securitization

Guess What Wall Street's Doing With Foreclosed Homes?

Despite the new housing construction boom, there are still lots of empty foreclosures out there, which banks have been trying to rent. But now, Wall Street wants to bundle those rental properties into securities and sell them to investors. Does this sound disturbingly familiar?

Foreclosure Mess Settlement Proposal Is No Fix at All

State attorneys general and federal regulators are rushing to settle the robo-signing foreclosure mess created by the banks and get the real estate market back on its feet. But their proposals don't fully address the one of the fundamental problems of the crisis: Who really owns all those homes?

HSBC's Foreclosure 'Moratorium' Has Big Holes in it

HSBC announced late last month that it had put all of its U.S. foreclosures on hold to review their documents -- back in December. So why are its lawyers still pushing cases ahead? HSBC also says it doesn't robo-sign. So why does its annual report mention foreclosure document problems that sound so much like those caused by robo-signing?

Why Countrywide's Fraudster-in-Chief Isn't Going to Prison

Angelo Mozilo, the former head of Countrywide Financial, isn't going to jail. In fact, he won't even face a trial. Wondering how the most convictable CEO among the titans who brought down the financial system is getting off so easy? The answer lies in the revolving door between Wall Street and its "regulators."

Lawyers' Carelessness Was Key to the Mortgage Mess

As multiple lawsuits and SEC actions progress in relation to the nation's mortgage mess, it's becoming clear that the misbehaviors of the lawyers involved at all stages were not isolated incidents: The misconduct was systemic, and it's time to start holding those lawyers accountable.

Did Bear Stearns Know These Securities Were a House of Cards?

JPMorgan Chase may come to regret buying Bear Stearns. Suits by Wells Fargo and bond insurer Ambac claim that Bear entirely disregarded loan quality to appease its trading desk's ever-growing demand for mortgages to securitize. Now, those parties are suing to get their money back, and they might get it.

Bank of America Sued for Countrywide's Mortgage Sins, Again

On Monday, a group of institutional investors sued Countrywide and Bank of America over Countrywide's mortgages practices. The bank is accused of issuing vast numbers of loans using methods that went beyond lax standards and into fraud, with the sole goal of repackaging them into securities to resell with inflated ratings.

Why Paperwork Matters: Consider This Mortgage Mess

A U.S. bankruptcy court judge in New York wants officials from HSBC and Litton Loan Servicing to appear in her courtroom next month -- to explain their failure to provide adequate documentation concerning how HSBC wound up claiming to hold a mortgage that's involved in a bankruptcy case.

The Mortgage Mess: Blame Banks, Not Homeowners

After an exhaustive examination, DailyFinance's legal reporter comes to a clear verdict: Banks are responsible for 90% of the problem, homeowners 10%. Banks have done three things to create the massive glut of foreclosures choking America's legal systems and laying waste to its real estate markets.

Why a New York Judge Is Throwing Out Foreclosure Cases

On Oct. 20, New York courts ordered attorneys for foreclosing banks to swear they'd personally confirmed that their documents are true and accurate. But a Brooklyn judge has taken things a step further. Since the banks aren't complying, he has started throwing out foreclosure cases.

Countrywide's Errors Could Cost BofA Billions

Testimony in a New Jersey foreclosure case decided last week may spell big trouble for Bank of America. If what one bank employee said on the stand proves to be accurate, paperwork problems it acquired when it purchased mortgage provider Countrywide could leave BofA on the hook for billions.

No Foreclosure Problems at Bank of America?

After a 16-day review of its foreclosures, Bank of America has pronounced itself satisfied. It found no problems at all with any of them, and it's ready to resume processing foreclosures. Let's be blunt: That's a claim so unbelievable it doesn't pass the straight-face test. Here's why ...

A Key Bond Market Thaws, but It May Be Only Temporary

The market for asset-backed securities has reopened after being essentially frozen for a week, in the first example of how unintended consequences from the Dodd-Frank overhaul can create mischief in the financial markets.

A Wall Street Lawyer's Take on Financial Reform

Winthrop Brown, a Washington lawyer who lobbies on behalf of financial services firms, says the new regulations should get fairly high marks from Wall Street -- and from Main Street. But will they prevent another economic meltdown?

2008 Meltdown Vs. the S&L Crisis: Which Was Worse?

In the late '80s and early '90, more than 1,000 savings & loans failed in a financial crisis that cost the government $220 billion to resolve. By contrast, it looks like TARP will only cost the government $105 billion. So is the current financial crisis only half as bad? Not bloody likely.