Daily News related to the Foreclosure Crisis

The biggest unpunished heist in human history - Max Keiser

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12/26/24

Mortgage Delinquencies Jumped 8 Percent in November
Mortgage Technology’s First Look report. As of the end of the month there were about 2.027 million residential properties in some stage of delinquency (30 days or more past due but not in foreclosure) – an increase of about 159,000 compared with the previous month and up about 224,000 compared with a year earlier. About 3.74% of all loans were in some stage of delinquency. Year-over-year, delinquencies were up 10.46%. Serious delinquencies (90 days or more past due but not in foreclosure) also increased. They totaled about 512,000, as of the end of November – an increase of about 32,000 compared with the previous month and up about 53,000 compared with a year earlier. While much of November’s spike was driven by seasonality, post-hurricane distress, and a late-in-the-month Thanksgiving, delinquencies more broadly continue to rise from recent year lows, ICE says in its report.

12/23/24

9 explosive mortgage suits 2024: poaching, fraud and more
This past year saw numerous brow-raising conflicts erupt within the mortgage industry. Rival mortgage lenders sent litigation flying against one another with accusations being made of loan officer poaching and of trade secrets theft. Some of these suits were settled before year-end, while others remain pending in federal courts. Former employees sued former mortgage lenders for alleged unfair practices and a top loan officer and his assistant got dinged for alleged large scale mortgage fraud. Additionally, an expose from a start-up publication outlining alleged practices by the top lender in the nation sent the industry into a tizzy. Here's a breakdown of the most high profile legal battles between lenders and other entities over the past year.

12/19/24

FHFA Releases 3rd Quarter 2024 Foreclosure Prevention and Refinance Report
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its third quarter 2024 Foreclosure Prevention and Refinance Report. The report shows that Fannie Mae and Freddie Mac (the Enterprises) completed 43,459 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 7,047,721 since the start of conservatorships in September 2008.

12/19/24

Taking Foreclosures Beyond Judicial And Non-Judicial Actions
The Five Star Institute’s Legal League has announced the launch of its latest White Paper, Non-Uniform Foreclosures. Legal League is a professional association of financial services law firms spread out across the U.S. The Legal League is uniquely positioned to drive progress in the mortgage servicing industry. Legal League members provide a clear view of the legal landscape and the expertise to navigate it, committed to supporting its membership through education, communication, relationship development, and advisory services. Non-Uniform Foreclosures was inspired by a discussion on the rise in reverse mortgages being referred to foreclosure, as well as the processes for completing a foreclosure on tribal lands. Prepared by the Legal League Special Initiatives Working Group (SIWG), Non-Uniform Foreclosures was written by Jennifer Rogers Esq., Managing Attorney with IDEA Law Group LLC, and Chair of Legal League’s SIWG; Michelle Garcia Gilbert Esq., Managing Partner with Gilbert Garcia Group PA and Member of the SIWG; Stephen M. Hladik Esq., Partner with Hladik, Onorato & Federman LLP, Member of the SIWG and Chairman of Legal League; and J. Anthony Van Ness Esq., Founder and Managing Attorney with Van Ness Law Firm PLC, and SIWG Member.

12/18/24

CFPB calls out mortgage servicers for ‘doom loop’
New report shows homeowners caught in a “customer service doom loop” after a major life event like death or divorce The Consumer Financial Protection Bureau (CFPB) this week released a new report finding that mortgage companies often “create obstacles” for homeowners, leading to what it calls a “customer service doom loop” if a death or divorce impacts the original borrower of a mortgage loan.

12/18/24

Mortgage trigger lead ban passes Senate
Despite a recent setback, the Senate has passed the Home Buyers Privacy Protection Act, a bipartisan bill aimed at eliminating the misuse of "trigger leads" in mortgage transactions. The bill’s intent is to address widespread concerns about the sale of "trigger leads", which occur when a consumer’s credit inquiry triggers the sale of their information to third-party lenders. Such practices often result in an influx of unsolicited, and sometimes predatory, communications. The National Association of Mortgage Brokers (NAMB) praised the Senate’s efforts, emphasizing the importance of protecting homebuyers from unsolicited and misleading communications.

