In an internal memo dated Sept. 17 and marked “urgent,” brokers and agents of the company’s GMAC mortgage unit were ordered to immediately halt evictions. Ally, the nation’s fourth-largest home loan originator, may “need to take corrective action in connection with some foreclosures”
via washingtonpost.
LOS ANGELES—A federal judge here largely rejected efforts by three former top executives of Countrywide Financial Corp. to have the Securities and Exchange Commission’s civil-fraud case against them dismissed.
via WSJ.com.
After the mortgage meltdown caused the near-collapse of the U.S. economy, most of us assumed fraudsters would find a new racket.But assumptions can be dangerous, and it appears we were wrong.The Wall Street Journal just commissioned a study examining about seven million home loans made by hundreds of lenders, and it found mortgage fraud is back with a vengeance.
The folks at Esteemed Lending Services are out to teach people a lesson.
Esteemed Lending isn’t a mortgage lender at all. It’s a fictitious company. If it existed, it might have taken a lot of people for a ride down the road to ruin.
via latimes.com.
Three South Florida law firms that represent mortgage lenders are being investigated by the state attorney general over allegations they forged documents filed with the courts in foreclosure cases.
via - MiamiHerald.com.
Mr. Pallotta said he believes mortgage risk holders need to focus more on default that is “strategic” rather than due to affordability concerns, something Mr. Edmans indicates represents a departure from traditional thinking for the industry.
“They’re using an affordability platform to address a negative equity crisis,” Mr. Pallotta said. “If there’s too much negative equity borrowers are going to default, regardless of income and mortgage assets. I don’t think the owners of mortgage risk have their eye enough on the ball as far as negative equity.”
via bubbleinfo.com
Attorney General Eric Holder told a panel investigating the causes of the financial crisis that the FBI is investigating 2,800 mortgage fraud cases, nearly a fivefold increase since 2004. The announcement mirrors the fresh push by the Obama administration to pursue government-aided financial institutions.
Thousands of homeowners underwater on their equity have stopped making mortgage payments, not because they don’t have the money, but because they feel they can get away with it.
via Connecticut Watchdog.
