Mortgage Law Blog, LLC

Introduction

Mortgage Law Blog takes privacy and the security of personal information very seriously.  All Persons using this Blog agree to read this Privacy and Security Policy (“Policy”) and learn about Mortgage Law Blog’s general privacy and information security policies.  This Policy applies to this Blog.  This Policy does not apply to any other sites that may be operated from time to time by Mortgage Law Blog or any other Person.

Each Person entering or submitting personal information over or through this Blog agrees to Mortgage Law Blog’s use of such information in accordance with this Policy.  Each such Person agrees not to send any personal information that the Person does not want to be treated other than in accordance with this Policy.

What is “Personal Information”?

Personal information means information by which any Person can be identified.  It includes such information as a Person’s name, address, telephone number and e-mail address.  Personal information also includes sensitive personal data, including such information as racial or ethnic origin, political opinions, religious, philosophical or other beliefs, union membership, health, sex life, commission of criminal offences and involvement in criminal or civil proceedings or matters.

Information Collection

Mortgage Law Blog may collect personal information sent by any Person over or through this Blog.  Mortgage Law Blog may use personal information for any purpose it deems appropriate, including (but not limited to):

• monitoring and improving the performance and content of this Blog, analyzing Blog usage and creating internal reports; and
• contacting users and delivering information (including marketing material) to Persons who have requested, or are believed to have interest in, information, such as notices, details of services and communications relevant to use of this Blog.  

Disclosure to Third Parties

Mortgage Law Blog may use third parties to provide data processing, hosting, storage, emergency recovery services, and other services.  Mortgage Law Blog may grant third parties access to personal information provided on this Blog.  

Mortgage Law Blog will not otherwise disclose your personal information to third parties without your consent, unless required or permitted to do so by law, including in the exercise or defense of our legal rights.  Mortgage Law Blog has no obligation to monitor the use of this Blog or to retain the content of any use of this Blog.  Mortgage Law Blog reserves the right at all times to monitor, review, retain, and disclose any information as necessary to satisfy any applicable law, regulation, legal process, or governmental request, or to cooperate with law enforcement or other authorities in investigating any claim.

Cookies

When a Person uses this Blog, a small data file, known as a “cookie,” may be placed on the Person’s hard drive or computer.  A cookie is an electronically transmitted file that holds small pieces of information.  Cookies collect certain information about the user’s use of the Blog and may send such information to Mortgage Law Blog’s server.  

There are different types of cookies.  Two types are persistent and session-based cookies.  Persistent cookies remain on a Person’s computer after the Person closes the browser or turns off the computer.  Session cookies cease to work or reside on a computer at specific instances, such as when the computer is turned off, the browser is closed, or the Person exits from the portion of a Blog that caused the cookie to be set.  

When a Person visits the general portion of this Blog, Mortgage Law Blog’s server may send a cookie to the Person’s computer.  Mortgage Law Blog generally uses this cookie to help understand better how visitors use this Blog.  For example, the cookies allow collection of information about how many people are visiting the Blog, what pages they are visiting and how they navigate the site.  

When a Person visits the home page of the general portion of this Blog, the Person may have the opportunity to choose to display the site with or without Flash navigation or Flash graphics.  In such cases, if the Person selects the “non-Flash site” link, a cookie may be set to implement the choice.  Without this cookie, the Person may see the Flash-version of the Blog in certain circumstances, even if the non-Flash version had been selected.

Mortgage Law Blog may use different types of cookies in a variety of different ways over the course of time, as the use and design of the Blog and the goals and needs of Mortgage Law Blog change.

A Person generally can choose not to receive cookies by setting the Person’s web browser to refuse cookies or to prompt the Person to act prior to accepting a cookie.  In such cases, the full functionality of this Blog may not be available.  

IP Addresses

Mortgage Law Blog may use IP addresses for a variety of purposes, such as analyzing trends, administering the Blog, tracking users’ movements, and gathering broad demographic information. 

Links to Other Websites

For convenience, this Blog may provide links to other websites.  This Policy applies only to this Blog (www.mortgagelawblog.com) and not to any other such sites.  Any Person accessing information through any link, whether or not such linked information opens in another browser, is strongly advised to review the privacy and security policies of such sites before using the site or providing any personal or other information.

