The Federal Trade Commission issued a proposed rule would prohibit all material misrepresentations in advertising about consumer mortgages, allow civil penalties, and allow enforcement by the states.
The Federal Register Notice is available at:
http://www.ftc.gov/os/fedreg/2010/september/100922mortgageadvertising.pdf
The proposed rule lists 19 examples of misrepresentations about fees, costs, obligations, and other aspects of credit that would be violations. However, the proposed rule does not include any advertising disclosure requirements.
The proposed rule would apply to: (1) mortgage lenders, brokers, and servicers; (2) real estate agents and brokers; (3) advertising agencies; (4) home builders; (5) lead generators; (6) rate aggregators; and (7) other entities under the FTC’s jurisdiction.
As you may recall, currently under the FTC Act, the Commission may bring actions against those under its jurisdiction who engage in deceptive mortgage advertising, and seek injunctive relief against them. Under the proposed rule, the FTC would be able to bring actions against violators to seek civil penalties in addition to injunctions. The proposed rule would also allow the states to bring actions for civil penalties for violations of the rule.
The FTC is seeking comments about the proposed rule’s costs and benefits, including whether any alternatives would adequately protect consumers at a lower cost. The FTC seeks public input on whether there are advertising disclosures that the Commission should include in the rule. The FTC also seeks public comment on whether the rule should include a provision that prohibits persons from providing substantial assistance to those who violate the rule.
The Notice of Proposed Rulemaking has a 45-day public comment period ending November 15, 2010.
Thursday, September 23, 2010
FTC Settles Mortgage Lending Discrimination Case for $1.5M
The Federal Trade Commission reached a $1.5 Million settlement with a mortgage lender and its owner as to charges that the lender illegally charged Latino consumers higher prices for mortgage loans than non-Latino white consumers, which could not be explained by the applicants’ credit characteristics or underwriting risk.
Copies of the FTC’s complaint, and the Stipulated Final Judgment and Order For Permanent Injunction and Other Equitable Relief, are available at:
http://www.ftc.gov/os/caselist/0623061/index.shtm
The FTC filed a complaint in the U.S. District Court for the Central District of California on May 7, 2009, alleging that Golden Empire Mortgage, Inc. and Howard D. Kootstra violated the Equal Credit Opportunity Act. According to the FTC, the defendants allegedly gave loan officers and branch managers wide discretion to charge some borrowers, in addition to the risk-based price, “overages” through higher interest rates and higher up-front charges. The FTC alleged that the defendants then paid loan officers a percentage of the overages as a commission, failed to monitor whether Latino consumers were paying higher overages than non-Latino white borrowers.
Copies of the FTC’s complaint, and the Stipulated Final Judgment and Order For Permanent Injunction and Other Equitable Relief, are available at:
http://www.ftc.gov/os/caselist/0623061/index.shtm
The FTC filed a complaint in the U.S. District Court for the Central District of California on May 7, 2009, alleging that Golden Empire Mortgage, Inc. and Howard D. Kootstra violated the Equal Credit Opportunity Act. According to the FTC, the defendants allegedly gave loan officers and branch managers wide discretion to charge some borrowers, in addition to the risk-based price, “overages” through higher interest rates and higher up-front charges. The FTC alleged that the defendants then paid loan officers a percentage of the overages as a commission, failed to monitor whether Latino consumers were paying higher overages than non-Latino white borrowers.
Thursday, September 16, 2010
Saw this at a Bankruptcy CLE Yesterday.
http://www.youtube.com/watch?v=E2IjktYtwwo
Sad but true! Get your head out of the sand and file bankruptcy, the vampire realtor will not stop them coming after you for a deficiency.
Sad but true! Get your head out of the sand and file bankruptcy, the vampire realtor will not stop them coming after you for a deficiency.
Friday, September 10, 2010
Supreme Court BK Cases
It's been a busy year in the Supreme Court for Bankruptcy! Just look at the cases:
Sternberg v Johnston
Milavetz v US
Ranson v MBNA
Hamilton v Lanning
Schwab v Reilly
United States v Espinosa
Marrama v Citzens Bank
Sternberg v Johnston
Milavetz v US
Ranson v MBNA
Hamilton v Lanning
Schwab v Reilly
United States v Espinosa
Marrama v Citzens Bank
Tuesday, September 7, 2010
Case Law
In re Cranmer, 2010 WL 2680940 (Bankr. D. Utah June 29, 2010) (Thurman): While Social Security Income is not included to determine a debtor’s disposable income, Social Security Income is included in determining a debtor’s projected disposable income.
Saturday, September 4, 2010
Friday, September 3, 2010
Home Sales
http://www.realtor.org/research/research/phsdata
National Association of Realtors’ (NAR) reported Thursday that its Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 5.2 percent from last month’s reading. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
The index remains 19 percent below measurements recorded a year ago, but the month-to-month jump was an unexpected development, and some analysts are saying it may be a sign that the post-tax credit lull in home sales will soon come to an end. A group of economists surveyed by Bloomberg were expecting the pending sales index to fall by 1 percent.
