Dec
08
NBC Nightly News | Wells Fargo CEO John Stumpf is Stumped: Disappointed by Mass. AG lawsuit against banks (VIDEO)
Visit msnbc.com for breaking news, world news, and news about the economy ~ 4closureFraud.org Tweet Related posts:NBC Nightly News | Mass. Attorney General: Why we are suing the banks (VIDEO) NBC Nightly News | John O’Brien: Can’t tell who owns mortgages (VIDEO) Wells Fargo CEO John Stumpf Mic Checked at NC State by Occupy on … Read more
Related posts:
Dec
08
NBC Nightly News | Mass. Attorney General: Why we are suing the banks (VIDEO)
Visit msnbc.com for breaking news, world news, and news about the economy ~ 4closureFraud.org Tweet Related posts:NBC Nightly News | John O’Brien: Can’t tell who owns mortgages (VIDEO) MUST SEE MSNBC Nightly News Fraudclosure Series | No End in Sight to Foreclosure Quagmire Morning Joe | Del Attorney General Goes After Banks Over Mortgage Fraudclosures
Related posts:
Dec
08
NBC Nightly News | John O’Brien: Can’t tell who owns mortgages (VIDEO)
Visit msnbc.com for breaking news, world news, and news about the economy ~ 4closureFraud.org Tweet Related posts:MUST SEE MSNBC Nightly News Fraudclosure Series | No End in Sight to Foreclosure Quagmire BREAKING NEWS: Amendment Allowing Judges to Modify Mortgages to be Included in H.R. 4173 – Wall Street Reform and Consumer Protection Act NBC Nightly … Read more
Related posts:
- MUST SEE MSNBC Nightly News Fraudclosure Series | No End in Sight to Foreclosure Quagmire
- BREAKING NEWS: Amendment Allowing Judges to Modify Mortgages to be Included in H.R. 4173 – Wall Street Reform and Consumer Protection Act
- NBC Nightly News Guest Request | Wealth Gap Between Whites, Blacks and Hispanics Due to the Fraudclosure Crisis
Dec
06
GAO Report | VACANT PROPERTIES – Growing Number Increases Communities’ Costs and Challenges
Summary Vacant and unattended residential properties can attract crime, cause blight, and pose a threat to public safety. While homeowners or mortgage owners–including the mortgage servicers that administer loans on behalf of loan owners–are responsible for maintaining vacant properties with mortgages undergoing foreclosure, the costs local governments incur to mitigate any unsafe conditions can be … Read more
Related posts:
Dec
05
60 Minutes | Prosecuting Wall Street
Prosecuting Wall Street, pt. 1 Two high-ranking financial whistleblowers say they tried to warn their superiors about defective and even fraudulent mortgages. So why haven’t the companies or their executives been prosecuted? Steve Kroft reports. Read Story: Prosecuting Wall Street Prosecuting Wall Street, pt. 2 Two high-ranking financial whistleblowers say they tried to warn their … Read more
Related posts:
Dec
01
Remember the Alamo! | Mr. Deeds (Jeff Thigpen) Goes National With Battle Cry Against the Largest Financial Institutions in the World
“I thought, ‘Homeowners really feel like they’re at the Alamo. They feel surrounded, they’re up against the big banks; their mortgages are underwater; they’re not getting any help.” “It was kind of like one of those circle-the-wagon moments,” Thigpen said. ~ Mr. Deeds Goes National With Battle Cry It was almost 200 years ago that … Read more
Related posts:
- Press Release | Guilford County Register of Deeds Jeff Thigpen Uncovers Possible Fraud by Wells Fargo, Bank of America, and MERS
- FDL | Heroic Registers of Deeds Jeff Thigpen Battling Mortgage Fraud w/ Video
- NC Register of Deeds Jeff Thigpen Takes on MERS, Questions if County is Owed Millions, Titles Compromised
Nov
30
Elijah Cummings | Oversight Committee Democrats Urge FHFA Director to Produce Documents on Principal Reduction
Oversight Committee Democrats Urge FHFA Director to Produce Documents on Principal Reduction Washington, DC (Nov. 30, 2011) – Today, Rep. Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, and all Democratic Members of the Committee sent a letter to Edward DeMarco, the Acting Director of the Federal Housing Finance … Read more
