Tag Archive for: financial crisis
Q & A About the Independent Foreclosure Review – Announced the Week of 11/1/11 – from the Wall Street Journal with Commentary from Ken Gross
Commentary from Ken Gross at The Financial Crisis Talk Center:
Below is the text of Questions and Answers that appeared in the Wall Street Journal about the “Independent Foreclosure Review” process announce by the Administration this week. The Financial Crisis Talk Center’s take on this program is that it is an “INSULTING” waste of financial resources that will accomplish virtually nothing other than add to the frustration homeowners who have been abused have already suffered. The items that are compensable as set forth below – are all outrageous and unusual actions in the foreclosure process that can be redressed by victims using the services of qualified attorneys. This program is NOT going to provide relief for robo signing foreclosures and people whose due process rights were violated in taking their homes because of non-payment. If you have gone through foreclosure, the most important issues to focus on are whether you have or still have the opportunity to begin anew debt free. This mean – if you have lingering credit card debt or exposure on second mortgages or the deficiency on the first mortgage, you should meet with an experienced financial crisis management attorney to learn your options is ridding yourself of any lingering debt. Anyway this is out take – but so you have the benefit of being informed – info on the program is set forth below:
From the Wall Street Journal :
Independent Foreclosure Review
Looking for information about the Independent Foreclosure Review?
Homeowners whose primary residence was part of a foreclosure action between January 1, 2009 and December 31, 2010, and whose home loan was serviced by a participating servicer, may be eligible for an Independent Foreclosure Review.
The Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency (federal bank regulators) have required an Independent Foreclosure Review by an independent consultant to identify eligible customers who may have been financially injured due to errors, misrepresentations, or other deficiencies in their foreclosure process. If the review finds that financial injury occurred, the customer may receive compensation or other remedy.
To qualify, your mortgage loan would need to meet the initial eligibility criteria:
- Your mortgage loan was serviced by one of the participating mortgage servicers.
- Your mortgage loan was active in the foreclosure process between January 1, 2009 and December 31, 2010.
- The property was your primary residence.
Eligible customers will be mailed a letter by December 31, 2011 that explains the Independent Foreclosure Review process and a Request for Review Form that identifies some examples of situations that may have led to financial injury. The form must be completed and postmarked not later than April 30, 2012.
If your mortgage loan meets the initial eligibility criteria and you have questions, need a form by mail, or need help completing the form you have received in the mail, call 1-888-952-9105, Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET.
This information is accurate as of date of printing and is subject to change without notice. All other communications, legal documents and disclosures will be provided to you in English. We recommend that you obtain the services of an independent third party interpreter to assist you as needed.
Independent Foreclosure Review
Q1. What is the Independent Foreclosure Review?
As part of a consent order with federal bank regulators, the Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS) ( independent bureaus of the U.S. Department of the Treasury), or the Board of Governors of the Federal Reserve System, fourteen mortgage servicers and their affiliates are identifying customers who were part of a foreclosure action on their primary residence during the period of January 1, 2009 to December 31, 2010.
The Independent Foreclosure Review is providing homeowners the opportunity to request an independent review of their foreclosure process. If the review finds that financial injury occurred as a result of errors, misrepresentations, or other deficiencies in the servicer’s foreclosure process, the customer may receive compensation or other remedy.
Q2. What is a foreclosure action? What foreclosure actions are part of the Independent Foreclosure Review?
Foreclosure actions include any of the following occurrences on a primary residence between the dates of January 1, 2009 and December 31, 2010:
- The property was sold due to a foreclosure judgment.
- The mortgage loan was referred into the foreclosure process but was removed from the process because payments were brought up-to-date or the borrower entered a payment plan or modification program.
- The mortgage loan was referred into the foreclosure process, but the home was sold or the borrower participated in a short sale or chose a deed-in-lieu or other program to avoid foreclosure.
- The mortgage loan was referred into the foreclosure process and remains delinquent but the foreclosure sale has not yet taken place.
Q3. How do I know if I am eligible for the Independent Foreclosure Review?
Your loan must first meet the following initial eligibility criteria:
- Your mortgage loan was serviced by one of the participating mortgage servicers listed below.
- Your mortgage loan was active in the foreclosure process between January 1, 2009 and December 31, 2010.
- The property was your primary residence.
If your mortgage loan does not meet the initial eligibility criteria outlined above, you can still have your mortgage concerns considered by calling or writing your servicer directly.
Q4. Who are the participating servicers? What mortgage servicers and their affiliates are part of the Independent Foreclosure Review process?
