Monday, November 28, 2011

City of St. Clair Shores Employees' Retirement System v. LPS et al. Amended Complaint May 18, 2011

To learn more about Lender Processing Services, let me recommend that you take a look an this Amended Complaint filed May 18, 2011 in US District Court in Jacksonville, Florida filed by the City of St. Clair Shores Employees Retirement System versus Lender Processing Services et al.  The case addresses foreclosure issues and "illicit practices to push through foreclosures."

Understanding How Lender Processing Services Works --- The 30(b)(6) Deposition of LPS Employee, Christian S. Hymer

To get a better understanding of the role Lender Processing Services and its alter egos play in the foreclosure game, check out the 30(b)(6) Deposition of LPS staffer, Christian S. Hymer dated January 13, 2010.  

Go to:

Saturday, November 26, 2011

JPMorgan Sued by BayernLB Over Mortgage-Backed Securities

By David McLaughlin – Nov 22, 2011 

JPMorgan Chase & Co. (JPM), the biggest U.S. bank by assets, was sued for fraud by German lender Bayerische Landesbank over losses on about $2.1 billion in mortgage-backed securities.

JPMorgan units concealed the truth about the poor quality of the loans underlying the securities and knew that credit ratings misrepresented their risk, BayernLB said in a lawsuit filed yesterday in New York State Supreme Court.

“This misconduct has resulted in astounding rates of default on the loans,” BayernLB said. Most of the securities have been downgraded to junk, it said.

The lender said it believed the mortgage securities were safe investments based on representations about the quality of loans and credit ratings when it invested almost $2.1 billion in 57 offerings from 2005 to 2007, according to the complaint. The lawsuit names JPMorgan and other units of the New York-based bank as defendants.

Jennifer Zuccarelli, a spokeswoman for JPMorgan, declined to comment on the lawsuit.
The case is Bayerische Landesbank New York Branch v. Bear Stearns & Co., 653239/2011, New York State Supreme Court, New York County (Manhattan).

To contact the reporter on this story: David McLaughlin in New York at
To contact the editor responsible for this story: John Pickering at

BayernLB or Bayerische Landesbank (Bavarian State Bank) is a publicly regulated bank based in Munich, Germany and one of the eight Landesbanken. It is 94% owned by the free state of Bavaria (indirectly via BayernLB Holding AG) and 6% owned by the Sparkassenverband Bayern, the umbrella organization of Bavarian Sparkassen. With a balance of €416 billion and 19,200 employees (in the group; 5,170 in the bank itself), it is the eighth-largest financial institution in Germany.

As a commercial bank, BayernLB offers private and commercial customers a universal range of services in private, industrial, investment and foreign business. This includes loans, securities trading and asset management, as well as mid-term and long-term bond issuance and securitization. The bank is refinanced through a variety of commercial debenture instruments.

As a state and municipal bank, BayernLB is responsible for comprehensive credit and financial counsel for the state of Bavaria and its municipalities and districts.

Through its subsidiaries, the bank is involved in a variety of further business areas. The Bayerische Landesbodenkreditanstalt is an organ of state housing policy, while the LBS Bayern is a public building society (Bausparkasse). Through its full ownership of the Deutsche Kreditbank, based in Berlin, BayernLB is also involved in retail banking.

In early 2008 it was revealed that BayernLB had made large losses due to investments in sub-prime mortgage securities in the United States. Although the extent of these investments has been the topic of speculation, it was revealed from the company's Q2 2008 financial report that over €24 billion had been invested in critical securities, with losses of €2.3 billion in 2007 and a further €2 billion in the first quarter of 2008.

The heavy public criticism took its first toll in March, 2008 when CEO Werner Schmidt resigned. The crisis also consumed the governing CSU party and its chairman, Erwin Huber, who as Bavarian Minister of Finance was the acting chair of the bank's Administrative Council and was accused of covering up the extent of losses.The bank and the losses were major factors in the September, 2008 parliamentary elections, in which the CSU had its worst election result since 1962 and Huber resigned.
The bank's shares slipped more than 2% after the country's central bank said it was time to roll back some of its economic support measures after recent crisis. The bank representatives advise economy was not ready for an increase in borrowing costs, and so the goal is to keep interest rates on hold. But it said it would end some of the measures it had introduced during the global downturn to increase the amount of money in the financial system. The German economy has continued to grow during the downturn. This is in stark contrast to more developed economies that fell into recession.

