Consumer Mortgage News Made Simple
Image via Wikipedia The Federal Trade Commission (FTC) issued a ban on eight companies marketing loan modification services. The FTC’s statement alleges that “the marketers charged up-front fees and falsely claimed they could get their mortgage loans modified or prevent foreclosure on their homes.” The following defendants and settlements were named in the FTC’s recent press release: Federal Loan Modification Law Center - Steven Oscherowitz and other associates settled with the … [Read more...]
Image via Wikipedia Marketers peddling a “Rapid Debt Reduction” program and false promises to reduce consumers’ credit card interest rates have been fined $1.5 million by the FTC. Under court order the principals have agreed to pay the fine in restitution for their debt relief scheme, which claimed interest rate reductions in exchange for an up-front fee of up to $899. The fines will go to refund defrauded consumers. This FTC action is just one of several filed as part of a collaboration … [Read more...]
The Federal Trade Commission has issued warnings to 18 websites offering "free" credit reports. The FTC expects each to more clearly disclose the consumer's right to a free annual credit report under federal law. According to a press release these warnings were in response to the recent FTC's amended Free Credit Reports Rule (effective April 2, 2010). This amendment requires that credit report providers more clearly distinguish between "free" credit reports that require the buying of additional … [Read more...]
Image via Wikipedia Mortgage-backed securities took the US economy to the brink of total collapse when US bank over stuffed themselves with these assets. Attracted by the siren song of high yields and illusions that real estate always appreciate and homeowners never default in huge numbers, they learned the folly of their assumptions. Is the US Federal Reserve headed down the same road? Recently released Fed data shows that their balance sheet has grown to $2.324 trillion, mostly fueled by … [Read more...]
Image via Wikipedia An early morning report from Bloomberg Businessweek says AIG may be considering giving the US government a position in mortgage bonds to repay a portion if its Federal bailout debt. Ironically, this stake would be in the same "toxic assets" that nearly collapsed the large insurer. This report is being whispered by unnamed sources close to the potential AIG/US government deal. The mortgage bonds being considered in this trade would be assets in Maiden Lane II and Maiden … [Read more...]
Matt Taibbi at TrueSlant.com takes a slightly different view of the success of Bank Bailouts. Citing reports from the New York Times and the Financial Times, "telling us the bailout is working because the government has made some money on TARP," Taibbi thinks the math is selective at best. Take a look a Matt's argument for yourself: "This is sort of like calculating the returns on a mutual fund by only counting the stocks in the fund that have gone up. Forgetting for a moment that TARP is … [Read more...]
Image via Wikipedia I would have to agree with a few of these sources--Chairman Bernanke is off and running on his reappointment campaign. Washington Post: Televised townhall meeting in Kansas? That was the unusual format for PBS' Jim Lehrer special with Chairman Ben Bernanke: Using atypically folksy language, Bernanke explained why he thinks the central bank responded appropriately to the financial crisis. "I was not going to be the Federal Reserve chairman who presided over the second … [Read more...]
Interesting... Federal Reserve Board is doing consumer marketing studies now. In reaction to consumer testing the Fed is resubmitting a proposal to change Regulation Z, more commonly known as the Truth in Lending Act (TILA). Please, read more and then come back and register you opinions in the comment section below. Housing Wire: Fed Proposes Fee Restrictions on Mortgage Brokers The Fed’s proposal would prohibit payments to a mortgage broker or loan officer that are based on the interest rate … [Read more...]
There is a lot of debate as Bernanke heads for another round of testimony on Capital Hill: Was the Federal Reserve competent in managing the economy pre-mortgage meltdown and during the ongoing economic crisis? Should the Fed be reined in by Congress and lose its political independence? Should Bernanke be retained or replaced when his term expires in January 2010? What do you think? Is the Federal Reserve necessary? Must it retain its political independence? Ron Paul is leading the charge to … [Read more...]
Image by Getty Images via Daylife Major financial institutions, like Bear Stearns and AIG are demostrating their enormous potential impact on the US and even global economies. However, there is little or no coordinated supervision or insolvency path should they begin to fail. US Treasury Secretary Timothy Geithner begin revealing his plan for a "new era of regulation." Meanwhile, Roubini takes his shot at crafting a response and framework for what he thinks would be most effective: Blueprint for … [Read more...]
