(frankieleon)

Bank Of America Won’t Have To Pay $1.2 Billion For Countrywide’s “Hustle” Mortgage Scam

Nearly eight years after Bank of America bailed out Countrywide Financial, a federal appeals court has ruled that BofA should not have been held liable for Countrywide’s “Hustle” scam in which the company sold Fannie Mae and Freddie Mac a ton of poorly underwritten mortgages knowing that they were worthless. [More]

First-Time Homebuyers May Only Need 3% Down Payment, But It Won’t Be A Cakewalk

First-Time Homebuyers May Only Need 3% Down Payment, But It Won’t Be A Cakewalk

In October, the director of the Federal Housing Finance Agency announced that the regulator had reached a deal that would allow bailed-out mortgage-backers Fannie Mae and Freddie Mac to sign off on loans with down payments of less than 5%. Today, Fannie and Freddie revealed more details on what it would take for home buyers to be eligible for the reduced requirement, and getting one of these loans won’t be as easy as filling out a form. [More]

(Robert Fairchild)

You May Soon Need Less Of A Down-Payment To Buy A Home

One of the biggest hurdle’s to buying a home is coming up with a down-payment. In order to get a mortgage backed by Fannie Mae or Freddie Mac, you generally need to come up with at least 5% of the total cost. But the federal regulator overseeing Fannie and Freddie says it has reached a deal that would lower that minimum back down to 3% for some borrowers. [More]

(Kerry Lannert)

New Policies Aim To Make It Easier For First-Time Home Buyers To Get Mortgages

Some first-time home buyers face an uphill battle when it comes to obtaining a mortgage following the housing crisis. But new policies created by federal regulators aim to make it easier for consumers to buy the home of their dreams. [More]

U.S. Wants To Add $1.23 Billion To Bank Of America’s Tab For Countrywide Scam

U.S. Wants To Add $1.23 Billion To Bank Of America’s Tab For Countrywide Scam

Back in October, a federal jury found Bank of America liable for a Countrywide Financial program that deliberately sold piles of worthless loans to Fannie Mae and Freddie Mac before the housing bubble went kaflooey. At the time, prosecutors had only sought $864 million in penalties, but now the Justice Dept. claims that number should be $2.1 billion. [More]

Wells Fargo To Pay Fannie Mae $541 Million Over Toxic Loans

Wells Fargo To Pay Fannie Mae $541 Million Over Toxic Loans

All those mortgages that weren’t worth the cocktail napkins they were written on are continuing to sting big banks, with Wells Fargo announcing this morning that it had reached a $591 million deal with Fannie Mae to resolve the mortgage-backer’s claims that Wells sold it a pile of loans that the bank knew were toxic. [More]

Participating In HAMP Cut Down On Principal Amount Owed For 77% Of Eligible Homeowners

Participating In HAMP Cut Down On Principal Amount Owed For 77% Of Eligible Homeowners

The latest numbers on the government-backed Home Affordable Modification Program are in, and there’s some good news in there for most of the homeowners who participated. About 77% of those who went through modification (and didn’t have a mortgage tied to Fannie Mae or Freddie Mac) in July enjoyed a nice little cut to the principal amount they owe.

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New Guidelines Aim To Make Short Sales Less Of A Pain In The Butt To Everyone

New Guidelines Aim To Make Short Sales Less Of A Pain In The Butt To Everyone

Short sales now account for nearly 1-in-11 home sales in the U.S., so there’s a decent chance that anyone who has been house-shopping recently has visited a for-sale property only to have the realtor say, “Now I have to warn you, it is a short sale.” At this point, many of you would go running for the hills rather than be stuck in bank-approval muck for months. But new guidelines issued by the Federal Housing Finance Agency are aimed at speeding up the process.

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FHFA Says No To Cutting Amount Homeowners Owe On Fannie Mae & Freddie Mac Mortgages

FHFA Says No To Cutting Amount Homeowners Owe On Fannie Mae & Freddie Mac Mortgages

Saying Fannie Mae and Freddie Mac have already cost taxpayers more than $188 billion, the acting chief of the Federal Housing Finance Agency, which regulates those lenders, says he has concluded that those firms won’t participate in the Obama administration’s program to cut the amount struggling homeowners owe.

[More]