New York Law Blog

Homeowners With Wells Fargo Mortgages Can Sue Wells Fargo

Wells Fargo Mortgages

Homeowners With Wells Fargo Mortgages Can Sue Wells Fargo If They Were Denied Permanent Loan Modifications

Wells Fargo must face lawsuits by homeowners with Wells Fargo mortgages who claim the largest Wells Fargo refused to offer them permanent mortgage modifications for which they had qualified.

The 9th U.S. Circuit Court of Appeals said Wells Fargo was required under the federal Home Affordable Modification Program to offer homeowners with Wells Fargo mortgages loan modifications who demonstrated their eligibility during a trial period.

Wells Fargo Mortgages

As a result, the Appellate Court reversed the dismissals by a San Francisco federal judge of two lawsuits seeking class-action status. 

A federal appeals court in Chicago also reached a similar conclusion last year. 

Wells Fargo said it had $352 million of loans under HAMP in a trial modification period as of June 30.

Consequently, Wells Fargo tried to spin as Wells Fargo does by saying:

The 9th Circuit did not rule on the merits of the underlying cases. It found only that the district court should consider the arguments put forth by the plaintiffs.

The Obama Administration unveiled in 2009 as a way to keep people in their homes. HAMP pays mortgage lenders and servicers to rewrite loan terms for borrowers who cannot afford their payments.

The program has also spawned other litigation. The 9th Circuit judges also noted it “seems to have created more litigation than it has happy homeowners.”

A Massachusetts lawsuit accused Bank of America of offering employees financial incentives to stall HAMP applications. The lawsuit alleged foreclosures or in-house loan modifications were more profitable for BofA. 

The Massachusetts judge is also is considering making that case a class action.

Phillip Corvello claimed he complied with a written trial period plan for a HAMP modification. 

The court said that to rule in the bank’s favor would render the benefits for borrowers illusory.


FHFA Abandons Plans To Create Alternative Credit Score For GSEs

Credit Score

FHFA Abandons Plans To Create Alternative Credit Score For GSEs. Agency Decides To Right New Credit Score Rules

The Federal Housing Finance Agency is abandoning plans of creating a new credit score for homeowners. Instead, the agency will instead begin creating new regulations for lenders. As a result, they have requested providers of alternative credit scores to submit their proposals. FHFA wants to consider them for use by Fannie Mae and Freddie Mac.

A section of the regulatory reform bill signed by President Trump in May also requires the FHFA to define the criteria Fannie Mae and Freddie Mac will use to validate credit scoring models.

The FHFA had begun evaluating credit score models last year. It also evaluated if the GSEs should be required to switch to the latest scoring model from Fair Isaac Corp.

Fair Isaac introduced their latest credit score model named FICO 9. FHFA is also considering the use of VantageScore’s latest model, 3.0.

The FHFA had given itself a deadline of the end of this year to decide on new scores.

Fannie Mae and Freddie Mac currently use the older FICO 5 model. VantageScore is a joint venture of the credit bureaus Equifax, Experian and TransUnion.

FHFA Director Mel Watt said in a press release:

We have determined that proceeding with efforts to reach a decision based on our Conservatorship Scorecard Initiative process and timetable would be duplicative of the work we are mandated to do under Section 310 of the Act. 

These steps include developing a proposed rule. The FHFA rule is then presented it to the public for comment. The agency would then issue a final rule to govern the verification of credit score models.


Aggressive Hudson Valley Foreclosure Defense

hudson valley foreclosure defense

The Samurai Masters Of Hudson Valley Foreclosure Defense

The Law Office of Steven Stutman has created the most aggressive Hudson Valley foreclosure defense team New York has ever seen! We are the only foreclosure and mortgage experts with the strength to successfully challenge any Wall Street lender in a Hudson Valley courtroom.

Steve Stutman’s Hudson Valley foreclosure defense team has become a lender’s worst nightmare. Why? He has successfully challenged some of the most arrogant foreclosure mill lawyers and Wall Street lenders in New York.

hudson valley foreclosure defense

For nearly 40-years, Steve Stutman has developed a reputation of bringing Wall Street banks to their knees. He has even humiliated bank lawyers and made bank executives sob like babies during depositions. 