The national index had fallen 29.9 percent based on contract signings in May – closely reflected in July’s 27 percent drop in actual existing-home sales. It lost another 2.8 percent after NAR’s analysis of June’s contracts, likely a good indicator of where August’s actual sales will end up. The latest 5.2 percent increase could be a telling sign of September’s sales numbers.
National Association of Realtors’ (NAR) reported Thursday that its Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 5.2 percent from last month’s reading. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
The index remains 19 percent below measurements recorded a year ago, but the month-to-month jump was an unexpected development, and some analysts are saying it may be a sign that the post-tax credit lull in home sales will soon come to an end. A group of economists surveyed by Bloomberg were expecting the pending sales index to fall by 1 percent.
The national index had fallen 29.9 percent based on contract signings in May – closely reflected in July’s 27 percent drop in actual existing-home sales. It lost another 2.8 percent after NAR’s analysis of June’s contracts, likely a good indicator of where August’s actual sales will end up. The latest 5.2 percent increase could be a telling sign of September’s sales numbers.
Fannie Mae Says Foreclosure Delays Represent a Breach by the Servicer
The nation's largest mortgage company is about to start cracking down on servicers for letting delinquent loans languish too long without action. Fannie Mae has issued a notice alerting servicers that it is monitoring all delinquent loans to ensure foreclosures are handled within an acceptable time frame, and may assess penalties for poor servicer performance. By the tone of Fannie's announcement, the GSE wants these nonperformers off its books as quickly as possible.
Fannie says it will be keeping tabs on all whole mortgages, participation pool mortgages, and MBS pool mortgages with a special servicing option referred to an attorney or trustee to initiate foreclosure proceedings on or after July 1, 2010. Company officials will be scrutinizing servicer data to identify delays in the default management process.
According to the GSE, it may elect to perform a more extensive servicing review – possibly on-site – to further evaluate the actions the servicer took on certain mortgage loans. Servicers must send the requested documentation or make it available…within the time frame specified in the notification. If the servicer fails to do so, Fannie Mae may assess compensatory fees without first reviewing the loan or exercise other available remedies, the GSE warned.
Effective with the date of this Announcement, any mortgage loan referred to an attorney (or trustee) to initiate foreclosure proceedings with properties located in the States of Florida, Maryland, Nevada, and New York must meet the new foreclosure time frames noted below:
• Florida – 185 days
This timeline has an additional 35 days added to allow for a mediation referral prior to a foreclosure suit being commenced.
• Maryland – 90 days
This timeline begins when the case is referred to an attorney to file suit together with a Loss Mitigation Affidavit. The servicer must execute a Final Loss Mitigation Affidavit at the commencement of the case, if appropriate. If a Preliminary Loss Mitigation Affidavit is required, then the time frame allowed will be extended to 120 days.
• Nevada – 150 days
• New York (Upstate) – 300 days
• New York (Downstate) – 420 days
In the State of New York, a timeline of 300 days applies to all localities except for New York City and Long Island.
A timeline of 420 days applies for foreclosures conducted in the five boroughs of New York City — Bronx, Brooklyn (Kings County), Manhattan (New York County), Queens, and Staten Island (Richmond County) — and on Long Island (Nassau and Suffolk Counties).
Fannie says it will be keeping tabs on all whole mortgages, participation pool mortgages, and MBS pool mortgages with a special servicing option referred to an attorney or trustee to initiate foreclosure proceedings on or after July 1, 2010. Company officials will be scrutinizing servicer data to identify delays in the default management process.
According to the GSE, it may elect to perform a more extensive servicing review – possibly on-site – to further evaluate the actions the servicer took on certain mortgage loans. Servicers must send the requested documentation or make it available…within the time frame specified in the notification. If the servicer fails to do so, Fannie Mae may assess compensatory fees without first reviewing the loan or exercise other available remedies, the GSE warned.
Effective with the date of this Announcement, any mortgage loan referred to an attorney (or trustee) to initiate foreclosure proceedings with properties located in the States of Florida, Maryland, Nevada, and New York must meet the new foreclosure time frames noted below:
• Florida – 185 days
This timeline has an additional 35 days added to allow for a mediation referral prior to a foreclosure suit being commenced.
• Maryland – 90 days
This timeline begins when the case is referred to an attorney to file suit together with a Loss Mitigation Affidavit. The servicer must execute a Final Loss Mitigation Affidavit at the commencement of the case, if appropriate. If a Preliminary Loss Mitigation Affidavit is required, then the time frame allowed will be extended to 120 days.
• Nevada – 150 days
• New York (Upstate) – 300 days
• New York (Downstate) – 420 days
In the State of New York, a timeline of 300 days applies to all localities except for New York City and Long Island.
A timeline of 420 days applies for foreclosures conducted in the five boroughs of New York City — Bronx, Brooklyn (Kings County), Manhattan (New York County), Queens, and Staten Island (Richmond County) — and on Long Island (Nassau and Suffolk Counties).
Rocket Docket_ palm Beach County
Check out Matt's blog for a transcript from a Rocket Docket.
