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The New York Times criticizes President Obama for not nominating Elizabeth Warren as director of the new Consumer Financial Protection Bureau

The New York Times published an editorial criticizing President Barack Obama for passing over Elizabeth Warren as director of the newly created Consumer Financial Protection Bureau. “Consumers vs. Banks,” The New York Times, Sunday, July 24, 2011.

Elizabeth Warren is a Harvard law professor and the main person behind the creation of the new Consumer Financial Protection Bureau (C.F.P.B.). Congress created this bureau when it approved the Dodd-Frank law to overhaul financial regulations after the credit crisis. However, Ms. Warren was not nominated because she is seen very unfavorably by Republicans in Congress for being very outspoken against the financial industry. President Obama nominated instead Richard Cordray, a former Attorney General of Ohio
who has worked closely with Ms. Warren to build up the agency.

The editorial criticizes this decision, noting that nominating Ms. Warren was a fight worth fighting for: “In deciding not to fight for Ms. Warren, the president has forfeited the opportunity to stand up to the banks and to highlight their relentless efforts to undermine reform.”

The newspaper even discusses the possibility that President Obama does not want to risk campaign contributions from banks: “It is hard not to think that Mr. Obama was worried that choosing Mr. Warren would have cost him and Democratic senators campaign contributions from the banks.”

The editorial finds Mr. Cordray qualified to become director, but expresses concerns about his nomination. Republicans want the agency to be run by a board of directors instead of one person. And the newspaper notes that it is uncertain how strongly the President will defend this nomination given what happened to Ms. Warren.

We at the law offices of Jayson Lutzky, P.C. are following closely recent events related to the protection of consumers. If you are struggling with debt, and you are in need of legal advice, please feel free to call us at 1-800-660-5299 or visit us at www.bankruptcynyc.com for a free initial consultation.

Massachusetts Port Authority dismissed from 9/11 lawsuit

In the last lawsuit related to the events of September 11, 2011, a federal judge dismissed the claim against the Massachusetts Port Authority, the Associated Press reports. “NY judge releases Mass. Agency from 9/11 lawsuit,” Associated Press, Wednesday, July 27, 2011. Mark Bavis, 31, died when he was aboard United Airlines Flight 175, the second…Continue Reading

The housing market in the Miami area is showing signs of improvement

The very depressed housing market in the Miami area is showing signs of improvement, The New York Times reports. “Affluent Buyers Reviving Market for Miami Homes,” The New York Times, Tuesday, July 26, 2011. The housing market in South Florida has been in real bad shape in recent years. In Miami-Dade County, one out of…Continue Reading

The Consumer Financial Protection Bureau is overseeing the terms of mortgages

The recently created Consumer Financial Protection Bureau is starting to oversee the terms of mortgages and looking for ways to make them better for borrowers, The New York Times reports. “Sorting Through Lending Costs,” The New York Times, Sunday, July 24, 2011. The Consumer Financial Protection Bureau (C.F.P.B.) is legally required by July 2012 to work…Continue Reading

How people are reacting to the foreclosure crisis in Spain

  In a country considered by many to have the harshest foreclosure laws in Europe, protesters in Spain are blocking evictions, The New York Times reports. “Foreclosure Protesters in Spain’s Cities Now Go Door to Door,” The New York Times, Saturday, July 16, 2011. In Spain the borrower is in absolute deep trouble if he or…Continue Reading

How Bank of America is dealing with Countrywide Home Loans’ settlement

  Bank of America faced difficult challenges after acquiring in 2008 Countrywide Home Loans because this acquired bank was in trouble with the Federal Trade Commission for overcharging borrowers, The New York Times reports. “Countrywide to Distribute Settlement to Its Clients,” The New York Times, Thursday, July 21, 2011. According to the Federal Trade Comission…Continue Reading

The $108 million Countrywide settlement will be distributed

  Countrywide Home Loans, who has agreed to pay $108 million in a settlement for allegedly charging excessive fees, will finally get to distribute the money to affected borrowers, The New York Times reports. “Countrywide to Distribute Settlement to Its Clients,” The New York Times, Thursday, July 21, 2011. The Federal Trade Commission (F.T.C.) charged…Continue Reading

Appaloosa Management sold off a good part of its holdings in Bank of America

Appaloosa Management, one of Bank of America’s most outspoken supporters, has apparently sold a significant amount of its stake in Bank of America, the New York Times reports. “Bank of America Shares Fall to Lowest Point in 2 Years,” The New York Times, Tuesday, August 9, 2011. Appaloosa Management is the big hedge fund run…Continue Reading