12/17/24

Homeowners face problems with mortgage companies after divorce or death of a loved one
Each year, people become homeowners following divorce or the death of a spouse or family member, rather than purchasing the home directly. These homeowners could be surviving spouses, adult children who inherit a family home, domestic violence survivors, or recently divorced parents with young children. If there is a mortgage on the home, these homeowners must act quickly to make mortgage payments in order to avoid foreclosure. And the homeowner may in some circumstances wish to assume liability for the mortgage.

12/17/24

CFPB Report Finds Mortgage Companies Create Obstacles for Homeowners After Death or Divorce
Today, the Consumer Financial Protection Bureau (CFPB) issued a report on the experiences of homeowners dealing with their mortgage company after divorce or the death of an original borrower. Many homeowners report that their servicers push them to take on new, higher-interest loans instead of keeping their existing mortgage. Homeowners also report recurring requests from servicers for the same or updated documents extending over months and sometimes years, at the same time they are dealing with the death of a loved one or a divorce. Domestic violence survivors face additional challenges, including mortgage companies continuing to send critical mortgage information to the abuser and thus putting the survivor’s safety at risk. Servicers generally blame investor requirements, processing volumes, or “systems issues,” rather than taking responsibility for their shoddy customer service.

12/16/24

A question that has become prevalent in Pennsylvania foreclosure of late has been, does a borrower have a right to a jury trial for in rem actions in foreclosure?
This has particularly come to light as an opinion from the Philadelphia Court of Common Pleas stated a borrower does have such a right in U.S. Bank National Association, not in its Individual Capacity but Solely as Trustee for the NRZ Pass-Through Trust XIV v Wright, August Term 2020, No. 2826 (Phila. C.C.P. February 16, 2024) (hereinafter “Wright”).

12/13/24

Texas Passes Law Expanding Mortgage Borrower Protections
Effective November 23, 2024, the Texas Department of Savings and Mortgage Lending (the “DSML”) adopted new rules affecting mortgage loan companies, mortgage bankers, individual residential mortgage loan originators, and mortgage servicers. A brief summary of the new rules as they impact different types of organizations or mortgage loan originators is set forth below:

12/12/24

Why is the US in a housing crisis, and what can be done about it?
In the United States, 1 in 4 renters spends over half their income on rent, and millions of potential homebuyers can’t find a home within their price range, according to Harvard University’s Joint Center for Housing Studies. Put simply, there are far more people trying to find housing than there are places to buy or rent, pushing prices beyond what many can afford. It’s striking how universal the issue has become for renters, says Alexander Hermann, senior research associate at the center. Zillow estimates that 4.5 million fewer homes are available than the number of Americans likely to be looking to either rent or buy. Rents are “increasing for households of every race and ethnicity,” he says. “They’re increasing for households who are employed. They’re increasing for households at every age. It’s not just any one group that’s experiencing greater affordability challenges. It’s basically everyone on the renters’ side.” WHY WE WROTE THIS More people are seeking homes than there are places to buy or rent, which contributes to high prices. Here’s what led to the housing crisis, and some potential solutions.

12/09/24

IRVINE, Calif. — Dec. 10, 2024 — ATTOM, a leading curator of land, property data, and real estate analytics, today released its November 2024 U.S. Foreclosure Market Report, which shows there were a total of 29,390 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions – down 9 percent from a year ago, and down 5 percent from the prior month. “The slight decline in U.S. foreclosure activity during November most likely reflects the seasonal ebb we often see this time of year,” said Rob Barber, CEO at ATTOM. “While foreclosure filings are down both month-over-month and year-over-year, the data highlights areas of the country, such as Nevada, Florida, and Connecticut, where foreclosure rates remain relatively high. As we move into 2025, we’ll be closely monitoring how economic pressures and market dynamics may influence a potential rebound in activity.”

