Sunday, April 17, 2016

Wells Fargo admits deception in $1.2 billion U.S. mortgage accord



Wells Fargo & Co (WFC.N) admitted to deceiving the U.S. government into insuring thousands of risky mortgages, as it formally reached a record $1.2 billion settlement of a U.S. Department of Justice lawsuit.

The settlement with Wells Fargo, the largest U.S. mortgage lender and third-largest U.S. bank by assets, was filed on Friday in Manhattan federal court. It also resolves claims against Kurt Lofrano, a former Wells Fargo vice president.  

According to the settlement, Wells Fargo “admits, acknowledges, and accepts responsibility” for having from 2001 to 2008 falsely certified that many of its home loans qualified for Federal Housing Administration insurance. MORE

Sunday, February 7, 2016

Arkansas homeowner wins verdict for damages caused by vibrations from nearby oil drilling operations


 

The federal Eighth Circuit Court of Appeals has affirmed a jury verdict in favor of a landowner who alleged her home was damages by vibrations from drilling operations. The judgment in favor of the plaintiff was affirmed in Hiser v. XTO Energy. Inc., No. 13–3443 (8th Cir. Oct. 3, 2014).

Ruby Hiser filed a lawsuit against XTO Energy Inc. in Arkansas. Ms. Hiser had lived in her home for six years before XTO began drilling operations nearby. XTO began drilling a gas well on property adjacent to Ms. Hiser’s home in February 2009. According to Ms. Hiser, it was around this time that she started feeling vibrations. Ms. Hiser testified at trial that she feels the vibrations and hears her house “crackle” when XTO’s drill is in use. She testified that people who stayed the night in her home also felt the vibrations. Several witnesses also testified at trial they had felt the vibrations when visiting Ms. Hiser’s property.

Justin Hall, a licensed professional engineer, examined Ms. Hiser’s home on June 5, 2009. Mr. Hall testified that he could hear the nearby drilling during his inspection of Ms. Hiser’s home. Based on his experience, the inspection, and the proximity of the drilling equipment to Ms. Hiser’s home, approximately 150 feet at the time, Mr. Hall concluded that XTO’s drilling was the source of the vibrations. Mr. Hall opined that the damage to Ms. Hiser’s home is consistent with vibrations from drilling, not the result of poor construction.  MORE
 


