Category Archives: Real estate

Wells Smacked Down Over Bad Faith Arguments in Foreclosure Case

Even though foreclosures and bank servicing abuses have virtually disappeared in the eyes of the media, it’s quite a different story in the courtrooms of America. Banks continue to proceed with foreclosures, too many of which are based on bogus charges or other servicing abuses.

Fortunately, more and more judges seem to be recognizing bank bad conduct. Wells Fargo proceeded with a foreclosure on a clear bad-faith basis, and then made some eye-rolling arguments before a judge who is on to Wells’ game and is none too impressed.

Repeated Foreclosures on an On-Time Borrower Demonstrate Failure to Fix Servicing and Fallacy of “Save Banks at All Costs” Policy

Repeated foreclosure attempts against an on-time borrower reveal why servicing remains hopelessly broken. That also means government guaranteed mortgages are here to stay.

Wolf Richter: Housing Hit the Wall of Wall Street in May

Now that homes are coming on the market in large numbers, buyers, faced with sky-high prices and higher mortgage rates, went on strike.

Wolf Richter: Fed’s Bullard Calls Out Ignoring Bubbles Developing “Under Our Noses,” So What About Now?

Yves here. It’s been astonishing to see members of the Fed in denial about their own handiwork, so when St. Louis Fed President James Bullard berates his fellow central bankers for their abject refusal to notice pre-crisis bubbles, it’s an all too rare departure from their usual insularity and willful blindness.

Larry Summers’ Contradictory and Dishonest Defense of Administration’s Bank-Focused Crisis Response

Larry Summers, like Tim Geithner, wants the public to believe that rescuing banks and leaving citizens to rot was the right crisis response. But neither experts, nor people who followed the crisis, nor voters at large are buying what Team Obama is trying to sell.

Ilargi: The Illusionary Economy Revives Helocs, the Home ATM

Yves here. Ilargi is duly skeptical of the enthusiastic financial press response to an increase in home equity liquidation, um, borrowing using home equity lines of credit, or Helocs. While the party line is that this development reflects an rise in home equity and increased consumer confidence, Ilargi stresses that prices appreciation that the Fed has created, the Fed can also take away. I have to wonder how many of these Heloc borrowers are doing so out of necessity or near-desperation.

Wolf Richter: Housing Bubble 2 Already Collapsing for the 99%

One of the side effects of QE is that housing prices and sales levels for the top 1% in most markets are strong, while activity in the rest of the market is falling.

Wolf Richter: This Chart Is The Fate of Housing In America As Student Loans Bankrupt A Whole Generation

Student loans are a millstone that is crushing college educated young adults, and with them, key parts of the economy.

Blackstone Unit Sued Over Slum-Like Condition of Single Family Home Rental

How Blackstone’ single family home rental business, Invitation Homes, is proving to be more slumlord than landlord.

Wolf Richter: Implosion of Housing Bubble 2 Hits Six Cities in the West

Last time, all that craziness was called a “housing bubble” with hindsight. This time, it’s called a “housing recovery.”

GSE Reform Dead for Now

I’m a little surprised at the overly coded reporting at the New York Times and particularly the Wall Street Journal, where Nick Timiraos provides top-notch coverage on the mortgage beat, on the implications of the failure of a widely-touted, Administration-backed GSE reform bill to get out of the Senate Banking Committee. Basically, it confirms what I’ve long believed but refrained from writing about, namely, that government sponsored enterprise, aka, GSE reform, was not going to get done in this session of Congress.

“Independent” Foreclosure Review Error Rate Vastly Higher Than Previously Admitted

At this point, it seems hard to add insult to injury, given the terrible track record of the OCC Independent Foreclosure Reviews. But it’s nevertheless been done.

Quelle Surprise! Ginnie Mae Says Bank of America Has Lots of Servicing Documents Missing; MERS Also in Hot Water

An article by Kate Berry in American Banker earlier this week hasn’t gotten the attention it deserves. Anyone who was paying attention to the mortgage beat in 2010 through 2012 knew that mortgage securitization originators and servicers were playing fast and loose with critical documents like mortgage notes because they couldn’t be bothered to observe […]

Predatory Equity: How Private Equity Came to New York’s Rental Market

Private equity firms have been hoovering up houses all over the US to convert into rentals. But they were active in the New York City rental market before their big buying spree, and that experience gives a window on how they are likely to behave as landlords.

Slumlord Wannabe Blackstone Violates Local Housing Laws by Making Tenants Maintain Rentals

The yawning gap between private equity landlord sales talk and what they are delivering is finally being exposed.