Items Tagged with 'Bankruptcy Court'


  • Wells Fargo to pay $13 million to settle claims of improperly modifying bankrupt borrowers’ mortgages

    Lawsuit accused bank of improperly filing mortgage payment change notices
    Wells Fargo will pay more than $13 million to settle a pending class-action lawsuit that accused the bank of “improperly” modifying the mortgages of borrowers who had declared bankruptcy. The complaint alleged that the bank engaged in “fraud, violations of bankruptcy rules and laws, and unfair and deceptive trade practices” by “improperly and unilaterally” modifying the mortgages of the bankrupt borrowers.
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  • Walter Investment files for Chapter 11 bankruptcy

    Nonbank says prepackaged restructuring plan will reduce debt by $800 million
    Walter Investment Management Corp., which has suffered through several rough years, is taking a drastic measure as it fights to survive. The nonbank announced late this week that it is filing for Chapter 11 bankruptcy as part of a prepackaged restructuring plan that aims to eliminate $800 million in debt and place the company on firmer footing going forward.
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  • Disappearing bankruptcies could start new wave of homebuying

    Credit scores hit record high
    Years after the housing crisis’ peak in bankruptcies, Americans are finally starting to see the filings drop off their credit report. Over the next few years, millions of consumers will see their bankruptcies drop off their report and their credit scores improve, allowing them to once again consider homeownership.
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  • Alleged 'Fee-Splitting' at Fidelity Leads to Class-Action

    The Associated Press broke a story Wednesday of last week which, to say the least, has the default servicing industry buzzing. A lawsuit, filed Jan. 16 in the U.S. Bankruptcy Court in Houston, claims that Fidelity National Information Services Inc., engaged in "undisclosed kickback/sharing of bankruptcy creditor attorney fees to a non-law firm corporate entity." From the Associated Press:
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  • HomeBanc Mortgage Corp. Files for Bankruptcy

    Another stunning mortgage lender failure came down the pike today, with HomeBanc filing for bankruptcy less than a week after it said it could no longer fund loans. From the Associated Press: Just days after it sold five retail branches to Countrywide Financial Corp., Southeast regional mortgage lender HomeBanc Mortgage Corp. filed for bankruptcy protection in U.S. Bankruptcy Court in Delaware ...
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