Daily Archives: February 20, 2016

California foreclosure-relief program to get hundreds of millions in new funding

A California program intended to prevent home foreclosures that was expected to shut down next year is instead being expanded and extended following a new influx of federal funding.

Keep Your Home California, which already had been awarded nearly $2 billion, will receive up to  $463.5 million in additional federal money to aid troubled borrowers.

The program has assisted 54,010 California homeowners as of Sept. 30, according to the U.S. Treasury Department.

Treasury announced the increase Friday as part of a $2-billion expansion of its Hardest Hit Fund, which launched in 2010 and earmarked $7.6 billion to 18 states and the District of Columbia.

Read on.

Judge dismisses most of former employee’s suit against Wells Fargo

A federal judge approved Wednesday the dismissal of several claims in a lawsuit filed against Wells Fargo & Co. by a former employee.

Judge William Osteen Jr., of the Middle District of N.C., dismissed the second amended complaint by George Hartzman of Greensboro except for a retaliation claim as it relates to the federal Sarbanes-Oxley Act and his claim to be a whistleblower.

Hartzman, serving as his own attorney, claims to have raised “federal criminal concerns” to internal channels and sent emails to top executives, including chairman and chief executive John Stumpf.

Hartzman worked for Wells Fargo as a financial adviser from 1993 until he was fired Oct. 8, 2012. According to the filing, he received warnings in March 2012 and July 2012 to stop his activities.

Read on.

 

Fannie Mae at risk of needing a bailout

Here we go again…

Fannie Mae, the state-sponsored U.S. mortgage backer, is at risk of needing a government bailout that could shake confidence in the housing finance market, senior officials have warned.

Fannie Mae’s chief executive and its regulator are sounding the alarm on a decline in the institution’s capital cushion, which is on course to vanish in 2018, when it would have to ask the US Treasury for emergency funds.

Their warnings highlight Washington’s inaction on housing policy and its failure to reform the institution, which guarantees nearly $3 trillion of securities and enables 30-year fixed rate loans, following the last financial crisis.

Read on.