Banking Misconduct Blog


Springing Guaranties and Bad Boy Provisions

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...

Economic Duress (Another Tale of LNR Partners Wrongdoing)

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...


RICO Claims Must Cover 12 Months of Activity

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...

Fraud Alert: Having Trouble with Your Bank? Don’t Tweet!

We don’t often publish fraud warnings, social media is full of them already. This one comes to us from our friends in the U.K. and is certainly worth repeating.
 
Tweeting about Problems with Your Bank Makes You a Target for Fraudsters  
Think about it… you...

New Hope for California Homeowners - HAMP LOAN MODIFICATION POST

The housing and banking crisis of 2008 is long over. It’s been a decade since many homeowners woke up to find themselves underwater and owing the banks hundreds of thousands of dollars more than their house was worth. For others, it was worse. They woke up to no job and no ability to get...

JPMorgan Chase Sued Over Unauthorized Withdrawals

Is JPMorgan Chase Responsible for Unauthorized Withdrawals?  
Imagine you own a small business. For years, you struggle to build the business, keep customers happy and hopefully earn a small profit. As a restaurant owner, you focus on making sure you have the best ingredients, good...

Ocwen’s Many Evils - Systematic Abuse of Struggling Homeowners

Last April, the Consumer Financial Protection Bureau announced a lawsuit against Ocwen and its subsidiaries for “failing borrowers at every stage of the mortgage servicing process.” The CFPB’s statement claimed that “Ocwen’s years of widespread errors, shortcuts, and...

Independence Day, Bank of America, and Financial Tyranny (HAMP Post)

Topics:
-Bank of America Accused of Stealing Homes -Fighting Back Against Banks -The Truth about HAMP Modifications  Today is July 4th and in thousands of communities, people will celebrate our independence with fireworks tonight. Independence from tyranny and a privileged ruling...

FDIC Closes Guaranty Bank – What Does This Mean for Customers?

After years of losses and weak financials, the FDIC swooped in last night and closed Guaranty Bank. With over $1 billion in deposits and 119 branches scattered across 5 states, thousands of depositors and borrowers are wondering, “what happens next”?
 
As lender...