Kevin Funnell at Bank Lawyers Blog is a bit cynical about the Department of Justice’s headline-ready threats of enforcement action:
[The DOJ claims] appear to be based upon consumer advocates’ claims that the bank takes better care of foreclosed-upon real estate it owns in neighborhoods where white people live than it does in areas where minorities live. I suspect that the bank will assert that (a) any rational real estate owner is only going to invest money in a piece of real estate where the owner has a realistic chance of recouping that investment through a higher sales price, (b) that such recoupment decisions are made on a property-by-property basis based upon objective data like recent comparable sales prices and fair market valuations, (c) that the economic reality-driven facts of life are that many more such properties are located in majority-white neighborhoods than in minority neighborhoods, and (d) there has been no intent to discriminate, merely to minimize losses…. As we’ve previously noted, the DOJ is on a jihad against lenders based upon “disparate impact” theories that the DOJ knows, in its heart-of-hearts, are highly fragile when exposed to the light of logic, the kind of logic applied by the US Supreme Court. Justice will likely pursue Wells Fargo and try to squeeze some dough out of it before the highest court eventually shuts down this racket.
Tagged as:
fair housing,
mortgages
A story about Bank of America suing itself in a foreclosure action got a bit of publicity recently, from sources like Credit Slips blogger and lawprof Alan White, but the snark was misplaced, says Kevin Funnell. Banks serve in various capacities in the real estate context and that makes such situations inevitable: “The bank is agent for the owner of the first lien loan and is also the owner, in its individual capacity, of the second lien loan. It has to name itself. This is ‘Foreclosure 101.’”
For instances of “auto-litigation” with a bit more to them, see this one from Illinois a few years back, as well as the ones collected at Lowering the Bar.
Tagged as:
banks,
mortgages
- Lawsuit claim: MERS mortgage system is just a racket to deprive court clerks of recording fees [Baton Rouge Advocate]
- More reporting on hospital and community drug shortages [Washington Post; my post last summer]
- Roger Pilon: How the “judicial activism” debate changed [Cato at Liberty]
- Louisiana Gov. Bobby Jindal, spoken of as a future national political figure, has rather a lot of ties to trial lawyers [Political Desk]
- Problems with DOJ e-book antitrust suit targeting Apple [Declan McCullagh]
- One bogus campaign feeds into another: “ALEC Unfairly Demonized Over ‘Stand Your Ground’ Laws” [Bader, CEI "Open Market"]
- New Point of Law discussion on class actions with Ted Frank and Brian Fitzpatrick;
- Today’s best spam comment? “With all the thistledown floating almost on the net, it is rare to look over a locate like yours instead.”
Tagged as:
antitrust,
Apple,
class actions,
Louisiana,
mortgages,
politics,
Ted Frank
- “MPAA: you can infringe copyright just by embedding a video” [Timothy Lee, Ars Technica]
- NYC: fee for court-appointed fire department race-bias monitor is rather steep [Reuters]
- Larry Schonbron on VW class action [Washington Times] Watch out, world: “U.S. class action lawyers look abroad” [Reuters] Deborah LaFetra, “Non-injury class actions don’t belong in federal court” [PLF]
- Will animal rights groups have to pay hefty legal bill after losing Ringling Bros. suit? [BLT]
- You shouldn’t need a lobbyist to build a house [Mead, Yglesias]
- “Astorino and Westchester Win Against Obama’s HUD” [Brennan, NRO] My two cents [City Journal] Why not abolish HUD? [Kaus]
- “Community organized breaking and entering,” Chicago style [Kevin Funnell; earlier, NYC]
Tagged as:
animal rights,
bloggers and the law,
Chicago,
class action settlements,
class actions,
fair housing,
land use and zoning,
loser pays,
mortgages,
movies film and videos,
NYC,
real estate
A British Columbia court has allowed a suit to proceed arguing that a government lending program which included inspection of the property to be renovated could incur a duty to third persons who might later fall on a staircase whose faults allegedly would have been detected had inspection not been negligent. [Erik Magraken; Benoit v. Banfield]
Tagged as:
Canada,
mortgages,
real estate,
slip and fall
- “Are Courts Dragging Out the Housing Crisis?” [Mark Calabria, Cato] “Boom-Era Property Speculators to Get Foreclosure Aid” [Bloomberg News via Bader, CEI] Community organizing groups expect to cash in on state AGs’ robosigning settlement [Neil Munro, Daily Caller, earlier] As does NAAG itself [Daniel Fisher] More: Kevin Funnell.
