Monthly Archives: February 2012



Homeowner Sues Wells Fargo for $4 Million

Another lawsuit has been filed against Wells Fargo for illegally denying a loan modification under the Obama Administration’s Home Affordable Modification Program (HAMP).  The lawsuit charges Wells Fargo with making misrepresentations in connection with the homeowner’s HAMP application, and claims $4,000,000. The plaintiff, a Baltimore County consumer, turned to Wells Fargo for help when she incurred financial hardship.  From 2001 …
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Arbitration and How It Hurts Consumers

The Seventh Amendment to the United States Constitution (and also Article 23 of the Maryland Declaration of Rights) guarantees consumers the right to a jury of their peers in civil cases.  Corporations have found a way to circumvent this constitutional right by placing arbitration requirements in consumer contracts.  Without knowing it, consumers regularly waive their right to a jury trial …
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Understanding the Volcker Rule and How It Relates To Wall Street Banks’ Role in the 2007 U.S. Economic Crisis

The Volcker Rule is a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  As reported by the Center for American Progress, the Volcker Rule prohibits Wall Street investment banks (i.e., Wells Fargo, Goldman Sachs, Citi, J.P. Morgan Chase, Bank of America) from engaging in proprietary trading. What is proprietary trading?  Very simply, it is when …
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Does Consumer Financial Protection Bureau Have Teeth?

The federal Consumer Financial Protection Bureau was established as part of the Dodd-Frank Wallstreet Reform and Consumer Protection Act of 2010.  According to the bureau, part of its mission is to enforce consumer protection laws.  But, does the bureau have any real power to enforce the laws and bring justice to consumers? A recent Huffington Post article suggests that the …
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Maryland Signs On To Robo-Signing Foreclosure Settlement

In a follow-up to our previous post, Maryland, through Attorney General Douglas Gansler, officially agreed to the robo-signing foreclosure fraud settlement today with Citigroup, J.P. Morgan Chase, Bank of America, Ally Financial/GMAC, and Wells Fargo. The settlement secures an estimated $959,114,825.45 for Marylanders who were victims of the robo-signing, according to Mr. Gansler.  As explained by the Maryland judiciary at http://www.courts.state.md.us/rules/docs/166threport.pdf, …
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States’ Multi-Billion Dollar Foreclosure Settlement With Big Banks Will Not Prevent Individual Claims

Yesterday, over 40 states entered into a settlement with the five major U.S. banks over fraudulent foreclosures based on robo-signing.  The banks involved were Wells Fargo, Bank of America, JP Morgan Chase, Citigroup, and Ally Financial (formerly GMAC).  Importantly, as confirmed by Michigan’s Attorney General, Bill Schuette, in his statement yesterday, the settlement “does not preclude … individual homeowners from pursuing their own …
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The Honorable Stuart R. Berger Appointed to Maryland Court of Special Appeals

The Honorable Stuart R. Berger was appointed to the Maryland Court of Special Appeals by Governor O’Malley on December 22, 2011, and has actively served in that capacity since January 25, 2012.  This is good news for Maryland. Prior to the appointment, Judge Berger served as an Associate Judge in the Circuit Court for Baltimore City from December 21, 1998 …
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U.S. Court of Appeals for the Fourth Circuit Decides In Favor Of Consumers Under Fair Debt Collection Practices Act

In a rare move last month by the most conservative U.S. Court of Appeals, the Fourth Circuit reversed a federal district court and issued a decision in favor of consumers.  The published opinion, Warren v. Sessoms & Rogers, P.A., No. 10-2105, 2012 WL 76053 (4th Cir. Jan. 11, 2012), analyzes the materiality and knowledge requirements under the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. …
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Banks Illegally Deny HAMP Loan Modifications 90% Of The Time

Banks continue to disregard the law and deny relief to 90% of homeowners who are legally entitled to Home Affordable Modification Program (HAMP) modifications, as shown by the U.S. Treasury’s latest HAMP Reports. Specifically, page 9 of the report shows that, as of October 2011, banks who participate in HAMP collectively service loans for a total of 891,542 homeowners who …
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Foreclosure Defense Basics

With the continued economic crisis, it is important for lawyers to know how to represent a homeowner in foreclosure.  While much discussion has been devoted to deeds in lieu of foreclosure, short sales, and other ways to help a homeowner exit their home, not much discussion has been devoted to how to challenge a wrongful foreclosure.  This article covers the basics.  First, …
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