LexisNexis® Legal Newsroom
N.J. Supreme Court: Title Insurers Not Liable For Attorney's Misappropriation Of Funds

TRENTON, N.J. - (Mealey's) A unanimous New Jersey Supreme Court on Aug. 2 found that two title insurance companies cannot be held liable for an attorney's misappropriation of a couple's closing funds for a home sale because no agency relationship existed between the companies and the attorney...

Preliminary Approval Of $12 Million Settlement In New Century Class Action Granted

LOS ANGELES - (Mealey's) A federal judge in California on Aug. 9 preliminarily approved a $125 million settlement agreement between shareholders, former officers and directors of subprime mortgagor New Century Financial Corp., the company's outside auditor and the underwriters of New Century's...

Judge Approves Countrywide ID Theft Settlement

LOUISVILLE, Ky. - (AP) A federal judge on Monday granted final approval to a settlement between Countrywide Financial Corp. and millions of customers left at high risk for identity theft because of a security breach. Countrywide, now owned by Bank of America, will provide free credit monitoring. . ....

Lawsuit Wave Could Hurt Housing Market: FDIC Chief

ARLINGTON, Va. - (AP) A wave of lawsuits from troubled borrowers who lost their homes to foreclosure could hurt the already-ailing housing market, a top banking regulator said Monday. Sheila Bair, chairman of the Federal Deposit Insurance Corp., said litigation by the affected homeowners "could...

Exploring The Securities Exceptions To CAFA Jurisdiction

Greenwich Fin. Servs. Distressed Mortgage Fund 3 LLC v. Countrywide Fin. Corp. (603 F.3d 23, 2010 U.S. App. LEXIS 8088 [2d Cir. Apr. 20, 2010]) [ enhanced version available to lexis.com subscribers / unenhanced version available from lexisONE Free Case Law ] involved an important statutory exception...

Homeowners Say Loan Mods Led Them To Foreclosure

LOS ANGELES - (AP) Grocery store owners William and Esperanza Casco were making enough money to stay current on their mortgage, but when JPMorgan Chase & Co. offered a plan that reduced their payments, they figured they could use the extra cash and signed up. The Cascos say. . . . Full version available...

Foreclosure Class Actions Pile Up Against Banks

NEW YORK - (AP) Foreclosure-fraud class action lawsuits are starting to pile up against major banks across the U.S., threatening a besieged industry with billions more in potential losses. Bank executives are swarming Capitol Hill this week to defend themselves against multiple foreclosure-related investigations...

Pennsylvania Lawsuit Targets Philly Firm's Foreclosures

PITTSBURGH - (AP) A Pittsburgh attorney says a Philadelphia law firm used nonlawyers to file untold numbers of mortgage foreclosures across the state and therefore fraudulently collected attorney's fees in such cases. The lawsuit comes as a bankruptcy court judge, also in Pittsburgh, has given the...

Mortgage Litigation Up 41 Percent, Index Shows

DALLAS - Legal actions tied to mortgage lending jumped by more than 40 percent in the third quarter of the year based on the Mortgage Litigation Index out Dec. 13. Activity on more than 100 civil and criminal mortgage-related cases was tracked from July 1 through Sept. 30 in the report, which is...

Puerto Rican Bank Settles Subprime-Related Securities Suit

According to Popular, Inc.'s January 27, 2011 press release ( here ), the Puerto Rican bank holding company has reached an agreement in principle to settle the subprime related securities lawsuit pending against the company, as well as in the related ERISA lawsuit. The securities suit has settled...

California Settles Lawsuit Against Countrywide Executives

LOS ANGELES - (AP) The state of California has reached a settlement in a predatory lending lawsuit against former executives at Countrywide Financial Corp. that will pour $6.5 million into a fund to help foreclosed homeowners. The state had sued Countrywide, CEO Angelo Mozilo and President David Sambol...

Court OKs $624 Million Payout To Countrywide Investors

LOS ANGELES - (AP) A federal judge on Friday approved a $624 million settlement in a lawsuit brought by several New York public pension funds against fallen mortgage giant Countrywide Financial Corp. The settlement, a version of which was had been originally hammered out last year, also calls for KPMG...

Kevin LaCroix: Catching Up On Rulings In Key Subprime-Related Securities Lawsuits

Over the last few days, there have been a series of rulings in high-profile lawsuits arising out of the subprime meltdown and credit crisis. As discussed below, just in the past week there were dismissal motion rulings in cases involving Freddie Mac, Wachovia/Wells Fargo, and AIG. Though some or all...

