The Resolution Law Group: Bank of America’s Countrywide to Pay $17.3M RMBS Settlement to Massachusetts

According to Massachusetts Attorney General Martha Coakley, Countrywide Securities Corp. (CFC) will pay $17 million to settle residential mortgage backed securities claims. The settlement includes $6 million to be paid to the Commonwealth and $11.3 million to investors with the Pension Reserves Investment Management Board. Countrywide is a Bank of America (BAC) unit.

Coakley’s office was the first in the US to start probing and pursuing Wall Street securitization firms for their involvement in the subprime mortgage crisis. Other RMBS settlements Massachusetts has reached include: $34M from JPMorgan Chase & Co. (JPM), $36M from Barclays Bank (ADR), $52 million from Royal Bank of Scotland (RBS), $102 million from Morgan Stanley (MS), and $60 million from Goldman Sachs. (GS).

Meantime, a federal judge is expected to rule soon on how much Bank of America will pay in a securities fraud verdict related to the faulty mortgages that Countrywide sold investors. A jury had found the bank and ex-Countrywide executive Rebecca Mairone liable for defrauding Freddie Mac and Fannie Mae via the sale of loans through that banking unit. The US government wants Bank of America to pay $863.6 million in damages. Mairone denies any wrongdoing.

The case focused on “High Speed Swim Lane,” a mortgage lending process that rewarded employees for the volume of loans produced rather than the quality. Checkpoints that should have made sure the loans were solid were eliminated.

In other recent Countrywide news, a federal judge has given final approval to Bank of America’s $500 million settlement with investors who say the unit misled them, which is why they even invested in high-risk mortgage debt. A number of investors, including union and public pension funds, said they were given offering documents about home loans backing the securities that they purchased and that the content of this paperwork was misleading. They contend that a lot of securities came with high credit ratings that ended up falling to “junk status” as conditions in the market deteriorated.

This payout is the biggest thus far to resolve federal class action securities litigation involving mortgage-backed securities. The second largest was the $315 million reached with Merrill Lynch (MER), which is also a Bank of America unit. That agreement was approved in 2012.

Also, Bank of America was recently named the defendant in a lawsuit filed by the California city of Los Angeles over allegedly discriminatory lending practices that the plaintiff says played a part in causing foreclosures. LA is also suing Citigroup (C) and Wells Fargo (WFC).

The city says that Bank of America offered “predatory” loan terms that led to discrimination against minority borrowers. This resulted in foreclosures that caused the City’s property-tax revenues to decline. BofA, Wells Fargo, and Citibank have said that the claims are baseless.

If you feel you are the victim of Securities Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

The Resolution Law Group: New California Appellate case published on August 8, 2013, “Glaski v. Bank of America”, holds that a homeowner can challenge his lender’s right to foreclose by showing that the Deed of Trust never made it into the securitized trust until after the trust’s closing date.

A new California Appellate case published on August 8, 2013, “Glaski v. Bank of America”, holds that a homeowner can challenge his lender’s right to foreclose by showing that the Deed of Trust never made it into the securitized trust until after the trust’s closing date. This is the case in most loans made in the last 12 years. If the bank foreclosed we should be able to get the homeowner money damages and/or the house back. Or a lawsuit could be filed and a court ruling obtained preventing the court from foreclosing.Recently enacted Sections 2924(a)(6) and 2924.19 of California Civil Code provide the same relief to homeowners.

It is highly suggested that homeowners take this window of opportunity to get relief before the banks get Congress to close this door with national legislation.  If you feel you are the victim of Mortgage Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

 

The Resolution Law Group: The housing market will continue to suffer until it is fixed by the Courts or the Legislature.

When lawyers for the City of Los Angeles filed a lawsuit against Deutsche Bank two years ago, they criticized the world’s fourth-largest bank as among the city’s worst slumlord and sought hundreds of millions of dollars in penalties and restitution.

Despite the fanfare and rhetoric when the case was brought, the city of Los Angeles just announced that it settled with Deutsche Bank for only ten million dollars and that the settlement money was not going to be paid by the bank.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “Deutsche Bank foreclosed on more than 2,000 homes in metropolitan Los Angeles between 2007 and 2011. Many homes fell into disrepair and crime increased in the neighborhoods where the foreclosures took place. “

Mr. Broderick adds that “The housing market will continue to suffer until it is fixed by the Courts or the Legislature. Somebody has to fix the problem. That is why The Resolution Law Group continues its fight for homeowners. Homeowners cannot expect the problem to fix itself.”

