Cuyahoga County Forclosure Prevention Program
Cuyahoga County is trying to educate the public. Very interesting web site. At least they are trying to be proactive with their foreclosure problem. Thumbs up to them!
Monday, March 26, 2007
Thursday, March 22, 2007
Congress told of cities devastated by lenders
From The Cleveland Plain Dealer
Thursday, March 22, 2007
Sabrina Eaton
Plain Dealer Bureau
Washington - Predatory mortgage lenders and payday loan shops are turning inner-city neighborhoods all over the nation into ghost towns and must be reined in by the federal government, a panel of urban experts told a House subcommittee on Wednesday.
Defaults on mortgages given to financially strapped homeowners at high interest rates have pushed neighborhoods in cities like Cleveland past the "tipping point" of urban blight, Cuyahoga County Treasurer James Rokakis told the House Government Oversight subcommittee on domestic policy.
"The damage has been enormous, but sadly, the news of the past few months convinces me that the worst is yet to come," Rokakis said, attributing high foreclosure rates in Cleveland to "unbridled greed" by unregulated mortgage brokers.
Whole Article
What will the Feds do now?!?!?!
Thursday, March 22, 2007
Sabrina Eaton
Plain Dealer Bureau
Washington - Predatory mortgage lenders and payday loan shops are turning inner-city neighborhoods all over the nation into ghost towns and must be reined in by the federal government, a panel of urban experts told a House subcommittee on Wednesday.
Defaults on mortgages given to financially strapped homeowners at high interest rates have pushed neighborhoods in cities like Cleveland past the "tipping point" of urban blight, Cuyahoga County Treasurer James Rokakis told the House Government Oversight subcommittee on domestic policy.
"The damage has been enormous, but sadly, the news of the past few months convinces me that the worst is yet to come," Rokakis said, attributing high foreclosure rates in Cleveland to "unbridled greed" by unregulated mortgage brokers.
Whole Article
What will the Feds do now?!?!?!
Friday, March 16, 2007
New Century may be shut down in Ohio
State attorney general gets temporary restraining order against the troubled mortgage lender, claiming 'predatory' lending practices.
March 15 2007: 6:59 PM EDT
NEW YORK (Reuters) -- Ohio's attorney general joined officials from other states, barring troubled subprime mortgage lender New Century Financial Corp. from operating in the state.
On Attorney General Marc Danny's request, an Ohio judge late Wednesday issued a temporary restraining order prohibiting New Century (up $0.68 to $1.35, Charts) from soliciting consumers for broker services or mortgage loans, accepting loan applications and fees to process loans, initiating new foreclosures and pursuing pending ones and evicting consumers.
This is a little scaring!!!!!
March 15 2007: 6:59 PM EDT
NEW YORK (Reuters) -- Ohio's attorney general joined officials from other states, barring troubled subprime mortgage lender New Century Financial Corp. from operating in the state.
On Attorney General Marc Danny's request, an Ohio judge late Wednesday issued a temporary restraining order prohibiting New Century (up $0.68 to $1.35, Charts) from soliciting consumers for broker services or mortgage loans, accepting loan applications and fees to process loans, initiating new foreclosures and pursuing pending ones and evicting consumers.
This is a little scaring!!!!!
Saturday, March 10, 2007
Proposed Statement on Subprime Mortgage Lending
Contributors
Department of the Treasury
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Department of the Treasury
National Credit Union Administration
The main text is on page 6 through 11.
Department of the Treasury
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Department of the Treasury
National Credit Union Administration
The main text is on page 6 through 11.
Tuesday, March 6, 2007
Thursday, February 22, 2007
When is an application an application?
