Pomona, CA Council Approves Deal W/Eminent Domain Firm
A company that has made waves in the mortgage bond world over a controversial plan to use the power of eminent domain to seize securitized non-agency mortgages has landed an agreement with a California town.
The Pomona City Council approved on May 6 an agreement with Mortgage Resolution Partners to advise the city on how to deal with negative-equity mortgages.
San Francisco-based Mortgage Resolution Partners has caused a stir among investors of private-label residential mortgage-backed securities because of its proposal for governments to seize negative-equity loans backing the securities through the eminent domain process, force a write down and collect a fee for each loan that obtains a principal reduction.
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Obama Nominee Has Ties to Failed Bank
President Obama's choice for commerce secretary might face some resistance in her confirmation process as a result of her role two decades ago as chairman of a bank that subsequently failed under the weight of subprime lending.
CBO Sees Principal Reduction Saving Billions
A government study has found that billions of dollars could be saved by providing principal forgiveness on loans owned or guaranteed by the Federal National Mortgage Association and the Federal Home Loan Corp.
Principal Reduction Ahead for Agencies?
A member of the House of Representatives has been nominated to take over the regulator that oversees the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. If the nominee makes it through the confirmation process, negative-equity borrowers on agency home loans could see principal reduction.
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HUD Restructuring Multifamily Business
Hundreds of government employees are impacted by a restructuring at the Department of Housing and Urban Development. The move, made in response to sequestration, affects multifamily positions.
HUD Chief Says HECMs Hurt FHA's Finances
The Mutual Mortgage Insurance Fund, which could require a nearly $1 billion bailout, would be in much better shape if it weren't for home-equity conversion mortgages, according to the head of the Department of Housing and Urban Development.
HUD Seeks Increased Spending
In its fiscal-year 2014 budget, the Department of Housing and Urban Development is looking to increase spending by 10 percent. HUD also outlined statistics for government-insured mortgages.
USDA Rural Definition Briefly Extended
Communities that have outgrown the population limits for government-financing on rural properties will have a short reprieve from new requirements that will be based on more recent Census data thanks to an act of Congress.
Florida Town Hopes to Pick Up Hundreds of Jobs
Officials in Seminole County, Fla., are considering a proposal for a developer of mortgage risk analysis software to bring hundreds of jobs to a new center there.
The FHA Report
Vested parties have recently swarmed interested entities with opinions related to recent Federal Housing Administration activity. FHA policies and updates centered around its financial health and boundaries of its protective borrower reach, while a handful of new private mortgage industry services have been unveiled.
