Daily News related to the Foreclosure Crisis

The biggest unpunished heist in human history - Max Keiser

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05/10/24

U.S. regulators call for new fund to prevent mortgage servicers from going under
'Vulnerabilities of nonbank mortgage companies can amplify shocks in the mortgage market and undermine financial stability,' Treasury Secretary Yellen says U.S. regulators are calling on Congress to introduce a new industry-financed fund to support mortgage-loan servicers as they weather a drought in demand due to high mortgage rates. The multiagency?? Financial Stability Oversight Council, which is chaired by Treasury Secretary Janet Yellen, released a new report on Friday that highlights the risks associated with nonbank mortgage-loan servicers making strong gains in market share. The FSOC was created in the wake of the 2008 financial crisis by the Dodd-Frank Act, to identify and monitor risks to the U.S. economy. Nonbank mortgage lenders originated around two-thirds of mortgages in the U.S. in 2022, the report stated, and owned the servicing rights on 54% of mortgage balances. These companies have increased their market share from a low in 2008, when they only originated 39% of mortgages and owned the servicing rights to just 4% of mortgage balances, the report noted. These outstanding mortgages are guaranteed by government enterprises Fannie Mae and Freddie Mac, as well as government agency Ginnie Mae.

05/10/24

US Treasury’s Yellen says Congress should act on nonbank mortgage sector
(Reuters) – U.S. Treasury Secretary Janet Yellen on Friday called for Congress to give regulators more power to oversee the growing nonbank mortgage industry, which she said presented unique risks to financial stability. Yellen spoke during a meeting of the Financial Stability Oversight Council, a regulatory body she chairs and which was created after the 2007-2009 financial crisis. It is tasked with managing risks to the financial system. The council, whose members head other top financial regulators, voted unanimously to approve publishing a report and related recommendations on the issue.

05/10/24

State Banking Representative Superintendent Adrienne A. Harris Statement on FSOC Nonbank Mortgage Servicing Report
First, I would like to acknowledge the work of the FSOC Secretariat, Federal Reserve, and Ginnie Mae staff who led the drafting of the report. I am proud to be here today representing the CSBS and my fellow state financial regulators. Having the state perspective here today is critical because states are the primary prudential regulators of nonbank mortgage companies. This market has changed considerably since the 2008 financial crisis. In 2008, nonbank mortgage companies had servicing rights on four percent of mortgages. Fourteen years later, in 2022, that had increased over 13 times to 54 percent of the market. Along with that period of enormous growth, market participants have experienced a rapidly changing credit environment and market conditions.

05/10/24

MBA Statement on FSOC’s Report on Mortgage Servicing
WASHINGTON, D.C. (May 10, 2024) — MBA’s President and CEO Bob Broeksmit, CMB, released the following statement regarding the Financial Stability Oversight Council’s (FSOC) report released today on nonbank mortgage servicing: “MBA agrees with the report’s analysis of the critically important role independent mortgage banks (IMBs) play in the mortgage market: lending to, and servicing loans for, a majority of first-time and low- and moderate-income homebuyers.

05/10/24

Zombie 2nd mortgages are coming back to life
Karen MacDonough of Quincy, Mass., was enjoying her tea one morning in the dining room when she sees something odd outside of her window: A group of people gathering on her lawn. A man with a clipboard tells her that her home no longer belongs to her. It didn't matter that she'd been paying her mortgage for 17 years, and was current on it. She was a nurse with a good job and had raised her kids here. But this was a foreclosure sale, and she was going to lose her house.

05/07/24

JPMorgan Chase and Its Regulators Are Hiding Dark Trading Secrets at the Largest and Riskiest U.S. Bank
Last Wednesday, JPMorgan Chase, the publicly-traded parent of the largest federally-insured bank in the United States as well as a five-count felon, revealed in a filing with the Securities and Exchange Commission that on top of the $348 million it paid out in March to two of its banking regulators for sketchy trading violations involving “billions” of trades on 30 global trading venues, it “expects to enter into a resolution with a third U.S. regulator that will require the Firm to, among other things, pay a civil penalty of $100 million….” (See “Trading Venues Investigations” on page 168 of the SEC filing at this link.) JPMorgan Chase did not name this third regulator but Bloomberg News reported that it is the Commodity Futures Trading Commission.

05/07/24

Update: Fannie Mae Guidelines Raise Concerns, Could Bar ACV Coverage for Homes
An updated guideline from Fannie Mae, if it stands, could throw a wrench into the property-casualty insurance industry’s move toward actual cash value for more homeowners and condo coverage.
A Fannie Mae spokesperson said the government-backed mortgage corporation, which supports a large share of the U.S. mortgage market, has clarified a long-standing guideline that requires that insurance polices provide replacement value coverage for most homes with mortgages.

05/06/24

How America's Pent-up Housing Demand Will Be Unleashed
cooling down of the U.S. labor market could encourage the Federal Reserve to finally lower interest rates, National Association of Realtors' Chief Economist Lawrence Yun told Newsweek. This, in turn, could lower mortgage rates and unleash the pent-up demand from aspiring homebuyers.

05/02/24

Your Mortgage Servicer Is Changing: Why This Matters and What to Do
When you take out a home loan, you expect that mortgage to be with you long term. Most mortgages come with a term of at least a decade, and a 30-year term is common. But that doesn’t necessarily mean you’re in a long-term relationship with your mortgage servicer. You don’t get to change your mortgage servicer—the company you send your mortgage payments to—unless you refinance with a new lender. But the servicer could sell your loan to a different company. At that point, you’ll need to figure out how to work with the new company to get your payments in on time. This can be a headache for borrowers, but when you know what to expect, it gets a little easier.

05/02/24

Wall Street’s Megabanks Have Trillions of Dollars Off-Balance Sheet, in a Replay of Accounting Hubris that Led to the 2008 Wall Street Collapse
When the Financial Crisis Inquiry Commission released their final forensic report on the causes of the 2008 financial collapse on Wall Street – the worst collapse since the 1929-1932 collapse – it pointed to hidden leverage in off-balance sheet entities at the megabanks on Wall Street as a key driver of the crisis. It wrote:

05/01/24

Inside Zillow’s failed housing market bet: 30,000-plus homes acquired, 5,000 sold to Wall Street landlords
On October 12, 2021, in a sprawling desert community just 7 miles southwest of the Las Vegas Strip, Zillow closed a sale on a four-bedroom home at 7456 Grizzly Giant St. Just five days later, Zillow paused its iBuyer program, and on November 2, 2021, it shuttered the program altogether. Not long afterward, sources told me that Zillow was selling many of the homes from its books to institutional homebuyers. However, the final figures hadn’t been reported. To find out how many of these homes Zillow sold to large corporate landlords, ResiClub reached out to SFR Analytics, a residential real estate analytics firm.

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