Related posts:
- FHFA Director Praises Principal Paydown Plan for Undersecured Mortgages
- FHFA OIG Report | Evaluation of the Federal Housing Finance Agency’s Oversight of Freddie Mac’s Repurchase Settlement with Bank of America
- McKinley v Federal Housing Finance Agency – FOIA Lawsuit Filed Against FHFA Over Fannie Mae and Freddie Mac Documents
Nov
30
Adam Levitin | HARP’s Dirty Little Secret: Most HARP Refis are of Positive Equity Mortgages
HARP’s Dirty Little Secret: Most HARP Refis are of Positive Equity Mortgages So the Administration has announced that it is expanding the HARP refinancing program to help underwater borrowers. Originally, HARP enabled borrowers with up to 125% loan-to-value (LTV) ratios to refinance (105% for adjustable rate loans). The revised program removes the LTV cap for … Read more
Related posts:
Nov
29
HARP’s Dirty Little Secret: Most HARP Refis are of Positive Equity Mortgages
So the Administration has announced that it is expanding the HARP refinancing program to help underwater borrowers. Originally, HARP enabled borrowers with up to 125% loan-to-value (LTV) ratios to refinance (105% for adjustable rate loans). The revised program removes the LTV cap for fixed-rate loans, reduces some refi fees, permits refis of loans that have been mildly delinquent recently, and extends the eligibility date. All the news accounts have stated that the number of HARP refinancings is expected to roughly double, from about 900,000 refinancings to perhaps 1.8 million refinancings. This is trumpeted as a boon for underwater homeowners.
The revised program may well help some underwater homeowners lower their monthly payments. Unfortunately, the 900,000 and 1.8 million numbers are seriously deceptive. Most of the HARP refinancings to date have been for borrowers with positive equity. HARP has refinanced very few underwater borrowers. As of 2Q 2011, 92% of HARP refinancings (776,009 of 838,441) were of loans between 80% LTV and 105% LTV. Only 62,432 refis were between 105% and 125% LTV. In other words, HARP has provided very little help for underwater borrowers.
(It's not clear to me what makes a refi of a <100% LTV loan a HARP refi in the first place--it's defined by FHFA as a "Fannie Mae to Fannie Mae and Freddie Mac to Freddie Mac first lien refinance loans with limited and no cash out that are owner occupied with LTV's over 80 to 125." That means that an 80% Fannie to Fannie no cash out refi is counted as HARP, but that just looks like a regular refi to me. But that's another story.)
Recognizing that HARP hasn't helped very many underwater homeowners to date makes me skeptical that an increase in the HARP LTV limit will make a difference. If you can't get the 120% LTV homeowner to refi, what will get the 140% LTV homeowner in the door? (Indeed, since the 140% LTV mortgage isn't REMIC eligible, making the refinacing less attractive from the GSE end).
Recognizing that HARP hasn't helped very many underwater homeonwers also underscores a critical problem with the program: it's not a foreclosure prevention program. HARP refi recipients generally aren't avoiding foreclosure via because of HARP. If there's a job loss, a 4% mortgage is going to be hard to carry, just like a 6% mortgage. Instead, what's going on here is stimulus via subsidy. These homeowners are getting a new mortgage at a very low rate, subsidized ultimately by the taxpayer.
That might be great as a stimulus move, but I worry that it will set an expectation for homeowners going forward of 4% mortgages and that such an expectation will constraint the restructuring of the US housing finance system. What's worse is that it's a bailout of the wrong homeowners--HARP is directing help not to the homeowners most in need, but to those who are likely to hang on. If we're going to bail out homeowners, let's at least target the right ones.
