Banking Law

2 NY Lawyers Sued, 1 Disbarred re Their Claimed Roles in Convicted Developer’s $92M Mortgage Fraud

A New York title attorney who is awaiting sentencing for his role in a Long Island real estate developer’s $92 million mortgage origination fraud in Nassau County was disbarred last week. Federal Deposit Insurance Corp. is suing Ted Doumazios along with a closing attorney allegedly involved with him in arranging…

Oct 24, 2011 6:00 PM CDT

More Underwater Borrowers Will Get Refinancing Help Through Changes in FHFA Program

More homeowners who are underwater on their mortgages will be eligible for a refinancing program as a result of changes announced today by the Federal Housing Finance Agency. Borrowers with mortgages backed by Fannie Mae and Freddie Mac before June 2009 will be eligible for the refinancing program, no matter…

Oct 24, 2011 3:19 PM CDT

Citigroup to Pay $285M to Settle SEC Allegations It Bet Against Its Own Clients on Mortgage CDO

Citigroup has agreed to pay $285 million to settle allegations that it sold mortgage-backed securities to clients while betting against the investments through short sales. The payment settles a suit filed Wednesday by the Securities and Exchange Commission, report the Los Angeles Times, the New York Times and a press…

Oct 20, 2011 12:21 PM CDT

Another Attorney Is Charged in Mortgage Fraud Case re High-End Versailles Development in South Fla.

A Miami-area attorney charged in a federal mortgage fraud prosecution is at least the third Florida lawyer to face a criminal case concerning the high-end Versailles development near Wellington. Kimberly S. Daise, 48, was charged with conspiracy to commit fraud on a financial institution and wire fraud, reports the South…

Oct 19, 2011 8:43 PM CDT

After Robo-Signing Scandal, Fannie and Freddie Will No Longer Use Attorney Networks

Fannie Mae and Freddie Mac will allow mortgage servicers to choose their own foreclosure law firms after some firms in the mortgage giants’ discounted attorney networks were caught up in the robo-signing scandal. The Federal Housing Finance Authority, which oversees Fannie and Freddie, announced it has ordered a revamp of…

Oct 19, 2011 11:52 AM CDT

Some Banks Are Giving Away Foreclosed Properties; Cleveland Serves as Model

In Cleveland some banks are losing so much money holding onto run-down foreclosures that they are bulldozing the properties and giving them away. The properties are turned over to the Cuyahoga County Land Reutilization Corp. under a 2009 Ohio law creating land banks, the Washington Post reports. The Cuyahoga land…

Oct 13, 2011 12:06 PM CDT

Supreme Court Accepts Case Challenging Mortgage Fees Charged by Quicken Loans

Updated: The U.S. Supreme Court has agreed to decide whether federal law bars mortgage lenders from charging “unearned fees” at closings if they aren’t part of a kickback or fee-sharing arrangement. The federal government supports the plaintiffs, who claim Quicken Loans Inc. charges unearned fees in violation of the Real…

Oct 12, 2011 11:00 AM CDT

Lawyer Who Fought Foreclosure Fraud Takes Federal Plea in Straw-Buyer Money-Laundering Conspiracy

A Florida title attorney who is playing a prominent role in the fight against mortgage foreclosure fraud by lenders has taken a plea in a federal case over an alleged mortgage fraud conspiracy. Carol Asbury, 59, could get as much as 20 years in prison and a $250,000 fine when…

Oct 12, 2011 12:34 AM CDT

Another Texas County Mulls Possible MERS Suit; Up to $100M Could Be In Issue in Harris County

With as much as $100 million in unpaid filing fees at issue, another Texas county is pondering possible litigation against those responsible for an electronic system that circumvented the traditional method of recording paperwork when lenders purchase mortgages from each other. On the agenda for a Tuesday meeting of the…

Oct 7, 2011 8:16 PM CDT

NY Foreclosure Law Firm Settles with Feds for $2M; Deal Creates ‘Howls of Protest’

A New York law firm once accused of “operating in a parallel mortgage universe” has agreed to pay $2 million to settle a probe into misleading foreclosure documents. The Steven J. Baum law firm did not acknowledge wrongdoing in the deal, but did admit occasional “inadvertent errors” it attributed to…

Oct 7, 2011 11:55 AM CDT

2 Lawyers Face Federal Charges in Alleged 9-Year, $25M Mortgage Fraud Conspiracy

Two New York lawyers are among six defendants facing federal charges in an alleged nine-year mortgage fraud conspiracy in which the participants are accused of using straw buyers and fraudulent loan applications to bilk lenders of some $25 million. Prosecutors discussing a superseding federal indictment announced today said attorneys Matthew…

Oct 5, 2011 8:18 PM CDT

Fannie Mae Knew of Law Firm Foreclosure Abuses as Early as 2003, Report Says

Mortgage giant Fannie Mae knew of abuses by foreclosure mill law firms as early as 2003, but was slow to address the problem, according to an inspector general’s report. Fannie Mae assigned outside counsel to investigate in 2005 after a shareholder reported abuse allegations in December 2003, according to the…

Oct 4, 2011 1:43 PM CDT

Ex-Homeowners Face ‘Foreclosure Hangover’ as Banks Pursue Deficiency Judgments

Banks are increasingly pursuing deficiency judgments against former homeowners who lost their homes in foreclosures. Lenders may sue borrowers for mortgage debt that isn’t covered in a foreclosure sale in 41 states and the District of Columbia, creating a “foreclosure hangover” for former homeowners, the Wall Street Journal (sub. req.)…

Oct 3, 2011 1:58 PM CDT

Jury Deadlocks in Federal Mortgage Fraud Trial of Lawyer and Two Former Police Officers

After almost a week of deliberations, a federal jury has deadlocked in a Fort Lauderdale, Fla., mortgage fraud trial of an lawyer who is the owner of a local title company and two former Plantation police officers. Attorney Steven Stoll had faced 34 counts, but his lawyer, Bruce Zimet, said…

Sep 21, 2011 6:54 PM CDT

Dallas County DA Sues MERS, Says Shadow Recording System Confused Title and Cost Money

The district attorney of Dallas County, Texas, today sued Mortgage Electronic Registration Systems, its parent Merscorp company and other defendants, contending that a shadow electronic recording system confused title to real estate and cost the government a great deal of money in lost filing fees. District Attorney Craig Watkin estimated…

Sep 21, 2011 1:08 AM CDT