Daily News related to the Foreclosure Crisis

The biggest unpunished heist in human history - Max Keiser

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05/30/24

Academic Study Provides Hard Numbers to the Sick, Revolving Door Culture at Goldman Sachs, JPMorgan and Citigroup
On January 18, 2019 the Cambridge University Press published a stunning research paper from the Journal of Institutional Economics. The paper provides the hard numbers to support the thesis that federal banking and securities regulators have arrived at a deep understanding and acceptance that the more connections they acquire while working in government and the more prominent their position becomes – the fatter their future paycheck will be once they make the leap to a megabank on Wall Street.

05/30/24

These Two Commercial Foreclosures Speak Volumes About How Bad The Market Is
Two recent transactions involving failed class-A office properties in two different markets speak volumes about the depth of the commercial sector‘s crisis. Fort Worth's Burnett Plaza has dominated the city's skyline as its tallest building since 1983. In San Jose, the property at 3100 North First Street was similar to one of the city's premier commercial destinations. Both properties became distressed assets that sold for pennies on the dollar.

05/29/24

CFPB Releases Report Highlighting Junk Fees in Mortgage Servicing
On April 24, 2024, the CFPB unveiled its latest edition of Supervisory Highlights, shedding light on its ongoing battle against what it deems as “junk fees” imposed by mortgage servicers. The report highlights the CFPB’s ongoing concerns regarding the assessment of what it deems as “exploitative illegal fees” by mortgage servicers. Examiners from the agency identify various instances where mortgage servicers continue to levy such fees, ranging from unnecessary property inspection charges to improper late fees.

05/29/24

Hundreds of Thousands of Americans May See Mortgage Payments Double
Homeowners who secured cheaper, short-term mortgage rates could face higher monthly payments, in some cases almost doubling, this year as the term of their home loans comes to an end at a time when borrowing costs are elevated. Adjustable-rate mortgages, or ARMs, tend to offer relatively cheaper rates, but for shorter terms that could be between three to 10 years. After that, the borrower may be forced to pay market rates for a new loan, compared to the fixed rate that homebuyers typically get for a 30-year mortgage. In the current market, there are 1.7 million homes that were bought using ARMs secured since 2019, according to Bloomberg. Some of these loans may see their term mature this year, which could result in monthly payments going up.

05/29/24

Massachusetts AG Campbell discusses state's housing crisis
(WJAR) — The Massachusetts Attorney General Andrea Campbell and other state leaders toured a manufactured housing community in Taunton Wednesday morning. Campbell highlighted how her office is addressing the housing crisis in the Bay State. There are hundreds of homes like these tucked in the Oak Hill Housing Community in Taunton.

05/24/24

Wells Fargo offers $24K to family to move out of foreclosed home. They declined.
PALMER — A bank foreclosing on a town family now is offering them $24,000 in a moveout payment, but the longtime residents don’t want it, instead saying they just want their home — and can pay for it. The Kalogeras family of Palmer is expected to vacate their home by July 1 after a judge ruled in favor of their foreclosure. Two years ago, a Housing Court judge ordered the family to pay $1,000 each month in use and occupancy fees to the bank, according to court documents.

05/24/24

Riley Keough Appreciates Fast Legal Action in Foreclosure Threat: 'Anything to Protect Graceland' (Exclusive Source)
A source tells PEOPLE Riley Keough is "appreciative of the swift legal actions" behind halting the attempted foreclosure sale of Elvis Presley's Graceland estate The Daisy Jones & the Six star previously filed a lawsuit claiming Naussany Investments & Private Lending LLC's attempt to sell the property was "fraudulent" Tennessee Attorney General Jonathan Skrmetti recently announced that he would "[look] into" the mysterious company's attempt to sell Graceland
"Graceland is one of the most iconic landmarks in the State of Tennessee, and the Presley family have generously shared it with the world since Elvis’s passing," Skrmetti wrote in a press release on Thursday. Never miss a story — sign up for PEOPLE's free daily newsletter to stay up-to-date on the best of what PEOPLE has to offer??, from celebrity news to compelling human interest stories. "Elvis made Memphis the center of the music universe, and Graceland stands as a monument to his legacy and a fond remembrance for his family," he continued. "My office has fought fraud against homeowners for decades, and there is no home in Tennessee more beloved than Graceland." "I have asked my lawyers to look into this matter, determine the full extent of any misconduct that may have occurred, and identify what we can do to protect both Elvis Presley’s heirs and anyone else who may be similarly threatened," Skrmetti added.

