Monday, June 22, 2015

Waiting on the O’Bannon appeal: Will the 9th Circuit overturn Wilken’s ruling?

from mercurynews.com


* From the department of idle thought …
The Ed O’Bannon lawsuit hasn’t been in the news since March, when the NCAA delivered oral arguments in its appeal of the landmark antitrust case.
Three months later: Squat.
The 9th Circuit Court of Appeals has not issued a ruling …. it has not upheld Judge Claudia Wilken’s decision … hasn’t reversed it … hasn’t asked Wilken to modify it … nothing.
Forgive me for wondering, but:
If the Aug. ’14 ruling was all fine and dandy, then why hasn’t the 9th Circuit signed off?

To refresh: Wilken’s injunction created a means for football and men’s basketball players to benefit from the use of their name image and likeness by allowing (forcing) schools to establish trust funds.
A maximum of $5,000 for every season of competition could (will) be placed into the fund, with the players redeeming the money — that’s $20,000 for a standard playing career — upon the expiration of their eligibility.
But the practical impact of Wilken’s ruling pales in comparison to its potential impact.
Her finding that the NCAA’s longstanding model of amateurism is flawed, and that players deserved compensation, created a legal precedent for other lawsuits in the pipeline …
Lawsuits that could have greater consequences for the longstanding economic model of college sports …
Lawsuits that could detonate the system altogether and create an open market for athletes.
(Jeffrey Kessler, COME ON DOWN!)
So why the three-month wait for a decision on the NCAA’s appeal?
* Maybe the three-judge panel at the 9th Circuit thinks Wilken was spot on with her injunction but is simply busy with other matters.
Implementation of the Wilken ruling, after all, doesn’t begin until Aug. 1, and that’s still a whopping seven weeks away.
(9th Circuit decisions typically take three months to a year from the time of oral arguments, according to a FAQ page on the court’s website.)
* Or maybe … just maybe … the judges have a problem with all, or part of, Wilken’s ruling.
At the time of the original decision, a successful appeal by the NCAA to the 9th Circuit seemed unlikely — the Association would surely need to take the case to the Supreme Court for a shot at victory.
Now, for no reason other than the passage of time and continuation of silence, it feels like maybe … just maybe … the NCAA has a shot.
If the 9th Circuit were to deem Wilken’s injunction flawed, if it were to rule the trust fund arbitrary and improper, then it would do much more than overturn a landmark decision.
It would potentially plug up the pipeline of lawsuits that threaten real damage to the NCAA.
* That’s all, for now, from the department of idle thought. Back to our regular programming (i.e., revised top-25 basketball projections coming Wednesday )…
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* Follow me on Twitter: @WilnerHotline
* My e-book, “Andrew Luck: Inside the Making of a No. 1 Pick,” is available for $2.99 on Amazon for Kindles and for other devices (PCs, iPads and iPhones) with the free Kindle app.
* Download the Bay Area News Group’s new iPad app for more college sports and other news, or check out college sports coverage on MercuryNews.com.

JON WILNER




Tuesday, June 16, 2015

California appoints auditor to examine Ocwen treatment of borrowers

from latimes




California says it can seek repayment and penalties if auditor finds Ocwen violated mortgage servicing laws
Mortgage servicing: California hires auditor to check for violations by Ocwen Financial
California, as part of a consent order earlier this year, has named an auditor to assess whether Ocwen Financial Corp.’s mortgage servicing complies with state and federal laws.
If the review finds violations, the state Department of Business Oversight can seek repayment of funds for injured consumers as well as penalties against the Atlanta bill-collecting and foreclosure specialist, officials said Tuesday.
In a national settlement with the Consumer Financial Protection Bureau last year, Ocwen agreed to provide $268 million in relief to California homeowners over alleged foreclosure abuses.
Jan Lynn Owen, the state department’s commissioner, said Fidelity Information Services was chosen from an initial field of 31 candidates to fill the auditor position, created under a Jan. 23 consent order between Ocwen and the department.
The consent order resolved an enforcement action over Ocwen’s failure for more than a year to provide the department with loan file information needed for a routine regulatory examination. The order also required Ocwen to pay $2.5 million in penalties.
Fidelity will examine a sample of loan files and report on Ocwen’s compliance with the 2012 Homeowner Bill of Rights, the California Residential Mortgage Lending Act and other state and federal laws and regulations, the department said.
Fidelity also will review Ocwen’s practices, procedures and staffing levels to identify weaknesses that could undermine the firm’s ability to treat mortgage borrowers as required by law. Ocwen will have to adopt an action plan to correct any deficiencies identified by the auditor.
Ocwen, one of several major mortgage-service providers not affiliated with banks, has acquired rights to collect payments on hundreds of billions of dollars in home loans.
A specialist in handling troubled subprime borrowers, it was thought to have considerable expertise, but complaints mounted as the company mushroomed over the last five years.
As of March 31, Ocwen serviced 366,955 California mortgages with a total unpaid principal balance of $92.4 billion — 24% of the company’s U.S. portfolio.
In a separate settlement in New York, the company agreed to pay $150 million for relief of homeowners in that state, where it services $27 billion in home loans, 7% of the portfolio.
The Department of Business Oversight information and complaint number is (866) 275-2677.
Follow @ScottReckard for news of banks and home loans
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