Archive for August, 2013
Another victory for Dallas Foreclosure Defense Attorney in federal court against Bank of America and U.S. Bank National Association
A judge in Eastern District of Texas federal court today issued a report and recommendations that Bank of America and U.S. Bank National Association’s Motion to Dismiss should be denied. Meenu Seth, Dallas/ Fort Worth foreclosure defense attorney filed a lawsuit against Bank of America and U.S. Bank after Bank of America and U.S. Bank foreclosed on homeowners’ property in April 2012. Bank of America and U.S. Bank has started the eviction process against the homeowners when Attorney Meenu Seth filed a lawsuit challenging their authority to foreclose. Attorney Seth successfully stopped the eviction proceedings in Denton County Court by convincing the court that Bank of America and U.S. Bank National did not have the authority to foreclose. The Court stopped the eviction during the pendency of the lawsuit filed by the homeowners.
Bank of America and U.S. Bank transferred the lawsuit to the Federal Court and filed a motion to dismiss. The U.S. Magistrate issued the report and recommendation that Bank of America and U.S. Bank’s Motion to Dismiss should be denied.
In this case, homeowners’ note was securitized and apparently converted into a mortgage-backed security (MBS). The court’s dismissal of the bank’s motion to dismiss- a procedural tactic commonly employed by the big banks- will allow the homeowners to continue their claims for wrongful foreclosure.
I am Meenu Seth, partner at Duke Seth, PLLC and a foreclosure defense attorney. Our firm has been representing the homeowners in Texas regarding threatened foreclosure (judicial foreclosure and non-judicial foreclosure) and eviction (Complaint for Forcible Detainer). Over the past two years I myself have stopped over 65 foreclosures and evictions in Texas by obtaining over 65 Temporary Restraining Orders (TRO) in different counties, such as Dallas County, Tarrant County, Denton County, Collin County, Ellis County, Parker County, Grayson County, Rockwall County, Travis County and Kaufman County. I help homeowners to stay in their homes by either putting a tough fight against the lenders like Bank of America, JP Morgan Chase, CitiMortgage, AHMSI, Ocwen, U.S. Bank, HSBC Bank, Deutsche Bank (to name a few) or working out a settlement between the homeowners and the lenders. In my upcoming articles, I will try to explain various approaches of different courts in the foreclosure and eviction matters. I will explain it with examples of my foreclosure and post-foreclosure cases and how I obtained the TROs and how can I help people who are trying to fight this battle with the banks or lenders on their own.
I also help homeowners who need to work out a loan modification, short sale or deed-in-lieu of foreclosure with the banks or lenders. I have successfully helped over 30 homeowners receive a loan modification before foreclosure. Few of my clients were offered loan modification post-foreclosure, which is absolutely fantastic!!!
I look forward to contributing to this blog and providing information to homeowners struggling with their mortgage.
U.S. Justice Department, SEC Charge Bank of America with Defrauding Investors in $850 Million Mortgage-Backed Securities
The U.S. Department of Justice has announced that it is filing a civil lawsuit against Bank of America for fraud and misrepresentation. The suit alleges that Bank of America lied to investors about the riskiness of mortgage loans that were pooled into certain residential mortgage-backed securities. The lawsuit filed in U.S. District Court in Charlotte alleges that Bank of America defrauded investors, including federally insured financial institutions, who purchased more than $850 million in residential mortgage-backed securities from Bank of America Mortgage Securities 2008-A (BOAMS 2008-A) securitization.
“Bank of America’s reckless and fraudulent origination and securitization practices in the lead-up to the financial crisis caused significant losses to investors,” U.S. Attorney Anne Tompkins said. “Now, Bank of America will have to face the consequences of its actions. We have made a commitment to the American people to hold financial institutions accountable for practices that violated the law and wreaked havoc on the financial system, and my office takes that commitment very seriously. Our investigation into Bank of America’s mortgage and securitization practices continues.”
The DOJ’s suit accompanied an announcement from the SEC that it also filed charges against Bank of America for defrauding investors. The SEC alleges that Bank of America failed to tell investors that more than 70 percent of the mortgages backing the same mortgage-backed securities offering – the BOAMS 2008-A – originated through the bank’s “wholesale” channel of mortgage brokers unaffiliated with Bank of America entities. Bank of America knew that such wholesale channel loans – described by Bank of America’s then-CEO as “toxic waste” – presented vastly greater risks of severe delinquencies, early defaults, underwriting defects, and prepayment. These risks all directly impact the returns to investors, however Bank of America only selectively disclosed the percentage of wholesale channel loans to a limited group of institutional investors. Bank of America never disclosed this material information to all investors and never filed it publicly as required under the federal securities laws.
I applaud both the Department of Justice and SEC for continuing to demand accountability from those who helped caused the financial crisis. The economy is rebounding and the mortgage market is improving, so it would have been easy to “let bygones be bygones.” However, Bank of America is being called to answer for its actions. Banks got away with a lot, and this won’t right all wrongs, but it’s at least another small portion of justice.