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legal reform: California "foreclosure moratorium": will lenders even care? - 06/16/09 09:24 AM
I've been receiving many calls and emails about California's so-called foreclosure moratorium, which went into effect yesterday. Frankly, I doubt it will actually do anything meaningful for struggling homeowners. Here's why:
Loan servicers can qualify for an exemption simply by filing a form with the state that claims the loan servicer has a modification program intended to keep people in their homes. Nothing in the law requires loan servicers to actually implement the programs (you know, where borrowers actually get their loans modified in a meaningful way), and there's no real mechanism in place to confirm that loan servicers are actually … (4 comments)
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legal reform: Senate, White House sell out the American people - cram down cave in - 05/01/09 08:42 AM
Well, the banking lobby's millions have carried the day, and the Obama Administration left over 8 million American families twisting in the wind by failing to back up an Obama campaign promise.
On Thursday, the Senate failed to pass the cram down bill. The final vote was 45 in favor to 51 against. A dozen Democrats, including Democrat of convenience Arlen Specter of Pennsylvania, voted against the measure.
This is such a shame for the American people, as well as the economy.
As I've previously written, ending the cram down exclusion on primary residence loans would have: (1) forced lenders to … (3 comments)
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legal reform: Senate screws the little guy: the cram down may be dead for now - 04/24/09 08:47 AM
After spending millions on lobbying (despite the lobbying ban in place for banks who received bailout money), it looks like the banking industry has spent and lied its way into delaying Senator Durbin's cram down bill.
I am shocked, dismayed, and disgusted that in Washington, it's business as usual when it comes to regular people getting a break against powerful interests who throw money (including taxpayer money) at politicians.
According to today's Wall Street Journal, Senate Republicans are continuing their campaign of "no" and walking in lock step to kowtow to the banking industry. The end result: banks probably get the … (1 comments)
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legal reform: More nail-biting as the Senate works to pass the cram down bill - 04/16/09 10:24 AM
The Senate is officially in recess until Monday, April 20, but many senators are hard at work, trying to make - or break - the bankruptcy cram down reform bill.
At stake for banks: increased FDIC insurance, perhaps lower FDIC premiums (banks have to pay for FDIC insurance, and because of the many bank failures over the past year, rates are set to skyrocket). But for the rest of us, the American people, the stakes are much greater.
According to a few news reports, a deal may be in the works to get the banking industry to call off its dogs … (3 comments)
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legal reform: More news on the cram down bill - Senate edition - 04/02/09 04:38 PM
I just read that the cram down bill, which already passed the House of Representatives, is facing stiff opposition in the Senate from...Senate Democrats?
Senate Majority Leader Harry Reid (D-NV) has recently commented that he may have to pull the provision from the Senate banking bill, because of opposition from lender-friendly Democrats in the Senate, led by Senator Evan Bayh (D-IN). Bayh, claiming to be acting as a "centrist," is threatening to side with Republicans in opposing the Senate version of the bill, as well as the Senate Democrats' efforts to add the bill to the budget bill.
Incidentally, is it … (3 comments)
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legal reform: More proof that cram downs will not make mortgages cost more - 03/24/09 07:22 PM
So the bankruptcy cram down bill is currently stuck in the Senate. Opponents (read: the banking industry, and a few "let them eat cake" conservatives) continue to tell the lie that cram downs in bankruptcy will make home loans so much more expensive than they would be otherwise. I think they hope that if they tell the lie enough times, it will be accepted as the truth.
These people are full of it. Make no mistake, it is a bald faced lie to claim that bankruptcy cram downs will cause significant increases in home loan costs, or decrease availability.
Recently, I … (6 comments)
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legal reform: Revised (narrowed) Cram Down Bill Passes House - 03/05/09 07:55 PM
Today, the House of Representatives passed a revised version of the bankruptcy bill. This is welcome news for the millions of homeowners at serious risk of losing their homes because their lender refuses to be realistic about the real value of the home securing the loan.
For some strange reason, recent press reports are calling the bankruptcy provision "controversial" and "sure to face stiff opposition" in the Senate.
