Citi Reportedly Ready To Pay $7 Billion For Selling Shoddy Mortgages

Citi Reportedly Ready To Pay $7 Billion For Selling Shoddy Mortgages

A half-decade on from the collapse of the housing bubble, it looks like the Justice Dept. and Citigroup may have finally reached a deal that will have the bank forking over several billion dollars to close the book on allegations that it sold off a large number of worthless mortgages in the lead-up to the 2008 crash. [More]

Bank Of America May Pay At Least Another $12 Billion For Mortgage-Related Hijinks

Bank Of America May Pay At Least Another $12 Billion For Mortgage-Related Hijinks

Bank of America has already agreed to mortgage meltdown-related settlements totaling more than $50 billion, so what’s another dozen or so billion dollars heaped on top of that pile? That’s the latest figure being thrown about in the seemingly never-ending series of complaints and settlements tied to the bank’s bad behavior in the home loan business. [More]

Don't worry about former Bank of America CEO Ken Lewis, because he probably doesn't worry about you.

On 5-Year Anniversary Of Mortgage Meltdown, Those Responsible Are Doing Just Fine

On Sept. 15, 2008, Lehman Brothers became the largest bankruptcy filing in the history of this country. It was the first domino of many to fall, followed by the likes of Bear Stearns, Merrill Lynch, Countrywide, Wachovia, Washington Mutual, and many other banks and investment firms that had bet too much money on the subprime mortgage market, only to have it collapse when people realized many of those bad loans would never be repaid. These events ripped apart the American economy and left people out of work for extended periods of time. But not most of the bankers responsible for the mess. [More]

Man Commits Suicide After Years Of Fighting Wachovia & Wells Fargo Over Mortgage Mess-Up

Man Commits Suicide After Years Of Fighting Wachovia & Wells Fargo Over Mortgage Mess-Up

We’ve written some incredibly sad stories about homeowners trapped in the mortgage meltdown maze, and this one certainly ranks up there among the most depressing. Not just because a man is dead, but because it could have all been prevented more than three years ago. [More]

How A Professional Financial Planner Lost His House

How A Professional Financial Planner Lost His House

I’ve always been fascinated by the old expression, “The Cobbler’s children have no shoes.” It refers to a person who is so concentrated on using their specific skill set to take care of others’ needs that they ignore their own. Carl Richards is a professional financial planner, a guy who people paid to manage their money. He shares how while in the middle of telling people what to do with their cash, he ended up buying way more house than he could afford and ended it up losing it all. It may be a long time before he and his wife can be homeowners again. [More]

New Wave Of Mortgage Defaults On Horizon

New Wave Of Mortgage Defaults On Horizon

Some of the crappiest mortgages ever made were issued in 2006, and right now those 5-year introductory teaser periods are expiring. That’s leading to a 300% increase in monthly payments for already strapped borrowers, and it’s what’s driving the first increase in delinquent mortgages since 2009, a banking expert tells Credit.com. [More]

Drone Helicopters Used To Sell High End Real Estate

Drone Helicopters Used To Sell High End Real Estate

Helicopter drones looking for work outside the military might look well to apply at their local real estate office for a job. Turns out they’re not just good for conducting unmanned aerial strikes against insurgents, drones can also be used to sell mansions, via in-depth tour videos made with cameras mounted to their frames. [More]

Triple Dip Predicted For Home Prices

Triple Dip Predicted For Home Prices

Home prices are headed for yet a third bottom, their lowest yet, says a new report by financial analytics company Fiserv. [More]

4 Fannie Mae Staffers Placed On Administrative Leave Pending Investigation

4 Fannie Mae Staffers Placed On Administrative Leave Pending Investigation

Four Fannie Mae staffers have been placed on administrative leave while federal investigators probe a series of foreclosed apartments the enterprise sold. [More]

SEC Warns S&P It May Sue Them

SEC Warns S&P It May Sue Them

In an unprecedented move, the SEC warned S&P that it might be suing it over its rating of a mortgage-backed bond. It’s the first warning a credit rating firm has gotten over its behavior leading up to the financial crisis. [More]

Freddie Mac Tells Bargain Hunters To Buzz Off

Freddie Mac Tells Bargain Hunters To Buzz Off

Just because Freddie Mac has a glut of properties on its hands, buyers can’t expect Costco prices. Most of the buyers approaching Freddie have been looking to buy at 40-60% off of market price, like the final weeks of a Borders liquidation sale. Instead, Freddie is sending them back this letter which says sorry, we’re only taking less than 10% off. [More]

With Only $37,000 Left On Mortgage, House Gets Foreclosed

With Only $37,000 Left On Mortgage, House Gets Foreclosed

They only had $37,000 left to go on their mortgage they’d been paying off for 25 years, but now a California family’s house is going into foreclosure. [More]

Investigation: Banks Took $6 Billion In Home Insurance Kickbacks

Investigation: Banks Took $6 Billion In Home Insurance Kickbacks

According to a HUD investigation, big banks raked in over $6 billion in a decades-long insurance kickback scheme that violated RESPA. [More]

"Foreclosure Factory" Draws Critics

"Foreclosure Factory" Draws Critics

It’s a one-stop foreclosure shop. Under one roof is a law office, title company, and auction house. They act as their own notaries and can foreclose. Its owner and several of his top attorneys are even VPs at the Mortgage Electronic Registration Systems Inc (MERS) which gives them the ability to transfer mortgages from owner to the other. The Boston Globe profiles a local law firm that has attracted criticism from homeowners and consumer advocates for its vertically integrated approach to foreclosure that can speedily ride over homeowners who thought they were in the middle of working out a deal with the bank. [More]

Bank Tries To Foreclose On Gas Station Owner For Being One
Day Late With Mortgage Payment

Bank Tries To Foreclose On Gas Station Owner For Being One Day Late With Mortgage Payment

A gas station owner in Florida’s monthly mortgage payment bounced on October 12th. The next day he put the money required into the bank account. In November and December he tried to make his mortgage payments as normal, but BB&T wouldn’t take his money. 10 months later, they still won’t take it. Instead, they want to foreclose on his gas station. All for being one day late. [More]

BofA Bulldozing Foreclosed Homes

BofA Bulldozing Foreclosed Homes

Now here’s one to reduce the oversupply in the housing market. As the reluctant owners of vast amounts of foreclosed and abandoned houses it can’t sell, Bank of America is going to start bulldozing patches of them. [More]

Four Charged In Alleged $2.5 Million Reverse Mortgage Racket

Four Charged In Alleged $2.5 Million Reverse Mortgage Racket

For their victims, the phone call sounded like salvation. Seniors, living on a fixed income and having trouble with the bills, they were glad to hear someone offering them a reverse mortgage that would allow them to turn the equity in their house into cash. But the four mortgage professionals charged with perpetrating a $2.5 million reverse mortgage fraud scheme are anything but angels. Their aftermath has left those who signed up with them impoverished and close to foreclosure. [More]

Retiree Loses Everything After Bank Mistakes His House For Foreclosure

Retiree Loses Everything After Bank Mistakes His House For Foreclosure

An eighty-two year old Tampa Bay man has lost everything he owns, including pictures of his dead wife, after a clean-out crew hired by Bank of America mistook his house for the foreclosure next door. [More]