12/06/24

HUD Extends Foreclosure Moratoriums in Areas Devastated by Hurricanes Helene and Milton
WASHINGTON - Today, the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) announced it is extending through April 11, 2025, its foreclosure moratoriums for FHA-insured Single Family Title II forward and Home Equity Conversion Mortgages in Presidentially Declared Major Disaster Areas (PDMDAs) declared as a result of this past summer’s Hurricanes Helene and Milton. This extension provides borrowers affected by these catastrophic events with additional time to access federal, state, or local housing resources; to consult with a HUD-approved housing counselor; and/or to rebuild their homes. “When disaster strikes, we know that families and communities need not only resources, but time to recover,” said HUD Agency Head Adrianne Todman. “Today, by extending our foreclosure moratorium, we continue the Biden-Harris Administration’s efforts to help those affected by the catastrophic Hurricanes Helene and Milton to repair and rebuild their homes, communities, and lives.”

12/05/24

Rocket Mortgage Sues United States Department of Housing and Urban Development DETROIT, Dec. 5, 2024 /PRNewswire/ -- Rocket Mortgage, the nation's largest mortgage lender and a part of Rocket Companies (NYSE: RKT), filed suit in Federal District Court against the United States Department of Housing and Urban Development (HUD) to correct conflicts between the government's regulations requiring appraiser independence and its enforcement actions seeking to hold lenders liable for the conduct of independent licensed appraisers. Rocket Mortgage also filed a motion to dismiss the claim the DOJ brought against the company based on the same regulatory conflicts and misapplication of applicable law.

12/05/24

Everybody Should Get Used to these Mortgage Rates, Says Fannie Mae CEO: Mortgage Rates, 10-Year Treasury Yields, QT, and Spreads
“It’s important for mortgage investors, the housing market, and consumers to understand that it is unlikely we will again see the low mortgage rates we had during the COVID-19 pandemic, when a unique combination of monetary and fiscal policy sent rates to near all-time lows,” wrote Priscilla Almodovar, the CEO of Fannie Mae, the largest of the Government Sponsored Enterprises that have been in conservatorship of the federal government since the mortgage crisis. They buy mortgages from lenders, guarantee them, package them into MBS, and sell the MBS to investors around the globe. “In fact, current mortgage rates and Fannie Mae’s forecast for 2025 rates are well in line with rates over the past several decades. Since 1990, the 30-year fixed-rate mortgage has averaged 6%,” she said in the post published by MarketWatch today. In fact, the average 30-year fixed mortgage rates were never below 5% in the data from Freddie Mac, which goes back to 1971, until the Fed started buying MBS in January 2009, which pushed mortgage rates below 5% for the first time ever.

12/02/24

A New Housing Clash Is Coming Involving Two National Mortgage Giants And It Could Push Mortgage Costs To Even More Unaffordable Levels
The Trump administration's latest push to end government conservatorship of Fannie Mae and Freddie Mac has the housing world abuzz – and for good reason.

12/03/24

The Fed Rings a Warning Bell: Hedge Funds and Life Insurers Are Reporting Historic Leverage
The semi-annual Financial Stability Report released recently by the Federal Reserve Board of Governors rang a loud warning bell about high levels of leverage at hedge funds and life insurers.
Wall Street watchers will no doubt recall that in 2008, during the worst Wall Street collapse since the Great Depression, Bear Stearns went under after it blew up two internal hedge funds the prior year and the giant life insurer, American International Group (AIG), blew itself up by acting as a counterparty to Wall Street’s derivative schemes and had to be taken into receivership by the U.S. government. On the matter of leverage at hedge funds, the Fed wrote this in its most recent Financial Stability Report:

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