Archive for May, 2012
It was another good day for a Texas homeowner as foreclosure defense attorney Walker M. Duke obtained a temporary restraining order stopping Ocwen and HSBC from foreclosing. The temporary restraining order, or TRO, was obtained in connection with a lawsuit against these two entities. In the lawsuit, attorney Duke alleges that the homeowners note and promissory note had supposedly been securitized, or sold to an asset-backed trust to become part of a series of mortgage-backed securities. The only problem is that the representations that HSBC made to the local county clerk did not match up with the representations HSBC made to the U.S. Securities and Exchange Commission.
“In my view, HSBC is lying to someone–either the SEC or the County Clerk,” Duke said. “Either way, something doesn’t smell right.”
This particular attempted foreclosure came in the wake of reports that foreclosure filings in at least the North Texas area are down considerably. Overall trends don’t mean much, however, when it’s your home that the bank is trying to sell.
Here’s a story that’s not really related to mortgages or foreclosures, but is about one of the world’s largest banks, JP Morgan. J.P. Morgan CEO Jamie Dimon recently admitted that it suffered a loss of $2 billion in what is best called proprietary trading. These trades were intended to be a hedge against risk. In reality, they were more likely bests placed for JP Morgan’s own benefit.
In case the numbers haven’t sunk in yet, that’s $2 BILLION, with a “B.” That’s like betting $2,000,000,000.00 on black only to have the roulette wheel comes up red.
Needless to say, JP Morgan’s hedges backfired spectacularly.