Yet another of our brutal mortgage linkfests: Investors are beginning to sue, there are protest over HAMP, and foreclosure probes are happening.

Here’s our round up:

COP Hearing on TARP Foreclosure Mitigation Programs:  On Wednesday, October 27 at 10:00 a.m., the Congressional Oversight Panel for the Troubled Asset Relief Program (TARP) held a hearing in room 138 of the Dirksen Senate Office Building. Archived video is available below. (Note: Karl Denninger picks out choice parts)

Which Banks Have Mortgage Risk?: An Analyst Estimates

The WTF headline! MERS casts its shadow on commercial mortgages (FT)

Federal Reserve on Foreclosure Crisis (PDF)

Brooklyn judge Arthur Schack is a local hero, decision casts light on fraudulent mortgage paperwork (NYPost)

Why Did Banks Give Home Loans to People Who They KNEW Couldn’t Pay?

To fix the economy, let bad banks die (LATimes)

Home Builders Slash 2010 Construction Forecast

U.S. probing foreclosure processing firms uses the criminal word…  (Washington Post)  Law enforcement authorities on both state and federal levels are probing whether individuals at these foreclosure companies and at the banks that hired them committed an array of possible crimes – mail and wire fraud, money laundering, conspiracy and racketeering. No charges have been filed. These officials say they are taking a well-tested approach in their investigations: press low-level employees to implicate higher-up executives. Already, investigators have obtained in sworn testimony detailed descriptions of what took place inside the foreclosure companies.

Home Lenders May Meet With States Over Foreclosures This Week

Bond Investors Will Complain to Trustees Over Paying Cost of Robo-Signing Mortgage-bond investors (with more than $500 billion of the securities) represented by Dallas lawyer Talcott Franklin will send letters to securities trustees complaining that they shouldn’t bear the costs of loan servicers’ so-called robo-signing. They are “pretty disturbed” that mortgage-bond trusts are being forced to pay penalties after loan servicers including Detroit-based Ally Financial Inc. filed affidavits in foreclosure cases that falsely said the signers reviewed documents, he said.

Profile of foreclosure defense legend Max Gardner (Bloomberg)

Allan Sloan: The real foreclosure mess: Lack of accountability for banks (Washington Post)

•  HAMP Protests

Mortgage scandal boosts investors’ campaign to get banks to buy back securities: Once run by a loose group of hedge funds, the investors’ campaigns have bulged in size in recent weeks, turning them into a force that could recoup tens of billions of dollars from Bank of America and other large lenders and act as a major drain on their earnings. Previously, this group struggled to force the banking industry to hand over data critical to their lawsuits. Now with the Federal Reserve Bank of New York, the regulator of mortgage giants Fannie Mae and Freddie Mac, and some of the world’s largest funds on board, the investors may be able to compel banks to reveal more about their lending practices

•  Washington Post: Economists: U.S. should remove top bank execs over foreclosure mess

•  Assured Guaranty Sues Deutsche Bank Over Mortgages:  Assured said more than 83 percent of 1,306 defaulted loans examined in one of the transactions, ACE’s Home Equity Loan Trust, Series 2007-SL2, breached Deutsche Bank’s representations and warranties. In the second deal, Home Equity Loan Trust, Series 2007-SL3, 86 percent of the 1,774 loans breached the agreements, Assured said.

Faulty Foreclosures, by Adam Levitin

•  Bank of America Mulls Dividend Hike

Homeowner says Stern sent retaliatory letter: A lawyer for a homeowner who went to Florida’s attorney general about a law firm’s conduct in a foreclosure case claims the firm sent his client a “discriminatory and racially degrading” letter to frighten him into dropping the complaint. The letter, which the homeowner asserts emanated from the Law Offices of David J. Stern in Plantation, was filed with a counterclaim to a foreclosure action brought by CitiMortgage in Miami-Dade Circuit Court.

Any thing else worth seeing?

Category: Financial Press, Foreclosures, Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

21 Responses to “Housing/Mortgage/Foreclosure Linkfest”

  1. gremlin says:

    I wonder what the property tax exposure is for all the banks that own so many houses. I saw some condos in miami that are now listed at 160k, owned by a bank and the previous tax bill was $10k

  2. rip says:

    Did the mortgage pre-approval thing this week which led to some interesting focusing insights. Odds are if it weren’t for Fannie and Freddie and the Fed buying stuff there would be no new mortgages. I intentionally chose a locally owned bank, and they just ain’t gonna hold the paper. Freddie gets it. They’ll service it but that’s about it.

    Now think about that for a moment. Why would bank choose to hold that paper when they can pass it to Uncle Stupid? Get their cut off the top and charge for servicing, whatever that means. Look at the interest rates they are committing to and what happens to the holders when inflation can’t be disguised anymore and interest rates rocket.

    Sounds like gov MBS to me.

    Guess who’s left holding the bag?

    The sheeples.

    Ah, but deficits aren’t important. I guess the gov would be happy with 2% return while paying 8% or more interest to the elites.

    Oops. Forget I said that.

  3. DG_Allen says:

    I was having a perfectly nice day until these links were posted.

    NOW I’M MAD!!!

    Thanks BR.


  4. rktbrkr says:

    WF to refile 55,000 foreclosures the next two weeks! Robo correcter!!! How do you review 55K files let alone correct them in a couple weeks! Remember they didn’t freeze foreclosures last month because their system was fine.

  5. beaufou says:

    banks will manage not to pay any of those taxes and local knuckleheads will pass it on to you.

