Foreclosure Class Action Against WaMu
A Massachusetts couple claim they were just following the advice of Washington Mutual Bank when they stopped making their mortgage payments so they could qualify for an assistance program being promoted by the bank. But following the foreclosure of their home, they became lead plaintiffs in a class action against the company.
In a class-action lawsuit alleging bad faith foreclosure tactics, borrowers Lori and Mark Pestana sued WaMu for negligent misrepresentation.
The borrowers also brought individual claims, including wrongful foreclosure, against the thrift and its foreclosure law firm.
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LendingTree Settles Lawsuit
LendingTree LLC has settled a four-year-old lawsuit in which it was accused of the unauthorized use of technology from another company for its online exchange between borrower and lenders.
Routine Examination Turns Costly
When New Hampshire regulators were given loan files for a routine examination of a mortgage brokerage, they became suspicious about missing documents. With a little more work, they found the missing documents in a shredding bin and reconstructed them only to find altered documents on loans from that state and from Massachusetts. In addition to fining the broker $400,000, they alerted Massachusetts regulators -- who then took their own actions.
Bank Sued Over Failed Firm
A mortgage banking joint venture between a Colorado firm and a Kansas bank appeared to be weathering the financial markets storm until March, when the bank pulled the plug on the operation. Now the bank is being sued for millions of dollars by its former partners.
Broker, Bank Exec Busted
A mortgage broker has pleaded guilty to helping a former executive of a Florida bank overcharge the banks borrowers. The two pocketed the difference while the bank wound up embroiled in lawsuits.
ResCap Suing to Force Repurchases
In several lawsuits filed by an affiliate of Residential Capital LLC, loan correspondents are accused of failing to repurchase loans as required by the contracts they signed. In at least one case, the company is going after an individual who signed a personal guarantee.
Federal Regulators Busy
As reports of massive mortgage-related losses continue to pour in, federal regulators are busy investigating and issuing orders against financial firms. One thrift reported that a recent increase in withdrawals has subsided -- though a resumption could have a negative impact on capital.
Another State Sues Countrywide
West Virginia has joined a host of other states suing Countrywide Financial Corp.
FDIC Fighting Subprime Repurchases
A pending federal lawsuit seeks to force the Federal Deposit Insurance Corporation to repurchase more than 1,000 subprime mortgages that have defaulted since they were acquired by a Texas-based bank more than five years ago. The loans were originated by a failed Illinois bank.
Massive Losses, Legal Actions & 1 Done
Around $8.8 billion in mortgage-related losses were reported by U.S. firms this week. Other recent corporate activity included the issuing of several orders against banks, the disclosure of a major securities investigation, the filing of another investor class action and a warning about liquidity from Residential Capital LLC.
