Call Our Office Today: +1 (718) 329-9500

Category Archives: Mortgage

Mathematical methods given the green light by judge

There are currently 15 cases involving banks, including Credit Suisse and Bank of America that deal with mortgages. These cases have been consolidated as the Federal Housing Finance Agency (FHFA) is the plaintiff and the banks are the defendants. The FHFA oversees US government giants Fannie Mae and Freddie Mac. In this lawsuit, which began last year, the FHFA is fighting the banks as they backed 1.1 million mortgages and lost $200 billion on them. Fannie Mae and Freddie Mac had guaranteed the mortgages that the banks underwrote them now face losses.

The problem in this particular case is the number of mortgages involved. According to Thomson Reuters News and Insight, it can cost up to $400 and take up to three hours to re-underwrite each mortgage. As a result, the FHFA would like to use methods of statistical sampling to analyze the massive number of mortgages quickly and cost-effectively. However, the banks challenged the “reliability” of this method.

A U.S. District Judge denied the request, meaning that the plaintiff, the FHFA can use this method in bringing the banks to court. The agency will now begin to use its mathematical methods to determine which mortgages are losses were at the fault of the banks for a January 2014 trial.

If you have been affected by the mortgage crisis or if you are considering filing bankruptcy, call the law office of Jayson Lutzky, P.C. Mr. Lutzky has been practicing law for over 29 years and has helped thousands of satisfied clients over that period. Initial in person consultations are free, so call (800) 660-5299 today or visit www.BankruptcyNYC.com for more information.

New York takes Chase to Court for Stearns’ actions

New York is seeking fraud actions against JPMorgan Chase & Co., as reported by Reuters on October 1st, 2012. New York Attorney General, Eric Schneiderman, filed a civil suit against Chase early October for the mortgage-backed securities that were packaged and sold by Bear Stearns. Chase bought Bear Stearns in early 2008. Chase stated that…Continue Reading

Advantages of Chapter 13 bankruptcy filing

There are several advantages to filing for a Chapter 13 bankruptcy rather than a Chapter 7. One of the main advantages is for those individuals whose property is close to foreclosure.  Filing for a Chapter 13 bankruptcy helps save the property from being foreclosed, however, mortgage payments must still be paid. Another significant advantage to…Continue Reading

Electronic mortgage registry settles with Delaware

System designed for simplicity causes damages MERS stands for the Mortgage Electronic Registration System. This system is designed to facilitate the transfer and recording of mortgages with ease because it is used throughout the nation. On July 13, 2012, Thomson Reuters wrote that MERS settled a case with the State of Delaware. According to the…Continue Reading

Libor scandal affects consumers too writes a Bronx bankruptcy attorney

After information regarding Libor manipulation surfaced, investigations began and fines were imposed on both sides of the Atlantic. Libor stands for London Interbank Offer Rate. This rate is calculated every weekday based on bank-supplied information and is one of the world’s most important numbers in finance. It determines how expensive it is for banks to…Continue Reading

What do bank downgrades mean for consumers?

Over the past few years, the banking and financial industry has had its reputation tarnished. Every few weeks, in part to sovereign debt crises and shaky markets, banks have had their ratings downgraded. A June 22, 2012 NPR (via AP) article explains what this means for those besides governments and large corporations—consumers. The Federal Deposits…Continue Reading

Mortgage rates stay at all time low for second week

More people bought previously occupied homes in May. That equaled the fastest growth in two years. A June 28, 2012 NPR article explains why low mortgages rates are beneficial for the current economy. Thirty-year loans stayed at 3.66%, a record low. That is an incentive for some to take out new mortgages. The interest rate…Continue Reading

Report says reverse mortgages are on the rise

A reverse mortgage is when a homeowner takes out a loan against their home. Reverse mortgages are available to people of age 62 and older and this type of loan is on the rise, according to a New York Times article published June 28, 2012. Over four times as many people aged exactly 62 took…Continue Reading

Lower interest rates do not necessarily mean higher consumer borrowing

Recently, interest rates in have fallen.  Even though low interest rates mean that borrowing costs are low, businesses have used these low borrowing costs to their advantage much more than consumers according to a June 9, 2012 New York Times article. Consequently, during the first quarter 1 of 2012, businesses were borrowing more than ever…Continue Reading

