A white paper released by the Fed that offered ways to revive the housing industry has drawn the ire of posturing Republicans in an election year. Among other treatments, the paper suggested reducing the principle on mortgages of “underwater” homeowners, and allowing Fannie Mae and Freddie Mac to buy-down mortgages they did not initiate. Meanwhile, [...]

Although big banks are forfeiting $26 billion to settle with the federal government over fraud charges, the main change will be an end to cranking out sleazy loans. “Robo-signing” is out as is shuffling borrowers from one loan officer to another. With the exception of Oklahoma, all states agreed to the settlement. For a pdf [...]

Present negotiations with big banks over reconciliation of sleazy mortgages would turn much of the enforcement over to states. Thus far, however, states have demonstrated a variety of stances toward banks with some pressing for larger settlements and other almost disinterested. In Galveston, NIMBYs fall out in droves to protest plans for construction of 50 [...]

Although big banks are forfeiting $26 billion to settle with the federal government over fraud charges, the main change will be an end to cranking out sleazy loans. “Robo-signing” is out as is shuffling borrowers from one loan officer to another. With the exception of Oklahoma, all states agreed to the settlement. For a pdf [...]

Reporters snooping into Freddie Mac’s business dealings discover that the quasi-governmental organization makes money by screwing homeowners it’s supposed to help. Refinancing loans to lower rates that make them more manageable by distressed homeowners reduces Freddie Mac’s revenues. The conflict-of-interest raises more questions about the usefulness of the organization to help foster homeownership. Meanwhile, the [...]

A settlement between big banks and the government is expected this week. Homeowners screwed by robo-signing and other sleazy scams may get $1,800 checks while up to a million with bloated mortgages may see the principles reduced. A new study based on a Louisville sample suggests that the high foreclosure rates in black neighborhoods is [...]

Foreclosure rates dropped by a third last year — but not because of better financial times for homeowners.  Fearing  federal  penalties for  sloppy or  fraudulent paperwork, bankers  slowed-down  their  lending processes, that  formerly included “robo signing.” In League City, the council narrowly  faced-down NIMBY opposition to a n affordable complex for seniors. For a pdf [...]

Anticipating a done-deal, government prosecutors are expanding an offer to banks to drop charges in exchange for billions of dollars to adjust mortgages for “under-water” homeowners. Meanwhile, Galveston shakers and movers find a new way to delay construction of public housing destroyed by Hurricane Ike three years ago. For a pdf version of the full [...]

As desperate families jostle for position in lines for public housing, Congress slashes federal housing programs by $3.8 billion. The housing shortage pre-dated the mortgage crisis and now the nationwide housing shortage is estimated at 3.5 million homes. For a pdf. version of the full articles, plus contextual stories on social, environmental and legal issues, [...]

Tuesday Report, Dec. 27, 2011 Special to the Texas Low Income Housing Information Service Corruption in the nation’s banking industry is profoundly illuminated by the current mortgage debacle that came more in focus as one of the themes of Occupy protesters. As the Occupy Movement retreats in the harsh winter, new information reveals that federal [...]

Tuesday Report, Nov. 1, 2011 Special to the Texas Low Income Housing Information Service As retribution for sleazy mortgage deals, federal housing authorities contemplate forcing major banks to cut mortgage debts by up to $25 billion. Critics say the deal does not bring justice for the abuses by the mortgage industry. For a pdf version [...]

Tuesday Report, Oct. 4, 2011 Special to the Texas Low Income Housing Information Service The federal program to rescue “underwater” homeowners is shutting down after a terrible start and a system so mired in red tape that few qualified. The program had helped about half of the 30,000 targeted homeowners. For the few who qualify, [...]

Mortgage defaults soar as bankers bear down on marginal borrowers. The 33 percent spike comes as Bank of America loses a court battle with a vice president who was fired for reporting fraudulent loan practices. For a pdf version of the full stories, plus contextual articles in social, environmental and legal areas, contact Bo McCarver [...]