Our sister publication, Consumer Reports, put together some video interviews with people who, for one reason or another, are facing foreclosure. They are the human side of this financial meltdown.
mortgages
Fannie Mae Relaxes Standards For Refinancing
By 2.5.09
Bloomberg says that Fannie Mae will loosen standards for refinancing in the hopes that more homeowners will be able to take advantage of historically low interest rates.
Congresswoman Marcy Kaptur Urges Squatting In Foreclosed Homes
By 2.3.09
Last week I was watching Lou Dobbs while scrubbing my dentures and complaining about joint pain (two of those things are true, sadly), and I saw a segment on Ohio congresswoman Marcy Kaptur, who is encouraging homeowners to stay put in their foreclosed houses. She argues that many of the loans made during the subprime fiasco may not be legit, and that you should seek legal counseling and demand a mortgage audit from the bank before leaving. Kaptur admits her advice doesn’t trump the sheriff knocking at your door with an eviction notice, but a real estate lawyer told the Toledo Blade that otherwise she has a point.
AmEx Denies Existence Of A Store Blacklist, Will Slash Your Credit Whenever They Want
By 1.31.09 — Updated: 11.1.12
Despite sending customers letter saying otherwise, American Express now insists that it never blacklisted cardholders based on where they shopped. Those notes explaining that “other customers who have used their card at establishments where you recently shopped have a poor repayment history with American Express?” Whoops! Just a big misunderstanding! Not unlike the comment they gave to ABC explaining that “shopping patterns” were used as a “contributing factor” in slashing credit lines, a statement AmEx later retracted. So what’s really going on? Let’s explore…
9 In 10 Executives At Bailed-Out Banks Kept Their Jobs
By 1.27.09
Over 100,000 people have been laid off by banks, but 9 in 10 executives at banks that accepted bailout money are still working says the Associated Press.
Bank Of American Puts Congresswoman On Hold For Two Hours
By 1.25.09
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.”
Bank Of America Fires Former Merrill Lynch CEO
By 1.22.09
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.
Citibank Will Split Into Two Companies, Promises To Lend To Consumers
By 1.16.09
Vikram Pandit, CEO of Citigroup, announced today that the company would be split after reporting a net loss for 2008 of $18.72 billion. He also promised to put the money from the $700 bailout to work by extending credit to consumers and businesses… responsibly.
Citibank, Senate Agree On "Cramdown" Bill To Prevent Foreclosures
By 1.9.09
Ever heard of a cramdown? It’s when a bankrupcty court splits a home loan into two parts: a secured loan that’s equal to the current value of the home, and an unsecured loan that covers the rest of the outstanding debt. The secured loan is paid, and the unsecured isn’t. It can result in lower monthly payments (if the new loan amount is amortized over the course of the loan), but the important part is that it helps guarantee that a significant part of the loan will still be paid off.
Was George Bailey Just A Subprime Lender?
By 12.24.08
It’s A Wonderful Life is a heartwarming classic film — but it now seems to have wrecked our economy. Whoops!
Former Treasury Secretary Says He "Forgot" That People Had To "Afford Their House"
By 12.22.08
Former Treasury Secretary John W. Snow has told the New York Times that he, along with the entire Bush Administration, simply “forgot” that people had to be able to “afford their house.”
Fannie Mae Lets Renters Stay
By 12.15.08
Good news for renters who’ve been dutifully paying their rent while their landlords failed to make the mortgages, and were facing eviction as a result: Fannie Mae will sign new leases with them. [NYT]
What Do I Need To Know Before I Refi?
By 12.8.08
I am going to meet with him after work today, but was wondering, what sort of things do I need to look out for, and know, going into this? This is my first mortgage ever (I’m 21) and don’t know too much about what’s normal and what’s not. If you could give me any hints or suggestions, that’d be awesome! Thanks so much, and have a great day!
Not Even Money Saves You From Foreclosure
By 12.4.08
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…
WaMu Told Washington That Adjustable Rate Mortgages Were Safer Than Some Fixed Ones
By 12.1.08
The Associated Press says that a review of regulatory documents shows that years before the subprime mortgage crises developed into a full blown economic meltdown— the government ignored warnings and listened instead to lobbyists who represented some of the same banks that have now failed.
ReFi Time: Mortgage Rates Drop On New $800 Billion Intervention
By 11.26.08
If you’re looking to refinance a home and have cash and good credit, now is a good time to pull the trigger. Yesterday the government announced the latest Federal golden bandaid: a pledge to inject $800 billion directly into the credit markets, news which pushed national average mortgage rates for a 30 year fixed to 5.81%, down from 6.07%, according to bankrate. Bankrate also suggest that if you’re trying to refi to act quickly, before rates rise or home values drop.