Local New York bank faces charges on mortgage fraud

  Arrests! Conspiracy! Grand larceny! 25-year prison sentences! Mortgage fraud! These are not the terms that you want to hear with regards to your bank and its former employees, but Abacus Federal Savings Bank is now facing allegations related to mortgage fraud, according to a June 1st, 2012 New York Times article. Abacus, a bank…Continue Reading

New York court rules in favor of bank in foreclosure case

A New York court ruled against a homeowner on his motion for a summary judgment to dismiss his mortgage foreclosure action, as reported by the New York Law Journal in an April 11th, 2012 article. The homeowner’s mortgage loan was modified in accordance with the guidelines established by the Home Affordable Modification Program. The homeowner…Continue Reading

Mortgage servicers follow new guidelines

According to a New York Times news article published April 10th, 2012 the Consumer Financial Protection Bureau outlined a preliminary plan to address a lack of clearness and accountability among mortgage servicers. “For too long, mortgage servicers have not been held accountable to their customers, and the result has been profoundly punishing to homeowners in…Continue Reading

New bureau created to help trouble borrowers

  The Consumer Financial Protection Bureau, (CFPB)  is now accepting complaints, questions and concerns from mortgage lenders. In a January 27th New York Times article it was reported that the bureau which originally started in 2010 was recently reformed to better protect and inform consumers on risky loans. In addition the bureau’s goal is to…Continue Reading

Bronx bankruptcy lawyer comments on New York jurisdiction in Federal Housing cases

  An October 13th, 2011 New York Law Journal article reported that the Federal Housing Finance Agency filed 13 of their lawsuits against some of the world’s largest financial institutions in the New York federal court . The agency additionally filed four in the New York state court and one in the Connecticut court system.…Continue Reading

NYU Professors Suggest Changes to Housing Finance System

Recent concern over the mortgage crisis has send hundreds of economists scrambling to find solutions to the financial crisis, in particular the housing finance system. While many argue for the continuation of direct assistance to those struggling with their mortgages, three professors at NYU Stern have suggested an alternative approach. According to an August 30,…Continue Reading

Bank of America Accused of Reneging on Mortgage Agreement

  The attorney general of Nevada, Catherine Cortez Masto, is accusing Bank of America of going back on a broad loan modification agreement agreed upon in October 2008, says “The New York Times” in an August 31, 2011 publication. The settlement came at the height of investigations into the predatory loan practices of several large…Continue Reading

Bronx bankruptcy attorney gives tips on freelancers applying for a mortgage

  With the job market still is not on stable ground many Americans have turned to freelance jobs to help pay the household bills. Unfortunately, income from freelance jobs can have a grave effect on a person getting or modifying their home mortgage, as reported in an August 26th 2011 article. For those freelancers looking…Continue Reading

The Fifteen Year Mortgage

New mortgage plans are emerging that may save borrowers money and entice some to take out these loan plans. In recent years, 15-year mortgages have become more popular. These shorter plans save money in the long run for many consumers but have their own risks. In an August 21, 2011 article in the New York…Continue Reading

Federal Government to Sue Seventeen Mortgage Institutions

A September 3, 2011 New York Times article reported that the U.S. government is preparing to file suit against several  financial institutions that sold around $200 billion in mortgage-backed securities to Fannie Mae and Freddie Mac that later fell apart. These new lawsuits are the most recent legal action being taken against banks that are…Continue Reading

Bank of America Restructures Top Management

Following a steady decline in stock values over the past few years, Bank of America is letting go of two top executives. According to the September 7, 2011 “New York Times,” Sallie Krawcheck and Joseph Price are both being relieved from their top management level positions. Bank of America has struggled since the financial crisis…Continue Reading

Picking up the financial pieces after losing a spouse

Losing a spouse is an extremely gut wrenching event that completely changes a person’s life, especially their financial situation. A New York Times article published September 2nd, 2011 discussed the money challenges many widows face today. One challenge is many widows receive a large sum of money from an insurance settlement but many spend their…Continue Reading

