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In foreclosure controversy, problems run deeper than flawed paperwork…….

I’ve been running this story over at Poilticaldog101.com….

It keeps getting bigger and bigger….

Banks and Mortgage companies …

Foreclosing on home’s with out checking paperwork…

The story gets worst everyday….

Millions of U.S. mortgages have been shuttled around the global financial system – sold and resold by firms – without the documents that traditionally prove who legally owns the loans.

Now, as many of these loans have fallen into default and banks have sought to seize homes, judges around the country have increasingly ruled that lenders had no right to foreclose, because they lacked clear title.

These fundamental concerns over ownership extend beyond those that surfaced over the past two weeks amid reports of fraudulent loan documents and corporate “robo-signers.”

The court decisions, should they continue to spread, could call into doubt the ownership of mortgages throughout the country, raising urgent challenges for both the real estate market and the wider financial system.

For struggling homeowners trying to avoid foreclosure, it could mean an opportunity to challenge the banks they argue have been unhelpful at best and deceptive at worst. But it also threatens to leave them in prolonged limbo, stuck in homes they still can’t afford and waiting for the foreclosure process to begin anew.

For big banks, “there’s a possible nightmare scenario here that no foreclosure is valid,” said Nancy Bush, a banking analyst from NAB Research. If millions of foreclosures past and present were invalidated because of the way the hurried securitization process muddied the chain of ownership, banks could face lawsuits from homeowners and from investors who bought stakes in the mortgage securities – an expensive and potentially crippling proposition.

For the fragile housing market, already clogged with foreclosure cases, it could mean gridlock and confusion for years. And there is concern in Washington that if the real estate market and financial institutions suffer harm, it could force the government to step in again. Attorney General Eric H. Holder Jr. said Wednesday he is looking into the allegations of improper foreclosures, and Sen. Christopher J. Dodd (D-Conn.), chairman of the Senate banking committee, said he plans to hold hearings on the issue.

At the core of the fights over the legal standing of banks in foreclosure cases is Mortgage Electronic Registration Systems, based in Reston…..

More….



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October 7, 2010 Posted by | Blogs, Breaking News, Government, Home, Law, Media, Politics, The Economy, Updates | , , , , , | Leave a comment

The Federal Housing Administration is having trouble…..

The share of borrowers who are falling seriously behind on loans backed by the Federal Housing Administration jumped by more than a third in the past year, foreshadowing a crush of foreclosures that could further buffet an agency vital to the housing market’s recovery.

About 9.1 percent of FHA borrowers had missed at least three payments as of December, up from 6.5 percent a year ago, the agency’s figures show.

Although the FHA’s default rate has been climbing for months and eating into the agency’s cash, the latest figures show that the FHA’s woes are getting worse even as the housing market shows signs of improvement. The problems are rooted in FHA mortgages made in 2007 and 2008. Those loans are now maturing into their worst years because failures most often occur two to three years after a mortgage is made.

If the trend continues and the FHA’s cash reserves are exhausted, the federal government would automatically use taxpayer money to cover the losses — a first for the agency, which has always used the fees it charges borrowers to pay for its losses.

As these loans from 2007 and 2008 go bad and clear off of the FHA’s books, agency officials said, losses are expected to taper off, aided by the housing market’s anticipated recovery and an influx of more creditworthy borrowers, who have flocked to the FHA’s home-buying program in the past year.

Agency officials said they have cracked down on poorly performing lenders and announced higher qualifying fees for borrowers. On Monday, the agency projected that the fees should generate $5.8 billion in fiscal 2011, up from $2 billion this year. That would fatten the FHA’s cash cushion, used to cover unexpected losses.

The base agency has to get better…..no one can deny that…but its recovery is going to slow the recovery in the Housing markets…..

No one can deny that also…….

