Posted on 10/08/2013 8:43:53 AM PDT by whitedog57
According to Kate Berry at American Banker, “The nation’s four largest banks are holding $57 billion of seriously delinquent loans that they’ve been slow to move into foreclosure over concerns that the Federal Housing Administration, the government mortgage insurer, will refuse to cover the losses and hit them with damages, according to industry sources.”
The FHA insures home loans issued by banks and other mortgage lenders to low-income and first-time home buyers. Those buyers pay the FHA insurance premiums to cover potential losses. In the event that an FHA-backed loan goes into foreclosure, the lender has the right to file a claim for reimbursement of losses.
However, the FHA’s guarantee does not apply if lenders are found to have violated underwriting or servicing standards, or to have engaged in misconduct. Banks can also be held liable for treble damages under the False Claims Act if they are found to have “falsely certified” that mortgages met all FHA requirements.
Slow to move loans to foreclosure? I thought that is what housing advocates and attorney generals like California’s AG Kamala Harris have been pushing?
According to the LPS August Mortgage Monitor, the average days delinquent for foreclosure has reach … 895 days!!!!
foectime
Which state have the largest foreclosure pipeline? Housing activist friendly states like New York, New Jersey, Hawaii, Massachusetts, and Oregon. Even though California has a relatively low pipeline (compared to New York), it has risen 68% since Q4 2012.
prrationy
Clearly, housing activist states account for some of the delay in foreclosure processing. So before we jump to conclusions, let’s all take a deep breath and remember that government policies (HAMP, HARP, AG Settlements, etc) were intended to delay foreclosures.
But if DOJ and FHA combine to fine FHA lenders, I predict that there will be a whole lot less FHA lenders in the future.
So, take this loan and eat it.
70384439_ba1fd5b9de
How exactly does one get out from under an underwater mortgage? What if you want to move and your mortgage is more than the current market price? I am all for keeping my promises, but does it mean I have to just live here forever?
I know of a local guy who left his house keys and $500 on the bar in a local joint where Tony Soprano-types hang out. They take care of your....er.....problem for you.
Of course he’s in prison now.
Short sale of your house. Make sure you get a waiver from the bank of any shortfall.
I’m sorry, but wasn’t it banks handing out mortgages to people who should never have been given said mortgage; but, they were because of govt. intervention, the cause of the gigantic melt-down of 2008? So, Bozo and his co-horts have NOT learned the lesson?
DEMS GETTING READY TO CASH-IN BIGTIME?: Obama says it’s time to ‘turn the page’ on Fannie and Freddie
MarketWatch | 7/24/13 | FR Posted by illiac
Obama's speech on the US economy spelled out the beginning of the end for federally-controlled mortgage buyers Fannie Mae and Freddie Mac. “We’ll work with both parties to turn the page on Fannie and Freddie, and build a housing finance system that’s rock-solid for future generations,” Obama said, according to a copy of his prepared remarks
The House Financial Services Committee approved a bill in July that would get rid of the firms in five years, to be replaced by a National Mortgage Market Utility to help "securitize" mortgages. (Excerpt) more at blogs.marketwatch.com
NOTE WELL---what Obama left out of his remarks Wall Street Journal report on page A15---article entitled “Treasury’s Fannie Mae Heist“.
WSJ: The Federal government is seizing the substantial profits of the government-chartered mortgage firms, Fannie Mae and Freddie Mac, taking for itself the property and potential gains of private investors the government induced to help prop up these companies. This conduct is intolerable.” A scathing article follows--a must read.
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ANOTHER POSSIBILITY IS A HOLDER COVER-UP for the massive mtge fraud perpetrated by the Congressional Hispanic Caucus (O's gotta show "he cares" ---b/c he's paranoid about getting latino votes). More below.
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FANNIE-MAE--THE DEMOCRATS' CRIMINAL ENTERPRISE / By Michelle Malkin
Fannie/Freddie are centerpieces of the criminal enterprise called the Democrat Party-—where Dem cronies and collaborators loot the organization, get cushy jobs, bonuses, and the like.
Fannie Mae’s political machine dispensed campaign contributions, gave jobs to friends and relatives of legislators, hired armies of lobbyists (even paying lobbyists not to lobby against it), paid academics who wrote papers validating the home ownership mania, and spread “charitable” contributions to housing advocates across the congressional map.
Fannie Mae serves as an industrial-sized patronage factory — sharing profits with political allies, spreading taxpayer funds to voting blocs——like ethnic groups-——and doling out jobsto left-wing academics, Washington has-beens and back-scratching buddies.
Obama insider Fannie Mae exec Jim Johnson got sweetheart loans from shady subprime Countrywide. Pols raked in six-figure salaries as F/F engaged in Enron-style accounting, plunged into debt and helped usher in the subprime housing meltdown through cockamamie lending practices.
Bill Clinton appointed Franklin Raines, Daley and Rahm Emanuel just as the quasi-governmental F/M engaged in rampant book-cooking so that F/M insider could help themselves to massive bonuses.
The Chi/Tribune exposed how political whore Rahm Emanuel’s “profitable stint” was low-show w/ no work involved. Emanuel was not even assigned to committees, according to company proxy statements. Immediately upon joining the board, Emanuel and other insiders qualified for $380,000 in stock and options plus a $20,000 annual fee, public records indicate. W/ Wall Street Rahm Emanuel at F/M, accounting tricks were used to mislead shareholders about outsize profits F/M reaped from risky investments.
The goal was to cook the books to keep fraudulent earnings on the books, to make Freddie Mac look profitable on paper-——AND to fraudulently obtain humongous annual bonuses for Dem political insiders.
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SUB-PRIME MORTGAGE SCAMS--MASSIVE LATINO MORTGAGE FRAUD ON CAPITOL HILL:
The Congressional Hispanic Institute, Inc, is an entity organized by Cong Joe Baca (D-Cali) in his capacity as head of the Congressional Hispanic Caucus.
Cong Baca created "HOGAR" (Spanish for home) in 2003 to work with the mortgage industry, F/M, lenders, banks and latino community groups to increase mortgage lending to what savvy observers consider to be unqualified Latinos.
"HOGAR" colluded w/ Cong Baca in what was to become a massive bilking of taxpayers. Cong Baca calculatedly hyped the fact that the national Latino homeownership rate was 47%, compared with 68% for the overall population.
HOGAR was coached to call the figure "alarming," and to say "a concerted effort was required to ensure that by the end of the decade Latinos will share equally in the American Dream of home ownership."
HOGAR and Cong Baca conned the public, failing to note that most of the "dreamers" were illegals, citizens of Third World countries who had violated US borders.
Predictably, HOGAR colluded w/ co-conspirators which included:
(a) shaky mortgage companies that ran into big trouble;
(b) Fannie Mae and Freddie Mac, both now under federal control after billions in taxpayer bailouts;
(c) Countrywide Financial Corp., sold to Bank of America Corp;
(d) Washington Mutual Inc., taken over by the US government and sold to J.P. Morgan Chase & Co.; and,
(e) New Century Financial Corp. and Ameriquest Mortgage Corp, both now defunct, killed by defaulted subprime Latino mortgages.
HOGAR's ties to the subprime mortgage industry were substantial. Bribery and self-dealing were rampant:
<><> Companies that donated $150,000 to Cong Baca got the right to have their own research fellow who would conduct fraudulent studies, which were cunningly used by industry lobbyists to pump lending.
<><> Bribery and extortion in the form of $100,000 annual donations to Cong Baca, for which HOGAR provided phony news releases from Cong Baca's Hispanic Caucus promoting a lender's commercial products to the Latino market,
<><> The most shocking example of bribery well-substantitated by Hogar's literature..... HOGAR announced it worked with Freddie Mac on a self-serving two-year examination of Latino homeownership in 63 congressional districts.
The "study" found Hispanic ownership on the rise thanks to "new flexible mortgage loan products" that the industry was adopting at the urging of Cong Baca's collusive coterie.
<><> HOGAR conned lenders into even more lenient down-payment and underwriting standards.
<><> As the subprime debacle unfolded, HOGAR declined repeated requests for comment despite the economic havoc their activities precipitated.
The mortgage schemes demonstrated the criminal activities of border violators with multiple identities---perhaps violent, terrorist-connected foreigners---colluding and conspiring to defraud private companies and public entities. And mortgage racketeering enterprises which employed sub rosa finance and business practices to carry out deceptions and frauds.
The alleged ring of swindlers---a Congresman, individuals with multiple identities, banks, insurance companies, mortgage brokers--might be charged with cheating the US govt, taxpayers and bank share holders out of hundreds of millions of dollars via an elaborate web of mortgage and bank frauds.
The mortgage Dreamers used multiple phony identities, fraudulent Social Security numbers, purchased from identity forgers in order to obtain govt-subsidized benefits.
L/E will find that individuals with multiple identities obtained fraudulent mortgages then flipped the houses at ever-higher prices to family member who then absconded to foreign countries, sticking banks (and taxpayers) with hundreds of millions in fraudulent mortgages.
BACKGROUND A Wall Street Journal investigative report related that, according to the Federal Financial Institutions Examination Council examination of the borrowing spree, uncovered financial schemes by low-income housing groups, Hispanic lawmakers, a congressional Hispanic housing initiative, mortgage lenders and brokers, all colluding in fraduent schemes to increase homeownership among Latinos with forged documents which enabled massive fraud.
This was not simply the mortgage market at work. It was fueled by avarice, greed, and Congressional enabling fraudulent practices. In 2005 alone, mortgages to Hispanics jumped by 29%; Latinos with multiple fraudulent identities in low-paying jobs obtained subprime mortgages for prime properties---soaring to 169%.
(Research provided by Wall Street Journal. Some material excerpted from the NY Times).
And they are really going to agree to that if I just ask?
Happens all the time,especially if you live in a non-recourse state.
Exactly how soon will the next round of foreclosures hit us when people are mandated to pay for Obamacare & cannot pay their mortgage payments any more?
What state are you in , who is your lender and when was the loan taken out?
Exactly how soon will the next round of foreclosures hit us when people are mandated to pay for Obamacare & cannot pay their mortgage payments any more?
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Oh it’s coming.. a possible foreclosure 2-3 years down the road doesn’t win against paying for food and putting gas in the car so you can go to your 28hr/wk. pt job...
If you are seriously contemplating /needing to do this consult a Realtor who has the CDPE qualification.( Go here) CDPE
Be aware that the shortfall between what you sell your house for and the mortgage outstanding is considered by the IRS as " Forgiveness of Indebtedness Income" and normally considered income for tax purposes. Congress has waived that provision of the code until the end of 2013, it may or may not renew that in the new budget - if and when we get one.
RI, BofA, and I refied about 2 years ago.
I don't think they are going to let me out of it just because I want to live more frugally. I can afford the house as long as I am working at my current job, but I would rather be saving for retirement.
Yeah, I am definitely not going to get it together that soon. I am really just trying to find out what my options are. I would just like to live more frugally, and instead I have to keep paying for too much house.
Thanks for the link. I learned a few things there.
Sorry , if the loan was mid-2007 or earlier I could help... talk to a real estate lawyer ,, find out what you can be held liable for before you make any plans ...
Personally I think we’re going to have high==>hyper inflation within 1-2 years ,,, if you can hold on til then whatever your monthly payment is will seem puny ... equal to maybe what a typical McDonalds lunch will cost then.
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