No help for 70% of subprime borrowers
Seven out of 10 seriously delinquent subprime mortgage borrowers are still not getting the help they need to keep their homes, according to a report released Tuesday by state officials working to stem the foreclosure crisis...More than 1 million of those loans, or nearly 25% of the total, were delinquent as of Jan. 31. And foreclosure proceedings have begun on 300,000 of them - an 8% increase since October.

Spending public money to shore up real estate prices won't make housing more affordable
The Senate bill hashed out Wednesday, in rare bipartisan haste, typifies Black's frustration. In its current form, the bill would provide $10 billion in tax-exempt bonds to local governments and housing agencies so that they can refinance sub-prime loans. In other words, public dollars would be used to reduce the amount of money troubled borrowers owe on their mortgages.

Associated Press Reports: Feds investigating Countrywide lender
Federal authorities are investigating Countrywide Financial Corp. for securities fraud, according to media reports. The FBI is in the early stages of an inquiry into whether officials misrepresented the company's financial position and the quality of its mortgage loans, the Wall Street Journal first reported on Saturday, citing law enforcement officials and finance executives. The Justice Department is also involved in the investigation into the nation's largest mortgage lender, said the New York Times, which also cited anonymous sources who said they were not authorized to discuss ongoing criminal matters.

Illinois Subpoenas Countrywide, Wells Fargo
Attorney General Lisa Madigan has issued subpoenas to Countrywide Home Loans, Inc., and Wells Fargo Financial Illinois, Inc., to determine whether the lenders unfairly steered African American and Latino borrowers into higher cost home loans in violation of fair lending and civil rights laws. The study also found marked disparities in loan pricing between white and non-white borrowers, with African American borrowers three times as likely as white borrowers to receive a high-cost home loan and Latino borrowers twice as likely...According to the Chicago Reporter study, the wealthiest African American homeowners are still more likely than the poorest white borrowers to get placed in high-cost loans.

Fannie, Freddie agree to new appraisal standards
The two largest sources of U.S. mortgage financing agreed on Monday to sponsor a new home appraisal watchdog to prevent inflated home values...Since Wall Street gladly bought and bundled home loans for investors during the housing boom, lenders may have felt more comfortable inflating loan amounts. Cuomo filed subpoenas against Fannie Mae and Freddie Mac to determine whether the companies stood by as that happened.

Fraud compounds woes of housing crisis
As the U.S. housing meltdown forces hundreds of thousands of Americans from their homes, the extent to which fraud was a factor in the crisis is just coming to light. Products such as stated-income loans -- known as "liar loans" because no proof of income was needed -- led to widespread misrepresentation by borrowers about their earnings. But far more sinister forms of fraud, including identity theft and "straw buyers" -- those created using fake documents -- are also coming into the open.

Freddie Mac lifts lid on reinsurance arrangements
A seemingly arcane policy change by mortgage investor Freddie Mac sheds new light on issues of much broader concern for consumers: Do you really understand where the money is flowing -- all the nooks and crannies -- when you take out a mortgage and pay thousands of dollars in fees at settlement?  Is anyone required to explain to you what's really going on inside your home loan -- how it works and whether it could morph into something very different? Freddie Mac's policy change announced Feb. 14 affected a dark corner of the mortgage business -- splits of mortgage insurance premiums between lenders and insurers. What? My lender is getting a cut of the premium, you ask -- just as builders and realty brokers are pocketing chunks of my title insurance premiums behind my back?  See Related Article:Six Builders to Pay $1.4 Million in HUD Settlement

HUD Secretary Henry Cisneros Modifications to Deregulate Lending in '93 and '94
"Henry Cisneros on the hot seat”...he blamed the national housing and mortgage crisis on a variety of villains...The trouble is Cisneros failed to include his own name as one of the masterminds of predatory lending practices under his direction at HUD.  A predatory lending scheme that many experts predict could eventually lead to the worst recession to hit this county, and possibly the entire financial world...which ultimately compensated him generously... after leaving HUD Cisneros became a KB Home board member as well as a Countrywide board member.  He created American City Vista, an affordable housing joint venture with KB Home, as KB Home began construction on the disastrous Mirasol project that cost taxpayers millions, of which $5M is still missing. See Express-News article: Henry Cisneros on the hot seat  Plus Related articles...HUD's Broken System

EXPRESS-NEWS: Henry Cisneros on the hot seat
When Henry Cisneros joined the board of directors of Countrywide Financial Corp. in 2001, the real estate industry was poised for a spectacular ride... Cisneros' financial fortunes would soar, too. He was granted — and sold — more than $5 million in company stock as prices climbed from around $10 per share in 2001 to more than $40 per share in late 2006 and early 2007... Yet Countrywide's business began unraveling during the watch of Cisneros and his fellow directors. While the company's executives are considered primarily responsible, the case of Countrywide illustrates how quickly a director can find himself accused of having divided loyalties and poorly representing shareholders' interests...  He resigned from the board in October,... just days before Countrywide reported a $1.2 billion quarterly loss. Talk Back: How much do you think Henry Cisneros is responsible for the plight of Countrywide Financial, its shareholders and its customers?  Plus Related articles...HUD's Broken System

Home Builders Halt Campaign Funds After Setback
The National Association of Home Builders, one of the top 10 corporate donors to politicians, has stopped contributing to congressional candidates after it failed to get what it wanted in recent anti-recession legislation. "Lobbies like to pretend that congressional action and their donations aren't tied, " said Melanie Sloan of Citizens for Responsibility and Ethics in Washington. "But the home builders just confirmed that they are." Ethics lawyers routinely warn interest groups to avoid saying or implying that the money they provide to candidates compensates them for taking a position on a particular piece of legislation. Such quid pro quos could be considered illegal gratuities or bribes.  See Reader Comments...