U.S. Bank to boost employment in Brookfield credit card technology office; Losses continued in 2009 for Waterstone Financial; Bank of America to pay restitution for Countrywide’s subprime loans
U.S. Bank to boost employment in Brookfield credit card technology office
Minneapolis-based U.S. Bank is preparing to hire another 60 workers for its credit card issuing technology team. The bank’s technology and operations services group currently has approximately 300 employees supporting the credit card arm of its retail payments solutions group, which also provides debit and prepaid cards.
About two-thirds of those are based in Brookfield, with the others in Portland, Ore., Minneapolis and Denver locations.
“It says a lot about the quality of our work force, the strong work ethic and the importance of the Milwaukee market for U.S. Bank going forward,” said Bill Bertha, president of U.S. Bank in Wisconsin.
The additional jobs will bring U.S. Bank’s total employees to 3,331 in southeastern Wisconsin and 4,804 in the state.
“This is a great time to reinvest in our infrastructure so that we can continue to provide top-notch service for our existing customers while building for future growth,” said Prescott Balch, U.S. Bank senior vice president and development manager for the bank’s credit card technology team. “Despite unprecedented legislative and competitive changes in the card industry, U.S. Bank continues to invest in this very important business.”
Losses continued in 2009 for Waterstone Financial
Wauwatosa-based Waterstone Financial Inc., the corporate parent of Waterstone Bank, continued to lose money in 2009, but at a slower pace than its 2008 losses.
The financial holding company reported a net loss of $8.9 million last year, compared to its $26.4 million loss in 2008. Waterstone Financial’s losses were largely related to real estate loan losses, the company said in a year-end news release.
The company’s allowance for loan losses increased 13 percent last year, to $28.5 million from $25.2 million in 2008. Its total loans past due decreased from $145.9 million at the end of 2008 to $113.4 million by the end of 2009.
Waterstone Financial’s interest income rose in 2009 to $43.9 million, from $41.1 million on 2008. Its non-interest income rose to $12.2 million in 2009, compared to $6.3 million in 2008.
Bank of America to pay restitution for Countrywide’s subprime loans
The Wisconsin Department of Justice (DOJ) announced that Bank of America (BOA), which acquired Countrywide Financial Corp. in 2008, will begin sending out more than $824,000 in restitution to Countrywide customers who lost their homes to foreclosure.
"I am pleased that this settlement will now provide direct relief to Countrywide customers who lost their homes to foreclosure," said Attorney General J.B. Van Hollen. "My office continues to make foreclosure issues and mortgage fraud a priority. In the long run, prevention is key. However, in these instances homeowners were misled into unaffordable loans and unfortunately lost their homes to foreclosure. Restitution is now due."
Eligible borrowers took out subprime Countrywide loans between January 2004 and December 2007 and then lost their homes to foreclosure between 2004 and 2008. Of the 648 eligible borrowers, 256 will receive at least $1,947.45 and 392 will receive at least $830.63. The borrowers have already been notified and submitted claim forms.
The restitution is the latest part of DOJ’s 2009 settlement with Countrywide, resolving a lawsuit that alleged misleading and deceptive practices in the sale of residential loans. Under the terms of the settlement, Countrywide also paid over $800,000 to be used toward foreclosure mitigation efforts.
In May of 2009, Van Hollen used a portion of the Countrywide settlement funds to join Milwaukee Mayor Tom Barrett and Marquette University in launching the Milwaukee Foreclosure Mediation Program. The Milwaukee program is intended to mitigate foreclosures in Milwaukee and serve as a resource for similar programs throughout the state. As part of the program, Van Hollen named Nelle Rohlich as special assistant attorney general for mortgage foreclosure mitigation.
Last November, Van Hollen joined the Federal Trade Commission in a sweep targeting loan modification schemes. Van Hollen also secured $3.2 million in restitution for Wisconsin homeowners in a multistate action against Ameriquest Mortgage Co.
