Attorneys general and federal regulators sat down with major servicers this week to discuss the details of the robo-signing settlement. Both sides have submitted their own version of what they believe a settlement should look like, and this week’s meeting is just the first in what will likely be a long period of negotiations. Banks have repeatedly spoken out against what they believe to be terms that are too harsh and may even encourage moral hazard. Mortgage investors are also weighing in on the proposed terms.
The Senate Judiciary Committee on Thursday approved legislation that would give bankruptcy courts the authority to order face-to-face meetings between homeowners and their lenders for foreclosure mediation, clearing the way for it to move on to the full Senate. The legislation does not give bankruptcy judges the power to modify mortgages like the controversial bankruptcy cramdown proposals that have repeatedly failed in Congress. Instead, it would give them a mechanism for opening up the lines of communication between homeowners and creditors.
A study by the credit bureau TransUnion shows that when choosing which bills they can afford to pay, consumers are more likely to pay their credit card obligations and fall behind on their mortgage payments. TransUnion says this trend has continued for the past three years, and while the number of consumers current on credit cards but delinquent on their mortgage has declined slightly, it is more than 70 percent higher than it was at the beginning of the “Great Recession.”
The bailout programs used to prop up the nation’s banking system are now in the black. Treasury announced this week that the investments made in banks to prevent the sector from folding have now turned a profit of $6 billion. But as his final day in office approached, TARP Inspector Neil Barofsky cast a dark cloud over the program’s proclaimed success. In an op-ed piece, he reminded readers of the original intent of TARP, the intent put to lawmakers when they voted on the controversial $700 billion program – to buy up toxic mortgages and modify them.
The Bremner Group at Coldwell Banker
ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
(D) (310) 800-2954
Accredited Buyer Representative | Certified Distressed Property Expert | Pre-Foreclosure Specialist Certified
I want you to know that I appreciate any referrals from friends and associates who may be in the market to buy or sell real estate. You can count on me giving them the same high-quality service I provide to all of my clients.