Nov
28
OCC Date | US Lenders Review Thousands of Military Fraudclosures
US lenders review military foreclosures Ten leading US lenders may have unlawfully foreclosed on the mortgages of nearly 5,000 active-duty members of the US military in recent years, according to data released by a federal regulator. JPMorgan Chase and Bank of America this year reached legal settlements in which they agreed to pay damages to … Read more
Related posts:
Nov
27
NY Times Editorial | Mitt Romney on Fraudclosures
Mr. Romney on Foreclosures Since the housing bubble began to burst six years ago, prices nationwide have fallen by a third. Nearly $7 trillion of home equity has been wiped out. Currently, some 14.7 million homeowners owe $700 billion more on their mortgages than their homes are worth. Going forward, prices are likely to fall … Read more
Related posts:
- Kathleen “Blame the Victim” Passidomo Endorses Presidential Candidate Mitt “The Foreclosurer” Romney
- Mitt Romney Fund-raiser,T. Martin Fiorentino Jr, Lobbied for Foreclosure Firm, Lender Processing Services
- TH EDITORIAL BOARD | Iowa AG Tom Miller Owes Explanation to the People RE Campaign Donations from Finance, Insurance and Real Estate Companies
Nov
22
BofA Clash With Fannie Mae Escalates Over Loan Buyback Stance
BofA Clash With Fannie Mae Escalates Over Loan Buyback Stance Bank of America Corp. (BAC) told Fannie Mae it refuses to cooperate with the U.S. mortgage firm’s new stance on loan buybacks, setting the lender up for a potential surge in claims and penalties. The bank is disputing Fannie Mae’s demand that lenders repurchase mortgages … Read more
Related posts:
Nov
21
Negative Equity: How Many Loans are Underwater in Your State?
Home equity has become a thing of the past for millions of homeowners. Nearly 11 million, to be precise. That’s the number of properties nationwide that had negative equity at the end of the second quarter of 2011, according to market research firm CoreLogic. Using CoreLogic’s data, we’ve illustrated the number and percentage of “underwater” … Read more
Related posts:
Nov
21
Negative Equity: How Many Loans are Underwater in Your State?
Home equity has become a thing of the past for millions of homeowners. Nearly 11 million, to be precise. That’s the number of properties nationwide that had negative equity at the end of the second quarter of 2011, according to market research firm CoreLogic. Using CoreLogic’s data, we’ve illustrated the number and percentage of “underwater” … Read more
Related posts:
Nov
21
Insight: The Wall Street disconnect – “The consumer is simply an income stream and exploiting that is the purpose of the banking organization.”
Insight: The Wall Street disconnect David Mooney, chief executive officer of Alliant Credit Union in Chicago, one of the nation’s larger credit unions, used to work at one of Wall Street’s top banks, JPMorgan Chase. There’s a vast cultural gap between Wall Street and his new world, he says: Old friends from the Street, he … Read more
Related posts:
Nov
11
$116,785 Each | Department of Justice Announces Compensation for Servicemembers that were Illegally Foreclosed as Part of Settlement with Bank of America
Department of Justice Office of Public Affairs FOR IMMEDIATE RELEASE Thursday, November 10, 2011 Department of Justice Announces Compensation for Servicemembers as Part of Settlement with Bank of America WASHINGTON – The Justice Department announced today that, as part of its settlement with BAC Home Loans Servicing LP, a subsidiary of Bank of America Corporation, … Read more
Related posts:
- Justice Department Settles with Bank of America and Saxon Mortgage for Illegally Foreclosing on Servicemembers
- Military “Deadbeats” | JP Morgan Chase Overcharged Troops on Mortgages and Illegally Foreclosed on Military Families
- FL Attorney General Announces $67 Million National Settlement with Bank of America over Bid-Rigging Scheme
Nov
10
Fannie Mae Begs Treasury for $7.8 Billion MORE to Stay Afloat After HUGE Bonuses Given to Executives
“The Federal Housing Finance Agency, the government regulator for Fannie and Freddie, approved $12.79 million in bonus pay after 10 executives from the two government-sponsored corporations last year met modest performance targets tied to modifying mortgages in jeopardy of foreclosure.” ~ And they call you the “DEADBEAT.” ~ Fannie Mae taps $7.8 bln from Treasury, … Read more
Related posts:
Nov
10
Fannie Mae Begs Treasury for $7.8 Billion MORE to Stay Afloat After HUGE Bonuses Given to Executives
“The Federal Housing Finance Agency, the government regulator for Fannie and Freddie, approved $12.79 million in bonus pay after 10 executives from the two government-sponsored corporations last year met modest performance targets tied to modifying mortgages in jeopardy of foreclosure.” ~ And they call you the “DEADBEAT.” ~ Fannie Mae taps $7.8 bln from Treasury, … Read more
Related posts:
Nov
05
Get your Independent Foreclosure Review!
