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predatory lending: Was President Clinton the cause of the housing meltdown? - 03/03/08 08:35 AM
This isn't intended as an opinion post, nor is it intended to inform. It's intended only to provoke thought and to draw attention to Gene Wunderlich's new group: Mortgage, Foreclosure & Elder Abuse Housing Fraud. I plan on contributing a significant number of short posts featuring links to facts and opinions about mortgage fraud, foreclosure statistics, the housing meltdown, etc. that you won't find aggregated in any other place. BusinessWeek had an article last week that bashed the Clinton administration for abusing public policy, visa vie HUD, to intentionally inflate domestic housing statistics. It's an interesting perspective when you think about … (14 comments)
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predatory lending: Social innovation in housing markets - 01/28/08 09:26 PM
Blogger Carlos Gasca Yanez has proposed an innovative solution to this nation’s looming social blight: housing markets in crises. The idea championed in a post titled Subprime Crises calling for Social Entrepreneurs is to partner nonprofit initiative with corporate enterprise. Carlos envisions a real estate model that embraces a marriage of compassionate sensitivity to the profit motive. Essentially, cooperative education would occur at every level beginning with professional development and the implementation of best practices. Businesses and nonprofits would then endeavor to protect and inform borrowers likely to be victimized by predatory lenders. A ridiculous proposition? I think not. Years ago, … (4 comments)
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predatory lending: When Deals Go Bad: Baltimore's Foreclosure Debacle - 01/13/08 04:07 PM
Baltimore, sometimes called "Charm City," isn't all that charming beyond the inner harbor complex that's featured by media when the Ravens or Orioles are playing at home. Sheila Dixon, Baltimore's newly elected mayor, along with the city's council have filed suit against Wells Fargo Bank to recover alleged losses caused by a wave a foreclosures ravaging the city's neighborhoods. The complaint, filed in federal court, seeks damages for municipal expenditures, including fire and police protection and the loss of tax revenue, correlated to a stark escalation in the number of vacant homes. The New York Times, in a related article written … (13 comments)
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predatory lending: More Mortgage Industry Punditry ... and a loaded question - 12/15/07 06:04 PM
It was about eighteen months ago that a friend of a friend called to ask if I would glance at a settlement sheet. Chris, a busy woman executive, was scheduled to close a refinance loan the next day and sensed that something wasn't quite right after learning the amount of her new (proposed) monthly payment.Chris, I later learned, had responded to a letter sent to her house by an industrious mortgage broker. Her intentions were to lower her interest rate while pulling out a little cash. It sounded reasonable enough considering Chris' lending profile. She is highly educated and a successful … (24 comments)
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predatory lending: A Recipe for Unmitigated Disaster - 11/23/07 06:13 PM
Earlier today, Lenn Harley posted California Subprime Borrowers May Get Relief? - More Questions Than Answers. It's Lenn's insightful commentary to posts written by Bryant Tutas and Gena Riede concerning the frightful number of looming foreclosures in certain markets. Specifically, Gena emphasized the concerned efforts of California's governor to offer some relief to borrowers in serious financial distress. The governor of Massachusetts was the first to offer a plan of sorts earlier this year. While the initiative shown by state governments to confront the foreclosure epidemic is laudable, I doubt that localized efforts can pack the punch needed to make an … (35 comments)
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predatory lending: Limited Powers of Attorney: Borrowers Beware! - 10/14/07 09:12 PM
I was recently asked by the National Notary Association to endorse one of its initiatives. Borrowers, I've learned, are sometimes asked to sign a Limited Power of Attorney (LPOA) authorizing a title company employee to sign loan documents on their behalf. Though the request may originate from good intentions, it points to a path fraught with peril for unwitting consumers. The practice, questionable at best and patently deceitful at times, raises substantive issues that need to be addressed.The National Notary Association has voiced its concerns by publishing two separate documents, Fact Sheet: Limited Powers of Attorney and Limited Powers of Attorney: … (80 comments)
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predatory lending: An Angry Consumer is a Formidable Opponent - 06/28/07 09:47 AM
I received an email recently from a woman who had read my Active Rain posts. From her message, I gleaned that a lender had taken advantage of her during a refinance transaction. I receive similar emails fairly often, but somehow this one was different. The lady's name is Paula and she wasn't looking for an elixir to somehow solve a serious problem. She had already taken a stand and had decided to make a difference. Paula had written to tell me about her newly launched web-site.
