Banking Misconduct Blog


Special Servicers – Do They Answer to Anyone? CMBS Post

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...

Oral Loan Commitments - What Happened to the Handshake?

Bankers operate in their own world. They are often quick to promise a loan or to renew a loan, but if that promise isn’t chiseled in stone, banks are often the first to renege or add additional conditions at closing. Much of the existing case law deals with contract interpretation and the...

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...

LLC Members Found to Owe Fiduciary Duty

Court Recognizes “Fiduciary in Fact”, Says Execs Must Face Suit Claiming They Violated Fiduciary Duty to REIT Investors  
Whether there is a fiduciary duty is one of most hotly contested battles in lender liability cases. Often the answer to that question determines whether...

JP Morgan Chase and $4 Billion Punitive Damage Award

Banks are seemingly all-powerful, and yet we have repeatedly been able to hold them accountable for their unethical behavior. When banks that gamble with the property and well-being of Americans face true justice, it is always a time for honest citizens to celebrate. That is the case of JPMorgan,...

Banking Disgrace? BBVA Compass Bank’s Treatment of Wounded Vets

Michael Masters is a true American hero. An Army soldier who served during the Gulf War, Michael is a 100% disabled veteran. Like many wounded warriors, he found it difficult to assimilate back into civilian life. Today he is homeless and struggling to get back on his feet.
Michael survives...

Special Servicer LNR Partners Sued in Shopping Center Row

[Ed. Note - If you own a commercial property and find your loan has been transferred to a special servicer, READ THIS POST.]
The owners of a Ft. Wayne shopping center have filed suit against special servicer LNR Partners and others over a mortgage covering the property where the center is...


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...