According to JPMorgan Chase and four other mortgage servicers sites certain mortgages will soon be eligible for refinance, modification, short sale or other programs to help customers facing mortgage payment hardship.
While this settles mortgage servicing issues with federal and state agencies the obvious question is will the settlement programs actually supplement existing loan refinances, modifications and other alternatives to foreclosure programs that will help keep borrowers in their homes, forestall foreclosures and stabilize communities nationwide.
As we have seen with previous settlements, Lenders and Servicers typically continue to act in bad faith leaving most homeowners with no other option than to sue the lender themselves.
This settlement program renews borrowers hope, but read the fine print of some the options that may be available to you.
1. If your foreclosure occurred between 2008 and 2011: You may be eligible for a cash payment by contacting your state attorney general's office online. Those eligible will be notified by mail and according to the attorneys general website, this may take six to nine months. The state attorneys general and the Federal Housing Administration (FHA) insurance fund will receive and distribute funds to homeowners who qualify.
2. Current on your payments and interested in refinancing your loan: Your lender or service will notify you by mail if you are eligible for a refinance through the settlement in the next few months.
So, if you qualify, you may be contacted in the next few months while your home prices or values continue to decline.
If you were foreclosed on you could get up to $2,000, if you qualify.
Even though most homeowners have negative equity greater than $50,000; a Principal reductions of up to $20,000 may be available to you, if you qualify.
Finally, if you are delinquent or struggling to make your payments you must apply for a loan modification or other alternatives to foreclosure, but you may not qualify.
Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights.
_______________________
Mortgage Loan Compliance®
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Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
Friday, February 17, 2012
Monday, January 30, 2012
Residential MBS Working Group (MBS Fraud Task Force)
As of last week the Residential Mortgage-Backed Securities Working Group tasked with investigating mortgage fraud is official. The new office is part of the Administrations Financial Fraud Enforcement Task Force (FFETF) and was first announced by President Obama in his State of the Union speech last Tuesday.
US Attorney General Eric Holder said that the goal of the group will be to hold accountable any institutions that violated the law; to compensate victims and help provide relief for homeowners struggling from the collapse of the housing market, caused in part by this wrongdoing and to help turn the page "on this destructive period in our nation's history."
At the press conference last week Attorney General Holder along with Housing and Urban Development (HUD) Secretary Shaun Donovan, Securities and Exchange Commission (SEC) Director of Enforcement Robert Khuzami and New York Attorney General Eric T. Schneiderman, outlined the mechanics of the working group which will bring together the Department of Justice (DOJ), several state attorneys general and other federal entities to investigate those responsible for misconduct contributing to the financial crisis through the pooling and sale of residential mortgage-backed securities.
Schneiderman said, "In coordination with our federal partners, our office will continue its steadfast commitment to holding those responsible for the mortgage crisis accountable, providing meaningful relief for homeowners commensurate with the scale of the misconduct, and getting our economy moving again. The American people deserve a thorough investigation into the global financial meltdown to ensure nothing like it ever happens again, and today's announcement is a major step in the right direction."
The group will consist of at least 55 DOJ attorneys, analysts, agents, and investigators from around the country including the 15 civil and criminal attorneys and 10 FBI agents already employed in the FFETF unit. This team will join existing state and federal resources investigating similar misconduct under those authorities.
_______________________
Mortgage Loan Compliance®
The Forensic Loan Audit Company
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Call Today 1-866-966-6615 or Visit www.ml-compliance.com
US Attorney General Eric Holder said that the goal of the group will be to hold accountable any institutions that violated the law; to compensate victims and help provide relief for homeowners struggling from the collapse of the housing market, caused in part by this wrongdoing and to help turn the page "on this destructive period in our nation's history."
At the press conference last week Attorney General Holder along with Housing and Urban Development (HUD) Secretary Shaun Donovan, Securities and Exchange Commission (SEC) Director of Enforcement Robert Khuzami and New York Attorney General Eric T. Schneiderman, outlined the mechanics of the working group which will bring together the Department of Justice (DOJ), several state attorneys general and other federal entities to investigate those responsible for misconduct contributing to the financial crisis through the pooling and sale of residential mortgage-backed securities.
Schneiderman said, "In coordination with our federal partners, our office will continue its steadfast commitment to holding those responsible for the mortgage crisis accountable, providing meaningful relief for homeowners commensurate with the scale of the misconduct, and getting our economy moving again. The American people deserve a thorough investigation into the global financial meltdown to ensure nothing like it ever happens again, and today's announcement is a major step in the right direction."
