Latest Mortgage News Headlines

Analysis of HOPE for Homeowners Program

The law firm of Weiner Brodsky Sidman Kider PC has prepared a white paper on the HOPE for Homeowners Program created under as part of the Housing and Economic Recovery Act of 2008. (free white paper - Oct. 10)

Lawsuit Dropped Against Illinois Sheriff

Accredited Home Lenders is backing away from a lawsuit against an Illinois sheriff that is refusing to perform evictions on foreclosed properties. (Oct. 10)

Inside Mortgage Fraud An attorney for the U.S. Department of Justice recently provided an inside look at the process involved in prosecuting a mortgage fraud case. While the government is looking to lock up ringleaders of mortgage schemes, industry insiders are their biggest targets. (Oct. 10)

New No. 1?

With Citigroup Inc. out of the way, Wells Fargo & Co. is on its way to becoming the biggest U.S. mortgage orginator with its potential acquisition of Wachovia Corp. But a problem portfolio and a $60 billion lawsuit loom over the deal. (Oct. 10)

Move by Sheriff Threatens Chicago Lending Bankers warn that a move by the sheriff's office to stop evictions on Chicago foreclosures could end up preventing new lending in the area.

Foreclosures Edge Lower

Loans entering the foreclosure process dipped last month, according to one foreclosure listing service. But filings were still nearly double the level a year earlier. (Oct. 9)

MTA at 30-Month Low

The monthly Treasury average now stands at its lowest point in three-and-one-half years. (Oct. 9)

Mixed Mortgage Market

Fixed rates fell, 1003 applications nudged higher and FHA activity jumped. As the yield on the 1-year adjustable-rate mortgage rose, the underlying 1-year Treasury yield tumbled. (Oct. 9)

TARP Gives Hope to Mortgage Sector

Combined with a recent improvement in subprime performance, the $700 billion plan for the U.S. Treasury Department to buy up mortgage assets has the potential to significantly help the mortgage business. (Oct. 8)

Default Servicing News

Several states are calling on subprime servicers to adopt streamline modifications that may cost one company more than $8 billion, while servicers of Federal Housing Administration loans are being warned about loss mitigation steps that are required to avoid damage assessments. And as some companies have emerged to help servicers deal with delinquent and foreclosed loans, one is looking to exploit lender compliance errors. (Oct. 8)

Judgment in Favor of Lenders on Escrow Interest

A recent opinion by Utah's highest court denied borrowers in a 33-year-old class-action case the right to earn interest on their mortgage escrow account. Federal preemption was cited in the decision. (Oct. 8)

Analysis of Economic Emergency Stabilization Act

A new white paper analyzed the recently passed H.R.1424, the Emergency Economic Stabilization Act of 2008, which was signed into law on Oct. 3, and the Troubled Asset Relief Program that enables the U.S. Treasury Department to purchase, manage and sell up to $700 billion toxic mortgage assets. (Oct. 8)

Red Flag Alert

With less than a month until mandatory implementation, service providers are lining up to help lenders comply with the new Red Flags Rules. Other mortgage compliance activity includes opposition remains fierce to proposed Real Estate Settlement Procedures Act changes. (Oct. 7)

Credit Trends Morph

A new report shatters the conventional wisdom that borrowers with a mortgage do a better job paying other types of credit. (Oct. 7)

U.S. Subprime Losses Projected at $1.4 Trillion

Global turmoil brought the financial markets to their knees last month, according to a new report that estimates global losses from the U.S. mortgage meltdown will now reach $1.4 trillion. (Oct. 7)

CitiMortgage Reduces Broker Business

CitiMortgage is slashing the number of mortgage brokers it does business with -- leading to hundreds of layoffs. Business from a smaller and more productive group of brokers will ultimately be channeled through offices in Missouri and Texas. (Oct. 7)

Broker Share, Loan Profits Decline

A new trade group report indicated broker share fell last year as retail and correspondent share rose. Mortgage bankers saw losses climb more than $500 for each loan they originated, though servicing profits per loan nearly doubled. (Oct. 7)

Lack of FHA Kills Ohio Firm A once-booming mortgage company that specialized in subprime refinances has shut down. The Ohio-based company's demise appeared to be tied to its lack of government loan programs. (Oct. 7)

BoA Originations Dive

If Bank of America Corp.'s originations are any indication, the latest quarter was a disaster for U.S. mortgage lenders. (Oct. 6)

Bad Loans, Bad Investments

Five Southern California mortgage brokers have been charged by the Securities and Exchange Commission with allegedly placing borrowers in unaffordable subprime loans to finance unsuitable securities -- earning commissions every step of the way. (Oct. 6)

Pres Candidate Sued Mortgage Lender A front-running presidential contender has previously filed a class action lawsuit against a mortgage lender that allegedly discriminated against African Americans. While an attorney with a Chicago law firm, Democratic candidate Barack Obama took on a national bank accused by his client of mortgage discrimination and redlining. Attorneys on the other side of the case said it wasn't exactly a victory for the respected senator from Illinois. (Feb. 23, 2007) read full story Countrywide Forecloses on Wrong Property After mistakenly foreclosing on the wrong Nevada property and disposing of all the personal belongings, the homeowners sued Countrywide Home Loans and were awarded $3 million. But the state's Supreme Court has reduced that judgment by more than half. The Nevada Supreme Court cut in half an award for damages in a wrongful foreclosure case. The court agreed with Countrywide's statutory interpretation arguments, and with its arguments against allowing plaintiffs to recover twice for a single wrong. (Sept. 29) read full story Bailout Satire Mortgage Lending has reached the pinnacle of pop culture. A skit on the latest Saturday Night Live provided a humorous but comprehensive overview of the mortgage crisis -- highlighting the roles of borrowers, Democrats and the former leaders of Golden West Financial Corp. The Sandler featured in this skit, however, was not Adam. (Oct. 6) FHA Changes Effective Today The timer on the home page of the Nehemiah Program's Web Site has expired -- indicating down payment assistance funded by home sellers is no longer available on loans insured by the Federal Housing Administration. But that isn't the only change on FHA loans effective Oct. 1. (Oct. 1) Mark-To-Market Guidance Issued Guidance issued today on mark-to-market accounting was cheered by bankers. (Sept. 30)