- “Non-standard explanation offered for bugging wife’s bedroom” [Lowering the Bar]
- Chris DeMuth on James Q. Wilson [Weekly Standard, earlier] I wrote about Wilson’s work on at least two occasions: the Baltimore Sun had me review a book of his on “abuse excuses” and other difficulties of psychiatric testimony in court, a good book if a mere foothill in the mountain range of his overall scholarship; on another occasion in Reason I challenged his uncharacteristic backing of a “family policy” proposal ripe with potential for unintended consequences;
- Boston city councilor: make valet kid at restaurant responsible if patron drives off drunk [NPR via Alkon]
- “Texas is being stiff armed by the EPA at every turn” [Munro/DC quoting Texas attorney general Greg Abbott] NYT’s “modest” offshore drilling restrictions: “I hate to think what immodest restrictions would look like” [John Steele Gordon]
- “The Southern Poverty Law Center Is Now Writing About Pickup Artists as Hate Groups” [Mike Riggs]
- SFO rental car garage offers a whiff of Prop 65 absurdity [Stoll]
Tagged as:
attorneys general,
Boston,
dramshop statutes,
Environmental Protection Agency,
hate speech,
mortgages,
Prop 65,
Texas
- Department of Transportation cracks down on distraction from cars’ onboard information and entertainment systems; Mike Masnick suspects the measure won’t work as intended, as appears to have been the case with early texting bans [Techdirt; earlier here, etc.] “Feds Push New York Toward Full Ban On Electronic Devices In Cars” [Glenn Reynolds, Instapundit; Truth About Cars]
- Oh no: Scott Greenfield says he’s ceasing to post at his exemplary criminal defense blog after five years [Simple Justice, Dave Hoffman]
- California not entitled to pursue its own foreign policy, at least when in conflict with rest of nation’s: unanimous “blockbuster” decision by en banc 9th Circuit strikes down law enabling insurance suits by Armenian victims [AP, Alford/OJ, Recorder, related, Frank/PoL]
- Playboy model’s $1.2M award against Gotham cops is a great day for the tabloids [NYDN]
- To hear a pitch for fracking-royalty suits, visit the American Association for Justice convention, or just read the New York Times [Wood, PoL]
- What the mortgage settlement did [John Cochrane, earlier]
- Indian Child Welfare Act (ICWA) of 1978 blows up an adoption: “She’s a 2-year-old girl who got shoved in a truck and driven to Oklahoma with strangers.” [Reuters, SaveVeronica.org]
Tagged as:
AAJ,
adoption,
autos,
California,
Indian tribes,
insurance,
legal blogs,
mortgages,
oil industry,
reparations
- Mortgage robo-signing settlement not actually as punitive toward the banks as you might think, succeeds in sticking costs onto various parties not at table [FT, more (US taxpayers could wind up covering much of write-down costs through HAMP program); Felix Salmon (write-downs of underwater mortgages should not be assessed at face value); Mark Calabria, Cato and more, Bloomberg (banks managing to offload much of the cramdown onto investors such as pension funds); Daniel Fisher/Forbes one, two, three (banks get covert benefits, politicos get social engineering and fees -- shades of the collusive tobacco settlement!); Above the Law (Schneiderman steers money to legal services programs); Linette Lopez, BI (banks still exposed on many issues). More: Hans Bader, John Steele Gordon.
- "Burned at mediation by my own Facebook post" [Stuart Mauney, Abnormal Use]
- As anti-discrimination law advances, religious liberty retreats [Roger Pilon, Cato] Two views on the birth control mandate [Cathy Young, David Henderson] More: Adler, Frum.
- Caswell Motel case from Tewksbury, Mass. heads to court, could test forfeiture law [Balko] More: Washington Post editorial.
