Banking Misconduct Blog

[Editor’s Note: This post originally appeared on our sister site, MahanyLaw in July of 2014. We have updated and reposted it here.] Special servicers are the folks that take over the handling of loans that are delinquent, in default, or believed to be troubled. In large, commercial mortgages,...

Bankruptcy is designed to provide a fresh start for honest but unfortunate debtors and to ensure creditors are treated fairly. A federal bankruptcy court judge in Manhattan recently ruled that Wells Fargo failed miserably in its treatment of several of its business clients. By taking money to...

An article recently appeared on Syracuse.com. The title of the article was Inside Destiny USA’s Mortgage Emergency… Crisis or Hardball Bargaining? Destiny USA is the 6th largest retail mall in the United States. The journalist who wrote the article, Rick Moriarty, noted that the...

Can a Lender Put Me in Default for a Technical Breach?  
Here is a chilling scenario that happens more than you think.  Borrower secures commercial mortgage back securities (CMBS) or other financing for the purchase of an office building or shopping mall. After a major tenant...

There are hundreds of troubled loans across the United States involving shopping centers and strip malls. And things are getting worse. Boston Store, K-Mart and Sears. Lose an anchor tenant and very often it is the end of the mall.
 
We represent property owners and not banks, loan...

Appeals Court Rules that Illegal Activity Must Continue at Least One Year to Establish Racketeering  
How long must illegal behavior continue before it becomes racketeering? A federal appeals court in Philadelphia recently answered that question in an alleged Ponzi scheme...

Wells Fargo just won’t die. Billions of dollars in fines and penalties. Countless lawsuits. Even probation from bank regulators. Yet the company not only hangs on, it is still earning a profit too.
For many big banks, fines and penalties are a cost of doing business. Their business plan...

Anyone commercial property owner facing a special servicer soon learns the deck is stacked. Many commercial loans today are securitized and packages into loan pools. These pools are sold to a trust that is owned by institutional investors. Unlike a bank that has offices and employees, a CMBS trust...