BofA, Wells Fargo Sued For Mortgage Settlement Violation

NEW YORK (CNNMoney)

New York has announced plans to sue Bank of America and Wells Fargo over their alleged failure to comply with last year's National Mortgage Settlement.

In February 2012, federal officials and attorneys general from 49 states announced a $25 billion settlement with five of the nation's largest banks over robo-signing and other wrongful foreclosure practices. As part of the agreement, the banks agreed to reform their business practices related to loan servicing and foreclosures.

 

New York Attorney General Eric Schneiderman alleged Monday that Bank of America and Wells Fargo have repeatedly violated this agreement, claiming to have documented 339 cases involving various homeowners. His planned lawsuits mark the first legal actions from federal or state officials over banks' alleged non-compliance with the settlement.

"The five mortgage services that signed the National Mortgage Settlement are legally required to take specific, rigorous and enforceable steps to protect homeowners," Schneiderman said in a statement. "Wells Fargo and Bank of America have flagrantly violated those obligations, putting hundreds of homeowners across New York at greater risk of foreclosure."

Bank of America (BAC, Fortune 500) said in a statement that it had "provided relief for more than 10,000 New York homeowners through the National Mortgage Settlement, totaling more than $1 billion."

"Attorney General Schneiderman has referenced 129 customer servicing problems which we take seriously and will work quickly to address," the bank said.

Wells Fargo (WFC, Fortune 500) declined to comment
Under last year's settlement, the five banks -- BofA, Wells Fargo, JPMorgan (JPM, Fortune 500), Citi (C, Fortune 500) and Ally -- agreed to pay $5 billion to the states and the federal government, with the rest coming in the form of non-cash relief for homeowners like refinancing and principal reduction.

The banks also agreed to implement a package of standards for the handling of homeowners seeking loan modifications.

Schneiderman said BofA and Wells Fargo violated the standards by not acknowledging modification applications within the specified time frame, failing to notify borrowers about deficiencies in their applications in timely fashion, not giving borrowers the allotted 30 days to correct their applications, and failing to make decisions about modifications within 30 days.

"Violations of the time line standards increase the likelihood that distressed homeowners will lose their homes," the statement from Schneiderman said. "Additional fees, penalties and interest accrue during periods of delay, making a modification more difficult and pushing homeowners closer to the brink of foreclosure."

EXTRA TIP: With  traditional sellers holding on to their properties and timing the market, waiting for prices to go up why not go after the sellers that HAVE to sell to help get inventories up? There are still people in need of a short sale.

REALTORS, what is in your business plan this year? What are you doing to create a system that will allow you to build your short sale business? How often are you out there prospecting and how do you know if you are taking the listings that are going to be successful and not a waste of your time?

Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.

LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS 

At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...

Sentiment shift: Home prices to rise

NEW YORK (CNN Money)




The majority of Americans now are forecasting home prices to rise, and only about a third are expecting prices to fall, a reversal in attitudes of a year ago.

A monthly survey by mortgage finance firm Fannie Mae found 51% of those questioned in April believe prices will rise in the next 12 months, while only 35% are projecting a drop in prices. It is the first time in the three-year history of the survey that a majority said they expect prices to increase.

A year ago, 49% were expecting further price declines while only 32% said they though prices were on their way up.

The latest data from the housing market back up the this new level of confidence in the housing recovery. The S&P Case-Shiller Home Price Index rose 9.3% over the last 12 months, the biggest annual rise in home prices since the height of the housing bubble in 2006.

"Crossing the 50% threshold marks a significant milestone, as most Americans believe a housing recovery is truly occurring throughout the country," said Doug Duncan, chief economist for Fannie Mae.
People who were sitting on the sidelines because of concerns that prices were still falling can be drawn back into the market once they believe prices are on their way up again. Home sales are up 10% from a year ago, helped not only by the climbing prices but also record low mortgage rates and falling unemployment.

The survey found that those expecting prices to go up are forecasting a 7.2% rise, on average. It also found 71% think it is a good time to buy a home, relatively unchanged from a year ago, but the percentage who think it's a good time to sell has doubled over the last year to 30%.

The increase in those thinking positively about selling is also important for the market, as a tight supply of homes for sale has been one of the drags on the market.
The survey is based on the responses of 1,001 respondents, ages 18 and older.




LOTUS REALTY GROUP



PROFESSIONAL SHORT SALE NEGOTIATORS , TRADITIONAL SALES, FIRST TIME HOME BUYERS, INVESTORS,REOS



At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are.....



REALTORS, what is in your business plan this year? What are you doing to create a system that will allow you to build your short sale business? How often are you out there prospecting and how do you know if you are taking the listings that are going to be successful and not a waste of your time?




Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.

National Mortgage Forgiveness Plan

Dear Home Owner,

Lotus Realty Group, a Real Estate Company who has helped hundreds of homeowners avoid foreclosure by negotiating a short sale on their behalf,  has partnered with NMFP to further reach out to homeowners who are experiencing a hardship and can no longer continue to pay their mortgage. There are still homeowners who have fallen on hard times. There is help available and now incentives for homeowners to short sale rather than just walk away or do nothing.

Our goal is to find out what's most important to you and help you achieve that goal. There are many options for someone in this position and we would like to help you find the right one that fits your circumstances. In addition, the  Mortgage Debt Relief Act that grants tax relief on the forgiven debt in a short sale expires at the end of this year. We would like you to have the opportunity to take advantage of the full benefits that are currently being offered to someone in your position. If you wait until the last minute there may not be enough time. Please click on our website below. There is great information to assist you. If you are already behind on your payments, don't wait. Call today. It doesn't cost you anything for a consultation, Neither does it cost you anything for a short sale if we decide that is your best option.


http://californiaassistanceplan.mortgageforgivenessplan.com/


Kindest regards
Cari Drolet-Founder/CEO
Lotus Realty Group
Office: 858-764-7300
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