Posted in Foreclosure Defense

Foreclosure: The Movie… (finally!) coming to a screen near you

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In new film, neighborhood of foreclosed homes drives man insane

You can say a lot of things about the foreclosure crisis, but you can’t say that moving into a neighborhood destroyed by foreclosures could drive a man insane after he falls victim to ancient curses while living a haunted house.

Until now!

Those very events are the plot of a long-delayed movie now available on DVD and various on demand platforms. “Foreclosure,” which first hit HousingWire’s radar in 2010, (yes, 2010! How’s that for a scoop!?!?) tells the story of Bill Landopolous, played by Michael Imperioli, who moves into a house in Queens, New York with his son and father-in-law.

But, as it so often is in the movies, this house is more than just a house.

From the official plot synopsis:

In Foreclosure, Michael Imperioli plays a man whose lucrative business during a long bull market selling his…

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Posted in Financial

Student Debt Strikers Take On Corinthian College


Fifteen students have refused to pay back their student debt to Everest College, owned by the now disgraced for-profit company Corinthian College. They call themselves “the Corinthian 15”.

Good for them. Corinthian College is a predatory and fraudulent company which was in the business of gaming the federal loan system while making false promises to its students. Those students are victims of fraud and should not be the ones paying back the government money for an education they never got. Instead, Corinthian should pay back the money.

There are articles about this in the New Yorker, Newsweek, and the Guardian, and there’s a letter of support signed by Naomi Klein and Barbara Ehrenreich, among others, which contains the following:

By declaring a strike, the Corinthian 15 are taking debt relief for themselves and challenging the Department of Education to look out for students instead of protecting rich…

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Posted in Financial

Capital One Financial : U.S. Probes Capital One for Possible Money Laundering

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Capital One Financial Corp. said the U.S. Justice and Treasury departments are looking into possible money-laundering violations at the company.

The bank said the Justice Department is also reviewing its subprime auto finance business.

The McLean, Va., company said the federal authorities had asked for the information in “early 2015,” according to a regulatory filing.

Last year, Capital One disclosed similar requests for information from the New York District Attorney’s Office, saying New York officials were reviewing “certain check casher clients of the Commercial Banking business.”

The company has also received a subpoena from The New York District Attorney’s Office seeking information related to its subprime auto finance business.

Read on.

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A few years back, folks in the banking industry had an interesting idea: Take thousands of mortgage loans, assemble them into a pool, and issue mortgage-backed securities against the revenue stream they generate. The process, known as securitization, has proved itself to be one of mind-boggling complexity.
Briefly, it begins by subjecting each loan in the pool to a sequence of sales, the last of which is to a specially created single-purpose vehicle, usually a trust with a major bank as its trustee. This is done to completely separate the pool from the assets and liabilities of the originating lender, were it to file for bankruptcy or go into receivership.
Without complete separation, the transfer of ownership might be viewed as a secured loan rather than a true sale, which could allow the originating lender to reclaim the loan by right of redemption and leave the investors high and dry. But that is only the half of it.

Read more -> Why foreclosure and securitization don’t mix – Opinion – – Hyannis, MA.

Why foreclosure and securitization don’t mix – Opinion – – Hyannis, MA

Morgan Stanley (MS) said it reached an agreement in principle with the United States Department of Justice and the United States Attorney’s Office for the Northern District of California to pay $2.6 billion to resolve certain claims the financial enforcers intended to bring against the investment bank.

A deal was expected to be coming very soon.

via Morgan Stanley pays $2.6 billion in mortgage-bond settlement | 2015-02-25 | HousingWire

Morgan Stanley pays $2.6 billion in mortgage-bond settlement | 2015-02-25 | HousingWire