OCC and the Federal Reserve announced this week that banks who service mortgages will be sending letters to homeowners this month and next, offering them an opportunity to request review of any 2009 or 2010 foreclosure. Every homeowner who asks gets a full independent review by a foreclosure auditor. A homeowner who was in any stage of foreclosure in 2009 or 2010 is eligible for review and possible compensation. The request for review runs to five pages, and the web site is not exactly user-friendly. There is also a toll-free number to apply: 888-952-9105.
Compensation will be paid (in the amount determined by the independent reviewers discussed on this blog previously) for financial injuries resuting from errors, misrepresentations or deficiencies in the foreclosure process. Examples include foreclosures during bankruptcy or against an active-duty service member, improper legal or other fees, or foreclosure while a homeowner is in trial or permanent modification plan. The deadline to request a review is April 30, 2012. A request for review will not stop foreclosure, and redress payments will not require borrowers to release claims or affect any pending foreclosure litigation or bankruptcy proceeding. The foreclosure reviews are being done by consulting firms, such as Price Waterhouse and Promontory.
However weak or unreliable this process may be, homeowners have nothing (other than some time) to lose by applying for a review. Borrowers in foreclosure litigation or bankruptcy might also want to seek discovery of their audit/review files to see what deficiencies were identified (or missed).
Nov
04
FHFA Director Praises Principal Paydown Plan for Undersecured Mortgages
FHFA Director Praises Principal Paydown Plan as “Promising” and “Credible” Pledges to Provide Members an Assessment in Two Weeks Washington, DC (Oct. 26, 2011)—During a meeting today with 19 Members of Congress, Edward DeMarco, the Acting Director of the Federal Housing Finance Agency (FHFA), praised a principal reduction proposal by Rep. Zoe Lofgren and pledged … Read more
Related posts:
Nov
03
Jeffrey Stephan | Ally (GMAC) CEO Ready to Fight Robo-signing Settlement
“We deeply regret the sloppy operational practices that led to this. But we have contractual obligations as a servicer to foreclose when we must,” ~ I sometimes wonder if these asshats really believe what they are saying… ~ Ally CEO ready to fight robo-signing settlement Ally Financial (GJM: 21.93 +0.37%) CEO Michael Carpenter will not … Read more
Related posts:
Oct
27
KABOOM | Mortgage Electronic Registration System (MERS) Sued by Delaware Attorney General
MERS Mortgage Registry Sued by Delaware Attorney General Oct. 27 (Bloomberg) — The Delaware attorney general’s office sued Merscorp Inc., which runs a national mortgage registry used by banks, saying its practices are deceptive and hide information from borrowers. The MERS database, which tracks ownership interests in mortgages, obscures information from borrowers and impeded their … Read more
Related posts:
- D D D Delaware – Attorney General Biden Calls on Three Banks to Halt Delaware Foreclosures
- MERS Hit with $400,000,000 Lawsuit | Mortgage Electronic Registration Systems Sued Over Michigan Foreclosures
- Statement by CEO of Mortgage Electronic Registration Systems (MERS) “The MERS System is not fraudulent, and MERS has not committed any fraud.”
Oct
27
Great news: Obama’s student-loan changes puts $8 in borrower pockets per month
President Unilateral saves the economy!
In trying to contrast himself with a supposedly balky Congress, Barack Obama has rolled out the first two in a series of unilateral executive actions to “heal this economy.” The first attempted to rescue homeowners from foreclosures by refinancing mortgages that are, er, current with their payments. The second adjusted caps on student-loan payments in [...]
