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Bankruptcy Judges
Latest Headlines
Latest Headlines
Standoff over MERS in California
The recent consent decree between federal agencies and mortgage lenders/servicers to settle shoddy foreclosure practices ended up affirming the legitimacy of MERS. Article VI of the bank settlement and separate settlement with MERS itself required remedial measures to shape up and end sloppy pract
Foreclosure settlement finally on the way?
Are we finally seeing signs that we'll soon have a settlement between regulators, states and the big mortgage companies over tainted foreclosure practices? Federal agencies and state attorneys general have given the top banks and servicers a settlement proposal, while continuing to negotiate monet
Massachusetts court decision on foreclosures portends disaster?
What to make of the Massachusetts high court decision that nullified foreclosures by Wells Fargo and U.S. Bancorp and returned the property to the owners, even though no one disputes that they were in default. Neither borrower contested the foreclosures.
The court basically said the banks, whi
War on MERS heats up, should the industry be shaking?
MERS has existed without much controversy since 1997, when it started registering and tracking loans electronically. Out in Reston, Va., it toiled in obscurity--until this year, when the foreclosure fiasco pushed it into a harsh public spotlight. That light is only getting harsher. Yet another
Attorneys general seek 'cram downs'?
We've suggested that a huge wildcard in the on-going foreclosure fiasco is the response of the 50 state attorneys general. One outcome is that they will seek some sort of global settlement based on the idea of forced modifications, essentially "cram downs." Sheila Bair, for example, has prop
Banks breathing easier about cramdowns?
Recall that the government seemed to be in favor of allowing very intrusive "cramdowns," which would have allowed bankruptcy judges to lower interest rates on loans, change payment periods, even the principal amount. Banks fought hard against such measures, even after Citi was forced by the govern
Mortgage modification a tricky issue for banks, lawmakers
While the top banks are more than willing to publicize their efforts to temporarily halt home foreclosures, they've been less willing to take longer-term action. A reality that many regulators have obviously come around to. A new Obama Administration effort to cut back on the number of expecte
Fannie and Freddie vs. mortgage holders
What to do with Fannie Mae and Freddie Mac? Freddie Mac has said it'll require up to $35 billion in federal funds, in addition to the $14 billion it already took. Fannie Mae, which hasn't taken government funds yet, now says it'll need up to $16 billion. Even scarier, most people assume they're go
The mystery of Citi's support for bankruptcy bill
Jamie Dimon said exactly what you would expect from a big bank CEO who is confronted with the likelihood that bankruptcy judges will modify the principal and interest rates on mortgages. He thinks it's a really bad idea, reports the Financial Times. No bank wants a third party to muck around w
Citi to sell Smith Barney; feds tightening grip
Vikram Pandit, CEO of Citi, has been forceful in his assertions that size was Citi's strength, and that he would not break up the company. He caught a lot of flack, but he seemed to be sincere. So what should we make of the news that Citi is in talks to sell a majority interest in Smith Barney to
