home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Political Mortgage News | Mortgage Laws
Mortgage people in politics. Political contributions by mortgage companies. Coverage of political support by lenders and executives. GSE lobbying and issues.



Bailout Legislation Bogged Down

House Democrats issue draft

September 24, 2008

By MortgageDaily.com staff


House Democrats have drafted their own mortgage bailout plan that calls for more oversight of the Treasury in its purchase of mortgage assets. As Congress grapples with the legislation, Republican presidential nominee John McCain is suspending his campaign to return to Washington, D.C., to deal with the crisis.

The Emergency Economic Stabilization and Corporate Accountability Act would require that the Treasury disclose purchases made under the bill within 48 hours, though real-time disclosures are recommended. The agency would be required to report to Congress within 60 days of its first acquisition and every 90 days thereafter.

"The draft includes intensive GAO oversight of the program including comprehensive audits and constant on-site monitoring of acquisitions, financials, and fulfillment of financial stability, foreclosure prevention and other goals," the draft says.

The Treasury's request to be shielded from review of its purchases has been scratched, and the latest draft calls for judicial courts to be able to review the program. But a court could not grant injunctions or relief.

The Treasury would be required to broadly solicit proposals for any contracted work and publish requests from potential vendors, according to the draft. Bidding firms would be required to disclose conflicts-of-interest, acknowledge a fiduciary duty and restrict information sharing where conflicts exist. Broad carve-outs requested by the Treasury have been eliminated.

The Federal Deposit Insurance Corporation would be considered an asset manager for whole loans.

The draft also requires that warrants, or similar assets, be obtained from companies that sell directly to the Treasury. An institution's financial strength must be considered -- as the program should not be used for companies that are destined to fail anyway.

The draft also calls for help to delinquent borrowers on loans acquired under the plan, including prodding servicers to utilize the Hope for Homeowners Programs or enabling loan modifications. Tenants in properties securing purchased assets would be given the ability to complete their leases if they are current.

Purchases would be limited to financial institutions that are organized, regulated and have significant operations in the United States, though coordination with foreign financial authorities and central banks to establish similar plans would be required.

Executives of institutions that sell loans under the plan would be prohibited from being paid "a perverse incentive for inappropriate or excessive risk-taking." A "claw-back" provision would apply to bonuses and incentive compensation if executives are later found to have provided false or inaccurate information, and golden parachute payments would be prohibited for two years.

Companies that participate in the plan would be required to provide proxy access for shareholders to nominate board members. They would also need to ensure shareholders are given the opportunity to vote on non-binding executive compensation plan and prohibit severance compensation while the government holds warrants.

The draft also includes provisions for mortgage cram downs, which are vehemently opposed by mortgage bankers.

Sen. McCain told reporters this afternoon that he would suspend his campaign to return to Washington and deal with the financial crisis.

Democratic rival Sen. Barack Obama is expected to follow McCain's lead.


SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders