By J. Guggenheim/Lendinglies staff

Fannie Mae and Freddie Mac have separately announced sales of non-performing loans this week.   Offsetting these toxic mortgage securities target smaller investors, including nonprofits and minority- or women-owned businesses who can’t afford to take the hit when they realize they bought defective repackaged securities the big lenders now avoid.

In 2017, through both Fannie Mae and Freddie Mac, the Treasury guaranteed 70% of all new mortgage lending. The taxpayer’s total exposure to housing is unfathomable, at over $6trn, or 30% of GDP, but it is hidden off the government’s balance-sheet. Reform is long overdue but until then- keep repackaging defective merchandise and selling it off to the highest bidder.

By J. Guggenheim

Servicers don’t want to modify.  They don’t want to short-sale, and they don’t want to allow you to refinance. In fact, the sole objective is to use whatever means are necessary to take one missed payment and leverage it into a future default while piling on the penalties and fees to erode all of your equity.  The service wants your house and they will lie, steal, forge and fabricate documents if required.

We have a client at Lendinglies who received a loan modification in 2010 and completed all three payments as agreed by the repayment plan offered by CitiMortgage. According to CitiMortgage, the agreement was done “in-house” and required no outside approval.

After receiving the modification the couple proceeded to renovate the entire home while complying with the monthly payments.  Once they had fully restored their home and made their last payment, they let friends know they…

It’s about time…

The Federal Reserve on Friday ordered Wells Fargo & Co. to replace four of its board members and face restrictions on its asset growth.

The Fed’s order limits growth in the firm’s total consolidated assets beyond levels reported at the end of 2017, unless it receives prior approval from the regulator.

The bank will also replace three current board members by April and a fourth by the end of 2018, the Fed said in a press release.

“We cannot tolerate pervasive and persistent misconduct at any bank and the consumers harmed by Wells Fargo expect that robust and comprehensive reforms will be put in place to make certain that the abuses do not occur again,” Fed Chairwoman Janet Yellen said in a statement about what will likely be her last major act in charge of the Fed’s governing board. “The enforcement action we are taking today will…