New Presentation Explains Why Organizations and People Across the US Oppose the OneWest and CIT Group Merger

Posted on February 13, 2015 by CustomerBullHorn

Did you have a mortgage from IndyMac Bank, OneWest Bank, or a reverse mortgage from Financial Freedom? Federal bank regulators are holding a public hearing about a proposed merger of CIT Group and OneWest Bank. If you’ve had negative experiences with OneWest or Financial Freedom, you may want to take a look at this blog post and consider emailing the Federal Reserve and OCC so they have an accurate picture of OneWest’s servicing practices.

How does the California Homeowner Bill of Rights Help You?

Posted on June 4, 2013 by CustomerBullHorn

Did you hear the recent news about a homeowner in West Sacramento effectively using the new California Homeowner Bill of Rights to stop foreclosure on his home? You can read about it in the Sacramento Bee: “West Sacramento homeowner uses new state law to stop foreclosure (5/23/2013)” The Fair Housing Law Project at the Law Foundation of Silicon Valley prepared a summary of the California Homeowner Bill of Rights which homeowners can use when working with their bank or servicer to apply for a loan modification.

“How does the California Homeowner Bill of Rights Help You?” by Fair Housing Law Project is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. Based on a work at https://foreclosurehelpscc.wordpress.com/2013/06/04/how-does-the-california-homeowner-bill-of-rights-help-you/. Permissions beyond the scope of this license may be available at www.foreclosurehelpscc.org.(Reproducing the text below for commercial purposes is NOT allowed.)

CALIFORNIA HOMEOWNER BILL OF RIGHTS

California’s Homeowner Bill of Rights (HBOR) adds new protections to help prevent avoidable foreclosures. HBOR requires loan servicers and lenders to provide additional notices so that borrowers will know their rights and how to contact their loan servicer to obtain a loan modification or other types of foreclosure relief.

HBOR prevents “Dual Tracking” where loan servicers put homeowners on the foreclosure track, even when a loan modification application is being evaluated. HBOR requires that servicers provide for a single consistent point of contact to help the homeowner through the loan modification and or foreclosure process. HBOR also requires lenders to provide proper documentation before they can foreclose, and it gives borrowers tools to enforce their rights.

Before filing a notice of default (NOD), and at least 30 days prior to recording a NOD, the mortgage servicer must send a written notice to the borrower stating that if the borrower is a service member, or a dependent of a service member, he or she may be entitled to certain protections. The notice must also let borrowers know, (both military and non-military), that they have the right to request and obtain key loan documents, and their payment history.

If the lender has already filed a notice of default (NOD), the mortgage servicer must send a letter to the borrower within 5 business days of recording the NOD, notifying the borrower that he or she may be evaluated for a foreclosure prevention alternative; whether an application is required to be considered; and the process by which a borrower may obtain an application.

Key Requirements and Protections under HBOR

HBOR requires servicers to acknowledge receipt of your loan modification application and prohibits them from proceeding with the foreclosure process while evaluating your eligibility.

If you submit a loan modification application, the servicer must give you written acknowledgement of receipt of your documentation within 5 business days of receipt. The notice must also provides information about the application process, advises you of any missing documents needed to make the application complete and gives you a deadline for submitting those documents.

You must be informed one way or the other of your lender’s decision. Borrowers who submit a completed loan application must get a “yes” or “no” decision from their servicer before the servicer can begin or continue with the foreclosure process. A denial must include a detailed explanation for their decision.

HBOR stops the foreclosure while you wait for a decision. Once you’ve submitted a completed loan modification application, your servicer cannot file or proceed with a filed foreclosure until your lender has given you a decision on your modification.

HBOR stops foreclosure if you qualify for, accept and keep current on a loan modification. If your lender says you qualify and you accept an offer, the lender cannot proceed with foreclosure, as long as you keep paying on time and as agreed in the modification.

You have 14 days to accept an offered first lien loan modification. If you do not accept the modification, your servicer can proceed with the foreclosure process 14 days after the first lien loan modification is offered.

Loan servicers cannot charge you a fee to apply for a loan modification or other relief.

Late fees cannot be assessed for periods during which a completed loan modification application is under consideration, during an appeal, or while timely loan modification payments are being made.

If you are granted a modification or other relief and the loan is sold or transferred, the subsequent servicer must honor the agreement.

HBOR does not require a servicer to offer you a loan modification if it does not participate in any such program, or if you do not meet the applicable eligibility requirements.

The duty to offer an opportunity to apply for foreclosure prevention alternatives, if available through the lender, is limited to first lien loans.

The Fair Housing Law Project is a member of ForeclosureHelpSCC, a community program that assists homeowners and tenants facing foreclosure. If you are facing foreclosure, there are certified professionals who can help you understand your options to avoid foreclosure, including through a loan modification. Call the hotline: 408-293-6000, visit the website: www.foreclosurehelpscc.org, or send an email: help@foreclosurehelpscc.org

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Foreclosure Help is a coalition program funded by the city of San Jose through a HUD Community Development Block Grant and the city of Sunnyvale, and we can directly assist homeowners and tenants in San Jose and Sunnyvale who are facing foreclosure. However, we are unable to assist homeowners/former homeowners in other cities and states. If you need housing counseling, we suggest using the interactive map on HUD’s website.

ForeclosureHelp partners include the Housing Trust Silicon Valley (lead agency), the Fair Housing Law Project at the Law Foundation of Silicon Valley, SurePath Financial Solutions, Project Sentinel, Asian Inc, Neighborhood Housing Services of Silicon Valley, and the Santa Clara County Association of Realtors.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose through a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir. Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org. FAIR HOUSING AND ANTI-DISCRIMINATION POLICY It is the policy of ForeclosureHelp not to discriminate against any person because of that person’s race, color, religious creed, sex (gender), sexual orientation, marital status, national origin, ancestry, familial status (households with children under the age of 18), source of income, disability, medical condition or age. Color or “ethnic group identification” means the possession of the racial, cultural or linguistic characteristics common to a racial, cultural or ethnic group, or the country or ethnic group from which a person or his or her forebears originated. As required by law, we agree to take the affirmative steps needed to further fair housing. ForeclosureHelp will consider any and all requests for reasonable accommodation in the application of its rules, policies, practices, and services, and in the use of its physical structures, in accordance with the requirements of state and federal laws. You can ask ForeclosureHelp to consider any reasonable accommodation you may have. Please consult with the Program Manager (408-293-6000 or via email: help@foreclosurehelpscc.org) to request this accommodation.

Homeowners Say Customer Service is Still a Problem when They Contact Their Bank or Servicer (foreclosurehelpscc.wordpress.com)
HAMP Program Is Extended Until 2015: What does this mean for homeowners in San Jose and Sunnyvale California? (foreclosurehelpscc.wordpress.com)

HAMP Program Is Extended Until 2015: What does this mean for homeowners in San Jose and Sunnyvale California?

Posted on May 30, 2013 by CustomerBullHorn

The Obama Administration announced today that the HAMP program has been extended until 2015. This is an important development because the program was set to expire at the end of 2013. ForeclosureHelp and our seven partners had signed a letter earlier this year, asking that the program be extended because it has been such an important tool in helping families to remain in their homes.

In the past few months, homeowners have contacted ForeclosureHelp and worked with our certified housing counselors when they’re struggling with their mortgages and possibly facing foreclosure because of a death of a spouse, chronic unemployment, predatory hard money loans, student loans, divorce, etc.

HAMP is an important program that a housing counselor can use to help a homeowner stay in their home. Other programs include Keep Your Home California or Conserva Tu Casa California. The Unemployment Mortgage Assistance Program will pay your mortgage for up to 9 months), HARP, and private, in-house modifications.

A few stats about HAMP from the most recent report on loan modifications in the fourth quarter of 2012:

Among HAMP modifications, servicers reduced interest rates in 81% of those modifications, deferred principal in 29.2%, and reduced principal in 24.9%
HAMP modifications reduced payments by an average of 35.4%.

If you’re a homeowner in San Jose or Sunnyvale, pick up the phone and call ForeclosureHelp today. Our certified counselors can help you analyze your situation, determine which programs may help you (and they’ll assist you to apply) and create a sustainable plan forward.

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Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

It is the policy of ForeclosureHelp not to discriminate against any person because of that person’s race, color, religious creed, sex (gender), sexual orientation, marital status, national origin, ancestry, familial status (households with children under the age of 18), source of income, disability, medical condition or age. Color or “ethnic group identification” means the possession of the racial, cultural or linguistic characteristics common to a racial, cultural or ethnic group, or the country or ethnic group from which a person or his or her forebears originated. As required by law, we agree to take the affirmative steps needed to further fair housing.