The group will consist of at least 55 DOJ attorneys, analysts, agents, and investigators from around the country including the 15 civil and criminal attorneys and 10 FBI agents already employed in the FFETF unit. This team will join existing state and federal resources investigating similar misconduct under those authorities.
_______________________
Mortgage Loan Compliance®
The Forensic Loan Audit Company
Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
Tuesday, January 24, 2012
Fannie and Freddie Principal Reductions Would Cost Taxpayer $100 Billion
The Federal Housing Finance Agency said that as of June 30, Fannie Mae and Freddie Mac guaranteed nearly 3 million mortgages on single family homes that are underwater, or worth less than the loans they secure.
Nearly 80 percent of the Fannie Mae and Freddie Mac borrowers with negative equity were current on their payments, said FHFA Acting Director Edward J. DeMarco.
"FHFA estimates that principal forgiveness for all of these mortgages would require funding of almost $100 billion," according to DeMarco in a Jan. 20 letter the FHFA posted on its website today.
DeMarco, whose agency was created by Congress to minimize losses at Fannie Mae and Freddie Mac and is independent of President Barack Obama's administration, has maintained that principal forgiveness would increase the size of the government's bailout of the companies, which have cost taxpayers more than $153 billion since they were taken under government control in 2008.
The agency compared the cost of principal forgiveness to the companies' current practice of forbearance, which allows delinquent borrowers to defer payments.
"Given that any money spent on this endeavor would ultimately come from taxpayers and given that our analysis does not indicate a preservation of assets for Fannie Mae and Freddie Mac (FMCC) substantial enough to offset costs, an expenditure of this nature at this time would, in my judgment, require congressional action," he said.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
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Nearly 80 percent of the Fannie Mae and Freddie Mac borrowers with negative equity were current on their payments, said FHFA Acting Director Edward J. DeMarco.
"FHFA estimates that principal forgiveness for all of these mortgages would require funding of almost $100 billion," according to DeMarco in a Jan. 20 letter the FHFA posted on its website today.
DeMarco, whose agency was created by Congress to minimize losses at Fannie Mae and Freddie Mac and is independent of President Barack Obama's administration, has maintained that principal forgiveness would increase the size of the government's bailout of the companies, which have cost taxpayers more than $153 billion since they were taken under government control in 2008.
The agency compared the cost of principal forgiveness to the companies' current practice of forbearance, which allows delinquent borrowers to defer payments.
"Given that any money spent on this endeavor would ultimately come from taxpayers and given that our analysis does not indicate a preservation of assets for Fannie Mae and Freddie Mac (FMCC) substantial enough to offset costs, an expenditure of this nature at this time would, in my judgment, require congressional action," he said.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
Wednesday, January 4, 2012
Mortgage Loan Compliance | FHA’s New $50 Billion Dollar Bailout
The FHA doesn't issue mortgages, but instead insures lenders against defaults. However in November 2011, an independent audit of FHA's finances found that losses from mortgage defaults had depleted the agency's reserve fund to 0.24%, or $2.6 billion, during fiscal 2011. This leaves the agency well below the Congressionally-mandated 2% level. (The ratio measures the net worth of the reserve fund compared with the value of the loans FHA has insured.) In 2006, the reserve fund stood at 7%.
According to the report, the percentage of loans in the FHA's portfolio with three missed payments or more rose to 9.3% in November, up from 8.4% in August.
At the time, the agency's auditor warned that if home prices continued to drop, FHA could run through the remainder of its reserves, forcing it to either seek a bailout from the Treasury Department or further increase the premiums it charges borrowers. Such a bailout could cost billions.
Joseph Gyourko, a Real Estate Professor at the University of Pennsylvania's Wharton School and author of a report entitled "Is FHA the Next Big Housing Bailout?.", argues that the FHA is so undercapitalized that it would need at least $50 billion, even if the housing markets don't deteriorate further. But even by more conservative measures, the agency would need at least $20 billion to meet the capital requirements mandated by Congress.
"It's highly likely that the FHA will need a taxpayer bailout over the next three to five years," said Gyourko.
_______________________
Mortgage Loan Compliance® The Forensic Loan Audit Company
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According to the report, the percentage of loans in the FHA's portfolio with three missed payments or more rose to 9.3% in November, up from 8.4% in August.
At the time, the agency's auditor warned that if home prices continued to drop, FHA could run through the remainder of its reserves, forcing it to either seek a bailout from the Treasury Department or further increase the premiums it charges borrowers. Such a bailout could cost billions.
Joseph Gyourko, a Real Estate Professor at the University of Pennsylvania's Wharton School and author of a report entitled "Is FHA the Next Big Housing Bailout?.", argues that the FHA is so undercapitalized that it would need at least $50 billion, even if the housing markets don't deteriorate further. But even by more conservative measures, the agency would need at least $20 billion to meet the capital requirements mandated by Congress.
