Mortgages

4/9/2008 -- After weeks of ignoring and downplaying my calls for action, the Bush Administration is finally acknowledging the need to help more struggling families restructure their mortgages and stay in their homes. But their proposal today simply underscores how out-of-touch they are with the magnitude of our economic challenges.

George W. Bush: Photo by Talk Radio News Service (CC)    » read more »

April 7, 2008 -- WASHINGTON, DC-Today, U.S. Senator Bob Casey (D-PA) introduced an amendment to the Truth in Lending Act to combat mortgage fraud and prevent “house flipping schemes.” The amendment, introduced with the support of Senator Mel Martinez (R-FL), would require a second independent appraisal for high-risk, high interest mortgages.

“A disturbing byproduct of the increased rates of foreclosures is unscrupulous individuals trying to profit from other people’s losses,” said Senator Casey. “Stopping these flipping schemes will help give confidence to those buying homes that appraisals on their new homes are accurate and won’t come back to haunt them later.”    » read more »

Deceptive Tactics Sent Five Homeowners into Foreclosure

April 8 , 2008 -- Chicago – Illinois Attorney General Lisa Madigan filed a lawsuit late yesterday against a Chicago-based mortgage rescue fraud firm for allegedly violating the Consumer Fraud and Deceptive Business Practices Act for activities that have caused at least five homeowners to lose their homes to foreclosure.    » read more »

“Reward The Perpetrator, Blame The Victim”: A Compromise Not Worthy Of Celebration

April 07, 2008 -- WASHINGTON, DC—“This legislation—source of much high-fiving and back-patting in Congress—is a slap in the face to homeowners and taxpayers. It’s both revealing and disappointing to see what Republican and Democratic members of the U.S. Senate could and could not agree on:

“They could not agree that bankruptcy judges should be empowered to adjust mortgage rates to aid struggling homeowners. In fact, they could not come up with a single proactive measure to stem the flood of foreclosures.    » read more »

4.7.08 - Columbus, Ohio - Ohio Governor Ted Strickland today announced that nine mortgage loan servicers agreed to sign a “Compact to Help Ohioans Preserve Homeownership,” the first agreement of its kind in the nation.

In a Governor’s Office ceremony this morning, executives from six mortgage loan servicers signed a document pledging that they will work with the state in making every possible attempt to prevent default loans and foreclosures in Ohio.

Foreclosed shanty: Photo by Sharyn Morrow (CC)

Executives from three other companies mailed signed copies.    » read more »

April 3, 2008 -- LANSING - Michigan Governor Jennifer M. Granholm today signed a 13-bill package that will help protect Michigan consumers from mortgage fraud and unfair lending practices by requiring the state's estimated 20,000 mortgage loan officers to register with the state's Office of Financial Services (OFIS).

House for sale sign: Photo by mrbill (CC)    » read more »

April 03, 2008 -- BOSTON – A Dorchester mortgage broker was arraigned in Suffolk Superior Court yesterday afternoon on multiple charges in connection with her alleged fraudulent activity in securing subprime mortgages for several unqualified home buyers. Nicole Lyder, age 33, was arrested on Tuesday evening on unrelated charges in Norfolk County. Late last month, she was indicted by a Suffolk Grand Jury. Lyder is charged with forgery (6 counts), uttering (6 counts), making or publishing false or exaggerated statements (4 counts), and larceny of credit by false pretenses (5 counts).    » read more »

General Treasurer asks Senate Judiciary Committee to support legislation to shield renters from subprime fallout, preserve quality of life in RI neighborhoods

PROVIDENCE -- 4/1/08 -- Rhode Island General Treasurer Frank Caprio testified before the Senate Judiciary committee this afternoon in support of legislation he has proposed to protect Rhode Island renters from becoming the next wave of victims in the subprime mortgage crisis. In addition to leaving many homeowners struggling with mortgages they cannot afford, the collapse of the subprime mortgage market has devastated many renters who are being left without a home because their landlords were unable to avoid foreclosure.    » read more »

04/02/2008 -- California Governor Arnold Schwarzenegger today sent a letter to key Congressional leaders urging the permanent increase of federal loan limits, which can help reduce home foreclosures and give more Californians the opportunity to experience homeownership. A Conference Committee comprised of members of the Senate Committee on Banking, Housing and Urban Affairs and House Committee on Financial Services continues to negotiate a final conference report on the Federal Housing Administration Modernization Act.

A house on blocks in Los Angeles: Photo by Ross McLain (CC)    » read more »

State housing authority and lenders join forces to offer new tools to help families save homes

LANSING – Michigan Governor Jennifer M. Granholm today signed legislation aimed at preserving the American dream of homeownership for Michigan families in jeopardy of losing their homes to foreclosure.

The governor was joined today by lenders from the Michigan Credit Union League, the Michigan Bankers Association, and sponsoring legislators from across the state for bill signings in Grand Rapids, Jackson, and Detroit.    » read more »

April 1, 2008 -- WASHINGTON, DC—Today, Senator Edward M. Kennedy released the following statement on the Foreclosure Prevention Act.

“A record number of Americans are now facing mortgage payment delinquencies and possible foreclosures. Losing their home can be the ultimate insult, and that became a very real possibility for millions of families affected by the current housing crisis.

Foreclosure bus tours in San Diego, California: Photo by Cory Doctorow (CC)

Over the next two years, 36,000 homes in Massachusetts are expected to go into foreclosure, and with 2 million are expected to be foreclosed nationally. The outlook is bleak.    » read more »

April 1, 2008 -- JEFFERSON CITY - Missouri Governor Matt Blunt today commended the House of Representatives for their work on legislation he called for to protect Missouri families from fraudulent mortgage practices.

“Homeownership is one of the greatest opportunities for personal wealth and savings, but unscrupulous mortgage lenders are turning the dream of homeownership into a nightmare for some Missouri families,” Gov. Blunt said. “I commend the House for taking action to protect Missouri homeowners from deceitful lending practices.”

The bill, sponsored by Rep. David Pearce, creates civil and criminal penalties for mortgage fraud and further enhances consumer knowledge about the mortgage process. The legislation:    » read more »

Federal money will be used to expand current foreclosure prevention counseling; Marquette Financial Companies adds $500,000 grant

April 1, 2008 -- Saint Paul – With more Minnesota homeowners potentially facing foreclosure this year, Minnesota Governor Tim Pawlenty today announced that foreclosure prevention counseling in the state will be greatly expanded through a $4.3 million federal grant, the second-largest such grant made to any state. In addition, Marquette Financial Companies is providing the state a $500,000 grant for foreclosure prevention deferred loans.    » read more »

April 01, 2008 -- BOSTON – Massachusetts Attorney General Martha Coakley’s Office obtained a preliminary injunction late yesterday in a case against Lehi Mortgage Services, Inc. (“Lehi Mortgage”), a mortgage broker that allegedly fraudulently procured mortgage loans by submitting to lenders asset and income information for loan applicants that was fabricated or inflated.

For sale: (Photo: CC David Neubert)    » read more »

April 01, 2008 -- BOSTON – Massachusetts Attorney General Martha Coakley’s Office has obtained an expanded preliminary injunction order against Fremont Investment & Loan (“Fremont”). This expanded preliminary injunction was issued by Judge Ralph D. Gants in Suffolk Superior Court on March 31, 2008, and prohibits Fremont from assigning or selling Massachusetts loans owned by Fremont, or the servicing obligations on those loans, unless the buyer agrees in writing to be bound by the obligations set forth in the Court’s Preliminary Injunction issued February 25, 2008.    » read more »