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Mortgage Crisis Watch Business and legal issues affecting: loan repurchases | mortgage-backed securities | mortgage insurance

Tag Archives: Foreclosure

Main Street Cashes $3.1 Billion in Checks from Wall Street

With the mortgage crisis almost a decade in the rear-view mirror, some harmed homeowners are just now starting to see reparations for the transgressions of the country’s largest financial institutions. Beginning in January 2013, thirteen banks—including Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo—settled 2011 and 2012 actions instituted by… Continue Reading

Massachusetts Sues Fannie and Freddie for Blocking Home Buybacks

Earlier this month, Massachusetts Attorney General Martha Coakley initiated an action against Fannie Mae, Freddie Mac and the Federal Housing Finance Agency for allegedly illegally impeding non-profit foreclosure buyback programs. These buyback programs purchase properties in foreclosure and then resell the properties to the prior owners at an affordable price, helping low-income residents keep their homes…. Continue Reading

Loan Modification and the Failure to Mitigate Damages

Freddie Mac Streamlined Modification Freddie Mac has announced the immediate implementation of its Streamlined Modification program, a no-document modification program offered to severely delinquent borrowers.  The implementation of the program, originally set to begin July 1, came six weeks earlier than expected in an effort to expedite financial relief for potentially thousands of distressed families. Under… Continue Reading

TBTF Servicing: Another Issue for Originators to Consider

Shocking Statistics from Foreclosure Review As widely reported recently, close to 1.2 million borrowers (about 30% of the more than 3.9 million households that faced foreclosure proceedings by the 11 leading financial institutions in 2009 and 2010), had to battle purported wrongful seizures of these properties. These battles were frequently waged despite the borrowers not… Continue Reading

Taking The Easy Way Out Again: Recent OCC/Big Banks Settlement

Amidst Evidence both Old and New of Big Banks’ Wrongdoing, OCC Again Drops the Ball by Settling Instead of Regulating the Culprits Any follower of this blog or the mortgage crisis at large will — sadly — not be surprised by the seemingly never-ending news of foreclosure misdeeds by the nation’s biggest banks. Recent news… Continue Reading

ZOMBIE TITLE

Think your house has been foreclosed? Think again… As reported by Michelle Conlin at Reuters, when banks fail to follow through on foreclosure of homes, this has serious, often dramatic ramifications for the homeowner. A person subject to “zombie title” is an individual, who, unbeknownst to him or her, is still the actual homeowner, despite the fact… Continue Reading

HUD Selling Troubled Mortgages

The U.S. Department of Housing and Urban Development recently announced that it is accepting applications for investors interested in buying distressed residential mortgage loans formerly insured by the FHA, focusing on mortgages in Chicago, IL, Newark, NJ, Phoenix, AZ, and Tampa, FL. The Distressed Asset Stabilization Program is an expansion of an FHA disposition program… Continue Reading

New York Attorney General: Foreclosure Fraud and “Robosigning”

New York Attorney General Takes On Foreclosure Fraud, Including “Robosigning” New York Attorney General, Eric T. Schneiderman,  has announced the introduction of a bill that would protect New Yorkers from fraudulent business practices in the foreclosure process, including “robosigning.” The Foreclosure Fraud Prevention Act of 2012  imposes new criminal penalties for those who intentionally engage… Continue Reading

HUD Inspector General’s Reports on Foreclosure Handling Process of Five Major US Banks

In conjunction with its publication of the $25 billion settlement agreement, the Department of Housing and Urban Development’s Inspector General released separate reports detailing its investigation of foreclosure-handling practices at five major U.S.banks – JPMorgan, Wells Fargo, CitiMortgage, Bank of America and Ally Financial.   The Inspector General’s reports confirm and detail the lengths to which… Continue Reading