News

Secretary of Housing and Urban Development Ben Carson, in an interview with NPR, has attempted to clarify last month’s controversial comment that “poverty is a state of mind.” Carson has received extensive criticism from housing advocates and the media for his comment in what has been deemed insensitive in light of proposed budget cuts to the Secretary’s department. Carson defended his position by stating that while he did say that the way a person thinks is a factor in getting out of poverty, he did not say it was the only factor, or that simply wishing away poverty was enough to get a person out of it.

BlackRock Inc., along with 23 other investors of residential mortgage-backed securities, petitioned New York federal Judge Lorna G. Schofield to hear oral arguments to advance their case to class status as they seek to collect over $3 billion in lost assets from HSBC. The initial suit claims that HSBC did not do its due diligence in protecting certificate holders, and that they failed to ensure the home loans being sold from mortgage originators and sponsors to the trust were only selling debt from credit-worthy borrowers. The plaintiff’s claim that HSBC’s direct neglect was the cause of loses when default rates hit their peak during the housing crisis.

The Federation of REO Certified Experts—or FORCE, for short—has appointed new leaders to its Advisory Council. Among those named were Hugh Morrow of RE/MAX Preferred in Birmingham, Alabama; Tara Nagelhout of Emerald Valley Real Estate in Eugene, Oregon; Steve Pagano of Coldwell Banker in Huntington Station, New York; Terry Rasner-Yacenda of Reno Tahoe Realty Group in Reno, Nevada; and Dick Thackston of R.H. Thackston & Company in Winchester, New Hampshire. Nancy Braun of Showcase Realty was named Chairperson.

According to new data, both overall foreclosure starts and first-time foreclosure starts recently hit record lows, with first-time starts hitting their lowest point on record at just 24,200. Foreclosure pre-sale inventory also dropped steeply for the month, falling 3.47 percent. The states with the highest share of delinquent loans were Mississippi, Louisiana, Alabama, West Virginia, and Maine. Mississippi had the most seriously delinquent loans.

The House will vote on the Financial CHOICE Act, a Dodd-Frank “off-ramp”, this coming Wednesday. Republicans proposed this reform to the financial system in mid-April to free the U.S. from government micromanagement when it comes to excessive regulations on the financial system. See what else will take place in the upcoming week here.

RE/MAX Holdings, Inc. announced Tuesday the immediate appointment of COO Adam Contos to RE/MAX Co-CEO sharing responsibilities with Co-Founder and now Co-CEO Dave Liniger.

Wells Fargo Home Lending announced that Liz Bryant will now lead the company’s retail sales organization reporting to Head of Mortgage Production, Michael DeVito.

Fourteen investors announced Friday that trustees accepted the settlement offer from the Plan Administrator for Lehman Brothers Holdings Inc., a global financial services firm that declared bankruptcy in 2008. The announcement is said to be an important step in resolving the Lehman RMBS claims. The settlement will payout a minimum of $2.4 billion, subject to a judges approval.

On Thursday, Federal Reserve Governor Jerome Powell went on record saying the Fed plans on reviewing some of what he believes are the more outdated rules mandated by the Dodd-Frank act. Banks’ board of directors could see a relief of some of the day to day responsibilities and concentrate more on big picture if Powell is successful. Banks may also see more transparency in the CCAR, something a majority of the industry has been requesting for years.

The Department of Labor released its May 2017 Employment Situation Friday reporting changes in household and establishment survey data. Total nonfarm payroll employment increased, however unemployment rates were fairly stagnant. Experts predict this discouraging report could mean rate hikes in 2017’s future.