It’s been clear for a long time that the decimation of the U.S. economy couldn’t have occurred without the ratings agencies that were charged with determining how risky all of those mortgage-backed investment products might be. And, since it was very hard to believe that agencies which had successfully performed this role for decades had simply suddenly forgotten how to …
More Speakers Added to New UCC Sessions
We are excited to let you know that we have two more additions to our already amazing list of speakers for The ABC’s and UCC – What you need to know about how the UCC impacts foreclosure defense. Added to the New York seminar is The Hon. Samuel L. Bufford. He is currently a Distinguished Scholar in Residence at Penn …
Jesse Eisinger Discusses Merrill Lynch’s Internal “Subsidy”
A podcast from ProPublica. This week, Jesse Eisinger sits down with us to discuss Merrill Lynch and how its decision to internally boost demand for their money-losing securities nearly cost the banking giant everything. Eisinger explains what Merrill staffers meant by “a million for a billion,” which executives knew about the plan and whether it was legal. Oddly enough, there …
California AG Brown Reaches $2 Billion Settlement With Wells Fargo on Risky ARMs
Via National Mortgage Professional Magazine. Attorney General Edmund G. Brown Jr. has announced that Wells Fargo has agreed to provide loan modifications worth more than $2 billion to thousands of California homeowners with “pick-a-pay” loans and to pay an additional $32 million to thousands of borrowers who lost their homes through foreclosure. None of the loans were made by Wells Fargo. …
The Monster Tells How Predatory Lending Fleeced America
Via the Consumer Warning Network. A new book by award winning reporter Michael Hudson, The Monster, tells the tale of how predatory lenders and Wall Street stuck it to American homeowners during the housing boom. When it all came crashing down it was the average guy left holding the bag. Hudson captures the essence of how they pulled it off …
Foreclosure mess will take years to clean up
Via msnbc.com by John W. Schoen How long will it take before the American nightmare of home foreclosures is over? Ask Mike Dillon, who’s been fighting to keep his New Hampshire home for most of the past decade. Though he missed two payments in 2002, Dillon then caught up and was current on his loan by later that year, he …
More Extend and Pretend: HUD Offers $1 Billion of Subprime Teaser Loans
Another must read post by Yves Smith over at Naked Capitalism. Yves examines the Administration’s offer of $1 billion in zero-interest loans to help homeowners. One choice excerpt from her post: How is this supposed to help borrowers? Seriously. This is the government equivalent of a subprime teaser loan. But this is even worse. First, teaser borrowers paid at least a …
Subprime, Exotic or “Crap?” Mortgage Industry Lingo
If there is a bright spot here, it’s that folks like Max who are holding the industry’s feet to the fire are making a difference.