Effort to Block Bulk Wholesale Home Sales Launched

By Mike Colpitts An effort to block the bulk wholesale home sales of foreclosed property held by Freddie Mac and Fannie Mae to investors at cheaply discounted prices is being launched by an unlikely member of Congress, a Californian Republican. Rep. Gary Miller, a 14-year GOP incumbent in a battle to retain his House seat in November’s upcoming election is launching the fight. Miller has requested that the financial services committee … [Read more...]

Mortgage Rates Fall to New Record

By Ryan Jackson Driven by falling U.S. Treasuries, mortgage rates fell to their lowest level in U.S. history for the third week in a row as worries over the economy trouble financial markets. The 30-year fixed rate mortgage dropped to average 3.49%, according to Freddie Mac. Rates have been on a one-way move downward since the beginning of summer. The rate on the fixed 15-year loan also fell to a new low to average 2.80% as homeowners … [Read more...]

1.5 Million Over 50 Lost Homes to Foreclosure

By Mike Colpitts More than 1.5 million U.S. homeowners over the age of 50 lost their homes to foreclosure as a result of banks and Wall Street developing the mortgage crisis, according to a study by the American Association of Retired Persons (AARP). The study surveyed mortgage loan data for 2007 through 2011. The study also found a serious increase in older homeowners in major jeopardy of losing their homes to foreclosure in the future. … [Read more...]

Bear Stearns Finally Settles with Shareholders

By Mike Colpitts Failed Wall Street investment bank Bear Stearns has settled its massive class action lawsuit with stock shareholders for pennies on the dollar four years after the bank failed in a major disgrace at the height of the financial crisis on Wall Street. The settlement has received preliminary approval in U.S. District Court, and will pay shareholders in the once powerful investment bank $294.9 million to settle litigation … [Read more...]

Home Mortgage Debt Drops $1.2 Trillion

By Mike Colpitts Home mortgage balances have dropped $1.2 trillion since the start of the U.S. financial crisis in 2008, according to Equifax. The deleveraging of mortgages has come as a result of the record breaking U.S. foreclosure crisis and consumers paying down household debt. Home mortgage losses taken by banks and investors, including institutions and private firms for April dropped 29% from two years ago. However, the write-offs … [Read more...]

California Real Estate Bust Offers U.S. Hope

By Mike Colpitts The boom bust cycle of California real estate holds historic lessons that every where else in the U.S. can learn from as the nation sustains the housing crisis driven by the sharpest foreclosure epidemic on record. California has seen home values drop an average of 43.7% since the housing crisis started in 2006, according to CoreLogic, which provides real estate data for the financial industry and home builders. The … [Read more...]

Bank CEO Admits to Robo-Signing Scandal

By Mike Colpitts Rising pressure on banks and mortgage firms are forcing lenders to merge, go out of business and make massive cuts to trim their bottom lines. The U.S. foreclosure crisis is making an ugly display of many banks balance sheets, and at least one major bank CEO is admitting to errors made during the robo-signing scandal. Freddie Mac and Fannie Mae have more than 1.4 million homes in their REO inventories or shadow inventories … [Read more...]

Proposals to Halt Foreclosure Abuse

By Mike Colpitts Six proposals calling for greater transparency by banks dealing with homeowners at risk of foreclosure are being proposed in a package of bills that make up the Homeowner Bill of Rights in California. The landmark legislation is the largest effort yet in any state to aid millions of homeowners abused by lenders. The effort is being mounted following the $26 billion agreement with the nation’s five largest banks and 49 … [Read more...]

Dirty Money Trail From Wall Street to Main Street

By Mike Colpitts The dirty money trail left in the wake of the financial crisis leads from Wall Street to Washington, D.C. all the way to Main Street. No other single factor has had as much of an impact on the collapse of the U.S. housing market as members of Congress lining their pockets with campaign contributions from the real estate and financial sectors. Leading U.S. Congressmen are collecting huge sums of money from the same banks, … [Read more...]

Tougher Sanctions on Banks Proposed

By Kevin Chiu U.S. Senator Sherrod Brown (D-OH) is calling for tougher sanctions on banks abandoning homes they foreclose on leaving tax payers on the hook to maintain properties, and tougher standards to prevent evictions of families. “Too many Wall Street banks are walking away from too many Ohio Main Street communities,” said Brown. “And when they do, they leave behind homes that are often vandalized and left to crumble. Ohioans are … [Read more...]