Category Archives: servicers
Federal Short Sale Programs Will Face Same Shortcoming As Workouts: Too Much Carrot, Not Enough Stick
With government-backed loan modification programs showing abysmal results, Washington has turned to short sales as the flavor of the week to ameliorate the foreclosure crisis. Pursuant to the Treasury Department’s Home Affordable Foreclosure Alternatives (HAFA) initiative, effective April 5, loan … Continue reading
Federal Home Loan Bank of San Francisco Sues Over RMBS Losses As Investor Actions Build Steam
One month ago, with the filing by the Federal Home Loan Bank of Seattle of eleven lawsuits against the major Wall Street creators of residential mortgage-backed securities (RMBS), I speculated that the floodgates of investor litigation may finally be swinging … Continue reading
Home Loan Bank Lawsuit May Signal Floodgates Opening For Investor Actions
As reported this week in the Wall Street Journal (article available here, with subscription), the Federal Home Loan Bank of Seattle has filed separate lawsuits against 11 different Wall Street firms, alleging that it was misled about the quality of … Continue reading
Bondholders Considering Plan to Tell Servicers: "You’re Fired!"
With lawsuits against servicers grinding a slow path through the court system, investors are looking to make an end-run around the intransigent banks who are refusing to service mortgages in accordance with bondholder wishes. Their solution to break through the … Continue reading