More people are getting adjustable-rate mortgages

  More people are becoming interested in adjustable-rate mortgages, The New York Times reports. “In Mortgages, ARM Is Back,” The New York Times, Saturday June 25, 2011. An adjustable-rate mortgage (ARM) is a loan in which the interest rate is fixed for a fixed period of time and adjusts annually after that. And according to…Continue Reading

Bank of America’s stock has been downgraded to underperform from outperform

  Mike Mayo, a well-regarded banking analyst, downgraded Bank’s of America’s stock to underperform from outperform, the New York Times reports. “Bank of America Shares Fall to Lowest Point in 2 Years,” The New York Times, Tuesday, August 9, 2011. Bank of America is facing a lot of setbacks recently. Shares in Bank of America…Continue Reading

Fourteen people, including four lawyers, are charged in mortgage fraud

  Fourteen people, including four lawyers, were indicted for allegedly mortgage fraud, the New York Law Journal reports, “Four Lawyers Charged in Mortgage Fraud,” New York Law Journal, Friday, August 5, 2011. All fourteen are being accused of conspiracy to commit bank and wire fraud. According to the accusations, they used straw buyers and false…Continue Reading

The New York Times supports a strong an independent Consumer Financial Protection Bureau

The New York Times published an editorial calling for a strong and independent Consumer Financial Protection Bureau. “Consumers vs. Banks,” The New York Times, Sunday, July 24, 2011. Congress created the new Consumer Financial Protection Bureau (C.F.P.B.) when it approved the Dodd-Frank law to overhaul financial regulations after the credit crisis. The editorial reminds readers…Continue Reading

Advising against illegal practices involving the collection of decedent’s debts

  If a debt collector is going to communicate with the debtor’s spouse, parent (in case of a minor), guardian, executor, administrator, or someone with the authority to pay the decedent’s debts, the Fair Debt Collection Practices Act (FDCPA), as well as related case law, prohibits the creditor from several practices, the New York Law…Continue Reading

How Countrywide Home Loans incurred in abusive practices against borrowers

According to the Federal Trade Comission, Countrywide Home Loans overcharged borrowers for default-related services, gave borrowers incorrect information about how much they owed and on their mortgages, or added fees and escrow charges without notice, The New York Times reports. “Country to Distribute Settlement to Its Clients,” The New York Times, Thursday, July 21, 2011.…Continue Reading

The decision not to nominate Elizabeth Warren as director of the Consumer Financial Protection Bureau

    Many people expected Elizabeth Warren, a Harvard law professor and the main person behind the creation of the new Consumer Financial Protection Bureau, to be nominated the new director of this agency. But that did not happen, as President Barack Obama nominated Richard Cordray, former Attorney General of Ohio, to lead this bureau.…Continue Reading

Concerns about the foreclosure crisis in Spain

  In Spain, people are looking for ways to deal with a foreclosure crisis affecting this country, The New York Times reports. “Foreclosure Protesters in Spain’s Cities Now Go Door to Door,” The New York Times, Saturday, July 16, 2011. Many people consider Spain to have the harshest foreclosure laws in Europe. The borrower does…Continue Reading

AIG is suing Bank of America for $10 billion over allegedly overvalued mortgages

    American International Group Inc. (AIG) filed a lawsuit against Bank of America Corp. for more than $10 billion dollars, claiming the bank sold residential mortgage-backed securities that were overvalued, the New York Law Journal reports. “AIG Sues Bank of America For $10 Billion Over Mortgages,” New York Law Journal, Tuesday, August 9, 2011.…Continue Reading

A class action has been filed against Cooley Law School for allegedly inflating job statistics

    Students and graduates filed a class action against Thomas M. Cooley Law School alleging fraudulent inflation of post-employment graduation and salary statistics to lure prospective students, the New York Law Journal reports. “Suits Accuse New York Law School, Thomas Cooley of Job Statistics Fraud,” New York Law Journal, Thursday, August 11, 2011. According…Continue Reading

Warnings about co-signing a mortgage

  People should be very careful when they are being asked to co-sign a mortgage, advises a columnist from the New York Times. “Co-Signing on the Dotted Line,” The New York Times, Sunday, August 7, 2011. Many people fall into the trap of what it seems to be just another step to help out a…Continue Reading

A class action has been filed against New York Law School for allegedly inflating job statistics

Students and graduates filed a class action against New York Law School alleging fraudulent inflation of post-employment graduation and salary statistics to lure prospective students, the New York Law Journal reports. “Suits Accuse New York Law School, Thomas Cooley of Job Statistics Fraud,” New York Law Journal, Thursday, August 11, 2011. According to the lawsuit,…Continue Reading