05/23/24

Thousands Of U.S. Homes Foreclosed In April As Market Shows Mixed Recovery Signs
Thousands Of U.S. Homes Foreclosed In April As Market Shows Mixed Recovery Signs April saw a surge in home foreclosures, with thousands of properties repossessed nationwide. Last month saw an 8% increase in repossessions from the previous month, totaling over 2,900, despite a year-over-year decrease in foreclosure filings. States like Illinois, Pennsylvania, and California led with the highest numbers of completed foreclosures, highlighting regional disparities in economic recovery and housing stability. According to foreclosure data tracked by ATTOM, Illinois led the states with 244 completed foreclosures, followed by Pennsylvania with 241 and California with 233. The numbers, albeit lower than the previous year, represent a rise over the prior month, suggesting that certain areas are still grappling with the economic aftershocks of recent years.

05/23/24

Why Zombie second mortgages are threatening thousands of Americans' homes
A new NPR investigation finds thousands of homeowners face foreclosure over so-called zombie second mortgages. The loans come back to life after they get bought up by debt collectors.

05/23/24

Attorney General looking into attempted foreclosure of Elvis Presley’s Graceland home
Tennessee Attorney General Jonathan Skrmetti is looking into the attempted foreclosure auction of Elvis Presley’s iconic Memphis home, known as Graceland, by an alleged private investment company. On Wednesday, Naussany Investments and Private Lending LLC dropped its foreclosure efforts against Graceland. Danielle Riley Keough, Presley’s granddaughter and heir, filed a lawsuit earlier this month to halt the foreclosure sale claiming Naussany Investment’s paperwork was bogus and an attempt to defraud the family.

05/23/24

It looks like Graceland won't be auctioned off. But how did the possibility ever occur?
Amid the ongoing foreclosure debacle of the Graceland estate, Shelby County Register of Deeds said that they do not have a deed of trust on file for the property. A representative from the Shelby County Register of Deeds said that this was extremely uncommon and that a typical document filed during foreclosure proceedings like an assignment of substitute trustee or substitute trustee's deed were not on file in the office either. Wednesday morning, a Memphis judge ruled that a foreclosure auction of Elvis Presley’s iconic Graceland estate cannot proceed. Chancellor JoeDae Jenkins issued the ruling in Shelby County Chancery Court in Memphis. Representatives from the company behind the sale did not appear in court. Shortly after the hearing, The Daily Memphian reported that "someone claiming to represent the company," said in an email statement Naussany Investments and Private Lending would be dropping their case.

05/22/24

SEC Charges Intercontinental Exchange and Nine Affiliates Including the New York Stock Exchange with Failing to Inform the Commission of a Cyber Intrusion
Washington D.C., May 22, 2024 — The Securities and Exchange Commission today announced that The Intercontinental Exchange, Inc. (ICE) agreed to pay a $10 million penalty to settle charges that it caused the failure of nine wholly-owned subsidiaries, including the New York Stock Exchange, to timely inform the SEC of a cyber intrusion as required by Regulation Systems Compliance and Integrity (Regulation SCI).

05/22/24

Graceland foreclosure sale halted as Presley estate’s lawsuit moves forward
MEMPHIS, Tenn. (AP) — A judge on Wednesday said Elvis Presley’s estate could be successful in arguing that a company’s attempt to auction Graceland is fraudulent as he halted a foreclosure sale of the beloved Memphis tourist attraction. Later Wednesday, a statement from someone who appeared to be a representative of the company said it would drop its claim, which the Presley estate has argued is based on fake documents. Online court records did not immediately show any legal filings suggesting the claim had been dropped.

05/20/24

Graceland is headed for foreclosure as Elvis Presley's granddaughter fights sale and alleges fraud
Elvis Presley's Graceland Mansion, a popular tourist attraction and the singer's final resting place, is at the center of a court fight as it appears to be headed for a foreclosure auction later this week. But Elvis' granddaughter, actor Riley Keough, is fighting back with a lawsuit that alleges fraud.

