Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-55551 Sun, 30 Nov 2014 14:40:14 GMT This FHA Foreclosure Defense Strategy Stops Lenders In Their Tracks http://implode-explode.com/viewnews/2014-11-30_ThisFHAForeclosureDefenseStrategyStopsLendersInTheirTracks.html iehi-feed-55457 Tue, 18 Nov 2014 00:33:31 GMT FHA is back "in the black" -- but not out of the woods (AH, QUAINT GUB'MINT ACCOUNTING!) http://implode-explode.com/viewnews/2014-11-17_FHAisbackintheblackbutnotoutofthewoodsAHQUAINTGUBMINTACCOUNTING.html By law, the FHA must maintain a cash cushion that equals 2 percent of all the loans backed by the agency. The $4.8 billion cushion announced Monday equals just 0.41 percent, the agency said in its report to Congress, citing figures from its most recent audit.

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One of the key reasons its reserves remain so low is because the agency is losing money on its reverse-mortgage program, which allows seniors to withdraw equity from their homes. Another reason is that the FHA is not generating as much business as the auditors expected last time they examined the agency's books. It backed $134 billion worth of new loans in the fiscal year ended Sept. 30, instead of the projected $191 billion.

We are amused that the defaults from FHA's shoddy underwriting in the mid-1990s through 2008 "free-for-all" era do not figure in the above blame accounting (this would include laundering-based, no-money-down "charitable downpayment assistance" loans, or SFDPAs).

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iehi-feed-55356 Tue, 04 Nov 2014 20:38:16 GMT Could Fallout From The NYDFS Investigation Bankrupt OCWEN? http://implode-explode.com/viewnews/2014-11-04_CouldFalloutFromTheNYDFSInvestigationBankruptOCWEN.html iehi-feed-54580 Tue, 05 Aug 2014 01:05:13 GMT Mortgage closing costs on the rise, national survey says http://implode-explode.com/viewnews/2014-08-04_Mortgageclosingcostsontherisenationalsurveysays.html It's no secret that purchasing a home this year is more expensive than last. But rising home prices aren't the only factor straining home buyer pocketbooks. ]]> iehi-feed-54501 Sun, 27 Jul 2014 19:24:42 GMT Massachusetts Alliance Against Predatory Lending http://ml-implode.com/viewnews/2014-07-27_MassachusettsAllianceAgainstPredatoryLending.html FACT SHEET: OPPOSE ACT TO CLEAR TITLE TO FORECLOSED PROPERTIES

Senate Bill 1987

Massachusetts' Supreme Judicial Court has declared thousands of foreclosures void and homeowner rights violated. Massachusetts has a problem going forward with hundreds of thousands of titles to property, 65,000 of which were "foreclosed" homes. S1987's attempt to deny former owners the right to regain illegally foreclosed property is not the same as clearing titles and is not the solution. It disparately impacts women and communities of color foreclosed on early in the crisis before the SJC recognized the many lender illegalities in foreclosure.

What Does This Bill Do? It does nothing to clear title -- it attempts to exclude the party most likely to sue.

The Senate version of the bill shortens the time to overturn an illegal foreclosure after filing a foreclosure deed and accompanying affidavit from the long standing, 20 year statute of limitations to 3 years for future auctions and to only one year for those previously foreclosed. The bill provides no notice to MA homeowners of this curtailing of long-standing, property rights. In passing the bill on July 23rd, 2014, House leadership changed the bill to limit the decrease from 20 years to 10 for both present and future foreclosed homeowners. This change will at least protect homeowners in the present crisis.

The bill offers an exemption only if the former homeowner sues or is sued, knows to ask and can convince a judge to give permission to file a copy of their complaint in the Registry of Deeds. Getting such an allowance can be hard since court rulings on foreclosed homeowners' claims against lenders' illegal procedures are still evolving.

