Wednesday, July 27, 2011

FDIC sues former IndyMac CEO

by KERRI PANCHUK

Monday, July 11th, 2011, 9:26 am

Excerpt:

The Federal Deposit Insurance Corp. filed a negligence lawsuit against former IndyMac CEO Michael Perry last week, accusing the executive of producing risky home mortgages that eventually soured, causing more than $600 million in losses.

In the complaint, the federal regulator, which took over IndyMac after the bank's failure in 2008, accuses Perry of putting the bank at risk by failing to end the "production of a pool of more than $10 billion in risky, residential loans intended for sale into a secondary market." The FDIC claims Perry knew production of the loans was occurring at a time when the secondary market was becoming unstable and illiquid due to ongoing concerns over credit quality.

The FDIC claims Perry knew his actions were risky, quoting him in the lawsuit saying, "Clearly, our risk offices are not to blame for the situation INIB finds itself in. This time the losses are 1000/0 operating management's fault (from me on down), there is no substitute for experience, good common sense and business judgment."

The suit cites another quote from Perry where he allegedly states, "Look, we've had lousy performance and the buck stops with the CEO … I'm a big believer in being held to account."

Benjamin Razi, one of Perry attorneys wrote in a statement, "the FDIC’s claim is that Mr. Perry should have foreseen the financial crisis — even though nobody else did. Not the FDIC. And not any of the other regulators responsible for supervising IndyMac. Of course, the complaint neglects to mention that the FDIC’s own Chairman, Sheila Bair, acknowledged that 'few saw all the risks' in the conditions leading up to the crisis."


Source

Sunday, July 17, 2011

FDIC sues former IndyMac CEO

by KERRI PANCHUK

Monday, July 11th, 2011, 9:26 am

The Federal Deposit Insurance Corp. filed a negligence lawsuit against former IndyMac CEO Michael Perry last week, accusing the executive of producing risky home mortgages that eventually soured, causing more than $600 million in losses.

In the complaint, the federal regulator, which took over IndyMac after the bank's failure in 2008, accuses Perry of putting the bank at risk by failing to end the "production of a pool of more than $10 billion in risky, residential loans intended for sale into a secondary market." The FDIC claims Perry knew production of the loans was occurring at a time when the secondary market was becoming unstable and illiquid due to ongoing concerns over credit quality.

The FDIC claims Perry knew his actions were risky, quoting him in the lawsuit saying, "Clearly, our risk offices are not to blame for the situation INIB finds itself in. This time the losses are 1000/0 operating management's fault (from me on down), there is no substitute for experience, good common sense and business judgment."

The suit cites another quote from Perry where he allegedly states, "Look, we've had lousy performance and the buck stops with the CEO … I'm a big believer in being held to account."

Benjamin Razi, one of Perry attorneys wrote in a statement, "the FDIC’s claim is that Mr. Perry should have foreseen the financial crisis — even though nobody else did. Not the FDIC. And not any of the other regulators responsible for supervising IndyMac. Of course, the complaint neglects to mention that the FDIC’s own Chairman, Sheila Bair, acknowledged that 'few saw all the risks' in the conditions leading up to the crisis."

Source

Sunday, July 10, 2011

ACOW Board of Directors Meeting – Preliminary Agenda

NOTICE:
ACOW At the Summit XIII is August 18 & 19.

Registration is now open! For more information go to: http://acow-wa.org/201108_summit.html

Board of Directors Meeting – Preliminary Agenda

Thursday, July 7, 2011, 6:00 p.m. – Please Plan to Begin Promptly

Lamb Hanson Lamb Office – Seattle
4025 Delridge Way SW, Suite 530
Seattle, WA 98106 (206.903.1500)

For the Lamb Hanson Lamb Office, the building elevators close at 5:30pm; for the Lamb Hanson Lamb offices at 5:30pm. If attending and plan to arrive after this time, please call ahead of time to arrange for access. (For directions, go to: http://acow-wa.org/MtgDates.html) To attend the meeting via phone conference: -dial 1.218.339.4300 -when prompted dial access code: 872158#

Call to Order

1. Establish Quorum: Justin Slack, President

2. Approval of Agenda: Justin Slack, President

3. Approval of Prior Meeting Minutes: Justin Slack, President
* March 2011
* June 2011

Officer Reports

1. President’s Report: Justin Slack, President

2. Treasurer’s Report: Joe Creech, Treasurer

a. Monthly and Current YTD Status

Committee Reports

Summit Progress: Dave Towne


Old Business:

1. Legislative/ Regulatory Issues:

a. Trainee Experience Credit

b. License level status (should these be tabled until August Mtg given that
REAC meets in August???)