Steve Stutman has also helped keep lenders from discriminating against Latin American homeowners and people of African and Caribbean descent. In addition, he has helped keep 9/11 survivors and military combat veterans in their homes. 

Furthermore, The Law Office of Steven Stutman also has access to some of the top forensic accountants and former FBI agents available. He can also call on mortgage compliance experts and collateralized debt experts if needed. 

As a result, this gives Attorney Stutman unparalleled strength to challenge any mortgage lender in any New York courtroom. 

We bring the most assertive Hudson Valley foreclosure defense team to you! Steve Stutman likes to fight the Wall Street banks! He spent nearly forty years in the world of lending and knows the Achille’s heel of all the major lenders. 

Steve Stutman has helped hundreds of people in Hudson Valley successfully stay in their homes. 

Call us at 888.574.7771. You can also check us out on Facebook


Federal Housing Finance Agency Structure Ruled Unconstitutional

Federal Housing Finance Agency

Fifth Circuit COA Ruled Government Regulator Federal Housing Finance Agency Is Unconstitutional

The court also dealt with the question of the agency’s leadership structure. The lawsuit questioned if the FHFA director can wield absolute authority. The Court of Appeals for the Fifth Circuit ruled this week that the Federal Housing Finance Agency is not constitutionally structured.

The Federal Housing Finance Agency or FHFA is the oversight for Fannie Mae and Freddie Mac. The government created the FHFA was in the aftermath of the financial crisis of 2008 as a result of bailing out the GSEs.

Shareholders didn’t like that the Federal Housing Finance Agency modified its conservatorship agreement with Fannie and Freddie. The modification swept all the profits from the GSEs into the government’s coffers.

Fannie Mae and Freddie Mac shareholders sued the government. Shareholders challenged the structure of the FHFA. They also refer to it as the “Third Amendment Sweep.”

Rather the government claimed they amended the terms of the GSEs’ conservatorship to ensure that the government had enough money to bail them out again if necessary.

As a result, a group of Fannie and Freddie shareholders sued the government. They claimed the arrangement was unnecessary. They also argued it was illegal as well.

The COA Agrees With Shareholders. The Federal Housing Finance Agency Leadership Structure Is Unconstitutional

Federal Housing Finance Agency

Federal Housing Finance Agency Director Mel Watt

The Court of Appeals held that the FHFA was not constitutionally structured. Yet, they did rule that the agency was within its statutory authority when it enacted the net worth sweep:

We hold that Congress insulated the FHFA to the point where the Executive Branch cannot control the FHFA or hold it accountable,” the ruling reads. “We reach this conclusion after assessing the combined effect of the: (1) for-cause removal restriction; (2) single-Director leadership structure; (3) lack of a bipartisan leadership composition requirement; (4) funding stream outside the normal appropriations process; and (5) Federal Housing Finance Oversight Board’s purely advisory oversight role.

Therefore, the Court of Appeals ruled the FHFA director should be removable at will. Yet, they left the remainder of the FHFA’s previous actions intact. Thus, the FHFA “survives as a properly supervised executive agency.”

In addition, FHFA said that it will not be commenting on the court’s ruling.

To read the court’s decision in full, click here.


Millennial Homeownership Rate Is Low For 5 Reasons

millennial homeownership

Millennial homeownership is low because millennials are waiting longer than previous generations to own a home.

The low millennial homeownership rate has been the subject of several theories. Low millennial homeownership perplexed the real estate and lending experts for the past few years.

Theories suggest millennial homeownership is low because of high home prices and fear over the last housing crisis.

But now, the Urban Institute released a study that shows the actual data behind these factors.

The millennial homeownership rate was 37% in 2015. Gen Xers and Baby Boomers had a 45% homeownership rate when they were ages 25 to 34.

millennial homeownership

Five Factors That Have Kept Millennial Homeownership Low:

1. Delayed marriage:

Delaying family formation is, in fact, a hindrance to homeownership. Being married increases the probability of owning a home by a full 18%.

2. Greater racial diversity:

White households have the highest homeownership rate by-far, therefore the increasing diversity within the Millennial population also contributes to the lower homeownership rate.  The Millennial homeownership rate would be 2.6% higher If the racial composition remained the same in 2015 as it was in 1990,

3. Increased education debt:

Student debt has been a growing problem, and could even be turning into a crisis. But how much does it affect homeownership rates? The Urban Institute’s data shows a 1% increase in student debt decreases the likelihood of owning a home by 0.15%.

