March 2014

WSJ: The Wrong Remedy for Fannie and Freddie

March 31, 2014 Lynn Szymoniak

From Josh Rosner at The WSJ:

More than five years after a mortgage mania led to a global financial crisis rivaling the Great Depression, Washington is finally turning to home-loan finance reform. Early in April the Senate Banking Committee will vote on a bill by Chairman Tim Johnson and ranking Republican Mike Crapo that claims to eliminate Fannie Mae and Freddie Mac, the government-sponsored enterprises that blurred the lines between public and private companies and were a central weakness of the pre-crisis system.

[Read More]

Banks Perform B & E On Paid-off Home, Change Locks

March 19, 2014 Lynn Szymoniak

From Local 10:

Mel and Harriet said they still feel violated three weeks after realizing someone broke into their home. But it wasn’t burglars that broke in, it was the bank.

When they returned to their home a lock box was on the door, the power was turned of, stickers were all over their stuff and the kitchen was cleaned out.

[Read More]

American Banker: CFPB Takes Aim at Zombie Foreclosures

March 13, 2014 Lynn Szymoniak

From Kate Berry at American Banker:

“The CFPB is beginning to look very closely at abandoned properties and zombie foreclosures,” Maggiano said Tuesday at a conference sponsored by the Federal Reserve Bank of Cleveland.

“There is direct borrower harm if a borrower believes a foreclosure on their property has been conducted and they are no longer responsible, and months or years later find out that they are, that there was never a foreclosure and they have large financial responsibilities that they never knew about.”
Consumer advocates have repeatedly asked the CFPB to address the issue, saying servicers are not complying with certain disclosure requirements to borrowers and anti-blight provisions that require banks to release the lien on a property or complete a foreclosure sale, rather than leaving a property in limbo.

[Read More]

CNN Money: Zombie Foreclosures Weigh On Housing

March 13, 2014 Lynn Szymoniak

What CNN Gets Wrong Here:

In most of these cases, the bank is at fault.  It is the bank abandoning the case, not the homeowner delaying the foreclosure through court pranks.  The homeowner often handed the keys over to the bank.… [Read More]

A Foreclosure Story from Lake Worth

March 3, 2014 Lynn Szymoniak

A local tv reporter has been doing a series on an abandoned bank owned house in Lake Worth.

The bank in this case is BOA.  The yard had become a dumping ground for garbage and trash, attracting rats to the neighborhood.  … [Read More]