| Md. mortgage fee lawsuit reinstated
A ruling yesterday from the state's highest court over prepayment mortgage charges could make it more expensive for some to obtain home equity loans, the banking industry's trade association warned.
The Maryland Court of Appeals found that state-chartered Provident Bank assessed a "prepayment charge" that's not allowed under state law. The bank had waived $680 in closing costs on a $17,000 loan to Andrew Bednar in 2003 but collected the money after the loan was paid off early when he refinanced with another lender two years later.
The ruling overturns a decision by Baltimore Circuit Court to dismiss the lawsuit against Provident.
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Wells Fargo to absorb $1.4B provision in 4Q for losses on loans
Wells Fargo & Co. is absorbing $1.4 billion in losses on home equity loans that borrowers have stopped repaying amid a deepening real estate slump that's turned into a financial sinkhole. Until Wells Fargo disclosed its projected losses late Tuesday, the San Francisco-based bank had suffered relatively little damage in a mortgage meltdown that had already battered other major U.S. lenders. "Clearly, this is a disappointment because (Wells) had been seen as better managers of credit than many other big banks," said RBC Capital Markets analyst Joseph Morford. "But now they have a big blemish on them, too." After gaining 34 cents to finish at $29.83 in Tuesday's regular session, Wells Fargo shares plunged $1.40, or 4.7 percent, in the extended trading that followed a Securities and Exchange Commission filing outlining the bank's home equity loan losses.
HOCKING THE HIGHWAYS: Toll road plan could be costly
The state's toll roads might not be paved with gold, but they are worth a fortune to Gov. Jon S. Corzine. He is banking on using the highways to pay down New Jersey's massive debt, a tricky, high-stakes game that could end up costing motorists plenty. Corzine has kept his roadway monetization plan under tight wraps, saying he will unveil details in January. The plan most likely will call for the selling of bonds to unlock the total value of the roadways -- a principle similar to getting a home-equity loan to help retire $16 billion in state debt. 1 2 The monetization plan, one roadway expert says, could spike tolls by 2times what they are now. Others say toll booths could spring up on currently free highways. "Think about the average commuter whose toll is $2," said Peter Humphreys, a Wall Street lawyer and spokesman for "Save Our Assets" a New Jersey group opposed to all types of monetization.
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