Chase in Foreclosure Agreement With Federal Government
April 19, 2011
“Chase Bank, the retail banking unit of JPMorgan Chase & Co., announced that it is very close to finalizing a consent decree that will end a federal investigation into the bank’s foreclosure practices and policy, which many have considered to amount to foreclosure fraud.
According to a statement by Chief Executive Officer Jamie Dimon the decree will result in “”some very significant changes,”" in the processes the bank uses when foreclosing on home owners nation-wide and also addresses the use affidavits, documentation and fees charged in the mortgage foreclosure process.
The proposed decree doesn’t address the question of fines and penalties. Mr. Dimon states there will be fines and penalties to Chase, but due to the complexity of the matter they will be determined later; possibly by litigation.”
J.P. Morgan Chase Bank Writes Down Mortgage Servicing Unit
April 19, 2011
“In a move that could send Jitters across the financial service markets, J.P.Morgan Chase bank has written down the value of their mortgage servicing business unit by $1.1 billion.
This has resulted in first quarter losses to their retail financial services unit.
Wall Street analysts predict that this could have an adverse impact on the mortgage servicing operations of other major banks such as Wells Fargo, Bank Of America and Citi Bank.
Mortgage servicing business has not been profitable in the last 2 years because of the uncertain economic conditions and the meltdown of 2008.
One more important reason for this write down that is being told by the people in Chase is that the mortgage servicing business will not be profitable due to the new rules and restrictions imposed by the Federal Reserve.”
Additional information at: http://www.marketwatch.com/story/once-hot-mortgage-servicing-goes-cold-2011-04-13
Problem Bank List – 985 Banks and $432 Billion – Have We Recovered Yet?
April 19, 2011
“The Calculated Risk Blog has listed another problem bank list and surprisingly, the number of failing banks has increased to 985 in the new list.
The collective worth of these problem banks stands close to $432 Billion. Some of the banks managed to stay out of the problem bank list, irrespective of the fact that they were a part of this list when the problem bank list was released last time.
However, the surprising and depressing fact for the economy is that even after two years of global recessionary jolts, the failing banks are increasing in number at a gradual speed. This is hinting towards an underlying problem related to the fund management and monetary flow in the country.
Sooner or later, these failing banks would be taken over by the FDIC or the Federal government or will be liquidated – but for the economy, it would not be the best thing to happen. It is high time that the Obama administration steps up and establishes a strong monitoring system in place to eradicate the bad practices followed by the banks.”
Find out more: http://www.calculatedriskblog.com/2011/03/unofficial-problem-bank-list-increases_26.html