Tag Archives: banks

The Worst Neighbor? A Bank


photo credit: Tess Vigeland (via Marketplace.org)

I just heard a really poignant Marketplace report on the impact of vacancy on neighborhoods.  With the rash of foreclosures following the sub-prime mortgage meltdown, many properties came into the sole possession of banks, including Bank of America and JPMorgan.  Putting aside the damage done by the foreclosure process itself, what is perhaps more destructive is the vacancy that follows.

The biggest issue?  Banks don’t take care of these properties.  And it’s easy for disrepair to become blight, especially in a neighborhood plagued by systemic vacancy. Continue reading

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San Francisco uncovers a “Crisis of Compliance”

Copyright © 2004 Mai-Linh Doan

San Francisco City and County recently reviewed 382 residential mortgage loans on the books between 2009 and 2011.  Their goal was to check these mortgages for irregularities and ensure compliance with local laws.  Their findings: a 99% irregularity rate and a 84% violation rate (for applicable laws). Continue reading

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Reasons the mortgage deal “stinks”

https://i1.wp.com/www.rewealthcoach.com/wp-content/uploads/2011/10/robo-signing-foreclosure-mill.jpgLast week, Yves Smith wrote a piece that outlines key shortcomings of the controversial mortgage settlement.  I posted about the initial deal awhile back, and then again expressing my general disappointment.  If you’re wondering why people are complaining about this major settlement with the banks (the biggest since the tobacco settlement), Smith’s article does a good job highlighting reasons it “stinks.”

To give you a glimpse, here’s reason number one, according to Smith, which gets at the drop-in-the-bucket nature of the settlement for defrauded homeowners:

“We’ve now set a price for forgeries and fabricating documents. It’s $2000 per loan. This is a rounding error compared to the chain of title problem these systematic practices were designed to circumvent. Continue reading

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Banks Get Immunity; The Wrongfully-Foreclosed? $2k

In what’s being called a “landmark deal” between states and big banks, a $25 billion settlement has been reached over fraudulent and questionable foreclosures during the last several years.

I’ve posted about this before, but to summarize the deal:

  • struggling homeowners get better interest rates on their mortgages
  • about $2,000 paid to those who had homes that were improperly foreclosed
  • banks get a release from future lawsuits about these mortgages Continue reading
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Mortgage Relief “Closer Than Ever”?

Housing has been in the national headlines a lot frequently.  Something we’re going to hear much more about (hopefully) is a settlement between the government and major banks for a string of abusive lending and foreclosure practices.

Some of the worst practices were getting lower-income buyers into high-risk mortgages.  So, these buyers would be barely making payments in regular times; now consider what the economy’s been like over the last six or seven years.  Another unsavory practice was aggressively pursuing foreclosure against homeowners that fall behind on mortgage payments (even after banks worked so hard to get people into homes they shouldn’t have been able to afford). Continue reading

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