The list of participating servicers includes:
- America’s Servicing Co.
- Aurora Loan Services
- Bank of America
- Beneficial
- Chase
- Citibank
- CitiFinancial
- CitiMortgage
- Countrywide
- EMC
- EverBank/EverHome Mortgage Company
- GMAC Mortgage
- HFC
- HSBC
- IndyMac Mortgage Services
- MetLife Bank
- National City Mortgage
- PNC Mortgage
- Sovereign Bank
- SunTrust Mortgage
- U.S. Bank
- Wachovia Mortgage
- Washington Mutual (WaMu)
- Wells Fargo Bank, N.A.
Q5. What are some examples of financial injury due to errors, misrepresentations, or other deficiencies in the foreclosure process?
Listed below are examples of situations that may have led to financial injury. This list does not include all situations.
- The mortgage balance amount at the time of the foreclosure action was more than you actually owed.
- You were doing everything the modification agreement required, but the foreclosure sale still happened.
- The foreclosure action occurred while you were protected by bankruptcy.
- You requested assistance/modification, submitted complete documents on time, and were waiting for a decision when the foreclosure sale occurred.
- Fees charged or mortgage payments were inaccurately calculated, processed, or applied.
- The foreclosure action occurred on a mortgage that was obtained before active duty military service began and while on active duty, or within 9 months after the active duty ended and the servicemember did not waive his/her rights under the Servicemembers Civil Relief Act.
Q6. How does my mortgage loan get reviewed as part of the Independent Foreclosure Review?
Homeowners meeting the initial eligibility criteria will be mailed notification letters with an enclosed Request for Review Form before the end of 2011.
If you believe that you may have been financially injured, you must submit a Request for Review Form postmarked no later than April 30, 2012. Forms postmarked after this date will not be eligible for the Independent Foreclosure Review.
If you have more than one mortgage account that meets the initial eligibility criteria for an independent review, you will receive a separate letter for each. You will need to submit a separate Request for Review Form for each account. It is important that you complete the form to the best of your ability. All information you provide may be useful.
Q7. How can I submit the Request for Review Form?
Homeowners meeting the initial eligibility criteria will be mailed notification letters with an enclosed Request for Review Form before the end of 2011. If you received the notification letter, you can send in your Request for Review Form in the prepaid envelope provided, postmarked no later than April 30, 2012.
If your loan is part of the initial eligible population and you need a new form by mail, have questions, or need help completing the form you have received in the mail, call 1-888-952-9105, Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET.
Q8. Who can submit or sign the Request for Review Form?
Either the borrower or a co-borrower of the mortgage loan can submit and sign the form. The borrower signing the Request for Review Form should be authorized by all borrowers to proceed with the request for review. In the event of a finding of financial injury, any possible compensation or remedy will take into consideration all borrowers listed on the loan, either directly or to their trusts or estates.
Q9. What if one of the borrowers has died or is injured or debilitated?
Any borrower, co-borrower or attorney-in-fact can sign the form. In the event of a finding of financial injury, any possible compensation or other remedy will take into account all borrowers listed on the mortgage loan either directly or to their trusts or estates.
Q10. Do I need an attorney to request or submit the Request for Review Form?
No. If your mortgage loan meets the initial eligibility criteria and you are currently represented by an attorney with respect to a foreclosure or bankruptcy case regarding your mortgage; please refer to your attorney.
The Independent Foreclosure Review is free. Beware of anyone who asks you to pay a fee in exchange for a service to complete the Request for Review Form.
Q11. If I have already submitted a complaint to my servicer, do I need to submit a separate Request for Review Form to participate in this process?
If your mortgage loan meets the initial eligibility criteria, you should submit a Request for Review Form to ensure your foreclosure action is included in the Independent Foreclosure Review process.
Q12. What happens during the review process?
You will be sent an acknowledgement letter within one week after your Request for Review Form is received by the independent review administrator. Your request will be reviewed for inclusion in the Independent Foreclosure Review. If your request meets the eligibility requirements, it will be reviewed by an independent consultant.
Your servicer will provide relevant documents along with any findings and recommendations related to your request for review to the independent consultant for review. Your servicer may be asked to clarify or confirm facts and disclose reasons for events that occurred related to the foreclosure process. You could be asked to provide additional information or documentation. Because the review process will be a thorough and complete examination of many details and documents, the review could take several months.
The Independent Foreclosure Review will determine whether financial injury has occurred as a result of errors, misrepresentations or other deficiencies in the foreclosure process. You will receive a letter with the findings of the review and information about possible compensation or other remedy.
