency. Some believe the hearing was held in response to the over 21,000 individuals who signed petitions opposing the merger, in addition to 100 California and national organizations who are opposing the merger. CRC live-tweeted the hearing.
Critics raised concerns at the hearing that can be claified into three main categories.
First, the history of OneWest Bank and CIT Group raises serious questions about how communities would fare if the merger is approved.
Second, promises to help individual nonprofits may be helpful for those nonprofits (especially in the short-term) but they…
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Just the messenger folks, contact Rust Consulting for more information:
Joint Press Release
Office of the Comptroller of the Currency
Replacement checks are being mailed this week to borrowers eligible for payment under the Independent Foreclosure Review Payment Agreements and who have not yetcashed or deposited their check, the Federal Reserve Board and the Office of the Comptroller of the Currency announced Wednesday. The checks are being sent by the paying agent, Rust Consulting, Inc., to replaceuncashed checks that have now expired.Agreements reached in January 2013 between federal bank regulatory agencies and 13 mortgage servicers provided $3.6 billion in cash payments to borrowers whose homes were in any stage of the foreclosure process in 2009 or 2010. The mortgages were serviced by one of the following 13 companies, their affiliates, or subsidiaries: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. The payments ranged from several hundred dollars to $125,000 plus lost equity.
Beginning in April 2013, payments were mailed to all of the nearly 4.2 million in-scope borrowers of these servicers. As of January 2015, more than 3.4 million of these checks, totaling more than $3.1 billion, had been cashed or deposited. This represents approximately 87 percent of the total amount of funds these servicers were required to pay.
Nearly 600,000 checks mailed to borrowers of these 13 servicers remain outstanding, and have now expired. As part of the agencies’ ongoing efforts to reach these borrowers, the paying agent was directed to conduct additional searches of updated addresses. The current mailing represents the third attempt directed by the agencies to provide checks to in-scope borrowers. Borrowers who have already cashed or deposited their checks will not receive additional payment. Borrowers must cash or deposit the replacement checks within 90 days of the issue date or the check will be void.
After January 2013, similar agreements were reached with federal bank regulatory agencies that provided cash payments to borrowers whose homes were in any stage of the foreclosure process in 2009 or 2010 and whose mortgages were serviced by GMAC Mortgage and EverBank. As of year-end 2014, payments were mailed to all of the in-scope borrowers of these two servicers. Replacement checks for borrowers of GMAC Mortgage who have not yet cashed or deposited their checks are expected to be mailed by Rust Consulting, Inc., by May 2015.
Borrowers whose mortgages were serviced by one of the 13 servicers that entered into agreements in January 2013 or by GMAC Mortgage should call Rust Consulting, Inc. with questions at 888-952-9105, Monday through Friday between 9:00 a.m. and 8:00 p.m. EST or Saturday between 11:00 a.m. and 4:00 p.m. EST. Borrowers who had a mortgage serviced by EverBank should contact the paying agent for that agreement, Epiq Systems, with questions at 877-819-9754.