Strategic Default Monitor – How To Strategically Default

Friday, January 10, 2014

Latest Foreclosure News 1-10-2014

What the new mortgage rules mean for you 1-10-2014
New mortgage lending rules are going into effect Friday that aim to put an end to the worst mortgage lending abuses of the past... The new rules are designed to take a "back to basics" approach to mortgage lending and lower the risk of defaults and foreclosures among borrowers, according to the Consumer Financial Protection Bureau, which issued the new rules. Mortgage lenders are being asked to comply with two new requirements: The Ability to Repay rule and Qualified Mortgages. Read More at CNN

How the CFPB plans to empower homeowners 1-8-2014
The Consumer Financial Protection Bureau is living up to its name — putting consumers first as the bureau rolls out tools to help borrowers hold financial firms accountable... The CFPB intends to make homeowners more empowered to fight back. Just this week, the bureau announced a series of materials – from sample letters to new mortgage rule guides. All of those materials aim to educate borrowers on when a bank has violated a key mortgage provision and how to resolve those errors. Read More at the HousingWire

Florida housing market may get a boost from ‘boomerang buyers’ 12-28-2013
Founders of the San Diego-based company AfterForeclosure.com said last week that millions of banned borrowers nationwide will be eligible for a mortgage next year, while Jupiter mortgage broker Skip McDonough said his firm is already doing deals with home buyers who were forced into default during the housing bust... Under the FHA's "Back to Work" program, it will approve certain borrowers for a home loan just one year after a foreclosure, short sale, deed in lieu of foreclosure or bankruptcy. The FHA's previous timeline was three years for a short sale and foreclosure and two years for a bankruptcy. Read More at The Globe and Mail




FHA faces $1.3 billion capital shortfall, audit finds 12-13-2013
With an FHA-backed loan, buyers can put down as little as 3.5 percent of the purchase price. The FHA, which does not make loans, provides mortgage insurance to borrowers who are unable to make a large enough down payment to qualify for prime loans. The FHA has taken a series of steps to improve its finances over the past few years. It has raised the amount it charges borrowers to insure mortgages against default six times and has tightened underwriting. The policy changes, coupled with rising home prices and improved rates of recovery on delinquent loans, are helping to shrink the projected funding gap... Read More at The Washington Post

Borrowers Facing Foreclosure Should be Dancing in the Streets Over ‘X’ and ‘Z’ and Here’s Why 12-12-2013
the Consumer Financial Protection Bureau (“CFPB”), has been hard at work amending the Truth in Lending Act (“TILA”), and parts of RESPA as well (“Real Estate Settlement and Procedures Act). Specifically, we’re talking implementing the provisions of the Dodd-Frank Act as related to mortgage loan servicing through the amendment of TILA’s Regulation Z, and RESPA’s Regulation X… both have seen significant, and one might even say, earth-shattering and Draconian changes made that will take effect in January of 2014. And even the most cynical will soon have to admit that these changes represent a huge win for borrowers at risk of foreclosure, and a devastating development for bankers and servicers. Read More at Mandelman Matters

Insight: A new wave of U.S. mortgage trouble threatens 11-26-2013
U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country's biggest banks. The loans are a problem now because an increasing number are hitting their 10-year anniversary, at which point borrowers usually must start paying down the principal on the loans as well as the interest they had been paying all along... the worst case scenario for some banks could be bad, eating deeply into their earnings and potentially cutting into their equity levels at a time when banks are under pressure to boost capital levels. Read More at Reuters

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