2. Administrative Topics:

a. Viable funding source for remainder of 2011 & beyond
i. TK’s remaining fee

b. Member organization e-mail lists

c. E-mail/ Contact Management System

New Business:

1. Legislative/ Regulatory Issues:

2. Administrative Topics:

a. ACOW in 2012

i. Brought up by Debra Bogrand, IFA, President of South Puget Sound
Chapter of the IFA

Announcements:

1. Next ACOW Meeting Date: August 4 ???

Adjournment: Justin Slack, President

For more on ACOW, click: www.acow-wa.org

Board of Directors
Justin Slack, President
Mark Noble, Vice President
Joe Creech, Treasurer
Michael Imes, Secretary
Jodi Standaert, Director
Barry Wilson, Director
George Nervik, Director

ACOW Administration
Appraisers Coalition of Washington
6351 Seaview Avenue NW
Seattle, WA 98107-2664
p: 206.622.8425
f: 206.623.4474
info@acow-wa.org

Saturday, July 9, 2011

Your Action Needed - New Loan Disclosure Form

There is a proposed new Good Faith Estimate (GFE) from the new Consumer Finance Protection Bureau (CFPB), which will be given to mortgage loan applicants. A separate HUD-1 form will be used at closing.

This proposed GFE form does not break out the separate ‘appraiser’ and ‘appraisal management’ fees.

In the interest of full disclosure, the different fees should be disclosed to the borrower on this form.

Please take a moment and send a comment to the CFPB and ask that the appraisal fee be noted separately from the appraisal management fee.

Send your comment to: http://www.consumerfinance.gov/contact-us/

For more information: http://www.consumerfinance.gov/knowbeforeyouowe

Thanks for your assistance with this action notice.

Respectfully,

Michael Imes, IFA

Thursday, July 7, 2011

ACOW at the Summit XIII - 11 hours of CE credit

ACOW at the Summit XIII - Earn 11 hours of CE credit.

Thursday & Friday, August 18th & 19th, 2011
Summit Lodge at Snoqualmie Pass - Interstate 90
Phone: 425-434-6300 — Special Room Rates available

Thursday Schedule: [Reg. open at 8am]
8:30 — 11:30a - 3 hr CE
Valuing Corridors
Instructor: Stan Sidor, MAI
Especially for Certified General’s for assignments where determining the value of a corridor is essential

1:00 — 4:00p - 3hr CE
Medley of Appraiser Issues
Panel Presentation with Q&A:
Topics - ACOW’s ‘11 leg. activity, the WA AMC law, Appraiser Qualifications Board info, FRB Final Rules/Interagency Guidelines, and state REAC issues


Friday Schedule: [Reg. open at 8:30am]
9:00 — 12:00n - 3 Hr CE
The Art of Appraisal Adjustments
Instructor: Richard Hagar, SRA
Adjustments are a necessary evil in reports! Learn how to make adjustments based on market data—facts, not opinion!

1:30 — 3:30 - 2 hr CE
USPAP & Fannie/Freddie Forms Compliance Issues & Comment Suggestions
Instructor: Dave Towne, Cert. Res.
Learn how to insure your form reports are in compliance with USPAP. Includes
commentary you can add to your reports.

11 hrs of CE total!

More information:

ACOW
6351 Seaview Ave NW
Seattle, WA 98107
Phone: 206-622-8425
www.acow-wa.org

Tuesday, July 5, 2011

FDIC Settlement Talks With Ex-Washington Mutual Officers Fail


Kerry Killinger, former Chief Operating Officer Stephen Rotella and David Schneider, WaMu’s former home-loans president, asked a judge to dismiss the FDIC’s suit after the negotiations failed, according to Barry Ostrager, a lawyer for Rotella and Schneider.

The FDIC sued the Washington Mutual Inc. officials in March, claiming they took extreme risks with the bank unit’s home-loans portfolio, causing billions of dollars in losses. The FDIC accused the executives of disregarding the bank’s long-term safety and fixating on rewarding themselves. The men received more than $95 million in compensation from January 2005 to September 2008, the FDIC said.

“The FDIC is essentially suing my clients for making business decisions that were fully disclosed, monitored, approved and transparent to the FDIC,” Ostrager said in the e- mail. “There is no legal basis for seeking to retroactively impose financial liability upon bank executives for making business decisions of a type that were common and unobjectionable at the time.”

In its lawsuit, the FDIC “says nothing about the worldwide economic crisis that would have led to the failures of virtually all large banks but for unprecedented government intervention that was not extended to WaMu,” lawyers for Killinger wrote.

David Barr, an FDIC spokesman, said the agency declined to comment.

The case is FDIC v. Killinger, 11-00459, U.S. District Court, Western District of Washington (Seattle). http://www.blogger.com/img/blank.gif

To contact the reporter on this story: Joel Rosenblatt in San Francisco at jrosenblatt@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

Source