"It's highly likely that the FHA will need a taxpayer bailout over the next three to five years," said Gyourko.
_______________________
Mortgage Loan Compliance® The Forensic Loan Audit Company
Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
Wednesday, December 28, 2011
Mortgage Loan Compliance | Homeowners Who Fight Foreclosure Stay Longer
Nationwide, the average time it takes to process a foreclosure - from the first missed payment to the final foreclosure auction - has climbed to 674 days from 253 days just four years ago, according to LPS Applied Analytics. It takes much longer in states like Florida, where the process averages 1,027 days, nearly 3 years. In D.C., foreclosure averages 1,053 days and delinquent borrowers in New York often stay in their homes for an average of 906 days.
Delinquent borrowers who face foreclosure are learning that they can stay in their homes for years, as long as they're willing to put up a fight. Among the strategies: Challenging the bank's actions, waiting to file paperwork right up until the deadline, requesting the lender dig up original paperwork or, in some extreme cases, declaring bankruptcy.
Many of these homeowners are staying in their homes based on a technicality. There is rarely any dispute over whether or not they have stopped paying their mortgage, said David Dunn, a partner at law firm Hogan Lovells in New York, who represents banks and other financial institutions in foreclosure cases.
"In my experience, they never say, 'I'm not delinquent' or 'I want to pay my bill but I'm confused over who to send it to,' or 'oh my God, you mean I didn't pay my mortgage?' They're not in technical default. They're in default because they're not paying," he said.
Ironically enough, the banks have given delinquent borrowers some of the ammunition they need to delay the foreclosure process. When the Robo-Signing scandals revealed that bank employees signed paperwork attesting to facts they had no personal knowledge of. Now, borrowers are routinely challenging that paperwork.
Sometimes just asking the bank to produce the paperwork that shows it is the legal holder of the mortgage note can stall a repossession, said attorney Robert Brown. Since mortgages are often transferred electronically through MERS, the official paperwork often gets misplaced.
In some of the more extreme cases, borrowers will file for bankruptcy in order to block a foreclosure. In these instances, courts order creditors to cease their collection activities immediately. Home auctions can be postponed as the bankruptcy plays out, which can take months.
David Berenbaum of the National Community Reinvestment Coalition (NCRC), a community activism group, disputes any contention that owners are gaming the system for free rent and hurting the housing market. "Most people do everything in their power to maintain these homes," he said. "They take in relatives, get second jobs and even rent out rooms." What really needs to be done, he said, is for lenders to work harder to find solutions that allow delinquent borrowers who can afford to make reasonable mortgage payments to keep their homes.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
Delinquent borrowers who face foreclosure are learning that they can stay in their homes for years, as long as they're willing to put up a fight. Among the strategies: Challenging the bank's actions, waiting to file paperwork right up until the deadline, requesting the lender dig up original paperwork or, in some extreme cases, declaring bankruptcy.
Many of these homeowners are staying in their homes based on a technicality. There is rarely any dispute over whether or not they have stopped paying their mortgage, said David Dunn, a partner at law firm Hogan Lovells in New York, who represents banks and other financial institutions in foreclosure cases.
"In my experience, they never say, 'I'm not delinquent' or 'I want to pay my bill but I'm confused over who to send it to,' or 'oh my God, you mean I didn't pay my mortgage?' They're not in technical default. They're in default because they're not paying," he said.
Ironically enough, the banks have given delinquent borrowers some of the ammunition they need to delay the foreclosure process. When the Robo-Signing scandals revealed that bank employees signed paperwork attesting to facts they had no personal knowledge of. Now, borrowers are routinely challenging that paperwork.
Sometimes just asking the bank to produce the paperwork that shows it is the legal holder of the mortgage note can stall a repossession, said attorney Robert Brown. Since mortgages are often transferred electronically through MERS, the official paperwork often gets misplaced.
In some of the more extreme cases, borrowers will file for bankruptcy in order to block a foreclosure. In these instances, courts order creditors to cease their collection activities immediately. Home auctions can be postponed as the bankruptcy plays out, which can take months.
David Berenbaum of the National Community Reinvestment Coalition (NCRC), a community activism group, disputes any contention that owners are gaming the system for free rent and hurting the housing market. "Most people do everything in their power to maintain these homes," he said. "They take in relatives, get second jobs and even rent out rooms." What really needs to be done, he said, is for lenders to work harder to find solutions that allow delinquent borrowers who can afford to make reasonable mortgage payments to keep their homes.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
Tuesday, December 20, 2011
Mortgage Loan Compliance | CA Attorney General Sues Mortgage Giants
The California Attorney General Kamala Harris has filed a lawsuit against Fannie Mae and Freddie Mac over mortgage and foreclosure problems. The suit comes after Fannie and Freddie's regulator, the Federal Housing Finance Agency, blocked Harris's inquiry into the mortgages and foreclosed properties the Government Sponsored Entities (GSE’s) own in California.
