DOJ receives rare praise in financial crisis cases By Aruna Viswanatha        Reuters       May 25, 2012 One part of the Justice Department has been receiving something in short supply for those investigating conduct tied to the financial crisis: praise. A unit in the civil rights division focused on discrimination in the housing market has been churning [...]

A news analysis of Texas’ allocation of federal housing funds shows the process fosters continued segregation. Although the HUD programs are intended to break up concentrations of poverty households, placement of tax-incentive projects and other low-income housing in more affluent neighborhoods is usually blocked by protesting residents. For a pdf version of the full stories, [...]

Tuesday Report, April 17, 2012 Special to the Texas Low Income Housing Information Service Wrangling between the Galveston Housing Authority and the General Land Office continues after the authority posited a new plan that would potentially fund market-rate units. The land office now threatens to pursue its own options for rebuilding public housing destroyed three [...]

Special to the Texas Low Income Housing Information Service by Bo McCarver A few economists are now saying that the housing market is stabilizing – but recovery from the bust is slow as 23 percent of mortgages are underwater and home prices still exceed what most potential buyers can borrow. A new report shows that [...]

Compiled by Bo McCarver. Special to the Texas Low Income Housing Information Service As default notices and foreclosures continue, the Federal Reserve prepares to fine eight more banks for making sleazy mortgages. But punitive actions do little to help “underwater” homeowners, some of whom have mounted a demonstration in Fort Worth. Meanwhile, the TARP bailout [...]

Another federal program to help beleaguered homeowners has fizzled: after two years, less than 3 percent of a $7.6 billion program to help unemployed homeowners has been spent. In Galveston, another effort has been mounted to stall rebuilding public housing that was destroyed three years ago in Hurricane Ike. U.S. Rep. Ted Poe is calling [...]

Market analysts, eager to see silver linings after years of dark news, perceive a recovery in the housing industry as inventories decline. The market, however, belongs to those who can pay cash up front; those seeking mortgage loans are still crippled by a general reluctance of bankers to invest. For a pdf version of the [...]

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 [...]

Economists present mixed views of the housing industry with some saying it will get worse before it gets better and others claim the inverse. Meanwhile, record-low interest rates do nothing to increase sales because thresholds for qualifying for loans are beyond the reach of most would-be homeowners. For a pdf version of the full stories, [...]

In order to increase the value of occupied houses, banks are now financing the demolition of some that aren’t. In Cleveland, big lenders will pay for half of the 700 houses schedule for demolition this year with the land going into a local land banking organization. For a pdf version of the full stories, plus [...]

Depressed home sales nationwide signal that the end of the recession is nowhere near. Record low interest rates at 3.75 percent mean little as incomes shrink and living expenses rise. In Texas, the head of TDHCA resigns amid accusations of slow progress in addressing housing losses from Hurricane Ike. Meanwhile, conservatives on Galveston Island continue [...]

Stale sales in the housing industry continue to spook builders as potential buyers are increasingly squeezed-out by the general economic turndown. Meanwhile, unsold houses are converted to rental units and solvent mortgage holders are refinancing at record-low rates. For a pdf version of the full stories, plus contextual articles in social, environmental and legal areas, [...]

As Congress finally acts, analysts are still pouring over the impacts of the debt-ceiling package — but a general belt-tightening is assured. The compromise includes spending cuts of $900 billion over 10 years on discretionary items — primarily education, housing and transportation programs. In Galveston, conservatives still fight the rebuilding of public housing on the [...]

As the clock ticks down on dealing with the nation’s debt ceiling, nervous investors speculate on impact the political resolution will have on cheap interest rates that have kept the feeble housing industry on life support. Freddie Mac reports that lending rates are slightly up but steady. A new study by the Pew Research Center [...]

Mortgage companies are finding that sleazy habits are hard to break as robo-signings continue. Federal regulators have seen no change in the production of fraudulent closing documents. Texas is now second in the nation in costs for mortgage closings with average fees at $4,994; trailing only New York at $6,183. For a pdf version of [...]

Tuesday Report, July 12, 2011 Special to the Texas Low Income Housing Information Service More corporate sleaze oozed into the news this week as courts favored charges of fraud by investors and homeowners. Bank of America will be tried for failing to help modify loans under the HAMP program while Wells Fargo was convicted of [...]

Tuesday Report, July 5, 2011 Special to the Texas Low Income Housing Information Service Two big banks are now taking re-emptive measures to head off mortgage defaults. J.P Morgan and Bank of America are now searching-out risky loans and contacting the borrowers to lower the principles that were often inflated during the housing boom. In [...]