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egamarro
81 Posts |
 Posted - 06/30/2008 : 9:37:14 PM
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This story caught my eye wanted to know if anyone in the originating side of this had any comments.
http://uk.reuters.com/article/ousiv/idUKN2634924420080630?pageNumber=3&virtualBrandChannel=0&sp=true
The reason I was wondering is because I remember looking at some of the loan documents from a few B.F. SAUL MORTGAGE loans that I helped process, if anyone recalls B.F. SAUL was a wholesale channel for Chevy Chase, your comments would be appreciated. |
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ppulatie
2259 Posts |
Posted - 06/30/2008 : 9:42:09 PM
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This has been a ongoing case for quite some time. If upheld, every lender who has done Option Arms is going to go down.
Essentially, the complaint says that by only showing the payment rate on the TIL and not disclosing how the balance can really change, that it was deceptive and fraudulent.
This is part of the same argument that is being used against CW. |
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peter
4612 Posts |
Posted - 06/30/2008 : 9:43:45 PM
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This is the payback on the toxic NegAm Option Arm, and
it may have been the main reason why Wachovia has now
decided not to offer Pic A Pay O/A any more. More class
action lawsuits may be waiting in the wings for Wachovia
and other POA lenders too.
As home prices continue to fall, the incentives to sue
are enhanced with the distressed borrowers scapegoating
the lender, although during the boom years of POA originations
they might have been the one who asked for it.
Peter |
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egamarro
81 Posts |
Posted - 06/30/2008 : 9:45:36 PM
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quote:
Originally posted by ppulatie
This has been a ongoing case for quite some time. If upheld, every lender who has done Option Arms is going to go down.
Essentially, the complaint says that by only showing the payment rate on the TIL and not disclosing how the balance can really change, that it was deceptive and fraudulent.
This is part of the same argument that is being used against CW.
I was just wondering if anyone saw any of the paper coming from B.F. Saul the reason this story caught my eye was the fact that I saw e legal issue with Chevy Chases TIL in the documents they were sending us 2 years ago, it actually led to us severing ties with that lender but only after funding a serious amount of loans with them |
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crankyusi
660 Posts |
Posted - 06/30/2008 : 10:02:05 PM
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| Be careful of what you wish for. If the homeowner wins and gets a rescission, that payoff amount to the bank might be higher than what they might get in a foreclosure or a short sale or regular sale. |
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