Concerns about the success of efforts to protect consumers

Efforts in Washington to protect consumers are finding resistance. The most recent sign of resistance is the opposition from Republicans in Congress to the nomination of Richard Cordray as director of the newly created Consumer Financial Protection Bureau, The New York Times reports, “Former Ohio Attorney General to Head New Consumer Agency,” The New York…Continue Reading

A possible default and government downgrade will not significantly affect home loans nor credit cards

A possible government debt downgrade will not significantly affect home loans nor credit cards, The New York Times reports, “How a Debt Downgrade May affect Consumers,” The New York Times, Monday, July 26, 2011. Many are concerned that in Washington there will not be an agreement in time to avoid a possible default and debt…Continue Reading

The nomination of a new director for the Consumer Financial Protection Bureau

President Barack Obama announced that he would nominate Richard Cordray, former Attorney General of Ohio, to lead the new Consumer Financial Protection Bureau, The New York Times reports. “Former Ohio Attorney General to Head New Consumer Agency,” The New York Times, Sunday July 17, 2011. As Attorney General, Mr. Cordray aggressively investigated mortgage foreclosure practices.…Continue Reading

A new Web site to help people decide when to collect Social Security is available

There is a new Web site that helps people decide when to collect Social Security, The New York Times reports. “When to Collect Social Security? A New Calculator,” The New York Times, Tuesday, July 26, 2011. For two years retired economics professor Russell Settle and his partner Jeffrey Miller worked on a new program to…Continue Reading

The pros and cons of reverse mortgages

Despite the recent problems with reverse mortgages, they are still seen as an option, The New York Times reports, “Reverse Mortgages Are Here to Stay,” The New York Times, Saturday, June 25, 2011. In a reverse mortgage, the lender pays the homeowner instead of the other way around. Then the lender gets the money back…Continue Reading

Recent Statement of Policy clarifies communications involving collection of decedents’ debts

  In many cases, in a debtor-creditor relationship the financial institution may contact third parties such as the spouse, parent of a minor debtor, guardian, executor, administrator, or someone with the authority to pay the decedent’s debts. However, there is a fine line between what the creditor is or is not allowed to do when…Continue Reading

Bronx bankruptcy lawyer explains the Consumer Financial Protection Bureau

It is useful to understand in detail what is it what the recently created Consumer Financial Protection Bureau does and what it means for consumers. “Communications Involving Collection of Decedents’ Debts,” New York Law Journal, Thursday, August 11, 2011. On July 21, 2011 the Consumer Financial Protection Bureau opened after the signing of the Dodd-Frank…Continue Reading

The involvement of lawyers in collection efforts from creditors

Creditors usually get involved in many abusive practices to collect debt from consumers. Many collectors even get to the point of misleading debtors into believing that they may be facing legal action. That is why there are laws and cases that regulate the involvement of lawyers in collection efforts from creditors, the New York Law…Continue Reading

Bronx foreclosure defense law firm informs that Wells Fargo has agreed to pay $85 million over mortgages

Wells Fargo & Company, under fire for allegedly falsyfying loan documents and approving subprime mortgages with higher interest rates, agreed to pay a fine of $85 million imposed by the Federal Reserve, The New York Times reports. “Wells Fargo Agrees to Pay 85 Million Over Loans,” Thursday, July 21, 2011. According to the Federal Reserve,…Continue Reading

Bronx bankruptcy law firm concerned about how investors and consumers will react to a possible government debt downgrade

Financial advisers are concerned that the talk in Washington of a federal budget crisis and possible default will make people overreact to these current problems. But at the same time, they warn investors and consumers to act very carefully. The New York Times reports. “How a Debt Downgrade May affect Consumers,” The New York Times,…Continue Reading

Bronx bankruptcy law firm advises people with stocks and bonds worried about a possible government debt downgrade

People who have stocks and bond investments, especially retirees and pre-retirees, are getting anxious about talks in Washington of a federal budget crisis and possible default. Financial advisors are recommending a cautious approach to deal with stocks and bond investments, The New York Times reports. “How a Debt Downgrade May affect Consumers,” The New York…Continue Reading

Bronx bankruptcy law firm informs that a possible default and government downgrade will not significantly affect money market funds

A possible government debt downgrade will not significantly affect the money market funds, The New York Times reports, “How a Debt Downgrade May affect Consumers,” The New York Times, Monday, July 26, 2011. Many are concerned that in Washington there will not be an agreement in time to avoid a possible default and debt downgrade.…Continue Reading

Bronx foreclosure defense law firm shares news about a bank fraud case: former chairman of mortgage firm sentenced to 30 years