- Which is more unreasonable, OSHA regulation or FAA’s? Open to dispute [John Cochrane, Grumpy Economist]
- Indiana becomes a right to work state. On to Michigan next? [Shikha Dalmia, Reason]
- Warning! Tale of trial psychologists in wizard garb comes from a sinister source, namely me ["In the News," forensic psychologist Karen Franklin, handsome illustration swiped from Cato site]
Tagged as:
aviation,
banks,
discrimination law,
Facebook,
forfeiture,
Indiana,
labor unions,
Michigan,
mortgages,
OSHA
The federal government is suing to overturn Chicago’s law requiring lenders to maintain properties they don’t own [WSJ editorial]:
Earlier this month the federal agency that oversees Fannie Mae and Freddie Mac sued Chicago for its vacant-buildings ordinance, which requires that a “mortgagee” register vacant properties, pay a $500 fee to the city, comply with onerous maintenance requirements and face a $1,000 daily fine for noncompliance. Any entity with a financial interest in the home—a bank, mortgage trust, mortgage servicer or Fan and Fred—is subject to the law, whether or not it has foreclosed on the home and owns the title….
The [Chicago enactment] came at the expense of small banks and mortgage servicers that can’t afford, for instance, to install “commercial-quality metal security panels” on windows or clean snow “from the walkway leading to the main entry door, and any public sidewalk adjoining the lot.” It’s legally dubious to impose these requirements on private owners of private property, and by doing so Chicago will raise the cost of mortgage loans to future homeowners.
More: Kevin Funnell, Bank Lawyer’s Blog; earlier here and here.
Tagged as:
mortgages
- “Ohio Attorney Sues Over Misleading Emails, Even Though He Wasn’t Misled” [Chris Danzig, Above the Law]
- Feds say new EPA-ordered fuel economy standards could add $2000 to price of new car [C.J. Ciamarella, Daily Caller] More: WSJ.
- Las Vegas considers following Chicago’s lenders-must-cut-grass folly [Kevin Funnell, earlier] “The Fed actually does impose, via legal risk, a de facto ceiling on mortgage rates.” [Mark Calabria, Cato]
- 2nd Circuit: Prison Litigation Reform Act curbs attorney fee shift at 150% of cash won, and yes, that applies to a $1 award [PoL] Panel on attorneys’ fees in class actions at Federalist Society convention [video, PoL]
- John McClaughry reviews Reckless Endangerment, Morgenson/Rosner book on financial crisis [Reason]
- Daniel Hannan on John Fonte’s new book on transnational law, Sovereignty or Submission [Telegraph, and see chapters 11-12 of Schools for Misrule] International human rights activism pushes into “economic rights” [James P. Kelly III, Federalist Society "Engage"] NGOs exercise oft-envied combination of power without responsibility [Anderson] UK attorney general Dominic Grieve takes on the European court of human rights [Joshua Rozenberg, Guardian] UN battle plan on non-communicable diseases aims to save us from ourselves;
- Sans statutory authority, EPA wanders into “environmental justice” [PowerLine]
Tagged as:
attorneys' fees,
autos,
Environmental Protection Agency,
Europe,
international human rights,
mortgages,
United Nations
- Sure, let’s subvert sound mortgage accounting in the name of energy efficiency. What could go wrong? [Mark Calabria, Kevin Funnell]
- California: fireworks shows are “development” and coastal commission can ban ‘em [Laer Pearce, Daily Caller]
- Trial lawyers’ lobbyist: I got Cuomo to bash Chevron in Ecuador case [John Schwartz, NYT]
- Politics of intimidation: “jobs bill” advocates occupy office of Sen. Minority Leader McConnell (R-Ky.) [ABC News] Union protesters invade Sotheby’s during big auction [NYObserver] “Occupy Denver protesters try to storm conference of conservative bloggers” [Denver Post] “What’s the matter with Oakland?” [Megan McArdle] Post-’08 downturn, not wealth of the few, at root of economic woes [Steve Chapman] “Bohm-Bawerk forget to include [Ms. Katchpole] in his commentaries on sundry theories of interest.” [Tyler Cowen]
- New breakthroughs in abundant energy aren’t welcome to some [NYT "Room for Debate"] Is GOP wrong to make EPA an issue? [Michael Barone]
- After extracting $450,000 settlement, employee admits falsifying whistleblower evidence in oil filter antitrust case; class action suits continue [Bloomberg, Abby Schachter/NYPost via PoL]
- Least surprising Washington-DC-datelined story of year: “Medical malpractice reform efforts stalled” [Politico]
Tagged as:
Andrew Cuomo,