While S1987 provides triple, monetary damages if the foreclosing lender is found to have lied on its affidavit, the home in which people raised their children, invested all their incomes and participated in their communities is forever gone. A home is not just a financial investment. S1987 misses that reality: denying our right to fight for and reclaim an illegally foreclosed home and limiting judgment to financial recompense which can never repay what is lost when a home is taken illegally.

Will S1987 protect innocent, new homeowners who purchase post-foreclosure?

The clear majority of new purchasers (58%) are big, cash-only investors -- not new owner-occupants or small local investors. Only homeownership and long-term stable rental ensure healthy neighborhoods.

The recording of any legal challenge to title --lis pendens-- exists specifically to protect future buyers.

However, only a judge can approve such a filing (G.L. Chapter 184 sect. 15). When legal rulings evolve so quickly, judges are learning like the rest of us. Prior to each recent major SJC ruling in foreclosed homeowners' favor, most judges ruled against those same legal claims, declaring arguments "frivolous" when homeowners attempted to appeal. Judges have not been able to fully assess what will or will not be determined a "frivolous challenge" in the near future and thus merit recording in the Registry now. If a homeowner is permitted to record the initial claim, they are also laid open to counter-suits that their filing was frivolous.

S1987 does nothing to clear title. The now common problems of broken chains of title to mortgages and missing notes means there may be other parties besides former homeowners who have rights unaffected by S1987. The only sure protection for new or old homeowners will be swift adjudication of or another remedy to the now numerous valid challenges to post-foreclosure titles and broken chains of ownership of mortgages and notes.

Can the foreclosure deed affidavit be considered as "conclusive evidence" of a valid foreclosure?

The foreclosure affidavit filed at the Registry in a foreclosure is a purposefully abbreviated form created by the legislature to memorialize the bare bones of a foreclosure. As has been adjudicated by the Massachusetts Supreme Judicial Court in two decisions in the last two years:

"The statutory form was intended as an alternative to the more lengthy form prescribed by G.L. c. 244, §

15,... The purposes of a statutory form are...: to be recorded with the foreclosure deed and "secure the preservation of evidence that the conditions of the power of sale... have been complied with... Such an

affidavit is not conclusive proof of compliance with G.L. c. 244, § 14."

The statutory affidavit covers none of the legal challenges that have been the critical breakthrough defenses against illegal foreclosures in the last few years: a mortgage having sub-prime characteristics, a broken chain of title to the mortgage, lacking an enforceable note, proper service on the homeowner of the notice of the auction, strict compliance with the right to cure period, etc. The affidavit S1987 attempts to elevated to a "conclusive evidentiary" status would require creation of a lengthier affidavit to cover the most salient issues. The abbreviated version used for decades cannot be elevated to proof of legal foreclosure. "Evidence" by its very nature must be the subject of scrutiny in court. "Conclusive evidence" without adjudication is a legal impossibility.

Can a curtailed time period to sue be fair when courts broaden the number of winnable offenses monthly?

Can the outcome of a lawsuit best predicted by the date it is brought be fair? If previously foreclosed homeowners had been limited to 1 year in 2008, none of the now common legally successful challenges to foreclosure could win in court then. What new claims will become winnable in coming months?

S1987 will drown our Civil Court system in legal claims. As the state judiciary has grasped the many problems in the procedures of mortgaging and foreclosure of homes, they have moved to enforce our laws more and more completely. A significant percentage of the 65,000+ households that were foreclosed since 2007 now have valid and potentially winnable legal challenges to regain their title. The Massachusetts courts will be deluged as homeowners and their advocates rush to file suit on now viable claims within one year. A small percentage of such filings (1,300) will mean slightly fewer lawsuits in one year than were filed in the last six!

S1987 unjustly lacks any notification to former or present homeowners of vast cut in right to sue

S1987 provides a one year window for the over 65,000 foreclosed homeowners since 2007 to sue and get a copy of their complaint recorded at the local registry of deeds, rather than the traditional 20, a serious curtailment of traditional rights. The House bill, as amended, improves a still flawed bill by increasing the period to 10 years. Homeowners deserve notification that the state has changed the time period. S1987 includes no provision. Nor would S1987 notify future foreclosed homeowners of their Senate-proposed three year window to sue.