The federal Eighth Circuit Court of Appeals has affirmed a jury verdict in favor of a landowner who alleged her home was damages by vibrations from drilling operations. The judgment in favor of the plaintiff was affirmed in Hiser v. XTO Energy. Inc., No. 13–3443 (8th Cir. Oct. 3, 2014).
Ruby Hiser filed a lawsuit against XTO Energy Inc. in Arkansas. Ms. Hiser had lived in her home for six years before XTO began drilling operations nearby. XTO began drilling a gas well on property adjacent to Ms. Hiser’s home in February 2009. According to Ms. Hiser, it was around this time that she started feeling vibrations. Ms. Hiser testified at trial that she feels the vibrations and hears her house “crackle” when XTO’s drill is in use. She testified that people who stayed the night in her home also felt the vibrations. Several witnesses also testified at trial they had felt the vibrations when visiting Ms. Hiser’s property
Justin Hall, a licensed professional engineer, examined Ms. Hiser’s home on June 5, 2009. Mr. Hall testified that he could hear the nearby drilling during his inspection of Ms. Hiser’s home. Based on his experience, the inspection, and the proximity of the drilling equipment to Ms. Hiser’s home, approximately 150 feet at the time, Mr. Hall concluded that XTO’s drilling was the source of the vibrations. Mr. Hall opined that the damage to Ms. Hiser’s home is consistent with vibrations from drilling, not the result of poor construction.
Mr. Hall conducted a second inspection in January of 2011. He observed that the drilling area had moved closer to Ms. Hiser’s home. Mr. Hall noted, among other things, excessive shifting of the foundation and numerous nail pops in the sheetrock uncharacteristic of normal foundation settlement. Mr. Hall again attributed the damage to nearby drilling and vibration.
At trial, Ms. Hiser testified that she spent approximately $30,000 repairing her home. Mr. Hall testified that, based on his examination of Ms. Hiser’s home, it would cost $55,000 to repair the damage. Ms. Hiser also testified that she was not able to enjoy her house the same way she did before XTO started drilling and that she experienced noise on and off for approximately two years.
There was also evidence at trial that Ms. Hiser complained early and often about XTO’s drilling. She first complained in February 2009, shortly after XTO began drilling its first well on her neighbor’s property. XTO drilled six gas wells on Ms. Hiser’s neighbor’s property between February 2009 and August 2011. Despite Ms. Hiser’s insistence that the drilling was causing damage to her home, XTO never had a construction expert examine Ms. Hiser’s property. Instead, it relied on the assessment of Jay Jones, one of its landmen. XTO did not offer to test for vibrations until after Ms. Hiser filed her lawsuit and after substantial damage had been done to her home.
The trial resulted in a jury verdict in favor of the plaintiff on Ms. Hiser’s claims of negligence, private nuisance, and trespass under Arkansas state law. The jury awarded Ms. Hiser $100,000 in compensatory damages and $200,000 in punitive damages.
XTO appealed the verdict to the Eighth Circuit. On appeal, XTO argued that a new trial was warranted because of evidence the trial had discussed fracking during deliberations but no evidence regarding fracking had been presented at trial.
- See more at: https://www.hop-law.com/arkansas-homeowner-wins-verdict-for-damages-caused-by-vibrations-from-nearby-oil-drilling-operations/#sthash.5yt9iGuC.dpuf

Tuesday, October 20, 2015

SEC charges former Fannie Mae, Freddie Mac executives with fraud



By David S. Hilzenrath and Zachary A. Goldfarb December 16, 2011 Follow @Goldfarb

The SEC charged six former executives of Fannie Mae and Freddie Mac with securities fraud Friday, saying they misled the public about the companies’ exposure to subprime loans during the mortgage meltdown.

The executives charged in the civil suits include Daniel H. Mudd, former chief executive of Fannie Mae, and Richard F. Syron, who was chairman and chief executive at Freddie Mac.

The executives are among the most prominent individuals the Securities and Exchange Commission has accused of wrongdoing related to the financial crisis, and the legal action comes at a time when the SEC and the Justice Department are facing criticism for not doing more to hold executives accountable.  MORE

Saturday, July 19, 2014

Yuba jury awards homeowner $16 million in mortgage case


By Dale Kasler       dkasler @sacbee.com
Published: Friday, Jul. 18, 2014 - 2:43 pm

It started out as a simple loan modification for a troubled homeowner. It turned into a $16.2 million jury verdict against a nationwide loan-servicing company.

A Yuba Superior Court jury this week awarded $16.2 million in damages to a homeowner who nearly lost his home to foreclosure after the loan servicer botched his mortgage modification, the homeowner’s lawyers said Friday.

Phillip Linza, a homeowner in Plumas Lake, was awarded the damages after a three-year battle against PHH Mortgage Services, a loan servicer based in Mount Laurel, N.J.

Linza’s attorneys, Andre Chernay and Jon Oldenburg of the United Law Center in Roseville, said the award included $514,000 in compensatory damages and $15.7 million in punitive damages.

Read more here: http://www.sacbee.com/2014/07/18/6566661/yuba-jury-awards-16-million-in.html#storylink=cpy

Wednesday, May 7, 2014

Secret Inside BofA Office of CEO Stymied Needy Homeowners

From:  Bloomberg 


REQUEST FROM A READER - We are trying to get the world's attention about the fraud.  This article details some of it.  We would like to share it with Bank of America's customers.  Are you on facebook?  If you would like to help please copy/paste onto Bank of America's facebook page on Monday, May 12.  You cannot 'post' but you can 'comment'.  Pick any of their posts and add attached link as a comment.  Masses of people posting will get their attention and more people will understand what is happening to this country.

