Daily Archives: March 3, 2013


Homeowners: Real Estate Site Lists False Foreclosures

Homeowners: Real Estate Site Lists False Foreclosures

Experts say it’s unlikely homeowners who find a “false foreclosure” on any online website will see negative ramifications to their credit record

For a homeowner who says she has never missed a mortgage payment, the word “foreclosure” listed next to her Sycamore home shocked Kristin Miller.

Miller said she recently found the false foreclosure listing on Zillow, the wildly popular website where consumers turn for information on home values, price histories and foreclosures.

“We were very worried when we saw it,” she said. “The first thing my husband said is we better run our credit to make sure it has not been affected.”

Her concern isn’t unique. Online forums offer dozens of angry homeowners complaining about false foreclosure listings on the site.

“My jaw totally dropped,” said Cassandra Jo Terry.

The North Carolina woman said she has lived trouble-free in her house for decades and was stunned to see the “F” word next to her listing.

“It is not in foreclosure at this time nor has it ever been at the point of foreclosure,” she said.

How does it happen? Zillow gets its information from public records, and public records are notoriously inaccurate. That much explains why the company’s home value estimates are sometimes way off. But how does something as specific — and potentially damaging — as a foreclosure get into the system?

Zillow refused to name its sources, the companies it hires to aggregate data. That makes a frustrating mistake even harder for homeowners to disprove.

Source: http://www.nbcchicago.com/investigations/zillow-false-foreclosures-193738151.html#ixzz2MWDJxK95


Foreclosure on 92-year-old widow is reversed

Foreclosure on 92-year-old widow is reversed

WASHINGTON — Jeanette Ogle, a 92-year-old widow with a reverse mortgage on her house, got a huge birthday surprise last week: She did not lose her home at a scheduled foreclosure auction that had drawn scrutiny from federal and state agencies and consumer advocates.

Because of obscure federal rules that critics say have snared unwitting elderly 
homeowners across the country, Ogle’s home in Lake Havasu City, Ariz., had been set for foreclosure on Feb. 27, her birthday. But after interventions on her behalf by the federal Consumer Financial Protection Bureau, AARP and the Arizona attorney general’s office, the auction was canceled.

In a letter to Ogle, the company that ordered the foreclosure, Reverse Mortgage Solutions Inc. of Spring, Texas, said it changed its plans and is now “committed to allow you to remain in ⅛your⅜ home” and will “take no action to displace you as long as the mortgage agreement … is not in default.”

– See more at: http://bostonherald.com/business/real_estate/2013/03/foreclosure_on_92_year_old_widow_is_reversed#sthash.N29NQBd7.dpuf


Congress to take two-week vacation on March 22, even though the country’s money runs out on March 27

Congress to take two-week vacation on March 22, even though the country’s money runs out on March 27

  • Congress has worked in session just 23 days of last 60
  • Average American receives an average of 15 vacation days and 10 public holidays per year
  • President Obama said the upcoming $85 billion budget cut signed on Friday will mean ‘hundreds of thousands of jobs lost’

As the American people brace themselves for an $85 billion budget cut over the next 10 months Congress is eying a two-week vacation starting March 22, just five days before the nation’s funds runs dry.

According to the Library of Congress’ calendar, the 113th Congress has worked just 23 days of the 60 days since the 112th Congress’ conclusion, one widely known on record now as having been the least productive of them all according to a recent summary of their work.

This weekend the House embarks on a three-day weekend, with a four-day weekend planned for the following week before the start of their two-week vacation to follow, the Atlantic reports.

Read more: http://www.dailymail.co.uk/news/article-2287212/Sequester-Congress-week-vacation-March-22-money-runs-March-27.html#ixzz2MSH0Lexc 
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Good times roll again…for some: Inside the first Goldman Sachs partners’ dinner in SIX YEARS as lavish parties return for bankers

Good times roll again…for some: Inside the first Goldman Sachs partners’ dinner in SIX YEARS as lavish parties return for bankers

  • Prior to the global economic meltdown Goldman Sachs were renowned for it’s lavish gala dinners for it most profitable bankers
  • Goldman hosted its first event since the crash last month
  • It was a lavish affair with 450 bankers and their partners flown in from around the world to attend
  • Earlier this year the investment bank posted a $2.9 billion quarterly profit

Dust of your tuxedos and ballgowns because the good times are back once again – or at least for employees at Goldman Sachs.

