mortgage

Are Attorneys Illegally Outsourcing Foreclosure Work?

Two foreclosure middlemen, LPS Default Solutions and Prommis Solutions, are accused of illegally paying non-attorneys to practice law so banks and law firms could save on document filing costs. It's more than a money issue -- the errors these rushed non-attorneys are making may lead to another messy stage of the mortgage meltdown.

Mortgage Delinquencies Fall in the Third Quarter

A smaller percentage of mortgage holders were delinquent on their payments in the third quarter than in the second quarter, although the percentage of delinquencies remains up from the same period last year.

Banks Demanding Higher Credit Scores for Mortgages

Bank of America and Wells Fargo were among banks that tightened credit standards for mortgages insured by the Federal Housing Administration in a move that may put a crimp in the U.S. housing recovery by effectively eliminating 6.3 million people from the potential home buying pool.

Is Robo-Signing Just the Tip of the Iceberg?

In a Senate panel hearing Monday, the Iowa attorney general said the problems in the home-loan industry extend well beyond just "robo-signing." A system-wide overhaul is needed, he said.

Bank of America May Pay Employee Bonuses in Stock

As Bank of America continues to cope with fallout from the housing and mortgage crisis, the financial institution may have to pay some year-end employee bonuses in the form of stock because of a possible cash shortfall related to its buy-back of stock from the federal government.

Freddie Mac: Delinquent Borrowers Staying in Homes Longer

The amount of time it takes to foreclose on a home is increasing, meaning that delinquent borrowers can stay in their houses for months after they stop making payments, according to Freddie Mac. Freddie Mac, which, along with Fannie Mae finances about half of all U.S. mortgages, says that homes now take as long as eight months to work their way through the foreclosure process, The Financial Times reported.

FBI Reportedly Investigating Foreclosure Crisis

The FBI is trying to determine if large lenders broke the law in the mortgage foreclosure crisis. The agency is trying to determine whether individuals working for large mortgage lenders acted with criminal intent or were simply overwhelmed by events during the crisis, The Associated Press reported without naming its sources.

Foreclosure Bill, Blasted by Critics, Vetoed by Obama

U.S. President Barack Obama on Thursday vetoed a bill that its critics say would've make it harder to challenge foreclosure-related documents. Allegations of invalid foreclosure paperwork have been popping up around the country.

House or Food? Consumers Protect Their Credit Cards

Normally, it would be considered a positive sign that people are reducing their credit card debt load. But a series of statistical releases this week confirms an ominous new trend among desperate consumers: They have stopped paying their mortgages but are continuing to pay off their credit cards so they can continue to buy staples, like food.