Daily Archives: October 23, 2012

DeMarco Shrinks Fannie-Freddie Without Help From Congress

The man with power over more than half of U.S. mortgages lives in a 1961 brick split-level house. There’s a basketball hoop in the driveway and a green Subaru Outback in the carport. The homes on Edward J. DeMarco’s block are so close that neighbors see into each other’s windows.

This surprised several dozen demonstrators, one in a vampire costume, who arrived at DeMarco’s residence in a middle- class Washington suburb last month to demand he quit his job as acting director of the Federal Housing Finance Agency.

“My home is better-looking than this,” said Catrese Tucker, a Massachusetts toll collector whose property is in foreclosure. “I don’t believe this is his home.”

Read on.

BANK OF AMERICA MORTGAGE MODIFICATION SAVES HOMEOWNER $1.61 A MONTH! (VIDEO)

“It has to be a Halloween joke. They have got to be kidding. $1.61?” Smith said. “I mean they wasted more on postage and FedEx than what I am getting as a reduction.”

Yes, only $1.61.

GMAC Bankruptcy Borrowers’s Committee…..MOTION DENIED!

The Court has approved two stalking horse purchase agreements: one with Nationstar
Mortgage LLC as the stalking horse bidder for the sale of the Debtors’ “mortgage loan
origination and servicing businesses” (the “Platform Sale”); the other with Berkshire Hathaway
Inc. as the stalking horse bidder for the sale of Debtors’ “legacy” portfolio “consisting mainly of
mortgage loans and other residual financial assets” (the “Legacy Sale” and together with the
Platform Sale, the “Asset Sales”). Id. ¶ 7. Both the Platform Sale and the Legacy Sale are
subject to higher and better offers. An auction is currently scheduled for October 23 and 24,
2012. Assuming successful auction sales, it will likely be many months before the Platform Sale
closes. In order to maximize value for the estate, the Debtors have emphasized the importance of
conducting “business as usual” as the sales process moves forward.
Recognizing the challenges in operating in chapter 11 and conducting a large loan
servicing business subject to the additional constraints imposed by the Debtors’ FRB and DOJ
settlements, the Debtors filed a motion for approval of the Supplemental Servicing Order. The
Order addresses important issues, such as how the automatic stay would apply in any state or
federal court actions in which the Debtors seek to foreclose on mortgages they own or service.
While the Court approved the Supplemental Servicing Order, approval was granted after
numerous objections were resolved or overruled. Counsel for homeowners raised important
issues about that motion, bringing to bear the important perspectives of consumers that were not
otherwise raised by any other parties in interest.

BankruptcyCommittee

Source: Matt Weidner

What Romney is doing about housing behind the scenes

The final presidential debate on foreign policy Monday night avoided the topic of housing altogether. But it seems presidential contender Mitt Romney is diligently doing his ‘housing policy’ homework behind the scenes.

Ty Jenkins, founder and CEO of compliance solutions provider DocuTech, sat down with HousingWire Monday to discuss his recent role as coordinator for a Mortgage Banking Industry Leadership Roundtable that Mitt Romney attended to learn more about issues impacting the industry.

As for what Romney wanted to know? The roundtable, which included 25 mortgage industry leaders, discussed everything from the qualified mortgage rule under the Dodd-Frank Act to the Consumer Financial Protection Bureau, as well as the future of Fannie Mae and Freddie Mac.

“He’s trying to understand why the housing market is not taking off,” Jenkins said of Romney’s roundtable visit. “Our answer to him was – tell us what the rules are.” He added that the overall message to policy makers is simple: “If you want to pass legislation, don’t pass open-ended legislation.”

Jenkins said the presidential contender learned more about the industry’s concerns in regards to the qualified mortgage rule for determining ability to repay, which remains largely undefined.

Apparently, Governor Romney reached out to the group, so he could prepare for the debates and remain atop of issues impacting the industry. However, to date, there has been only one significant mention of the qualified mortgage rule at the debates.

Source: Housingwire

DOJ Lanny Breuer in London: “the strongest deterrent against corporate wrongdoing is the prospect of prison time.”

PA Montgomery County Registar of Deeds vs. MERS: Mortgage assignments be recorded, right to bring quiet title action

Read more from NBCnews.com.

Barney Frank cries foul in NY AG’s lawsuit against JPMorgan

WASHINGTON, Oct 22 (Reuters) – Democratic Congressman Barney Frank defended the largest U.S. bank on Monday, saying in a statement that the government was wrong to go after JPMorgan Chase & Co for the alleged misdeeds of Bear Stearns.

Frank, who served as chairman of the House Financial Services Committee during the Bear Stearns acquisition, said federal and state officials should reconsider holding financial firms liable for the wrongdoing of institutions they absorbed at the government’s urging.

“The decision now to prosecute J.P. Morgan Chase because of activities undertaken by Bear Stearns before the takeover unfortunately fits the description of allowing no good deed to go unpunished,” said Frank, who was also the co-author of the 2010 Dodd-Frank financial reform law.

Read on.