Why Servicers Foreclose When They Should Modify

The National Consumer Law Center put out this little guidebook about servicer incentives and counter-incentives.  It doesn’t tell the whole story about the profits that were made in the initial securitization (the hidden second gargantuan undisclosed yield spread premium) but it does talk about the counter-incentives to modification of struggling loans TODAY.  Of course, it […]

HAMP Limbo

Next come the wave of lawsuits over the servicers’ inability to even stick to the terms of the crummy existing program of HAMP… Plaintiffs say they’re stuck in loan-modification limbo.  Two lawsuits filed yesterday in US District Court in Boston claim Wells Fargo and Bank of America have not followed federal rules for mortgage loan […]

Bad Assignments and Concocted Evidence

Professor Katie Porter (who wrote that law review article on the shoddiness of proofs of claim for mortgages) on bogus assignments (no, literally) and the crapola that passes for proof these days. And the Florida Court of Appeals gives a shout out to those time worn classics of yesteryear, sometimes referred to as the Rules […]

All Things Elizabeth

I do love me some Elizabeth Warren.  Have I said that before? Lots of Elizabeth links: A new article is coming out in Sojourner, as previewed in the Huffington Post by Jim Wallis here: “In clear moral terms, Warren described the current behavior of our biggest banks as deliberately deceiving, entrapping, and cheating unsuspecting customers […]

A Touching Bedtime Tale

Snuggle in andclick here to read a rare and touching story of mortgage banker hypocrisy.  The hell you say… “A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain.”  Mark Twain “Many of us believe that wrongs aren’t wrong if […]


We had a fun week. We learned misleading buzz words to help the lobbyists defeat any meaningful bank reform—always good times. The January SIGTARP report came out with nauseating statistics.  Check out those permanent modification numbers—so much to be proud of.  Can you just hear the soft whoosh of moving vans transporting children from their homes? I have […]