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Easy to Understand Foreclosure-Abuse Settlement Explanation for the Ten Millionth Time

02-14-12
David Saks
David Saks: Real Estate Broker in Memphis, TN
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  • Office: (901) 357-4663
  • Secondary: (901) 872-8888
U.S. states have reached a $25 billion deal with the nation's biggest mortgage lenders over foreclosure abuses that occurred after the housing bubble burst.Federal and state officials announced the deal Thursday. It is the biggest settlement involving a single industry since a 1998 multistate tobacco deal.Under the agreement, five major banks - Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial - will reduce loans for nearly 1 million households. They will also send checks of $2,000 to about 750,000 Americans who were improperly foreclosed upon. The banks will have three years to fulfill the terms of the deal. All but one of the 50 states agreed to the deal. Oklahoma, the lone holdout, will receive no money.The conditions will be overseen by Joseph A. Smith Jr., North Carolina's banking commissioner. Lenders that violate the deal could face $1 million penalties per violation and up to $5 million for repeat violators.The settlement ends a painful chapter that emerged from the financial crisis, when home values sank and millions edged toward foreclosure. Many companies processed foreclosures without verifying documents. Some employees signed papers they hadn't read or used fake signatures to speed foreclosures - an action known as robo-signing.Under the deal, the 49 states have said they won't pursue civil charges related to these types of abuses. Homeowners can still sue lenders in civil court on their own, and federal and state authorities can pursue criminal charges."There were many small wrongs that were done here," said U.S. Housing and Urban Development Secretary Shaun Donovan. "This does not resolve everything. We will be aggressive about going after claims elsewhere."Bank of America will pay the most to borrowers as part of the deal - nearly $8.6 billion. Wells Fargo will pay about $4.3 billion, JPMorgan Chase will pay roughly $4.2 billion, Citigroup will pay about $1.8 billion and Ally Financial will pay $200 million. This does not include $5.5 billion in federal and state payments.The deal also ends a separate investigation into Bank of America and Countrywide for inflating appraisals of loans from 2003 through most of 2009. Bank of America acquired Countrywide in 2008.The banks and U.S. state attorneys general agreed to the deal late Wednesday after 16 months of contentious negotiations.New York and California came on board late Wednesday. California has more than 2 million "underwater" borrowers, whose homes are worth less than their mortgages. New York has some 118,000 homeowners who are underwater.In addition to the payments and mortgage write-downs, the deal promises to reshape long-standing mortgage lending guidelines. It will make it easier for those at risk of foreclosure to make their payments and keep their homes.Those who lost their homes to foreclosure are unlikely to get their homes back or benefit much financially from the settlement.The settlement would apply only to privately held mortgages issued from 2008 through 2011. Banks own about half of all U.S. mortgages - roughly 30 million loans.Some critics say the proposed deal doesn't go far enough. They have argued for a thorough investigation of potentially illegal foreclosure practices before a settlement is hammered out.Under the deal:- Roughly $1.5 billion for direct payouts, in the form of $2,000 checks, for about 750,000 Americans who were unfairly or improperly foreclosed upon, another $3.5 billion will go directly to states.- At least $10 billion for reducing mortgage amounts.- Up to $7 billion for other state homeowner programs.- At least $3 billion for refinancing loans for homeowners who are current on their mortgage payments but who are underwater. Courtesy The Career Institute
States, Banks Reach Foreclosure-Abuse Settlement
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Are the Realtor® Brand & NAR a National Conspiracy That Plunders It's Members, Restricts Free Trade & Desecrates Anti-Trust Laws ?

02-14-12
David Saks
David Saks: Real Estate Broker in Memphis, TN
  • view my blog
  • Office: (901) 357-4663
  • Secondary: (901) 872-8888


Some believe that they are.

Why have hundreds of thousands of NAR members resigned ?

Quote: "The NATIONAL ASSOCIATION OF REALTORS® has seen its membership decline 21 percent from its peak of 1.35 million members in 2006 to 1.06 million in 2010. The numbers will likely be down in 2011 as well."
Stacey Moncrieff, editor in chief for REALTOR® Magazine and managing director of publishing for the NATIONAL ASSOCIATION OF REALTORS®.
Realtor Magazine April 2011

It's now 2012 !

Are Licensees seeking work with non-NAR affiliated brokerages or quitting ?

Are non-NAR affiliated MLS's succeeding ?

Are REALTORS® losing credibility, ground and favor with the general public ?

Are REALTORS® being hammered by destructive media content and NAR portrayed as dangerous to consumers and the national economy ?

Do we awaken to press releases and comments that blackball and question the trustworthiness and believability of REALTORS®, everyday ?

Is NAR a predator pounding it's members for more and providing less ?

Some believe that it is.

The United States vs. The National Association of Realtors

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The Meta Tag Analyzer

02-14-12
David Saks
David Saks: Real Estate Broker in Memphis, TN
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  • Office: (901) 357-4663
  • Secondary: (901) 872-8888
Free META Tag Analyzer
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Attorney General Launches "Consumer Protection Working Group" to Destroy Fraud

02-13-12
David Saks
David Saks: Real Estate Broker in Memphis, TN
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  • Office: (901) 357-4663
  • Secondary: (901) 872-8888

Attorney General Eric Holder Launches Consumer Protection Working Group to Combat Consumer Fraud
Working Group Created Under President Obama’s Financial Fraud Enforcement Task Force Brings Together Federal, State, and Local Partners

U.S. Department of Justice February 13, 2012
  • Office of Public Affairs (202) 514-2007/TDD (202)514-1888

WASHINGTON—The Consumer Protection Working Group, formed under President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF), convened its first meeting in Washington, D.C., today to address consumer fraud, which can financially cripple households and can cause extensive losses to our economy. The newly created group will work across federal law enforcement and regulatory agencies, and with state and local partners, to strengthen efforts to address consumer-related fraud, including schemes targeting vulnerable populations, such as the unemployed, those in need of payday loans, and those suffering from the burden of high credit card and other debt. The new working group will also focus on scams that exploit prospective students, active-duty military personnel, and veterans.

“The schemes we are combating are as diverse as the imaginations of those who perpetrate them, and as sophisticated as modern technology will permit. Thanks in large part to the leadership of the President’s Financial Fraud Enforcement Task Force we are tackling financial fraud, in all its forms, head on,” said Attorney General Eric Holder. “Through the extensive and coordinated partnership we start today, we will strengthen our collective efforts, enhance civil and criminal enforcement of consumer fraud and educate the public in an effort to prevent consumers from being victimized in the first place.”

Attorney General Holder delivered remarks at today’s meeting which was convened by FFETF Executive Director Michael Bresnick along with the working group’s co-chairs: Assistant Attorney General for the Department of Justice’s Civil Division Tony West, Assistant Attorney General for the Department of Justice’s Criminal Division Lanny Breuer, U.S. Attorney for the Central District of California André Birotte and Director of the Bureau of Consumer Protection for the Federal Trade Commission (FTC) David Vladeck. Another co-chair, Director of Enforcement for the Consumer Financial Protection Bureau Kent Markus, was unable to attend the meeting.

“We know all too well how opportunistic fraudsters have adapted their schemes to take advantage of consumers facing financial hardships, using false promises of mortgage modification, debt relief, and job placement, to name a few. Since 2009, the FTC has brought over 90 cases to stop these scams,” said Director of the Bureau of Consumer Protection for the FTC David Vladeck. “This partnership will only serve to enhance our collective efforts to protect consumers.”

The Consumer Protection Working Group will address several areas of concern, including payday lending and other high-pressure telemarketing or Internet scams, business opportunity schemes, for-profit schools that engage in fraud or misrepresentation, and fraudulent third party payment processors that facilitate payments on behalf of other fraudsters without the permission of the customer.

At today’s meeting, the Consumer Protection Working Group members set priorities and discussed taking collaborative steps to continue to seek out and prosecute consumer fraud as well as protect consumers from fraud before it happens through outreach and education. The new working group plans to establish a best-practices tool kit, legislative, regulatory and policy initiatives, and an information sharing structure.

