Category Archives: predatory lending

Is Foreclosure Settlement Déjà Vu All Over Again?

Today, the Attorneys General of 49 states (with Oklahoma being the lone holdout) announced a record $26 billion settlement with the nation’s five largest servicers over false and fraudulent foreclosure practices like robosigning.  That big number looks great on paper, … Continue reading

Posted in allocation of loss, Attorneys General, bailout, banks, BofA, consitutionality, contract rights, costs of the crisis, Countrywide, education, foreclosure crisis, global settlement, Government bailout, Greenwich Financial Services, Helping Families Save Homes, homeowner relief, improper documentation, incentives, investigations, investors, irresponsible lending, junior liens, lenders, liabilities, loan modifications, lobbying, MBS, media coverage, moral hazard, mortgage market, predatory lending, press, private label MBS, probes, public perceptions, Regulators, RMBS, robo-signers, securitization, Servicer Safe Harbor, servicers, settlements, sophistication, subprime, Takings Clause, The Subprime Shakeout, Way Too Big to Fail, William Frey, workouts | 13 Comments

BofA and Countrywide Appeal Order Allowing MBIA Vicarious Liability Claim To Proceed

In a move that could have dramatic consequences for the financial stability of Bank of America (BofA), a New York state court judge has held that monoline bond insurer MBIA can go forward with claims that BofA be held vicariously … Continue reading

Posted in Attorneys General, BofA, bondholder actions, Countrywide, Greenwich Financial Services, loan files, merger, mortgage insurers, predatory lending, settlements, successor liability, vicarious liability, William Frey | 10 Comments

Subprime Shakeout Discussed in Volokh Conspiracy Post On Formation of Aggregator Bank

On January 19, 2009, Eric Posner from the Volokh Conspiracy cited to the Subprime Shakeout in his article entitled “Why should the government buy toxic assets?” The post addressed the idea of an “Aggregator Bank” that would acquire the mortgage-backed … Continue reading

Posted in Aggregator Bank, Attorneys General, Countrywide, Government bailout, Greenwich Financial Services, investors, loan modifications, predatory lending, securities, settlements, TARP, Volokh Conspiracy | Leave a comment

William Frey and David Grais Appear on Fox News to Defend Greenwich Suit Against Countrywide

Greenwich Financial Services CEO William Frey and his attorney, David Grais, of Grais & Ellsworth LLP appeared on Fox News on Tuesday to answer questions about their lawsuit against Countrywide (see other postings on this story). In the segment, linked … Continue reading

Posted in costs of the crisis, Countrywide, Fox News, Greenwich Financial Services, investors, lawsuits, loan modifications, predatory lending, settlements, television coverage of the crisis, William Frey | Leave a comment

Potential Jurors Unfriendly to Mortgage Lenders?

As reported by Peter Page in the National Law Journal (subscription required), a survey completed earlier this month of adults eligible for jury service found that potential jurors overwhelmingly held plaintiff-oriented perceptions with respect to suits against mortgage lenders. “Nearly … Continue reading

Posted in causes of the crisis, Howard Rice, jury trials, lenders, litigation, mortgage insurers, predatory lending, public perceptions, securitization, subprime, underwriting practices | Leave a comment