Company Overview
Bayerische Landesbank primarily provides commercial banking products and services to large, middle-market corporate, and retail customers in Europe and internationally. It provides direct banking for retail customers; residential mortgage lending; municipal lending; energy and infrastructure project financing for small and medium enterprises; private banking; corporate banking; and international financing services. The company also offers private equity services; and special funds and real estate funds for institutional investors, as well as management services for BayernLB funds, DKB funds, and BayernLB Invest funds.
Brienner Stra├če 18
Munich,  80333
Founded in 1884
10,754 Employees

Key Executives 

Mr. Gerd Hausler 

Chief Executive Officer and Member of the Administration Board

Age: 59

Chairman of the Administration Board and Member of the Economic Advisory Council

Chief Financial Officer
Age: 44

Chief Risk Officer and Member of the Board of Management

Deputy Chief Executive Officer and Member of the Management Board
Age: 54
Compensation as of Fiscal Year 2011.

Friday, November 25, 2011

Deloiotte Touche -- Foreclosure Review Process for JPMorgan Chase Bank NA

Cummings Calls for Unredacted Copies of “Engagement Letters” Between Mortgage Servicing Companies and Private Consultants


Remember when Chase had thirty days to respond to the OCC on how they were going to fix their deficient foreclosure practices?  This is a status report and  includes what they consider deficient and what they assume has been done correctly.

All you have to do is look at the Deloite review procedure to tell that it is a cover intended to bless the mess and limit payouts by the banks to the injured.

Deloite is "assuming" that the loan and foreclosure documents are correct when they should be "investigating" to see if they are correct. Since there are so many loans in question any investigation has to perform a statistical sample of the documents for validity, fraud, etc.

JPMorgan’s Independent Foreclosure Review Firm Deloitte & Touche LLP Recenly Sued for Failing to Detect Fraud that Led to more than $7 Billion in Losses
Will the OCC audits be just another whitewash for homeowners?

Monday, November 21, 2011



For Immediate Release
November 21, 2011

California AG Kamala Harris joined California community groups who called for homeowner relief from foreclosures during the holiday season.

San Francisco, CA— A number of California community groups joined California Attorney General Kamala Harris on Monday afternoon to draw attention to the plight of homeowners facing foreclosure during the holiday season. The event was hosted by the Mission Economic Development Agency (MEDA) in San Francisco.

At a roundtable discussion with Attorney General Harris, homeowners shared their stories about how they have struggled to make their mortgage payments and work with their banks to modify their loans. Attorney General Harris outlined her office’s priorities for improving loan servicing and increasing transparency and accountability in the mortgage system.  

Darryl Davis, a MEDA client, spoke about his recent experience with foreclosure. After nearly a year of negotiations, Darryl and his two children were evicted from their home in late October. “This whole thing has been a nightmare for my family. The way these banks operate, where the left hand doesn’t know what the right hand is doing, it’s incredible that they’re not held accountable,” said Mr. Davis. “I’m just a guy with limited means, going up against these institutions with unlimited means. I told my son that’s why we’re going to MEDA today. We need to let our voice be heard so that we can help others who are just like us.”

At the event, the Mission Economic Development Agency (MEDA), California Reinvestment Coalition (CRC), Alliance of Californians for Community Empowerment (ACCE), PICO California, and the Center for Responsible Lending (CRL) joined together to call for immediate and long-term solutions that would ease the harmful effect of the ongoing foreclosure crisis and help homeowners stay in their homes.

The California groups highlighted the need for increased levels of principal reduction and ending the “dual track” servicing problem, and called for accountability of the banking system and restitution for homeowners who wrongfully lost their homes. In addition, the groups called for a foreclosure moratorium during the holiday season, to allow families to celebrate the holidays in peace and comfort.

The California groups committed to working in partnership with Attorney General Kamala Harris as she fights for short-term and long-term relief for California homeowners.

Media Contact: Kevin Stein, California Reinvestment Coalition, (415) 864-3980

Alliance of Californians for Community Empowerment
California Reinvestment Coalition
Center for Responsible Lending
Mission Economic Development Agency

60 Minutes: Grover Norquist 'Likes Things Ugly, Has Characteristics of Protection Racket' |

60 Minutes: Grover Norquist 'Likes Things Ugly, Has Characteristics of Protection Racket' |