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Archive for the ‘Mortgages’ Category

How Bear Stearns Really Screwed Investors

Posted by Larry Doyle on November 12th, 2012 8:57 AM |

The Wall Street Journal reports this morning that JP Morgan will merely pay a fine for transgressions that occurred at Bear Stearns prior to the large money-center bank’s life-saving takeover of the former Wall Street broker.

With merely a fine to be paid, global investors and American taxpayers are once again left scratching their heads wondering if the transgressions involved happened without any sort of meaningful human involvement. I mean, how is that JP Morgan will pay a fine likely in the hundreds of millions of dollars and not one single individual is likely to face the music? More on that in a second. What today’s WSJ report and many other reports fail to identify is what really happened at Bear Stearns. Let’s navigate.

Investors got screwed by the actions at Bear Stearns in two ways:  (more…)

JP Morgan Mortgage Fraud: Comments and Questions

Posted by Larry Doyle on October 2nd, 2012 8:58 AM |

Is yesterday’s announcement that the New York Attorney General (on behalf of the President’s Residential Mortgage-Backed Securities working group) is suing JP Morgan for fraud in selling mortgage-backed securities during 2006 and 2007 America’s long overdue call for justice?

Here is a copy of the suit. A few comments and questions.

First off, the activity in question occurred at Bear Stearns and not JP Morgan. JPM purchased Bear in the spring of 2008. I have long believed that selected parts of the mortgage origination process on Wall Street rose to the level of a racketeering enterprise.  (more…)

Making Sense of Mortgage Rates and Regulations

Posted by Larry Doyle on September 18th, 2012 6:26 AM |

The Federal Reserve has already purchased billions in mortgage-backed securities via prior iterations of quantitative easing. The “QE-infinity” announced just last week is targeted at purchasing hundreds of billions more in MBS.

There is certainly a lot going on within the world of mortgages. Not all of it is necessarily good. I remain steadfast in my defense of fair and transparent markets. That said, it should be no surprise that more regulations do not necessarily mean better regulation.

While the Fed’s QE operates from the proverbial 60,000 feet, let’s get a first hand look at what is really going on within the world of residential mortgages. To do just that I welcome highlighting the writing of a regular reader. The $avvy Borrower is the work of a pro’s pro at Independence Mortgage Company in Newport Beach, CA.  (more…)

Sherry Hunt: A True American Hero

Posted by Larry Doyle on June 9th, 2012 9:08 AM |

“This case demonstrates that the notion that the bailed-out banks have somehow found God and have reformed their ways in the aftermath of the financial crisis is pure myth,” he says.

“Sherry is an absolutely fantastic lady who knows what she’s doing. She has a conscience. I have the highest regard for her.”

At this point in our nation’s history, America needs some real heroes.

Certainly those who had put and continue to put their lives in harm’s way for our freedom and liberty are true American heroes. What about in the world of finance, though?  (more…)

Racketeering Charge Against BofA and MERS

Posted by Larry Doyle on May 10th, 2012 5:32 AM |

A little over a year ago I became aware of robo-signing within the mortgage servicing industry and broached the topic that the activity likely rose to a level of racketeering. I aggressively questioned, Did Wall Street Violate the Racketeering Act?

Believing that the activity did likely rise to a level of racketeering, I recommended that attorneys general should pursue institutions involved in these fraudulent and abusive practices with a RICO action.

Well, it appears that somebody is now doing just that with specific focus on  activities that transpired at Bank of America and MERS (Mortgage Electronic Registration System). (more…)

You’re Screwed by Wall Street Mortgage Settlement

Posted by Larry Doyle on March 20th, 2012 1:06 PM |

The American system of justice used to be predicated on the fact that those who committed transgressions paid the penalty. Regrettably, that system of justice is now a distant memory in regard to the adjudication of certain massive and egregious financial practices.

Has it become all too overwhelming for you to keep up with the violation of contracts and moral hazards in America today? I implore you not to give up the fight as future generations are counting on us to stand up for real justice. I addressed the injustice last week in writing, Mortgage Settlement Defines Racketeering:

If the Wall Street mortgage settlement is supposed to define justice, then crime certainly does pay. (more…)

Mortgage Settlement Defines Racketeering

Posted by Larry Doyle on March 13th, 2012 5:51 AM |

If the Wall Street mortgage settlement is supposed to define justice, then crime certainly does pay.

Having asked repeatedly in 2011 whether Wall Street mortgage servicing practices qualified as a racket and thus the charges filed should have been addressed as a RICO violation, yesterday we received our answer.

By any measure of ‘sense on cents’, the evidence provided screams of a RICO violation. The verdict delivered?  (more…)

CitiMortgage, Further Evidence of Wall Street Racket

Posted by Larry Doyle on February 17th, 2012 11:35 AM |

The story of rampant abuse within CitiMortgage is garnering enormous attention throughout the blogosphere today.

Do you find it ironic that an institution such as Citi, which was saved by Uncle Sam in 2008, would be abusing the old man a full three years later? No surprise here.

In a financial system in which regulators are ill equipped and overwhelmed by industry practices, rampant abuse and fraud seems to have become endemic. I tip my hat to Sherry Hunt, a whistleblower within CitiMortgage, for exposing the fraud within the mortgage underwriting business at Citi for which taxpayers foot the bill. Ms. Hunt gains immediate induction into the Sense on Cents Hall of Fame in the process.   (more…)

Mortgage Settlement Pisses Into the Wind

Posted by Larry Doyle on February 12th, 2012 5:34 PM |

In a nation now all too familiar with a “too big to fail” banking system, a heavily manipulated and high frequency dominated equity market, and an incestuous financial regulatory system, we should not be surprised with a mortgage settlement that does little more than ‘piss into the wind’.

Pardon my cynicism, but one does not need to look too deeply into the recently announced mortgage settlement to understand there is little in the way of meaningful justice embedded in this contrivance. (more…)

Housing Double Dip Represents ‘Patient’ Opportunity

Posted by Larry Doyle on June 1st, 2011 9:30 AM |

While various and sundry soothsayers have been touting the relative merits of our housing market for the last few years, I did not have a constructive comment about housing until just six weeks ago when I wrote, Is It Getting Time To Buy a House?. Housing price data released yesterday confirmed that our nations’ housing market has, in fact, suffered a double dip.

Is my positive commentary on housing premature and akin to ‘catching a falling knife’? Why was I negative for so long? Why do I think the bottoming process will be prolonged? What do I see as a compelling reason why homeownership is becoming increasingly attractive? Let’s navigate.

1. Why was I negative for so long? (more…)

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