Bronx Lawyer Discusses New Refinancing Plan

The White House may have plans to refinance loans owned by government-controlled mortgage companies Fannie Mae and Freddie Mac. These plans may help homeowners who are having difficulty paying high-interest rate mortgages. According to “A Lifeline for Homeowners”, published in the New York Times on August 26, 2011, a refinancing plan will seek to lower…Continue Reading

The housing market in the Miami area is showing signs of improvement

The very depressed housing market in the Miami area is showing signs of improvement, The New York Times reports. “Affluent Buyers Reviving Market for Miami Homes,” The New York Times, Tuesday, July 26, 2011. The housing market in South Florida has been in real bad shape in recent years. In Miami-Dade County, one out of…Continue Reading

The Consumer Financial Protection Bureau is overseeing the terms of mortgages

The recently created Consumer Financial Protection Bureau is starting to oversee the terms of mortgages and looking for ways to make them better for borrowers, The New York Times reports. “Sorting Through Lending Costs,” The New York Times, Sunday, July 24, 2011. The Consumer Financial Protection Bureau (C.F.P.B.) is legally required by July 2012 to work…Continue Reading

How people are reacting to the foreclosure crisis in Spain

  In a country considered by many to have the harshest foreclosure laws in Europe, protesters in Spain are blocking evictions, The New York Times reports. “Foreclosure Protesters in Spain’s Cities Now Go Door to Door,” The New York Times, Saturday, July 16, 2011. In Spain the borrower is in absolute deep trouble if he or…Continue Reading

Fourteen people, including four lawyers, are charged in mortgage fraud

  Fourteen people, including four lawyers, were indicted for allegedly mortgage fraud, the New York Law Journal reports, “Four Lawyers Charged in Mortgage Fraud,” New York Law Journal, Friday, August 5, 2011. All fourteen are being accused of conspiracy to commit bank and wire fraud. According to the accusations, they used straw buyers and false…Continue Reading

The New York Times supports a strong an independent Consumer Financial Protection Bureau

The New York Times published an editorial calling for a strong and independent Consumer Financial Protection Bureau. “Consumers vs. Banks,” The New York Times, Sunday, July 24, 2011. Congress created the new Consumer Financial Protection Bureau (C.F.P.B.) when it approved the Dodd-Frank law to overhaul financial regulations after the credit crisis. The editorial reminds readers…Continue Reading

Concerns about the foreclosure crisis in Spain

  In Spain, people are looking for ways to deal with a foreclosure crisis affecting this country, The New York Times reports. “Foreclosure Protesters in Spain’s Cities Now Go Door to Door,” The New York Times, Saturday, July 16, 2011. Many people consider Spain to have the harshest foreclosure laws in Europe. The borrower does…Continue Reading

AIG is suing Bank of America for $10 billion over allegedly overvalued mortgages

    American International Group Inc. (AIG) filed a lawsuit against Bank of America Corp. for more than $10 billion dollars, claiming the bank sold residential mortgage-backed securities that were overvalued, the New York Law Journal reports. “AIG Sues Bank of America For $10 Billion Over Mortgages,” New York Law Journal, Tuesday, August 9, 2011.…Continue Reading

Warnings about co-signing a mortgage

  People should be very careful when they are being asked to co-sign a mortgage, advises a columnist from the New York Times. “Co-Signing on the Dotted Line,” The New York Times, Sunday, August 7, 2011. Many people fall into the trap of what it seems to be just another step to help out a…Continue Reading

Concerns about the success of efforts to protect consumers

Efforts in Washington to protect consumers are finding resistance. The most recent sign of resistance is the opposition from Republicans in Congress to the nomination of Richard Cordray as director of the newly created Consumer Financial Protection Bureau, The New York Times reports, “Former Ohio Attorney General to Head New Consumer Agency,” The New York…Continue Reading

A possible default and government downgrade will not significantly affect home loans nor credit cards

A possible government debt downgrade will not significantly affect home loans nor credit cards, The New York Times reports, “How a Debt Downgrade May affect Consumers,” The New York Times, Monday, July 26, 2011. Many are concerned that in Washington there will not be an agreement in time to avoid a possible default and debt…Continue Reading

