Banking Misconduct Blog


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...

Special Servicing: the Ultimate Hardball Tactics

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...

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...

CMBS Mortgage Post – Mall Vacancies at Record High

As I write this post from my hotel room in Kingston, New York, a Toys R Us store sits empty in the parking lot across the street. Toys R Us is one of many big box retailers that have either closed completely or are going through a dramatic downsizing. For mall owners, that could mean...

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...

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...

Lone Star Funds – Distressed Investors or Vultures?

Distressed investing is the politically correct term these days for buyers of distressed properties.  There will always be property owners that find themselves in over their heads. Sometimes their problems arise from unforeseen market events and at other times, it is just from being...

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,...

Judge Triples Damages against Allied Home Mortgage to $268mm!

Most of our cases are lender liability actions brought by businesses and investor groups against banks, mortgage companies and special servicers. Sometimes, however, we file cases on behalf of the United States and taxpayers. Our False Claims Act brought on behalf of the United States resulted in...