Eminent Domain Threat May Force Banking Practices Into Full View

By: Saturday August 10, 2013 9:06 am

The city of Richmond, California, is faced with a mountain of homes where the owners are seriously underwater in their mortgages. The banks and investors who hold the mortgages have refused to adjust the terms of the loans in any meaningful way, and Richmond is worried that a wave of either foreclosures or walkaways will result in Richmond becoming Detroit West. Their solution: they want to buy the loans and then rework the terms for the owners to something more realistic. The banks, as you might guess, don’t want to sell.

Richmond is threatening to invoke eminent domain, to force the sale, and the banks are filing suits to block this. But the banks ought to be careful about what they are wishing for. Why? I’ll give you the answer in a single word . . .

 

Mortgage Backed Securities Lawsuits Still Proliferate

By: Tuesday December 18, 2012 2:01 pm

While we wait for more settlements in the Libor case, banks continue to face exposure for their fraudulent mortgage conduct dating back to the housing bubble. Two more major lawsuits emerged yesterday.

FHFA’s Christmastime Moral Relativism and the New New Housing Market

By: Wednesday December 5, 2012 9:45 am

FHFA has situational ethics here. They rail against states with long foreclosure timelines, even increasing their guarantee fees. But when faced with headlines about foreclosures during Christmas, they become beneficent, and act to increase foreclosure timelines.

More Noises About Administration Firing Ed DeMarco After the Election

By: Saturday November 3, 2012 2:24 pm

Zach Carter find yet another indicator that, after the election, Barack Obama plans to fire Federal Housing Finance Agency Administrator Ed DeMarco. But this claim has even less meat on its bones than the previous pledge.

It comes from Bank of America analyst Ralph Axel, who argues that the Administration plans to use housing policy as its “secret weapon.”

More on the Lawsuit Against BofA Over Countrywide’s “Hustle” Program

By: Thursday October 25, 2012 9:30 am

I’ve taken a closer look at the US Attorney from the Southern District of New York’s $1 billion lawsuit against Bank of America – particularly their subsidiary Countrywide – for “the hustle,” the program of selling mortgages with practically no underwriting and passing them on to Fannie Mae and Freddie Mac. And there’s something interesting right on the first page. The lawsuit isn’t called “The US v. Countrywide Financial Corp.,” but “The US, ex rel. Edward O’Donnell v. Countrywide Financial Corp.”

Who’s Edward O’Donnell?

White House Promises to Dump Ed DeMarco if They Only Get the Chance in a Second Term

By: Wednesday October 24, 2012 2:00 pm

In one of the more cynical campaign promises I’ve seen in a while, the Obama Administration has apparently been running around to housing advocates telling them they will fire Ed DeMarco as head of the Federal Housing Finance Agency… after the election.

Romney Campaign Advisor Pinned Down on Housing Policies

By: Monday October 22, 2012 2:00 pm

Mike Konczal decided to do some sorely missed actual reporting at last week’s debate, seeking out Glenn Hubbard, one of Mitt Romney’s key economic advisers, for a discussion on housing policy.

FHFA Bullying States Into Making Foreclosures Faster

By: Friday September 21, 2012 9:05 am

The federal conservator of Fannie and Freddie wants to put its thumb on the scale in favor of faster foreclosures and diminished due process. The Federal Housing Finance Agency wants to be able to foreclose on lenders in Illinois, New York, New Jersey, Connecticut and Florida without concern for whether the documents are legitimate, without concern for whether the bank and the borrower can come to a resolution on a modification.

The Path for Housing Is Dangerous

By: Thursday September 13, 2012 3:30 pm

The housing market is headed on a dangerous path. I’ll have more on this in the coming days, but if you think that an investor-heavy market of house-flippers, with little recourse for those underwater but to sit tight and hope, and a nation of absentee slumlords redlining neighborhoods is something healthy, well you’re in luck, because that’s what we’re getting.

Goldman Sachs Escapes Liability From SEC in Mortgage Backed Securities Case

By: Thursday August 9, 2012 1:40 pm

Goldman Sachs announced in a regulatory filing that the Securities and Exchange Commission has closed their investigation into the firm misleading investors on a $1.3 billion subprime mortgage-backed security deal.

SUPPORT FIREDOGLAKE
Follow Firedoglake
TODAY’S TOP POSTS
CSM Ads advertisement
Advertisement
Upcoming FDL Book Salons

Saturday, August 30, 2014
2:00 pm Pacific
The Nixon Defense: What He Knew and When He Knew It
Chat with John Dean about his new book.

Sunday, August 31, 2014
2:00 pm Pacific
Imagine: Living In A Socialist USA
Chat with Pau LeBlanc, Debby Smith, and Michael Steven Smith about their new book. Hosted by Deena Stryker

GET UPDATES

Sign up to receive Firedoglake's headlines by email: