The new Trump administration has already made one of its first moves, directing the Department of Housing and Urban Development to suspend a recently announced program that would have reduced mortgage insurance rates for a number of new homeowners. [More]
less is mortgage
Some States Denied “Hardest Hit” Funds To Homeowners Who Needed It Most
By 1.11.17
The money from a multibillion-dollar federal program to help unemployed and underemployed workers in certain states hold onto their homes failed to reach some of the people who needed the most help, especially in two states hit particularly hard by the recession. [More]
Two Reasons Anyone Who Remembers The Recession Had A Problem With Quicken Loans’ Super Bowl Ad
By 2.8.16
Last night, in the middle of ads for opioid-induced constipation and prescription drugs to relieve diarrhea, Quicken Loans dropped an ad bomb that magically transported viewers — however briefly — back to the mortgage-fueled glory days of 2004, when every part-time wedding photographer owned three houses and had credit cards with six-figure spending limits. [More]
Wells Fargo To Pay $1.2 Billion To Settle Govt. Lawsuit Over “Reckless” Mortgages
By 2.3.16
In Oct. 2012, the U.S. Department of Justice sued Wells Fargo, alleging that the mega-bank had defrauded taxpayers by issuing “reckless” mortgages then misleading the Federal Housing Administration about the quality of those loans. Today, Wells revealed that has agreed to pay $1.2 billion to close the book on this issue. [More]
JPMorgan Chase Fined $48 Million For Failing To Comply With Robosigning Settlement
By 1.5.16
Years after being hit with billions in penalties, and after being told by federal regulators to stop screwing up the foreclosure and mortgage adjustment process by providing borrowers and courts with inaccurate and unchecked information, some banks continue to pay for the fact that they didn’t quite learn their lesson. [More]
Mortgage Servicer To Pay Back $1.5M To Screwed-Over Homeowners
By 7.30.15
Residential Credit Solutions is a mortgage servicer specializing in delinquent loans and “credit-sensitive” (read: high-risk for default) residential mortgages. But after allegedly screwing over homeowners by, among other things, not honoring loan modifications on mortgages transferred from other servicers, RCS is on the hook to pay $1.5 million in restitution and a $100,000 penalty to federal regulators. [More]
DOJ Sues Quicken Loans Over Improperly Underwritten Mortgages
By 4.23.15
If you thought that we were done with lawsuits related to the mortgage meltdown, think again. The U.S. Dept. of Justice is suing Quicken Loans, alleging that the lender improperly underwrote hundreds of FHA-insured home loans before and during the housing market crash, resulting in substantial losses for the federal government. [More]
New Homeowners To Pay Less For FHA Mortgage Insurance
By 1.8.15
In the wake of the devastating crash of the housing market, the U.S. Dept. of Housing and Urban Development was forced to increase mortgage insurance premiums for borrowers with loans insured by the Federal Housing Administration, effectively stopping hundreds of thousands of potential homeowners from climbing the property ladder. With the market stabilizing, HUD is rolling back most of that rate increase for new homeowners in the hope that it will spur more borrowing. [More]
First-Time Homebuyers May Only Need 3% Down Payment, But It Won’t Be A Cakewalk
By 12.8.14
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]
You May Soon Need Less Of A Down-Payment To Buy A Home
By 10.20.14
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]
Russia’s Biggest Bank Offering Loaner Cats To Entice Mortgage Borrowers
By 8.28.14
Because it’s apparently good luck in Russia to let a cat stroll through your new home before you move your stuff in, and because mortgage interest rates have skyrocketed in the country, some employees at the nation’s largest bank are offering to lend out their feline friends to a handful of mortgage borrowers in the coming months. [More]
3 Things That Won’t (Or At Least Shouldn’t) Affect Your Mortgage Pre-Approval
By 8.19.14
Anyone who has ever filled out a mortgage application with a bank or broker knows that there are a lot of questions you have to answer about your current assets, income, etc. There are a few things that seem like they might factor in — negatively or positively — to the approval process, but which can’t be used in determining whether or not you’re eligible for a loan. [More]
Citi To Pay $7B To Settle Mortgage Investigation; Includes $2.5B In Consumer Relief
By 7.14.14
Nearly a week after it was first reported that Citigroup and the U.S. Justice Dept. had reached a deal to close the government’s investigation into toxic mortgage-backed securities sold by the bank in the years leading up to the crash of the housing market, Citi has now confirmed a settlement valued at a total of $7 billion. [More]
L.A. Sues JPMorgan Chase For Pushing Minorities Into Cruddy Mortgages
By 5.30.14
After filing similar suits against Well Fargo, Citi, and Bank of America, the city of Los Angeles is now going after JPMorgan Chase for allegedly pushing minority loan applicants into riskier and less-affordable mortgages than they were eligible for. [More]
Prosecutors May Seek Larger Penalty For Countrywide Exec Behind “Hustle” Scam
By 3.13.14
Last fall, Bank of America and former Countrywide executive Rebecca Mairone were found liable in federal court over a Countrywide scam that had bilked bailed-out mortgage-backers Fannie Mae and Freddie Mac out of piles of cash by selling them worthless mortgages. Mairone was originally expected to face a $1.1 million penalty, but that was before she got a big bonus from her new gig. [More]
Bank Of America’s Compliance With Federal Mortgage Program Being Investigated
By 2.26.14
While it’s still settling multibillion-dollar tabs tied to the mortgage meltdown, Bank of America continues to face new legal and regulatory pressure. Yesterday, the bank revealed that it is being investigated by federal authorities to see whether it has complied with a program aimed to ease the mortgage-lending process. [More]
Justice Dept. Sued Over Validity Of $13 Billion Chase Mortgage Settlement
By 2.10.14
Remember back in November when JPMorgan reached the massive $13 billion settlement with the Justice Dept. over allegations tied to toxic mortgage-backed securities sold to investors before the housing market went kerflumpp? A non-profit group filed suit today against the DOJ, challenging the validity of the deal and asking for a court to review it. [More]
New Rule Requiring Banks To Make Sure Borrowers Can Actually Repay Mortgages Goes Into Effect This Week
By 1.7.14
Want a mortgage? Go for it! But thanks to new rules from the Consumer Financial Protection Bureau, the banks are going to need some proof first that you can actually, you know, pay it back. [More]
