subprime-meltdown
Get $1000 In Ameriquest Mortgage Settlement
Consumerist Videodrome #2: The "New Moon" Felons
Sample Phone Scripts Used By Sleazy Subprime Lenders In 2005
Bernanke Says The Recession Is "Likely Over"
Good news? Federal Reserve Chairman Ben Bernanke says that the recession is over, but that it won't really stop the rise of unemployment — currently at a 26-year high of 9.7%. More »
Insiders: Countrywide Made Racist Sub-Prime Loans
The Wells Fargo racist sub-prime mortgage lawsuit reminded me of an old post we did where an ex-Countrywide employee alleged that that loan company had racist practices too. Here's the insider email we posted back in February, 08: More »
Affidavits On How Wells Fargo Gave "Ghetto Loans" To "Mud People"
Here's the official court filing (PDF) so you can get the full details on how Wells Fargo pushed or even fraudulently placed black borrowers into sub-prime loans, even when those borrowers could afford prime loans, along with an office environment where employees threw around racist slurs, calling black borrowers "mud people" and their mortgages "ghetto loans." The official statements referenced in the NYT article are in this document in full. The affidavits begin on page 48. Two screenshots inside... More »
Loan Officers Detail Wells Fargo's Blatantly Racist Subprime Loans
UPDATE: Read the affidavits here. More »
Judge Slaps Ameriquest Hard For Selling Mortgage, Then Pretending To Still Own It
Ameriquest originated a mortage, securitized it, and sold it. Then pretended it still owned the mortgage to a U.S. Bankruptcy Court judge. Whoops. More »
65% Of Modified Loans Will Default Again Anyway, Study Predicts
Many homeowners that couldn't afford their home the first time around, can't afford it the second or third, a new study finds. Fitch Ratings predicts that 55-65% of home loans getting modified will end up at least 60 days behind within a year. The percentage is even higher for those in subprimes... More »
1 In 8 US Households Either Late Or In Foreclosure
Here's your daily depressing mortgage news — as employers shed jobs mortgage delinquencies are rising — intensifying and spreading the mortgage crisis. More »
Make The Bank Prove It Really Owns Your Mortgage Before You Let Them Toss You Out
We've written about this before, but as more and more people face foreclosure (last year's foreclosures totaled 2.3 million, according to the AP) its a good time to remind people of this strategy. More »
Bank Of American Puts Congresswoman On Hold For Two Hours
Don't take it personally if you can't reach Bank of America to renegotiate your mortgage payments. Congresswoman Maxine Waters (D-CA) tried calling the bank on behalf of two constituents, only to be "repeatedly put on hold for long stretches, disconnected, transferred to extensions that did not work, and ultimately switched to a recording which directed her to the bank's website." More »
Bank Of America Fires Former Merrill Lynch CEO
It seems that Bank of America didn't really appreciate that unexpected $15.4 billion dollar 4th quarter loss by Merrill Lynch — because its former CEO, John Thain has been shown the door. More »
Was George Bailey Just A Subprime Lender?
It's A Wonderful Life is a heartwarming classic film — but it now seems to have wrecked our economy. Whoops! More »
Credit Suisse Top Execs Get Toxic Debt As Christmas Bonus
Instead of canceling bonuses for top execs this year, Credit Suisse instead will pay them with the very toxic debt that's thrown the world into an economic crisis. Yes, Virginia, there is a Revenge Claus. More »
Fannie Mae Lets Renters Stay
Not Even Money Saves You From Foreclosure
Eric lost his home to foreclosure, but unlike other homeowners, he had actually been trying for the past month-and-a-half to buy it back from the mortgage company for more than the mortgage. The law firm that was handling it, however, wanted an extra $20k in fees to make that happen. He told the realtor that he would buy it for more than it was going to be listed for. The realtor told him that he couldn't make a bid until it was "active," which would happen on 11-29. On Sunday he tells the broker he;ll give an offer on Monday. Monday rolls around and they've already sold the house to someone else, for less than Eric was willing to pay. They said they "forgot" that he was going to make a bid. Eric is livid. His story, inside... More »
Fannie, Freddie Announce New Loan Mod Plans For Borrowers 90+ Days Overdue
The Federal Housing Finance Agency announced plans for allowing Fannie and Freddie to modify more of their loans. The mods will lower interest rates or lengthen the repayment schedule with the goal of bringing payments below 38% of household income. To qualify, borrowers must: More »
Fannie And Freddie To Announce More Sweeping Loan Modifications
Fannie Mae and Freddie Mac are expected to announce today plans for accelerating and expanding mortgage loan modifications for distressed homeowners. The new guidelines will apply to specific kinds of past due loans and try to bring their debt to income ratio down to 38%. Washington will also prod other big banks to do the same. "It could apply to a broad range of borrowers," reports WSJ. Expect the full details at a 2pm eastern Federal Housing Finance Agency press conference. More »
The Town With The Most Screwed Housing Market In America
Nearly 90% of the homeowners in Mountain House, CA owe more on their mortgages than their house is worth. The average homeowner is down by $122,000. What are they doing to cut back? No more dinners at Applebee's, buying 1 DVD a month instead of 50, canceling remodeling projects, and playing board games at home instead of going out to the movies, "But not Monopoly," reports NYT, "with its real estate theme, it reminds them too much of real life." One man is even cutting back on his scub and flying hobbies, and waiting until after Christmas to buy a high-def television. Wow. I think you're going to have to dig a little deeper... More »