Information from Children

Mortgage Law Blog does not direct this Blog to children under 13 years of age.  Individuals under 18 should consult with a parent or guardian about the use of this Blog.

Ownership of Materials

Mortgage Law Blog owns all information received over or through this Blog.  Mortgage Law Blog may retain and use any information received, including any resume or other information. 

Security

Mortgage Law Blog may use physical, electronic and procedural safeguards to protect personal and other information, including without limitation firewalls and scanning software to detect and block malicious code and certain unsolicited commercial e-mail (UCE or “spam”).  Internally, Mortgage Law Blog may employ encryption technologies, user authentication systems (e.g., passwords and personal identification numbers) and access control mechanisms to secure access to Mortgage Law Blog’s computer systems and files.  Due, at least in part, to these protections, some e-mail messages may not be received.

Each user of this Blog acknowledges and understands that information sent over or through this Blog may not be secure, and Mortgage Law Blog is not required to provide any protection or security. 

Modification of Policy

Mortgage Law Blog may modify this Policy at any time.  No modification or attempted modification of this Policy or the Terms shall be binding on Mortgage Law Blog.

Changes to this Policy will be posted on this Blog.  Users are encouraged to check back from time to time to review any updates that have been made.

Contacting Mortgage Law Blog

Any questions about this Policy or use of personal information should be directed to Troy W. Garris at MortgageLawBlog@gmail.com. 

Any and all use of this Blog is also governed by such other terms as may be published by Mortgage Law Blog on this Blog from time to time, including without limitation the Terms of Service.

Last revised April 24, 2008

Tags: Mortgage Banking - General by the Editor
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Terms of Service 

Mortgage Law Blog provides and permits use of this web log (“Blog”) solely subject to the following terms of service (“Terms”), which may be updated by Mortgage Law Blog from time to time without prior notice. 

Each use of this Blog constitutes the user’s specific agreement to the then-current Terms. Each such use is an acknowledgement that these Terms have been read and accepted. 

General

Mortgage Law Blog is a web log company, a limited liability company organized under the laws of Maryland.  (Except as specified to the contrary herein, the term “Mortgage Law Blog” as used below also includes Mortgage Law Blog’s owners, members, employees, personnel and agents.) 

The materials on this Blog are for general information purposes only and is not in any way intended, nor shall they be construed, as legal advice, legal opinion or any other advice on any specific facts or circumstances.  No person or entity (“Person”) should act or refrain from acting upon this information without seeking professional advice.  No Person may rely on this information or its applicability to any specific circumstances.  The information on this Blog is in no instance to be taken as an indication of completeness, applicability to a particular situation, or an indication of future developments or results.  No warranties, representations, or claims of any kind are made concerning the information available from, or the operation of, this Blog.  Any and all liability respecting the consequences of any action taken or not taken by any Person in connection with any information related to this Blog is hereby expressly and entirely disclaimed.

No Attorney-Client Relationship

Any Person contacting Mortgage Law Blog using any facility provided over or through this Blog is advised not to send any confidential, privileged or sensitive information to Mortgage Law Blog.  Use of this Blog does not give rise to any attorney-client relationship or privilege.  Mortgage Law Blog accepts no liability for any information sent to Mortgage Law Blog.  

This Blog is not an offer by an attorney or any other Person to represent any Person.  No use of any portion of, nor any communication or transmission of information to or from, this Blog shall be deemed to give rise to an attorney-client relationship.  Mortgage Law Blog is not a law firm, and no attorney-client relationship can exist between any Person and Mortgage Law Blog.  

Any Person with a legal question, or seeking representation in any legal matter, is encouraged to call an attorney.  

Blog Provided AS-IS, WHERE IS and AS AVAILABLE

Each user of this Blog acknowledges, understands and agrees that:

This Blog is provided by MORTGAGE LAW BLOG, and is hereby accepted by each Person using the BLOG, in “AS-IS,” “WHERE-IS” and “AS AVAILABLE” condition.  MORTGAGE LAW BLOG makes no representations or warranties of any kind IN ANY WAY RELATED TO OR REGARDING THIS BLOG, OR THE USE THEREOF, unless otherwise expressly stated to the contrary herein.  The representations and warranties of MORTGAGE LAW BLOG expressly provided for herein, if any, are the sole and exclusive representations and warranties of Mortgage Law Blog in connection with this Blog, and the user understands, acknowledges and agrees that all other representations and warranties of any kind or nature, express or implied, are specifically disclaimed.  Without limiting the generality of the foregoing, and UNLESS as expressly provided to the contrary herein, Mortgage Law Blog disclaims any representation or warranty, express or implied, of merchantability or fitness for a particular purpose AND NON-INFRINGEMENT.