Q13. How do I know who my servicer is? How do I find them?
The company you sent your monthly mortgage payments to is your mortgage servicer. It is not necessarily the company whose name is on the actual foreclosure documents (although in most cases, it is). If you don’t remember the name of the servicer for your foreclosed property, we suggest you review cancelled checks, bank statements, online statements or other records for this information.
If you are still unsure of who your mortgage servicer is or do not see their name listed in Q4, please call 1-888-952-9105, Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET.
Q14. If I request an Independent Foreclosure Review, is there a cost or will there be a negative impact to my credit?
The Independent Foreclosure Review is a free program. Beware of anyone who asks you to pay a fee in exchange for a service to complete the Request for Review Form.
The review will not have an impact on your credit report or any other options you may pursue related to your foreclosure.
Q15. Where can I call if I need help completing the form or have any questions about the review process?
Call 1-888-952-9105 Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET. If you have already submitted a Request for Review Form, please have your Reference Number available to expedite your call.
Q16. How are military servicemembers affected by the Independent Foreclosure Review?
Servicers are required to include in the review all loans covered by the Servicemembers Civil Relief Act that meet the qualifying criteria. However, servicemembers or co-borrowers may also request a review through this process. Financial injury may have occurred if the foreclosure action occurred on a mortgage that was obtained before active duty military service began and while on active duty, or within 9 months after the active duty ended.
Q17. How am I affected if I submit a Request for Review Form while in active bankruptcy?
If you submit a Request for Review Form and a review is conducted of your foreclosure process, this will have no impact on your bankruptcy. The letter being sent to you about the Independent Foreclosure Review is not an attempt to collect a debt. If you are in bankruptcy, please refer this letter to your attorney.
Q18. I’m still working with my servicer to prevent a foreclosure sale. Will I still be able to work with them?
Yes, continue to work with your servicer. Participating in the review will not impact any effort to prevent a foreclosure sale. The review is not intended to replace current active efforts with your servicer.
Q19. How long will the review process take and when can I expect a response?
You will be sent an acknowledgement letter within one week after your Request for Review Form is received by the independent review administrator. Because the review process will examine many details and documents, the review could take several months. The Independent Foreclosure Review will determine if financial injury occurred as a result of the servicer’s errors, misrepresentations or other deficiencies in the foreclosure process. You will receive a letter with the findings of the review and information about possible compensation or other remedy. Not every finding will result in compensation or other remedy.
Q20. What happens if the review finds that I was financially injured as a result of errors, misrepresentations or other deficiencies in the foreclosure process?
You will receive a letter with the findings of the review and information about possible compensation or other remedy. The compensation or other remedy you may receive will be determined by your specific situation. Not every finding will result in compensation or other remedy.
Q21. What happens if the review finds that I was not financially injured as a result of errors, misrepresentations or other deficiencies in the foreclosure process?
You will receive a letter with the findings of the review. Not every finding will result in compensation or other remedy.
Q22. What if I disagree with the eligibility requirements or the result of the Independent Foreclosure Review?
The decision of the review is considered final and there is no further recourse within the Independent Foreclosure Review process. The Independent Foreclosure Review will not have an impact on any other options you may pursue related to the foreclosure process of your mortgage loan.
Q23. Does filing a Request for Review Form prevent me from filing other litigation or action against the servicer?
No. Submitting a request for an Independent Foreclosure Review will not preclude you from any other options you may pursue related to your foreclosure.
Sunday/Monday And Have A Little Faith – by Ken Gross – December 8, 2011
Appearing in the December 8, 2011 edition of the JNews – Metro Detroit
Sunday/Monday And Have A Little Faith
Another Sunday night – time to try and salvage some relaxation, maybe watch a movie, and gear up for Monday morning. So clicking my way to an espionage movie, I ran across Have a Little Faith – Mitch Albom’s TV premier that aired on the Sunday following Thanksgiving. I’m not typically a Hallmark Hall of Fame guy – but when I saw it was on I said, hey – Tuesday’s With Morrie struck many a chord with me – so I should give it a try. In fact, until Tuesday’s With Morrie – I did not think of Mitch any different than any other columnist or sports person that I don’t know but do listen or read on occasion. Have a Little Faith affected me in the same manner as Morrie –it was Mitch’s revelation of his own personal conflict of questioning his plight in life – that intrigued me. I believe it is a lingering anxiety so many of us feel – that our day to day lives take on a significance that in the end is not that significant – and when we find ourselves in a “moment” where “no one is around” we know – and we feel – that void – and the guilt – that we do not do enough –to make this a better world – to help those who need.