The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.

The Resolution Law Group is currently enrolling clients into the pending lawsuit. For further information, visit its website at www.TheResolutionLawGroup.com

If you feel you are the victim of Mortgage Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

The Resolution Law Group approach your case in a manner and passion that gives you the best possible chance to win.

The Resolution Law Group, P.C., is a premier boutique law firm engaging in high-stakes commercial and private disputes, encompassing a broad range of legal services. With a national complex litigation practice and a strategic alliance of contract litigators and law firms, seasoned in targeted legal disciplines, we have emerged as a firm taking on consumer advocacy at the national level.

Resolution Law Group lawyers and its contract litigating partners focus their talents on helping clients achieve the best possible results in their trial and arbitration matters. The Resolution Law Group is directed in its ability to handle the most difficult legal situations with targeted and steadfast intensity.

The Resolution Law Group has a reputation for a “bet the company” commitment and in its efforts to prevail in cases where the opposition is formidable and more securely funded. This area of “Complex Tort Litigation”, at its broadest base is cutting edge, and focused on the lending abuses of the nation’s leading residential lenders, and the impact of those practices on the national economy.

In lender litigation, one specialized arena, the firm is engaging institutions that have comparatively unlimited financial resources. As we now know, the nation’s largest financial organizations, who have been found responsible of fraud, continue to avoid their moral and financial responsibility to the American Homeowner.  Through Complex Tort Litigation, the firm is leveling the playing field and holding these defendants accountable for violations of state and federal laws.

The trial lawyers at The Resolution Law Group approach your case in a manner and with a passion that gives you the best possible chance to win.

The Resolution Law Group have worked on virtually every type of commercial dispute. Although a boutique firm, we have earned a reputation for handling some of the toughest and most high-profile cases in the U.S. High-stakes and huge-exposure matters are the firm’s forté, although we handle all manner of small- and medium-sized disputes for a variety of clients. Our approach to litigation is lean and efficient and is always focused on our client’s goals. The Resolution Law Group’s lawyers bring both intense legal expertise and top-notch trial skills to the task. We represent both plaintiffs and defendants, and we use those collective skills on every matter we handle.

If you suspect that you are the victim of Mortgage Fraud, do not hesitate to email or call please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: Why Complex Litigation?

A complex Tort Litigation lawsuit may be the best defense against your loan servicer, investor or lender who knowingly or negligently originated mortgages and exposed borrowers to economic risks they were not aware of or fully understood.

A legal claim may help homeowners hold the banks responsible for unlawful foreclosures.

A key issue, in consideration of all applicable laws and rules governing lawyers in most states, and the nature of the claims alleged by homeowners against the banks and applicable laws regarding those claims, is whether and how homeowners who were induced to take mortgages from these banks can seek redress for alleged wrongs.

A Complex Tort Litigation case is not about emergency relief–it won’t stop a foreclosure, or get a house back.It may or may not induce the bank to take favorable action as to modifying a loan or placing a hold on foreclosure actions.  Those decisions will most likely be unilateral actions taken by the bank, not actions mandated by the court.

Complex Tort Litigation cases are a longer term potential remedy intended to seek financial damages and restitution for wrongs allegedly committed by the banks and other defendants.

Who is a potential client for multi-party litigation?

  • A client who has had some sort of change in circumstances: either the client lost income, or had a severe decrease in the value of his/her property–or both.
  • A client can also have no financial difficulties and be current on their mortgage payments.
  • Any loan transaction handled by MERS
  • Loans that were securitized
  • A client may have already lost the home due to illegal or premature foreclosure action.

If you suspect that you are the victim of Mortgage Fraud, do not hesitate to email or call please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

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The Resolution Law Group: A Closer Look At The Foreclosure Situation

Missing Paperwork

Jim and his wife, both retired, signed some papers.  “The guy said he’d finish them at the office and send copies,” Jim says.  “We kept waiting for copies and never got them, and I kept calling him.”   The federal Truth in Lending Act requires that you walk out the door with a “rescission notice” that allows you to back out of your refinance within 3 days.

Proof of Security

When Wall Street banks securitized, package, sold and resold our mortgages, they created a system where it is often impossible to figure out who actually own the mortgage notes and therefore has no authority to foreclose on properties.  But the banks and servicers are getting tangles up in their own web.  Recent events have exposed a handful of banks that are throwing families out of their homes even though they don’t have the mortgage note that proves they have the legal right to do so.  There have been instances of two banks trying to foreclose on the same home, and in at least one case, a bank trying to foreclose on a house where the homeowner had never taken out a mortgage on a home.

