January 2014

Deutsche Bank’s Legal Costs Lead to Big Losses

January 22, 2014 Mark Cullen

From Deutsche Bank’s SEC Filings (Special thanks to Lisa Epstein):

….

Mortgage Repurchase Demands
From 2005 through 2008, as part of Deutsche Bank’s U.S. residential mortgage loan business, Deutsche Bank sold approximately US-$ 84 billion of private label securities and US-$ 71 billion of loans through whole loan sales, including to U.S.… [Read More]

Home Equity Credit Lines Force Big Losses for Regional Banks

January 22, 2014 Mark Cullen

From Kate Berry at American Banker:

A new report from Moody’s suggests that roughly a dozen regional banks are at risk of sustaining meaningful credit losses on home-equity lines of credit that were originated in the boom years and are scheduled to reset over the next three years.

[Read More]

Florida Hardest-Hit Fund ‘throws people into the grinder’

January 22, 2014 Mark Cullen

From The Guardian:

The Kamels, like others, have discovered the darker flip side of the mortgage crisis: some of the housing relief agencies funded by billions in taxpayer dollars to ease the millions of foreclosures in the US have fallen behind on the task, proving themselves no match for the persistence and legal power of banks intent on collecting fees and racking up foreclosures.

[Read More]

AN OVERVIEW OF THE U.S. HOUSING CRISIS IN 2013

January 16, 2014 Lynn Szymoniak

• 462,970 Foreclosures Completed In 2013
• ŸForeclosures Hit the Five Million Mark
Ÿ• 6.4 Million Homeowners Underwater
Ÿ• 180,000+ Homes Owned by Fannie Mae and Freddie Mac
Ÿ• American Home Ownership Falls to 18-Year Low
Ÿ• 44% of Settlement Funds Kept From Homeowners by States
Ÿ• Wall Street Turns Foreclosures into Rentals into Investments
Ÿ• Invitation Homes Now the Largest US Single-Family Home Landlord
Ÿ• No Solutions for Decimated County Land Records
Ÿ• No Criminal Prosecutions From the Mortgage Fraud Taskforce
Ÿ• Neighborhood Blight and Eminent Domain

FORECLOSURES IN 2013

In 2013, five years after the peak of the U.S.… [Read More]

DAVID STERN DISBARRED – SO LITTLE, SO LATE

January 10, 2014 Lynn Szymoniak

On Tuesday, January 7, 2014, the Florida Supreme Court disbarred David J. Stern, the Florida attorney who built a career and amassed a fortune representing banks in foreclosures. There was no battle.  Stern did not appeal a referee’s recommendation in October for disbarment.… [Read More]

LOCAL JUDGES DEFY FEDERAL & ATTORNEY GENERAL DEALS

January 10, 2014 Lynn Szymoniak

This is a very common scenario: After years of foreclosure litigation, a bank and a homeowner reach a truce.  Motivated by the very favorable terms of various national mortgage settlements, the bank agrees to a short sale.  The bank and the homeowner notify the court that they have reached an agreement and need 45 days to complete the closing so a new family can purchase the home, and the homeowners can finally walk away without having a substantial deficiency judgment follow them for years.… [Read More]