A bipartisan compromise bill in the U.S. Senate (S.2636), which closely aligns with a similar House bill, would allow bankruptcy courts to modify existing subprime mortgages to help families save their homes from foreclosure. Under the terms of the Foreclosure Prevention Act, a borrower can qualify only if it can be proven that he or [...]
February 2008
Much has been written over the last year about the home loan industry. The newspapers are full of stories about lender bankruptcy and legislation to save homes from foreclosure. However, a new problem is beginning to surface. Clever investment bankers, not limiting themselves to securitization of home loans, have managed to create huge investment pools [...]
Yesterday, I served as a judge in a contest organized by a local paralegal school. The class of prospective paralegals had just completed their 4 week bankruptcy unit and the teacher divided the students into three groups. One group presented a paper and oral explanation about Chapter 7, another about Chapter 13 and a third [...]
The Center for Responsible Lending reported that foreclosures are expected in half of the sub-prime loans that were closed in the last quarter of 2006. Unfortunately, this prediction was actually made by one of the bond rating agencies that rated the investment vehicles used to fund many of these loans. With similar predictions for the [...]
Adjustable rate mortgages are at the heart of the current mortgage crisis in America. And almost everyone who has a recent one wants it converted to a fixed rate loan as soon as possible. With good reason. But are ARMs naturally toxic to consumers? Not necessarily. ARMs are like firearms, they’re tools which can be [...]
The Wall Street Journal editorial page weighed in Tuesday against S. 2636, the Foreclosure Prevention Act of 2008. The credit industry lining up against the bill is expected. And, probably to no one’s surprise, the Journal once again opposes a pro-consumer proposal. You can tell a vote is coming soon — The anti-consumer arguments are [...]
