Mortgage Loan Compliance | “Ill-Housed” – New Foreclosure Proposals

A recently proposed alternative that might help address the foreclosure backlog while helping delinquent borrowers would allow homes in foreclosure to be sold to private investors; the current occupants, while losing title to the properties, would remain in the homes as tenants.

Since investigations into the foreclosure process have found many irregularities the number of homes in this foreclosure glut has grown to truly astonishing proportions. A June 2011 report from Lender Processing Services, which incorporates data on more than 52 million home loans, shows that more than 4 million loans are in some stage of foreclosure or either 90+ days (seriously) delinquent. Loans in foreclosure are on average 587 days delinquent, and 35% of these borrowers have not made a payment in two or more years.

The new foreclosure proposal program would require cooperation between private investors, servicers, realtors, and rental managers. This approach would lean heavily on local resources, particularly with both administering the property sales and managing the homes as rental properties.

The government's role should be limited to setting up the parameters of the programs, including incentives for all parties (including the homeowners/renters) to participate. In this light, policy makers would be left with the unattractive alternative of either ignoring the foreclosure back-log which remains a huge drag on home prices and consumer confidence or passively watching a surge in home repossessions that leave millions of families, in FDR's words, "ill-housed."

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Mortgage Loan Compliance® | The Forensic Loan Audit Company

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Mortgage Loan Compliance | Is The U.S. Govt Going To Sue Your Lender

The New York Times reported on Thursday that the agency that oversees mortgage markets is preparing to file suit against more than a dozen big banks, accusing them of misrepresenting the quality of mortgages they packaged and sold during the housing bubble.

The Federal Housing Finance Agency, which oversees mortgage giants Fannie Mae and Freddie Mac, is expected to file suit against Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank, among other banks, the Times reported, citing three unidentified individuals briefed on the matter.

The suits stem from subpoenas the finance agency issued to banks last year. They could be filed as early as Friday, the Times said, but if not filed Friday it said the suits would come on Tuesday.

The government will argue the banks, which pooled the mortgages and sold them as securities to investors, failed to perform due diligence required under securities law and missed evidence that borrowers' incomes were falsified or inflated, the Times reported.
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Mortgage Loan Compliance® | The Forensic Loan Audit Company

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