Daily Archives: June 23, 2013

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UCI professor overseeing the national mortgage settlement in California urges changes to lessen families’ risk of losing homes

UCI professor overseeing the national mortgage settlement in California urges changes to lessen families’ risk of losing homes

Despite recent state and national laws meant to protect consumers, flaws persist in the foreclosure process that are putting borrowers at risk of losing their homes, said the UC Irvine law professor who’s overseeing the California portion of a nationwide settlement with big banks.

A report issued this week by professor Katherine Porter proposes several changes in the way banks deal with homeowners in default on loans. Porter was appointed as monitor by California Attorney General Kamala Harris.

Welcome Back Linda Green! Arizona homeowners losing their homes to foreclosure through forged documents

 “Don’t misunderstand me. I’m not being sympathetic with fraudulent handling of documents. What I am explaining to you is that the fact that there is a fraudulent document may or may not mean that the foreclosure is wrongful.”–Arizona Attorney General Horne answered to ABC15 Investigators as to why the laws against forgery and fraud don’t seem to apply equally.

Watch the shocking words that came out of AG Horne’s mouth!

PHOENIX – Thousands of Arizona families have lost their homes to illegal foreclosures.

Illegal foreclosures are based on forged, faked and phony documents.

According to Arizona Attorney General Tom Horne, “There’s been a major, really major effort to clean up that situation.”

But that’s not what we found.

The ABC15 Investigators spoke to victims and their attorneys who say bogus documents are still being used to put people out of their homes right here in the Valley.

We wanted to know why laws that make it a crime to submit forged documents in court don’t apply to those who are using phony records to foreclose on Arizona families.

A VALLEY COP AND A DEVOTED MOTHER FINDS FORGED DOCUMENTS

Gabriella Westfall has served her community as a police officer for more than 25 years.

She says she contacted Horne’s office when she discovered that forged documents were being used in an effort to throw her out of her home.

“I contacted the AG to say, ‘Look, I’m a victim,’ but I have not heard from anybody in the attorney general’s office,” Westfall said.
Read more: http://www.abc15.com/dpp/news/local_news/investigations/arizona-homeowners-losing-their-homes-to-foreclosure-through-forged-documents#ixzz2Wzp9AxhE

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FHA wants authority to transfer loan servicing to prevent risk of losses

FHA wants authority to transfer loan servicing to prevent risk of losses

The Federal Housing Adminstration wants Congressional authority to transfer an FHA-insured mortgage to another servicing shop whenever a loan poses a threat to FHA’s mutual mortgage insurance fund.

The plan, which FHA Commissioner Carol Galante proposed inwritten testimony before the Senate Committee on Appropriations, comes with a few inherent risks – namely the risk that Ginnie Mae could be adversely impacted by sudden transfers of FHA-insured loans underlying Ginnie Maesecurities, said K&L Gates attorneys Laurence Platt and Kathryn M. Baugher, who issued a report on the proposal.

The attorneys explained in a research note, “The risk of FHA forcing a transfer of servicing may dilute the value of the contract right to service, because the servicer may be forced into a distressed sale, particularly if the required time period for the transfer is short.”