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Send email to Pamela Jones of Groklaw...
Its amazing what filing information bloggers can get.
More legal fun- Look, Wells Fargo is settling a subprime suit because it helped the poor just a little too much:
CNNMoney.com: 404 Page Not Found
Interesting that this relates to WF's behavior in 2003...quite awhile before those crazy times Ranieri was talking about..
Yeah, Nicholas, I thought I'd just throw that out there and see if one of our attorney readers would leave a little surprise in my e-mail. I could legitimately be considered a lazy soul.
It's interesting, because until 2006 got underway, 2001 was the all-time cruddiest vintage in recent history. There cannot be much left of it except the dregs that no one can do anything with. Anyway, I was interested in the fact that they seem to have purchased a seasoned bond of a sucky vintage at the near bottom of the rate cycle. I guess they thought there wasn't enough alpha in those 2004 issues.
Moral: When things financial go hinky, sue the deepest pockets. Nobody else will do.
That is not to say that the deep pockets have no culpability. Rather, this torts stuff has to have a practical value, and bankrupt mortgage brokers don't really seem very appealing except as a formality.
From a quick hit at Justia.com
Bankers Life Insurance Company v. Credit Suisse First Boston Corporation et al
Plaintiff: Bankers Life Insurance Company
Defendant: Credit Suisse First Boston Corporation, Credit Suisse First Boston Mortgage Securities Corp., DLJ Mortgage Capital, Inc., Triad Guaranty Insurance Corporation, Select Portfolio Servicing, Inc. and Bank of New York
Case Number: 8:2007cv00690
Filed: April 23, 2007
Court: Florida Middle District Court
Office: Tampa Office [ Court Info ]
County: Hillsborough
Presiding Judge: Judge Elizabeth A. Kovachevich
Referring Judge: Magistrate Judge Mary S. Scriven
Nature of Suit: Other Statutes - Securities/Commodities/Exchanges
Cause: 28:1331 Fed. Question: Securities Violation
Jurisdiction: Federal Question
Jury Demanded By: Plaintiff
and bankrupt mortgage brokers don't really seem very appealing
Yeah, especially if you're on the hook for their bail bonds.
Goldman, Merrill and UBS all out this morning calling for a housing-led US recession.
I only see the article on Bloomberg so far, if you have access.
So that means they're (GS, ML, UBS) out of their positions, or have bought enough hedge in the other direction. Let the debris fly.
The 2001 date does leap out... the pipeline got MUCH bigger a few years later so we should assume there is MUCH more legal fun ahead.
Since for once I'm not hopelessly late to the discussion ...
One topic in Saturday's post was about "Q election", accounting rule Fin 140, and how mind-bogglingly hard it would be to re-do a lot of mortgages in a pool should that become necessary. WaMu uses something called Early Payment Facilities to do risk sharing and move baskets of mortgages off their balance sheet using sales accounting. At Fannie, it's called QSPEs. Am I correct in guessing that it would be very hard to unscramble these eggs, should the unfortunate borrowers embedded in these vehicles need relief in their mortgage terms?
Sleaze versus sleaze.
Don't you hate it when that happens.
I hope that is not too far off topic.
Am I correct in guessing that it would be very hard to unscramble these eggs, should the unfortunate borrowers embedded in these vehicles need relief in their mortgage terms?
That's what it looks like to me. And given the competing interests bearing down on our Elected Solons--the financial markets breathing down their necks, the grassroots borrower-voters gonna throw their sorry asses out in 2008--I predict utter inaction masked by some fairly stupid but low-impact cosmetic legislation. Unwinding in legislative gridlock. Doesn't that sound like fun?
Oops! misspoke, WaMu's 140 vehicles are called Early Purchase Facilities. This 2004 PPT is the smoking gun.
http://www.mortgagebankers.org/files/Conferences/presentations/91st_annual/InnovativeFundingStrategies.ppt
With regard to unwinding in legislative gridlock, are you referring to the Iraq war or to the mortgage lending implosion?
[End snark]
Movie title:
President Rove and the Perfect Storm: "I regret that I have but 3,500 lives to give for my country."
arbogast: ... the Iraq war or to the mortgage lending implosion?
They are conjoined twins. The re-fi boom funded GWOT. That's why I'm here.