ForeclosureHelp will consider any and all requests for reasonable accommodation in the application of its rules, policies, practices, and services, and in the use of its physical structures, in accordance with the requirements of state and federal laws. You can ask ForeclosureHelp to consider any reasonable accommodation you may have. Please consult with the Program Manager (408-293-6000 or via email: help@foreclosurehelpscc.org) to request this accommodation.

Homeowners Say Customer Service is Still a Problem when They Contact Their Bank or Servicer (foreclosurehelpscc.wordpress.com)
ForeclosureHelp Update: CitiGroup and Wells Pause Foreclosures; MN Passes Homeowner Bill of Rights; NY AG Updates Complaint Against BOA and Wells for Violating AG Settlement (foreclosurehelpscc.wordpress.com)
Do Student Loans Contribute to Foreclosure Crisis? What We’ve Seen from Homeowners in San Jose and Sunnyvale, CA (foreclosurehelpscc.wordpress.com)

Legislation Would Give Consumers 120 Days To Resolve Medical Debts Before Dinging Credit Reports

Posted on May 29, 2013 by CustomerBullHorn

Some of the homeowners from San Jose and Sunnyvale that work with ForeclosureHelp are struggling with their mortgages in part because of medical debt and medical bills. Damaged credit can also be an issue if you’re trying to refinance. This post from the Consumerist highlights recently introduced legislation that would give consumers 120 days to resolve medical debt with collectors before that debt is reported to the credit bureaus.

Wendell Potter: A Cynical Search for Loopholes (huffingtonpost.com)

Homeowners Say Customer Service is Still a Problem when They Contact Their Bank or Servicer

Posted on May 27, 2013 by CustomerBullHorn

Lost documents, robo-signing, getting different messages from different bank departments, broken verbal promises for modifications, loan servicing being transferred, and unexplained modification denials- are these all things of the past with settlements like the Independent Foreclosure Review, Attorney General Settlement, and here in California, the new Homeowner Bill of Rights?

Not exactly.

At the national level, the Consumer Financial Protection Bureau recently made its complaint database public and complaints about mortgage loan servicing issues represent 55% of the 90,000 complaints. The Bureau is making the data public and asking for people’s ideas on how to use the data. As an example, the Bureau created a sort-able spreadsheet that allows users to sort by the type of complaint, company, etc.

HousingWire recently touched on some of these issues in their April 23^rd article, “Loan mods, inaccessible websites irritate servicing customers the most.” The article describes Craig Martin’s recent presentation where he said that loan modification and inaccessible/difficult to maneuver websites are two top complaints of homeowners. Martin is with J.D. Power and Associates, which publishes an annual rating on mortgage loan servicers.

In J.D. Power and Associates’ most recent survey of 5,623 homeowners , BB&T, Regions Mortgage, SunTrust Mortgage, Chase, and PNC Mortgage were ranked the highest quality. In comparison, the five lowest rated banks/servicers were Aurora Loan Services, OneWest Bank (formerly Indymac), Homeward Residential, Nationstar Mortgage, and Ocwen Loan Servicing. You can see the full chart of all the banks on page 4: J.D. Power and Associates Reports: Amid Record-Low Interest Rates and Improved Loan Modification Programs, Customer Satisfaction Increases

If you live in San Jose or Sunnyvale and you’re struggling with your mortgage, you may want to sit down and meet with a housing counselor from ForeclosureHelp. At your appointment, they’ll review your mortgage, your income/monthly budget, and then help you understand your eligibility for programs like HAMP, HARP, in-house modifications, and Keep Your Home California– a program that over 600 Santa Clara County residents have already accessed and used.

The services at ForeclosureHelp are paid for through a federal Community Development Block Grant from the City of San Jose and from a grant from the City of Sunnyvale- so there is no charge to the homeowner.

