Banking Misconduct Blog


Common CMBS Problems (Lender Liability Post)

Borrowers’ Nightmares from CMBS Funded Loans Much of our lender liability practice revolves around borrowers in CMBS loans. Although down in number from their heyday in 2008, they are still in use and many borrowers seek them out. While they may look attractive at first, they often catch...

Virginia Confession of Judgment - What Borrowers Need to Know

If a confession of judgment sounds ominous, it is. These provisions allow the debtor to appoint the creditor as his or her agent and appear before a court and confess judgment in the event of default. As a practical matter, when a default occurs, the creditor can obtain a judgment without advance...

Pre-Negotiation Agreements – Beware the Lurking Danger

Watch any reality cop show and you will likely hear the words, “Anything you say can and will be used against you.” Pre-Negotiation Agreements (often called PNAs) are much the same. Many unscrupulous lenders will stuff these agreements with one-sided waivers and clauses favoring the...

Springing Guaranties and Bad Boy Provisions

Banks want as much security as they can when they loan money. Conversely, borrowers want to avoid as much personal liability as possible. It is been that way since the beginning of banking.
 
One tool that has found favor in recent years is a “springing guaranty” or...

Wells Fargo Ordered to Face Claims Over Loan Fees

Wells Fargo is at it again, this time facing allegations that it improperly charged homeowners with erroneous fees. The bank sought to dismiss the case but a federal judge in Camden, New Jersey said the homeowners could proceed with their bad faith claims. Since the case was brought as a class...

Borrower Defaults, Sues Banks... and Wins!

We love when the underdog wins. Why? We are one of the very few lender liability law firms that only sue banks. Most lawyers that practice banking law represent the banks and not borrowers. Needless to say, borrowers are almost always the underdogs.
 
This is the story of a small...

Economic Duress (Another Tale of LNR Partners Wrongdoing)

We are not a fan of special servicers, especially LNR Partners and CWCapital. Somewhere along the way, both companies forgot their mission and began to be motivated by their own financial gain and not the well-being of their clients, the public or property owners.
 
Few property...


Special Servicers - Operating Without Oversight (LNR, CWCapital C-III)

[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,...

Wells Fargo Sanctioned for Illegal Fees

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...