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  •  NV AG gets $57k/homeowner from Morgan Stanley (4+ / 0-)

    This is what the Obama administration and Iowa AG Tom Miller should be doing:

    Morgan Stanely, Nevada, settle fraud case

    LAS VEGAS, Sept. 27 (UPI) -- U.S. banking giant Morgan Stanley and Nevada have agreed to a $40 million settlement in a mortgage fraud case, the state's attorney general said.

    Attorney General Catherine Cortez Masto said in a statement the settlement was reached with the bank to end an investigation involving 3,000 subprime mortgages the bank purchased and sold to investors.

    Morgan Stanley Capital Holdings also agreed to improve its practices and "refund and adjust interest rates for certain Nevada borrowers."

    Nevada AG Masto Gets Up to $57,000 Per Homeowner in Morgan Stanley Settlement

    You can do the math on this yourself. $40 million for 700 Nevada homeowners is $57,000 per person, a significant number. Even if this is at the low end you’re talking about $30,000. Given that the median asking price for a home in Las Vegas is down to $119,900 ($199,000 in Reno), that’s a significant chunk of change.

    Put it this way: the “global settlement” with the state AGs aims to help 2 million borrowers, by their estimates. That would translate into $114 billion under the Masto standard.

    While the 50 state settlement would supposedly help 300 million borrowers, it is only seeking $17-$25 billion.

    “progressive” has been rendered meaningless by being adopted by pretty much everyone to the left of Attila the Hun ~ Yves Smith The Stars Hollow Gazette

    by TheMomCat on Thu Sep 29, 2011 at 02:10:20 PM PDT

    •  BoA is Masto's next target (2+ / 0-)
      Recommended by:
      priceman, splintersawry

      Nevada AG puts Bank of America on notice over foreclosures

      As foreclosures continue and homeowners cry foul against lenders in their bids to stay in their homes, Nevada’s Attorney General Catherine Cortez Masto is taking on Bank of America in federal court. And the issue is going to heat up as Cortez Masto’s office investigates BofA and other parties in the foreclosure process. She says criminal charges are likely coming to the industry soon, which could provide more ammunition for her foreclosure fraud case.

      Cortez Masto wants to revoke a 2009 settlement with BofA over loan abuses involving its Countrywide Financial Corp., saying the bank has violated its terms. She claims the banking giant has harmed homeowners by failing to modify their mortgages and maliciously deceived some by telling them their loans would be modified, then foreclosing on them. BofA denies the allegations.

      snip

      Cortez Masto stopped by the VEGAS INC offices to discuss Assembly Bill 284, which she and Assembly Majority Leader Marcus Conklin, D-Las Vegas, pushed in the last session to protect homeowners and businesses from mortgage fraud.

      The law, which takes effect October 1, requires documents used in the foreclosure process to be recorded with counties and specifies who can be a trustee on a deed of trust along with a trustee’s duties in the foreclosure process.

      “progressive” has been rendered meaningless by being adopted by pretty much everyone to the left of Attila the Hun ~ Yves Smith The Stars Hollow Gazette

      by TheMomCat on Thu Sep 29, 2011 at 02:24:18 PM PDT

      [ Parent ]

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