Tanta, do you subscribe to Inside Mortgage Finance:
Inside Mortgage Finance - What the Mortgage Market Reads | Industry Data, News and Analysis
If so can you please tell us if they have any juicy tidbits. Thanks
Charlie, I don't subscribe, and I no longer work for a subscriber. I should also say, for the benefit of anyone else out there, that IMF is willing to go after copyright violators. That's one reason you don't see a lot of their stuff freely available on the web.
i agree that their website is horrific.....in the interest of full disclosure i am a bond salesman....Having unburdened myself of that bit of heavy baggage,i wonder how there guys can expect to win.I dont know this investor personally but i have to assume they have a bit of expertise and market savvy.Whyisnt the onus on them to figure out what the helll they are buying JJJ
Business grows at MI cos
http://www.privatemi.com/news/statistics/pdfs/March-2007-Press-Table.pdf
i have to assume they have a bit of expertise and market savvy
Nope. As soon as a risky investment proves why it was risky in the first place, the investor becomes a feckless naif at the mercy of wolves. Surely if you sell bonds you read that in the Bondholder Credo?
Welcome to the conversation. I've originated mortgage loans, so having a background as Part of the Problem never disqualifies anyone around here. Sure, we've got a couple of Perfect Righteous Trolls, but that's just entertainment.
Lord be with us. AHM is up 2% on another guidance misunderestimation.
RE: Bankers Life Insurance Company v. Credit Suisse First Boston Corporation et al
Anyone with a Pacer account can get a copy of the complaint and post it. Some times in a breach of contract case, the contract is filed with the complaint.
I think that anyone can get a copy of the court file if they have a Pacer account. In other words, I doubt that the case is sealed and I do not think that you have to be an attorney. It is a public record.
The pacer charge is $.08 to $.10 a page.
Tanta is right, the complaint would make an interesting read.
My theory is that the housing market will go into a substantial correction when the liquidity has dried up. Liquidity will substantially dry up when the investment bankers can no long sell the securitized debt.
Since OT is OK this AM...
Consumer Spending Rises at Slowest Rate in 5 Months in March
WASHINGTON (AP) -- Consumer spending rose at the slowest rate in five months in March, even though personal incomes posted a solid gain.
The Commerce Department reported that consumer spending on all items was up 0.3 percent last month, the slowest increase since a similar rise in October. Incomes rose by 0.7 percent, the fourth straight solid month of income growth.
The spending performance was even weaker when the effects of higher gasoline prices were removed. After adjusting for price increases, consumer spending actually fell by 0.2 percent in March, the poorest showing since the fall of 2005 when the economy was suffering the aftershocks of Hurricane Katrina.
[...]
After-tax incomes were also up 0.7 percent although this gain shrank to just 0.2 percent when the effects of inflation were removed.
The personal savings rate remained in negative territory for the 24th consecutive month. The rate was a minus 0.8 percent in March, slightly better than the negative 1.2 percent recorded in February.
Savings rate still negative but less so... people still spending but less so.
Overall this is a pretty damn good report if you are a fan of people returning to sanity. Probably why GS, UBS et.al. are all calling for a housing lead recession & bitching at BB.
Okay - I'll be quiet & get back on topic... what were we talking about? Oh ya lawyers...
No, dryfly, we were talking about guns and money. You just thought that meant lawyers.
more Lawsuit information
Mortgage Servicing Fraud Forum
The life/health side of Bankers Life sells a lot of credit insurance (life/DI coverage taken out with a loan that covers outstanding principal or payments should death or disability occur). Credit insurance is an immensely profitable product (but not that great a deal for the consumer). According to a coworker who spent some time there, the Florida DOI considers them to be a bit iffy and goes over the books thoroughly and regularly.
Gilchrist Executive Retreat & Conference Center is a private retreat located on the 23,000-acre Suwannee Lake Plantation in Florida. They are associated with Gilchrist Club, a private hunting club.
The next step beyond the gated community: The Moated Community.
The prospectus says the loans had underwriting standards less stringent than those of Fannie Mae and Freddie Mac and "may have been made to mortgagors with imperfect credit histories." The prospectus added that the loans' delinquencies and foreclosures "may be substantially higher than those experienced by mortgage loans underwritten in accordance with higher standards."
