Monthly Archives: August 2016

New and Old Lawsuits – Notable Settlements;

The whole residential lending industry is abuzz about the article on housing in the Economist. "A decade on, the presumption is that the mortgage-debt monster has been tamed. In fact, vast, nationalized, unprofitable and undercapitalized, it remains a menace to the world's biggest economy...But until America's mortgage monster is brought to heel, the task of making finance safer will remain only half-done." What could be worse? Let's ask Olympic swimmer Ryan Lochte, who lost every one of his sponsors yesterday. Before I go any further, there is a correction to yesterday's commentary regarding the due date for bids on servicing that MIAC is selling. (...MIAC's $1.5 billion FNMA and FHLMC mortgage servicing portfolio with an optional co-issue opportunity totaling $50 to $100 million per month. The portfolio is being offered by a mortgage company that originates loans with a national geographic concentration...) Bids are due on August 24th, not the 28th...
Read more Comments are closed

Bank of America Won’t Have To pay $1.2 Billion For Countrywide’s “Hustle” Mortgage Scam

Nearly eight years after Bank of America bailed out Countrywide Financial, a federal appeals court has ruled that BofA should not have been held liable for Countrywide’s “Hustle” scam in which the company sold Fannie Mae and Freddie Mac a ton of poorly underwritten mortgages knowing that they were worthless. Before Countrywide’s disastrous collapse, it sought to approve and resell as many mortgages as possible, so the lender launched a program it dubbed the High Speed Swim Lane (or HSSL, or Hustle) that effectively removed all the regular underwriting roadblocks in the mortgage approval process. “Move forward, never backward,” was the directive, meaning trained underwriters sometimes never even saw mortgage applications. Instead, according to the Justice Department, loan review was handed off to mere processors who “were previously considered unqualified even to answer questions.” Billions of dollars in Hustle loans were sold off to Fannie Mae and Freddie Mac before anyone realized that...
Read more Comments are closed

Nearly 6 million still owe more on mortgages than their homes are worth

Five years after the housing recovery began, 5.9 million borrowers still owe more on their mortgages than their homes are worth. The so-called negative equity rate in the U.S. is falling, now at 12 percent of all mortgaged homeowners, according to Zillow, down from more than 14 percent a year ago and more than 30 percent at the worst of the crisis. The numbers, however, are still well above normal levels and equally spread across urban and suburban communities.  It would seem like negative equity should have evaporated by now, given how fast home prices have been rising. Several metropolitan markets have even reached new record highs in median home prices, but it hasn't been enough to lift all borrowers. img7-1 "At its worst, negative equity touched all kinds of homeowners in all kinds of markets," said Zillow's chief economist, Svenja Gudell. "The type of...
Read more Comments are closed