Prior to the global economic meltdown in 2007, the investment bank’s annual dinners were lavish affairs when the banking behemoth spoiled its most profitable bankers and their partners.

These parties were mothballed following the financial crisis when many banks were bailed out using taxpayer’s dollars and bankers were encouraged to show some modesty and not flaunt their massive bonuses while other people were having their homes repossessed.

Read more: http://www.dailymail.co.uk/news/article-2287265/Let-good-times-roll-Lavish-parties-bankers-Goldman-Sachs-spoils-executives-night-excess.html#ixzz2MSFx4zwW 
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New York Fed agreed to testify for Bank of America (secret agreement)

TWO weeks ago, I wrote a column about a secret agreement struck in July 2012 by the Federal Reserve Bank of New York and Bank of America. The existence of the confidential deal was disclosed recently in court filings, which showed the New York Fed releasing Bank of America from all fraud claims on mortgage securities the Fed had bought as part of the government’s rescue of the American International Group in 2008.

A.I.G., which is suing Bank of America to recover losses it suffered on those securities, has calculated the value of the fraud claims at $7 billion.

Late on Thursday, a copy of the actual agreement came to light. It was filed by Bank of America in a California court that is hearing the matter of who owns those fraud claims — A.I.G. or the New York Fed. The agreement was also filed by the New York Fed in a related lawsuit in the Southern District of New York, where the New York Fed asked that the court keep the agreement under seal.

A reading of the document makes it clear why.

The agreement spells out the terms of a deal in which the New York Fed received $43 million from Bank of America’s Countrywide unit. The money changed hands to settle a narrow dispute involving cash flows on several mortgage securities held by an investment vehicle, known as Maiden Lane II. That vehicle was created by the New York Fed as part of the rescue of A.I.G., which had held the Countrywide securities. The previously confidential agreement released Bank of America from all litigation claims on the securities held by Maiden Lane II.

But in exchange for that $43 million, the New York Fed did something else for Bank of America. It agreed to testify on behalf of the bank in its legal battle against A.I.G. over fraud claims.

Read on.


WASHINGTON — The Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board today released amendments to their enforcement actions against 13 mortgage servicers for deficient practices inmortgage loan servicing and foreclosure processing.  The amendments require the servicers to provide $9.3 billion in payments and other assistance to borrowers.

The amendments memorialize agreements in principle announced in January with Aurora, Bank of America,Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.  The amount includes $3.6 billion in cash payments and $5.7 billion in other assistance to borrowers such as loan modifications and forgiveness of deficiency judgments.

Borrowers covered by the amendments include 4.2 million people whose homes were in any stage of theforeclosure process in 2009 or 2010 and whose mortgages were serviced by one of the companies listed above.  These borrowers are expected to be contacted by the Paying Agent—Rust Consulting, Inc.—by the end of March 2013 with payment details.  The Paying Agent will send payments and correspondence.

Borrowers covered by the amendments are expected to receive compensation ranging from hundreds of dollars up to $125,000.  Borrowers are not required to take any additional steps to receive the payments.  In addition, borrowers will not be required to execute a waiver of any legal claims they may have against their servicer as a condition for receiving payment.

Borrowers can call the Paying Agent at 1-888-952-9105 to update their contact information or to verify that they are covered by the amendments.

In providing the $5.7 billion in assistance, the 13 servicers are expected to undertake well-structured loss mitigation efforts focused on foreclosure prevention, with preference given to activities designed to keep borrowers in their homes through affordable, sustainable, and meaningful home preservation actions.

Borrowers seeking assistance should work directly with their servicer or a counselor approved by the U.S. Department of Housing and Urban Development (HUD).  Borrowers can reach HUD-approved counselors by calling 888-995-HOPE (4673).

OCC and Federal Reserve examiners continue to monitor the servicers’ implementation of corrective actions required by the original enforcement actions to address unsafe and unsound mortgage servicing andforeclosure practices.

For the 13 servicers, these amendments to the enforcement actions replace the requirements related to the Independent Foreclosure Review.  For GMAC Mortgage, Everbank, and OneWest, which did not enter agreements in principle with federal regulators, the Independent Foreclosure Review process continues.  Regulators expect the reviews for these servicers to be completed over the course of the coming year.  These companies service 457,000 mortgages that were in some stage of foreclosure in 2009 or 2010.


SOURCE: http://www.occ.gov