Mortgages

January 22, 2009 -- WASHINGTON, DC - In testimony before the House Judiciary Committee, AARP today charged that the Treasury Department “has largely ignored Congress’ directive to facilitate mortgage modifications” and called on Congress to provide “average homeowners with the same rights and opportunities to protect their primary assets in bankruptcy that corporations, investors, farmers and others have relied on for many years.”    » read more »

August 12, 2008 -- West Virginia Attorney General Darrell McGraw filed suit today against Countrywide Financial Corporation, Countrywide Home Loans, Inc., Countrywide Home Loans Servicing, LP, Full Spectrum Lending, Inc. and Angelo R. Mozilo, individually and as CEO of Countrywide Financial Corporation.

Countrywide made loans to West Virginia consumers on terms that were unaffordable and unconscionable. These loans exposed consumers to foreclosure and loss of their homes. Countrywide also used unfair and deceptive acts or practices to make loans and service loans.

For example, Countrywide induced consumers to take out adjustable rate mortgages that offered a teaser rate for the first 2-5 years, but then reset at a much higher, unaffordable rate.    » read more »

More Than 500,000 Calls To Consumers On "Do Not Call" List

August 12, 2008 -- Harrisburg - Pennsylvania Attorney General Tom Corbett announced that consumer protection lawsuits have been filed against two business owners and their companies, who are accused of violating Pennsylvania's "Do Not Call" law and other consumer protection statutes.

The companies, based in Baltimore, Maryland, and State College, Pennsylvania, are accused of using illegal telephone solicitations to aggressively market mortgage products to consumers - including what Corbett alleges is the largest-ever systematic effort to violate the Do Not Call program since it was created in 2002.    » read more »

CHARLOTTE, N.C., July 1, 2008 -- Bank of America Corporation today completed its purchase of Countrywide Financial Corp. to create the nation's leading mortgage originator and servicer. Bank of America will focus on responsible home lending, serving as a reliable source of mortgages for the American consumer. Bank of America also will assist new and existing customers with selecting the right product to meet their needs.    » read more »

Defendants Allegedly Violated Consumer Protection, Civil Racketeering Acts

June 17, 2008 -- TRENTON -- New Jersey Attorney General Anne Milgram filed mortgage fraud lawsuits against 36 defendants charging consumer fraud and civil racketeering by various mortgage brokers, real estate entities and others throughout New Jersey.    » read more »

Legislation Backed By Schwarzenegger Administration Signed Into Law Today In Washington

06/17/2008 -- Today the Heroes Earnings Assistance and Relief Tax Act of 2008, the "HEART Act," was signed into law by President Bush. Actively pushed by California Governor Arnold Schwarzenegger and the California Department of Veterans Affairs, this legislation makes veterans who entered active military duty after December 31, 1976 eligible to apply for Qualified Veterans Mortgage Bonds (QVMB) under the state's longstanding CalVet Home Loan Program.    » read more »

6/16/2008 - WASHINGTON (AFPN) -- Many home owners have found it difficult recently to pay their mortgages, but quick intervention by loan counselors at the Department of Veterans Affairs has actually reduced the number of veterans defaulting on their home loans.

"VA is reaching out to veterans, both those who use our home-loan guaranty program and those who don't take advantage of our guaranties, to keep people in their homes," said Secretary of Veterans Affairs Dr. James B. Peake. "I'm proud of our solid record of success in helping veterans and active-duty personnel deal with financial crises."    » read more »

June 12, 2008 -- Washington, DC – U.S. Senator Barbara Boxer (D-CA) today sent a letter to Federal Housing Administration (FHA) Commissioner Brian Montgomery, urging him to reconsider his recommendation that Congress reduce FHA loan limits from $729,750 to $550,000.

Boxer pointed out that the lower loan limits would reduce access to affordable loans to residents of 99 high cost counties across 18 states and the District of Columbia, including 23 counties in California alone.

The text of the letter follows:

June 12, 2008
The Honorable Brian Montgomery
Commissioner
Federal Housing Administration

Department of Housing and Urban Development
451 7th Street, S.W.
Washington, DC 20410

Dear Commissioner Montgomery:    » read more »

May 30, 2008 -- SAN DIEGO -- California Attorney General Edmund G. Brown Jr. today announced that Theodore Swain, 60, was sentenced this morning to 24 years in state prison for running a $7 million Ponzi scheme that ripped off 100 investors in Southern California.

“This is the fourth time Swain has been caught ripping people off with his worthless investment schemes,” Attorney General Brown said. “Most recently, he convinced 99 consumers, including a doctor, lawyer and aerospace engineer, to invest tens of thousands of dollars in property which does not exist."

Today, the Honorable Judge Charles Gill sentenced Theodore Swain to 24 years in state prison and ordered him to pay $6.7 million in victim restitution.    » read more »

5/27/2008 -- "Today, the respected Case-Shiller index reported that housing prices declined by a record 14.1% in the first quarter of 2008. This is further evidence of the deepening crisis in our housing market, which is forcing millions of families out of their homes and eroding the value of most families' single largest asset.

Hillary Clinton with supporters: Photo by Librandi & Congdon (CC)    » read more »

May 23, 2008 -- COLUMBUS – The Ohio Attorney General’s Office, which has been prosecuting a securities class action case against American International Group, Inc. (AIG) and 22 other defendants for more than three years, announced its intention to add claims relating to AIG’s recent multi-billion dollar write-downs stemming from its exposure to problems in the residential housing market.    » read more »

May 22, 2008 -- SAN DIEGO -- California Attorney General Brown today shut down a team of scam artists that acquired deeds to hundreds of homes in foreclosure by convincing desperate consumers to place their property in a “land grant,” a phony and worthless real estate document.

Federal Land Grant Company—a San Diego-based business run by Bill Hutchings, his wife Xiaoke Li and former wife Shawna Landis—tricked desperate homeowners into believing that they could protect their homes from foreclosure by deeding their property to “federal land grants.” Land grant transfers, used hundreds of years ago when the United States was still acquiring land from other countries, are no longer recognized by any court or county assessor.    » read more »

May 09, 2008 -- "Working people applaud the bipartisan effort by the U.S. House of Representatives to help struggling homeowners retain their piece of the American dream. This bill is an important step toward keeping millions of struggling families from losing everything they have worked for all their lives.

President Bush’s threat to veto this legislation is both inhumane and dangerously short-sighted. The funds in this legislation are an investment in healthy communities, vibrant neighborhoods and a stable economy.    » read more »

May 8, 2008 -- Washington, D.C. – Speaker Nancy Pelosi released the following statement today after the House approved comprehensive bipartisan legislation to address the housing foreclosure crisis:

“The New Direction Congress acted today to protect the American Dream of homeownership with a comprehensive package of housing policy reforms that will help protect families facing foreclosure and stem the continuing drop in home values around the country.    » read more »

Legislation Headed to House Floor

May 8, 2008 -- Chicago – Illinois Attorney General Lisa Madigan, State Representative Marlow Colvin (D-33rd) and State Senator Jacqueline Collins (D-16th) have initiated new legislation to assist struggling homeowners to help save their homes. The measure, introduced as the Homeowner’s Rights Act (HB 838) by Rep. Colvin and set to be sponsored in the Senate by Sen. Collins, was voted out of house committee Wednesday and, if passed, will amend the Illinois Mortgage Foreclosure Law.    » read more »