Loan Modifications Don’t Work

The current statistics are that approximately 94% of the people who apply for a HAMP loan modification with their lenders do not receive it.  First of all, you should know that many people who are considered for a HAMP loan are put into 3 month trial programs where their loan payments are reduced.  What most people don’t know is that the money they are paying to prove they can’t afford the new payment for during the trial plan does NOT go toward their mortgage.  Where does it go and what happened in those months? Well, that is a hard question to answer but here is what we do know.  Your credit gets ruined because technically you are not paying your mortgage, and since you are not paying your mortgage you are falling behind every month you are in the trial period.  Let’s go a step further into the depth of fraud–the banks use multiple strategies to deny your modification.  First of all they lose these documents, all of the ones you sent in go into a black hole and they are sent in to an e-fax type fax machine (a fax that turns your paperwork into a .PDF image on a computer).  You can send the same document 10 times and they will almost always tell you that you never sent in all the items they asked for.  You can send them certified mail–same issue.  Someone signed for them but they don’t have them.  So the three month trial period is now extended indefinitely until you can come up with proof you fit into the program or they decide that you defaulted because of your delinquent payments and put you in foreclosure!  Here is another bank strategy–asking for documents that do not exist.  For example if you are self employed and don’t have them, they don’t care they want them.  Another strategy–if your documents are even a month old they want current documents.  So between losing the documents and insisting on new ones the trial period has gone as long as a year or more. Another thing banks frequently do is tell you that you cannot enter the HAMP trial program unless you are a month behind.  This is not a requirement for the HAMP program.  The law is you must have a hardship.  The banks want you to be behind because it puts the bank in a position of leverage over you and in a position to possibly foreclose.

What about the 6% who get the modification?  Well let’s think about it–if you are in a trial period that means you are behind, so what the bank will do is put that money back into your mortgage and give you the modification.  Basically they increase your mortgage to the point where the modification is practically of no actual benefit, meaning that we have seen modified loan programs that have higher payments than when they fell into hardship.  Because many lenders add unpaid interest and fees to the loan balance, homeowners often walk away with successful modification, most American homeowners are still underwater.  Borrowers who owe more on their homes than they are worth have little incentive to stay, even if their payments are lower.  The problem is that most homeowners know very little about what their available options are in terms of saving their homes.  Desperate to keep their homes, many homeowners accept modification offers they can’t afford.

If you suspect that you are the victim of Mortgage Fraud, do not hesitate to email or call please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

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The Resolution Law Group: Basis Of Our Multi-Party Lawsuits

While each suit is different, below are examples of some of the causes of action we are arguing.  For each client, The Resolution Law Group will argue the causes of action that may apply to that client’s particular circumstances.

 

  • Breach of Fiduciary Duty in the loan modification process (taking trial payments on the promise of a permanent modification then denying the permanent modification)
  • Fraudulent concealment of the facts of securitization process by lenders to homeowners.
  • State consumer protection laws
  • Breach of contract
  • Fraud in the modification process
  • Fair debt collection practices Act
  • Negligent servicing (failing to properly apply payments per Fannie Mac Note Agreement)
  • Truth in Lending Act Violations
  • Real Estate Settlement Procedures Act Violations
  • Common Law Fraud
  • RICO
  • Slander of  Title
  • Unfair Business Practices (falsification of homeowners’ loan documents)
  • Violations of Civil Code (wrongful foreclosure)
  • Violations of Commercial Code (ownership of the note)
  • The fraudulent and illegal use of MERS in connection with those loans and mortgages
  • Defendants’ failure to perform their obligations required, pursuant to accepting TARP funds
  • Defendants’ breach of Plaintiffs‘ statutorily protected rights
  • Defendants breach and willful violation of numerous consumer and homeowner protection statutes and the willful violations of unfair business practices statutes.
  • Accepting money, transferring alleged assets, and foreclosing upon alleged assets in instances where the alleged assets do not exist, and in which these Defendants have no right, title, or interest upon which they can act; and
  • Defendants’ continuing tortuous conduct.

If you suspect that you are the victim of Mortgage Fraud, do not hesitate to email or call please contact The Resolution Law Group at (203) 542-7275 for a confidential, no obligation consultation. Our attorneys are here to help institutional investors recoup losses that are a result of a financial scam or negligence. Your consultation with us is free.

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud