community stories for southern Nevada

Posts Tagged ‘mortgage’

Where Are They Now? Looking in the rearview mirror at the “Giant Pool of Money”

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Leave it journalists to have a nostalgic look back at…well, just about everything. But seriously, the folks at NPR’s Planet Money are following up with several of the folks who they profiled a year ago in their effort to tell the story of the biggest financial mess in recent memory.

A little over a year ago, NPR and This American Life partnered on a series of stories that would explain the mortgage crisis. They called it the “Giant Pool of Money”, and you can listen to the original This American Life program here. The program they made had such a big impact, that NPR/TAL ended up creating a team at NPR focused on money and finance, called Planet Money.

This past week, the Planet Money team revisisted many of the folks who they interviewed for that first show–people we have come to see as archetypes in the mortgage crisis: borrowers, subprime lenders, and those who created the complex financial instruments which repackaged debt in a way that hid the risk of that debt.

You can hear some of these characters…two of the borrowers are here:

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An update on subprime lender Glen Pizzalaruso, who was making $100K a month at the height of the crisis, is here:

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“Option” mortgages to explode

This article, from Reuters:

The federal government and states are girding themselves for the next foreclosure crisis in the country’s housing downturn: payment option adjustable rate mortgages that are beginning to reset.

“Payment option ARMs are about to explode,” Iowa Attorney General Tom Miller said….”That’s the next round of potential foreclosures in our country,”…

Option-ARMs are now considered among the riskiest offered during the recent housing boom and have left many borrowers owing more than their homes are worth. These “underwater” mortgages have been a driving force behind rising defaults and mounting foreclosures.

In Arizona, 128,000 of those mortgages will reset over the the next year and many have started to adjust this month, the state’s attorney general, Terry Goddard, told Reuters after the meeting.

“It’s the other shoe,” he said. “I can’t say it’s waiting to drop. It’s dropping now.”

Judges’ Frustration Grows With Mortgage Servicers

The New York Times writes about a woman who was given the runaround from her lender. And she decided to go to the mat–in court. Last week, an angry judge gave her an opportuntiy to grill her lender’s attorneys in court…article is here.

Bobbi Giguere had no luck in securing a loan modification from her mortgage servicer, Wells Fargo. For months, she had sent the bank the financial documents it requested to process her modification. But each time she called to check on the request, she was told to send her paperwork again.

 “I submitted the paperwork three times, and nothing happened,” said Mrs. Giguere, 41, who has a high school education and worked as restaurant manager before losing her job.

On Thursday, something happened. She questioned a Wells Fargo official about the bank’s lack of response — under oath.

The spectacle of a high-ranking banking executive being grilled by an ordinary homeowner was the result of an unusual decision by Judge Randolph J. Haines of the United States Bankruptcy Court to summon a senior executive from Wells Fargo to appear in Mrs. Giguere’s bankruptcy case.