In the lawsuits she filed Harris says that Fannie and Freddie hold extensive information that is critical to her investigation. She notes that between 2007 and June 2011 over 768,000 homes have been foreclosed in California and says those foreclosed homes caused numerous problems in her state including criminal activity like prostitution and drug trafficking.
Fannie and Freddie play and central role in the mortgage and foreclosure issues in California, she says in her suit. As a result, Harris requested answers to questions she says are critical to protecting the health, safety and welfare of the state's residents.
But instead of complying, Harris says in her complaint, Fannie and Freddie have failed and refused to provide any information her office requested.
In September Harris pulled her state of out a nationwide foreclosure probe of some of the nation’s biggest banks over their shady foreclosure practices. That investigation was assembled by the country’s attorneys generals nearly a year ago to look into fraudulent foreclosure practices by banks. Harris backed out of the settlement because “the the nation’s five largest mortgage servicers were not offering California homeowners relief commensurate to what people in the state had suffered.”
_______________________
Mortgage Loan Compliance®
The Forensic Loan Audit Company
Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
In the lawsuits she filed Harris says that Fannie and Freddie hold extensive information that is critical to her investigation. She notes that between 2007 and June 2011 over 768,000 homes have been foreclosed in California and says those foreclosed homes caused numerous problems in her state including criminal activity like prostitution and drug trafficking.
Fannie and Freddie play and central role in the mortgage and foreclosure issues in California, she says in her suit. As a result, Harris requested answers to questions she says are critical to protecting the health, safety and welfare of the state's residents.
But instead of complying, Harris says in her complaint, Fannie and Freddie have failed and refused to provide any information her office requested.
In September Harris pulled her state of out a nationwide foreclosure probe of some of the nation’s biggest banks over their shady foreclosure practices. That investigation was assembled by the country’s attorneys generals nearly a year ago to look into fraudulent foreclosure practices by banks. Harris backed out of the settlement because “the the nation’s five largest mortgage servicers were not offering California homeowners relief commensurate to what people in the state had suffered.”
_______________________
Mortgage Loan Compliance®
The Forensic Loan Audit Company
Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
Thursday, December 1, 2011
Mortgage Loan Compliance | Mass AG Gets Serious and Sues Five Lenders
The Massachusetts Attorney General, Martha Coakley, has filed a lawsuit against five large U.S. banks accusing them of deceptive foreclosure practices, a signal of ebbing confidence that a multi-state agreement can be worked out.
The Massachusetts lawsuit, filed in state court in Boston, accuses Bank of America Corp, JPMorgan Chase & Co Inc, Citigroup Inc, Wells Fargo & Co and GMAC of deceptive foreclosure practices, such as using robo-signers and false documents.
For more than a year, state and federal officials have been negotiating a deal in which banks would pay billions of dollars in fines - to go toward housing relief - in exchange for legal protection against future suits.
"Our suit alleges that the banks have charted a destructive path by cutting corners and rushing to foreclose on homeowners without following the rule of law," Coakley said in a statement.
The attorney general in Iowa, Tom Miller, who is leading the negotiations for the states, said in a statement they hope to reach a settlement "soon." He also said Coakley had indicated she is still open to joining the settlement.
"We're optimistic that we'll settle on terms that will be in the interests of Massachusetts," Miller said.
_______________________
Mortgage Loan Compliance®
The Forensic Loan Audit Company
Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
The Massachusetts lawsuit, filed in state court in Boston, accuses Bank of America Corp, JPMorgan Chase & Co Inc, Citigroup Inc, Wells Fargo & Co and GMAC of deceptive foreclosure practices, such as using robo-signers and false documents.
For more than a year, state and federal officials have been negotiating a deal in which banks would pay billions of dollars in fines - to go toward housing relief - in exchange for legal protection against future suits.
"Our suit alleges that the banks have charted a destructive path by cutting corners and rushing to foreclose on homeowners without following the rule of law," Coakley said in a statement.
The attorney general in Iowa, Tom Miller, who is leading the negotiations for the states, said in a statement they hope to reach a settlement "soon." He also said Coakley had indicated she is still open to joining the settlement.
"We're optimistic that we'll settle on terms that will be in the interests of Massachusetts," Miller said.
_______________________
Mortgage Loan Compliance®
The Forensic Loan Audit Company
Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
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