VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more
Issue link: https://www.ifoldsflip.com/i/41290
IN BUSINESS Hey Culligan Man! With 1000+ dealers in over 90 countries, Culligan, the world's most recognized name in water treatment, is now offering for sale their flagship dealership in Las Vegas. If you are a serious investor, and have the financial resources and business experience to invest in this exciting, multi-million dollar business opportunity, please contact: in the Culligan Franchise Department at Tom Vitacco 847-430-1357, or email him at tvitacco@culligan.com. By Steve Green senior staff writer Nevada Attorney General Catherine Cortez Masto hit Bank of America with a new charge last week: That it has been foreclosing on homes it had no authority to foreclose on. The allegations were made in an amended complaint in a lawsuit initially filed in December, charging the banking giant had harmed struggling Nevada consumers by failing to help them modify their mortgages and had deceived some by leading them to believe their loans would be modified— but then foreclosed on them anyway. Bank of America has denied all those allegations. The amended complaint, filed in US District Court for Nevada, charges that even after the bank was sued, it continued to harm consumers. "Bank of America's misconduct We'll deliver RESULTS when it comes to your money. We're a financially strong community bank who cares about you and your financial future. We were organized by local businessmen to provide a good banking alternative to the communities we serve and our decisions are made by our Las Vegas based board of directors. We offer a full suite of banking products and services in a highly personalized banking environment. • Working capital loans and lines of credit • Equipment financing • Building purchase and office build-out loans • Build-to-suit project loans • Small Business Administration (SBA) 504 & 7(a) loans • Cash management • Online banking and bill payment • Lockbox • Remote check deposit • Worldwide ATM access All deposits FDIC insured to the maximum limits in misrepresenting its mortgage modification program continues through the present and has been confirmed in interviews with consumers, former employees and other third parties and through review of relevant documents," the complaint charged. In the filing, Masto sought to revoke a 2009 settlement she reached with Bank of America over loan abuses involving its Countrywide Financial Corp. unit, charging the bank has breached the settlement terms. For instance, the complaint says the bank increased Countrywide consumers' interest rates and monthly payments, even though the settlement allows only modifications that decrease rates. The state also claims the bank BANKING AND FINANCE REGULATORS DEMAND IMPROVEMENTS AT BANK TIED TO POKER, FRAUD CASES By Steve Green senior staff writer A small Utah bank tied to the Internet poker crackdown and to fraud suspect Jeremy Johnson has been hit with another Federal Deposit Insurance Corp. enforcement order. The FDIC made public the order 8912 Spanish Ridge Ave., Suite 100 | Las Vegas, Nevada 89148 702.471.BANK (2265) | www.meadowsbank.com 16 against SunFirst Bank of St. George, UT, which through the first half of this year had lost $2.7 million on interest income of $3.8 million. The bank, with $212.7 million in loans and other assets, had $179.5 million in deposits at the end of the second quarter and equity capital of about $17 million. The bank last year agreed to the FDIC's demands that it stop processing funds for one of Johnson's companies also named in his civil fraud case in Las Vegas. The company, Elite Debit, had processed credit and debit card charges for another Johnson firm named in the fraud lawsuit, I Works. SEE SUNFIRST PAGE 17 required Countrywide borrowers to provide extensive documentation— including pay stubs, tax returns and sworn affidavits—to qualify for modifications, when a streamlined process was supposed to be in place. Bank of America on denied allegations that it had violated the settlement, called a consent decree. "Bank of America leads all servicers with more than 148,000 permanent HAMP modifications completed since the program began for a total of more than 895,000 modifications through all available programs since January 2008," the bank statement said. HAMP stands for Home Affordable Modification Program. If the settlement is terminated, the state would continue with its initial Countrywide lawsuit charging predatory lending and fraud in originating, marketing and servicing mortgage loans. Countrywide, for instance, was accused of failing to disclose that low teaser rates in loans would, after a short time, often more than double, leaving homeowners unable to make the new higher payment. The new complaint asserts broad allegations that the bank's loan modification process has been understaffed, riddled with technical problems and not oriented to consumers. Employees, for instance, were directed to spend no more than seven to ten minutes on average with each customer, not nearly enough time to deal with questions or offer assistance, the state alleges. BANKING AND FINANCE NEVADA AG QUESTIONS BANK OF AMERICA FORECLOSURES, SEEKS TO SCUTTLE SETTLEMENT