Lee B. Farkas, former chairman of mortgage firm Taylor, Bean & Whitaker, is being sentenced to 30 years in prison for bank fraud, The New York Times reports. “Former Chairman of Mortgage Firm Sentenced to 30 years in Bank Fraud,” The New York Times, Friday, July 1, 2011. Mr. Farkas was accused in federal court…Continue Reading

Bronx bankruptcy lawyers are concerned about the job market for law school graduates

We all know that the job market is less than sunny for law school graduates. However, it is not clear what exactly is the job market for these students and future professionals, The New York Times reports. “Law School Economics: Ka-Ching!,” The New York Times, Sunday, July 17, 2011. Universities such as New York University,…Continue Reading

Bronx bankruptcy law firm shares news about a hacker attack in response to the arrest of members of an antipoverty group

A hacker group has been attacking websites for the City of Orlando in retaliation for the arrest of members of an antipoverty group, The New York Times reports. “Citing Homeless Law, Hackers Turn Sights on Orlando,” The New York Times, Friday, July 1, 2011. The hacker group is Anonymous. In the past they claimed responsibility…Continue Reading

Bronx bankruptcy law firm concerned that more law school graduates have a lot of student debt

Despite so many tough challenges in the economy, law schools have remained impressively profitable, The New York Times, reports. “Law School Economics: Ka-Ching!,” The New York Times, Sunday, July 17, 2011. The situation with law schools is mind boggling. The current economy is making fewer jobs available to law graduates. However, law school enrollment is…Continue Reading

Bronx bankruptcy law firm shares news about foreclosure case: the president and CEO of HSBC did not appear at sanction hearing

The president and CEO of HSBC Bank USA did not attend the sanction hearing regarding a foreclosure case, the New York Law Journal reports. “Judge Weighs Sanction Over Faulty Bank Documents,” New York Law Journal, Monday, July 18, 2011, reporting on HSBC v. Taher, 9320-2009. Brooklyn Supreme Court Justice Arthur M. Schack judge had ordered…Continue Reading

Bronx bankruptcy law firm shares news that billions in fines are not being collected

Many corporations and business people owe more than $65 billion in fines, and only a very small percentage is being paid, The New York Times reports. “Debt Collections Elude Uncle Sam,” The New York Times, Monday, July 4, 2011. For instance, in 2009 a court ruled that National Century Financial Enterprises, a health care finance…Continue Reading

SALVATION ARMY SUES BANK OF NEW YORK MELLON FOR MISMANAGING ITS ASSETS

The Salvation Army sued the Bank of New York Mellon for $22 million accusing that this institution has mismanaged the charity’s assets, the New York Times reports. “Salvation Army Accuses Bank of Mismanaging its Assets,” The New York Times, Saturday, April 2, 2011. According to the lawsuit filed by the southern division of the Salvation…Continue Reading

NEW YORK LAW FIRM NOTES NEW RULE THAT PROTECTS FEDERAL BENEFITS OF DEBTORS FROM TEMPORARY GARNISHMENT

Good news for troubled debtors with federal benefits. Under a new rule effective May 1, 2011, financial institutions must follow certain procedures if they wish a court to order the garnishment of bank accounts of debtors with deposited federal benefits, the New York Law Journal reports. “New Rule on Garnishment, Venue Provisions, Statute of Limitations,”…Continue Reading

Bronx lawyer warns consumers to be careful with unauthorized phone charges

  Cramming, or adding unauthorized charges on consumers’ phone bill, is an illegal practice that have existed for years, and yet it is more common than what people know, as explained in an article by the AARP. “Well, I’ll Be Crammed,” AARP, May/June 2010. After the mandated breakup of Ma Bell in 1984, third-party billing…Continue Reading

NEW YORK BANKRUPTCY LAW FIRM HAPPY THAT THE FEDERAL GOVERNMENT SUES DEUTSCHE BANK FOR MORTGAGE FRAUD

The U.S. government is suing Deutsche Bank for allegedly committing fraud for illegally benefiting from a program that insured mortgages, the New York Law Journal reports, “U.S. Charges Mortgage Fraud by Bank,” New York Law Journal, Wednesday, May 4, 2011. Southern District U.S. Attorney Preet Bharara filed this civil complaint against Deutsche Bank and MortgageIT…Continue Reading

NEW YORK LAW FIRM REPORTS TIPS ON HOW TO GO PAPERLESS

One way to take better care of your finances is to keep all your documents electronically filed. Going paperless have several advantages, but it is a decision that should be done carefully, as explained in an article by Money magazine. “Going Paperless the Right Way,” Money, May 2011. Saving your financial documents electronically is better…Continue Reading

