Skip to comments.OneWest Bank accused of pushing home loan borrowers into foreclosure (Chuckie's IndyMac 'Bride')
Posted on 02/21/2010 10:28:30 AM PST by NormsRevenge
Nineteen months after the catastrophic failure of one of Sacramento's top lenders, Pasadena-based IndyMac Bank, a flurry of local lawsuits alleges that the bank's successor OneWest Bank is systematically working to push home loan borrowers into foreclosure.
The allegations filed in the Eastern District of U.S. Bankruptcy Court claim that OneWest can make more money by foreclosing than by keeping borrowers in their homes. That's due to its so-called "shared-loss" agreement with the Federal Deposit Insurance Corp., at least 10 local lawsuits allege.
A video made in Fairfield and circulating widely on the Internet also alleges that OneWest stands to earn millions from taxpayers by foreclosing on borrowers as a result of its shared-loss agreement with the FDIC.
The FDIC declined to comment on the Sacramento lawsuits, but it recently denounced the video's "blatantly false claims." The agency told The Bee that its agreement with OneWest contains provisions to make sure the lender is taking adequate steps to modify loans.
OneWest declined to comment on either the lawsuits or the video.
The FDIC, which seized IndyMac in July 2008, sold the failed institution to Pasadena-based OneWest in March 2009.
As part of the deal, the FDIC agreed to absorb some losses from the troubled loan portfolio. That's after OneWest absorbs the first $2.5 billion in losses, the FDIC said.
But Sacramento bankruptcy lawyer Peter Macaluso claims the shared-loss agreement will reward OneWest for foreclosing on homes. Here's how, he said: The company bought IndyMac's troubled portfolio at a 30 percent discount. It can count on the FDIC eventually reimbursing 80 percent or more of its losses and also can keep proceeds from the foreclosure sales.
"They're deliberately blowing people out in a systematic pattern," said Macaluso.
(Excerpt) Read more at sacbee.com ...
Your 'work' in sinking IndyMac is paying big dividends for your cronies.
Ohio Man Bulldozes Home Ahead of Foreclosure Video
One West Bank owns IndymacBank and is Riddled with Corruption Relating to Mortgage Foreclosures. The Bleeding of America Continues!
One West Bank is the new name for Indymac Federal Bank, which was recently sold to a consortium of investors. The consortium is headed by Goldman Sachs VP Steven Mnuchin (also of Dune Capital Management in New York) and also includes hedge fund operator J. Christopher Flowers, who has specialized in distressed bank purchases, and hedge fund operators, big time Goldman Sachs investors, and billionaires George Soros and John Paulson.
MUST SEE VIDEO!
Crux of the Video:
One West Bank was sold IndymacBank by the FDIC in march 2009. Now, One West Bank is benefiting from forced “short sales” of properties with foreclosed mortgages BECAUSE in addition to receiving the reduced sale price from the new property owner, it also receives 80% of the difference between the original sale price and the discounted sale price from the FDIC and it receives payment on a promisary note from the original property owner. This makes it IMPOSSIBLE for One West Bank to EVER lose ANYTHING on any real estate sale it finances.
See also “One West Bank”
Investors have injected $1.5 billion into the bank on top of the $10.5 billion paid by the FDIC. That raises the banks tangible common equity to over 9% versus an industry average of 4-6% range. The government will also share in future loan losses.
See also “Indymac Purchased by Mnuchin, Paulson & Co. and Others “
Look at the mess IndyMac and Countrywide made. Throw WAMU in there too!
Look at this guy’s presentation of the housing and mortgage markets.
Its under “Update on Housing and Commercial Real Estate and Mortgage Markets”
The Left Coast is a disaster thanks to these banks. They loaned money, a bubble formed and popped. And now they want to foreclose AND send a huge bill to the borrowers!!!
Beware the short sale scam. They want you to pay hundred of thousands of dollars on top of losing your house. And they still collected their fees.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.