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Archive for the ‘Legal’ Category

Dysfunctional Home Loan System Stacked In Favor of Servicers

In Legal on March 8, 2011 at 6:18 am

Huffingtonpost reports about a proposed “settlement agreement” between Federal and state regulators and the top home loan servicers in the country.

Whether any of the largely common sense “reforms” end up in a final agreement or otherwise get adopted by the industry in any meaningful way remains to be seen. In the meantime the reporting and attention on the abuses in the system are welcomed and deserve more attention.

For years we have been told that the foreclosures are the fault of greedy borrowers who overextended themselves. Instead banks have been acting in their own best interest pushing homeowners toward default and even in many cases requiring default as a precondition to loan modification consideration. The result has been perverse:

servicers are instead forcing through foreclosures, racking up fees through prolonged foreclosure proceedings, and effectively disregarding the rights of investors and borrowers in pursuit of their own profit.

Read More:
http://www.huffingtonpost.com/2011/03/07/foreclosure-settlement-protect-homeowners_n_832699.html#

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AZ to make lenders prove chain of title

In Legal on February 26, 2011 at 8:08 am

Famed mortgage meltdown maverick commentator Martin Mandelman has an indepth report (rant?) on the recently passed AZ Senate Bill 1259 which if signed into law, would among other things, require that the foreclosing lender record a chain of title summary document showing the original and current note holders and all transfers in between.

Speaking directly to Paul Hickman, chief executive officer of the Arizona Bankers Association, who is against the passage of this bill, Mandelman properly points out:

And by the way, Mr. Hickman… the whole chain of title thing is already the law in Arizona and elsewhere. This new law just requires your membership to follow the existing laws and actually make sure the chain of title is not destroyed by banker incompetence or blatant disregard for the law.

Yes, chain of title is required. As a basic element of the foreclosure action only the true party in interest may bring the action and for too long MERS and thirds party loan servicers were able to get away with cutting out a fundamental step in the process – to identify the plaintiff.

Mind boggling.

Read More:
http://mandelman.ml-implode.com/2011/02/bankers-apoplectic-over-arizona%E2%80%99s-republican-dominated-senate-passing-chain-of-title-bill-28-2/

NV Supreme Court hears Foreclosure Case

In Legal on February 8, 2011 at 4:54 pm

The Nevada Supreme Court took up the issue of what constitutes “participating in good faith” as it relates to the mandatory foreclosure mediation program in Nevada on Monday February 7th, 2011.

Additionally the Court was scheduled to examine the proper standard of review in these cases and specifically whether a lender commits bad faith if they do not EVEN BRING the loan documents to the mandatory mediation.

Stay tuned for updates and read more here:

http://lvlegalnews.com/high-profile/5641.html