  6. JerseyCynic says:

    make it stop — good goddess above it’s like being hit with a high pressure fire hose.

    I really can’t take it anymore. When are these articles going to start appearing in local papers for all to see?
    One little blip in today’s hartford courant business section. Election news everywhere. That’s about it. Then it will be post election chaos, followed by the busy holiday season and the beat goes on. ….

    Gonzalo’s been busy doing his part:

  7. JustinTheSkeptic says:

    You know what really stinks? Our dynamic, Know more than anybody else society let everyone get away with this. You people on the East Side of Manhatten, were you making too much money to care? Not to put you out front of everything – please tell me who sold the ship down the drain?

  8. TomL says:

    The solution for all these defective RMBS is for the banks to be required to take back and eat all the crappy mortgages they made in the first place.

    Instead of filet mignon and fine Cabernets, they will choke on their own dogfood.

  9. JustinTheSkeptic says:

    Why should those on the E-side care, being that labor is cheaper elsewhere? Any E-siders here willing to answer? Does cheaper condoms mean more sex?

  10. JimRino says:

    Remember, Election Day is 11/2, just Six Days before We the People can Shut the Crackpot’s Up!
    If you want Business, Insurance and Wall Street FRAUD controlled,
    you’ve got Just Six Days to find a Liberal Democrat to VOTE for.

  11. Barry:

    Have you seen this testimony? Why is this not on the front pages?


    Black is awesome — we’ve featured him frequently over the years (See this).

  12. oldtimer says:

    Difficult for me to make a pertinent comment from across the pond in UK. Except to say conditions here are nowhere near as bad . The situation was emeliorated when bank base rate was lowered to .5% which meant that a lot of unaffordable mortgages suddenly became affordable. Houses are not selling, but one way or another debts are getting repaid. There are even some lucky guys who bought “tracker” loans which were tied to bank base rate. How crazy was that! These fellas are now charged zero interest, they just have to repay the capital.
    If the situation in America is as dire as this blog suggests, where are all the poor souls, who are getting turned out on the street, going? We don’t see any pictures on the newswires of Shanti Towns being built, with soup kitchens and bread lines.
    Looking at the map which you republished from the Washington Post it would seem to me that the problem is mainly concentrated in areas where property has been built as a speculative investment, e.g. Florida. In which case I have little sympathy.
    In the UK there is a big storm brewing over what to do with people who are living in high value property in Central London who have become unemployed, or have never been employed who are charging their rent to the State. The sums of money involved have become soo huge and disproportionate, a scheme to relocate them outside the City is being considered, but already the cries of discrimination and “social cleansing” are going up.

  13. CorpratismNoMore says:

    RE: Assured said more than 83 percent of 1,306 defaulted loans examined in one of the transactions, ACE’s Home Equity Loan Trust, Series 2007-SL2, breached Deutsche Bank’s representations and warranties.

    AAA my ass… and then the ratings agencies have the cajones to downgrade Assured. Fraud doesn’t get more blatant than this does it??

  14. oldtimer,

    to this: “If the situation in America is as dire as this blog suggests, where are all the poor souls, who are getting turned out on the street, going? We don’t see any pictures on the newswires of Shanti Towns being built…”

    see some of to begin with..

  15. AHodge says:

    tks for the william black, i bookmark
    it was hard to find anything good in the FCIC hearings
    but why couldnt one single f ing commishioner cite a few paras from Black to Fuld etc?
    rather than giving them a complete powderpuff pass?

  16. formerlawyer says:

    How about:

    I was a teenage robosigner – coming soon to a theatre near you!

  17. [...] A mortgage mess linkfest.  (Big Picture) [...]

  18. AHodge says:

    Jonathan Weil Oct 27 Bloomberg
    the money quote
    “So now we know what it takes for the Federal Reserve to show an interest in rooting out fraud at a too-big-to-fail bank. The Fed must decide that the Fed itself has been defrauded.

    Borrowers? Depositors? They can protect themselves. Heaven help a bailed-out bank unlucky enough to be discovered servicing some of the Fed’s junky mortgage bonds, though. Good cops know a victim when they see one. The Fed KNOWS A VICTIM WHEN IT IS ONE!
    (caps mine)

  19. rktbrkr says:

    The Fed must be holding an awful lot of underwater RE collateral, do they make margin calls?

    What happens when the Feds policies finally cause interest rates to jump up and they’re holding trillions of interest rate sensitive paper, do they dump the paper at a loss or hold til maturity to get their 2.5%

  20. AHodge says:

    rktbrkr–that is the question
    or as Weil puts it also from the above

    “the larger bailout economy… works something like this: The Treasury each quarter sends new bailout checks to Fannie Mae and Freddie Mac, which the government seized in 2008, to prevent the mortgage giants from falling into mandatory receivership. This ensures the solvency of the Fed, which holds about $1 trillion of mortgage bonds guaranteed by Fannie, Freddie and Ginnie Mae.

    The Fed then can go and buy more securities with freshly printed money, which pushes mortgage-interest rates down and keeps housing prices up, propping up the banking industry. The steady payments to Fannie and Freddie also keep the Treasury from having to backstop their guarantees, for now.

    ……Meanwhile, Fannie, Freddie and the Fed get to say they’re being good stewards of the people’s investments. The charade is part of a neatly circular confidence game. While we can hope this doesn’t end badly, chances are it will eventually. ”

  21. AHodge,

    nice quote, from Weil (who, obviously, gets it)

    He lays out the substance behind ‘Fannie’ & ‘Freddie’ (the GSEs) being termed ‘Laudromats’..