Tag Archives: Attorneys & Title Companies

Lawmakers called into doubt the role of the historic 30-year fixed-rate mortgage Thursday, with Senate committee witnesses alternately arguing for and against it. At issue: whether the benchmark loan, available since the presidency of Franklin Roosevelt, stabilizes the housing finance system or weakens it. Witnesses alternately upheld and criticized the 30-year fixed-rate mortgage, with the former characterizing it a buttress of wealth for homeowners and the latter calling for more consumer choice and clarifying its role in the crisis.

Lawmakers from both sides of the aisle introduced a bill in the Senate that would require mortgage lenders to consider energy costs for borrowers when underwriting their federally insured loans. Sen. Michael Bennett and Sen. Johnny Isakson introduced the bill, titled the Sensible Accounting to Value Energy Act, as a way to restore energy cost calculations for government-backed mortgages. Sources in the know tell MReport that the bill could save billions for homeowners and create 83,000 jobs by 2012. A broad coalition backs the legislation.

The Consumer Financial Protection Bureau has a new chief officer with the addition of Hubert H. Skip Humphrey III. Joining the CFPB as the head of its Office of Older Americans, Humphrey will now act as the bureau├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós lead advocate for the demographic.

Continuing its legal wrangling with American International Group, Inc., Bank of America Corp. has filed a motion to dismiss Quinn Emanuel Urquhart & Sullivan as the company's counsel for AIG's $10 billion lawsuit against the financial institution. In its move to disqualify the firm, BAC cited conflict of interest due to partner Marc Becker's previous involvement with the bank's chosen law firm, Munger, Tolles & Olson.

In a rare move, 37 state attorneys general backed Consumer Financial Protection Bureau director-nominee Richard Cordray in a recent letter of support to Senate party leaders.

In California, home sales were down during September, but data from the month still represents upward movement year-over-year for the third consecutive month. The recent findings from the California Association of Realtors puts the state at what the organization calls a stable level. Closings for escrow sales of existing, single-family detached homes in California transitioned downward to a seasonally adjusted total of 487,940 for September, representing a loss of 2.1 percent from August.

RE/MAX has released the results of its most recent housing survey, and the company's evaluation of 53 metropolitan areas demonstrates a 7.6 percent rise in home sales year-over-year in September. The findings represent the third consecutive month in which an increase in sales was shown year-over-year for comparable months, and generally, sales have been on the uptick for four of nine months during 2011 based on RE/MAX's report. September's data extends trends seen from data recorded in July and August, during which sales rose by18 percent and 13.1 percent respectively.

Another mortgage fraud engineer has been brought to justice in New York, with Marleen Shillingford entering a guilty plea following her participation in a multimillion-dollar scheme. Appearing before U.S. Magistrate Judge Donna F. Martinez, the defendant waived her right to indictment on charges related to a scam that involved more than 40 properties. The fraudulent acts were primarily executed against properties held by banks receiving funding from the Troubled Asset Relief Program (TARP).

Financial institution Credit Suisse is set to shut down its commercial mortgage-backed securities division following rumblings of approaching layoffs. The overall impact of the global economy and dropping property values in the commercial sector this year are also believed to have played a role. According to numerous news outlets, Credit Suisse's executive of securitized products, Albert Sohn, held a meeting on Wednesday to announce the likely firing of 50 people working as part of the company's commercial real-estate team.

Capitol Hill is buzzing with the news of a pilot program that would facilitate the redirection of private investments into the U.S. mortgage industry. The potential moves from the Obama administration and federal housing regulators represent a transition from a mortgage-backed securities market that is largely controlled by the government sponsored enterprises. Talk in Washington, D.C., indicates that as early as 2012, Fannie Mae and Freddie Mac would initiate the sale of portions of securities to specific private investors.