Oct
27
White Paper | DECONSTRUCTING THE BLACK MAGIC OF SECURITIZED TRUSTS
DECONSTRUCTING THE BLACK MAGIC OF SECURITIZED TRUSTS: HOW THE MORTGAGE-BACKED SECURITIZATION PROCESS IS HURTING THE BANKING INDUSTRY’S ABILITY TO FORECLOSE AND PROVING THE BEST OFFENSE FOR A FORECLOSURE DEFENSE INTRODUCTION From 2003 to 2007, Florida saw the largest real estate boom in its history. Real estate sold at astonishing prices as people were sold a … Read more
Related posts:
Oct
25
Schott v BAC Home Loans | Lawsuit Says Securitization Process Waives Banks Foreclosure Rights
Plum man files suit over home foreclosure The millions of mortgages that were bundled into giant investment pools and traded like stocks shouldn’t be subject to foreclosure, according to an unusual lawsuit filed Wednesday. That’s because when banks chose to turn mortgages into investment products, they gave up the right to take the house, attorney … Read more
Related posts:
- Facing Foreclosure, Vice President of Bank of America Home Loans, Michael Kim, Allegedly Stole $1 Million from Customers Before Disappearing
- Walnut Place LLC v. Countrywide Home Loans Inc | Bank of America Sued by Investors Seeking to Unload Loans
- Bank of America Attempts Another Theft of an American Home with PAID OFF MORTGAGE! Maria and Jose Perez v. Bac Home Loans Servicing Lp, ReconTrust, Na
Oct
24
MSN Money | “In many states, MERS has no standing in foreclosure”
7 reasons bank stocks may keep falling Number 7… 7. Lawsuits. Half of America’s mortgages are on MERS (Mortgage Electronic Registration System), but, in many states, MERS has no standing in foreclosure. Theoretically every owner of a securitized pool should sign off on each foreclosure in the pool. There could be hundreds, if not thousands, … Read more
Related posts:
Oct
19
Citigroup to Pay a Mere $285 Million to Settle SEC Charges for Misleading Investors About CDO Tied to Housing Market
Notice how the above graphic does not include a section for PROSECUTIONS stemming from the financial crisis. ~ Citigroup to Pay $285 Million to Settle SEC Charges for Misleading Investors About CDO Tied to Housing Market Former Citigroup Employee Separately Charged for His Role in Structuring Transaction FOR IMMEDIATE RELEASE 2011-214 Washington, D.C., Oct. 19, … Read more
Related posts:
- Yawn | J.P. Morgan to Pay $153.6 Million to Settle SEC Charges of Misleading Investors in CDO Tied to U.S. Housing Market
- SEC Charges Goldman Sachs With Fraud in Structuring and Marketing of CDO Tied to Subprime Mortgages
- Morgan Keegan to Pay $200 Million to Settle Fraud Charges Related to Subprime Mortgage-Backed Securities
Oct
13
Supply and Demand | Banks backing off on foreclosures in Palm Beach County
Why? Because of supply and demand; banks typically sell properties they repossess, and they know that putting more homes on the market will hurt values. Once a lender takes back a home, it pays the costs of owning the property, including insurance premiums, homeowner association fees and maintenance. So banks seemingly have decided that it … Read more
Related posts:
Oct
12
Victimless Crime | Banks, Obama Administration Pressure AGs on Fraudclosure Settlement
Banks say they are being unfairly penalized because Robo Signing is basically a victimless crime; the vast majority of the people being foreclosed upon have been delinquent on their mortgages for a significant period of time. One of the arguments the administration is using with some success is that the foreclosure investigation has prevented banks … Read more
Related posts:
- Obama Administration, State Officials Expected To Give Banks New Mortgage Terms As Some Question Pace Of Negotiations
- Obama Administration Scales Back Proposed Homeowner Relief Effort Over Alleged Foreclosure Abuses
- Dismissal of NY Attorney General Schneiderman shows Obama Administration and Iowa AG Miller poised to let Big Banks off the hook for Mortgage Fraud
