The US Administration is trying to push through a deal requiring mortgage lenders to provide loan modifications that reduce the principal balance of residential loans. As reported in the Wall Street Journal Lenders have been reluctant to do so from fear that it would encourage borrowers to stop paying their…
In a recent California HESCA decision, a homeowner in Hillsborough was in trouble on their $1.3 million dollar home. On the day of the trustee’s sale, Monopoly Game LLC, owned by Gladney, made a deal to buy the owners equity for $100,000, plus another $50,000 if they moved out within…
The insurer, MBIA , claims that Morgan Stanley made loans to homeowners who couldn’t afford them, and packaged the risky loans into securities that did not meet its underwriting guidelines. They also allege that Morgan’s servicing arm did not have the staffing or ability to service the loans. MBIA, relying…
Depositions in Bankruptcy cases are providing bits and pieces of how the mortgage industry worked the last few years. In addition to learning about the robosigners who were “vice presidents” of MERS, this recent revelation, noted by Mike Konczal, reveals a fundamental flaw that may exist in many Countrywide sourced-…