The only real controversy is this: why the hell should mortgages secured by a borrower's primary residence be the only type of loan off-limits under the cram down rules? A short history lesson: … (2 comments)
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legal reform: Break out the shovels - bank lobbyists push to kill bankruptcy reform - 02/13/09 10:40 AM
Yesterday, I posted information about the bankruptcy reform proposals under consideration in the Congress. This morning, on the front page of Yahoo!, there's a story entitled "How Banks are Worsening the Foreclosure Crisis."
It's interesting reading, to say the least.
The banking industry thought that the housing market would turn around, and the foreclosure mess would work itself out. Under normal economic circumstances, this could have happened. Of course, had the banking industry pulled its head out of the sand to look at what was propping up the economy, they would have realized that the housing bubble had burst and their … (1 comments)
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legal reform: Big news: We're still waiting, but Bankruptcy reform may save the day - 02/12/09 12:50 PM
So it's been quite awhile since I've posted anything. I've had my hands full trying to bring lenders to the table to work with my clients. We have had some successes and some disappointments, but mostly it's waiting around for lenders to get back to us.
One exciting development is the prospect of a change to the Bankruptcy Code that will allow judges to treat home loans like any other secured debt. Under current law, if your car, boat, farm, or vacation home is worth less than the loan(s) secured by it, the judge can reduce the principal balance to reflect … (20 comments)
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legal reform: Banking meltdown highlights absurdley weak federal oversight - 10/11/08 08:24 AM
Remember how, after the September 11 attacks, Congress moved swiftly to eliminate law enforcement "turf wars" over sharing information and cooperating to catch evildoers? In light of recent events in the financial world, it's time for bank regulators to work together for the common good and stop the current practice of pissing contests and flat out refusal to hold bad lenders accountable. There's a great article on the issue from The Seattle Post-Intelligencer.
Here's what's been going on to date: literally dozens of state Attorneys General have attempted to take large, nationally chartered lenders like Washington Mutual and National City Bank … (0 comments)
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legal reform: "Cash for trash" set to include help for homeowners - 09/25/08 07:10 AM
It's 4:42 AM.
I've been up since 4:00, scouring Google News for the latest headlines on the bank bailout bill.
Here's the latest:
Everyone hates investment bank executives, so executive pay will get clipped in some way under the plan. Mr. Paulson, the Treasury Secretary, will not get the blank check he asked for over the weekend. Rather, he will have to answer to Congress on how he spends taxpayer money. The government will take debt and equity positions in banks it bails out. This means that Mr. Paulson will buy mortgage backed bonds, as well as stock and "warrants" (special … (6 comments)
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legal reform: The new biggest junk debt buyer: you - 09/20/08 11:06 AM
Awhile back, I wrote a post warning about the impact that junk debt buyers could have on the housing crisis. The business model is as simple as it is brutal: buy delinquent loans for as little as 20 cents on the dollar, foreclose on the homeowners, sell the properties at 50 cents on the dollar, and double your money after costs. Never mind that the activity wrecks home values and destabilizes communities - this is business, after all.
Don't you love how it's "business" when common people get screwed, but it magically becomes "a confidence crisis" once the fat cats start … (4 comments)
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legal reform: MA Attorney General: lenders refusing voluntary loan mods - 09/19/08 09:11 AM
In the midst of this week's market turmoil, Congress was taking testimony about the new FHA refinance program set to start on October 1. The testimony was a study in contrasts.
On the one hand, representatives from major lenders were grumbling about the prospect of mandatory principal writedowns under the FHA program. Most banks stated that they prefer to try their own approaches to loan modifications before resorting to the FHA plan.
On the other hand, the Attorney General of Massachusetts, Martha Coakley, pulled the curtain back to shine some light on what lenders have really been doing - NOTHING.
In … (1 comments)
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legal reform: The latest from the rumor mill: possible Fannie/Freddie takeover - 09/05/08 10:07 PM
The Associated Press is reporting that a federal takeover of Fannie Mae and Freddie Mac may happen as early as this weekend, quoting a source "briefed on the matter," who spoke on condition of anonymity.