Other resources to review:

Consumer Financial Protection Bureau warns mortgage servicers about legal protections for consumers when transferring loans

The CFPB takes action against mortgage insurers to end kickbacks to lenders

Maggie’s Five Rules for Working with Your Bank or Servicer

California Monitor (for Attorney General Settlement with 5 largest banks) Website

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Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

ForeclosureHelp Update: CitiGroup and Wells Pause Foreclosures; MN Passes Homeowner Bill of Rights; NY AG Updates Complaint Against BOA and Wells for Violating AG Settlement (foreclosurehelpscc.wordpress.com)
Do Student Loans Contribute to Foreclosure Crisis? What We’ve Seen from Homeowners in San Jose and Sunnyvale, CA (foreclosurehelpscc.wordpress.com)
HARP Refinance Option for Homeowners in San Jose and Sunnyvale (foreclosurehelpscc.wordpress.com)

Do Student Loans Contribute to Foreclosure Crisis? What We’ve Seen from Homeowners in San Jose and Sunnyvale, CA

Posted on May 23, 2013 by CustomerBullHorn

USA Today reported yesterday (“Nobel winner: Cut student loan rates” ) on one of the proposals that has been put forth by Senator Elizabeth Warren (Bank on Students Loan Fairness Act) to deal with what some have termed the next subprime mortgage bubble- student loan debt.

Right now, student loan interest rates on Government-subsidized Stafford loans will increase in July 2013 from 3.4% to 6.8% unless Congress acts.

Senator Warren’s proposal would instead have the interest rate tied to the Federal Reserve’s discount rate, which is currently .75%. In presenting her proposal, Warren explained that this would mean student borrowers would pay the same interest rates that large banks pay when they borrow money from the Federal Reserve.

Is student loan debt the next subprime bubble? It could be, especially if the rates are allowed to increase to 6.8%. Here at ForeclosureHelp, we work with homeowners who are having trouble paying their mortgages in San Jose and Sunnyvale, California. Based off a few recent cases of homeowners we’ve worked with, we can say that student loan debt is a very real problem for homeowners.

It could be the single person, who is already struggling with their mortgages, perhaps had their student loans in deferment, but can no longer defer the loans and must start paying them. This extra expense, which could range from anywhere from $200 to $1,000 more a month, has to come from somewhere.

Or, it could be the parents who co-signed on student loans because they wanted their kids to go to college, but are now struggling to pay these loans in addition to other expenses like the mortgage, food, gas, etc.

Student loan debt, unlike credit card debt, can’t be eliminated through bankruptcy except in some limited cases (see the Nolo resource page below). While there are options like deferment, it seems like a more concrete, lasting change will be necessary. The status quo- with students trapped by overwhelming amounts of student debt, has translated to fewer first time homebuyers, a “drag” on the economy, and is also part of the reason that the housing sector continues to limp along. In fact, Forbes (Student Loan Problems: One Third Of Millennials Regret Going To College) cited a recent study of millenials in which 1/3 said they regret having gone to college and would have been better off working instead.

So, here at ForeclosureHelp, we are very interested to see how Congress addresses the student loan debt crisis because we know it has very real implications for homeowners here in San Jose and Sunnyvale, or for recent graduates would like to be homeowners at some point, but have a large overhand of debt that will prevent that from happening for another 10-15 years. When the Consumer Financial Protection Bureau asked Americans for their ideas on dealing with the crisis, they heard from almost 30,000 people- demonstrating that this is a very real problem for too many Americans.

A few resources that may be helpful:

Top 10 Student Loan Tips for Recent Graduates

Mapping Your Future: Manage your student loan debt

NOLO.com: “Student Loan Debt in Bankruptcy”

Consumer Financial Protection Bureau: Helping borrowers find ways to stay afloat A path forward to spur affordable repayment options

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Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

ForeclosureHelp Update: CitiGroup and Wells Pause Foreclosures; MN Passes Homeowner Bill of Rights; NY AG Updates Complaint Against BOA and Wells for Violating AG Settlement (foreclosurehelpscc.wordpress.com)
US senator proposes student loan refinance plan (sfgate.com)

ForeclosureHelp Update: CitiGroup and Wells Pause Foreclosures; MN Passes Homeowner Bill of Rights; NY AG Updates Complaint Against BOA and Wells for Violating AG Settlement

Posted on May 20, 2013 by CustomerBullHorn

It has been a busy week for developments related to the ongoing foreclosure crisis.

On May 17th, American Banker broke the news (“Wells, Citi Halt Most Foreclosure Sales as OCC Ratchets Up Scrutiny”) that Wells Fargo and Citigroup were halting foreclosures in some states after receiving new guidance from their regulator, the Office of the Comptroller of the Currency. (read the guidance here). According to the article, JP Morgan Chase had suspended foreclosures, but has re-started them.

While this “pause” is temporary, it does raise questions from housing advocates and homeowners who have suggested that banks and servicers are still failing to comply with new regulations around mortgage loan servicing, and dual tracking (processing a foreclosure and modification at the same time) abuses.