Wednesday, September 1, 2010
Fannie Mae Places Ban on 'Appraisal Cutting'
Fannie Mae is implementing a new policy this week regarding home appraisals. Beginning Wednesday, lenders will be prohibited from making changes to appraisers' valuations - a practice that has become more widespread and is commonly referred to as "appraisal cutting." Fannie officials say they have identified cases where the lender reduced the opinion of market value in the appraisal report based upon underwriter judgment or automated valuation models, prompting the GSE to place a ban on so-called appraisal cutting.
Law and Order goes to Court for Real
Lawyer Wins Bid to Depose 'Law &; Order' Producers in Libel Suit
New York Law Journal
Attorney Ravi Batra can question "Law & Order" producer Dick Wolf in connection with a $15 million libel action the lawyer filed in 2004 against 35 defendants, including Wolf and NBC Universal, a New York judge has ruled. The suit centers around a "Law & Order" episode entitled "Floater," in which a bald Indian-American matrimonial attorney called "Ravi Patel" is depicted bribing a Supreme Court justice in Brooklyn.
New York Law Journal
Attorney Ravi Batra can question "Law & Order" producer Dick Wolf in connection with a $15 million libel action the lawyer filed in 2004 against 35 defendants, including Wolf and NBC Universal, a New York judge has ruled. The suit centers around a "Law & Order" episode entitled "Floater," in which a bald Indian-American matrimonial attorney called "Ravi Patel" is depicted bribing a Supreme Court justice in Brooklyn.
Servicers Fail to Deliver on Loan Mod Best Practices: J.D. Power
U.S. consumers are less satisfied with their experience during the loan modification process than they are during loan origination, namely because mortgage servicers are missing the mark when it comes to delivering on best practices, according to J.D. Power and Associates. The company's survey found that mortgage servicers fail to adhere to a time frame for approval, don't provide the customer with status updates, and repeatedly ask borrowers for the same information. BB&T ranks highest in customer satisfaction among mortgage servicers, followed by SunTrust Mortgage, US Bank, and Wells Fargo.
Judge fines firm $49,000
Does your kid have a wack mo game? Well here's the court's version.
http://www.heraldtribune.com/article/20100831/ARTICLE/8311064/2055/NEWS?p=all&tc=pgall
http://mattweidnerlaw.com/blog/
Judge Dunnigan handed down the $49,000 penalty
http://www.heraldtribune.com/article/20100831/ARTICLE/8311064/2055/NEWS?p=all&tc=pgall
http://mattweidnerlaw.com/blog/
Monday, August 30, 2010
FRB Proposes Significant Changes to Reverse Mtg Disclosures and Ads
The Federal Reserve Board recently proposed significant changes to reverse mortgage advertisements and disclosures.
The Federal Register notice for the proposed rule is available at:
http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20100816e1.pdf
These proposed rules would:
• Impose rules for reverse mortgage advertising to ensure advertisements contain accurate and balanced information.
• Change the disclosures consumers receive for reverse mortgages, including: (a) at application, creditors must provide a new, two-page disclosure which highlights in simple language the basic features and risks of reverse mortgages; (b) within three days after receiving the consumer’s application, creditors must provide transaction-specific disclosures that reflect the actual terms of the reverse mortgage being offered, which must be presented in a tabular format; (c) at least three days before closing the loan, creditors must provide final disclosures in the same format, to facilitate comparison with the earlier disclosures; and (d) creditors also must ensure that their advertisements for reverse mortgages are accurate and balanced.
• Prohibit certain unfair practices in the sale of financial products with reverse mortgages, such as: (a) prohibiting creditors from conditioning a reverse mortgage on the consumer's purchase of another financial or insurance product; (b) requiring that a consumer receive counseling about reverse mortgages before a creditor can impose nonrefundable fees for a reverse mortgage or close the loan; and (c) prohibiting creditors from steering consumers to specific reverse mortgage counselors or compensating counselors or counseling agencies.
The comment period ends 90 days after publication of the proposal in the Federal Register, which is expected shortly.
The Federal Register notice for the proposed rule is available at:
http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20100816e1.pdf
These proposed rules would:
• Impose rules for reverse mortgage advertising to ensure advertisements contain accurate and balanced information.
• Change the disclosures consumers receive for reverse mortgages, including: (a) at application, creditors must provide a new, two-page disclosure which highlights in simple language the basic features and risks of reverse mortgages; (b) within three days after receiving the consumer’s application, creditors must provide transaction-specific disclosures that reflect the actual terms of the reverse mortgage being offered, which must be presented in a tabular format; (c) at least three days before closing the loan, creditors must provide final disclosures in the same format, to facilitate comparison with the earlier disclosures; and (d) creditors also must ensure that their advertisements for reverse mortgages are accurate and balanced.
• Prohibit certain unfair practices in the sale of financial products with reverse mortgages, such as: (a) prohibiting creditors from conditioning a reverse mortgage on the consumer's purchase of another financial or insurance product; (b) requiring that a consumer receive counseling about reverse mortgages before a creditor can impose nonrefundable fees for a reverse mortgage or close the loan; and (c) prohibiting creditors from steering consumers to specific reverse mortgage counselors or compensating counselors or counseling agencies.
The comment period ends 90 days after publication of the proposal in the Federal Register, which is expected shortly.
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