SIGTARP Schools Treasury on Repeated Failure to Protect Homeowners Instead of Servicers With TARP Money

Highlights from the Special Inspector General for TARP’s latest Report: UPDATE ON UNIMPLEMENTED RECOMMENDATIONS CONCERNING HAMP TARP’s signature housing program, HAMP, has not provided enough sustainable foreclosure relief given the unspent TARP funds that Treasury has set aside. HAMP’s foreclosure relief is only sustainable if the homeowner does not fall out of the permanent mortgage […]

Ninth Circuit Issues Common Sense Decision on Applicability of Pleading Tender in Truth in Lending Rescission Case

Merritt v. Countrywide Financial Corp., 09-17678 (9th Cir. July 16, 2014).      “Automatically to require tender in the pleadings before any colorable defense has been presented would encourage creditors to refuse to honor indisputably valid rescission requests, because doing so would allow the security interest to remain in place absent tender,” Judge Marsha Berzon wrote for […]

Colorado Attorney General Goes After Foreclosure Mill Law Firms Aronowitz and the Castle Law Group

ATTORNEY GENERAL CHARGES COLORADO’S LARGEST FORECLOSURE LAW FIRMS WITH FRAUD $13 Million Settlement with Aronowitz & Mecklenburg Secured DENVER — Colorado Attorney General John Suthers today announced the filing of civil law enforcement actions against the two largest foreclosure law firms in Colorado. In separate filings, the Attorney General’s Consumer Protection Section charged The Castle […]

CitiGroup Fine Does Not Bring Enough Homeowner Relief

Truthout writes about the Citigroup civil fine announced yesterday: Of the $7 billion total settlement, $4 billion will be in the form of a civil monetary payment to the Department of Justice, $500 million will go to state attorney’s general and the Federal Deposit Insurance Corporation, and an additional $2.5 billion will go towards “consumer […]

Non-Bank Servicers Like Ocwen and Nationstar are Mishandling Foreclosures and Modifications, Finds FHFA Report

This is another one in the “tell us something we don’t already know” archive of government reports but the FHFA published a special report on nonbank mortgage servicers yesterday.  “Specifically, the nonbank special servicers do not have the same capital requirements as a bank, which means they are more susceptible to economic downturns. Such downturns […]