For example, the California Reinvestment Coalition’s latest survey (they’ve done nine since the foreclosure crisis started) of housing counselors in California found that homeowners and housing counselors are still dealing with multiple contacts at the bank, instead of the “Single Point of Contact” (SPOC) that is mandated by the recently enacted Homeowner Bill of Rights: “Over 70% of responding counselors reported that SPOC’s were “never,” “rarely,” or only “sometimes,” accessible, consistent or knowledgeable.” Read the full survey here: “Chasm Between Words and Deeds IX: Bank Violations Hurt Hardest Hit Communities”

Homeowners here in San Jose and Sunnyvale, California who contact ForeclosureHelp for our free housing counseling services (the program is paid for through a HUD Community Development Block Grant and through funding from the city of Sunnyvale) have reported similar issues with their Single Points of Contact and not receiving return phone calls from them.

As HousingWire reported earlier this month, (“California Homeowner Bill of Rights blocks BofA foreclosure”), the protection against dual-tracking under the CA Homeowner Bill of Rights was recently used for a California homeowner who obtained an injunction against Bank of America foreclosing on his home. His attorney told HousingWire that he estimates the expenses for Bank of America for this case could easily hit $60,000.

Joseph Smith, who is the National Monitor for the AG Settlement, is expected to release a report shortly that will detail if and how well the banks are meeting the requirements they agreed to under the national AG settlement. Meanwhile, the Attorney General for the state of New York, Eric Schneiderman, has announced that he is revising his complaint against Wells Fargo and Bank of America for their alleged 339 servicing violations under the AG settlement. From American Banker: “ N.Y. AG Revising Foreclosure Settlement Complaint Against B of A, Wells”

The common sense protections included in California’s Homeowner Bill of Rights appear popular in Minnesota, with the Minnesota Star Tribune reporting that a bill with similar protections has just passed their House of Representatives and has already passed the Minnesota Senate: “House passes Homeowners Bill of Rights”

We’ll close on a positive note from Freddie Mac, which announced that its new Streamlined Modification program is immediately available for homeowners who are facing foreclosure and whose loan is owned by Freddie Mac. Through this program, servicers will send modification offers to borrowers who are at least 90 days late, but no more than 720 days late, and whose loan is at least 12 months old. The borrower will have to make three on time payments during a trial period, and then they will be offered a modification. Servicers can reduce the monthly mortgage payment by lowering the interest rate, extending the loan to 40 years, and also through forbearing principal (not the same as a principal reduction- this is more like a balloon payment ). For more information, read their press release: “Freddie Mac Announces Immediate Availability of Streamlined Modification for Delinquent Borrowers”

Wells Fargo Forecloses On Homeowner Who Made Payments Too Early (consumerist.com)
Elderly Man Allegedly Dies in Court Fighting Wells Fargo ‘Wrongful’ Foreclosure (alternet.org)
Bill would require mediation before foreclosure (charlotteobserver.com)

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

Second Wave of Independent Foreclosure Review Checks Mailed Out on April 19, 2013

Posted on April 19, 2013 by CustomerBullHorn

The Office of the Comptroller Currency announced today that a second wave of 1.4 million checks (totaling $1.2 billion) is being mailed out today to homeowners and former homeowners as compensation under the Independent Foreclosure Review. A total of 2.8 million checks have been sent out, worth $2.4 billion total. According to the press release, 90% of the 4.2 million checks will be sent out by the end of April. However, some borrowers will have to provide additional information and their checks will not be sent out until later this summer.

ForeclosureHelp reported last week about Congressional hearings on the many, many mistakes made throughout the Independent Foreclosure Review, including a poor outreach campaign, $2 billion being spent on “independent” consultants, and a decision in January to scrap the reviews for most of the original 14 banks and servicers. This was replaced with a “program” of the banks deciding how badly they had injured a homeowner, and then the banks or servicers assigning a homeowner or former homeowner to a category, which would then determine their amount of compensation.

As we reported earlier this week, when homeowners first attempted to cash their checks, some of the checks were returned because of insufficient funds.

Senator Elizabeth Warren (D-MA) and other senators sharply questioned the consultants during a hearing on April 11th (Outsourcing Accountability? Examining the Role of Independent Consultants) and another hearing about the reviews took place on April 17th (Helping Homeowners Harmed by Foreclosures: Ensuring Accountability and Transparency in Foreclosure Reviews, Part II). Senator Warren questioned whether it made sense to pay $2 billion for consultant’s work that was never actually used to determine compensation for the homeowners and former homeowners.

