Maryland also banned Ocwen from operating in the state.

Justice League


Maryland’s action, taken by the state’s Commissioner of Financial Regulation, is, in the words of a HousingWire tipster, a “doozy.”

Maryland’s cease-and-desist order, which can be read in full here, presents a laundry list of Ocwen’s supposed failings, including the company’s “failure to cooperate” with examiners from the Multi-State Mortgage Committee, Ocwen’s alleged unlicensed servicing activity in Maryland, issues with the REALServicing platform that Ocwen uses (issues with REALServicing were also cited by the Consumer Financial Protection Bureau, which took its own action against Ocwen last week), various states’ enforcement actions against Ocwen, and a cavalcade of other issues.

Because of these issues, Maryland partially “summarily suspended” the mortgage lender licenses of Ocwen Mortgage Servicing, Ocwen Loan Servicing, Ocwen Financial Solutions Private Limited, Ocwen Business Solutions, Homeward Residential, Liberty Home Equity Solutions.

Under those suspensions, Ocwen and its related companies…

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GSE Bill would allow Homeowners to submit FOIAs to Fannie and Freddie while under Federal Conservatorship

Awesome! Sad thing is Fannie extinguishes files upon a “credit event.” We’ll need a PRESERVATION ORDER.

Livinglies's Weblog

By K.K. MacKinstry/LendingLies

Anyone who is trying to find out information about the trust ownership of their loan, knows that if Fannie Mae or Freddie Mac are involved- your research hits a stone wall.  Homeowners who have a mortgage not secured by the GSEs are better able to determine what trust their loan was allegedly assigned to.  The GSEs who operate as quasi-governmental agencies are still private companies but have been able to evade public disclosures by claiming to not be federal entities.

Under current law, the Freedom of Information Act does not apply to Fannie Mae and Freddie Mac because, while they are under federal conservatorship, they are not federal agencies.

The days of the GSEs hiding behind an ambiguous status may come to an end.   H.R. 1694 was introduced by Rep. Jason Chaffetz R-UT last week.     Under the proposed  bill, the GSEs would be required to accept…

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Injured by Ocwen? Take Action Now!

Excellent! Thank you so much!

Livinglies's Weblog

By K.K. MacKinstry

Ocwen has admitted that its mortgage servicing policies and loan processing systems are a “trainwreck”.  As regulators and the Consumer Fraud Protection Bureau (CFPB) tighten the noose on Ocwen, we recommend that Livinglies readers who have experienced issues with Ocwen contact their state Attorney General offices, the CFPB, state banking regulators and government representatives to express your outrage and share your experience NOW.

Although Ocwen is being investigated for predatory servicing practices, please make regulators aware of the deeper level of fraud that is occurring and consists of fabricating and forging loan instruments including notes and assignments.  If you have been subjected to any of Ocwen’s tactics that push homeowners into default please provide this information to the aforementioned agencies.

The regulators found that Ocwen manipulates escrow accounts to create defaults and problems with taxes and insurance, does not respond accurately to submitted Qualified Written Requests, fails…

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David Dayen: A Bank Even a Socialist Could Love

Much better way to go. At least with Credit Unions too, members have a say. If government employees and trade union employees had been asked to vote on where their pension funds were going to be invested – they might have said NO to UNREGULATED derivatives and voted for something less risky and maybe won’t have loss the entire amount gambling on Wall Street.

Livinglies's Weblog

A Bank Even a Socialist Could Love

The fight for public banking is gaining ground in cities and states across the country.

BY David Dayen

“We have Tea Partiers and Occupiers in the same room liking public banking. What does that tell you?”

“Money is a utility that belongs to all of us,” says Walt McRee. McRee is a velvety-voiced former broadcaster now plotting an audacious challenge to the financial system. He’s leading a monthly conference call as chair of the Public Banking Institute (PBI), an educational and advocacy force formed seven years ago to break Wall Street’s stranglehold on state and municipal finance.

“This is one of the biggest eye-openers of my life,” says Rebecca Burke, a New Jersey activist on the call. “Once you see it, you can’t look back.”

This ragtag group—former teachers, small business owners, social workers— wants to charter state and local banks across…

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Surrendering Property: The Consequences of Surrender Are … Take Your Pick

Many bankruptcy attorneys do not explain the meaning of “surrender” to their clients as the attorney files out these bankruptcy petitions. “Surrender Dorothy” means “give it back” to the munchkins…not to the witch. However, “surrender” in bankruptcy means give up your rights to the home and property to the bank…or the bankruptcy trustee is there is equity. And you can bet your bottom dollar if the property isn’t underwater the bankruptcy trustee will figure some way to squeeze the money out of the bank.

Additionally, many bankruptcy attorneys use the surrender tactic to keep from having to oppose a motion for relief from stay by the bank, doing as little work as possible for their fee. Beware. Make sure you clearly state your intention to keep the home.

A note for law makers: since bankruptcy petition paperwork is so complicated and not designed for a pro she in the first place. If an attorney makes a mistake on the filing – make the statute read that the drafter of the petition is held accountable for errors rather than the debtor – and enforce financial sanctions collectible by the court on behalf of the debtor and its creditors.


