These lawsuits are made available online courtesy of the Center for Responsible Lending (“CRL”), and are all referenced in an investigative report CRL recently issued on IndyMac.

Alleged Bait & Switch Tactics (among other allegations):

Mitchell v. IndyMac Bank, U.S. District Court for the Eastern District of Virginia, 2008;
Brannan v. IndyMac Bank, U.S. District Court for the District of Colorado, 2006;
Darling v. IndyMac Bancorp, U.S. District Court for the District of Maine, 2006;
Harris v. Vinson Mortgage Services, U.S. District Court for the Eastern District of Missouri, 2008;
George v. IndyMac Bank, U.S. District Court for the Central District of California, 2008;
Thomas v. DCI Mortgage Bankers, U.S. District Court for the District of New Jersey, 2007;
Glover v. Equity Source, U.S. District Court for the District of New Jersey, 2007;
Alleged Racial Discrimination:

Mables v. IndyMac Bank, (seeks class action status) U.S. District Court for the Northern District of Illinois, 2008;

Alleged Inflated Appraisals:

Cedeno v. IndyMac, U.S. District Court for the Southern District of New York, 2006;
Alleged Falsified Paperwork:

George v. IndyMac Bank, U.S. District Court for the Central District of California, 2008;
Ware v. IndyMac Bank, U.S. District Court for the Northern District of Illinois, 2007;

Alleged Funding of Loans For Developer in an Area Known as a Hotbed for Mortgage Fraud Without Proper Due Diligence:

Gaines v. Parisi, U.S. District Court for the Middle District of Pennsylvania, 2006;
Shareholder Class Action Lawsuit citing Alleged Questionable Lending Practices:

Tripp v. IndyMac Bancorp, Inc., U.S. District Court for the Central District of California, 2007.

See this PDF document from the Center for Responsible Lending to see what went wrong with Indymac.

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Due to “Shared Loss Agreements” with FDIC, private banks are less likely to modify home loans because they stand to make profits from foreclosing. Take Indymac as an example. It used to be an independent bank till it filed for bankruptcy in 2008 and was bailed out by FDIC.  Later, IndyMac was bought and transformed into One West Bank by a private equity firm called Dune Capital Management, a group that includes billionaire George Soros and Michael Dell, who agreed to buy the failed bank for $13.9 billion. The bank’s assets at the beginning of this year (2009) totaled $23.5 billion so they made some billions immediately at the time of purchase.

Then, they struck a 20/80 loss share deal with FDIC. OneWest Bank agreed to pick up 20% of the loss whereas FDIC would pick up 80%. IndyMac would end up owning the property after foreclosure, making a sweet profit from the sale of the house. Many other banks have similar agreements with FDIC, so in effect, these banks are profiting on taxpayer dollars. People are becoming homeless on your dollars.

Loan modification programs are unregulated scams. This is the narrative: When we call the lenders for help with our mortgage, they tell us there is nothing they can do till we miss a payment. So we go ahead and miss payments and then the warning letters arrive. We file and refile income/expense reports, negotiate for a good package but keep getting rejected. The process drags on for months, costing us productive time, money, energy, sleep and deteriorating health. They keep losing files, misappropriating funds, crashing their systems, changing their numbers, and rolling out ‘new packages’ that they later reject when you apply for them. A year later, they tell us there is nothing they can do but ‘foreclose’ the house. How many stories fit into this narrative?

The system needs checks and balances, as well as transparency. Urge Congress to stop foreclosures, launch an investigation into the unfair lending and loan modification practices now and create clear transparent guidelines to help homeowners with their loans.

George Soros is known as an ultra-liberal billionaire whom many claim is the sole reason Barack Obama made it to the Presidency. Silly me I thought it was Oprah!

Michael Dell, another ultra-liberal, is the man whose name appears on my laptop. Michael Dell is the geek founder of Dell Computers and like Soros, a billionaire.

What do these two guys know about running a mortgage bank? Nothing! If you are an Indy Mac customer and you’ve called their Customer Service you know what I am talking about. Indy Mac has got to be #1 on the list of dysfunctional, disorganized businesses—anywhere!

After recovering somewhat from my shock of being scammed by Parsa Law Group, I picked up the pieces of my loan modification attempts and started back down the road of frustration with One West Bank. I sent and resent and sent again all the requested documentation.

I phoned and I phoned. I told my sad tail of woe to any One West Bank employee willing to listen. It didn’t matter. Indy Mac, One West Bank never had any intention of modifying my loan. The answer to me was NO as it is and will be for all their other customers in need of modifying their loans.

Why? Because it is in the best interest of the Indy Mac investors to say no to their customers. They have a sweet heart deal with the FDIC. Yes our government has taken care of these billionaires while Average Joe on Main Street flounders.

Information can be found all over the internet which confirms Soros and Dell purchased the failing Indy Mac Bank from the FDIC who had taken it over when Indy Mac’s reserves fell below the legal amount. Soros and Dell bought the bank for $20.7 billion. The bank’s assets at the beginning of this year (2009) totaled $23.5 billion. They made $3.5 billion immediately at the time of purchase.

The deal with the FDIC also has a loss sharing agreement with a 20/80 split. Soros and Dell take the first 20% hit of any loss and the FDIC picks up the lion’s share of the balance.

I am trying to figure how this plays out in my personal situation. If Indy Mac forecloses on my loan and I owe $603,000 does this mean Soros and Dell only get stuck with a loss of $120,600 and the FDIC takes care of the rest? Indy Mac will own the house which as of today is still valued around $750,000. Does Indy Mac then sale and make a profit? Yes, that is right.

George Soros is a raging do-gooder liberal who at one time likened President Bush to Hitler. That is quite a comparison and all I can say to that is it’s not Bush or Hitler forcing my family out on to the street at Christmas,nope it’s George Soros!

Now I am angry! I am angry that the making Home Affordable plan by Obama is a big scam. I am angry that Indy Mac is acting in bad faith refusing to offer any helpful solutions. I am angry Indy Mac and others got a bail out without the Bush or Obama Administrations placing any contingencies on their use of the bail out money, i.e like setting up a real loan modification program at every lending bank.

I am equally angry with the State of California and our Governor. He signed into law the Foreclosure Protection Act which was suppose to help foreclosed homeowners have extended time above what the law allowed to stay in their home. Immediately after the bill was signed, Indy Mac filed for an exemption under that law and it was granted. Why? Because Indy Mac allegedly has a “loan modification Program” Bullshit.

I do not intend to go down without a good fight. After consulting with a Bankruptcy attorney, I have decided to go the Chapter 13 route in order to save my home. From what I have been told, this is what Indy Mac, One West Bank, Soros and Dell force hardworking customers to do to avoid being left out on the street. So, go to hell George Soros, Michael Dell, Indy Mac and One West Bank and all their other so-called “investors”.

The bank has come under criticism for its loan-modification practices. In a decision issued Nov. 19, a New York state court judge barred a foreclosure action and ordered the cancellation of a borrower’s loan because of OneWest’s conduct in the case. Judge Jeffrey Spinner called OneWest’s actions “harsh, repugnant, shocking and repulsive” and said it was “made clear to the Court that plaintiff had no good faith intention whatsoever of resolving this matter in any manner other than [foreclosure].” In addition, Judge Skinner questioned the bank’s estimate of the amount owed by the borrower.

Here is the full text of the legal opinion.