MORTGAGE LAW BLOG MAKES NO WARRANTY THAT (i) THIS BLOG OR ANY INFORMATION OR SERVICE PROVIDED ON OR OVER OR ACCESSIBLE THROUGH, THIS BLOG WILL MEET ANY PERSON’S REQUIREMENTS; (ii) THIS BLOG OR ANY SUCH INFORMATION SERVICE WILL BE UNINTERRUPTED, TIMELY, SECURE OR ERROR-FREE; (iii) THE RESULTS THAT MAY BE OBTAINED FROM THE USE OF THIS BLOG OR ANY SUCH SERVICE WILL BE ACCURATE OR RELIABLE; (iv) THE QUALITY OF ANY PRODUCTS, SERVICES, INFORMATION OR OTHER MATERIAL ACCESSED OR OBTAINED BY ANY PERSON THROUGH THIS BLOG OR THAT ANY SUCH INFORMATION OR SERVICE WILL MEET ANY PERSON’S NEEDS OR EXPECTATIONS; (v) ANY ERRORS IN THIS BLOG WILL BE CORRECTED; OR (vi) THAT THIS BLOG, OR ANY SUCH INFORMATION OR SERVICE IS FREE OF VIRUSES OR OTHER MALICIOUS DATA OR PROGRAMS.

ANY MATERIAL DOWNLOADED OR OTHERWISE OBTAINED THROUGH THIS BLOG OR ANY SERVICE PROVIDED ON OR OVER THIS BLOG IS ACCESSED AT THE USER’S OWN DISCRETION AND RISK, AND EACH USER WILL BE SOLELY RESPONSIBLE FOR ANY DAMAGE ARISING IN CONNECTION THEREWITH, INCLUDING WITHOUT LIMITATION, ANY DAMAGE TO ANY COMPUTER SYSTEM USED BY SUCH PERSON OR LOSS OF DATA THAT RESULTS FROM THE DOWNLOAD OF ANY SUCH MATERIAL.  BY ACCESSING THIS BLOG, THE USER ASSUMES ALL RISKS OF LOSS THAT MAY OCCUR IN CONNECTION WITH SUCH USE, ABSENT GROSS NEGLIGENCE OR WILLFULNESS ON THE PART OF MORTGAGE LAW BLOG.

NO ADVICE OR INFORMATION, WHETHER ORAL OR WRITTEN, OBTAINED BY ANY PERSON FROM THIS BLOG OR ANY SERVICE PROVIDED ON OR OVER THIS BLOG SHALL CREATE ANY WARRANTY NOT EXPRESSLY STATED IN THESE TERMS.

Third Party Information

This Blog may provide links to a variety of other Internet resources and may provide access to third-party information.  Mortgage Law Blog is not responsible for any third party content, products or services that may be accessed through or on the Blog.   The availability of links on this Blog to such content, products or services do not in any way constitute referrals to, or endorsements of, the linked entities or the content, products or services of such Persons.  Without Mortgage Law Blog’s prior written consent, no Person is permitted to link material on this Blog with any other website, or associate or frame material on this Blog with any other site or materials.

User Representations and Warranties

User expressly represents and warrants to Mortgage Law Blog that user will not at any time:

• upload, post, email, transmit or otherwise make available (together, “Transmit”) any content or information that is unlawful, harmful, threatening, abusive, harassing, tortious, defamatory, vulgar, obscene, libelous, invasive of another’s privacy, hateful, or racially, ethnically or otherwise objectionable;
• Transmit any content or information that the user does not have a right to make available under any law or under contractual or fiduciary relationships (such as without limitation inside information, or proprietary or confidential information);
• Transmit any content or information that infringes any patent, trademark, trade secret, copyright or other proprietary rights of any Person;
• Transmit any unsolicited or unauthorized advertising, promotional materials, “junk mail,” “spam,” “chain letters,” “pyramid schemes,” or any other form of solicitation;
• Transmit any material that contains software viruses or any other computer code, files or programs designed to interrupt, destroy or limit the functionality of any computer software or hardware, telecommunications or other equipment;
• impersonate any Person, including, but not limited to, Mortgage Law Blog, or falsely state or otherwise misrepresent any affiliation with any Person;
• manipulate identifiers or other content or information in any way to disguise the origin of any content or information in any way related to the Blog;
• disrupt or interfere in any manner with any function on, or related to, the Blog, the service or servers or networks connected to the Blog; 
• disobey any requirements, procedures, policies or regulations of networks connected to the Blog;
• intentionally or unintentionally violate any applicable international, federal, state or local law, regulation, order, requirement or provision (together, “Applicable Law”);
• “stalk” or otherwise harass any Person, or engage in any similar activities; or
• collect or store personal data about any other Person using or referenced on this Blog for any of the above purposes.

 User Contributions to Mortgage Law Blog

By submitting ideas, suggestions, documents, and/or proposals (“Contributions”) to Mortgage Law Blog through suggestion or feedback, the user represents, warrants, acknowledges and agrees that: (a) such Contributions do not contain confidential or proprietary information; (b) Mortgage Law Blog is not under any obligation of confidentiality, express or implied, with respect to the Contributions; (c) Mortgage Law Blog shall be entitled to use or disclose (or choose not to use or disclose) such Contributions for any purpose, in any way, in any media worldwide; (d) Mortgage Law Blog may have something similar to the Contributions already under consideration or in development; (e) the user’s Contributions automatically become the property of Mortgage Law Blog without any obligation of Mortgage Law Blog to the user; and (f) the user is not entitled to any compensation or reimbursement of any kind from Mortgage Law Blog under any circumstances.

Changes in Service or the Blog

Mortgage Law Blog reserves the right at any time, and from time to time, to modify or discontinue, temporarily or permanently, this Blog or any service provided on or over this Blog (or any part thereof) with or without notice. The user agrees that Mortgage Law Blog shall not be liable to the user or any third party for any modification, suspension or discontinuance of this Blog or any such service.

Limitation of Liability

To the maximum extent permitted under Applicable Law, neither Mortgage Law Blog, nor any contributor to this Blog, shall be liable for any loss or injury, or any damages, whether direct, special, indirect, punitive, incidental, exemplary, consequential, or otherwise, whether based on breach of contract, tort (including negligence), product liability or otherwise, resulting from or occasioned by any Person’s access to or use of this Blog or any information received on or over this Blog.

Indemnification

Each Person using this Blog agrees not to use this Blog, or any information on the Blog, for any unlawful purpose or any purpose prohibited by these Terms.  To the maximum extent permitted under Applicable Law, each Person using this Blog agrees to indemnify, defend and hold harmless Mortgage Law Blog from any and all liability, loss, claim and expense (including reasonable attorneys’ fees) arising in connection with or in any way related to any violation of these Terms or use or access of this Blog.

Privacy

Each Person using this Blog agrees to be bound by Mortgage Law Blog’s Privacy and Security Policy, including the transfer of information to third parties in the United States and other countries for storage, processing and use.

Mandatory Arbitration

Any and all disputes arising out of or in connection with, or in any way related to, the entering into or interpretation of these Terms, or the use or access of this Blog, shall be settled through final and binding arbitration by a single arbitrator in accordance with the then-current rules for commercial arbitration issued by the American Arbitration Association (“AAA”).  Unless otherwise agreed to by the parties, the arbitration will be conducted by the AAA.  The forum for such arbitration shall be Montgomery County, Maryland.

Location of Blog

The parties acknowledge and agree that they are entering into these Terms for all purposes in Montgomery County, Maryland.

SeverabilityIf any of these Terms is or becomes illegal, invalid or unenforceable in any jurisdiction, such illegality, invalidity or unenforceability shall not affect:  (a) the legality, validity or enforceability in that jurisdiction of any other part or provision of these Terms or (b) the legality, validity or enforceability in other jurisdictions of that part or provision of these Terms or any other part or provision of these Terms.Mortgage Law Blog May Change Terms

Mortgage Law Blog reserves the right to vary or amend any and all Terms (and any other terms applicable to any use of this Blog, including without limitation the Privacy and Security Policy and Copyright and Trademark Notice) from time to time without prior notice.  Any changes shall take effect upon posting.