Update:……

Tuesday’s (2/2/10) stock gains came as a forecasting gauge of existing-home sales unexpectedly rose in December, according to a report suggesting the housing market is steadying after sharp swings caused by a government tax credit. The National Association of Realtors’ index for pending sales of previously owned homes increased by 1.0%, better than expectations for the sales to be flat.

February 2, 2010 Posted by | Breaking News, Government, Home, Other Things, The Economy, Updates | , , | Leave a comment

The Government is pulling back from providing help to the Mortgage markets….

For more than a year, the government pulled out the stops to revive home buying by driving down mortgage rates.

Now, whether the housing market is ready or not, the government is pulling out.

The wind-down of federal support for mortgage rates, set to end in two months, is a momentous test of whether the Obama administration and the Federal Reserve have succeeded in jump-starting the housing market and ensuring it can hold its own. The stakes for the economy are massive: If the market again falls into a tailspin, homeowners could face another wave of trouble, and it would deal a body blow to President Obama‘s efforts to get the economy on track.

Keeping the mortgage rates at historic lows, which required a commitment of more than $1 trillion, was viewed within the administration as a central plank of the economic strategy last year, senior officials said. Though the policy did not attract as much attention as rescue efforts to bail out banks, it helped revitalize home buying in some parts of the country and put money in the pockets of millions of homeowners who were able to refinance into lower monthly payments, the officials added.

The Dog noticed with alarm the fact that the FHA was going make things a bit harder for first time mortagage s……

Now another shoe is going to drop……

And Dog is afraid that moving in these ways may stop the slow recovery in its tracks and put the country into a second immediate down turn that would seriously hurt the country and certainly doom Obama to a one term and wreck any chance the Democrats have of keeping either houses in Congress……

Easy does it..might be the better course here…….

Update..…..Existing-home sales plunged in December, dropping lower than expected after three straight increases that were fed by a fat government tax credit.

Banks are making it difficult for some people to get loans. Joblessness in the U.S. is high, muting the economy’s recovery.

“The market is going through a period of swings driven by the tax credit,” NAR economist Lawrence Yun said. “We’ll likely have another surge in the spring as home buyers take advantage of the extended and expanded tax credit.”

Before the big drop last month, sales had gone up three straight times. Prices and borrowing costs are low. Plus, first-time buyers can get the $8,000 tax relief.

For all of 2009, there were 5.16 million home sales, up 4.9% from 4.91 million in 2008. It was the first annual sales gain since 2005.

November 2009 existing-home sales rose an unrevised 7.4%.

Realtors had expected a pullback in December. They see a sales surge in the spring. Whether sales keep recovering after the tax credit expires depends on employment in the U.S., Mr. Yun said. “The job market remains a concern and could dampen the housing recovery,” he said.

Question?…..will there be a uptic? …or will the governments gamble to save money…. and ween the financial markets off the government money, backfire and slow home sales?

January 25, 2010 Posted by | Breaking News, Government, Home, Media, PoliticalDog Calls, Politics, The Economy, Updates | , , , , | 6 Comments

The Feds are trying make mortagage closings more human……

You ever buy a house?

The closing is just one endless sign this…sign that…sign this…..write out a check for that……

Good Faith Estimates have been around for decades, but there was no standard format. Under the new rules, lenders and mortgage brokers will be required to give consumers the estimate forms within three days of receiving a loan application.

Lenders aren’t allowed to increase the origination fee from the estimate. Some other charges not included in the origination fee, such as title services and recording charges, can increase by as much as a combined 10% from the estimate. Estimates for other charges, such as homeowner’s insurance and other services provided by third parties selected by the borrower, aren’t subject to such limits.

Title insurance typically is the largest fee, and the new forms let consumers know they don’t have to accept the insurer suggested by the lender.  Title insurance can be “vastly overpriced” and consumers should take the time to shop for it.

Take it from me…You still are going come out from your lawyer’s office, or the bank happy after buying your dream house…..but, still thinking,What???

December 30, 2009 Posted by | Breaking News, Government, Home, Law, Politics, The Economy | , , , , | Leave a comment