We are announcing this via email so the posts on Monday, 12th will be a surprise.

Please share with friends.

Many thanks,
Susan...and the million plus victims

by Hugh Son 



Photographer: Phelan M. Ebenhack/Bloomberg
Isabel Santamaria, top right, her husband Abdiel Echeverria, top left, daughter Rebecca, 13, lower left, son... Read More


Isabel Santamaria thought she finally caught a break in her effort to save her Florida home from foreclosure after nine frustrating months: She reached Bank of America Corp.’s Office of the CEO and President. 

What the mother of two autistic children didn’t know is that her case would find its way to contractors, including Urban Lending Solutions in Broomfield, Colorado, far from the bank’s headquarters in Charlotte, North Carolina. Bank of America hired the firm founded by Chuck Sanders, a former Pittsburgh Steelers running back, to clear a backlog of complaints about a federal program designed to prevent foreclosures. 



“It felt like a big deal, reaching the CEO’s office,” Santamaria, 43, said of having her June 2010 call escalated to what she was told was the bank’s top level. “It only happened because I complained to my congressman, the attorney general, television stations. They only put you there if you make a big stink, but once you’re there, they still don’t help you.”  MORE


Thursday, March 27, 2014

Two Cent Foreclosure

From:  7News - WSVN



It's no secret that there have been a lot of abuses in the huge number of foreclosures filed in recent years, but can you imagine a foreclosure over two cents? Hard to believe, but Carmel Cafiero is on just such a case.
WSVN -- This Lighthouse Point condo has been home to Gloria Jacques for eight years, but for the last two of those years, the 80-year-old has been in fear of losing her home to foreclosure despite never having missed a mortgage payment.
Her attorney says Bank of America filed for foreclosure over two payments that were each one penny short, payments that the bank deducted from her account.
Tom Murphy: "Well, Bank of America shortchanged the payment that they were making to themselves for her mortgage."
Carmel Cafiero: "So it was a bill pay type thing?"

Friday, March 7, 2014

How a Bad-ass California Mayor is Taking on Big Banks

From:  Alternet 

by Ellen Brown 

Mayor Gayle McLaughlin is using eminent domain to help homeowners and challenge Too Big to Fail.


March 3, 2014  |  In a nearly $13 billion settlement with the US Justice Department in November 2013, JPMorgan Chase admitted that it, along with every other large US bank, had engaged in mortgage fraud as a routine business practice, sowing the seeds of the mortgage meltdown. JPMorgan and other megabanks have now been caught in over a dozen major frauds, including LIBOR-rigging and bid-rigging; yet no prominent banker has gone to jail. Meanwhile, nearly a quarter of all mortgages nationally remain underwater (meaning the balance owed exceeds the current value of the home), sapping homeowners’ budgets, the housing market and the economy. Since the banks, the courts and the federal government have failed to give adequate relief to homeowners, some cities are taking matters into their own hands. 

Gayle McLaughlin, the bold mayor of Richmond, California, has gone where no woman dared go before, threatening to take underwater mortgages by eminent domain from Wall Street banks and renegotiate them on behalf of beleaguered homeowners. A member of the Green Party, which takes no corporate campaign money, she proved her mettle standing up to Chevron, which dominates the Richmond landscape. But the banks have signaled that if Richmond or another city tries the eminent domain gambit, they will rush to court seeking an injunction. Their grounds: an unconstitutional taking of private property and breach of contract.
How to refute those charges? There is a way; but to understand it, you first need to grasp the massive fraud perpetrated on homeowners. It is how you were duped into paying more than your house was worth; why you should not just turn in your keys or short-sell your underwater property away; why you should urge Congress not to legalize the MERS scheme; and why you should insist that your local government help you acquire title to your home at a fair price if the banks won’t. That is exactly what Richmond and other city councils are attempting to do through the tool of eminent domain. MORE