../../../..//2008/04/28/nyt-on-how-moodys-triple-a/
NYT on how Moody’s triple-A security ratings led to the subprime meltdown.
mortgages
Why Few Seem To Be Able To Work Out Better Loan Terms
By 4.25.08
Call it what you will, the borrower bailout/rescue/whatever does not seem to be working. Foreclosures are still on the rise along with defaults and sad stories. And while those numbers go up, the economy continues to worsen.
No Help For 70% Of Homeowners Facing Foreclosure
By 4.23.08
A new study shows that despite the best efforts of lawmakers and mortgage-service companies, little is actually being done to help homeowners facing foreclosure, says the Wall Street Journal.
LendingTree Data Breach: Former Employees Were Sharing Passwords With Unapproved Lenders
By 4.22.08
LendingTree announced today that several former employees are suspected of sharing passwords with lenders that were not approved by LendingTree, and that this may have exposed customer data including: name, address, e-mail address, phone number, Social Security number, income and employment information.
Is Your HELOC In Danger Of Being Frozen?
By 4.22.08
If you have an open home equity line of credit you were counting on for renovations or other projects, you might want to read CNN Money’s article about how lenders are freezing them around the country. The main triggers for HELOC freezing are credit score changes and a rapid drop in home value in your area. The freeze may also be a computer-determined action, so if your HELOC suddenly goes away and you don’t think it was justified, it may be worth checking your FICO score and then contacting the lender to reopen the line or renegotiate it.
By 4.18.08
../../../..//2008/04/18/apparently-buying-a-house-you/
Apparently, buying a house you can afford and fixing it up with a modest loan and money that you earned through gainful employment is rare enough to warrant a 3-page profile in the NYT. [NYT]
Blame The Subprime Meltdown On The Repeal Of Glass-Steagall
By 4.17.08
A lot of blame has sloshed around for the sub-prime meltdown, from greedy borrowers to greedy mortgage brokers to Alan Greenspan, but if you want the real culprit, it was the repeal of the Glass-Stegall Act. On November 12, 1999, the champagne must have been shooting from the walls at Citigroup, which had worked behind the scenes for over 30 years to get the act overturned. After recovering from their hangover, they and their banking buddies went on a sub-prime lending orgy. But what was Glass-Steagall and how did it use to protect us?
Having Trouble Getting A Conforming Loan?
By 4.15.08
A reporter for a major national newspaper is looking for people to talk to for a story about new government guidelines that were supposed to make it easier for people to get or refinance jumbo loans (mortgage loans traditionally greater than $417,000). Under the new guidelines, some loans that are greater than $417,000 have been re-classified as “conforming” loans. This was supposed to make it easier for borrowers to qualify, but the reality, mortgage brokers say, is that very few people are. The reporter is looking to speak with consumers who have looked into the new guidelines, had hoped they would help, but discovered they are not helping after all. Email ben@consumerist.com with “jumbo” in the subject line and I’ll put you in touch.
Life In A Subprime Ghost Town: Not Paying The Mortgage Feels "Great!"
By 4.10.08
We’ve been hearing tales of suburban McGhost-Towns that were submerged by a tidal wave of foreclosures at the height of the subprime meltdown and are now just sitting there, the lawns turning brown one by one.
Zillow Offers Anonymous Mortgage Shopping
By 4.4.08
Zillow has a new tool for those of you who wish you could do your mortgage shopping while wearing a ski mask and speaking through one of those things that makes you sound like Darth Vader — the Zillow Mortgage Marketplace.
Justice Department Will Investigate Countrywide's Lending Practices
By 4.3.08
Judge Thomas P. Agresti of the Federal Bankruptcy Court in Pittsburgh on Tuesday approved an inquiry into “the impact of Countrywide’s bankruptcy procedures on the integrity of the bankruptcy process” by the Office of the United States Trustee, a Justice Department arm that polices bankruptcy filings.
How To Get An "Iffy" Loan Approved
By 4.1.08
Sometimes when you’re trying to get a borrower approved for a mortgage the system will tell you something stupid like “this person is not qualified.” Luckily, this internal document from Chase shows a few tips and tricks you can use to tweak a borrower’s profile so they can get a stated-income asset loan (which recently has received the unfair pejorative of a “liar’s loan” by the sensationalist media apparatchik) a piece of The American Dream. It’s specific to Chase’s internal loan approval system. Irregardless, many of the principles have universal application, no matter what level of the fast-paced exciting field of sub-prime mortgages you work. Highlights:
By 3.28.08
../../../..//2008/03/28/new-trend-organized-bus-tours/
New trend: organized bus tours of foreclosed properties for potential buyers. [AP]
Identity Theft + Mortgage Fraud = Home Stealing
By 3.28.08
* From time to time, it’s also a good idea to check all information pertaining to your house through your county’s deeds office. If you see any paperwork you don’t recognize or any signature that is not yours, look into it.
Thankfully they also say that “home stealing” so far does not appear to be very common.
By 3.27.08
../../../..//2008/03/27/the-minnesota-financial-crimes-task/
The Minnesota Financial Crimes Task Force has given up on investigating mortgage fraud. “We don’t have the staff or funding to address it,” said Mike Siitari, Edina police chief and oversight council chairman. “We have hundreds of cases of backlog.” [Pioneer Press via Caveat Emptor]
By 3.24.08
../../../..//2008/03/24/some-ex-countrywide-executives-are-starting/
Some ex-Countrywide executives are starting a new company that will buy mortgages, restructure them, and sell them at a profit. [Martketwatch]
HTFC Mortgage Company CEO Has A Potty Mouth
By 3.20.08
GMAC Bank is suing mortgage company HTFC for selling improperly secured loans, which lead to the hilariously blue and aggressive deposition from HTFC CEO Aron Wider. Wider dropped the f-bomb 73 times, frustrating the opposing counsel’s attempts to get him to answer difficult questions like “Where are you currently employed?” Some of the more colorful and creative expletives from the testimony of Mr. Wider, who, according to his company website, serves as company Coprorate Information [sic], CEO / Senior Underwriter, and Radio Engineer, inside…
