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Borrowers sue over apparent loan mod mishaps
Headline Legal News | 2011/07/05 09:29
It seemed Maria Campusano's financial problems were behind her when the mortgage on her Victorian home in a Massachusetts mill town was chopped by hundreds of dollars a month.

She soon learned that her troubles had just begun.

Weeks after making her first payment under the new rate, the school district staffer began receiving past-due notices, documents showing wildly inaccurate loan balances and letters threatening foreclosure. She now fears she'll lose her home.

"How can they take away what I have worked so hard for?" Campusano said.

Campusano is one of two named plaintiffs in a proposed class-action lawsuit alleging breach of contract by Bank of America NA and subsidiary BAC Home Loans Servicing LP.

The suit, which was filed in Los Angeles federal court because BAC is located in nearby Calabasas, is among a growing number of legal complaints accusing banks of disregarding what should be binding agreements to reduce the monthly mortgage payments of troubled borrowers.

The suits involve permanent modifications through the U.S. Treasury-administered Home Affordable Modification Program, which offers incentives to loan servicers who extend modifications, as well as so-called proprietary modifications, which banks offer independently of the government guidelines.

They represent a new wave of complaints against banks that have already weathered years of criticism for their reluctance to modify loans and for foreclosing on borrowers after offering them trial modifications.


Idaho landowners to get high court hearing
Headline Legal News | 2011/06/28 22:29

The Supreme Court has agreed to consider the rights of landowners when confronted with an order from the Environmental Protection Agency that they are violating the federal Clean Water Act.

The justices on Tuesday added the case of Idaho property owners Chantell and Michael Sackett to their lineup for the term that begins in October. The Sacketts contend that EPA left them with no practical way to object to the agency's determination that work on their half-acre parcel violated federal law and tried to coerce their compliance through the threat of costly fines.

The Sacketts say they would either have to apply for a federal permit that could cost as much as the property itself, or wait for the EPA to go to court to force them to comply.




Court won't hear restitution claim in Ponzi case
Headline Legal News | 2011/06/13 20:29
The Supreme Court has rejected an appeal from investment funds seeking repayment of their losses in a $3.7 billion Ponzi scheme operated by Minnesota businessman Thomas Petters.

The funds together lost $165 million and challenged a federal judge's order denying restitution to any of Petters' victims. Among other things, the court said the victims would have other ways of recouping some of their money.

The justices on Monday refused to disturb the ruling.

A federal law generally requires a court to order restitution as part of a defendant's sentence, but allows for some exceptions. The judge in this case said that restitution would be too complex, take too long and result in the payment of less than a penny for each dollar victims lost.



2 ex-judges, lawyer back to prison in Miss scheme
Headline Legal News | 2011/06/13 20:28
Two ex-judges and an attorney from Mississippi must return to federal prison for their convictions in a loan scheme.

A federal appeals court had vacated their bribery convictions but upheld the guilty verdicts on corruption charges. So they needed to be resentenced.

U.S. District Judge Henry T. Wingate denied requests by Paul Minor and former Harrison County judges Wes Teel and John Whitfield to be re-sentenced to time they have already served.

Wingate on Monday sentenced Minor to eight years, Teel to four and Whitfield about six — all less than previous.

Prosecutors said Minor would guarantee loans for the judges, then used cash and third parties to pay off the debts. Judges then ruled in his favor in civil cases. He has long said he is innocent and was making loans to help friends.



Ohio judge says Ford must pay dealers $2B
Headline Legal News | 2011/06/10 23:50
Ford Motor Co. must pay nearly $2 billion in damages to thousands of dealerships in a 2002 class-action lawsuit that said the automaker violated dealer agreements, an Ohio judge ruled Friday.

Cuyahoga County Common Pleas Judge Peter Corrigan in Cleveland issued the ruling based on a Feb. 11 jury determination that the company overcharged dealers for commercial trucks over an 11-year period.

The $2 billion award covers more than 3,000 dealerships and about 474,000 trucks. It includes a judgment of about $781 million and about $1.2 billion in interest.

"In awarding the dealers the amount of money they overpaid for trucks, the jury verdict places ... the dealers in the financial position contemplated by the terms of the contract," said James Lowe, a Cleveland attorney for Westgate Ford Truck Sales Inc., a dealership in Youngstown that represents the class.

Ford's annual report, filed on Feb. 28, says the class action included all dealers who purchased a 600?series or higher truck from Ford from 1987 to 1997. It says the lawsuit accused the automaker of failing to reveal that price concessions were given to some dealers.



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