No Third Party Beneficiaries

The parties agree that, unless otherwise expressly provided in these Terms, there shall be no third-party beneficiaries.

Entire Agreement

These Terms constitute the entire agreement between the parties and govern the use of this Blog and any service provided on or over this Blog, superseding any prior agreements between the parties with respect thereto. 

Choice of Law and Forum

These Terms and the relationship between each user and Mortgage Law Blog shall be governed by the arbitration provisions hereof, and the laws of the United States of America and the State of Maryland without regard to conflict of law provisions.  In the event any matter is properly brought in a court, the parties agree to submit to the personal and exclusive jurisdiction of the courts located within Montgomery County, Maryland.

No Waiver

The failure of any party to exercise or enforce any right or provision of these Terms shall not constitute a waiver of such right or provision. 

Statute of Limitations

To the maximum extent permissible under Applicable Law, the parties agree that regardless of any statute or law to the contrary, any claim or cause of action arising out of or related to use of this Blog or service provided over or on this Blog must be filed within one year after such claim or cause of action arose or such claim or cause of action shall be forever barred.

IRS Circular 230 Disclosure

Any federal tax advice contained on this Blog, or any information or service provided through this Blog, is not intended or written to be used, and it cannot be used, by any Person for the purpose of (i) avoiding any penalty that may be imposed by the Internal Revenue Service or (ii) promoting, marketing or recommending to another Person any transaction or matter addressed.

Copyright and Trademark Notice

Mortgage Law Blog is, unless otherwise stated, the owner or licensee of all rights in this Blog and its contents, software, databases and services.  The materials contained on this Blog are protected by the copyright and trademark laws and other laws of the United States and other countries.  No Person using this Blog shall have any right, title, or interest in such contents, software, databases or services not previously expressly granted in writing to such user by Mortgage Law Blog or Mortgage Law Blog’s licensor.

User agrees that no materials from this Blog will be published, uploaded, downloaded, transmitted, posted, copied, reproduced, distributed or republished except (a) with Mortgage Law Blog’s express written permission, (b) in accordance with a license granted by Mortgage Law Blog, (c) in accordance with a contract entered into with Mortgage Law Blog, or (d) as permitted by applicable law.  Notwithstanding the foregoing, each Person using this Blog shall have the right to print or download one copy of such materials on any single computer for personal, non-commercial use only, but only if:

• all proprietary notices, including copyright, trademark and other intellectual property notices, are kept intact;
• the materials are not modified;
• the materials, absent Mortgage Law Blog’s express written permission, are not used in a manner that suggests an association with any of Mortgage Law Blog’s services; and
• the materials are not incorporated in any other work or publication.

 Notwithstanding the foregoing,

• any materials available on this Blog are subject to any additional or narrower restrictions stated in such materials or by the owners thereof;
• more than one copy of brochures, announcements, registration forms, client alerts and bulletins, and similar materials may be printed or downloaded as may be necessary and reasonable under the circumstances;
• a Person using this Blog may send copies of the materials to individual third parties for personal information, but only if acknowledgement is given that this Blog is the source of the materials, and the third party is given notice that the Terms governing this Blog apply; and
• no part of this Blog shall be distributed or recopied for any commercial purpose or for a fee.

 Mortgage Law Blog reserves the right at all times, and in its sole and absolute discretion, to withdraw or modify the permissions set out above.

Any and all use of this Blog is also governed by such other terms as may be published by Mortgage Law Blog on this Blog from time to time, including without limitation the Privacy and Security Policy.

 Last revised April 24, 2008

Tags: Mortgage Banking - General by the Editor
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Mortgage Law Blog reminds readers that the Mortgage Bankers Association’s Legal Issues and Regulatory Compliance Conference is April 28 to May 1.

The conference, held this year in Carlsbad California, is one of the premier events for lawyers in the mortgage banking industry.