Bronx bankruptcy attorney shares news about a plan to protect homeowners from foreclousre

The New York Times reports that state Attorneys General are proposing a very helpful plan that would protect struggling homeowners in a trial modification. “A Plan to Make it Harder for Banks to Foreclose on Homeowners,” The New York Times, Saturday, March 5, 2011. According to the plan, if the borrower has made three payments…Continue Reading

Bronx bankruptcy attorney shares news about a plan to protect homeowner from forclosure

The New York Times reports that state Attorneys General are proposing a very helpful plan that would protect struggling homeowners in a trial modification. “A Plan to Make it Harder for Banks to Foreclose on Homeowners”, The New York Times, Saturday, March 5, 2011. According to the plan, if the borrower has made three payments…Continue Reading

New York City bankruptcy lawyer reposts what is MERS and how it can hurt you as a homeowner

  MERS stands for Mortgage Electronic Registration Systems and is a system owned by major banks and Fannie Mae and Freddie Mac that serves as an agent for institutions that own mortgages. A bank may list MERS as the mortgage holder in order to avoid filing new paperwork or paying fees each time a mortgage…Continue Reading

Bronx bankruptcy law firm blogs on a deal to improve things for struggling homeowners coming soon

The New York Times reports that Attorneys General of the 50 states, federal regulators, and the banks may be near an agreement to overhaul the way foreclosures as well as loan modifications are handled for millions of Americans. “Foreclose Deal Near, State Officials Say”, The New York Times, Tuesday, March 8, 2011. So far it…Continue Reading

BRONX BANKRUPTCY LAW FIRM NOTES THAT DEBT COLLECTORS MAY BE ACTING ILLEGALLY BY SUING DEBTORS IN THE WRONG COURT

    Debt collectors have been breaking the law by picking courts they are not supposed to use for their lawsuits against their debtors, the New York Law Journal reports. “New Rule on Garnishment, Venue Provisions, Statute of Limitations,” the New York Law Journal, Thursday, April 14, 2011. Under the Fair Debt Collection Practices Act…Continue Reading

New York bankruptcy law firm views about the consumer financial protection bureau

  What is the Consumer Financial Protection Bureau? The Consumer Financial Protection Bureau is an entity that has the authority to protect consumers by issuing and enforcing rules related to their purchasing decisions. This bureau, a new division of the Federal Reserve System, was recently created by the Dodd-Frank Wall Street Reform and Consumer Protection…Continue Reading

New York bankruptcy lawyer happy that same-sex couples will be allowed to file joint petitions for bankruptcy

  In one bankruptcy case, the U.S Trustee motion asked the judge to dismiss a joint petition by a same-sex couple because their filing was against the Federal Defense of Marriage Act (DOMA). However, the bankruptcy judge denied this motion. “Trustee’s Motion to Dismiss Petition by Same-Sex Couple Rejected,” New York Law Journal, Friday, May…Continue Reading

Bronx bankruptcy firm wishes to advice clients that a foreclosure lawyer under investigation shuts down his office

      David J. Stern, a Florida lawyer who made millions of dollars handling thousands of foreclosures and who has been under investigation by the Florida Attorney General, will be closing his foreclosure practice at the end of the month. The announcement closing the foreclosure practice comes from a filing with the Securities and…Continue Reading

New York lawyer shares news on mortgage related lawsuits: JP Morgan overcharging homeowners in the military, settlement is approved

A settlement has been approved in a federal case against JP Morgan Chase & Company, sued for overcharging homeowners in the military, The New York Times reports, “JPMorgan in Talks to Settle S.E.C. Inquiry Into Securities,” The New York Times, Saturday, May 7, 2011. Since 1942, people in the military are protected under the Servicemembers…Continue Reading

Federal government sues Deutsche Bank for mortgage fraud

          The U.S. government is suing Deutsche Bank for allegedly committing fraud for illegally benefiting from a program that insured mortgages, the New York Law Journal reports, “U.S. Charges Mortgage Fraud by Bank,” New York Law Journal, Wednesday, May 4, 2011. Southern District U.S. Attorney Preet Bharara filed this civil complaint…Continue Reading

New York lawyer shares news on mortgage regulated law suits: JP Morgan close to settlement with the Securities and Exchange Commission

JP Morgan Chase & Company, under investigation for its handling of mortgage-linked securities by the Securities and Exchange Commission (SEC), is negotiating a settlement with this agency, the New York Times reports, “JPMorgan in Talks to Settle S.E.C. Inquiry Into Securities,” The New York Times, Saturday, May 7, 2011. JP Morgan made public this information…Continue Reading