Other members of the Consumer Protection Working Group include representatives from the Department of Treasury, FBI, Internal Revenue Service-Criminal Investigation, Federal Deposit Insurance Corporation, U.S. Secret Service, Financial Crimes Enforcement Network, Executive Office for U.S. Attorneys, Department of Education’s Office of the Inspector General, U.S. Trustee Program, the National Association of Attorneys General, U.S. Postal Inspection Service, the Office of the Comptroller of the Currency, the Federal Reserve Board, and the National Credit Union Administration. The state attorneys general are represented on the working group by Attorney General Lisa Madigan from Illinois, Attorney General Greg Zoeller from Indiana, and Attorney General Roy Cooper from North Carolina.

The Consumer Protection Working Group is part of ongoing enforcement efforts by President Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Task force members have charged a record number of mortgage fraud cases in the past two years, trained more than 100,000 professionals responsible for awarding and overseeing Recovery Act funds and held regional summits around the country to discuss strategies, resources and initiatives, as well as to meet with communities most affected by the financial crisis.

Learn more about the Financial Fraud Enforcement Task Force at www.stopfraud.gov.

Courtesy FBI
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Middle Tennessee Home Sales Start the Year Mixed

02-13-12
David Saks
David Saks: Real Estate Broker in Memphis, TN
  • view my blog
  • Office: (901) 357-4663
  • Secondary: (901) 872-8888
Middle Tennessee Home Sales Start Year Mixed

January home sales fell off from December, but closings easily topped figures from a year ago, according to the Red Report.

Total closings went up 8 percent to 183 homes sold this January compared to 169 the same month a year ago, Steven Dotson, president of Red Realty, reported Monday in his monthly tabulation.

Average closed prices were down 5 percent from January a year ago, and Rutherford closings fell 21 percent from December with average closed prices dipping 10 percent.

“The January to January comparisons are positive signs the market is slowly improving,” Dotson said in the report. “Last year was the first full year without any temporary tax incentives, so this year we should able to fairly compare 2012 to 2011.”

2010 was marked by a federal tax incentive passed as part of President Barack Obama’s economic stimulus package and made home sales jump dramatically that spring.

For the four-county area of Rutherford, Williamson, Davidson and Wilson, closings jumped 19 percent this January to 836 from 703 a year ago. In comparison, the region finished 2011 with a flourish, closing 1,146 homes.

Rutherford County had 253 homes pending in January, up 6 percent from the previous month.

“So far, I think January’s pendings showed us 2012 will be an improvement over 2011 and 2010,” Dotson said.

The number of pendings should make prices stronger in February and March compared to those in the other counties, Dotson said.

“Strong in pendings is a good sign,” he said. “It seems like ever since Christmas it’s been crazy in our office.”

A report prepared by Richard Lewis of EXIT Realty showed Murfreesboro sales remained steady compared to last year while Smyrna’s sales jumped 35 percent and La Vergne’s went up 17 percent after a weak showing in 2011.

Sixty percent of Murfreesboro’s January sales were under $175,000, 90 percent of Smyrna’s were for less than $175,000, and 78 percent of La Vergne’s went for less than $125,000, according to Lewis’ report.

“We are seeing some distress sales come off the market,” Lewis said. Those include bank foreclosures, HUD-owned homes and short sales in which the seller owes more than the home is worth.

“We’re going to continue to see prices drop in certain price points because of distress sales,” Lewis said, noting some experts believe those problems could stay in the pipeline more nearly two more years.

Interest rates remain at 3.75 percent to 4 percent for buyers with good credit, but lenders are requiring at least 3.5 percent down and some are looking for 5 percent, Lewis reported.

First-time buyers who qualify can buy without putting money down, but special restrictions apply, so they need to check with their lender, according to Lewis.

As 2012 continues, job creation will be a crucial part of the economy, Dotson said.

We have to continue to add jobs in Middle Tennessee in order to speed up the recovery for our community,” Dotson stated. “Our politicians and Chamber of Commerce executives should be commended for their diligent work to help our communities maintain a positive business environment so that others will want to locate here.”

Rutherford County wrapped up 2011 with the announcement that 1,150 jobs would come here in 2012 through an Amazon.com distribution center being constructed on Joe B. Jackson Parkway in southeast Murfreesboro.

Courtesy The Career Institute
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