The pros and cons of reverse mortgages

Despite the recent problems with reverse mortgages, they are still seen as an option, The New York Times reports, “Reverse Mortgages Are Here to Stay,” The New York Times, Saturday, June 25, 2011. In a reverse mortgage, the lender pays the homeowner instead of the other way around. Then the lender gets the money back…Continue Reading

Bronx foreclosure defense law firm informs that Wells Fargo has agreed to pay $85 million over mortgages

Wells Fargo & Company, under fire for allegedly falsyfying loan documents and approving subprime mortgages with higher interest rates, agreed to pay a fine of $85 million imposed by the Federal Reserve, The New York Times reports. “Wells Fargo Agrees to Pay 85 Million Over Loans,” Thursday, July 21, 2011. According to the Federal Reserve,…Continue Reading

Bronx bankruptcy attorney discusses recession’s impact on the Hispanic community

A new study shows that the Hispanic population has been hit the hardest by the recession. A study conducted by the Pew Foundation and using data collected by the Census Bureau reported, that the average Hispanic household wealth has decreased the most during the recession then any other racial group. According to a July 26th,…Continue Reading

Bronx bankruptcy lawyer comments on MERS legal problems

Mortgage Electronic Registry System faces more legal issues dealing with the company’s loan and foreclosure processes. According to a July 23rd, 2011 New York Times article, banking executives and state attorney generals have begun negotiating a settlement agreement to end the legal battles surrounding the company. As of now, it is unclear how much protection…Continue Reading

Bronx foreclosure defense law firm shares news about a bank fraud case: former chairman of mortgage firm sentenced to 30 years

Lee B. Farkas, former chairman of mortgage firm Taylor, Bean & Whitaker, is being sentenced to 30 years in prison for bank fraud, The New York Times reports. “Former Chairman of Mortgage Firm Sentenced to 30 years in Bank Fraud,” The New York Times, Friday, July 1, 2011. Mr. Farkas was accused in federal court…Continue Reading

Bronx bankruptcy law firm shares news about foreclosure case: the president and CEO of HSBC did not appear at sanction hearing

The president and CEO of HSBC Bank USA did not attend the sanction hearing regarding a foreclosure case, the New York Law Journal reports. “Judge Weighs Sanction Over Faulty Bank Documents,” New York Law Journal, Monday, July 18, 2011, reporting on HSBC v. Taher, 9320-2009. Brooklyn Supreme Court Justice Arthur M. Schack judge had ordered…Continue Reading

Bronx financial and property attorney comments on mortgage payment grace period

Unemployment numbers are still up and housing prices are still down, which has led to Obama’s administration having to go back to the drawing boards. The New York Times report in a July 8th, 2011 article, that Obama’s administration has implemented that all loans that are presently insured by the federal government will allow unemployed…Continue Reading

BRONX BANKRUPTCY ATTORNEY COMMENTS ON GOLDMAN SACHS POTENTIONAL LOAN VIOLATIONS

An anonymous letter sent from a current employee sparked an investigation against Goldman Sachs, reported The New York Times in a May 26th, 2011, article. The Federal Reserve Bank of New York is currently conducting an investigation to see if Goldman Sachs company was systematically rejecting borrowers in an attempt to lower their loan payments…Continue Reading

BRONX FORECLOSURE ATTORNEYS COMMENT ON HOME OWNERSHIP DECREASE

The New York Times reported in a May 30th, 2011, article that the number of homeowners in America is dropping. Even with the economy slowly beginning to turn around since last year. The American public is not looking to buy their own home. Many Americans are simple are unable to because of unemployment, previous foreclosures,…Continue Reading

Bronx financial attorney comments on foreclosure prevention programs and the issues they face

Unemployment is currently the biggest contributor to property foreclosures, reported The New York Times in a June 10th, 2011, article. Since President Obama took office he has been trying to stabilize the number of foreclosures. In 2009, Obama started the Home Affordable Modification Program as a primary foreclosure prevention tool. The program was designed to…Continue Reading

Bronx Financial Lawyer blogs about Goldman Sachs getting subpoenaed by Manhattan District Attorney

Goldman Sachs’ luck doesn’t appear to be changing any time soon. As reported by The New York Times on June 3rd, 2011, the Manhattan District Attorney has issued a subpoena against the Wall Street investment bank. Currently, the Manhattan district attorney is conducting an investigation on the role Goldman Sachs potentially played in the financial…Continue Reading

