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BUSINESS
September 6, 2008 | E. Scott Reckard, Times Staff Writer
The decline of housing markets in California and Florida has led to record numbers of foreclosures and is causing even good borrowers to pay more for loans, according to analysis and statistics released Friday. To add to the bleak picture, the government Friday reported the eighth straight month of declining employment, increasing pressure on borrowers burdened by tumbling home prices and loans with rising interest rates. The U.S. jobless rate jumped in August to a nearly five-year high of 6.1%, with nonfarm payrolls down 84,000.
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BUSINESS
May 12, 2010 | By E. Scott Reckard, Los Angeles Times
The U.S. Senate voted Wednesday to ban certain bonus payments to mortgage brokers and loan officers, cutting off what experts have called one of the key causes of the nation's mortgage meltdown. The little-known bonuses were paid for home loans that could be sold at higher prices because they carried higher interest rates and other more onerous terms than those for which the borrowers were qualified. Amending financial reform legislation as it makes its way through Congress, the Senate also voted to outlaw stated-income mortgages — loans made without using tax documents, pay stubs or bank records to verify that borrowers actually earn as much as they say they do. These so-called liar loans and the bonus payments are widely regarded as key factors leading to the subprime lending debacle that snowballed into the deep recession.
BUSINESS
June 25, 2013 | Michael Hiltzik
The student debt crisis is one of those issues that concentrates the minds of both parties in Congress. That's why there are at least half a dozen legislative proposals circulating in Washington to forestall a doubling of interest rates on many federal student loans scheduled to take effect July 1. But it doesn't explain why almost all those proposals ignore the one remedy to graduates' loan burdens that would make their squabbling over an interest-rate...
BUSINESS
June 23, 2010 | By Gail MarksJarvis
For countless Americans struggling to make their mortgage payments, the problems have just begun. Although a loan modification or foreclosure might allow them to put their housing problems behind them, millions will be dogged for years by the aftermath — a credit score so tarnished by the housing debacle that lenders will avoid them. And if they are able to obtain loans, high interest rates are likely to strain their budgets. This is one remnant of the housing crisis that is sometimes ignored by economists, but the effects may well be a drag on the nation's consumption — and the economy as a whole — for a decade or more.
BUSINESS
December 5, 2009 | By Renae Merle
About 25% of borrowers helped under the administration's massive foreclosure prevention plan have already fallen behind on their new mortgage payments, according to government data that raise new questions about the program's effectiveness. The delinquency figures reflect the latest troubles of the program, known as Making Home Affordable. Treasury Department officials this week announced a campaign to put new pressure on lenders to do more to move struggling homeowners into loans with easier terms.
BUSINESS
October 2, 2013 | By E. Scott Reckard and Andrew Tangel
Wells Fargo & Co. subjects borrowers seeking mortgage modifications to "Kafkaesque delays and obstructions," in violation of last year's $25-billion national mortgage settlement, New York Atty. Gen Eric Schneiderman said in a federal lawsuit. The suit, filed Wednesday, asks the federal court in Washington to force the bank to comply with the landmark agreement. It alleges that the bank on at least 210 occasions violated timelines imposed by the settlement. At a news conference at his Manhattan offices, Schneiderman mocked a Wells Fargo letter to a homeowner.
BUSINESS
November 26, 2009 | By Dina ElBoghdady
Fannie Mae, the giant mortgage finance company that helps shape lending guidelines, plans next month to raise minimum credit score requirements and limit the amount of overall debt that borrowers can carry relative to their incomes. The changes are the latest in a series of crackdowns by the mortgage industry and could surprise some prospective home buyers. The industry is tightening loose lending standards that led to the mortgage meltdown and the subsequent economic crisis.
BUSINESS
April 10, 2010 | By E. Scott Reckard
The NAACP said it had dropped a lawsuit that accused Wells Fargo & Co. of unfairly steering African American borrowers into costly subprime mortgages while providing loans with lower fees and interest rates to white borrowers in similar financial circumstances. The civil rights group said it withdrew the suit after the bank agreed to work with it to develop programs to improve access to the best loans possible in minority neighborhoods and to ensure that borrowers don't get mortgages destined for failure.
BUSINESS
June 20, 2013 | By E. Scott Reckard, Los Angeles Times
Last year's $25-billion national mortgage settlement required five giant banks to assign a single employee to each borrower seeking a loan modification - a personal guide who could cut through the bureaucracy. The so-called single-point-of-contact rule sought to address the biggest complaint of borrowers trying to save their homes: Getting bounced around among random employees with conflicting answers. Great idea. Too bad it hasn't worked much. According to a report this week from the settlement's official monitor, Joseph A. Smith Jr., a third of the 60,000 serious complaints about the banks' handling of distressed loans from last October through March involved single points of contact.
BUSINESS
August 23, 2013 | E. Scott Reckard
Six years after the mortgage meltdown, delinquencies and foreclosures are way down. Millions of borrowers have cut their housing costs by refinancing at the lowest interest rates ever recorded. That's great for borrowers and bank balance sheets, but bad for bank workers -- who are now being laid off by the thousands. Their services are no longer needed to handle troubled borrowers or the boom in refinancing sparked by historically low interest rates. The latest announcement came this week from No. 1 mortgage lender Wells Fargo & Co., which said it would eliminate the jobs of 2,300 workers who had processed refinance applications -- about 3% of the 70,000 employees in its consumer lending group.
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