H/T GARY DUBIN LAW!

IN THE SUPREME COURT OF THE STATE OF HAWAII
—oOo—

_________________
U.S. BANK N.A. IN ITS CAPACITY AS TRUSTEE FOR THE REGISTERED
HOLDERS OF MASTR ASSET BACKED SECURITIES TRUST 2005-NC1,
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2005-NC1,
Respondent/Plaintiff-Appellee,
vs.
JOSEPH KEAOULA MATTOS, CHANELLE LEOLA MENESES,
Petitioners/Defendants-Appellants,
and
CITIFINANCIAL, INC., ASSOCIATION OF APARTMENT OWNERS OF
TERRAZA/CORTEBELLA/LAS BRISAS/TIBURON,
EWA BY GENTRY COMMUNITY ASSOCIATION,
Respondents/Defendants-Appellees

SCWC-14-0001134
CERTIORARI TO THE INTERMEDIATE COURT OF APPEALS
(CAAP-14-0001134; CIVIL NO. 11-1-1539)
JUNE 6, 2017
RECKTENWALD, C.J., NAKAYAMA, McKENNA, POLLACK, AND WILSON, JJ.
OPINION OF THE COURT BY McKENNA, J.

I. Introduction
This appeal arises from a judicial decree of foreclosure
granted in favor of plaintiff “U.S. Bank N.A. in its Capacity as
Trustee for the registered holders of MASTR Asset Backed
Securities Trust 2005-NC1, Mortgage Pass-Through Certificates,
Series 2005-NC1” (“U.S. Bank”) against defendants Joseph Keaoula
Mattos (“Mattos”) and Chanelle Leola Meneses (“Meneses”)
(collectively, “Defendants”). At issue is whether the Circuit
Court of the First Circuit 1 (“circuit court”) properly granted
U.S. Bank’s “Motion for Summary Judgment and Decree of
Foreclosure Against All Defendants on Complaint Filed July 21,
2011” (“motion” or “motion for summary judgment”). In its
published opinion, the Intermediate Court of Appeals (“ICA”)
affirmed the circuit court. U.S. Bank N.A. v. Mattos, 137
Hawaii 209, 367 P.3d 703 (App. 2016).2

028688112 (1) by DinSFLA on Scribd

Attorney General Frosh Announces $95 Million Settlement with Deutsche Bank Settlement Resolves Claims of Misleading Investors that Purchased Residential Mortgage Backed Securities; Provides $80 Million in Relief to Maryland Consumers

BALTIMORE, MD (June 1, 2017) – Maryland Attorney General Brian E. Frosh announced today that the Securities Division of the Office of Attorney General has reached a $95 million settlement with Deutsche Bank, resolving financial crisis-era civil claims that Deutsche Bank misled investors in its securitization and sale of residential mortgage-backed securities (RMBS) and related collateralized debt obligations (CDOs). As part of the settlement, Deutsche Bank will be required to provide $80 million in relief to Maryland consumers. The $95 million settlement is the largest reached by a state for Deutsche Bank’s financial-crisis era RMBSrelated conduct.

“Deutsche Bank has acknowledged that it deceived investors about the quality of the residential mortgages backing their complex securities,” said Attorney General Frosh. “Its conduct, and that of other investment banks, fueled the financial crisis and aided unfair and predatory lending practices. This settlement recoups losses that Maryland suffered through investments in Deutsche Bank securities and also ensures that Maryland consumers will receive relief from the Department of Justice settlement entered into during the Obama Administration.”

Deutsche Bank did not lend directly to consumers, but rather packaged and sold mortgages into complex securities known as RMBS and CDOs. In this process, Deutsche Bank had an obligation to provide complete and accurate information to investors. Despite this obligation, Deutsche Bank acknowledges that it misled investors. By misrepresenting key characteristics of the loans that it securitized, Deutsche Bank concealed from investors and rating agencies the true risk of losses of its RMBS. In doing so, Deutsche Bank deprived investors of their right to make an informed decision about whether they should invest in those RMBS.