Editor’s note: Foreclosure Help is a program funded by the city of San Jose through a HUD Community Development Block Grant and the city of Sunnyvale, and we can directly assist homeowners and tenants in San Jose and Sunnyvale who are facing foreclosure. However, we are unable to assist homeowners/former homeowners in other cities and states. If you need housing counseling, we suggest using the interactive map on HUD’s website and if you have questions about the information below, please contact Rust Consulting (1-888-952-9105).

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

Federal Reserve Issues Update about Independent Foreclosure Review Checks (foreclosurehelpscc.wordpress.com)
Cash Payments for Independent Foreclosure Review Will Begin Being Mailed April 12, Senate Banking Committee Will Hold Hearing about the Independent Foreclosure Reviews (foreclosurehelpscc.wordpress.com)
Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance. (foreclosurehelpscc.wordpress.com)

Cash Payments for Independent Foreclosure Review Will Begin Being Mailed April 12, Senate Banking Committee Will Hold Hearing about the Independent Foreclosure Reviews

Posted on April 9, 2013 by CustomerBullHorn

1) Cash Payments Being Sent Out This Week ForeclosureHelpSCC has closely followed the Independent Foreclosure Review, so we are glad to see the press release from the Federal Reserve stating that cash payments to 4.2 million homeowners covered by the updated Independent Foreclosure Review program will start being mailed out on April 12^th. You can see a chart of the penalties and the award amounts (per penalty), and how many people are receiving compensation for each penalty using this chart on the Federal Reserve’s website: Independent Foreclosure Review Payment Agreement Details.

As a reminder, 13 of the banks and servicers are participating in the revised program. However, GMAC Mortgage, Financial Freedom (part of IndyMac), Everbank/EverHome Mortgage Company, and OneWest Bank/IndyMac Mortgage Services are continuing with the original review, which had a deadline to apply of December 31, 2012. For more information about the Independent Foreclosure Review, visit our earlier blog posts: Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance.” (Spanish version and Vietnamese version)

2) ResCap Tries to Get out of its Independent Foreclosure Review Obligations: In related news, Andrew R. Johnson reports in Fox Business News “Ally, ResCap Spar Over Federal Foreclosure-Review Program” that Ally Financial and ResCap (its mortgage subsidiary) are having issues around ResCap’s attempt to exit the Independent Foreclosure Review. GMAC Mortgage, which is part of ResCap, is one of the banks that did not agree to the updated Independent Foreclosure Review program back in January. According to the article, ResCap asked a bankruptcy judge to stop the Federal Reserve from enforcing the lender’s obligations that it agreed to under the Independent Foreclosure Review. Instead, ResCap suggests that these obligations should be treated as other unsecured creditors in the bankruptcy process. However, the Federal Reserve filed a court filing suggesting that Ally’s liability is limited to the reimbursement to the harmed homeowners.

3) Former SEC Chairwoman Joins Former Independent Foreclosure Review Consultant Company Gregory Mott reported for Bloomberg “Promontory Adds SEC’s Schapiro to Roster of Ex-Regulators” (April 2, 2013) that Mary Schapiro, who was chairwoman of the US Securities and Exchange Commission until December 2012, has joined Promontory. As a refresher, Promontory was one of several high-priced consulting companies that was hired to do the Independent Foreclosure Reviews. Yves Smith, founder of the Naked Capitalism blog, wrote a scathing account of Pomontory on a February blog post entitled “Bank of America Foreclosure Reviews: Why the OCC Overlooked “Independent” Reviewer Promontory’s Keystone Cops Act (Part VB).”

She quotes Doug Smith, a former partner at McKinsey, who reviewed accounts from contractors who worked on the reviews. He said:

“It’s hard to imagine a more unprofessional, atrociously managed effort. In my more than three decades of working with, observing and advising teams and projects, I cannot identify a single worse example.”

Smith continues:

But the surprise was how inept Promontory proved to be in its efforts to hide how much damage was done to borrowers. The scale of the exercise, combined with the pervasive reliance on contractors and temps who were told only the official story that their mission was to find evidence of damage done to borrowers, meant they went down that path, often surprisingly far.

