February 11th, 2011, Carlo Gabriel Simbajon  Later this week, the administration of Barack Obama will unveil a proposal that details the gradual phasing out of government-backed mortgage giants Fannie Mae and Freddie Mac, several online news sources reported. A Bloomberg report said U.S. Treasury Secretary Timothy F. Geithner will present a plan to Congress detailing three options that will reduce the government’s role in the mortgage market and phase-out Fannie and Freddie. The report said Secretary Geithner, who met with President Barack Obama yesterday, will unveil the proposal as early as Friday. → Read More January 27th, 2011, Carlo Gabriel Simbajon  “Anemic.” That is how the Inspector General for the Troubled Asset Relief Program describes the performance of the Home Affordable Modification Program (HAMP). Furthermore, Special Inspector General Neil Barofsky, accused the Treasury Department, which oversees HAMP, of refusing to adopt “meaningful goals and benchmarks” for the program. In his quarterly report to Congress, Barofsky cited figures that showed there have been just over 500,000 permanent modifications that are ongoing as of Dec. 31. And, that only 238,000 of these modifications are TARP funded, a report by CNNMoney said. HAMP is the main foreclosure-prevention program of President Barack Obama’s administration. Its main purpose to provide assistance to qualified homeowners to avoid foreclosure by facilitating modifications on their mortgages with loan servicers. An official of the Treasury Department reacted to Barofsky’s report saying:”It’s important to recognize that these programs are making an impact, and while there may be difficulties in implementation, we’re still committed to doing as much as we can to help as many people as possible.” → Read More January 26th, 2011, Carlo Gabriel Simbajon  Since the government seized mortgage giants Fannie Mae and Freddie Mac in September 2008, $160 million in taxpayers’ money have been used to defend the companies and their former executives against civil lawsuits accusing them of fraudulent practices. According to a report by The New York Times, $132 million of taxpayers’ money was used in the legal defense of Fannie Mae and its executives in a variety of legal suits and government probes into alleged accounting irregularities which supposedly took place prior to the subprime mortgage crisis. The Times reported it reviewed documents that showed $24.2 million have been paid out to law firms defending former Fannie Mae top executives Franklin D. Raines, Timothy Howard and Leanne Spencer. Raines is the former chief executive, Howard the former chief financial officer and Spencer the former controller. → Read More November 22nd, 2010, Carlo Gabriel Simbajon  U.S. Vice President Joe Biden announced yesterday the administration’s plan to ban mortgage-relief companies from charging advance fees to individuals who seek assistance in paying off their home loans. The ban, which will be imposed by the U.S. Federal Trade Commission, was announced by Biden yesterday during a news conference in Washington. Biden said the measure is part of the plans of the Obama administration to help middle and low-income class families who are having trouble paying their bills. → Read More November 16th, 2010, Carlo Gabriel Simbajon  A congressional panel tasked to oversee President Barack Obama’s Wall Street bailout fears the ongoing mortgage and foreclosures scandal could mean serious new troubles for the housing market, a Reuters report said. A study prepared by the Congressional Oversight Panel outlined a range of best-case and worst-case scenarios that could emerge from the foreclosures crisis. In a best-case outcome, the concerns about the scandal are “overblown,” the report said. However, a worst-case scenario could mean the banks face billions of dollars in losses, the study said. → Read More November 11th, 2010, Carlo Gabriel Simbajon  Fannie Mae (OTC:FNMA) has officially terminated the services of a controversial Florida law firm which has figured prominently in the ongoing mortgage and foreclosures scandal. In a statement posted on FannieMae.com, Fannie Mae said it “has terminated its relationship with the Law Offices of David J. Stern, P.A” (NASDAQ:DJSP). The nation’s largest → Read More November 9th, 2010, Michael Danielson  The 99ers and other people in the ever-growing lower class have long suspected that the wealthy were in some way to blame for the Great Recession, and thought they ought to pay for the Tier 5 unemployment extension and other social safety nets as part of their coming clean with society. The proof, however, is hard to pin down. The Great Recession is a complex beast. With time and understanding however, comes a lot of insight. (In large part, the information in this article is derived from the book The Looting of America by Les Leopold.) → Read More October 30th, 2010, Carlo Gabriel Simbajon  The U.S. Securities and Exchange Commission is reminding banks of their “disclosure obligations” in the light of the ongoing mortgage and foreclosures scandal. In a letter, the SEC said the banks should disclose, among others, their expected losses arising from fraudulent paperwork. The SEC said the letter, which was posted in the → Read More |
