... for Mortgage Fee-Taking Fiasco.
The financial world continues to offer headlines about fees taken from issuing mortgages to people who could not afford them. Unfortunately the news behind the headlines does not offer much hope of a remedy. See, e.g., Barry Ritholtz, "Why Didn't Prosecutors Go After Wall Street?" (July 14, 2011 post on "The Big Picture" Blog); Barry Ritholtz, "Will the AGs Turn the US Into a Banktocracy?" (July 11, 2011 post on "The Big Picture" Blog)
Banks and other lenders are making claims on Mortgage Insurance Companies as a result. Defaults by mortgagors translate into fewer fees collected. Mortgage Insurance Companies may have found a remedy for these claims in Rescission. The remedy is based on the simple concept that the Banks and associated persons provided nothing short of material representations in their applications for Mortgage Insurance that the Mortgagors were just not able to pay their Mortgages from the outset. See, e.g, Download JPMorgan Chase Bank, N.A. v. Republic Mortgage Insurance Co. (D.N.J. Case No. 10.06141, Opinion Filed May 4, 2011) PUBLIC RECORDS ACCESS, also published as 2011 WL 1750439 (D.N.J. May 4, 2011)(authorized password required to access Westlaw) and sources cited in this seminal case.
Will Rescission become a way of doing business in the Great Recession caused by the applicants who caused the Mortgage Fee-Taking Fiasco? Time will tell.
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Thanks for your nice article. It is really providing great information to the readers. Some one tell me, is it possible to use Lenders Mortgage Insurance for Investment Property? I have read one article "Using Lenders Mortgage Insurance for Investment Property" at http://www.lendersmortgageinsurance.net/Benefits-of-Lenders-Mortgage-Insurance.html What do you think?
Posted by: Account Deleted | September 12, 2011 at 06:34 AM