Daily Archives: November 24, 2014

FHFA Keeps Size Of Loans For Fannie, Freddie Steady

Law360, New York (November 24, 2014, 5:00 PM ET) — The Federal Housing Finance Agency on Monday announced that the maximum loan that Fannie Mae and Freddie Mac can guarantee in 2015 will remain, for the most part, unchanged from this year.

The FHFA, which serves as both conservator for the two bailed-out government-sponsored enterprises and their regulator, said that Fannie Mae and Freddie Mac will be able to guarantee mortgages valued as high as $417,000 in most counties around the United States. The so-called conforming loan limit will go up in 46 states where housing…

Source: Law360

Foreclosure timelines in California, Nevada stay lengthy

A client note from Moody’s Investors Service says that foreclosure timelines for private-label residential mortgage-backed securities loans backed by properties in California and Nevada, two non-judicial foreclosure states, will remain lengthy over the next year until gradually starting to decline in early 2016.

Analysts with Moody’s cite two main reasons:

  • procedural scrutiny on foreclosures as a result of Homeowner Bill of Rights laws are extending the amount of time that properties are in foreclosure
  • repeat foreclosure filings are keeping servicers occupied with legacy foreclosure issues

Analysts say that the lengthy timelines are credit negative for private-label RMBS because more than 21% of all properties backing seriously delinquent loans are in the two states – 19% in California and 2% in Nevada.

“The number of loans backed by properties in foreclosure in both states will begin to decline as servicers complete the foreclosure process for aged loans and move on to newer cases with fewer loan documentation issues,” Moody’s says. “The improving economy will also help reduce the number of new foreclosure filings. We expect timelines to gradually reach the 400-450 day range in both states, down from 500-530 days in California and 700-750 days in Nevada currently.

Read on.

MassMutual Senior Vice President Found Dead, Stabbed In Chest In Apparent Homicide

SIMSBURY, Conn. —Family and friends of a Massachusetts insurance executive found stabbed to death in Connecticut this week gathered Sunday to hold a vigil in her memory.

Melissa Millan, 54, was found stabbed in the chest on Iron Horse Boulevard in Simsbury, Connecticut, Thursday, according to police.

Watch NewsCenter 5’s report

Millan, a mother of two, was a senior vice president at MassMutual in Springfield. A spokesman for the company said she was a tremendous leader and deeply caring and that she would be missed.

Passing motorists found Millan lying on the ground Thursday at 8:04 p.m., according to Simsbury police.

Read on.

Citigroup to pay $15 million for analyst supervision lapses – FINRA

(Reuters) – A unit of Citigroup Inc (>> Citigroup Inc) must pay a $15 million (10 million pound) fine for not adequately supervising communications among its equity research analysts, clients and the firm’s sales and trading staff, Wall Street’s industry funded regulator said on Monday.

The supervision lapses at Citigroup Global Markets Inc, which occurred between January 2005 and February 2014, included an instance in which the firm allowed one of its analysts to participate indirectly in two of its initiatives to promote clients’ initial public offerings to investors, the Financial Industry Regulatory Authority said.

Citigroup, which settled the allegations with FINRA, neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

Read on.

Fannie Mae partners with Detroit to demolish foreclosed homes

Fannie Mae is partnering with the city of Detroit to rehabilitate or demolish a number of vacant Fannie-owned foreclosures in the city, as part of an effort to aid in the stabilization of some the city’s neighborhoods hardest hit by foreclosures.

In what the parties are calling an “initial transaction,” Fannie announced that it will sell 44 foreclosed properties to the Detroit Land Bank Authority “for a nominal fee,” and contribute funds for the demolition of some of the properties.

Read on.

Los Angeles Times wonders whether Fannie Mae are softening in their hard stance against principal reduction

LA Times:

On Friday, the Coronels, now living on Social Security and Jaime’s pension as a union laborer, will throw a party to celebrate another Fannie Mae concession that lets them buy back their home for $280,000, far less than the $400,000-plus debt that had gone into default. The effect of the deal was to reduce the principal owed by the Mexican immigrants, enabling them to qualify for a new mortgage.

The go-ahead for the indirect reduction appears to mark a shift for Fannie Mae, which with its brother mortgage company, Freddie Mac, required a federal bailout in 2008.