That's right, a site hosted by an angry consumer who is fighting back. Before … (36 comments)
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predatory lending: Mortgage Fraud: Fact versus Fiction - 06/25/07 11:43 AM
A research phase would be the best way to describe the state of affairs in my office these days. Mortgage fraud statistics are dynamic, moving targets. Many of you want to know the truth about mortgage fraud, but find it difficult to stay informed. The data is available, but is distributed in fragments, in numerous reports, studies, publications, and news articles. I'd like to share some of the core definitions and facts with you.DefinitionsMortgage Fraud: Any material misrepresentation in a loan application that influences a mortgage lender to approve an application ... that would have otherwise been declined. The term material … (25 comments)
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predatory lending: Inner City Wall Art: Creative Expression or Vandalism? - 06/21/07 07:09 PM
I spent much of the day visiting inner city properties that were flipped within the last two years or so. Like it or not, a property that has been acquired "low" and quickly resold "high" is very likely to go to foreclosure. There is also an undeniable statistical correlation between flipped properties and mortgage fraud. Studies conducted by legitimate researchers have proven these facts time and time again.
Many of you have asked that I write posts about mortgage fraud, particularly my own experiences and the experiences shared with me by real estate insiders.
I've decided to post a short series … (19 comments)
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predatory lending: In the beginning ... - 05/20/07 12:26 PM
Last week, I wrote about the mortgage fraud concerns that were shared anonymously by title agents during the past month. Click here to view previous post. In keeping with the spirit of the Active Rain community, your assistance was selflessly offered when I asked for it. Your outpouring of support was both overwhelming and greatly appreciated. I apologize that I haven't had the opportunity to respond to everyone who sent an email. I will ... it's a promise.
I spent yesterday morning categorizing the information provided to date. My original thought was to provide an educational resource in the form of a … (17 comments)
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predatory lending: 2007 from my perspective - 01/07/07 08:10 AM
I'm admittedly concerned about the real estate and mortgage fraud outlook for 2007 after considering the developments of the past year. Real estate and mortgage fraud is a complicated issue presenting a spectrum of societal challenges in the form of costs and consequences. Industry leaders express grave concern without revealing a concise and cohesive strategy to combat the epidemic. The U.S. Justice Department continues a misguided agenda of prosecuting mostly "notorious" fraudsters in metropolitan areas. State and local authorities often recognize the existence of a problem, but lack the resources to confront this sophisticated form of theft. As a matter of … (2 comments)
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predatory lending: What has happened to Human Decency? - 01/06/07 07:47 PM
Last November, Susannah Frame, an investigative reporter for King 5 News in Seattle, Washington broke a story that illustrates a concept and a phrase that may be unfamiliar to many, Affinity Fraud. Affinity Fraud refers to a situation where a victim is preyed upon by a trusted member of a shared group or organization. In the recently reported story, a mortgage broker affiliated with a Filipino Christian congregation allegedly devised a fraudulent scheme to procure home loans for church members with damaged credit. The mortgage broker deceived home buyers and lenders alike by substituting the identities and credit histories of past … (2 comments)
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predatory lending: Predatory Lending Studies in 2006 - 01/01/07 10:36 AM
The Center for Responsible Lending released two studies in 2006 that are, in my opinion, important reference sources for every real estate professional.
Unfair Lending: The Effect of Race and Ethnicity on the Price of Subprime Mortgages
Released in May, 2006, the study revealed a pricing disparity in the sub-prime lending market targeting borrowers with a racial and ethnic bias. The report suggests the difference in pricing is at least partially driven by the yield spread premium (YSP).
Losing Ground: Foreclosures in the Subprime Market and Their Cost to Homeowners
I haven't had a chance to entirely read this recent study (December 2006), but I have … (3 comments)
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