According to the Real Estate Settlement Procedures Act
§ 3500.2 Definitions. (a) Statutory terms. All terms defined in RESPA (12 U.S.C. 2602) are used in accordance with their statutory meaning unless otherwise defined in paragraph (b) of this section or elsewhere in this part. (b) Other terms. As used in this part: {{6-30-05 p.6992}}
Application means the submission of a borrower's financial information in anticipation of a credit decision, whether written or computer-generated, relating to a federally related mortgage loan. If the submission does not state or identify a specific property, the submission is an application for a prequalification and not an application for a federally related mortgage loan under this part. The subsequent addition of an identified property to the submission converts the submission to an application for a federally related mortgage loan.
According to the Equal Credit Opportunity Act (Reg. B)
202.2
(f) Application means an oral or written request for an extension of credit that is made in accordance with procedures used by a creditor for the type of credit requested. The term application does not include the use of an account or line of credit to obtain an amount of credit that is within a previously established credit limit. A completed application means an application in connection with which a creditor has received all the information that the creditor regularly obtains and considers in evaluating applications for the amount and type of credit requested (including, but not limited to, credit reports, any additional information requested from the applicant, and any approvals or reports by governmental agencies or other persons that are necessary to guarantee, insure, or provide security for the credit or collateral). The creditor shall exercise reasonable diligence in obtaining such information.
According to Home Mortgage Disclosure (Reg C)
§ 203.2 Definitions. In this regulation: (a) Act means the Home Mortgage Disclosure Act ("HMDA") (12 U.S.C. 2801 et seq.), as amended.
(b) Application.
(1) In general. Application means an oral or written request for a home purchase loan, a home improvement loan, or a refinancing that is made in accordance with procedures used by a financial institution for the type of credit requested.
(2) Preapproval programs. A request for preapproval for a home purchase loan is an application under paragraph (b)(1) of this section if the request is reviewed under a program in which the financial institution, after a comprehensive analysis of the creditworthiness of {10-29-04 p.7272} the applicant, issues a written commitment to the applicant valid for a designated period of time to extend a home purchase loan up to a specified amount. The written commitment may not be subject to conditions other than:
(i) Conditions that require the identification of a suitable property;
(ii) Conditions that require that no material change has occurred in the applicant's financial condition or creditworthiness prior to closing; and
(iii) Limited conditions that are not related to the financial condition or creditworthiness of the applicant that the lender ordinarily attaches to a traditional home mortgage application (such as certification of a clear termite inspection).
According to U.S. Department of Housing and Urban Developement
Application: the first step in the official loan approval process; this form is used to record important information about the potential borrower necessary to the underwriting process.
FDIC has a booklet "Mortgage Loan Prequalifications: Applications or Not"
A Guide For Complying With Regulations B and C
So which one do we use? Your comments are welcome.
§ 3500.2 Definitions. (a) Statutory terms. All terms defined in RESPA (12 U.S.C. 2602) are used in accordance with their statutory meaning unless otherwise defined in paragraph (b) of this section or elsewhere in this part. (b) Other terms. As used in this part: {{6-30-05 p.6992}}
Application means the submission of a borrower's financial information in anticipation of a credit decision, whether written or computer-generated, relating to a federally related mortgage loan. If the submission does not state or identify a specific property, the submission is an application for a prequalification and not an application for a federally related mortgage loan under this part. The subsequent addition of an identified property to the submission converts the submission to an application for a federally related mortgage loan.
According to the Equal Credit Opportunity Act (Reg. B)
202.2
(f) Application means an oral or written request for an extension of credit that is made in accordance with procedures used by a creditor for the type of credit requested. The term application does not include the use of an account or line of credit to obtain an amount of credit that is within a previously established credit limit. A completed application means an application in connection with which a creditor has received all the information that the creditor regularly obtains and considers in evaluating applications for the amount and type of credit requested (including, but not limited to, credit reports, any additional information requested from the applicant, and any approvals or reports by governmental agencies or other persons that are necessary to guarantee, insure, or provide security for the credit or collateral). The creditor shall exercise reasonable diligence in obtaining such information.
