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This website is a personal blog maintained by Steve Glista, who is a licensed attorney in the states of Michigan and Oregon. Steve is a lawyer at Honigman, Miller, Schwartz and Cohn, LLP. Opinions or comments expressed on this site belong to the commenter or the author and do not represent legal advice from or the official position of the Honigman firm.

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Kalamazoo Real Estate Auction: Forclosures and Unpaid Taxes

Over 300 properties up for sale next week Tuesday, . . . → Read More: Kalamazoo Real Estate Auction: Forclosures and Unpaid Taxes

New York AG sues big NY banks for mortgage fraud

About damn time, too.  The MERS fraud has been openly documented for everyone to see, and it has been widely discussed in public for over a year now.  Lots of white-collar bankers deserve to go to prison.  Kudos to AG Schneiderman for taking steps to make that happen.

Attorney General Eric T. Schneiderman today filed a lawsuit against several of the nation’s largest banks charging that the creation and use of the private national mortgage electronic registry system known as MERS has resulted in a wide range of deceptive and fraudulent foreclosure filings in New York state and federal courts, harming homeowners and undermining the integrity of the judicial foreclosure process. The lawsuit asserts that employees and agents of Bank of America, J.P. Morgan Chase, and Wells Fargo, acting as “MERS certifying officers,” have repeatedly submitted court documents containing false and misleading information that made it appear that the foreclosing party had the authority to bring a case when in fact it may not have. The lawsuit names JPMorgan Chase Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A., as well as Virginia-based MERSCORP, Inc. and its subsidiary, Mortgage Electronic Registration Systems, Inc.

via Schneiderman Sues Three Big Banks, MERS for . . . → Read More: New York AG sues big NY banks for mortgage fraud

Hey Ken, it’s Brian. Um, about that mortgage lawsuit settlement?

. . . → Read More: Hey Ken, it’s Brian. Um, about that mortgage lawsuit settlement?

FHFA Bank lawsuits: Probably a good time to revisit this chart

Lifted wholesale from Rortybomb, who originally posted this in October 2010.  It’s been clear for a long time to anyone who was paying attention that the banks had this coming.

and anyone at BAC who has made public statements in the last few months that they don’t need to raise capital is looking like a pretty ripe target for a . . . → Read More: FHFA Bank lawsuits: Probably a good time to revisit this chart

Oregon Federal Judge Rules Against MERS To Halt Foreclosure

Just because the borrowers were behind on the loan, that doesn’t mean that the lender is free to ignore the law:

Although home owners Ivan and Katherine Hooker have been in default on their loan since 2009, Judge Owen Panner found that the bank and Mortgage Electronic foreclosed on the couple’s loan after too many unrecorded transfers left the couple in the dark about who to contact for a loan modification.
“While I recognize that the plaintiffs have failed to make any payments on the note since September 2009, that failure does not permit defendants to violate Oregon law,” Panner wrote.

This should not do anything to help the distressed property market in Oregon.  If lenders have to go to court every time they want to foreclose, and if the documents have as many obvious flaws as the paperwork in this case…

I sure wouldn’t want to be a mortgage lender trying to clear title on . . . → Read More: Oregon Federal Judge Rules Against MERS To Halt Foreclosure

Foreclosures Halted in Oregon

Of course MERS is the culprit again. From OregonLive:

Donald E. McCoy III filed for bankruptcy protection in part to block U.S. Bank from foreclosing on his Central Point home. He then sued the bank and MERS, along with his original lender BNC Mortgage Inc., claiming they had not properly recorded BNC’s subsequent sale of the loan to investors.

Chief Bankruptcy Judge Frank R. Alley III found McCoy’s allegation persuasive and refused to grant the bank’s request for a dismissal.

“Oregon law permits foreclosure without the benefit of judicial proceeding only when the interest of the beneficiary (lender) is clearly documented in a public record,” Alley wrote. “When the public record is lacking, the foreclosing beneficiary must prove its interest in a judicial proceeding.”

In response to that ruling, First American Financial Corp., one of the nation’s largest title insurers, began warning lenders and buyers in title documents that it wouldn’t insure titles with a cloudy public record in Oregon, company attorney Alan Brickley said.

And of course, if you can’t get title insurance, you can’t get a mortgage. Good luck to folks in Oregon trying to sell their homes- you’re going to . . . → Read More: Foreclosures Halted in Oregon

Back From The Holiday

It seems like most of the issues that we pay attention to here at Rational Law have taken a holiday break from the news for the last month or so.  The new year promises new activity as everyone gets back to work this week.  Here are a few of the issues we’re keeping an eye on:

MBS putback lawsuits: It has been clear for some time that the biggest cause of the 2008 financial crisis was outright fraud perpetrated by mortgage originators such as Countrywide and GMAC.  It has taken somewhat longer for it to become apparent that the tree is rotten to the core.   Continue reading Back From The Holiday