The settlement announced today will provide $15 million in restitution for state and local government investments, and earmarks $80 million for consumer relief from the Department of Justice’s settlement. Consumer relief will be provided in the forms of mortgage forgiveness and forbearance, low to moderate income lending, neighborhood reinvestment and stabilization, and affordable housing financing. In addition to the monetary settlement, Deutsche Bank also reaffirmed the detailed statement of facts agreed to with the United States Department of Justice.

Maryland’s investigation began as a participant in the Department of Justice’s RMBS Working Group.

In making today’s announcement, Attorney General Frosh thanked Assistant Attorney General Max F. Brauer for his work on the case.

The entire settlement package can be found at: http://www.marylandattorneygeneral.gov/news%20documents/Deutsche_Bank_CO.pdf

EVERY SUNDAY
3:00 PM HAWAII
6:00 PM PACIFIC
9:00 PM EASTERN
ON KHVH-AM
(830 ON THE DIAL)
AND ON
iHEART RADIO

SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF SACRAMENTO

OCWEN LOAN SERVICING, LLC,
Plaintiff,

v.

FIDELITY INFORMATION SERVICES,
LLC,
Defendant

COMPLAINT FOR:
(1) FRAUD AND DECEIT;
(2) NEGLIGENT
MISREPRESENTATION;
(3) VIOLATION OF CALIFORNIA
BUSINESS AND PROFESSIONS
CODE SECTION 17200, ET SEQ.;
(4) BREACH OF CONTRACT;
(5) UNJUST ENRICHMENT; and
(6) DECLARATORY RELIEF
DEMAND FOR JURY TRIAL

NATURE OF THE CASE

1. FIS was retained to conduct a two-year review of Ocwen’s loan servicing practices
in June 2015, at a budgeted-cost of $44.8 million. Throughout the engagement, FIS made
fraudulent or negligent misrepresentations in its monthly invoices to Ocwen about the services
FIS claims to have performed and the expenses FIS claims to have incurred. Whenever Ocwen
questioned the legitimacy of FIS’s invoices, or confronted FIS about their increasing enormity,
FIS reiterated its misrepresentations that the hours and expenses reflected on the invoices were
legitimately worked and incurred. By continuing to represent to Ocwen that its invoices were
legitimate, FIS induced Ocwen to continue to pay millions of dollars for work that was not
performed. FIS did so because it was incentivized to, and because it perceived that it had free
reign to lie to Ocwen without consequence.

2. Ocwen is a mortgage loan servicer subject to regulation in California by the
California Department of Business Oversight (“California DBO”). After raising concerns about
certain of Ocwen’s servicing practices for California loans, the California DBO ordered Ocwen to
undergo a 24-month independent servicing review. The California DBO selected FIS to conduct
the review, with Ocwen bearing the cost, subject to a letter of engagement with FIS (the “LOE”).

3. To secure the engagement, FIS had proposed a budget of $44.8 million to conduct
the 24-month review, which was to include a loan-by-loan review of 50,000 loan files for
California loans serviced by Ocwen.

[…]

Vanity Fair-

Once upon a time, in 1970, long before America’s banking system was dominated by six giant institutions—JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley—Dennis Hambek started working as a messenger at the National Bank of Washington in Ellensburg, Washington. Over the years, as his career advanced from messenger to loan officer to branch manager, he had a front-row seat at the transformation of America’s banking system. That first year, the National Bank of Washington was swallowed up by Pacific National Bank of Seattle, which in 1981 was bought by Los Angeles-based First Interstate Bancorp, which in 1996 was bought by San Francisco-based Wells Fargo, which in 1999—as the consolidation frenzy was reaching its peak—merged with Norwest, a Minneapolis-based bank, in a $34 billion deal.

Wells Fargo, which was founded in 1852 as a stagecoach express to carry valuable goods to and from the gold mines in the West, had a storied brand, so the new, combined company kept that name. But if Norwest’s name didn’t survive, its corporate culture did. Spearheaded by the company’s then C.E.O., Dick Kovacevich, it involved a novel way of thinking about banking.

[VANITY FAIR]