Foreclosure Crisis – “I Wouldn’t Have Bought the House”

Barbara MacGregor and her husband are a lot like a lot of other people. They had never owned a home. Barbara would look through the newspaper occasionally dreaming about some day owning a home with her husband, but she new they couldn’t really afford one in high priced Southern California real estate. At the grocery store she would pick-up real estate magazines filled with home listings, and show the bright pictures to her husband, who would … [Read more...]

National Real Estate Prices Forecast to Deflate Further

Scrambling to find a bottom, the U.S. real estate market is falling further and further in most areas of the country. Home prices nationally will deflate an average of more than 8% in 2008, according to the Housing Predictor forecast. The real estate crisis, triggered by an over supply of new creative financing programs and a record level of mortgage fraud is deflating at the fastest clip since at least the Great Depression in an over-whelming … [Read more...]

States Rip Off Foreclosure Victims

By Mike Colpitts Almost $1-billion targeted to victims of banking foreclosure fraud is being ripped off from foreclosure victims to be used to pay for other programs for states facing serious financial deficits. The nation’s largest five banks agreed to pay a $25 billion settlement as part of their agreement to settle allegations of illegal forgeries and other frauds in the robo-signing scandal. However, only $2.5 billion is dedicated to … [Read more...]

Mortgage Delinquencies Drop Two Straight Months

By Mike Colpitts Mortgage delinquencies fell for the second consecutive month in July and are down 11% for the last year, signaling a major improvement for the U.S. housing market, according to Lender Processing Services. Loans that are 30 days or more past due made up just 7.03% of home mortgages. The decline in late payments is positive news for the market beleaguered by the foreclosure crisis, with more than 2-million homes in the … [Read more...]

Trio Pays $5.3-Million in Refinancing Scam

By Ryan Jackson A mortgage broker and two owners of three nursing homes have agreed to pay $5.325-million to resolve allegations in a mortgage refinancing scam to the federal government. In exchange for the financial penalty, federal prosecutors will not pursue criminal charges against the trio. The settlement is part of the federal government’s crackdown on mortgage brokers and lenders who make false claims and lie to obtain approvals on … [Read more...]

Mortgage Delinquencies Improve 20%

By Mike Colpitts Mortgage delinquencies have improved more than 20% since the height of the U.S. housing market downturn almost two years ago, according to data obtained from Lender Processing Services. Loan delinquencies declined to 7.14% in July, a drop from a record 9.37% of mortgages in October 2009 at the height of the collapse. However, the June report released by LPS shows that mortgage repayment remains at historically low rates … [Read more...]

Mexican Drug Money Fuels Cash Purchases

By Mike Colpitts Mexican drug cartels have slowly moved money out of banks and other hiding places and into U.S. real estate investments. Federal investigators are hunting for people investing billions of dollars of drug money in the U.S. real estate market, including huge sums of cash in Florida, Texas and California. Cash purchases fuel the damaged economy in Miami and San Diego, which is close to the Mexico border. Miami is no stranger … [Read more...]

SEC Halts $100 Million Real Estate Ponzi Scheme

By Ryan Jackson The Securities and Exchange Commission has charged a Utah man with operating a real estate Ponzi scheme that bilked investors out of $100 million throughout the U.S. and shut down the private hard money lending company. Wayne L. Palmer, 57, and his company, National Note of Utah in West Jordan have been charged with running the scheme, in which they lured investors to invest money in private mortgages promising annual rates … [Read more...]

Mortgage Company CFO Sentenced to 5 Years

By Ryan Jackson The former chief financial officer of one of the nation’s largest mortgage companies, Taylor, Bean and Whitaker, was sentenced to five years in federal prison for his role in a $2.9 billion fraud scheme that led to the failure of the company, and cost hundreds of investors millions of dollars. Delton de Armas, 41, was sentenced by a federal judge in Virginia to the term after pleading guilty to one count of conspiracy to … [Read more...]

US Government Moves to Prevent Mortgage Fraud

By Mike Colpitts In an unprecedented move, the agency charged with overseeing the nation’s giant mortgage lenders is taking steps to halt mortgage fraud by the lenders it deals with. The action, by the Federal Housing Finance Agency, is the first of its kind since the financial crisis threw the U.S. economy into chaos. The initiative, which will be known as the “Suspended Counterparty Program,” will require Fannie Mae, Freddie Mac and the … [Read more...]