What a difference a month makes.
Fannie, Freddie, and Treasury officials declined comment.
Get set for another wild ride, folks.
… (3 comments)
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legal reform: California foreclosure figures for July 2008 - 08/15/08 09:03 AM
July 2008 may be looked upon as a study in contrasts. On the one hand, it was the month that Congress and the White House put aside their differences to enact sweeping legislation aimed at stemming off foreclosures and propping up Fannie Mae and Freddie Mac.
And then there's the bloodletting on the ground.
In July, the rate of foreclosures in California was estimated at a staggering 1,300 per business day. That's triple the estimate from a year ago. California's foreclosure rate was up 22.5% from June 2008.
The most depressing news: Notices of Trustee's Sale are recording at a rate … (1 comments)
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legal reform: Housing bill gets signed, new housing value numbers out - 07/30/08 01:53 PM
It's been a busy morning for news related to the housing market.
President Bush signed the much-anticipated housing bill this morning. Most of the bill's provisions take effect on October 1, but some of the emergency measures take effect immediately. If you just have to know all the details, or if you're looking for a cure for your insomnia, you can get the full text of the law (all 700 pages of it) through the Library of Congress website.
Standard & Poor's also released its Case/Schiller housing price report for May 2008. As largely expected, housing prices continue their slide in … (1 comments)
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legal reform: Housing bill relief measures for military and veteran families - 07/28/08 09:09 AM
The much-anticipated housing bill goes to the President for signature today.
Hopefully, this bill will be a step in the right direction.
In addition to the Fannie Mae/Freddie Mac and new FHA features in the bill, there's a less publicized set of safeguards that I think is a great thing: additional help for veterans and active duty military personnel.
In the interest of disclosure, I was raised a Navy brat - my father served for over twenty years, and in many ways, so did his family. I have some personal experience and knowledge regarding how these measures will provide some much … (3 comments)
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legal reform: House approves foreclosure, Fannie/Freddie bill - 07/24/08 04:02 PM
As expected, the House of Representatives approved the much-anticipated foreclosure rescue / Fannie Mae / Freddie Mac rescue bill. The vote was 272 to 152 in favor of the measure.
The Senate was set to take up the measure on Wednesday, but internal wrangling has delayed a Senate vote until this Friday or Saturday.
The President has withdrawn his veto threat, so it looks like the bill could be signed into law by early next week - and not a moment too soon for some 400,000 srtuggling homeowners.
… (0 comments)
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legal reform: Foreclosure rescue/Fannie-Freddie bill looks like it will get done - 07/21/08 09:42 AM
As stated by Senator Christopher Dodd last week, "Nothing concentrates the mind like a death sentence."
It appears that some may have their financial death sentences commuted later this week, as the combined foreclosure rescue and Fannie-Freddie rescue bill comes up for a vote. The bill has the support of the aforementioned Senate Banking Committee Chair Senator Dodd, as well as House Banking Committee Financial Services Committee Chair Barney Frank, and Treasury Secretary Henry Paulson.
The President's threatened veto of the housing bill, because of nearly $4 billion in funds to assist local governments in buying and fixing foreclosed properties, now … (3 comments)
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legal reform: Countrywide, Fannie Mae, and Freddie Mac - this week's trifecta - 07/18/08 09:36 AM
It's definitely been a wild, hold-your-breath kind of week regarding America's current "big three" mortgage players.
Countrywide's internal practices are now out in the open, thanks to California Attorney General Jerry Brown. In a court filing yesterday, the A.G. outlines the company's incentives to loan officers and wholesale brokers to sell more expensive loans to borrowers than their credit ratings warranted, and the poor quality of the company's current loan portfolio. Subprime and option ARMs, which account for about one sixth of Countrywide's entire portfolio, have delinquency rates that indicate many loans should never have been made: nearly half of one … (1 comments)
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Jason Buckingham
Benicia,
CA
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Office Phone: (707) 745-2200
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