Attorneys general in about 40 states may announce a joint investigation into foreclosures at the largest banks and mortgage firms, according to a person with direct knowledge of the matter.
State attorneys general led by Iowa’s Tom Miller are in talks that may lead to the announcement of a coordinated probe as soon as Oct. 12, said the person, who declined to be identified because a final agreement hasn’t been reached. The number of states may change because several are still deciding whether to join the investigation, the person said. New Mexico Attorney General Gary King said today in a statement that his state will join a multi-state effort.
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By Brady Dennis and Ariana Eunjung Cha
Washington Post Staff Writers
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For struggling homeowners trying to avoid foreclosure, it could mean an opportunity to challenge the banks they argue have been unhelpful at best and deceptive at worst. But it also threatens to leave them in prolonged limbo, stuck in homes they still can't afford and waiting for the foreclosure process to begin anew.
For big banks, "there's a possible nightmare scenario here that no foreclosure is valid," said Nancy Bush, a banking analyst from NAB Research. If millions of foreclosures past and present were invalidated because of the way the hurried securitization process muddied the chain of ownership, banks could face lawsuits from homeowners and from investors who bought stakes in the mortgage securities - an expensive and potentially crippling proposition.
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12/21/09 Baltimore, Maryland – Our economy is about to relapse into the disease that sent us into the Great Depression: Part Deux. Subprime loans caused the initial illness. Option-ARMs will cause the relapse.
In the first half of the past decade, subprime loans were king. They were cheap and easy to get approved. Along with the subprime boom came subprime adjustable-rate mortgages (ARMs), which were equally easy to afford…for a while.
let's take a look / more at the link
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Saturday, September 25, 2010
Are you delinquent on your first mortgage but still making monthly payments on your home-equity credit line or second mortgage?
If so, a finance and real estate professor from DePaul University has some controversial advice for you: Stop paying on your second immediately.
Rebel Cole believes you are simply throwing good money after bad. If you are seriously delinquent on the first mortgage, you're likely headed for foreclosure unless both of your lenders agree on a modification or principal-reduction plan. But because you continue to make payments on the second, the bank that holds that revenue-producing note might have minimal motivation to participate in a workout, he thinks. Cole estimates that between 1 million and 3 million homeowners are in this position nationwide -- making it a big problem.
http://www.washingtonpost.com/wp-dyn/content/article/2010/09/24/AR2010092400126.html
After helping corporations issue over $1 trillion of debt a record-low yields, the Fed is now turning its attention to consumers' balance sheets, says John Lekas, senior portfolio manager at Leader Capital where he runs theLeader Short-Term Bond Fund.
"They're going to continue to buy" Treasuries until the yield on the 30-year bond hits 2.75%, Lekas predicts. That, in turn, will drive 30-year fixed rate mortgages to around 3.75%, which "reloads the consumer with a 30-year stream of income," he says, estimating savings of about $400 per month for the average U.S. household.
