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: 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
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
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
Who said we should take it slow and be careful with reforming Fannie and Freddie because we don't want to break anything? Not Rep. Barney Frank, D-Mass., but instead, several Republican congressmen apparently abandoning their bid to reform the two government-sponsored enterprises (GSEs) in a mere two years. Apparently they're forgetting that voters weren't voting for a change of heart: Read More
If you read this uncharacteristically lengthy piece in USA Today, you get a real sense of how bad things could get if the government actually gets out of the housing business altogether: Read More