4. Increased rents:

Nationwide, rent just jumped to a new all-time high, surpassing an average $1,400 per month. Data shows that a 1% increase in a household’s rent-to-income ratio decreases the likelihood of homeownership by 0.07%.

5. Delayed childbearing:

Not only are Millennials taking longer to get married, but they are also spending more time before having children. For those who are married, having a child increases the probability of owning a home by 6.2%.

Another important factor to Millennial homeownership includes parental wealth and homeownership status. For any generation, a child’s likelihood of being a homeowner increases by 9% if their parent is a homeowner. Also, a 1% increase in parental wealth increases the child’s likelihood of being a homeowner by 0.016%.

 


New York Lawyers Become Victims In Toner Cartridge Scam

New York Lawyers

New York Lawyers Become Victims In $3.3 Million Toner Cartridge Scam Run By California Man

Mark Timothy Mushkin was busted for operating a toner cartridge scam from 2011 t0 2017. Mushkin allegedly conned over 878 New York lawyers and business owners over a 6 year period into paying him more than $3.3 million.

The enterprising scammer would send out invoices for copier toner that was never ordered or delivered. As a result, the clueless New York lawyers and business owners blindly paid the invoices thinking they were legitimate.

new york lawyers

Mushkin allegedly set up a phony company named IT Tech Products. IT Tech would targeted law firms for Mushkin’s “Sliver Scam”

The idea of the sliver scam is that you can pocket a lot of money by taking just a little bit from many people. Each rip-off is too small to spark law enforcement curiosity, but collectively, the swindles add up to a big pile of money.

The key is to keep it small. Do not get greedy and do not exploit the same sucker again and again.

Read more at MFI-Miami


Aggressive FHA Mortgage Foreclosure Defense That Works!

fha foreclosure defense

The Only FHA Mortgage Foreclosure Defense Team That Commands Results

FHA Mortgages are complex and only someone properly trained in writing them can help you. The Law Offices Of Steven W. Stutsman has created a specialized FHA Mortgage Foreclosure Defense Team. The team’s focus will focus solely on developing strategies to give homeowners an edge in any FHA Mortgage foreclosure! 

We are the only foreclosure and mortgage experts with the resources and knowledge to successfully challenge any FHA Mortgage. 

fha foreclosure defense

Our competitors may show off one or two victories against this lender but they can’t beat our track record. How do we know this? Because we have the 10-year track record to prove it! 

Steve Stutman’s FHA Mortgage Foreclosure Defense Team is an FHA mortgage servicer’s worst nightmareWhy? Steve Stutman has successfully challenged some of their most arrogant foreclosure mill lawyers.

As a result, the Law Offices of Steven Stutman has developed a reputation for bringing this lender to their knees. He has even humiliated lawyers trying to foreclose on FHA Mortgages.

Steve Stutman has also helped Latin American homeowners and people of African descent from being discriminated against by FHA mortgage lenders. 

Furthermore, The Law Office of Steven Stutman also has access to some of the top forensic accountants and former FBI agents available. Steve Sturman can also call on mortgage compliance experts and collateralized debt experts if needed. 

As a result, this gives the Law Offices of Steven Stutman unparalleled strength to challenge any FHA lender in any American courtroom. 

We bring the most aggressive FHA Foreclosure Defense Team to you! Steve Stutman likes fighting Wall Street banks! He has spent nearly ten years in the world of lending and knows the Achille’s heel of every major lender. 

Steven Stutman has helped hundreds of people successfully fight to keep their homes. 

Call us at 888.574.7771 to learn more!


New Rochelle Foreclosure Defense

New Rochelle Foreclosure Defense

The Aggressive New Rochelle Foreclosure Defense You Deserve

The Law Office of Steven Stutman has created the most aggressive New Rochelle foreclosure defense team New York has ever seen! We are the only foreclosure and mortgage experts with the strength to successfully challenge any Wall Street lender in a Westchester County or New York courtroom.

Steve Stutman’s New Rochelle foreclosure defense team has become a lender’s worst nightmare. Why? He has successfully challenged some of the most arrogant foreclosure mill lawyers and Wall Street lenders in New York.

