Mortgage Fraud Investigations
The Supreme Court ruled Monday that the New York attorney general’s office can investigate whether national banks discriminated against minorities seeking mortgages.
The justices overturned part of a ruling by a U.S. appeals court that entirely blocked the state office from investigating or enforcing the fair lending laws against national banks because they are subject instead to federal regulation. Read more about the mortgage investigation…
The Department of Housing and Urban Development has left elderly borrowers vulnerable to abusive lending practices because of shortcomings in programs that offer reverse mortgages, according to a report released yesterday by the Government Accountability Office.
Reverse mortgages, which are usually backed by HUD’s Federal Housing Administration, enable seniors to withdraw equity from their homes. The loan and the accumulated interest do not have to be paid back until the owner dies or sells the home. But the upfront costs are substantial.
While these loans have become more attractive to seniors as the economy has soured and housing values have dropped, reverse mortgages are complex. Read more about reverse mortgages…
Attorney General Bill Mims awarded $50,000 for foreclosure relief counseling for Virginia families that are in danger of losing their homes to foreclosure Monday.
The grant funds are from a settlement in January 2009 with Countrywide Financial Corporation. The settlement addressed alleged deceptive acts and practices with Countrywide’s mortgage activities in Virginia. Under the court-approved settlement, Virginia set aside $50,000 for foreclosure education.
The $50,000 contribution will fund grants to nonprofit counseling agencies, and is projected to benefit about 200 Virginia families facing foreclosure. Read more about foreclosure help in Virginia…
Struggling homeowners could soon find extra help because Cook County courts are hoping to make it easier for residents in foreclosure to keep their houses.
Chancery Division Presiding Judge Dorothy Kirie Kinnaird is looking into creating an advisory committee of judges, experts and lawyers that would examine making court-ordered foreclosure mediation available to more homeowners in trouble.
Generally, mediation would involve bringing the homeowner and lender together to develop a plan that’s acceptable to both sides, with a neutral middle party as the moderator. Read more about avoiding foreclosure…