According to Home Mortgage Disclosure (Reg C)
§ 203.2 Definitions. In this regulation: (a) Act means the Home Mortgage Disclosure Act ("HMDA") (12 U.S.C. 2801 et seq.), as amended.
(b) Application.
(1) In general. Application means an oral or written request for a home purchase loan, a home improvement loan, or a refinancing that is made in accordance with procedures used by a financial institution for the type of credit requested.
(2) Preapproval programs. A request for preapproval for a home purchase loan is an application under paragraph (b)(1) of this section if the request is reviewed under a program in which the financial institution, after a comprehensive analysis of the creditworthiness of {10-29-04 p.7272} the applicant, issues a written commitment to the applicant valid for a designated period of time to extend a home purchase loan up to a specified amount. The written commitment may not be subject to conditions other than:
(i) Conditions that require the identification of a suitable property;
(ii) Conditions that require that no material change has occurred in the applicant's financial condition or creditworthiness prior to closing; and
(iii) Limited conditions that are not related to the financial condition or creditworthiness of the applicant that the lender ordinarily attaches to a traditional home mortgage application (such as certification of a clear termite inspection).
According to U.S. Department of Housing and Urban Developement
Application: the first step in the official loan approval process; this form is used to record important information about the potential borrower necessary to the underwriting process.
FDIC has a booklet "Mortgage Loan Prequalifications: Applications or Not"
A Guide For Complying With Regulations B and C
So which one do we use? Your comments are welcome.
Tuesday, February 13, 2007
This is what mortgage lenders are up against
"The way lenders got (home buyers) in the beginning was to give them this easy-street financing that just goes berserk when the rates explode," Suzanne Gravette Acker, of the Coalition on Homelessness and Housing in Ohio told the Dayton Daily News in late January. "Lots of people this year are going to find their mortgage doubles or even triples."
Quote from the Dayton Daily News, Tuesday, February 23, 2007 article link on the left.
"Ohio 7th, Dayton area 51st for January foreclosures" written by Lisa Bernard
February 22, 2007
"Cordray said there are three main factors for the upsurge in foreclosures around Ohio.One cause is the slow growth in the Ohio economy and job losses, he said.
A second key reason, according to Cordray, is that there's never been any real regulation of the mortgage lending industry in Ohio.
And a third factor is an increase in the complexity of some mortgage products, leading to a greater need for personal finance education, said the state treasurer.
As for regulation of the mortgage lending industry, Ohio legislators passed Senate Bill 185 last summer, taking effect New Year's Day.According to Cordray, the new law will tighten up a number of practices in the state and prevent some of "the very aggressive sub-prime lending" that got people into houses but on a short-term basis, with balloon payments and other things that weren't going to last for people."
Quote from Wilmington News Journal Tuesday February20, 2007 "Treasurer talks foreclosures Numbers high for Clinton County" Gary Huffenberger Staff Writer Article link on the left
Quote from the Dayton Daily News, Tuesday, February 23, 2007 article link on the left.
"Ohio 7th, Dayton area 51st for January foreclosures" written by Lisa Bernard
February 22, 2007
"Cordray said there are three main factors for the upsurge in foreclosures around Ohio.One cause is the slow growth in the Ohio economy and job losses, he said.
A second key reason, according to Cordray, is that there's never been any real regulation of the mortgage lending industry in Ohio.
And a third factor is an increase in the complexity of some mortgage products, leading to a greater need for personal finance education, said the state treasurer.
As for regulation of the mortgage lending industry, Ohio legislators passed Senate Bill 185 last summer, taking effect New Year's Day.According to Cordray, the new law will tighten up a number of practices in the state and prevent some of "the very aggressive sub-prime lending" that got people into houses but on a short-term basis, with balloon payments and other things that weren't going to last for people."
Quote from Wilmington News Journal Tuesday February20, 2007 "Treasurer talks foreclosures Numbers high for Clinton County" Gary Huffenberger Staff Writer Article link on the left
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