One of Sterling's primary allegations is that APS Financial and Raymond James did not adequately monitor the performance of the MBS and its underlying loans. The bank also maintains the brokerages did not take required steps of warning about "suitability" of the investment after its non-performing loans began growing and after Moody's Investors Service in 2005 began lowering its rating on the MBS.
Oh, so now your dealer monitors your holdings for you? What do they charge for that?
Nicholas,
You beat me to it... my thoughts exactly... Let us send an email to Pamela Jones, of Groklaw (http://www.groklaw.net)
She is an amazing paralegal, who has been following the SCO Vs X (implying all the companies it can sue)
She could give us a small writeup on how to check legal briefings pertaining to the mortgage industry.
So will the Fed raise rates now that there is evidence of Wage inflation, and not the usual, you know, fake inflation? ;
BTW Many Superior Courts list bus/corp cases online. Check by co.names. Federal?
Are many of you aware of companies
practice of "Peasant" Life Insurance on employees and where the proceeds reverted back to?
PACER stands for Public Access to Courts' Electronic Records. It is all federal courts and all filings in federal court must now be in electronic form.
PACER is available to anyone with a credit card. The price for VIEWING a document is 8 to 10 cents per page. I have not figured out how they tell which to charge. Once you have paid to view a document you may download and print it.
Most state courts have electronic dockets available to the public, but you have to go into the clerk's office and either read there or make a xerox copy of what ever pleading interests you.
When filing a complaint for breach of contract it is necessary either to attach the contract or to quote the relevant parts in the complaint.
It looks at quick glance, however, as if the Credit Suisse case is not a contract case, but rather a federal securities law case and the contract/prospectus may not be attached.
This case was filed in federal district court and the only way that you can get a copy of the complaint from the court is via Pacer. For electronic transmission, Pacer is .08 per page. They will charge your credit card the per page that you download in an Adobe file format.
You will need a Pacer account, after you sign up for an account it takes a little while for the account to be established.
Better to find someone with a Pacer account and pay them. What you want to look at is the Complaint and any attachments to the complaint.
I do not know how to get the Adobe file posted to Haloscan. But you could post the complaint at FindLaw in the documents section and then post the link into CR's Haloscan comment section.
again thank you tanta for the insight into a clouldy murk .we here all wait what will come of us all?
I have a Pacer account, though I don't have my login info here at work.
Signing up is free, but not instant. It is worth doing. I used to run searches for names (usually managers/backers of shady little public companies) fairly often. I stopped being surprised how often I'd get a hit.
It has been a while since I used it. I originally signed up when a public company filed a John Doe suit against me, because they didn't like what I was saying about them on the Yahoo stock message board. They dropped the suit the day before I would have been able to file an anti-SLAPP countersuit against them.
Anyway, my experience has been that, while there is a per-page charge to view documents, you don't get billed unless your charges are above some amount.
I never reached that amount, because most of the things you can view on PACER are (or were, at the time) just basic descriptions of the documents that have been filed and the motions that have been made.
Most courts have someone you can contact to copy and mail hardcopies of the filings. You can use Pacer to identify a specific document you want to look at, and then provide the info to the copy service. The per-page cost isn't too bad, but my case documents were in the 20-40 page range. Make sure you know how big it is before you request the document.
The last I looked, electronic versions of court documents were still rarities. I hope that has changed.
I'll try to take a look at the case tonight, but some young children have veto power over my evening schedule.
Too late to reach most here, but bet that most did not know about "Peasants "Life Insurance policies. They were being used up until several years ago.
Corporations paid the proceeds as bonuses etc. to their execs.
Yes, correct about the difference between access to the Complaint & the atached Contracts,etc.
No, dryfly, we were talking about guns and money. You just thought that meant lawyers.
Tanta | 04.30.07 - 10:22 am |
heheh. Another sign of your good judgement - a veiled Warren Zevon reference.
Sorry. My PACER account has been disabled.
It seems that my charges crossed the $10.00 threshold where PACER begins to seek payment.
I tried paying online, but it looks like the payment won't hit until the end of my card's current billing cycle.
And I'm not sure payment will go through then , because I have an old address on the PACER account and PACER won't let me enter a new address until my account is paid up.
Ottnott
Nice try. Thanks for the effort.