Under the latest settlement, Bank of America must allocate a minimum of $2.15 billion to principal reduction. Loan modifications will result in “numerous homeowners no longer being underwater on their mortgages and finally having substantial equity in their homes,” the Justice Department said in a press release.
But there’s little reason to expect that more than a few underwater Bank of America homeowners will receive a loan reduction. That’s because the nation’s top housing regulator continues to refuse to allow write-downs on loans controlled by Fannie Mae and Freddie Mac — the vast majority of outstanding mortgage debt. In the past, Bank of America has chosen to offer big write-offs to relatively few homeowners with expensive mortgages, rather than give principal reductions to a larger number of homeowners with smaller loans.
Two leaders of the Federal Housing Finance Agency, which regulates Fannie and Freddie, have refused to allow write-downs. Former FHFA acting director Edward DeMarco said reducing loan principal would encourage other borrowers to intentionally default, so they, too, could take advantage of a reduction. DeMarco stuck to this “moral hazard” argument, even though independent studies found that writing off debt would save taxpayer money, because fewer people would default.
(Reuters) – Goldman Sachs Group Inc could pay about $1.1 billion to settle claims from the U.S. housing finance regulator that it sold bad mortgage-backed securities (MBS), the Financial Times reported.
Negotiations between Goldman and the Federal Housing Finance Agency (FHFA) could be concluded as early as next week, the business daily reported, citing people familiar with the matter. (http://on.ft.com/1q2eaOS)
The proposed amount would be almost double of what the Wall Street bank paid to the Securities and Exchange Commission in 2010 over similar issues. (http://reut.rs/1t0fepd)
Goldman and FHFA were not immediately available for comment.
Goldman and Morgan Stanley are also in preliminary discussions with the U.S. Department of Justice about settling allegations that they mis-sold MBS, the British newspaper reported, citing three people with knowledge about the issue.
The whole corruption case has turned into a real soap opera. I kid you not. I have a friend who is keeping up with this trial. I gave up on this case to keep up with it. Now, McDonnell is claiming that he and his wife were having marriage problems and denied quid pro quo. Love this cartoon pic:
Here the latest of the case from Washington Post:
Former Virginia governor Robert F. McDonnell (R) and his wife, Maureen, are battling a 14-count public corruption indictment that alleges that they lent the prestige of the governor’s office to a Richmond area businessman and that, in exchange, the businessman lavished them with gifts and money.
Nothing has changed from the banksters. Still submitting fraudulent documents in the county recorder offices. Check this out. This is an email that I received from Virginia of Deadly Clear website. Thanks Virginia!:
Another one to follow – thought you’d find interesting.
Begin forwarded message:
From: Tim Morell <email@example.com>
Date: August 21, 2014 9:08:58 AM HST
To: Tim Morell <firstname.lastname@example.org>
Subject: assignment of mortgage but not the note…
Here is a not your typical MERS type assignment of mortgage. This is a situation where Citimortgage originally was the holder of the note and filed suit for foreclosure in 2013. The borrower got a successful modification. He started the process with Citi, but Citi advised him that a new servicer would be taking over: FIC Lender Services LLC.
One thing led to another and the client received copies of assignments of the mortgage first from CIti to Ameriquest and then from Ameriquest to US Home Ownership LLC. (that one is below).
We then got a letter from US Home Ownership that included a contract where it stated that it was now our lender pursuant to this assignment. My client signed it and began making his payments.
Now… here’s the weird part… Citimortgage is proceeding on the original foreclosure. They say that they have the original note and are therefore entitled to enforce it…
(Reuters) – Citigroup Inc has been sending hedge fund firms letters informing them that it cannot sell investments in hedge funds and private-equity funds to clients after a deal with the Securities and Exchange Commission, the Wall Street Journal reported.
The bank this month reached a $285 million fraud settlement with the regulator over a complaint concerning a 2007 sale of mortgage-linked securities debt that caused more than $700 million of investor losses.
Citigroup said in the letter to hedge fund firms that it was working with the SEC to resolve the issue, the newspaper reported. (http://on.wsj.com/1p0VwSD)
However, the bank is allowed to sell private investments to large institutions, the Journal said.
Well, did or didn’t Officer Wilson have a eye injury?… I posted yesterday from an article from a source that stated an eye injury was suffered by Officer Wilson. I honestly don’t believe the journalist know how extensive Mr. Wilson’s injuries were if those injuries are serious. We have to wait until the grand jury findings. Now, CNN has debunked yesterday’s story.
See video from Crooks and Liars:
CNN, CNN Newsroom With Brooke Baldwin, Aug. 21, 2014. Don Lemon tells host Brooke Baldwin and guest Nancy Grace that his sources close to the investigation of the shooting of Michael Brown by officer Darren Wilson told him that Wilson’s x-rays came back negative for a fractured eye socket, but he did have a swollen face.
(WZZM)—A mortgage servicing company accused of bad business practices in West Michigan has been subpoenaed by the federal government.
Federal investigators are calling on Ocwen Financial to provide certain documents about the company’s relations with four affiliated companies. The subpoena follows a similar demand from New York regulators.
The issue is whether Ocwen is enriching itself at the expense of homeowners by funneling foreclosure related business to them. The head of the company is a part-owner of both Ocwen and one of the other companies which provides mandated homeowner’s insurance and other services after foreclosure. It’s alleged that company, Altisource, has made as much as $65 million a year from Ocwen forced foreclosures.
Investors concerned about this and revised lower operating numbers from the first quarter have also filed a class action lawsuit. The investigations, lawsuits and increased media coverage including WZZM 13’s Watchdog reports may have help lead to a 55 percent drop in stock prices.
If you have problems with Ocwen, there may not be immediate help, but you can visit the Michigan Attorney General’s website to file a complaint.
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