Mortgage Lenders under Spotlight at Senate Hearing
- By:
- MortgageLoan.com | May 08, 2008
In an ongoing investigation into alleged irregularities by mortgage lenders, the Senate on Tuesday heard testimony from the Chief Executive of Countrywide Financial Corporation, Steve Bailey and Katherine Porter, a professor at the University of Iowa.
Addressing the Senate, Bailey admitted that Countrywide had made mistakes "from time to time", but disputed claims of conscious wrong doing on the part of the mortgage giant.
"Servicers have also been accused of intentionally assessing inappropriate fees and costs to borrowers in bankruptcy. With respect to Countrywide these allegations are simply not true," he said.
Porter however testified that mortgage companies and servicers have improperly sought repayment for attorneys' fees and other costs without fully disclosing or documenting fees.
"The upsetting reality is that the current bankruptcy system routinely forces borrowers to pay bloated amounts and permits mortgage servicers to misbehave without serious consequence," she testified.
Senator Charles E. Schumer, the Democrat of New York who heads the panel, criticized what he called a "vulture mentality" in the mortgage industry.
Director of the Justice Department's bankruptcy trustee program, Clifford White said the department had stepped up its efforts to prosecute violations.
Mortgage Application Volumes Drop 6.2 percent
- By:
- MortgageLoan.com | July 24, 2008
An increase in interest rates contributed to a decline in demand for mortgage application volumes which witnessed a 6.2 percent decrease in the week ending July 18, an industry trade group revealed on Wednesday.
Senate Agrees Housing Package Deal
- By:
- MortgageLoan.com | July 23, 2008
Senate leaders have agreed upon a rescue plan for the two largest mortgage finance companies Fannie Mae and Freddie Mac. The deal would allow the government to insure up to $300 billion in refinanced mortgages.
Wachovia Ceases Wholesale Mortgage Lending Operations
- By:
- MortgageLoan.com | July 22, 2008
Wachovia on Monday confirmed it was pulling out of the wholesale mortgage lending business as of Friday, July 25th.
Donald Trump Makes Real Estate Killing
- By:
- MortgageLoan.com | July 18, 2008
Property Tycoon, Donald Trump has defied the slump in the real estate market by selling his Florida Mansion for $100 million to a Russian billionaire.
FBI Investigating Possible Fraud at IndyMac
- By:
- MortgageLoan.com | July 17, 2008
IndyMac is one of several banks being probed by the Federal Bureau of Investigation (FBI) for possible mortgage fraud, a U.S official revealed on Wednesday.
Fed Chief Paints Bleak Economic Outlook
- By:
- MortgageLoan.com | July 16, 2008
The US economy will continue to face "numerous difficulties" with no sign of easing over the next two years was the depressing message delivered to Senators by Federal Reserve Chairman, Ben Bernanke on Tuesday.
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