The MBA describes the conference as follows:

This year has brought an unparalleled array of new legislative, regulatory and litigation developments to the mortgage industry.  MBA’s Legal Issues and Regulatory Compliance Conference 2008 at La Costa Resort and Spa in Carlsbad, Calif., will provide you with an in-depth understanding of all that is new and all that is anticipated so that you can meet the legal and regulatory challenges of today and tomorrow.

No other conference offers the mortgage industry as comprehensive a legal and regulatory program. At this conference — designed for managers, industry lawyers and compliance officers — industry experts present conference participants with the entire complement of legal and regulatory developments facing the industry, including:  

New Federal Anti-Predatory Lending Legislation 

New Home Ownership and Equity Protection Act (HOEPA) Regulations

New RESPA and TILA Reform Proposals

New State Laws

New Servicing and Loss Mitigation Standards

New Litigation Cases and Class Actions

New Secondary Market - GSE and Investor Requirements

New Initiatives to Protect Lenders Against Mortgage Fraud

New HMDA and Fair Lending Developments

New Data Security, ID Theft and Privacy Initiatives

New FCRA and FACTA Developments

New FLSA/Employment Law Cases

New Risk Mitigation Strategies

Legal Ethics

New issues in the legal, regulatory and compliance spheres

The conference is packed with excellent speakers and attendees from industry and government, including from the Department of Housing and Urban Development, state Attorneys General offices, Fannie Mae, Freddie Mac, numerous mortgage banking companies and others. 

For more information about the conference, please click here.

Mortgage Law Blog will not post during this period due to the Editor’s attendance at the conference.

Tags: Association Activities, Conferences & Events, Federal Bank Regulators, Fraud, HUD & FHA, High Cost Loans, Industry Involvement, Legislation, Litigation, Loan Modifications/Workouts, Loan Servicing, Loss Mitigation, Mortgage Banking - General, RESPA, Regulations, State Enforcement, State Regulation, Truth in Lending Act, Unfair or Deceptive Acts by the Editor
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RESPA News (paid subscription required) reports that representatives Judy Biggert (R-IL) and Ruben Hinojosa (D-TX) have sent a letter to Roy Bernardi, the Deputy Secretary of the Department of Housing and Urban Development, requesting that HUD give the public 60 more days to comment on HUD’s proposed RESPA Reform rules.

According to the article, the letter states that: 

given the significance of this law and its regulations, any changes should be thoroughly vetted, especially at this time when our economy is in such a fragile state.  We need to ensure that any HUD updates to RESPA regulations do not negatively impact the home buying process and exacerbate the current economic slowdown.

A number of organizations have already requested additional time, but the article notes that Ivy Jackson, Director of HUD’s Office of RESPA and Interstate Land Sales, already has informally indicated that no extension of time is appropriate.

Mortgage Law Blog readers may recall that Reps. Biggert and Hinojosa were also active on this issue in 2004.  At that time, they initiated a letter writing campaign that helped block the RESPA Reform proposal then on the table.

Will this Reform proposal stay on track?  Stay tuned . . .

Tags: Association Activities, Consumer Protection, HUD & FHA, Industry Involvement, Mortgage Banking - General, RESPA, Regulations by the Editor
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The Conference of State Banking Supervisors issued a press release stating that industry attempts to prevent foreclosures are insufficient.

The release stems from the second report entitled “Analysis of Subprime Mortgage Servicing Performance” issued by the State Foreclosure Prevention Working Group (led by 11 states attorneys general and banking regulators, and the CSBS).  The report includes data from subprime servicers for the period from October 2007 to January 2008.  A prior report was issued February 7, 2008. 

The report acknowledged that the number of homeowners receiving loss mitigation help has increased.  But so have the number of homeowners delinquent on payments.  Private initiatives are “barely keeping pace” CSBS noted.

CSBS notes the following major findings from the report:

Seven out of ten seriously delinquent borrowers are still not on track for any loss-mitigation outcome.  The number of borrowers in loss mitigation has increased, but it has been matched by an increasing level of delinquent loans; thus, the relative percentage has remained about the same.  Given creative servicer outreach efforts and increased public awareness of the HOPE Hotline during Oct.-Jan., this large gap suggests a more systemic failure of servicer capacity to work out loans.  