White Plains Foreclosure Defense

For nearly 40-years, Steve Stutman has developed a reputation of bringing Wall Street banks to their knees. He has even humiliated bank lawyers and made bank executives sob like babies during depositions. 

Steve Stutman has also helped keep lenders from discriminating against Latin American homeowners and people of African and Caribbean descent. In addition, he has helped keep 9/11 survivors and military combat veterans in their homes. 

Furthermore, The Law Office of Steven Stutman also has access to some of the top forensic accountants and former FBI agents available. He can also call on mortgage compliance experts and collateralized debt experts if needed. 

As a result, this gives Attorney Stutman unparalleled strength to challenge any mortgage lender in any New York courtroom. 

We bring the most assertive New Rochelle foreclosure defense team to you! Steve Stutman likes to fight the Wall Street banks! He spent nearly forty years in the world of lending and knows the Achille’s heel of all the major lenders. 

Steve Stutman has helped hundreds of people in New York successfully stay in their homes. 

Call us at 888.574.7771. You can also check us out on Facebook


White Plains Foreclosure Defense

White Plains Foreclosure Defense

The Aggressive White Plains Foreclosure Defense You Deserve

The Law Office of Steven Stutman has created the most aggressive White Plains foreclosure defense team New York has ever seen! We are the only foreclosure and mortgage experts with the strength to successfully challenge any Wall Street lender in a Rockland County or New York courtroom.

Steve Stutman’s White Plains foreclosure defense team has become a lender’s worst nightmare. Why? He has successfully challenged some of the most arrogant foreclosure mill lawyers and Wall Street lenders in New York.

White Plains Foreclosure Defense

For nearly 40-years, Steve Stutman has developed a reputation of bringing Wall Street banks to their knees. He has even humiliated bank lawyers and made bank executives sob like babies during depositions. 

Steve Stutman has also helped keep lenders from discriminating against Latin American homeowners and people of African and Caribbean descent. In addition, he has helped keep 9/11 survivors and military combat veterans in their homes. 

Furthermore, The Law Office of Steven Stutman also has access to some of the top forensic accountants and former FBI agents available. He can also call on mortgage compliance experts and collateralized debt experts if needed. 

As a result, this gives Attorney Stutman unparalleled strength to challenge any mortgage lender in any New York courtroom. 

We bring the most assertive White Plains foreclosure defense team to you! Steve Stutman likes to fight the Wall Street banks! He spent nearly forty years in the world of lending and knows the Achille’s heel of all the major lenders. 

Steve Stutman has helped hundreds of people in New York successfully stay in their homes. 

Call us at 888.574.7771. You can also check us out on Facebook


Rockland County Foreclosure Defense

Rockland County Foreclosure Defense

Experience The Most Assertive Rockland County Foreclosure Defense Team Ever Assembled

The Law Office of Steven Stutman has created the most aggressive Rockland County foreclosure defense team New York has ever seen! We are the only foreclosure and mortgage experts with the strength to successfully challenge any Wall Street lender in a Rockland County or New York courtroom.

Steve Stutman’s Rockland County foreclosure defense team has become a lender’s worst nightmare. Why? He has successfully challenged some of the most arrogant foreclosure mill lawyers and Wall Street lenders in New York.

Rockland County Foreclosure Defense

For nearly 40-years, Steve Stutman has developed a reputation of bringing Wall Street banks to their knees. He has even humiliated bank lawyers and made bank executives sob like babies during depositions. 

Steve Stutman has also helped keep lenders from discriminating against Latin American homeowners and people of African and Caribbean descent. In addition, he has helped keep 9/11 survivors and military combat veterans in their homes. 

Furthermore, The Law Office of Steven Stutman also has access to some of the top forensic accountants and former FBI agents available. He can also call on mortgage compliance experts and collateralized debt experts if needed. 

As a result, this gives Attorney Stutman unparalleled strength to challenge any mortgage lender in any New York courtroom. 

We bring the most assertive Rockland County foreclosure defense team to you! Steve Stutman likes to fight the Wall Street banks! He spent nearly forty years in the world of lending and knows the Achille’s heel of all the major lenders. 

Steve Stutman has helped hundreds of people in New York successfully stay in their homes. 

Call us at 888.574.7771. You can also check us out on Facebook


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