Max on Nevada Public Radio

Max made an appearance on Nevada Public Radio this morning to talk about the leverage bankruptcy can provide homeowners facing foreclosure and describe some of the most common flaws in the transfer process and actions taken by banks and mortgage servicers to try cover up those problems or repair breaks in the chain of title after the fact. Michael Joe, an …

Allstate Files Suit Against Chase, WaMu, Bear Stearns

Allstate today filed suit in New York state court alleging that JP Morgan Chase, WaMu and Bear Stearns had materially misrepresented just about everything in selling more than $750 million in mortage loans to the insurer.  Specific misrepresentations alleged involved underwriting standards and practices, owner occupancy statistics, loan-to-value and combined loan-to-value ratios, debt-to-income ratios, credit ratings, credit enhancements, underwriting exceptions, …

The Lawsuit to be Heard ‘Round the World?

Investors, including New York Life, have filed a 194-page complaint against Countrywide and Bank of America, alleging…essentially, what homeowners and consumer attorneys have been pointing out all along.  You can read an excellent summary at Mandelman Matters, but this allegation is worth spotlighting again here: Countrywide routinely failed to comply with the requirements of applicable state laws and the PSAs for valid transfers of …

Why the Massachusetts Supreme Court Voided Two Foreclosures and What It Could Mean for Banks

By Marian Wang via ProPublica, Jan. 20, 2011. When Massachusetts’ highest court ruled against U.S. Bank and Wells Fargo earlier this month and invalidated two foreclosures, the decision was hailed by some as an important precedent for courts seeking to resolve foreclosure disputes. While the decision’s impact isn’t entirely clear, even Wall Street analysts who downplayed its applicability acknowledged its …

Who’s to Blame for the Mortgage Mess? Banks, Not Homeowners

Another excellent article by Abigail Field in DailyFinance. As the foreclosure crisis has escalated over the past several months, one overarching debate has been about who bears the most blame: homeowners or banks? After everything I’ve learned and written about the foreclosure mess, my verdict is: The banks are responsible for 90% of the problem, troubled homeowners 10%. Yes, every …

Past Rulings by New York Judge Schack Reached Ibanez-Like Conclusions

Via Naked Capitalism’s Yves Smith. In another blow to securitization industry efforts to minimize the recent Massachusetts Supreme Judicial Court decision in Ibanez (or perversely, spin it as a victory), some of Judge Schack’s earlier decisions come to conclusions similar to those of Ibanez. This confirms the view of Georgetown law professor Adam Levitin, who has argued that Ibanez has …

Ibanez and Securitization Fail

Adam Levitin’s analysis of the Ibanez case from Credit Slips. The Ibanez foreclosure decision by the Massachusetts Supreme Judicial Court has gotten a lot of attention since it came down on Friday. The case is, not surprisingly being taken to heart by both bulls and bears. While I don’t think Ibanez is a death blow to the securitization industry, at the …