Daily Archives: February 20, 2013

H.R. 189 | To prohibit Fannie Mae, Freddie Mac, and Ginnie Mae from owning or guaranteeing any mortgage that is assigned to the MERS or mortgagee of record

After the expiration of the period under subparagraph (C), MERS shall not be the named mortgagee or mortgagee of record on any mortgage owned,

Click to access BILLS-113hr189ih.pdf



Single Mother and Disabled Vet Fights CitiMortgage Foreclosure, Insists She Made Payments

Single Mother and Disabled Vet Fights CitiMortgage Foreclosure, Insists She Made Payments

“Ms. Howard, we see the problem,” she said. “That’s what they’ve been telling me since 2010.”

Single mom, and disabled military veteran Anita Howard only thought her biggest battles were behind her. She’s now drowning in a sea of paperwork and debt she didn’t know she had, and doesn’t believe she should. 

Her dining room table, covered in files, the number would rival any attorneys documentation of a case. Bank statements from 2009 documenting her payment history on her home’s mortgage, laying out a case in black and white when she’s stuck solidly in the gray.

“I paid them my loan every month, and it is anarchy on my loan,” she said.

In 2010, Howard initiated a loan modification with CitiMortgage, and that’s when her problems began. According to Howard, during the loan modification period, she was told payments weren’t to be made. However, she did make them, just to be safe, and Citi told her that money would be put into an account and applied to future payments on principal, interest and escrow.

“I should have one loan payment going in and applied,” she said. “I have all this activity on my loan, it’s like a cash register.”

Possible Financial Mismanagement?

For example, the account holding money to be paid on her mortgage, only accessible by Citi, showed withdrawals to pay construction companies and miscellaneous expenses. 

One statement shows the payment being made to a home siding company, but Howard’s home is brick. No siding was ever installed or purchased. A different copy of the same statement, sent to Howard by Citi, shows that same payment on the same day going to a completely different company. Howard said she has never heard of either of the entities.

“It has been emotionally and financially devastating,” she said. “This is embezzlement. Someone is stealing my money. And there’s no controls, there’s no accountability. No one is standing up for the consumer.” 

Another instance of financial mismanagement, according to CitiMortgage, another department within the bank’s infrastructure had reversed four of Howard’s mortgage payments. That money never was credited to her checking account, and it was never applied to her mortgage. 

“I don’t know why those payments were reversed. It was only mentioned to me in August of 2012 that they had been reversed in October 2010,” she said. “I didn’t need them to reverse the payments. I was making the payments. I still haven’t gotten an answer on why that happened.”


Oregon pilot program aids underwater borrowers

Oregon pilot program aids underwater borrowers

The U.S. Department of Treasury approved an Oregon pilot program under the Hardest Hit Fund to assist underwater homeowners in Multnomah County (incorporates Portland) to refinance their mortgages.

The pilot program is based on Senator Jeff Merkley’s proposal titled, “The 4% Mortgage: Rebuilding American Homeownership.” The proposal would allow underwater homeowners that are current on their mortgages a chance to refinance to a lower interest rate.

Oregon will pilot the program using $10 million of the $220 million from the Hardest Hit Fund, members at the Oregon Housing and Community Services told HousingWire. 


Former Deutsche Bank Trader Describes Difficulties in Tokyo’s Rates Market

Former Deutsche Bank Trader Describes Difficulties in Tokyo’s Rates Market

TOKYO – One particularly tough trading day in the summer of 2007, Eddy Takata, then a derivatives trader with Deutsche Bank in Tokyo, threw up his arms in frustration and shouted, “Manipulation!”

A major interest rate had again moved in favor of a rival trader at UBS, a relative newcomer to Tokyo named Tom Hayes. The handful of traders battling it out in the Tokyo market had started to sense Mr. Hayes was rewarded a little too often for his oversize risks, according to a book by Mr. Tanaka published on Tuesday.

Mr. Hayes is now a central figure in a global investigation into rate manipulation. American authorities have accused him of colluding with rivals as part of a vast conspiracy to report false rates to bolster earnings.


Homeowners confront Wells Fargo over foreclosures

Homeowners confront Wells Fargo over foreclosures

Following a series of such protests at its branches in Richmond and Oakland in recent weeks, Wells Fargo last week invited more than 8,500 of its mortgage clients to a workshop the bank said was meant to help borrowers keep their homes.

Tanya Dennis, one of the residents that protested at Wells Fargo’s branch in Oakland’s Fruitvale area last week, said community organizers had realized that banks were less likely to sell the foreclosed homes if the residents had community support.

“The banks do not listen to you as an individual, but as a group, you’re powerful and I am living proof of that,” Dennis said. Dennis’ home was foreclosed on upon in 2010, but she was able to keep her home  after she refused to move out and negotiated with the bank, she said.

Read the rest of the story and see the video by Tawanda Kanhema at Oakland North.


Disgruntled Bank of America Customer Video Features Members of Eminem’s Detroit Crew “D12”- Banking Bad

Disgruntled Bank of America Customer Video Features Members of Eminem’s Detroit Crew “D12”- Banking Bad

The newest BankingBad™ YouTube Channel Video features the Bank of America home loan story of Musician Dave Nichols who fights the bank to save his home from what he claims was an interest rate error. Dave known by his rap name Nichol9 raps on a new song titled “I Told You So” with 3 members of Eminem’s Detroit crew D12 and “I told You So” provides a potent soundtrack for the new Banking Bad “BOA” video.

The BankingBad™ YouTube Channel just released a new video asking Bank of America to correct an alleged bank error on one of their customer’s home loans. This particular bank customer happened to be an aspiring musician who has just recorded a new single with members of Eminem’s renowned Detroit rap crew D12. The new song titled “I Told You So” serves as the backdrop of this unique consumer advocate video created by director De Veau Dunn for the Banking Bad YouTube Channel. The video is also a current topic of discussion in the new Banking Bad Forum for disgruntled banking customers.


Bad US mortgage loans now big business on Wall Street

Bad US mortgage loans now big business on Wall Street

Feb 19 (IFR) – Delinquent and defaulting mortgage loans to struggling US borrowers have become bigbusiness on Wall Street, as investors scoop up bondsbacked by non-performing loans (NPLs).

With millions of borrowers still under water or facing foreclosure, real estate investment trusts (REITs) and others are snapping up NPLs at a discount, hoping to earn returns from their eventual resolution or liquidation.

And the more value that can be extracted from each loan, the better the returns – which means it is in the interest of investors to work with troubled borrowers to find solutions.