A homeowner will not know when their clock to sue starts. No Massachusetts law requires a deadline for recording a foreclosure deed and subject affidavit. S1987 does not fix this nor require notification to the supposed former homeowner of the filing. Currently deeds are recorded from 1 to 21 months after auction. No 'foreclosed' homeowner can be expected to check every week for the date a foreclosure deed is recorded.

Shouldn't laws reverse the huge economic loss to the state rather than make that impossible?

Conservatively, the 65,000+ Massachusetts foreclosures represent a $20-$40 billion loss in wealth to the state's households. The vast majority of those foreclosures were done by out of state lenders, who took almost all of those billion out of our state. It is well recognized that the loss of value in a home represents a concomitant loss of spending power representing additional billions of dollars of lost economic activity and spending in the Commonwealth. Studies also show concomitant unemployment and job losses, negative health impacts, much lower school performance by children, the tearing apart of the fabric of our communities, losses in property tax revenue to our municipalities, increase in crime and its concomitant costs. We should support our residents to get their homes back, receive justice they deserve, bring their pillaged wealth back and rebuild our economy.

Our Housing Market is Still Unstable: S1987 does not help

S1987 will not stabilize the housing market. MAAPL, the Mass Bankers Association, and Commissioner of Banks all stated publicly that they do not believe foreclosures are over. Spring 2014 foreclosures spiked again: March, April and May's petitions to foreclose and June auctions more than doubled. Percentages over the prior year were still far higher than the height of the then believed to be devastating foreclosure crisis of the early 1990s.

While the initial cause of the foreclosures and damage to our housing market appeared to be sub-prime lending policies, evidence now shows that the damage was caused by the huge housing bubble. Now that property prices have dropped down closer to the normal historical curve, those hugely overpriced mortgages are still common place in our state. These continue to destabilize neighborhoods and our housing market as a whole. Surface solutions that allow some properties to be purchased more easily will not address the underlying problems or the continuing accumulation of damages from the foreclosures that have happened already.

S1987 Only Claims to Address a Small Part of the Widespread Ruined Titles in our Registries

In addition to the problems exposed in the Ibanez ruling of "broken chain of title to the mortgage," numerous additional examples of other chain of title to mortgage problems exist, such as the recent Eaton decision's on "holding the note" and a dozen others highlighted in seminal, SJC decisions in the last couple years alone. These problems compromise the marketability of title. Their property record contains the same legal violations. What are the homeowners to do who face these problems each and every month over the next 30 to 50 years when they or their heirs go to refinance or sell their home? S1987 is a response to the tip of the Housing Bubble/Housing Crash iceberg. It does not resolve title problems either for those who have been illegally foreclosed or the much larger percentage of homeowners who will face these problems in the decades going forward. Damage to titles can be located. The state should commit to finding them and providing a genuine repair.

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iehi-feed-54388 Wed, 16 Jul 2014 01:37:38 GMT JPMorgan pulls back from mortgage lending on foreclosure worries http://implode-explode.com/viewnews/2014-07-15_JPMorganpullsbackfrommortgagelendingonforeclosureworries.html JPMorgan Chase & Co, the second-largest U.S. mortgage lender, is backing away from making home loans to less creditworthy borrowers after losing faith in its ability to recover much money from foreclosing on homes, even with government guarantees... "The cost to take a customer through the foreclosure process is just astronomical now," Kevin Watters, chief executive of JPMorgan Chase's residential mortgage banking business in New York, told Reuters in an interview.

If other lenders choose the same path as JPMorgan, it could become more difficult for people to secure financing to buy homes, even though government programs are intended to help credit flow to these borrowers, said Christopher Mayer, a professor of real estate finance at Columbia University.