Have a Little Faith - was fun. Hogans, Temple Israel – it was like we were there. But way beyond that – there is a powerful message. Rabbi Lewis, in his last sermon – dedicates his “moment” to one of atonement for not doing enough to help his congregates – after having spent 60 selfless years of doing precisely that. I was overcome with emotion at that moment. I knew then, I know now – it’s simply because we become so absorbed in the day to day affairs of managing our lives that we are not in touch with a greater calling.
So how does Have HavehhhHa Little Faith – tie to the current economic issues we face? The tie is not financial – rather it is based on the difference between right and wrong, and good vs. evil. Our elected officials have a constituency far greater than that of Rabbi Lewis and Pastor Henry in Have a Little Faith. The American public and the United States of America is their congregation. Our elected officials are the stewards of our republic and are charged with a greater calling – of looking out for the greater good than individual gain. If that means arriving at a compromise to balance the budget, attaining a workable health care policy that will meet our nation’s needs pr adopting a tax structure that is realistic and fair – then they need to HahHave a Little Faith and do what they have been charged with the privilege and responsibility to do. Rabbi Lewis and Pastor Henry should be their guide.
In the end, there is something powerful and exhilarating when we (in this case me) are reminded of our own humility. For me this comes when I watch a movie, by myself, with no one there, no pretentions – and the emotions reach to my inner sole. Have a Little Faith reached me that way –so I salute and thank Mitch Albom for having the talent and heart to remind me that there exists much more to our lives, than showing up on Monday morning. Mitch – thank you.
Ken Gross is an attorney with Thav Gross and host of The Financial Crisis Talk Center, a radio program that airs weekly at 10:00 AM on Saturday mornings on Talk Radio 1270 WXYT AM.
Fannie, Freddie Spend $640,000 on Conference
Comment from Ken Gross -This is so far beyond pathetic – Frannie and Freddie spend $640,000 on a conference for 100 people ($6400/per) to entertain the mortgage companies — This is an insult to the very foundation of democracy. Ed DeMarco – the prince of NO PRINCIPAL REDUCTION on mortgages – you need to join the ranks of the 13 million unemployed Americans – NOW, RIGHT NOW!!!!!
Sometimes lines are crossed, then again, other times– you find out the other side doesn’t even recognize that a line exists … this is one of those times – we have funded them with 150 BILLION of US Taxpayer money – which is growing every day — and rather than solve the housing crisis – they are spending money on Bonus (13 Million for 10 execs, and throwing AIG style parties for the mortgage lenders) Tomorrow – when another 1,000 or so people lose their homes to foreclosure – we need to ask the question – How can we allow this to go on?
FROM THE WALL STREET JOURNAL —
- DECEMBER 1, 2011
Fannie, Freddie Spend $640,000 on Conference
By ALAN ZIBEL
Fannie Mae and Freddie Mac spent more than $640,000 this fall to send 100 employees to a Chicago mortgage-industry conference and to host events there, a decision the companies defended amid criticism from a lawmaker.
The Federal Housing Finance Agency, which oversees the government-controlled mortgage-finance companies, outlined the costs in a letter to Rep. Randy Neugebauer (R., Texas), a member of the House Financial Services committee. Mr. Neugebauer, who had sought details on the conference, called the spending “lavish.”
The federal housing regulator “has special responsibility to make sure that Fannie and Freddie are run responsibly and in a way that minimizes taxpayer losses,” Mr. Neugebauer said.
The spending included nearly $342,000 for travel, food, hotel and meeting-room space and $74,000 on four invitation-only dinners for mortgage-lending companies that do business with Fannie and Freddie. The companies spent about $140,000 to sponsor the conference and about $68,000 for registration fees, the regulator said.
The companies’ top regulator defended the spending as a whole, but said he would apply greater scrutiny to sponsorships and dinner events. “I believe we can and should provide more detailed direction regarding such expenditures in the future,” Edward DeMarco, acting director of the FHFA, wrote to Mr. Neugebauer in the Nov. 23 letter. The letter was released Wednesday by Mr. Neugebauer’s office.
Fannie and Freddie dominate the U.S. mortgage market, purchasing and guaranteeing about 70% of new loans from mortgage lenders. Though lenders have few other outlets to purchase their mortgages, Fannie and Freddie say they value face-to-face meetings with customers as a way to understand their needs.