NEW YORK BANKRUPTCY LAW FIRM HAPPY THAT THE FEDERAL GOVERNMENT SUES DEUTSCHE BANK FOR MORTGAGE FRAUD

The U.S. government is suing Deutsche Bank for allegedly committing fraud for illegally benefiting from a program that insured mortgages, the New York Law Journal reports, “U.S. Charges Mortgage Fraud by Bank,” New York Law Journal, Wednesday, May 4, 2011. Southern District U.S. Attorney Preet Bharara filed this civil complaint against Deutsche Bank and MortgageIT…Continue Reading

Bronx bankruptcy attorney shares news about a plan to protect homeowner from forclosure

The New York Times reports that state Attorneys General are proposing a very helpful plan that would protect struggling homeowners in a trial modification. “A Plan to Make it Harder for Banks to Foreclose on Homeowners”, The New York Times, Saturday, March 5, 2011. According to the plan, if the borrower has made three payments…Continue Reading

New York City bankruptcy lawyer reposts what is MERS and how it can hurt you as a homeowner

  MERS stands for Mortgage Electronic Registration Systems and is a system owned by major banks and Fannie Mae and Freddie Mac that serves as an agent for institutions that own mortgages. A bank may list MERS as the mortgage holder in order to avoid filing new paperwork or paying fees each time a mortgage…Continue Reading

Bronx bankruptcy law firm blogs on a deal to improve things for struggling homeowners coming soon

The New York Times reports that Attorneys General of the 50 states, federal regulators, and the banks may be near an agreement to overhaul the way foreclosures as well as loan modifications are handled for millions of Americans. “Foreclose Deal Near, State Officials Say”, The New York Times, Tuesday, March 8, 2011. So far it…Continue Reading

Bronx bankruptcy attorney comments home buying classes to help avoid foreclosures

  It is a part of the American dream to own your own home but if that home is not in your budget it can quickly turn into a nightmare. That’s why more first time homebuyers have started using the resources offered by agencies like GreenPath Debt Solutions, before making the commitment to buy, reported…Continue Reading

New York lawyer shares news on mortgage related lawsuits: JP Morgan overcharging homeowners in the military, settlement is approved

A settlement has been approved in a federal case against JP Morgan Chase & Company, sued for overcharging homeowners in the military, The New York Times reports, “JPMorgan in Talks to Settle S.E.C. Inquiry Into Securities,” The New York Times, Saturday, May 7, 2011. Since 1942, people in the military are protected under the Servicemembers…Continue Reading

Federal government sues Deutsche Bank for mortgage fraud

          The U.S. government is suing Deutsche Bank for allegedly committing fraud for illegally benefiting from a program that insured mortgages, the New York Law Journal reports, “U.S. Charges Mortgage Fraud by Bank,” New York Law Journal, Wednesday, May 4, 2011. Southern District U.S. Attorney Preet Bharara filed this civil complaint…Continue Reading

Bronx Property Lawyer blogs about Goldman Sachs’ selling off their mortgage unit

Looks like Goldman Sachs’ is cashing in on their short-lived mortgage unit, as reported in a New York Times article on June 6th, 2011. Ocwen Financial Corporation and Goldman Sachs’ have been in negotiations over Litton Loan Servicing, Goldman’s mortgaging service unit. Goldman Sachs’ has owned the Litton unit since 2007 and attempted to get…Continue Reading

Many Struggling With Student Loan Debt

      A new study released by the Institute for Higher Education found that many people with student loan debt are having problems paying them back, The New York Times reports, “Loan Study On Students Goes Beyond Default Rates”, Wednesday, March 16, 2011. The numbers are impressive. For every borrower that defaults on a…Continue Reading

Former Chief Executive Of Freddie Mac Under Investigation

Richard F. Syron, the former chief executive of Freddie Mac, may be facing a civil action as part of a government investigation against this mortgage group and its sister company, Fannie Mae, for their disclosure practices, the New York Times reports. “Ex-Chief of Freddie May Face Civil Action”, Wednesday, March 16, 2011. The Securities and…Continue Reading