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iehi-feed-53577 Tue, 25 Mar 2014 15:35:53 GMT Credit Suisse agrees to pay $885m to settle mortgage litigation - Banking Business Review http://implode-explode.com/viewnews/2014-03-25_CreditSuisseagreestopay885mtosettlemortgagelitigationBankingBusi.html ``The recent deal with Credit Suisse marks the ninth settlement FHFA has reached in relation to the 18 PLS lawsuits it filed in 2011 against banks that marketed over $200bn in bonds to Fannie and Freddie by giving materially false statements about the quality of mortgages.

Both Fannie Mae and Freddie Mac went bankrupt during the financial crisis of 2008, due to the high exposure of faulty residential mortgage-backed securities (RMBS) and were subsequently injected with nearly $187.5bn by the US government to keep them running.''

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iehi-feed-53391 Sat, 22 Feb 2014 13:46:40 GMT Homeowner Alert: Scammer Masquerades as Bank, Offers Fake Loan Mods http://implode-explode.com/viewnews/2014-02-22_HomeownerAlertScammerMasqueradesasBankOffersFakeLoanMods.html As if REAL loan modifications weren't often illusory enough, now there are scammers masquerading as banks, offering FAKE LOAN MODIFICATIONS... and if that weren't bad enough, the fake mods require homeowners to pay thousands of dollars for nothing. ]]> iehi-feed-52994 Sun, 29 Dec 2013 00:41:09 GMT Housing market may get a boost from ‘boomerang buyers' http://implode-explode.com/viewnews/2013-12-28_Housingmarketmaygetaboostfromboomerangbuyers.html Founders of the San Diego-based company AfterForeclosure.com said last week that millions of banned borrowers nationwide will be eligible for a mortgage next year, while Jupiter mortgage broker Skip McDonough said his firm is already doing deals with home buyers who were forced into default during the housing bust.

"The old-fashioned way of doing it was a seven-year waiting period," said McDonough, president of Family Mortgage. "That's changed, and people who don't believe they can qualify are qualifying."''

...

Under the FHA's "Back to Work" program, it will approve certain borrowers for a home loan just one year after a foreclosure, short sale, deed in lieu of foreclosure or bankruptcy. The FHA's previous timeline was three years for a short sale and foreclosure and two years for a bankruptcy.

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iehi-feed-52926 Sun, 15 Dec 2013 15:29:44 GMT FHA faces $1.3 billion capital shortfall, audit finds http://implode-explode.com/viewnews/2013-12-15_FHAfaces13billioncapitalshortfallauditfinds.html The Federal Housing Administration, which recently received an infusion of funds from the Treasury to cover projected losses, still faces a $1.3 billion capital shortfall, an independent audit released Friday found.

FHA Commissioner Carol Galante declined to comment at a briefing for reporters on whether the agency might need a second straight taxpayer subsidy. The government mortgage insurer received a $1.7 billion infusion from Treasury in September, the first time it has needed aid in its 79-year history.

The FHA is legally required to maintain a 2 percent capital ratio, which is a measure of its ability to withstand losses. It has not met that mark since 2009, but the audit said it would in the 2015 fiscal year, sooner than was estimated last year.

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iehi-feed-52725 Sun, 17 Nov 2013 00:26:50 GMT HUD Said to Fail in Bid to Sell $450 Million of FHA Mortgages http://implode-explode.com/viewnews/2013-11-16_HUDSaidtoFailinBidtoSell450MillionofFHAMortgages.html The U.S. Department of Housing and Urban Development for the first time failed to sell some of the soured mortgages it's auctioning off in the wake of the housing crisis, according to four people with knowledge of the results.

HUD deemed bids on about $450 million of home loans too low to accept at an Oct. 30 sale... The sales are an attempt by HUD to simultaneously stem losses at the financially troubled FHA and pursue its public mission of averting foreclosures on the underlying properties... The mortgages that HUD chose not to sell last month were in the two pools that had the highest debt relative to the value of underlying properties, the people said. The department sought to offload a total of $1.7 billion in loans.