05/20/24

The Curious Money Trail Behind the Supreme Court/Clarence Thomas Decision to Rescue a Federal Agency that Wall Street Hates
Last Thursday, in a stunning 7-2 win for the little guys and gals in America, the U.S. Supreme Court handed down its decision in Consumer Financial Protection Bureau et al v Community Financial Services Association of America, Ltd., et al. Making the decision all the more stunning, it was written by Clarence Thomas, the sitting justice who has been under withering attack in the press for selling out to special interests. (There is speculation that the Thomas name is on the decision to quiet the media uproar against him.) The two dissenting votes came from Justices Samuel Alito (target of a ProPublica investigation in 2023) and Neil Gorsuch, around whom conflicts of interest controversy is also swirling.

05/19/24

Housing experts revise mortgage rate forecasts for remainder of 2024
At the beginning of the year, housing experts and homebuyers looked forward to better buying conditions — interest rates were poised to drop, a shift expected to free up inventory and cool surging home prices. That outlook has mostly changed. Nearly halfway through 2024, the highly anticipated interest rate cuts have yet to happen, home prices are still growing, and affordability remains a challenge. "We all expected that at this point in the year, we would see stronger home sales activity, and interest rates [would be] down," Jessica Lautz, deputy chief economist at the National Association of Realtors (NAR), told Yahoo Finance. "[Rates] moved back up into the 7% range, and that does put a damper on home sales activity, and it changes who can purchase a home."

05/19/24

The Supreme Court ruled to protect the CFPB. Here's why it matters for your money
NPR's Tamara Keith speaks with Rohit Chopra, the director of the U.S. Consumer Financial Protection Bureau, about a Supreme Court decision that validated how the bureau is funded.

05/18/24

$384,000,000 To Be Handed To 191,000 Victims of Banking Giant’s Illegal Practices: Consumer Financial Protection Bureau
A US banking regulator says $384 million will soon be handed to victims of an online bank’s illegal practices. The Consumer Financial Protection Bureau says 191,000 people will receive the windfall of cash, which will be given to former customers of Texas-based Think Finance. The agency filed a lawsuit against the lender in 2017, accusing the company of tricking customers into repaying loans they did not owe. The firm’s loans in 17 states were considered illegal, void and uncollectable. Now, the CFPB says it’s beginning to distribute $384 million from its victims relief fund to support people who got caught in the scam.

05/16/24

The U.S. Government's Involvement In "Foreclosure Genocide" Revealed by William Paatalo
Late last year, in the U.S. Bankruptcy Court for the Eastern District of Washington, a proof of claim was filed on behalf of an alleged “secured creditor” named “U.S. Bank Trust, as Trustee of LB-Igloo Series IV Trust.” Subsequently, this alleged creditor filed the following proposed order, which surprisingly, was paid for by the “U.S. Treasury” as revealed in the docket.

05/14/24

CFPB v. Think Finance, LLC
We are the Consumer Financial Protection Bureau (CFPB), a federal government agency that enforces laws that protect consumers. In 2017, the CFPB sued Think Finance, LLC and six subsidiaries (collectively, the “Think Finance Entities”). For years, the Think Finance Entities managed three lenders: Mobiloans, Great Plains Lending, and Plain Green Lending. The Bureau’s lawsuit alleged that these businesses deceived people and broke licensing and lending requirements. As a result, their loans in 17 states are considered illegal, void, and uncollectable, according to the Bureau’s lawsuit. The Bureau’s lawsuit also stated that the Think Finance Entities helped two debt collection companies illegally collect loans.

05/13/24

Delinquencies on Office Property Loans at Banks Are at 8 Percent While Office Loans the Banks Sold to Investors Show 31 Percent in Trouble
On Friday, the Federal Reserve released its semiannual Supervision and Regulation Report on banks. Commercial real estate loans at banks – particularly on office properties – continued to rank high on the Fed’s list of concerns. The Fed included the chart above showing that delinquency rates on office property loans held by the banks had skyrocketed from just over 1 percent at the end of 2022 to over 8 percent as of December 31, 2023. (The red text and arrow have been added by Wall Street On Parade.)

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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