News on John Conyers – Congreemsan Affirms Support for Principal Reduction on Mortgages – on Financial Crisis Talk Show 3/24/12

U.S. Congressman John Conyers, the featured guest on The Financial Crisis Talk Center on March 24, 2012 - which aired on Talk Radio 1270, affirmed his continuing support for principal reduction on mortgages as a necessary element to regain economic stability in the housing market. Congressman Conyers also pointed out that he was a strong advocate of the legislation passed by the House to allow cram down of first mortgages on principal residences in Chapter 13 bankruptcy. When asked by host, Ken Gross, of the Talk Center, why the Senate failed to pass the bill when it had the opportunity, the Congressman acknowledged with Gross that the White House, at that point, did not aggressively support the effort and unfortunately the Senate failed to gain the necessary votes. The Congressman affirmed that the law should be changed, but agreed that it will not get through the House with the present majority held by the republicans. To hear the entire interview, go to www.facebook.com/FCTalkCenter or www.financialcrisistalkcenter.com/videos-podcasts/

Ken Gross Comments on $25 Billion Settlement in Michigan Lawyers Weekly

MICHIGAN

LAWYERS WEEKLY

State to share in $25B settlement

Michigan one of 49 states to sign on to compensate for ‘abusive practices’

POSTED: 11:02 PM Friday, February 17, 2012
BY: Carol Lundberg

Michigan will share in a settlement said to be worth $25 billion, but it’s not exactly raining cash on Michigan’s foreclosure problem.

Michigan joined 48 other states in a $25 billion settlement with the country’s five largest mortgage lenders.

The settlement, intended to hold mortgage servicers accountable for what U.S. Attorney General Eric Holder said were “abusive practices,” will provide some relief to homeowners struggling to pay mortgages that are more than their houses are worth.

But the amount of relief is so small, too small to stabilize the country’s still-crippled housing market, said Matthew Heron of Clark Hill PLC in Detroit.

“If you think about it, how could it really solve the problem of $700 billion worth of underwater mortgages?” he asked. “The reason the housing market isn’t recovering yet is a function of the economy, of the free market.”

Heron represents lenders. Though the settlement doesn’t cover the damage to state budgets and individual borrowers as a result of the foreclosure crisis, it does give states’ attorneys general a little bit of resolution without requiring them to invest a lot of resources in investigations.

“The investigations by the attorney generals haven’t resulted in significant settlements, and they do put a burden on the states, which are having economic problems,” Heron said.

But the states and borrowers certainly aren’t going to receive $25 billion worth of relief.

Of the $25 billion, the banks — Bank of America, Citigroup, JPMorgan Chase, Wells Fargo and GMAC/Ally — are paying about $5 billion in cash to federal and state governments, or approximately 1 percent of their combined market capitalization.

Of that, $1.5 billion will be used to establish a Borrower Payment Fund to provide payments to borrowers who lost their homes to foreclosure, according to Michigan Attorney General Bill Schuette. The payments will be as much as $2,000, though details have not yet been worked out.

The payments to state and federal governments will be used to repay public funds lost as a result of servicer misconduct, and to fund programs such as legal aid and housing counseling that the states are providing. The settlement excludes borrowers with Fannie Mae and Freddie Mac mortgages, who make up approximately half of the homeowners in the U.S.

Schuette said in a press release that Michigan residents will receive approximately $500 million dollars, but the only hard cash flowing into Michigan will be $101 million, which will be paid mainly to the State of Michigan. (See “Settlement details,” right.)

That payment is not meant to make up for a foreclosure,” said attorney general spokesman John Selleck. “It’s a punishment for poor customer service by the banks. We were getting calls from people who would be on the phone with a mortgage servicer trying to get some kind of help with their payments, at the same time that the bank was foreclosing on them.”

He said that when the housing market crashed in 2008, it crashed very hard and very fast.

“The banks just didn’t handle their customers the way they should,” Selleck said. “The settlement is to address two main thrusts — horrendous customer service by the banks, and robosigning, which we are still criminally pursuing.”

Michigan has been particularly hard-hit by the foreclosure crisis. Last year, a California-based analytics firm, CoreLogic, reported that 35 percent of Michigan homeowners are underwater in their mortgages.

The deal does nothing to solve the problems in the housing market, which will continue to be a drag on the economy because small business owners aren’t able to create jobs when they have no equity in their real estate, said Kenneth Gross of Thav Gross PC in Bingham Farms. Gross represents borrowers.

What would help borrowers the most, he said, is principal reductions, something the banks have been reluctant to do.

“This settlement doesn’t address any of that. It’s extremely limited to the issues of robo-signing and fraudulent foreclosures,” Gross said.

“Basically what’s going to happen is everyone in the world going to call my office wondering how to get their $2,000,” Gross said. “But no one knows yet who will be eligible to receive what. There have been 1.9 million foreclosures with another 1.9 million still to come.”

The settlements will not prevent individual borrowers from suing their lenders if they have a cause of action, Heron noted.

“What this does do is to free up the attorney generals and their resources to decide what they want to dedicate their time to,” Heron said. “The public settlement funds are being used to prop up the services the states would have a hard time providing.”

