Category: Economic Crisis

Pressures Heighten on Underwater Principal Reductions

By Mike Colpitts The U.S. secretary of housing is stepping up pressure on the nation’s giant mortgage lenders to provide principal reductions on Freddie Mac and Fannie Mae mortgages in a move supported by the Obama administration. The effort would supply a much needed fix to the housing market. HUD Secretary Shaun Donovan made the… Continue reading Pressures Heighten on Underwater Principal Reductions

Three Mortgage Officers Sentenced to Federal Prison

By Mike Colpitts Three mortgage officers and a title agent have been sentenced to federal prison for their parts in a nationwide reverse mortgage fraud scheme that lasted nearly a year, and took advantage of dozens of senior citizens, taking in more than $2.5-million. Louis Gendason, 42, was sentenced to 70 months in federal prison… Continue reading Three Mortgage Officers Sentenced to Federal Prison

Another $100-Billion Underwater Housing Loss

By Kevin Chiu Politics is a strange and nasty business and the business of walking the fence during this election year is increasingly damaging the U.S. economy. In order to help mend the economy, the U.S. will eventually make the tough but inevitable decision to cut principal on underwater mortgages, and take an estimated $100… Continue reading Another $100-Billion Underwater Housing Loss

SEC Charges Bank CEO with Misleading Investors

By Mike Colpitts Almost five years after the housing market collapse, the Securities and Exchange Commission (SEC) charged a bank CEO with misleading investors about growing problems over its real estate loan portfolio. The SEC said BankAtlantic Bancorp CEO Alan Levan made misleading statements in public filings and earnings calls in order to hide the… Continue reading SEC Charges Bank CEO with Misleading Investors

Feds Launch Mortgage Task Force Investigation

By Mike Colpitts More than three years after announcing he would launch a federal task force to investigate the mortgage crisis, President Barack Obama has finally launched a federal probe into the U.S. largest financial institutions. New York Attorney General Eric Schneiderman, who pulled his state out of the 50 state robo-signing investigation, sent subpoenas… Continue reading Feds Launch Mortgage Task Force Investigation

Timeshare Bill Proposed to Reduce Fraud

By Kevin Chiu A state bill proposed to reduce fraud in timeshare resales has made it through the Florida state senate and could be the first law enacted in the U.S. intended to eliminate one of the oldest lies in real estate. Florida’s Timeshare Resale Accountability Act, also known as SB 1408, sponsored by Senator… Continue reading Timeshare Bill Proposed to Reduce Fraud

Dirty Money Trail From Wall Street to Main Street

By Mike Colpitts The dirty money trail left in the wake of the financial crisis leads from Wall Street to Washington, D.C. all the way to Main Street. No other single factor has had as much of an impact on the collapse of the U.S. housing market as members of Congress lining their pockets with… Continue reading Dirty Money Trail From Wall Street to Main Street

Attorney General Moves to Recover Homeowner Damages

By Kevin Chiu Florida Attorney General Pam Bondi is going after foreclosure attorney David J. Stern in state court in an aggressive effort to speed up the court case against the foreclosure kingpin. The state’s top prosecutor has filed a motion asking the Fourth District Court of Appeal to certify a decision that makes a… Continue reading Attorney General Moves to Recover Homeowner Damages

Money Trail Triggered Real Estate Collapse

By Mike Colpitts Following mostly decades of the appearance of propriety at the highest levels of U.S. government, an ugly money trail from special interest groups leads to members of Congress, which triggered the real estate market collapse. It’s been more than a year-and-a-half since President Barack Obama signed financial reform legislation into law. But… Continue reading Money Trail Triggered Real Estate Collapse