4) GAO Releases Critical Report about Independent Foreclosure Review. The New York Times has a summary Blame Abounds Over a Flawed Foreclosure Review (April 3, 2013) of the GAO’s recently released report Foreclosure Review: Lessons Learned Could Enhance Continuing Reviews and Activities under Amended Consent Orders about the Independent Foreclosure Review. Our favorite quote in the article is from New York’s Banking Regulator, Benjamin M. Lawksy, who was quoted in a recent speech as saying:“It is worth considering the monitors’ lack of independence…The monitors are hired by the banks, paid by the banks, and depend on the banks for future engagements.” The Senate Banking Committee has a hearing scheduled for April 11 “Outsourcing Accountability? Examining the Role of Independent Consultants” (this Thursday) about the Independent Foreclosure Reviews, and it will be interesting to watch.

5) Cash Floods into Silicon Valley Neighborhoods: Part Two? Here in Silicon Valley, Pete Carey recently reported in the San Jose Mercury News Bay Area’s average homebuyers shut out by cash offers, (April 3, 2013) about the bidding wars that have taken on what many would consider a bubble like quality. Carey discusses a recent “fixer upper” in Santa Clara that needed $100,000 in repairs. It was listed at $419,000 and later sold for $629,500. Of the 69 offers, 65 of them were “cash offers.” This trend of Wall Street cash flooding into neighborhoods has happened before, and some advocates are concerned about the effect this has on pushing out first time homebuyers and on having so many homes not owner-occupied. CNBC reports that large amounts of student debt may be another large obstacle for first-time homebuyers in their recent article: “Student Loan Debt Hurts Housing”

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

April Fools: Independent Foreclosure Review Program is Re-Designed By Homeowners and Housing Counselors (foreclosurehelpscc.wordpress.com)
Foreclosure Help’s March Update on the Independent Foreclosure Review, Debt Collectors, Making Home Affordable, Hispanic Homeownership,and “Zombie Foreclosures” (foreclosurehelpscc.wordpress.com)
Foreclosure Help’s Update on the Independent Foreclosure Review, Debt Collectors, Making Home Affordable, Hispanic Homeownership,and “Zombie Foreclosures” (foreclosurehelpscc.wordpress.com)
David Dayen: OCC, Fed Stonewalling Congressional Oversight of Independent Foreclosure Reviews (nakedcapitalism.com)

NEW WEBSITE OFFERS 12 QUESTIONS THAT HELP HOMEOWNERS TO DETERMINE IF THEY MIGHT QUALIFY FOR AS MUCH AS $100,000 IN MORTGAGE ASSISTANCE

Posted on March 20, 2013 by CustomerBullHorn

Have you heard about Keep Your Home California‘s new tool on their website? Answer 12 questions to determine your eligibility for one of the four programs.

Spanish version: Conserva Tu Casa

Other Keep Your Home California Resources that may be helpful:

The Customer Bullhorn

Amplifying your customer service experience

Tag Archives: foreclosure

New Presentation Explains Why Organizations and People Across the US Oppose the OneWest and CIT Group Merger

How does the California Homeowner Bill of Rights Help You?

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Legislation Would Give Consumers 120 Days To Resolve Medical Debts Before Dinging Credit Reports

Homeowners Say Customer Service is Still a Problem when They Contact Their Bank or Servicer

Do Student Loans Contribute to Foreclosure Crisis? What We’ve Seen from Homeowners in San Jose and Sunnyvale, CA

ForeclosureHelp Update: CitiGroup and Wells Pause Foreclosures; MN Passes Homeowner Bill of Rights; NY AG Updates Complaint Against BOA and Wells for Violating AG Settlement

Second Wave of Independent Foreclosure Review Checks Mailed Out on April 19, 2013

Cash Payments for Independent Foreclosure Review Will Begin Being Mailed April 12, Senate Banking Committee Will Hold Hearing about the Independent Foreclosure Reviews

NEW WEBSITE OFFERS 12 QUESTIONS THAT HELP HOMEOWNERS TO DETERMINE IF THEY MIGHT QUALIFY FOR AS MUCH AS $100,000 IN MORTGAGE ASSISTANCE

Unemployment Mortgage Assistance Program, Part of Keep Your Home California: How Does It Work?

Keep Your Home California: How Does It Work?

Event Focuses on Stabilizing Homeownership after Foreclosures in California

101 SERVICERS PARTICIPATING IN KEEP YOUR HOME CALIFORNIA

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