http://www.nytimes.com/2010/10/01/business/01mortgage.html?_r=1&ref=business Evictions are expected to slow sharply, housing analysts said, as state and national law enforcement officials shine a light on questionable foreclosure methods revealed by two of the country’s biggest home lenders in the last two weeks. Even lenders with no known problems are expected to approach defaulting... [more]
http://www.nytimes.com/2010/10/01/business/01mortgage.html?_r=1&ref=business
Evictions are expected to slow sharply, housing analysts said, as state and national law enforcement officials shine a light on questionable foreclosure methods revealed by two of the country’s biggest home lenders in the last two weeks.
Even lenders with no known problems are expected to approach defaulting homeowners more cautiously and look more aggressively for resolutions short of outright eviction.
“The way the plaintiffs’ lawyers have handled this has corrupted our legal system,” said Thomas Cox, a Maine lawyer whose deposition of a GMAC executive in June helped prompt the current disclosures. “They tried to manufacture foreclosures the way you’d manufacture cars, on an assembly line. It can’t be done that way.”
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Response by Riversider
almost 16 years ago
Posts: 13573
Member since: Apr 2009
Of course the whole foreclosure system is in chaos....
A top federal bank regulator said Thursday that he has directed seven of the nation's largest lenders to review their foreclosure processes after learning about the widespread mishandling of homeowner evictions by the industry.
John Walsh, acting director of the Office of the Comptroller of the Currency, told lawmakers during a hearing on the financial regulatory overhaul enacted this summer that some lenders "clearly had deficiencies" in their system for foreclosures.
The banks contacted by regulators include J.P. Morgan Chase, which announced Wednesday that it was freezing 56,000 foreclosures after finding errors in its preparation of documents, according to OCC spokesman Kevin Mukri. Other lenders contacted include Bank of America, Citibank, HSBC, PNC Bank, U.S. Bank and Wells Fargo.
The paperwork problems range from potentially forged documents to bank employees who never read borrowers' files before signing off on an eviction.
Bernanke said that "it's been a managerial challenge to the banks to deal with these foreclosure modifications." And, he added, "they haven't always met that challenge."
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Response by stevejhx
almost 16 years ago
Posts: 12656
Member since: Feb 2008
Now Riversider wants to make it possible to foreclose on a home without even proving you have a lien on it.
OMG. Where is due process, Riversider?
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Response by Riversider
almost 16 years ago
Posts: 13573
Member since: Apr 2009
Forging documents is never right. The securitization machine clearly was not ready for what's going on today. It's a shame that investors and home owners not in default are now getting screwed. Foreclosure mills are wrong, if they are faking documents they need to be prosecuted. But the home-owners not paying their mortgages are clearly laughing their ass off at a couple of extra months free rent.
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Response by Mpancheri
almost 16 years ago
Posts: 32
Member since: Oct 2007
So are the banks involved in this fiasco going to write down some assets, or will they continue to forge their balance sheets?
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Response by Riversider
almost 16 years ago
Posts: 13573
Member since: Apr 2009
Ban balance sheets are alaws suspect. Just think what citibank's balance sheet looked like before they collapsed the last time around.... I think they call it mark to make believe
looks like the mark to market is dead. FAB folded....
Why? Because the folks who have the most to lose by forced transparency have complained! What a stupid reason to fold by the FASB.
"Thus far, I think the count is up to about 1,500 or so comment letters," said Lawrence Smith, a board member of FASB, which sets U.S. accounting rules. "I think I've read one that supports what we propose."
Of course the whole foreclosure system is in chaos....
http://www.youtube.com/watch?v=AqnHLDeedVg&feature=player_embedded
http://www.washingtonpost.com/wp-dyn/content/article/2010/09/30/AR2010093006563.html
A top federal bank regulator said Thursday that he has directed seven of the nation's largest lenders to review their foreclosure processes after learning about the widespread mishandling of homeowner evictions by the industry.
John Walsh, acting director of the Office of the Comptroller of the Currency, told lawmakers during a hearing on the financial regulatory overhaul enacted this summer that some lenders "clearly had deficiencies" in their system for foreclosures.
The banks contacted by regulators include J.P. Morgan Chase, which announced Wednesday that it was freezing 56,000 foreclosures after finding errors in its preparation of documents, according to OCC spokesman Kevin Mukri. Other lenders contacted include Bank of America, Citibank, HSBC, PNC Bank, U.S. Bank and Wells Fargo.
The paperwork problems range from potentially forged documents to bank employees who never read borrowers' files before signing off on an eviction.
Bernanke said that "it's been a managerial challenge to the banks to deal with these foreclosure modifications." And, he added, "they haven't always met that challenge."
Now Riversider wants to make it possible to foreclose on a home without even proving you have a lien on it.
OMG. Where is due process, Riversider?
Forging documents is never right. The securitization machine clearly was not ready for what's going on today. It's a shame that investors and home owners not in default are now getting screwed. Foreclosure mills are wrong, if they are faking documents they need to be prosecuted. But the home-owners not paying their mortgages are clearly laughing their ass off at a couple of extra months free rent.
So are the banks involved in this fiasco going to write down some assets, or will they continue to forge their balance sheets?
Ban balance sheets are alaws suspect. Just think what citibank's balance sheet looked like before they collapsed the last time around.... I think they call it mark to make believe
looks like the mark to market is dead. FAB folded....
Why? Because the folks who have the most to lose by forced transparency have complained! What a stupid reason to fold by the FASB.
"Thus far, I think the count is up to about 1,500 or so comment letters," said Lawrence Smith, a board member of FASB, which sets U.S. accounting rules. "I think I've read one that supports what we propose."
http://brucekrasting.blogspot.com/2010/09/fasb-to-fold-on-mark-to-market.html
Bullish for banks and hence banker's bonus and hence nyc re?