No more paystubs? Mortgage lenders to start relying on Equifax data instead of paystubs and tax returns. What could go wrong?
"Under Fannie Mae's new initiative, mortgage lenders that use The Work Number will not be required to obtain W-2's or pay stubs from applicants. Equifax will independently verify employment and income without the applicant needing to provide additional paperwork in some instances."
Equifax's cooperative relationship with quasi-governmental agency Fannie Mae is leading to 'financial innovations' not seen for a few years. I've got to wonder: if investors later find out their MBS portfolio is full of incorrect income figures, will the investors be able to sue Equifax for its faulty database?
Full Equifax press release here: http://www.prnewswire.com/news-releases/fannie-mae-to-introduce-equifax-trended-data-and-verification-services-to-underwriting-platform-300161869.html
The Pine County District Court recently "found multiple, independently sufficient grounds" as to why a recent JP Morgan Chase's foreclosure was illegal and therefore invalid. For instances, "[T]he Court finds that the January 8, 2014, Help For Homeowners notice did not comply with Minn. Stat. 580.041, subd. 2, and thus, the Sheriff's sale is void." See full opinion here.
Drewes Law assists homeowners in financial disputes with their mortgage lenders/servicers. If you, or someone you know is facing foreclosure, please call a Drewes Law attorney today: 612-285-3051.
The suit claimed that Lund, who was the head of Fannie’s single-family division, helped hide more than $100 billion of subprime exposure from Fannie’s shareholders, allowing it to continue to back more and more risky loans.
The settlement: $10,000. Read more here: http://fortune.com/2015/09/22/fannie-mae-lund/
Congrats Thomas Lund. Millions of people lost billions (in aggregate) on your bad decisions/actions, including more than 4 million people who lost their homes.
Drewes Law helps homeowners facing foreclosure and foreclosure alternatives. If you or someone you care about it facing foreclosure, call a Drewes Law attorney for a free consultation: 612-285-3053.
One way to reduce your mortgage balance is to get your lender to agree to let you sell the property for less than what will yield a full payoff of the mortgage balance (a "short-sale"), and forgive the difference. In order to prevent someone from simply refinancing via this method, a lender will usually require some form of the following terms to be affirmed as part of the transaction:
"Hereby affirm that this is an “Arm’s Length Transaction”, certifying under penalty of perjury that to the best of my knowledge and belief:
Sample Short Sale Affidavit from Central Mortgage.
If you were to sign this form knowing that the information was false, that would likely be bank fraud (https://www.law.cornell.edu/uscode/text/18/1344) punishable by a fine of "not more than $1,000,000 or imprisoned not more than 30 years, or both." Yikes. So despite what your realtor may advise, don't just sign forms at a real estate closing that you know are false. In my opinion, financial problems should not be compounded by criminal problems.
Generally a short-sale is not a means to stay in your home. If you or someone you know is looking for foreclosure alternatives in Minnesota, please call a Drewes Law attorney at 612-285-3053 for support.
This past spring's passage of Minnesota legislation in favor of foreclosing lenders--both reducing transparency and reducing notice requirements during the foreclosure process--really shocked me. Businesses (I believe it to be CitiMortgage's local counsel in this instance) are simply more organized and methodical in pursuing their legal and legislative interests than the population at large.
Harvard Law Professor Larry Lessig (a co-founder of Creative Commons) has an idea on how to try to de-couple politics from special interests on a national scale: use the presidential election as a referendum on "The Citizen Equality Act of 2017."
More here: https://lessigforpresident.com/the-act/
But how could you trust that he will actually resign after the stated goal is accomplished (as opposed to feeling compelled to pursue a new, secondary mandate)? His choice for vice-president would be essentially be an appointment by him of the future president--does that seem democratic? If he picked someone disliked by Congress, would Congress refuse to pass the legislation? Will this candidacy bring about a meaningful conversation?
Drewes Law helps clients in financial disputes, including homeowners in foreclosure fighting to keep their homes and debtors defending against abusive debt collection practices. If you or someone you know is facing a Minnesota foreclosure, please call 612-285-3053 for more information.
A banker, it has been said jestingly, is a man who lends you an umbrella when the weather is good and takes it back when it rains.
The sentiment's origin is uncertain. See: http://quoteinvestigator.com/2011/04/07/banker-umbrella/
From a recent article I was reading:
Access to Legal Services: Salvation Through Innovation
"'We have too many lawyers.' Some have made this argument while pointing to what has been a difficult job market for attorneys, especially recent law school graduates. However, a deeper analysis reveals that the true issue isn’t that there are too many lawyers, but rather that there is a large market of Americans with critical legal needs but unable to afford legal representation. By enhancing efficiency, new legal technology enables attorneys to save time and cut costs, allowing them to service more clients at lower fees while maintaining profitability, and producing the dual benefits of providing more with access to legal services while also creating new job opportunities for lawyers."
I wholeheartedly agree. In the race to efficiency,
You've probably seen this clip from February 2013, but it's still a good one to review. As in the above video, our experience has been that Equifax, Experian and Trans Union seem to often verify clearly erroneous information on a credit report.
If you, or someone you know, if frustrated by a credit bureau's persistent inaccurate reporting, please email or call Drewes Law, PLLC for assistance: firstname.lastname@example.org or 612-285-3051.
Pew provides an interesting perspective of American personal finance by analyzing American debt in its recently released "Complex Story of American Debt." Full report here:
Drewes Law answers consumer questions about debt, mortgages, and credit. Feel free to call or email an attorney at 612-285-3051, or email@example.com.
Simplicity seems to be a new selling point in a financial industry that inundates consumers regularly with "points," "miles," various percentages and what drives it all: hidden fees.
Simple seems to focus on trying to limit banking services so that a consumer doesn't get himself/herself into trouble in the first place. Bankruptcy clients are often asking about when they'll be able to be able to borrow again. Simple's approach seems to remind us that profiteering banks may be part of the drive for people to use debt as a solution to their on-going financial limitations.
Is this the future?
Drewes Law PLLC answers consumer questions about debt, mortgages, and credit. Feel free to contact an attorney at Drewes Law for a free consultation: firstname.lastname@example.org.
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