Banking Misconduct Blog


Second Mortgage Grounds for a Default? (Material vs Technical Breach)

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...

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...

Is Your Bank Unsafe? (Lender Liability Post)

Between 1990 and today, some 8500 banks have disappeared. (Since the banking crisis in 2008, 525 banks have closed by regulators according to problembanklist.com) In most instances, FDIC insurance will protect deposits. The real harm often comes to commercial borrowers.
 
Danger...

Suing Banks – Bad Faith Default Leads to Big Win Against GMAC

This case is one from the archives but the principles and law behind the decision are still valid today. In 2009, a Philadelphia jury awarded Donald Mente and his new and used car dealership, Mente Chevrolet, $4 million after finding that GMAC had used thinly disguised pretexts to declare the...