Data suggests that servicers’ loss-mitigation departments are severely strained in managing the current workload.   The report noted that almost two-thirds of all loss-mitigation efforts started are not completed in the following month.  We are concerned that servicers overall are not able to manage the sheer numbers of delinquent loans.  Data suggests that the burgeoning numbers of delinquent loans that do not receive loss-mitigation attention are clogging up the system on their way to foreclosure.  We fear this will translate to increased levels of vacant foreclosed homes that will further depress property values and increase burdens on government services.

Homeowners who do receive loss-mitigation help are most likely to receive some form of loan modification.  The Group said such modifications are a solution that seems to offer better long-term prospects for successful resolution of problem loans.  Many servicers are replacing their use of repayment plans in favor of loan modifications.

To solve the perceived problems, the report suggests that industry and state officials work on:

Developing a more systematic loan work-out system to replace the intensive, individual, “hands-on” loss-mitigation approach.  Initial efforts to develop systemic approaches are far too limited to make a difference in preventable foreclosures.  Without a systematic approach, we see little likelihood that ongoing efforts will make a serious dent in the level of unnecessary foreclosures.  The Group will continue to work with servicers to promote systematic solutions to modify loans in a more streamlined and efficient manner.

Slowing down the foreclosure process to allow for more work-outs.  Targeted efforts to slow down subprime foreclosures may give homeowners and servicers more time to find solutions to avoid foreclosure.  Many states have enacted or are considering such measures, the report noted.

Mortgage Law Blog notes that “barely keeping pace” is still keeping pace.  This would seem to be an accomplishment if the numbers of delinquent borrowers continue to surge as the report suggests.  This is not to suggest that industry sit on its hands, but the industry’s side of the story continues to be lost in the maelstrom.

The Ohio AG, among others, will speak at the Mortgage Bankers’ Association’s Legal Issues and Regulatory Compliance Conference next week.  It will be interesting to hear the views presented.

For a copy of the CSBS press release, click here.

For a copy of the State Working Group’s reports, click here.

Tags: Association Activities, Conferences & Events, Consumer Protection, Foreclosure, Industry Involvement, Loan Modifications/Workouts, Loan Servicing, Lobbying, Loss Mitigation, Mortgage Banking - General, Regulations, State Enforcement, State Regulation by the Editor
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The Federal Bureau of Investigations last week issued a press report regarding fraud generally.  The FBI presented interesting statistics regarding a number of types of fraud.

In the mortgage industry, the FBI stated it is currently “investigating more than 1,300 individual mortgage fraud matters. Perhaps more importantly, we have identified 19 corporate fraud matters related to the subprime lending crisis—cases that may have a substantial impact on the marketplace.”

Mortgage Law Blog believes that mortgage companies that might have been involved in fraud were limited to a very small number of bad actors, all or most of which probably no longer exist.  At the individual level, it is quite possible that these 1300 cases are the tip of the fraud iceberg.

For the FBI’s press release, click here.

Tags: Consumer Protection, Fraud, Mortgage Banking - General by the Editor
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President Bush intends to nominate Steve Preston as the next Secretary of the Department of Housing and Urban Development. 

Mr. Preston is currently Administrator of the Small Business Administration.  The President lauded Mr. Preston’s executive abilities during his SBA tenure.  He officially assumed that role following Senate confirmation in July 2006. 

Some critics of the President’s choice noted Mr. Preston’s relative lack of housing experience, pointing to the critical juncture at which the Nation finds itself in the housing industry.

Chairman Chris Dodd, of the Senate Committee on Banking, Housing and Urban Affairs, for example, issued the following statement:

As our nation faces the biggest housing crisis in recent history, we need a strong leader at the Department of Housing and Urban Development who is dedicated to helping people keep their homes, restoring stability and confidence in the mortgage market, and creating more affordable housing opportunities.  These priorities call for a leader with expertise in housing issues, yet the President’s choice has no apparent housing background, which raises questions.  Nevertheless, I look forward to learning more about Mr. Preston and his qualifications for this important job at this trying time in our nation’s economy.

For a copy of the White House press release, click here. 

For a copy of the White House’s Fact Sheet on Mr. Preston, click here.

For a copy of the Senate Committee’s press statement, click here.

Tags: Consumer Protection, HUD & FHA, Mortgage Banking - General, RESPA, Regulations by the Editor
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The House Financial Services Committee yesterday introduced two legislative measures aimed at the economic downturn “caused by the housing and credit crisis.” 

