On December 22, 2014, distressed homeowners with loans serviced by Ocwen got a nice bit of Christmas news, while the servicer got a lump of coal. HousingWire just broke the story (here) that the company’s Executive Chairman, William Erbey is resigning and Ocwen Finnaical (OCN) will, once again, pay a huge fine, this time to […]Foreclosure, Miscellany, Q-Rants, Servicers | Tagged Bank Ethics?
“The economic role of the state has managed to hold the attention of scholars for over two centuries without arousing their curiosity.” ~George Stigler, “The Theory of Economic Regulation,” 1971. Now that the unpleasantness of the financial crisis and Great Recession are being slowly relegated to the pages of economics textbooks, let’s ask: What’s changed […]Dodd-Frank, Federal Regulation, Federal Reserve, Financial Crisis, Legislation - Federal | Tagged Bank Ethics?
In a recent November 25, 2014 Wall Street Journal online article by Katie Martin here, we learn, once again, that international banking behemoth HSBC has been caught with its hand in the cookie jar. This time, the scandal relates to the leaking of confidential client information to a hedge fund. Confirming that the bank’s top […]Miscellany, Q-Rants | Tagged Bank Ethics?
“SunTrust had no effective document management system in place to process and retain the borrowers’ applications and supporting documentation. When the HAMP applications poured in, SunTrust put them in stacks on the floor without organization. At one point, the stacks of opened and unprocessed HAMP applications were so voluminous that their weight buckled the floor.” […]Federal Regulation, Financial Crisis, Legislation - Federal, Loan Modifications, Miscellany, Q-Rants | Tagged Bank Ethics?, Banks, Modification, Wall Street
On January 28, 2014, Sergio Ermotti, chief executive of UBS AG, was fed up. While visiting swanky Davos Switzerland [referred to in a New York Magazine article as “…the annual self-congratulatory kaffeeklatsch known as the World Economic Forum”] he vented. Like Howard Bealle in Network, he was ‘mad as hell and not going to take this anymore!’ What […]Dodd-Frank, Federal Regulation, Financial Crisis, Legislation - Federal, Lenders, Miscellany, Real Estate Laws, Residential Housiing, Servicers | Tagged Bank Ethics?, Financial Crisis, Wall Street
This story is just too funny to ignore. The PR department of JPMorgan Chase & Co. (JPM), one of the Big Banks in perennial trouble with the Justice Department [eight current investigations – but who‘s counting?], came up with what they believed to be a whiz-bang idea to shine their tarnished image: Set up a […]Lenders, Miscellany | Tagged Bank Ethics?, Banks
In Part One of my latest rant blog post, I took a look at the Big Banks and their sordid activities during the securitization heydays of 2005 – 2007/8. But I was just getting warmed up. Part Two discusses how the banks have come to the aid of the prosecutors and courts in presenting themselves […]Lenders, Market Conditions, Miscellany, Mortgage Insurance, Ratings Agencies, Real Estate General, Real Estate/Distressed, Servicers, Subprime Mortgages | Tagged Bank Ethics?, Banks, Financial Crisis, Market Conditions, Real Estate, Securitization
Introduction. As the Big Bank scandals appear to be diminishing, I’ll admit that it’s probably time to get over the RATs (Rapers of the American Taxpayers), and move on to other more uplifting topics for this blog site. Perhaps I will….Financial Crisis, Legislation - Federal, Lenders, Market Conditions, Miscellany, Mortgage Insurance, Ratings Agencies, Real Estate General, Real Estate/Distressed, Residential Housiing, Subprime Crisis | Tagged Bank Ethics?, Banks, Financial Crisis, Market Conditions, Mortgages, Securitization, Wall Street
In one of the most insightful articles I’ve read about Big Banks from the Great Depression to the present, authors Frank Partnoy and Jesse Eisinger, writing in the Jan/Feb 2013 issue of The Atlantic, discuss why America’s big lending institutions are no safer today, than the months leading up to the 2008 collapse of the […]Dodd-Frank, Financial Crisis, Legislation - Federal, Miscellany, Subprime Crisis | Tagged Bank Ethics?, Banks, Dodd-Frank, Financial Crisis, Q-Rants, Real Estate
I’ve written several blog posts about the mortgage insurance (“MI”) problem. Two of the several posts are found here and here. In many cases, MI is not purchased by the borrower, but by the lender – without the borrower’s knowledge and after the loan has already been made. This type of MI is technically referred […]Foreclosure, Miscellany, Ratings Agencies, Real Estate/Distressed, Servicers, Short Sales | Tagged Bank Ethics?, Banks, Distressed Transactions, Short Sales