Attorney general sues over mortgage scam costing 21 Pennsylvania homeowners $280,000

July 27, 2018 | The Morning Call         Five Pennsylvania mortgage foreclosure companies face a lawsuit from the state attorney general’s office over a yearslong mortgage scam that allegedly cost 21 homeowners more than $280,000.

Attorney General Josh Shapiro announced the lawsuit Thursday, alleging the companies deceived the complainants into signing mortgage modification contracts, many with hefty upfront payments, and never delivered promised services. Some customers, Shapiro said, lost their homes to foreclosure.  Read more here.

Falling Oil Means Rising Foreclosures in These States

Plummeting oil prices are wreaking havoc on stock markets, and they're also causing problems for some housing markets.

CNN Money | January 14, 2016   Foreclosure filings on a national level dropped to a nine-year low in 2015, but some oil-producing states weren't so lucky, according to a new report from RealtyTrac.

Foreclosures increased in Texas, Oklahoma and North Dakota last year as oil prices fell, and that can be a telling trend.

Those three states remained relatively unscathed from the 2008 housing bust, explained Daren Blomquist, vice president at RealtyTrac, which means the activity isn't due to a backlog of foreclosures left over from the crisis.

"Instead the rise in foreclosures in these states is actually a new wave of distress coming through that is mostly unrelated to the subprime loan housing crisis."

Lower oil prices have led to massive layoffs across the country, which can strain local economies with close ties to the energy sector. Read more here.

Is Another Housing Crisis Just Around the Corner?

Fox News|  January 19, 2016     Movie sequels are rarely as good as the original films on which they’re based. The same dictum, it appears, holds for finance. The 2008 housing market collapse was bad enough, but it appears now that we’re on the verge of experiencing it all again. And the financial sequel, working from a similar script as its original version, could prove to be just as devastating to the American taxpayer.

The Federal National Mortgage Association (commonly referred to as Fannie Mae) plans a mortgage loan reboot, which could produce the same insane and predictable results as when the mortgage agency loaned so much money to people who had neither the income, nor credit history, to qualify for a traditional loan.   Read more here.

Fannie and Freddie Give Birth to New Mortgage Bond

The Wall Street Journal |  December 29, 2015     The federal government is trying to get taxpayers off the hook for billions of dollars of potential losses if another mortgage crisis arrives—and in the process, it is quietly giving birth to a new asset class.

Under government control, mortgage-finance giants Fannie Mae and Freddie Mac next year plan to ramp up sales of new types of securities that in effect transfer potential losses in a housing downturn to private investors.

Called Connecticut Avenue Securities by Fannie Mae and Structured Agency Credit Risk by Freddie Mac, the securities are essentially bonds whose performance is tied to that of a pool of mortgages. If the mortgages default, investors in the bonds could lose some or all of their principal.  Read more here.

Delinquencies and Foreclosures Up Again; Time in Foreclosure at 1056 Days

The Economic Populist |  November 10, 2015     The Mortgage Monitor for September from Black Knight Financial Services (BKFS, formerly LPS) reported that there were 737,254 home mortgages, or 1.46% of all mortgages outstanding, remaining in the foreclosure process at the end of September, which was down from 747,930, or 1.48% of all active loans that were in foreclosure at the end of August, and down from 1.89% of all mortgages that were in foreclosure in September of last year.  These are homeowners who had a foreclosure notice served but whose homes had not yet been seized, and the September "foreclosure inventory" remains the lowest percentage of homes that were in the foreclosure process since late 2007.   New foreclosure starts, however, rose for the second month in a row, from 76,180 in August to 79,899 in September, up more than 10% from July, while they remain lower than the 95.400 new foreclosures started in September of 2014, they've been volatile from month to month, and they have remained in a range about 50% higher than number of new foreclosures we saw in the precrisis year of 2005.  Read more here.

National Housing Outlook Hurt by Texas Slowdown

National Mortgage News |  November 3, 2015   The housing market is weakening due to slower economic and job growth, along with other factors, such as low inventories and tight credit conditions that continue to stymie potential buyers, according to industry analysts.  Read more here.  

Repossessions Spike 66% as Foreclosure Crisis Lingers

CNBC.com |  October 15, 2015    New foreclosures may be back to nearly normal, but the mess from the epic housing disaster in the last decade is far from gone. Bank repossessions, the final stage of the foreclosure process, jumped 66 percent year over year in the third quarter of this year, according to RealtyTrac, a foreclosure sales and analytics company.  Read more here