coalition of seven major public pension systems, led by New York City
Comptroller John Liu, has asked the boards of four of the largest U.S.
banks to examine their mortgage and foreclosure practices.
In
a letter dated January 6, the pension fund coalition urged the Audit
Committees of Bank of America Corp, Citigroup Inc, JPMorgan Chase &
Co, and Wells Fargo L& Co to launch independent examinations of their loan modification, foreclosure, and securitization policies and procedures.
"This
will help to prevent future compliance failures and restore the
confidence of shareholders, regulators, legislators and mortgage
markets participants," the coalition said in the letter.
Bank representatives could not be reached for immediate comment on Sunday.
On
January 7, in a decision that could slow foreclosures nationwide,
Massachusetts' highest court voided the seizure of two homes by Wells
Fargo & Co and US Bancorp after the banks failed to show they held
the mortgages at the time they foreclosed.
That
sent fears through the market as investors worried that decision could
threaten lenders' ability to work through hundreds of thousands of
pending foreclosures.
The
Supreme Judicial Court of Massachusetts' unanimous decision upheld a
lower court ruling and was among the earliest cases to address the
validity of foreclosures done without proper documentation.
That
issue, including the use of "robo-signers" who approved foreclosure
documents without reviewing them, last year prompted an uproar that led
lenders such as Bank of America, JPMorgan Chase and Ally Financial Inc
to temporarily stop seizing homes.
Courts
in other U.S. states are considering similar cases, and all 50 state
attorneys general are examining whether lenders are forcing people out
of their homes improperly.
The
pension fund coalition represents more than $430 billion in pension
fund investments, including $5.7 billion invested in the four banks.
Liu
represents the five NYC pension funds. The coalition also includes the
Connecticut Retirement Plans and Trust Funds, the Illinois State Board
of Investment, the Illinois State Universities Retirement System, the
New York State Common Retirement Fund, the North Carolina Retirement
Systems, and the Oregon Public Employees Retirement Fund.
The
coalition called for the banks to report the findings of their
independent examinations in their 2011 proxy statements this spring.
At
the end of the last year, the coalition's combined holdings in each
bank included: 97.1 million Bank of America shares valued at $1.3
billion; 226.6 million Citigroup shares valued at $1.1 billion; 40.7
million JPMorgan Chase shares valued at $1.7 billion, and 50.6 million
Wells Fargo shares at $1.6 billion.
It's about
time public pension funds get involved and use their clout to pressure
banks to examine their loan modification, foreclosure, and
securitization policies and procedures. I'm not sure anything will come
out of this but the foreclosure crisis has sounded the alarm bell and
banks need to respond to make sure that measures are in place to prevent
this type of abuse from ever happening again.
Finally, I leave you with some thoughts from Graham Turner of GFC Economics, one of the best independent economic consultancy shops for institutional clients:
Check out this really depressing map (this link takes you to the full-sized image).
The text introducing the map: "Leading Democrats, such as Senate Majority Leader Harry M. Reid (D-Nev.) whose state was hit hard by the real estate downturn, have called on lenders to halt foreclosures. But the Obama administration says a nationwide delay could devastate the fragile real estate market in places like Florida."
Looking at Florida on that map, I'd say the devastation has already been wrought.
Meanwhile, Bank of America continues in its position as the most likely lender to fraudulently foreclose on borrowers. Here's the latest egregious story, from a few days ago.
In one of the more bizarre foreclosure cases, Bank of America is threatening to throw a West Hartford family out of their home even though the couple never missed a mortgage payment.
The largest bank in the United States earlier this month notified Shock Baitch and his wife Lisa (Friedman) Baitch that foreclosure action will start today – Christmas eve – unless the couple agrees to put their home up for a forced sale.
Why?
Because another unit of Bank of America erroneously reported to credit agencies that the family was seeking a loan modification, ruining their credit rating and as the result putting their mortgage into default.
All this is happening even though the bank – after admitting it erred and sent a letter of apology in September – handed this case to a special unit at Bank of America that is charged with dealing with severe customer issues. It promised to notify the credit reporting agencies that the couple were not deadbeats, but were good credit risks.
“I have never seen a case like this,” said Manchester attorney Wendell Davis, whose office handles many foreclosures.
Before taking the case, Davis said he thoroughly checked Baitch’s records and found that all his and his wife’s allegations were accurate.
“They have never even been late on a mortgage payment,” said Davis this morning in an interview....
Baitch’s story began about a year ago when he and his wife wanted to refinance their home in order to pay for improvements and to consolidate their debts. Baitch is a firefighter.
They spoke to a BofA loan specialist and asked for the cheapest refinance option. The loan specialist tentatively put them into the “Making Home Affordable program,” which unbeknownst to the couple would signal to the credit world that they were in financial straits.
When the couple received a package of papers to sign, they decided to go with a conventional mortgage because they did not want to have to add escrow costs and home insurance to their mortgage payments, not because they were aware of the ramifications on the loan program.
But it was too late. Shortly after that, in April, Baitch’s wife (whose name is on the mortgage) received a letter from BofA telling her that the credit limit on one of her credit cards was reduced to $18,800 from $30,000. The two weren’t worried because they had plenty of credit available on other credit cards. Baitch said he just figured that the bank was tightening everyone’s credit.
It was only after his wife started receiving notifications from other creditors that several of her other accounts were being closed that the couple discovered what had happened.
Because of BoA's fraudulent reports to credit bureaus, the couple's credit has been ruined. Supposedly BoA is working on restoring the credit limits on their BoA accounts, but that doesn't fix their credit rating. That's a hassle for the couple, but the true nightmare is the foreclosure letter the couple received just before Christmas, a foreclosure proceeding that no one at BoA has been able to justify. Baitch describes the long trail of customer relations calls he's made, culminating at the top.
“I then spoke to Debbie Lambert from the Office of the CEO and President. Debbie advised me that, in fact, my account is still “under review” and has a “work out negotiator” assigned to the case. She could not explain why the letter of foreclosure was issued, but, did confirm that our status is that we are still in the loan modification process. A process we NEVER agreed to or ever entered and were PROMISED that it would be corrected!”
“So, in summary, BOA is threatening to proceed with foreclosure on a house that was NEVER late or in risk of default. No one at BOA can find where this letter came from, but admits, that somewhere in there system, some department at BOA thinks we are to be foreclosed on. This is just proof that BOA is far too large to be of any benefit to themselves or the consumer.”
Reading this story, and looking at that map of the extent of the crisis, might be enough to make the Geithner and Obama reconsider forcing a national halt on foreclosures. Letting the banksters steal it all isn't a policy solution.
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
bench craft company reviews bench craft company reviews'The Daily' iPad <b>News</b> Publication to Debut January 19th - Mac Rumors
Last month, All Things Digital reported that News Corp.'s forthcoming tablet-focused news publication, The Daily, appeared likely to debut sometime the week of January 17th. Forbes has now confirme.
Just posted: Olympus XZ-1 samples gallery: Digital Photography Review
Just posted: Olympus XZ-1 samples gallery: Just posted: Olympus XZ-1 sample photos. While we were attending CES in Las Vegas, we were offered a full, production-standard version of the latest enthusiast compact from Olympus.
The State <b>News</b> :: The Snyder Effect
Gov. Rick Snyder, who took office Jan. 1, repeatedly has said K-12 and higher education and retaining young people in the state are priorities for his administration. But until Snyder releases concrete numbers as part of his budget ...
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