Archive | July, 2011

Law Catching Up with Criminal Masterminds!

It has been revealed that the events leading up to the collapse of the economy were a decade into the making. In 2000, an employee at Fannie Mae, the government sponsored bank, discovered a loan that had been sold to it by another bank. It appears that the criminal mastermind behind all this was Colonial […]

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Modification Programs Fail to Deliver

The government’s modification efforts have greatly fallen short of targets and have been criticized for not having done enough to compel banks into aggressively offering the option to their clients. The modification relief program launched by the Obama administration had aimed to help at least 3 million homeowners, instead only 730,000 mortgage borrowers have benefited […]

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Difficult Times are Here to Stay!

The problems plaguing the home loans market shows no signs of improving any time soon. In fact, things may get a lot more difficult despite claims to the contrary by industry bodies and government representatives. The crisis has not just led to job losses, it has wiped out entire industries; for example the high tech […]

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Profits – the Raison D’etre for Banks

As defined by the science of economics, the recession in this country ended two years ago. Yet, the housing market continues to struggle. The Obama administration’s attempts to rescue three to four million troubled loans have fallen desperately short of targets. Industry analysts feel that one of the main reasons that financial packages have not […]

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Emergency Homeowners’ Loan Program

Congress has set up a $1 billion fund to help homeowners on the brink of foreclosure. The fund will be distributed through 22 agencies across the country. As part of the relief program known as the Emergency Homeowners’ Loan Program, homeowners can qualify for interest free loans to repay their monthly installments of up to […]

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Feds Failed to Detect Irregularities at Fannie and Freddie

It has come to light that the federal agency overseeing taxpayer-owned mortgage finance giants Fannie Mae and Freddie Mac had failed to report nearly 100 complaints from customers as well as staff, on foreclosure irregularities and possible mortgage fraud in the two organizations. The collapse of these two companies in 2008 has cost the taxpayers […]

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Lawyers with Political Affiliations Rake in the Moolah

While we entrust the judicial and political system to fight the battles for millions of Americans looking to survive the economic crisis, who is going to make sure that those trusted with setting things right are also not misusing the system. Unfortunately, that is exactly what appears to be happening in the appointment of receivers […]

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Government Relief Packages Miss the Mark

The Obama administration’s homeowner program was designed primarily to help people who had taken subprime and other risky mortgages. While today the number one reason for foreclosures is unemployment, provisions in the program to help the unemployed are inadequate. For instance the program offers a three month waiver on repayment of installments for those who […]

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Construction Activity Picks Up, But Fails to Impress

The number of new house sales have improved compared to last year, but they are still low. Sales of new construction units was at an annualized count of 560,000 units in May 2011. Typically a build-up in housing activity is seen as a harbinger of economic recovery as construction creates substantial employment and requires considerable […]

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BOA Deal Offers Hope for a Few

Bank of America has reached an $8.5 billion settlement with investors related to its troubled mortgage securities. The bank is the largest mortgage service provider in the country, which means that nearly 275,000 borrowers could be facing foreclosures very soon. As part of the deal, some of the owners will be offered a modification of […]

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