Posts Tagged ‘fannie mae’

The Real ‘Miami Zombie’ — David Stern!

Tuesday, June 5th, 2012

Rudy EugeneWe’ve all heard by now of the unbelievably grizzly story out of Miami about Rudy Eugene, the man so off his gourd that he ate a man’s face off.

Somewhere along the line this horrific attack became the source of comic fodder. Eugene’s been dubbed “The Miami Zombie,” and yes he even has a Twitter account.

But I might argue that there is another man worthy of that title, and his crimes, while not as physically grotesque, are none the less revolting.

I am talking about David J. Stern. The actions of Stern and his firm are continuing to have an impact on my cases, and over a year after his firm closed, the lasting effects of its shady practices are still reverberating throughout Florida.

A revised class action lawsuit was filed last week against Stern, his former CFO and the law firm he founded by two hedge funds who are accusing Stern of ripping them off.

So not only do we have a story about zombies, but we have cannibals to boot! The people who once trusted Stern have turned on him, and once again we have the banks ‘eating’ their own!

Read the gory details here.

The former head of one of largest foreclosure mills already had a less than sterling reputation, but after reading the latest allegations against Stern and his cohorts at DJSP Enterprises, Inc., I’d (playfully) argue he really is a zombie, because how he ripped off countless homeowners is TRULY disgusting and his actions continue to harm homeowners to this day.
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Friday Round-Up; Foreclosures Up Again, DeMarco Dances With Reductions; Bank Of America Sues Itself

Friday, April 13th, 2012
cowboy lassoForeclosures, repos up from last year in South Florida

I said after the foreclosure settlement was announced that banks had been given the green light to rev up their foreclosures engines, and in South Florida at least, I’m being proven right.

RealtyTrac’s numbers from last month show dramatic year-over-year increases in both new foreclosure filings (85%) and repossessions (39%) in Palm Beach, Broward, and Miami-Dade counties, compared to March 2011.

In Florida overall, new foreclosure cases were up 58 percent. Nationally however, new filings dropped 12 percent from last year, however they rose 7 percent from February.

Since the sunshine state has one of the largest foreclosure backlogs in the country, it really shouldn’t surprise you that the numbers skew so heavily against Florida.

The settlement has emboldened banks to become more aggressive in seeking to foreclosure, and the numbers certainly back that up.

Edward DeMarco Not Ready For Principal Reduction

More back and forth this week from Edward DeMarco, who despite announcing that principal reduction could save Fannie Mae and Freddie Mac 1.7 billion dollars, seems unwilling to venture far from his previous stance on loan modifications.

He said in a speech this week that a new analysis does show writing down the value of some underwater mortgages does have the potential to lower foreclosure rate and save both GSEs substantial money, but he’s still downplaying the significance of principal reduction.

While he has eased up on his previous refusals to even entertain the idea of modifications, he still seems fixated on the risk of strategic default, which he feels could wipeout any potential savings.
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Did Fannie Mae and Freddie Mac Just Admit Principal Reduction is Good?

Monday, March 26th, 2012

Could Fannie Mae and Freddie Mac finally be willing to sign off on principal reduction as a way to keep homeowners out of foreclosure and in their homes?

Edward DeMarco, the acting head of the Federal Housing Finance Agency and de facto leader of the two GSEs has been steadfast in his opposition.

President Obama has made principal reduction priority one. It was one of the highlights of the mortgage settlement and many economists point to it as the way out of this housing mess.

But DeMarco still hasn’t budged, because he says principal reduction will cost the taxpayer money and isn’t good for Fannie and Freddie’s bottom line.

Except maybe it is.

According to NPR and ProPublica, executives at both Fannie Mae and Freddie Mac have concluded that principal reduction would prevent larger losses and in fact, save the two companies money.

Their report claims that in part because of new Obama incentives, which would reimburse lenders half of what they write off, that Fannie and Freddie would benefit from principal reduction

These presentations have yet to be made public, but Democrats are already clamoring to see them. And so am I.

Look I’m not saying that principal reduction comes without risk. Could everyone decide to stop paying their mortgages in order to get a write-down? Sure.

But just because you might get hit by a car doesn’t mean you don’t cross the street. The housing market will NEVER rebound if people keep getting kicked to the curb.

And I don’t care what Edward DeMarco has said, the bottom line shouldn’t be his bottom line. It shouldn’t be about what is cost effective, it should be about what keeps borrowers in their homes. Last time I checked, they are taxpayers too.
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Fannie Mae and Freddie Mac: Past Their Prime

Wednesday, February 15th, 2012

Just like Old Yeller, Freddie Mac and Fannie Mae need to be put down

There were two players conspicuously absent when last week’s $25 Billion settlement was unveiled; two players that absolutely should have been front and center.

What are their names? If you’ve followed the housing crisis as closely as we have, then you probably know.

Our old and unwanted cousins Fannie and Freddie.

Their omission from the settlement was perhaps its biggest flaw.

There are millions upon millions of homeowners with mortgages controlled by Fannie Mae and Freddie Mac, yet they aren’t getting a single penny.

We’ve been advocating principal reduction as one of the best ways to help beleaguered borrowers, and we’re not alone in that assessment. That’s why it was at the center of the settlement.

Yet Edward DeMarco, the man behind both companies, still clings to the outdated notion that principal reduction would lead to a moral contagion among homeowners otherwise known as a “moral hazard”.

He’s forbidden Fannie and Freddie to even entertain the idea.

While President Obama and others, such as Massachusetts AG Martha Coakley have turned up the heat on DeMarco, he hasn’t budged.

DeMarco is more concerned about his political ideology than helping the American homeowners, who are in essence, is his clients.

He’s like that annoying relative that no one invited, yet keeps showing up every Thanksgiving. But DeMarco is far from the only problem.

When you have Freddie Mac trying to profit from securities that paid more if homeowners couldn’t refinance, that is proof that we are just too far down the rabbit hole.
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