In re Elkouby, 561 B.R. 551 (Bankr. S.D. Fla. 2016)

A chapter 7 debtor filed a statement that he intended to surrender real property securing a loan. After the bankruptcy case was closed, the debtor continued actively opposing a foreclosure action. In response the mortgagee moved to reopen the case and asked the bankruptcy court to compel the debtor to surrender the property. The central issue was the meaning and consequences of “surrender.”

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Does SOL Run from Date of Violation or Discovery?

Livinglies's Weblog

THE DISCOVERY RULE: The Judge ruled that the Statute of Limitations (SOL) runs from the date of actual discovery — not when it should have been discovered and certainly not when the violation occurred.

Get a consult! 202-838-6345 to schedule CONSULT, leave message or make payments.



            On March 27, 2017 a United States District Court Judge denied a request to dismiss a Fair Debt Collection Practices Act case as outside the 1‑year statute of limitations. The essential ruling was that the “discovery rule” applies and that the statute does not begin to run until the plaintiff discovers the alleged violation, rather than from the date of occurrence of the activity that gives rise to the cause…

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May v Nationstar Mortgage: Reckless Indifference resulting in Mental Anguish results in 500k punitive damages award

“We first evaluate whether the reprehensible nature of Nationstar’s conduct warrants punitive damages. Reprehensibility is the most important guidepost. Gore, 517 U.S. at 575. When assessing reprehensibility, the Supreme Court instructs us to consider whether:

the harm caused was physical as opposed to economic; the tortious conduct evinced an indifference to or a reckless disregard of the health or safety of others; the target of the conduct had financial vulnerability; the conduct involved repeated actions or was an isolated incident; and the harm was the result of intentional malice, trickery, or deceit, or mere accident.

State Farm Mut. Auto. Ins. Co. v. Campbell, 538 U.S. 408, 419 (2003). The presence of just one indicium of reprehensibility is sufficient to render conduct reprehensible and support an award of punitive damages. See Trickey, 705 F.3d at 803.”

Livinglies's Weblog

Jeannie K. May, Plaintiff-Appellee,
Nationstar Mortgage, LLC, Defendant-Appellant.
Jeannie K. May, Plaintiff-Appellant,
Nationstar Mortgage, LLC, Defendant-Appellee.

May v Nationstar Mortgage

Nos. 16-1285, 16-1307.United States Court of Appeals, Eighth Circuit.Submitted: December 15, 2016.Filed: March 29, 2017.Kevin Michael Abel, for Defendant-Appellant.

Jeffrey Mark Tillotson, for Defendant-Appellant.

Rhiana Luaders, for Defendant-Appellant.

Amy Elizabeth Breihan, for Defendant-Appellant.

Elizabeth Scott Letcher, for Plaintiff-Appellee.

Paul M. Catalano, for Plaintiff-Appellee.

Robert T. Healey, Jr., for Plaintiff-Appellee.

Robert David Humphreys, for Plaintiff-Appellee.

Ben Alexander Barnes, for Defendant-Appellant.

Luke J. Wallace, for Plaintiff-Appellee.

Appeals from United States District Court for the Eastern District of Missouri — St. Louis

Before WOLLMAN and SMITH,[1] Circuit Judges, and WRIGHT,[2] District Judge.

WRIGHT, District Judge.

Appellee/Cross-Appellant Jeannie K. May commenced this action to recover damages under state and federal law arising from the debt-collection practices of Appellant/Cross-Appellee Nationstar Mortgage, Inc. A jury found in favor of…

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Philadelphia looks to drop Wells Fargo’s handling of city’s $2B payroll

Justice League

Philadelphia City Council has introduced legislation to remove Wells Fargo & the bank handling the city’s $2 billion payroll.

City Treasurer Rasheia Johnson’s office sent City Council the results of a request for proposal for the upcoming fiscal year that recommended replacing the San Francisco-based bank with Citizens Bank. Wells Fargo will maintain the remaining $1 billion in business with the city outside of payroll, as that work was not scheduled to be up for bid.

Read on.

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What It Means to Cure a Default: Never Take Anything for Granted, the Rules Can Always Change


Pacifica L 51 LLC v. New Investments Inc. (In re New Investments Inc.), 840 F.3d 1137 (9th Cir. 2016)

The debtor proposed a chapter 11 plan that included curing defaults under a mortgage loan. The lender objected because the cure payments were calculated using the pre-default interest rate as opposed to the higher default rate.

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“The mirage of promised mortgage modification lured the plaintiff debtors into a kafkaesque nightmare of stay-violating foreclosure and unlawful detainer, tardy foreclosure rescission kept secret for months, home looted while the debtors were dispossessed, emotional distress, lost income, apparent heart attack, suicide attempt, and post-traumatic stress disorder, for all of which Bank of America disclaims responsibility.”  All too familiar.

$45 Million for Stay Violations posted by Alan White

How much in punitive damages is enough to punish unlawful conduct and deter its repetition? $45 million was one bankruptcy court’s opinion, in the case of a wrongful home foreclosure and eviction in knowing violation of the automatic stay.

The court described the plaintiff-debtors’ treatment by defendant Bank of America as Kafkaesque, and found their deeply emotional testimony (one of them attempted suicide during the ordeal) completely credible, awarding more than $1 million in actual damages for the loss of housing and emotional distress. The court also noted that Bank of America had repeatedly settled cases with federal and state regulators for hundreds of millions, and even billions, of dollars, in recognition of serious and repeated compliance failures, including some related directly Continue reading