If you would like to comment on this story, please contact Carol Lundberg at (248) 865-3105 or carol.lundberg@mi.lawyersweekly.com.

From CBS Detroit – Banks In $25B Deal To Settle Foreclosure Abuses

Banks In $25B Deal To Settle Foreclosure Abuses

February 9, 2012 4:07 PM

BINGHAM FARMS (WWJ) – Michigan is among 49 other states to receive a chunk of cash from a landmark $26 billion settlement from five banks for alleged foreclosure abuse.

Some borrowers in Michigan could get between $1,500 and $2,000.

“States across America have worked hard to present a united front in the fight to help stabilize the housing market in the aftermath of harmful mortgage lending and foreclosure practices,” said Michigan Attorney General Bill Schuette. ”As a result, Michigan residents who were hit hard by this crisis will now receive assistance.”

Attorney Kenneth Gross with Thav Gross in Bingham Farms, who represents homeowners going through the foreclosure process, said the settlement is disappointing.

“We’re very disappointed with it, because I think the banks did a lot that they should be called upon to pay for, and I don’t think they are,” Gross said.

How will borrowers get their hands on the cash?

“I’ll research it and once it’s out there I’ll put it up on our website,” said Gross. “It certainly isn’t going to be something that somebody goes to hire an attorney to try and get this $1,500 or $2,000. I don’t see how they’re gonna come out ahead after paying attorney fees.”

“So, it’s gotta be something where you can exercises self  help and get it done.” he said.

The five banks in the settlement include Bank of America, Citi Group, J.P. Morgan Chase and Wells Fargo.

“I’ll research it and once it’s out there I’ll put it up on our website,” said Gross. “It certainly isn’t going to be something that somebody goes to hire an attorney to try and get this $1,500 or $2,000. I don’t see how they’re gonna come out ahead after paying attorney fees.”

“So, it’s gotta be something where you can exercises self  help and get it done.” he said.

The five banks in the settlement include Bank of America, Citi Group, J.P. Morgan Chase and Wells Fargo.

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.

The Opportunity Exists – Ken Gross Column – Jewish News – Sept 8, 2011

This applies to so many — but you need to recognize it and act on it!

The Opportunity Exists AL (9.8.2011)

Mr. President – You Need to Deal – By Ken Gross

Mr. President – You Need to Deal

The big speech came – and went. Another speech offering that which we anticipated but not that which America needs. A proposed $447 Billion program – and the President neglects to mention the price tag in the speech. I suppose that is the prerequisite to avoid addressing in specifics a realistic plan to pay for it. After witnessing Congress’s infantile behavior last month on the deficit cap – it is a certainty that the President’s program will go nowhere – other than causing another slow burn of intransigence by Congress.

Sometimes you need to make a deal that your adversary cannot refuse. You do this carefully – but when you need something done  – if it’s important enough – you do it. In this case, the President needs two things – he needs to stimulate jobs and the economy and he needs to garner support for next November. Instead of offering a plan the Republican’s will now have a field day complaining about – he should have taken the podium and laid out a program the Republican’s could not refuse. First – tell us it’s going to cost $447 Billion. Second – that though he doesn’t like it – we’re going to pay for it by shelving Obama Care for 5 years – with the exception only of keeping the no pre-exisiting condition requirement and providing coverage for dependent children to age 26. Third – acknowledge what everyone already knows –without a housing market the economy has no chance. To stimulate housing, tell us that mandated principal reduction on homes underwater will occur and that you will mandate easing the credit restrictions to refinance and purchase a new home. Top this off by telling us that the cost will be charged to the banking industry who caused this fiasco.

Mr. President, if you went in this direction,– the Republican’s could not say no – because the cost would be covered, we all want economic growth and the banking lobby would be handcuffed to protest. If you want four more years – you’re going to need to be a much better deal maker.

Ken Gross is an attorney with THAV GROSS PC (www.thavgross.com) and hosts The Financial Crisis Talk Center (www.fctalkcenter.com), a radio program that airs weekly at 8:30 AM on Saturday mornings on WDFN “The Fan” 1130 AM.

Ken Gross Appears Again on Chuck Stokes's Spot Light On the News – Channel 7 9:30 AM Sunday, June 26th -

Catch last weeks video from the June 19th show:

The Topic is MERS Foreclosure and Houses Underwater

Catch Ken Gross Interviewed by Alisa Zee from Sunday 12/3 Radio FM/AM

Listen here  to Aliza Zee – The Alisa Zee Fan Club ‘s interview of  Ken Gross from The Financial Crisis Talk Center on the current state of the Financial Crisis – Banks, houses underwater and credit card debt are covered.  This interview aired on Sunday, December 5, 2010 on on WOMC, WYCD, WXYT-AM, 97.1 and 98.7 AMP – Part 1 Part 2

Ken Gross Interviewed by the Examiner.com – Detroit

Check out Lori William’s interview of Ken Gross in the Examiner – Will Santa Bring an end to the Housing Crisis for Christmas?

Ken Gross on Fox 2 News with Robin Schwartz on the latest announcement of help for homeowners …