Utah Judge Stops All Foreclosures by BofA, Reconstrust, Home Loan Services

[link to www.abc4.com]

ST. GEORGE, Utah (ABC 4 News)- A Washington County judge has stopped Bank of America foreclosures in Utah...well, temporarily. Turns out, the judge says because Bank of America doesn't have a business license to operate in the state then they shouldn't be allowed to do business here. Translation says one lawyer: if you're going to play, play fair in the State of Utah.

Thanks - even better link! This could really turn out to be exciting - wonder if it has anything to do with RAP.....

“Although we are governed by and operate in compliance with federal laws and regulations, we halted residential foreclosures in Utah in compliance with the recent preliminary injunction. Our first priority is to help our customers remain in their home as demonstrated by the more than 600,000 modifications completed since January 2008, but unfortunately due to ongoing recessionary impacts, for many customers, a transition to alternative housing will be necessary.”

RIGHT - I believe that one...........

BofA hit hard again - notice how much money they are willing to pay to keep these things from going to trial:

[link to news.yahoo.com]

WASHINGTON – Bank of America will pay $108 million to settle federal charges that Countrywide Financial Corp., which it acquired nearly two years ago, collected outsized fees from borrowers facing foreclosure.

It's the latest evidence of misconduct at Countrywide, once an industry giant that has since fallen. Last year, three top executives, including former CEO Angelo Mozilo, were charged with civil fraud and insider trading by the Securities and Exchange Commission.

The settlement, which seeks to refund money to about 200,000 borrowers, was announced Monday by the Federal Trade Commission. It is the largest mortgage industry settlement for the agency, which oversees non-banking functions such as debt collection.

The FTC's chairman, Jon Leibowitz, accused Countrywide of "callous conduct, which took advantage of consumers already at the end of their financial rope."

Bank of America purchased Countrywide in July 2008. The actions in the case took place before the acquisition.

The Charlotte, N.C.,-based bank, which did not admit or deny the charges, said it agreed to the settlement "to avoid the expense and distraction associated with litigating the case."

Countrywide hit borrowers who were behind on their mortgages with fees of several thousand dollars at times, the FTC said. The fees were for such services as property inspections and landscaping that far exceeded market rates. Countrywide created subsidiaries to hire vendors, which marked up the price for such services, the agency said.

"Countrywide profited from making risky loans to homeowners during the boom years, and then they profited again when the loans failed," Leibowitz said.

It will take several months to contact the affected borrowers, Leibowitz said. He called Countrywide's record-keeping "beyond abysmal."

Banks have not done enough to prevent foreclosures because of the income they receive from these sort of fees, consumer advocates allege. In a 2007 conference call with investors that was cited by FTC lawyers, a top Countrywide executive called such fees "part of our diversification strategy" as foreclosures soared.

"This is an ongoing problem," said Diane Thompson, a lawyer with the National Consumer Law Center. "Those default fees are huge barriers to loan modifications."

The FTC also alleged that Countrywide made false claims to borrowers in bankruptcy about the amount owed or the size of their loans — and failed to tell those borrowers about fees or other charges. The settlement requires Bank of America to give bankrupt borrowers monthly notices about what they owe, including fees.

Bank of America has dealt with allegations of deceptive practices at Countrywide since acquiring the mortgage company. In October 2008, it reached a settlement with attorneys general agreeing to modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 customers.

It has abandoned the tarnished Countrywide name and remains the largest collector of mortgage payments in the country.

The FTC is charged with enforcing federal laws designed to prevent abuses by companies that collect consumers' debts. That's because mortgage-collection activities are typically handled outside the oversight of federal banking regulators.

Critics say the agency lacks the expertise or resources to enforce those laws. A sweeping financial overhaul being negotiated by Congress would create a new agency focused specifically on consumer financial protection.

There is an interesting discussion on this matter at this real estate investing forum: [link to www.landtrust.net]

Associated video: [link to www.youtube.com]

The speaker is Kevin McGill, who teaches loan modification and short sale tactics. He asks the question about why banks were given large funds only to turn around and screw with homeowners.

On the rea site, two well known posters are from Utah, and hint that this is just the tip of a very large iceberg.

My suspicions are that communism is being implemented where all real estate is the property of the government and all rents are paid to the government. Which plank of the communist manifesto is this?

cooler heads~> prevail.

upper courts will overturn it for sure.cant work against banks,you see.

IN Utah only! And that WAS 3 weeks ago, things could have changed since then!

maybe this is one of the many signs of the times....
could it be that as we near 'the end' the corruption and those who are corrupt will be revealed and possibly held accountable for their crimes?

i honestly do not mean by going to jail, if it is in fact a sign of the times, there will be much harsher punishment than even Gitmo.