The stated legislative goal is to ”combat the unprecedented rise in foreclosures, and the associated impact on cities and states.”

The legislation was first announced by Committee Chairman Barney Frank back in March. 

The legislation is divided into two bills.

The first bill is the Neighborhood Stabilization Act of 2008 (H.R. 5818).  This bill, introduced by Subcommittee on Housing and Community Opportunity Chairwoman Maxine Waters, would provide loans and grants to states and cities to deal with problems associated with large numbers of foreclosures in neighborhoods across the country. 

The second bill is the FHA Housing and Homeowner Retention Act (H.R. 5830).  This bill would expand the FHA program to help refinance at-risk borrowers into viable mortgages and require the Federal Reserve Board to conduct a study on the need for an auction or bulk refinancing mechanism. 

A summary of the the loan and grant bill can be found in the Committee’s press release here.

A summary of the FHA bill can be found here.  A copy of the FHA bill can be found here.

A markup of the measures is slated for April 23 and 24.

Tags: Bailouts, Consumer Protection, Economic Stimulus, Federal Reserve, HUD & FHA, Legislation, Mortgage Banking - General by the Editor
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Mortgage Law Blog reminds readers that the deadline for submission of comments on the Department of Housing and Urban Development’s proposed revisions to regulations under the Real Estate Settlement Procedures Act of 1974 is:

May 13, 2008.

HUD’s summary of the proposal states:

This proposed rule presents HUD’s proposal to simplify and improve the disclosure requirements for mortgage settlement costs under the Real Estate Settlement Procedures Act of 1974 (RESPA), to protect consumers from unnecessarily high settlement costs. This proposed rule takes into consideration: discussions during HUD’s RESPA Reform Roundtables held in July and August 2005; public comments in response to HUD’s July 29, 2002, proposed rule that addressed RESPA reform; and comments received and views expressed through congressional hearings; meetings with affected parties; and consultation with other federal agencies, including the Small Business Administration Office of Advocacy.

HUD’s objective in proposing these revisions is to protect consumers from unnecessarily high settlement costs by taking steps to: Improve and standardize the Good Faith Estimate (GFE) form, to make it easier to use for shopping among settlement service providers; ensure that page one of the GFE provides a clear summary of the loan terms and total settlement charges so that borrowers will be able to use the GFE to comparison shop among loan originators for a mortgage loan; provide more accurate estimates of costs of settlement services shown on the GFE; improve disclosure of yield spread premiums to help borrowers understand how they can affect their settlement charges; facilitate comparison of the GFE and the HUD-1/HUD-1A Settlement Statements (HUD-1 settlement statement or HUD-1); ensure that at settlement borrowers are made aware of final loan terms and settlement costs, by reading and providing a copy of a “closing script” to borrowers; clarify HUD-1 instructions; clarify HUD’s current regulations concerning discounts; and expressly state when RESPA permits certain pricing mechanisms that benefit consumers, including average cost pricing and discounts, including volume based discounts.

A copy of the proposal can be found here. 

Mortgage Law Blog encourages interested parties to weigh in on the proposed rules.   There may not be another opportunity to affect the language of the rules for a long time. 

After receiving public comments, HUD is required by the Administrative Procedures Act to review the comments and decide what (if any) changes to make to the RESPA regulations.

Tags: Consumer Protection, HUD & FHA, RESPA, Regulations by the Editor
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Mortgage Law Blog reminds readers that today and tomorrow is the Mortgage Bankers Association’s National Policy Conference.  This year may be the most important Policy Conference ever.

Tomorrow consists of the constituents from various states meeting with and educating members of Congress and/or their staff on issues critical to the industry.  These interactions provide a rare and insightful glimpse into the legislative process and allow the industry to correct many misconceptions and downright misleading information that has been provided to Congress.

There have been rumors that large protests are anticipated.  These protests may be diffused by other protests and events in town, including the Pope being in Washington and a planned protest by gun control advocates.  The threat of protests highlights the importance of the Conference and the Hill visits this year.

More information about the conference can be found here.

Tags: Association Activities, Conferences & Events, Consumer Protection, Industry Involvement, Legislation, Mortgage Banking - General by the Editor
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