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Loan modification

Investor Money Goes Down the Rabbit Hole with Foreclosure Freezes

In last two weeks, three of the nation’s largest mortgage loan servicers called an emergency halt to foreclosures because employees in their servicing shops were submitting foreclosures to the courts without reading the foreclosure documents, and without properly notarized signatures attesting that the documents have been read.

My Changing View on Mortgage Fraud

Since the start of the mortgage crisis, I’ve maintained my position that everyone who participated in the market was in some way guilty of bringing it down.  Originators made fraudulent loans; investors bought pools they knew were too risky; diligence firms didn’t disclose what they knew; rating agencies didn’t understand the collateral; issuers were willing to securitize anything; and borrowers lied and cheated to get a loan for houses they couldn’t afford.

I’m not known for sugar-coating.

A Deal Too Good To Be True

People often write to me seeking advice. These generally aren’t “Dear Abby” types of requests. Rather, they have questions about the mortgage industry – the status of the housing market and home prices, job openings, advice about their home loans, you name it.

The Irony of Credit Reporting

In today’s New York Times, there is a lengthy piece by Peter S. Goodman about the failures of the Obama administration’s Making Home Affordable program. 


If they weren’t the root cause of the subprime mortgage crisis, NINJA loans certainly fueled the flames.

NINJAs are No Income, No Job, no Asset loans. As the names imply, these loans were given to people based on income they claimed to make with no requirement that borrowers back up their assertions with pay stubs or tax returns. A credit score was often enough documentation to get a borrower qualified.


There's a new term being kicked around: "overhang," and it refers to the extremely large pipeline of foreclosed properties that's going to hit the market sometime. You've heard of taking a sip from a firehose. Now, picture standing in front of that hose, and its end has been clamped shut by foreclosure moratoriums, courts log-jammed with more foreclosures than they can process, and modifications and workouts that bought people time, but in many cases won't keep them from saving their homes from foreclosure.

Not Necessarily Gold In Them Thar' Hills (Could Be Gold Dust)

Tips on Loan Modification

Last week I shared an overview of the most common types of modifications. Today, I'd like to share some tips to keep in mind as you work with your servicer to modify a home loan.

Modifications 101

Drawing a Line on Loan Modifications

I've heard a lot of talk about how modifications are so innocuous that nobody wants them.