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iehi-feed-52717 Fri, 15 Nov 2013 16:08:39 GMT Could The Fair Housing Act Keep You in Your Home? | Richard Zombeck http://implode-explode.com/viewnews/2013-11-15_CouldTheFairHousingActKeepYouinYourHomeRichardZombeck.html ``A significant number of borrowers fall under the umbrella of this protection and were harmed in some way by lenders and servicers violating these rights. In a nutshell, if you were granted or even offered a loan or loan modification you did not have the capacity to repay it could be a violation of the Fair Housing Act; if you were told you did not qualify to apply, should not apply, or otherwise discouraged from applying for a loan or modification for any reason it could be a Fair Housing violation; if you believe you are qualified for loans you can repay to keep you in your home but believe you have been improperly denied a loan or modification it could be a Fair Housing violation; if during the course of the loan, from beginning to now you believe you were discriminated against, treated differently, or harmed by your Servicer or Lender it could be a violation of the Fair Housing Act. Get it? It casts a pretty wide net and covers a lot of ground. It might not be the silver bullet that many advocates, attorneys, and homeowners are looking for, but in many cases it gets the job done, and at a federal level.

The Diligence Group and Dr. Gary Lacefield have been leveraging these laws to help keep people in their homes and with affordable terms. "Our goal is to keep people in their homes and to negotiate the terms of the mortgage to how it should have been written in the first place," says Lacefield.

Why aren't more attorneys and homeowners taking this route? As previously mentioned it's murky and abstract and there aren't many attorneys who fully understand and appreciate the concept. Those that do however, find a compelling strategy - one that rarely needs to see the inside of a courtroom.''

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iehi-feed-52679 Mon, 11 Nov 2013 22:16:45 GMT Realtors & Mortgage Brokers: Toughest Year for Housing Markets Since 2010 Ahead - Mandelman Matters http://implode-explode.com/viewnews/2013-11-11_RealtorsMortgageBrokersToughestYearforHousingMarketsSince2010Ahe.html iehi-feed-52395 Wed, 09 Oct 2013 22:37:57 GMT So This is A Recovery: Housing Welfare Queens Oppose Rollback of Crisis Loan Limits http://implode-explode.com/viewnews/2013-10-09_SoThisisARecoveryHousingWelfareQueensOpposeRollbackofCrisisLoanL.html iehi-feed-52377 Tue, 08 Oct 2013 05:10:14 GMT Fannie, Freddie Launch Combined Securitization Platform http://implode-explode.com/viewnews/2013-10-08_FannieFreddieLaunchCombinedSecuritizationPlatform.html ``The mortgage giants filed a certificate of formation with the Secretary of State of Delaware to create a new entity called Common Securitization Solutions LLC. The joint venture will be an equally-owned subsidiary of Fannie and Freddie.

The filing is a "significant milestone toward accomplishing the goal of building a new secondary mortgage market infrastructure," said Edward DeMarco, the FHFA's acting director.''

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iehi-feed-52325 Tue, 01 Oct 2013 14:41:13 GMT Landlord Uncle Sam wants to sell foreclosures http://implode-explode.com/viewnews/2013-10-01_LandlordUncleSamwantstosellforeclosures.html ``Since the 2008 financial collapse, the government has spent billions of dollars trying to extricate borrowers from high-cost loans, aid delinquent homeowners and stabilize neighborhoods. The results have been disappointing. The Obama Administration's signature loan-modification program has helped about 657,000 homeowners -- far short of its goal of 3 to 4 million. The program was a victim of its complexity and its inability to cope with overwhelming demand. Many families hit hardest by the housing downturn are concentrated in states that are having the most difficulty recovering from the recession, including Florida, Ohio and Nevada.

The government's call for ideas is a sign it is deluged with repossessions, commonly known as real-estate-owned properties or REO. "It's almost like having the captain of the Titanic go on the public address system and say, ‘Does anybody have an idea?'" says Mark Wiseman, a former director of Cleveland's foreclosure-prevention program. "It's not a confidence builder."''

