The Resolution Law Group: Wells Fargo Reaches $591 Million Mortgage Deal with Fannie Mae

Wells Fargo & Co. (WFC) has arrived at a $591 million mortgage settlement with Fannie Mae (FNMA). The arrangement resolves claims that the banking institution sold faulty mortgages to the government run-home loan financier and covers loans that Wells Fargo originated more than four years ago.

Fannie Mae and Freddie Mac (FMCC) were taken over by the US government five years ago as they stood poised to fail due to faulty loans they bought from Wells Fargo and other banks. The two mortgage companies had bundled the mortgages with securities.

With this deal, Wells Fargo will pay $541 million in cash to Fannie Mae while the rest will be taken care of in credits from previous buy backs.

It was just a couple of months ago that Wells Fargo settled its disputes over faulty loans it sold to Freddie Mac with an $869 million mortgage buyback deal. According to Compass Point Research and Trading LLC, between 2005 and 2008, Wells Fargo sold $345 billion of mortgages to Freddie Mac. Compass says the bank sold another $126 billion to Freddie in 2009.

Also settling with Freddie Mac today is Flagstar Bank (FBC) for $10.8M over loans it sold to the mortgage company between 2000 and 2008. That agreement comes following Flagstar and Fannie Mae settling mortgage claims for $93 million over loans the former sold to the latter between January 2000 and December 31, 2008.

Fannie Mae and Freddie Mac have been trying to get banks to repurchase these trouble loans for some time now. In light of this latest settlement with Wells Fargo, Fannie Mae has reached settlements of about $6.5 billion over loan buy backs, including a $3.6 billion deal with Bank of America Corp. (BAC) and Countrywide Financial Corp. and $968 million with Citigroup (C). Earlier this month, Deutsche Bank (DB) consented to pay $1.9 billion to the Federal Housing Finance Agency over claims that it misled Freddie and Fannie about the mortgage backed securities that the latter two purchased from the bank.

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.

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The Resolution Law Group: JP Morgan Chase admitted that it broke the law in the “London Whale” trading debacle. While it is commonplace for banks to settle cases and pay money, it is uncommon for a Wall Street Bank to admit guilt.

JP Morgan Chase admitted that it broke the law in the “London Whale” trading debacle. While it is commonplace for banks to settle cases and pay money, it is uncommon for a Wall Street Bank to admit guilt.

The “Whale” losses stemmed from wrong-way bets made by JP Morgan’s London office involving complex derivatives. JP Morgan Chase agreed to pay $920 Million in addition to admitting guilt.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “While the admission of guilt is unprecedented, it is also appropriate. However, the admission was done at the corporate level. The behavior and culture on Wall Street must change, and that will only happen when CEOs and other senior executives are personally charged and held responsible.“

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.

The Resolution Law Group: It has been a very good week for AIG in California litigation. AIG prevailed in the publicized Michael Jackson trial. Less publicized, but probably more valuable to AIG is the recent ruling by a Federal Judge in the central district of California.

It has been a very good week for AIG in California litigation. AIG prevailed in the publicized Michael Jackson trial. Less publicized, but probably more valuable to AIG is the recent ruling by a Federal Judge in the central district of California.

AIG previously sued Bank of America over fraudulent mortgage securities. Bank of America argued that AIG had no standing to sue because it had transferred that right when it sold the instruments to the federal Reserve Bank of New York in 2008.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “Judge Pfaelzer’s finding that AIG has standing to sue Bank of America may also be bad news for other banks that sold troubled mortgage securities to the insurer. AIG has not yet sued other institutions, but we know from public records that AIG suffered at least $11 Billion in losses involving other banks.”

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

The Resolution Law Group: A Bankruptcy Court in Wisconsin has invalidated a bank’s security interest and treated the mortgage loan as an unsecured debt.

A Bankruptcy Court in Wisconsin has invalidated a bank’s security interest and treated the mortgage loan as an unsecured debt. While this is not unique, the Court’s published opinion has garnered some attention.

In re Couillard, starts, as follows: “Whether one is baking a cake, building a house, or recording a mortgage, sometimes even the slightest deviation from the directions can lead to catastrophe. Cakes don’t rise, buildings fall down, and … mortgages aren’t perfected.”

Under applicable Wisconsin state law, a conveyance that is not recorded is generally void as against a subsequent purchaser who records first. In Couillard, since the recorded mortgage was not in the chain of title, the Court concluded that it was not properly recorded.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “This isn’t rocket science. Banks need to take all required steps in order to perfect security interests, or they will be unsecured.”

Mr. Broderick adds that “It is refreshing to see a Judge holding the banks to do what is required. That doesn’t happen in every instance. 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

The Resolution Law Group: Darryl Woods, the Chairman of Mainstreet Bank in Ashland, Missouri, pleaded guilty to charges that he used the TARP bailout money given to his bank in 2008 to buy an oceanfront condo in Florida, rather than use the money for its intended purposes.

Darryl Woods, the Chairman of Mainstreet Bank in Ashland, Missouri, pleaded guilty to charges that he used the TARP bailout money given to his bank in 2008 to buy an oceanfront condo in Florida, rather than use the money for its intended purposes.

Mainstreet bank applied for and received just over One Million Dollars in TARP funds. Woods took over $380,000 and used that money to buy his luxury condo.

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “At a time when many Americans were losing their homes, and the Government made money available for the specific purpose of assisting the homeowners, Mr. Woods’ actions are reprehensible. For a Bank Chairman to siphon off public funds to pay for an oceanfront condo is shameful“

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

The Resolution Law Group: In a trial now pending in the U.S. District Court, Southern District of New York (Manhattan), The Government is suing Bank of America’s Countrywide unit for issuing defective mortgages and then selling them to Fannie Mae.

In a trial now pending in the U.S. District Court, Southern District of New York (Manhattan), The Government is suing Bank of America’s Countrywide unit for issuing defective mortgages and then selling them to Fannie Mae.

An ex-Countrywide employee has testified that pursuant to the company’s “High Speed Swim Lane” program, loan applications were pushed through without taking the time to evaluate the application. Evidence was presented at trial showing that the entire review process for one loan was 13 minutes, from beginning to end. The review process began at 3:53 pm and the loan was “cleared to close” at 4:06pm!

Geoffrey Broderick, the senior partner of the Resolution Law Group, says “Obviously, the review process must take more than 13 minutes to complete. A bank employee would have to review, at a minimum, title searches, deeds, taxes, a review of the applicant’s credit and employment history, a determination of whether the home was located in a flood zone, property appraisals, and a comparison with similar properties, among other things.“

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.

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.