“The cost savings associated with meeting hundreds of customers at one location versus traveling to various locations across the country is significant,” said Amy Bonitatibus, a Fannie spokeswoman. Freddie spokesman Doug Duvall said the event allowed Freddie to meet “with our lender customers in a cost-efficient way. In just two days we held approximately 200 meetings.”
Fannie and Freddie have reduced their spending on conferences since they were put under federal control, and attend such events when there is enough business justification for doing so, the FHFA said. Scrutiny of Fannie and Freddie has grown on Capitol Hill; their federal rescue three years ago has so far cost taxpayers more than $151 billion. Lawmakers have been irate about large bonuses paid to executives hired to run the companies after their near collapse in September 2008.
The conference, held in October, was also sponsored by the mortgage-lending divisions of J.P. Morgan Chase & Co. and Citigroup Inc. as well as other service providers. Speakers included Rep. Spencer Bachus (R., Ala.), chairman of the House Financial Services Committee and Housing and Urban Development Secretary Shaun Donovan.
FCTC Announces Annual Turkey Awards
FCTC – 2011 TURKEY AWARDS
These are “turkey awards” – not loser awards. Jerry Sundusky, Penn State Administration – those are all losers so they don’t rate turkey awards….
10. Banks – for making sure they don’t take any of that money and actually loan it to small business to spur economic growth
9. NBA Basketball Players – for thinking we really care if you strike for the next 20 years
8. Fox News and All the Conservative Talk Hosts – who determined that the only news worthy event of Occupy Wall Street was discussion of sanitary conditions
7. Bank of America – for consistently doing nothing to help the housing crisis in the largest way
6. Ndamukong (Damuknon) Suh – for his post game explanation of how a STOMP is simply an Exit Strategy
5. Herman Cain – for thinking that foreign policy can also be solved by 9/9/9
4. Ed Demarco – Head of FHFA (Federal Housing Finance Agency
3. President O’bama – for not running Ed DeMarco’s butt out of town
2. United States Congress – for makings sure our credit rating is downgraded and our future is bleak all in the good spirit of bipartisism
1. American People – for allowing ourselves to be treated the way we are – always say, it’s okay to make a mistake, but you need to learn from it.
MERS CASE IN MICHIGAN IS REVERSED BY MICHIGAN SUPREME COURT – SAD DAY FOR HOMEOWNERS WHO HAVE BEEN WRONGFULLY FORECLOSED
LSJ.com ..
Michigan court ends doubt over foreclosure process
LANSING, Mich. — The Michigan Supreme Court has reversed an appeals court ruling that had cast doubt on thousands of home foreclosures across the state.
The Supreme Court said Wednesday that it’s legal for Mortgage Electronic Registration Systems to foreclose by advertisement when a loan turns bad. Known as MERS, the company acts as an agent for lenders.
Property owners in Kent and Jackson counties had convinced the appeals court that MERS couldn’t take certain steps in the foreclosure process because it didn’t actually lend the money. But in a 4-3 decision, the Supreme Court says MERS has an interest in the debt and acted properly under Michigan law.
Democratic justices in the minority wanted to keep the case alive and hear more argument.
Two Friends – Fannie and Freddie (from the Financial Crisis Talk Show – On Air November 12, 2011)
A poem – emphasizing and poking fun at the reality that the banking industry is the benefactor of the Fannie and Freddie Mac bailout that as of this date is at $156 Billion dollars of taxpayer money. All indications point to a settlement of the Fannie and Freddie Mac lawsuit against the major banks in the $25-29 Billion Range. Guess who will cover the loss of $126 Billion – plus??
Fannie & Freddie *** Two Friends
By Ken Gross
November 12, 2011
Once upon a time in our great land
Two friends to all –
Fannie and Freddie sat on a wall
But then came a crises and they both took a great fall
All the King’s financial wizards, banks and good men
couldn’t put Frannie and Freddie back together again
Their best friends – the banks – then cried “oh no”
Because without their great friends to buy their bad loans
All the great loss would be on their bones
But with the magic of political debate
And a 147 billion of taxpayer loot in the crate –
they assembled Fannie and Freddie back together again
Now their great friends are again covering their loans
Leaving all of us with nothing but moans
So now all they need is to settle the score
And the scam no doubt will become lore
Though some complain it matters not
The deal will be cut behind doors that are closed
At a cost that’s a mere pittance against the billions lost and foreclosed
But considering these days – it’s certainly not
much a surprise …
As we watch them silently laugh in our face
One thing is certain – it’s a disgrace
for the whole human race