antitrust,
California,
Chevron,
environment,
labor unions,
mortgages,
whistleblowers
With some help from Cato colleagues:
- As bailouts go, Fannie/Freddie’s is on track to cost more than TARP [Mark Calabria; related, Arnold Kling] “Engineering the Financial Crisis: Systemic Risk and the Failure of Regulation” [Cato forum this past Thursday]
- Just like Valley Forge out there in the snow? Are you sure? [Ann Althouse]
- Student loans have become more burdensome, especially given inability to discharge in bankruptcy. Who if anyone deserves blame? [Kenneth Anderson, Kling, Mystal/Above the Law] President’s proposed student loan revamp “won’t cost taxpayers” (and if you believe that one…) [Neal McCluskey]
- NY police union rep: we’ll sue protesters if they hurt us [USA Today]
- No new graphic ideas since, what, 1893? New Yorker envisions top-hatted capitalists in whiskers [David Boaz] Some demographics behind income inequality [Mark Perry, more, yet more, Will Wilkinson (PDF), Reihan Salam, Political Calculations]
- Unions rally some protesters to intimidate businesspeople at their homes; nothing new about that except the label [CNN, Business Insider, earlier]
Tagged as:
colleges and universities,
mortgages,
NYC,
Wall Street
- Not a parody: economics professor sets off debate on “ugly rights” with suggestion of making unattractiveness of appearance a protected discrimination-law category [Daniel Hamermesh/NYT, PoL, Eric Crampton, Jon Hyman] Apparently Niall Ferguson needn’t worry [Telegraph]
- Feds sue banks and more than 130 executives, demanding billions over their role in the mortgage crisis; new “tobacco/asbestos” predicted [Biz Insider, more, yet more] Takes some cheek to cast Fannie and Freddie as victims [John Berlau, CEI]
- Also on mortgages: Rahm Emanuel’s unsound new “lender must cut the grass” ordinance [Funnell] California AG sues lawyers, telemarketers over class action loan modification scheme; lawyer fires back with civil rights suit [AP, ABA Journal] New York chief judge wants state to fund more lawyers to resist enforcement of mortgages [PoL]
- Related to last, on Civil Gideon’s “‘impossible dream’ of giving every civil litigant a lawyer” [Benjamin Barton & Stephanos Bibos, SSRN via Instapundit]
- Fallen tree damage from all these storms? Think twice before taking your neighbor to court [Ilya Somin]
- Stories you read here first: wider coverage for EEOC suit against trucking company for not letting alcoholic drive [Fox, earlier]
- Illinois advocates plan push for punitive civil suits against johns, strip club owners, sex-ad websites [NYT]
Tagged as:
banks,
civil gideon,
discrimination law,
mortgages,
strippers and exotic dancers,
trees
The St. Petersburg Times explores the ethical issues raised by the practice of a Florida lawyer who “flies his six-seat Piper Malibu around Florida championing the cause of the little guy. His target: the big, bad banks.” The plan: charging upfront fees of up to $5,000, plus a contingency, for the privilege of enrolling in “mass joinder” suits demanding foreclosure relief.
Tagged as:
ethics,
Florida,
mortgages
- Per New Jersey court, overly sedentary home office job can result in valid worker’s comp claim [Courier-Post, NJLRA]
- Trial bar’s AAJ denies it played “direct” role in backing “Hot Coffee” [WaPo, some background]
- “Cop repeatedly harasses waitresses, never disciplined. Feds defend their civil rights by . . . suing the restaurant.” [Palm Beach Post via Radley Balko]
- On “unauthorized practice of law” as protective moat around profession’s interests, Britain does things differently [Gillian Hadfield via Andrew Sullivan; related, Larry Ribstein] Forthcoming book by Robert Crandall et al urges lawyer deregulation [Brookings]
- “The Treaty Clause Doesn’t Give Congress Unlimited Power” [Ilya Shapiro, Cato on Golan v. Holder case headed to Supreme Court]
- The small bank regulatory shakedown blues [Kevin Funnell] Why is the Department of Justice including gag orders as part of its enforcement decrees against banks on race and lending? [Investors Business Daily via PoL] “Emigrant fights back against mortgage-discrimination suits” [Fisher, Forbes] Dodd-Frank squeezing out community banks [Funnell]
- “North Carolina to Seize Speeding Cars That Fail to Pull Over” [The Newspaper] “With what, a tractor beam?” [James Taranto]
Tagged as:
AAJ,
banks,
constitutional law,
harassment law,
hot coffee,
international law,
mortgages,
New Jersey,
North Carolina,
traffic laws,
workers' compensation
