Nearly six months ago, the nation’s five largest loan providers — Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo — agreed to the $25 billion National Mortgage Settlement in response to the ongoing foreclosure crisis.
The terms of the settlement just went into full effect.
Thanks to California Attorney General Kamala Harris, almost half the settlement — $12 billion — was set aside for our state. Read More
Fannie Mae and Freddie Mac were prime players in the mortgage meltdown that led to the worst recession since the Great Depression. Those government-backed corporations own more than 60 percent of the mortgages in California, which is second only to Nevada in devastation from the foreclosure crisis. In the past five years more than 768,000 homes have been foreclosed upon in this state, including thousands in San Francisco from Bayview to Pacific Heights. Read More
WHAT: Mortgage giant Fannie Mae knew about allegations of foreclosure abuses by law firms since 2003. It hired a law firm to investigate in 2005. The firm reported in 2006 that foreclosure attorneys were “routinely filing false pleadings and affidavits.” Read More
WHAT: Lee Farkas, former chairman of Florida’s collapsed Taylor Bean & Whitaker mortgage company, was sentenced to 30 years in federal prison for running what prosecutors called one of the “largest bank fraud schemes in this country’s history.” Read More
Paul Krugman is right about one thing in his column today: “What we are experiencing right now is a top-down disaster.” Unfortunately, Krugman does intend this sentence to mean that our economy is suffering from too much top-down central planning in Washington. Read More
Many explanations have been written about what caused the 2008 financial crisis. George Mason University economics professor Russ Roberts’ paper “Gambling with Other People’s Money: How Perverted Incentives Caused the Financial Crisis” is among the best. Read More
The National Bureau of Economic Research published a paper March 21st by Deniz Igan, Prachi Mishra, and Thierry Tressel titled, “ Read More
In the financial reform bill that passed last year, there was only one requirement with respect to mortgage giants Fannie Mae and Freddie Mac. President Barack Obama had to come up with a plan for reforming them by Jan. 31, 2011. Read More
In the minds of most political journalists, it seems there is no greater virtue than "moderation" or pragmatism. In the past year, the media's two great exemplars of practical-minded centrism have been Democrat Sen. Read More
In the financial reform bill that passed last year, there was only one requirement with respect to mortgage giants Fannie Mae and Freddie Mac. President Obama had to come up with a plan for reforming them by Jan. 31, 2011. Unfortunately, it proved too difficult for the White House to meet a deadline it imposed on itself. Read More