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iehi-feed-52295 Fri, 27 Sep 2013 17:04:27 GMT U.S. Federal Housing Administration to tap $1.7 bln in taxpayer funds http://implode-explode.com/viewnews/2013-09-27_USFederalHousingAdministrationtotap17blnintaxpayerfunds.html iehi-feed-52290 Fri, 27 Sep 2013 13:58:21 GMT Loss-riddled FHA Will Need First-ever Cash Infusion, As Years of Slack Underwriting, SFDAPs Haunt It http://implode-explode.com/viewnews/2013-09-27_LossriddledFHAWillNeedFirsteverCashInfusionAsYearsofSlackUnderwr.html iehi-feed-52271 Wed, 25 Sep 2013 00:03:26 GMT 'Massive fraud' at center of trial against BofA over U.S. mortgages http://implode-explode.com/viewnews/2013-09-24_MassivefraudatcenteroftrialagainstBofAoverUSmortgages.html ``Filed in October, the lawsuit blames the bank for losses suffered by Fannie Mae and Freddie Mac on thousands of prime mortgages that later defaulted. Fannie and Freddie, government-sponsored enterprises that underwrite mortgages, were taken over by the government in 2008.

The Justice Department says the loans were pushed out through a Countrywide program called the "High Speed Swim Lane" - also called "HSSL" or "Hustle" - that began in 2007 amid rising mortgage delinquency and default rates and as Fannie and Freddie were tightening underwriting guidelines.''

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iehi-feed-52221 Wed, 18 Sep 2013 22:49:06 GMT Feds Bond Buying Continues as Economy Remains Fragile http://ml-implode.com/viewnews/2013-09-18_FedsBondBuyingContinuesasEconomyRemainsFragile.html The Federal Reserve announced today that they will not begin to taper their bond buying as the economy remains fragile. Just the mention of potential tapering has caused markets to become volatile and mortgage rates to rise over the summer months.

While most economists predicted that tapering would begin this quarter, the Feds surprised many with their announcement. Based on current economic data that is presenting mixed messages, the Feds have decided to wait for more evidence that the recovery will be sustained when tapering beings. It was mentioned that unemployment remains at unacceptable levels and inflation below the Feds objective. In addition, the current rise in home mortgage rates has become a threat to the housing industry recovery where any slow down can have an impact on the entire economy.

For several months, mortgage volume has dropped as rates have increased on the expectation that tapering would begin soon. Mortgage refinances have been dealt the biggest blow during this time which has already led to the announcement of layoffs by major lenders. However, in anticipation of possible higher rates, refinance application volume for week ending September 13th was at 61% of total volume as compared to 57% the week before, according to the Mortgage Bankers Association. HARP refinance applications continue to be strong and increased to 40% which is the highest since the MBA began tracking this information in 2012. From inception through the second quarter of 2013, 2,739,274 refinances have been done through the HARP refinance program.

Reported by the MBAA, total mortgage applications dropped 14% during the month of August. Applications for new home purchases were at 35,000 of which 17.3% were for FHA loans which are usually popular with first time home buyers. FHA mortgages, which have higher loan limits, were once used by many home buyers in lieu of jumbo loans. However, jumbo loan rates have dropped dramatically to levels at or below rates for conventional loans which has led many home buyers to take on jumbo financing.

The anticipation of tapering and the threat interest rates returning to normal levels has already shown signs of slowing the housing market. However, Federal Reserve Chairman, Ben Bernanke, stated that bond buying is tied to combined data that reflects growth, inflation and unemployment. He also stated that due to this the Feds do not have any fixed time schedule for tapering. He stated that he did not recall saying they would do anything in this meeting, but that they would do what is right for the economy. At this time, he is also concerned that a government shutdown or failure to raise the coming debt ceiling would have serious consequences.

In the end, predictions are just that and it's unfortunate that so much of the economy becomes affected by forecasting. It is inevitable that Fed tapering will begin at some point, but only when economic conditions improve and will done in a way not to cause harm to the economy. It is obvious that reacting to predictions can cause more harm to the economy than the act itself.

FreeRateUpdate.com researches and reports advertised rates of active lenders within the FreeRateUpdate.com network.

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