As Greek Prime Minister Antonis Samaras’ coalition government plans to recapitalize the country’s banks with a $64 billion injection, it is also going to freeze home foreclosures in 2013, but has offered beleaguered consumers no help, although many can’t pay consumer loans because of a series of pay cuts, tax hikes and slashed pensions.
Development Minister Costis Hatzidakis unveiled a proposal to the Hellenic Bank Association which provides for a grace period of four years on mortgage loans, with borrowers being allowed to pay only a fixed rate of 1.5 percent and repossessions and auctions halted for next year. The amount of the loan repayment cannot exceed 30 percent of a borrower’s monthly income.
But while the plan provides help for homeowners, it does nothing for those who rent and who are buried under consumer loans and credit cards they can’t pay. Already, more than 25 percent of Greeks have stopped paying banks but many are still being hounded anyway.
Austerity measures imposed by the government on the orders of international lenders have put nearly two million people out of work and closed 68,000 businesses, with scores of thousands more teetering on the brink of bankruptcy.
This is NY Attorney General’s second lawsuit against a bank regarding mortgage-backed securities under Martin Act. JP Morgan Chase-Bear Stearns is the first to be sued.
Lawsuit Charges Credit Suisse Misrepresented Loan Quality Review Process, Deceived Investors & Contributed To Mortgage Crisis
Continued Legal Action by State-Federal Residential Mortgage-Backed Securities Working Group
Schneiderman: Credit Suisse RMBS Trusts Incurred Billions In Losses And Will Be Held Accountable
Wells Fargo & Co. (WFC), the biggest U.S. home lender, must face a lawsuit that accuses the bank of overcharging veterans under a federal loan-refinancing program, a judge ruled.
U.S. District Judge Amy Totenberg in Atlanta denied Wells Fargo’s bid to dismiss the complaint filed against the bank by two mortgage brokers, saying their allegations are “plausible and sufficient,” according to a decision filed yesterday.
he plaintiffs “have made factually specific allegations regarding mechanics of defendant’s routine practice of creating false documents and making false statements to the VA in order to obtain guarantees on loans,” Totenberg wrote.
Wells Fargo and other lenders were accused in an amended complain filed last year of defrauding veterans and the U.S. out of millions of dollars under a U.S. Department of Veterans Affairs loan refinancing program. The lenders overcharged veterans and concealed their conduct from the government to obtain guarantees for the loans, according to the filing. The mortgage brokers, Victor Bibby and Brian Donnelly, filed the complaint as whistle-blowers.
The nation’s largest mortgage company may finally be bending to public pressure. A St. Paul homeowner has scored a pair of victories against Freddie Mac that have allowed her to stay in her foreclosed home, but only after being misled in a move that’s called “dual tracking.”
Caylin Crawford’s problems began when she had a snowboarding accident and wasn’t able to work for a few months. Without the income, she realized she would have trouble making her monthly mortgage payments. U.S. Bank was the originator of her mortgage and Freddie Mac had purchased it on the secondary market. She called U.S. Bank and explained her situation. A U.S. Bank representative told her she could probably qualify for a HAMP (Home Affordable Modification Program) loan but she had to stop making payments, which she did.
While negotiations were in progress, U.S. Bank sent a letter on Oct 11, 2011 stating they would not proceed with foreclosure. But eight days later she got a notice saying her home would be sold at a sheriff’s auction.
The practice is called “dual tracking” and has been used against other Twin Cites homeowners by other lenders such as Citibank.
A picture tells a thousand words. But look how much mortgage relief money for short sales vs. loan modification were doled out by the banks. And I wonder how many of those short sales were owned by the banks vs. owned by investors:
Remember the infamous robosigner Linda Green and the investigatative report of foreclosure fraud reported by 60Minutes last year? Well, the head of the company that created fraudulent documents for the banks to foreclose on many homeowners got an early Christmas gift: The head of DocX is indicted and appeared in court today.
The $25 billion National Mortgage Settlement signed in February was supposed to right the wrongs exposed in the robo-signing scandal and provide relief to homeowners, with a focus on making mortgages more affordable by reducing how much borrowers owe. In a new report from Joe Smith, the settlement’s monitor, one number jumps out: About half the payouts so far are being used to clear troubled mortgages but aren’t keeping people in their homes.
Banks have provided homeowners $20 billion in relief since March. Of that amount, 49 percent has gone to forgive debts in short sales, whereby a bank lets a borrower sell his or her home for less than the outstanding balance on the mortgage. Banks have waived an average of $115,672 in unpaid principal balances in 113,534 short sales. Typically, a short sale is better for a borrower than a foreclosure, but it still means homeowners ultimately lose their houses.
Bank of America (BAC), JPMorgan Chase, (JPM) and Wells Fargo (WFC) leaned most heavily on short sales.
Wells Fargo & Co. ($32.40 0.46%) wants a Department of Justice case over losses on mortgage loans insured by the Federal Housing Administration dismissed for violating the statute of limitations and for reiterating claims already made in a now settled case.
The case is a civil fraud action brought by the U.S. Attorney for the Southern District of New York against Wells Fargo for the alleged reckless underwriting of loans written from May 2001 through Oct. 2005.