Home › Forums › Financial Markets/Economics › Judge Halts Higher Pa. Mortgage Bills
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Coronita.
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October 11, 2007 at 7:12 AM #10567October 11, 2007 at 7:22 AM #88009
bsrsharma
ParticipantAnother interesting dimension. There were many Truth In Lending Act (TILA) violations in the frenzy days and it will come back to haunt the lenders in the form of invalidated mortgages/rate increases, sticking another fork in MBS market. I think, all MBSs are generally worth little now. Nonconforming / Jumbo mortgages will rapidly become a thing of the past.
October 11, 2007 at 7:22 AM #88013ParticipantAnother interesting dimension. There were many Truth In Lending Act (TILA) violations in the frenzy days and it will come back to haunt the lenders in the form of invalidated mortgages/rate increases, sticking another fork in MBS market. I think, all MBSs are generally worth little now. Nonconforming / Jumbo mortgages will rapidly become a thing of the past.
October 11, 2007 at 10:48 AM #88070SD Realtor
ParticipantFLU this is an interesting article. I don’t really understand what is going on here. Someone please correct me if I am wrong… Here is a quote from the article…
“OPFM owner Wesley A. Snyder told customers that they would be responsible for significantly larger mortgages the company had brokered through its mortgage lending partners.”
To me that statement seems a bit different then the standard bonehead 5/1 or 3/1 ARMs. To me it seems like these guys originated mortgages and then resold them at HIGHER rates! Like BSR said that is crazy crazy crazy stuff and I think it is fair for a judge to stop that silliness. What would be interesting would be to read the original loan docs of one of these loans to see if there was some clause in there about the ability of the loan to be modified.
However if this is just a case of loan reset then IMO it is improper for the judge to do what he did.
SD Realtor
October 11, 2007 at 10:48 AM #88075ParticipantFLU this is an interesting article. I don’t really understand what is going on here. Someone please correct me if I am wrong… Here is a quote from the article…
“OPFM owner Wesley A. Snyder told customers that they would be responsible for significantly larger mortgages the company had brokered through its mortgage lending partners.”
To me that statement seems a bit different then the standard bonehead 5/1 or 3/1 ARMs. To me it seems like these guys originated mortgages and then resold them at HIGHER rates! Like BSR said that is crazy crazy crazy stuff and I think it is fair for a judge to stop that silliness. What would be interesting would be to read the original loan docs of one of these loans to see if there was some clause in there about the ability of the loan to be modified.
However if this is just a case of loan reset then IMO it is improper for the judge to do what he did.
SD Realtor
October 11, 2007 at 7:09 PM #88250Wickedheart
ParticipantI don’t understand it either. The article seems to be missing key information.
What caught my eye was this though;
“Sprecher’s order came in a lawsuit filed by O’Keefe & Sher seeking to invalidate mortgages taken out without the approval of customers, some of whom have received foreclosure notices.”
“As far as we’re concerned, those are illegal mortgages,” attorney Frank Farina said.”
What I want to know is, how can you take out a mortgage without the customers approval? I sure hope that would be illegal.
October 11, 2007 at 7:09 PM #88255ParticipantI don’t understand it either. The article seems to be missing key information.
What caught my eye was this though;
“Sprecher’s order came in a lawsuit filed by O’Keefe & Sher seeking to invalidate mortgages taken out without the approval of customers, some of whom have received foreclosure notices.”
“As far as we’re concerned, those are illegal mortgages,” attorney Frank Farina said.”
What I want to know is, how can you take out a mortgage without the customers approval? I sure hope that would be illegal.
October 12, 2007 at 6:44 AM #88347CoronitaParticipantSD R,
When I posted this, I was trying to figure out who really was at fault. It didn't sound like the traditional ARM reset. I meant to ask if anyone was knowledgeable about this event.
Anyway, I'll dig around to see what gives. Really weird though.
October 12, 2007 at 6:44 AM #88353CoronitaParticipantSD R,
When I posted this, I was trying to figure out who really was at fault. It didn't sound like the traditional ARM reset. I meant to ask if anyone was knowledgeable about this event.
Anyway, I'll dig around to see what gives. Really weird though.
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