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HomeCaroline Herron’s Lawsuit Targets Fannie Mae’s Mismanagement of Mortgage Modification Program
Posted by Larry Doyle on August 11th, 2010 7:17 AM |
Have executives at Fannie Mae worked to benefit their own financial interests versus promoting the well being of American taxpayers and homeowners looking to permanently modify their mortgages? Is Fannie Mae merely a perpetual train wreck or has something even more nefarious gone on inside the halls of our national stepchild?
In recently reviewing The Center for Public Integrity, I was not shocked — but certainly dismayed — to read Whistleblower: Fannie Mae Bungled HAMP Anti-Foreclosure Program,
Fannie Mae executives bungled their stewardship of the federal government’s massive foreclosure-prevention campaign, creating a bureaucratic muddle characterized by “mismanagement and gross waste of public funds,” according to a whistleblower lawsuit by a former Fannie Mae executive and consultant. (more…)
Mortgage Servicers Are Hugely Conflicted
Posted by Larry Doyle on July 23rd, 2010 12:57 PM |
Information is everything. Those who control the information have immense power. The allegiances of those in control of the info obviously have an enormous impact on how the information is processed and dispensed. The potential for conflicts of interest are significant. Standard business fare, correct? Have these conflicts played out on Wall Street? All too often. How so?
I have repeatedly highlighted the conflicts within our financial regulatory structure. We also know that the credit rating agencies have been enormously conflicted. Anywhere else? Let’s enter the world of mortgage servicing, ….. (more…)
Protecting Yourself Against Mortgage Fraud
Posted by Larry Doyle on June 18th, 2010 9:20 AM |
Financial distress leaves people increasingly vulnerable to financial predators and resulting financial scams and fraud. With homeowners increasingly underwater on their mortgages, the scum in our society are diligently pursuing and perpetrating their vile works. Homeowners looking to modify their mortgages or otherwise investigating avenues of financial assistance need to be exceptionally careful at this point in time.
What should homeowners do? I would highlight two recommended paths. In my local paper this morning were rules of the road to Avoid Becoming a Victim of Fraud:
According to an FBI advisory, these are steps to take to avoid becoming the victim of mortgage fraud: (more…)
Sense on Cents Repeats, ‘The Most Critical Economic Statistic’
Posted by Larry Doyle on May 19th, 2010 2:49 PM |
Economic progress? Green shoots (remember those)? Improving fundamentals? Stop it.
I remain an eternal and enthusiastic optimist, but I hold particular contempt for those in our media and our markets who will neither look for nor embrace the truth.
In my opinion, America has allowed itself to be numbed by those in Washington who put forth snapshots of economic data with little regard for the big picture. The financial media enables the Washington ‘facade’ under the guise ‘if we don’t highlight the truth, perhaps we can avoid it.’
Life does not work that way. (more…)
Lew Ranieri: Housing Recovery Is Years Away
Posted by Larry Doyle on April 29th, 2010 3:34 PM |
Despite all reports to the contrary, markets in general and housing in particular are ultimately a function of supply and demand. On that note, why isn’t the housing market poised to truly do better anytime soon? The overhang of housing supply due to ongoing strategic mortgage defaults is increasing. These strategic mortgage defaults are much more a factor in the prime-Jumbo market segment than the conforming or sub-prime mortgage market. (more…)
Do Not Wait to Refinance
Posted by Larry Doyle on April 1st, 2010 11:30 AM |
If you are in a position to refinance your mortgage, I would not wait. Why?
The largest buy program in the history of the U.S. mortgage market just ended yesterday. That program, part of the Federal Reserve’s quantitative easing, purchased $1.25 trillion in mortgage-backed securities. In the process, the Fed brought mortgage rates down somewhere in the vicinity of .50% to a full 1% from where they would likely otherwise be. (more…)
Gaming Uncle Sam’s Mortgage Modification Program
Posted by Larry Doyle on March 31st, 2010 11:08 AM |
A new release by the SIGTARP (Office of the Special Inspector General for the Troubled Asset Relief Program) is exceptionally enlightening in detailing how a likely significant percentage of those homeowners who entered the trial mortgage modification process gamed the system.
Once again, major high five to our friends at 12th Street Capital for sharing this report and providing insightful commentary. As 12th Street points out this morning:
With all of the hoopla surrounding the government and Bank of America announcements to push principal forgiveness to the top of the waterfall for mortgage modification triage, it would have been easy to miss the latest report from the SIGTARP (Special Inspector General of TARP). I have attached the report here and would encourage you to print it out and read it. (more…)
Housing Plans Promote Long, Slow Decline
Posted by senseoncents on February 26th, 2010 9:32 AM |
Why do I remain overall bearish on housing?
All reports to the contrary, the pace of delinquencies will continue to steadily pressure housing — especially in selected markets.
While the Obama administration is dogged by the issues within housing, I continue to believe that their approach is more exacerbating the situation than improving it. What is the crux of the problem within housing? The law of unintended consequences which changes the behaviors of some, given the engagement with others.
Bloomberg provides some insights on Obama’s new proposals toward housing in writing, Obama May Prohibit Home-Loan Foreclosures Without Preview:
The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program. (more…)