California Appeals Court Reverses Countrywide Lawsuit Dismissal

LOS ANGELES - (AP) An appeals court has overturned the dismissal of a class-action lawsuit brought by investors against mortgage giant Countrywide Financial Corp. The move by a panel of the California 2nd District Court of Appeal reverses the decision by a Superior Court judge in Los Angeles last year...

Foley & Lardner Alert: Government's False Claims Act Complaint Against Major Financial Institution Alleges False Certifications Of Compliance With HUD Underwriting Rules

On May 3, 2011, the U.S. Attorney for the Southern District of New York, Preet Bharara, filed a False Claims Act (FCA) suit against Deutsche Bank AG and its subsidiary, MortgageIT, Inc., for making allegedly false statements and certifications of compliance with HUD rules requiring due diligence in underwriting...

J.P. Morgan To Pay $153 Million To Settle SEC Lawsuit

WASHINGTON, D.C. - (Mealey's) J.P. Morgan Securities LLC will pay $153.6 million to settle claims brought by the Securities and Exchange Commission alleging that it misled investors "in a complex mortgage securities transaction just as the housing market was starting to plummet" ( Securities...

Bank Of America To Set Aside $14 Billion To Settle RMBS Claims

CHARLOTTE, N.C. - (Mealey's) Bank of America Corp. will pay $8.5 billion to settle claims regarding "nearly all of the legacy Countrywide-issued first-lien residential mortgage-backed securitization (RMBS) repurchase exposure, representing 530 trusts with original principal balance of $424 billion...

Bank Of America's $8.5 Billion Settlement Won't Be Its Last

NEW YORK - (AP) Bank of America's $8.5 billion settlement with investors is the largest any bank has ever paid. It might help assuage worries about how deep the bank's mortgage problems might be and how long it might take to settle them. But for the nation's largest bank and its CEO Brian...

Borrowers Sue Over Apparent Loan Modification Mishaps

LOS ANGELES - (AP) It seemed Maria Campusano's financial problems were behind her when the mortgage on her Victorian home in a Massachusetts mill town was chopped by hundreds of dollars a month. She soon learned that her troubles had just begun. Weeks after making her first payment under the new...

Wells Fargo To Pay $125 Million To Settle Mortgage-Backed Securities Claims

SAN JOSE, Calif. - (Mealey's) Lead plaintiffs and Wells Fargo Bank, N.A., its subsidiary and four officers and directors have agreed to a $125 million settlement of claims filed by investors in connection with Wells Fargo's offering of $36 billion in mortgage pass-through certificates, according...

Bank Of America Hit With New Countrywide Lawsuit

NEW YORK - (AP) Bank of America Corp. is facing a new lawsuit filed by a group of shareholders of mortgage giant Countrywide Financial Corp. which the bank bought in 2008. The group of investors, which include BlackRock funds, T. Rowe Price Group Inc., TIAA-CREF and several pension funds. . . . Full...

Wachovia, KPMG Reach $627 Million Settlement With Investors

NEW YORK - (Mealey's) In what Wachovia Corp. shareholders' attorneys are calling the single-largest recovery for claims brought "solely pursuant to" the Securities Act of 1933, the shareholders, Wachovia, certain of its affiliates and former officers and directors and outside auditor...

AIG Sues Bank Of America For $10 Billion Over Mortgages

NEW YORK - (AP) More trouble piled up for Bank of America Corp. on Monday, as American International Group Inc. sued it for more than $10 billion, saying the bank cheated it by selling residential mortgage-backed securities that were overvalued. The suit comes on top of similar suits, which together...

Regulator Sues Goldman Sachs Over Risky Mortgages

LOS ANGELES - (AP) The U.S. regulator of credit unions on Tuesday sued Goldman Sachs & Co. for more than $491 million in damages over losses incurred by two failed credit unions that purchased mortgage-backed securities underwritten by the investment bank. The complaint filed by the National Credit...

Countrywide Agrees To Pay $335 Million To Settle Government's Discriminatory Lending Claims

LOS ANGELES - Countrywide Financial Corp. has agreed to pay $335 million to settle claims by the U.S. government that the lender and its subsidiaries engaged in discriminatory lending practices by steering African-American and Hispanic borrowers toward subprime mortgage loans with higher interest rates...