Home / Author Archives: Krista Franks Brock (page 21)

Author Archives: Krista Franks Brock

Krista Franks Brock is a professional writer and editor who has covered the mortgage banking and default servicing sectors since 2011. Previously, she served as managing editor of DS News and Southern Distinction, a regional lifestyle publication. Her work has appeared in a variety of print and online publications, including Consumers Digest, Dallas Style and Design, DS News and DSNews.com, MReport and theMReport.com. She holds degrees in journalism and art from the University of Georgia.

AG Settlement Brings Relief to Military Members

The settlement reached last week between federal and state officials and the nation's five largest servicers includes specific provisions for U.S. military members wrongfully harmed by their mortgage servicer. Four of the five banks participating in the settlement - JPMorgan Chase, Wells Fargo, Citigroup, and Ally - will review foreclosures of military members since January 2006, identifying instances of violation of the Servicemembers Civil Relief Act, according to the Department of Justice.

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Obama’s FY2013 Budget: Campaign Rhetoric or Sound Solutions?

President Barack Obama's FY2013 budget proposal has instigated a whirlwind of bipartisan debate as Republicans launch accusations that the president's proposal is no more than a piece of campaign material that will harm more than help the nation's economy. The president has allocated $350 billion for short-term measures for job growth, increased funding for HUD by 3.2 percent, and set aside $141 million in additional support for housing counseling.

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Banks Respond to Robo-Signing Settlement

While the $25 billion settlement between five of the nation's largest servicers and 49 of the state attorneys general awaits approval from a judge, there is some relief in the industry that the 16 months of investigation and negotiation has come to a close. Mike Heid, president of Wells Fargo Home Mortgage, says the agreement represents ""a very important step toward restoring confidence in mortgage servicing and stability in the housing market.""

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California Secures $18B in Robo-Signing Settlement

Thursday's unprecedented $25 billion settlement between federal and state officials and the nation's top mortgage servicers was especially favorable to California. After leaving settlement negotiations in September, claiming the proposal at the time was inadequate for California homeowners, Attorney General Kamala Harris opted to sign on to the final settlement, which was revised to secure $18 billion for the state of California. At the time Harris left the settlement, California was expected to receive about $4 billion from the banks.

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Robo-Signing Settlement Finalized

Federal and state officials announced Thursday morning that the federal government and 49 state attorneys general - with Oklahoma as the lone exception - have reached a $25 billion agreement with the nation's five largest mortgage servicers to address what authorities describe as ""loan servicing and foreclosure abuses."" The settlement with the nation's top five servicers – Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial (formerly GMAC) - provides financial relief to homeowners and establishes new homeowner protections.

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Federal Agencies Reiterate Guidelines for Junior Lien Holders

Four federal regulatory agencies issued guidance for junior lien holders regarding loan loss allowances. Junior liens include second mortgages and home equity lines of credit. The Federal Reserve, FDIC, National Credit Union Administration, and Office of the Comptroller of the Currency issued the guidance not to enact new rules, but rather ""to reiterate policy and to remind regulated financial institutions to monitor all credit quality indicators relevant to credit portfolios, including junior liens,"" according to a joint release from the agencies.

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Mortgage and Foreclosure Complaints Quadruple in Massachusetts

Massachusetts Attorney General Martha Coakley has seen mortgage and foreclosure-related complaints quadruple in her state over the past two years. In fact, the category now overshadows all other types of consumer complaints. Coakley's office counted 983 mortgage and foreclosure-related complaints last year, a 431 percent increase over 2009. Coakley says the data confirms that the subprime lending and foreclosure crisis is a top concern for homeowners who face losing their most valued possession.

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Appraisal Institute Offers Guidance on Distressed Comparables

The Appraisal Institute has released guidelines to instruct its members on how to deal with distressed sales and foreclosures when seeking comparables. According to the organization, some homeowners claim appraisers have undervalued their homes by relying on nearby foreclosed and distressed homes to assess a property's value. The Appraisal Institute stresses that qualified appraisers know what adjustments to make when using distressed sales as comparables, but because the issue is ""particularly crucial"" in the current market, it's offering additional guidance.

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Wells Fargo Aims to ‘Lift’ Neighborhoods in Los Angeles, Atlanta

Wells Fargo announced the launch of a new program, Neighborhood LIFT, which aims to bring reluctant buyers off the sidelines to help absorb excess inventory in two major cities. The bank established a goal of lending $10.5 billion to Los Angeles homebuyers and $1.3 billion to Atlanta buyers. In addition, Wells designated $15 million to assisting homeowners with down payments in Los Angeles and $8 million in Atlanta. The company chose to launch Neighborhood LIFT in Los Angeles and Atlanta because the two have high inventories of bank-owned homes.

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Homeowner Satisfaction Rate at 72%, Highest for Short Sale Purchasers

Seventy-two percent of homeowners say they are satisfied with homeownership, according to a recent HomeGain survey of more than 1,400 homeowners. Among the 28 percent who said they were dissatisfied, nearly two-thirds cited price depreciation as the main reason for their dissatisfaction. HomeGain also assessed satisfaction levels by sales type and found that homeowners who purchased a home through a short sale were the most likely to be pleased with their choice, followed by those who purchased a foreclosed home.

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