Shrinking the mortgage amount that a homeowner owes has been done often in recent years to help underwater borrowers with loans not backed by Fannie and Freddie, in cases where foreclosing would be more costly for the lender or investors in the loan.

But in the six years since Congress created the Federal Housing Finance Agency to oversee Fannie and Freddie, the agency has never included mortgage principal reduction on its list of approved techniques to help homeowners in distress.

 On a side note: I looked up Jaime and Juana Coronel’s property on the Los Angeles recorder office website and here is what I found. In June 2010, The Coronels received a Notice of Default by Recontrust  in the behalf of Bank of America. Then, there was a substitution trustee filed in June 2010. Then, a trustee sale was filed in September 2010. Then, the property was sold to Fannie Mae in October 2010. But, what is interesting is that in October 2014, Assignment of Rents was recorded where now rental homes are securitized and sold on Wall Street. Here are the details from the Los Angeles recorders office website:

Number Date Type Grantors Grantees
20100768107 2010-06-07 NOTICE DEFAULT CORONEL JAIME R
CORONEL JUANA V
20100806059 2010-06-14 SUBSTITUTION TRUSTEE CORONEL JAIME R RECONTRUST COMPANY
CORONEL JUANA V BAC HOME LOANS SERVICING LP
CORONEL JAIME R BAC HOME LOANS SERVICING LP
CORONEL JUANA V RECONTRUST COMPANY
MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC
MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC
20101281228 2010-09-13 NOTICE OF TRUSTEES SALE CORONEL JAIME R
CORONEL JUANA V
20101486668 2010-10-19 ASSIGNMENT TRUST DEED BAC HOME LOANS SERVICING LP FEDERAL NATIONAL MORTGAGE ASSOCIATION
CORONEL JAIME R
CORONEL JUANA V
COUNTRYWIDE HOME LOANS SERVICING LP
20101486669 2010-10-19 TRUSTEES DEED RECONTRUST COMPANY TRUSTEE FEDERAL NATIONAL MORTGAGE ASSOCIATION
CORONEL JUANA V
CORONEL JAIME R
20101537530 2010-10-27 SUBSTITUTION TRUSTEE HFTA CORPORATION HFTA CORPORATION
TRANSAMERICA FINANCIAL SERVICES
CORONEL JAIME R
CORONEL JUANA V
20110589853 2011-04-25 COURT ACTION LIEN CORONEL JAIME JESUS LOS ANGELES COUNTY COURT TRUSTEE
20141147916 2014-10-30 ASSIGNMENT OF RENTS CORONEL JAIME R NEW AMERICAN FUNDING
CORONEL JAIME R NEW AMERICAN FUNDING
CORONEL JUANA V BROKER SOLUTIONS INC
CORONEL JUANA V BROKER SOLUTIONS INC
RAMIREZ ALFREDO
RAMIREZ ALFREDO
VELASCO MARIA R
VELASCO MARIA R

A Memorial to Her Son, Until the Bank of America Got in the Way

In this episode, the Haggler abandons his usual droll introduction, despite knowing how much readers appreciate a little lead-in drollery. But it doesn’t seem appropriate for a story that is so sad.

Q. My son, Michael Truskowski, passed away on Nov. 14, 2013, in San Francisco, after a brief and violent illness, caused by a rare genetic mutation that no one knew he had. He was 27.

Like a lot of young people, Mike died intestate. Unlike many young people, he listened to his mother and opened a 401(k) and a Roth IRA when he started working. He also left money in two accounts in Bank of America.

We started a foundation at Mike’s alma mater and intended to donate savings from all these accounts to a scholarship fund that will support students with an interest in music, one of Mike’s passions. Easier said than done.

I first contacted Bank of America, where Mike had a total of $7,500, last December. I was directed to the estates department, which took down information and asked if I could bring the paperwork — death certificate and my ID — to a local branch. I did so the following day. A customer service rep assured me that she would fax the information to estates.

After hearing nothing, I followed up a week later. A rep in the estates department said it had never received the needed information. I sent it again. This repertoire of calls, lost information and constant recounting of facts continued for months.

It wasn’t until March that B of A asked for documents that I didn’t have, including a New Jersey tax form and a tax ID. (Mike grew up in New Jersey, and the account was opened there.) In utter frustration, I called the lawyer I had retained in California for help. He contacted Bank of America twice. Both times, he was assured that we would soon receive a check.

Months later, we have nothing.

Read on.