Banks Face Allegations in Mortgage Crisis and Innovative Ways Come Forth for Mortgage Affordability

Dec. 1, 2011 - PRLog -- Today is one of my favorite days of the year: Election Day.  I wear my “I Voted” sticker proudly as I write this month’s update.  And truly, I’m proud of our representative democracy.  As we see many cities across our country still “occupied” by the Occupy Wall Street Movement, I think it’s important to focus on those individuals and entities within the system that are making a difference.  

While the protestors may be “high” on criticism of banks, their efficacy--and constructive plans for an alternative system--are lacking.  That’s not the case with elected representatives like our California Attorney General, Kamala Harris.  In his Los Angeles Times article “Banks, Regulators Start Massive Review of Foreclosures,” Alejandro Lazo writes that “more than 4 million borrowers could be eligible” for financial remuneration for having been improperly foreclosed upon by “the 14 largest mortgage servicers.”  One of the people leading this charge is Harris herself.

Our elected leaders are finally attacking some of the major perpetrators of the mortgage crisis: banks.  While there is plenty of blame to go around, the Federal Housing Finance Agency (FHFA) which serves as conservator for Fannie Mae and Freddie Mac has filed lawsuits “against 17 financial institutions. . . alleging violations of federal securities laws,” reports the California Association of Realtors.  These lawsuits are aimed at the banks that packaged, securitized and leveraged mortgage backed securities: some of the key drivers that led to the housing crash.  Defendants include such stalwarts as JPMorgan Chase, Bank of America, HSBC and Goldman Sachs.  These once admired companies now must face the fall-out from their actions.  

Our system of government has it flaws, yet we need to celebrate individuals and agencies that stand up for “We the People.”  Consider the decisions you make in light of the ethics of the companies with which you may do business.  And if you feel you were improperly foreclosed upon, please visit IndependentForeclosureReview.com or call 888-952-9105.  Of course, you can always use CPK Mortgage as a resource, too.

Also, Senator Johnny Isakson and Representative Tom Graves, both from Georgia, have introduced a bill that would “allow owners to pull out up to $50,000. . . to pay down delinquent mortgages,” reports Kenneth V. Harney in his Los Angeles Times article, “Bill Would Remove Penalty for Tapping 401(k) to Avoid Foreclosure.”  While the legislation would still require an individual to pay taxes on the withdrawal, the normal penalty would be removed for the early withdrawal.  Contact us for more information.