Reuters is reporting that Fox Business Network is suing the U.S. Federal Reserve in hopes of making public details on financial companies receiving federal funds.
Fox said it made an initial request on Nov. 10 last year under the Freedom of Information Act. The network asked for the identification of the financial institutions receiving funds and details on the collateral provided by these firms between August 2007 and November 2008.
The network made a second request on Nov. 18, asking for more information on financial firms that received lending from Fed programs. It also asked for the amount of collateral held by the Fed as of Nov. 14.
A Fed spokeswoman did not have a comment on the lawsuit.
To read the entire article click here
Mortgage
Feds, Fox, Sue
In the aftermath of the corporate scandals earlier this decade, investor confidence was (partially) restored by a parade of “perp walks” of fallen chieftains like Ken Lay, Bernie Ebbers, and Dennis Kozlowski.
But nearly two years into the bursting of booms in housing and mortgage securities, scant few related arrests have been made — and most of those have been focused on individual mortgage brokers vs. major industry leaders.
Read more…
Mortgage
arrests, Feds, Fraud, Jail, Mortgage broker
The demise of the subprime mortgage industry has been hard on predatory brokers, too. They feasted for years on bad loans until reality crashed down and the money ran out, and there they were: sharks without a frenzy.
Now they are circling again. Predators of every sort have regrouped and returned to their old ways, this time as loan-modification companies, inserting themselves between hard-strapped homeowners and banks, offering to work deals — for cash up front.
It’s a high-pressure, high-volume business, advertising in the usual low-rent ways: talk-radio ads, Web come-ons, fliers on car windshields. The ads are full of glossy promises, like this one for a Long Island outfit: “Reduce your mortgage rate to as low as 4%. No refinancing — no closing costs. Reduce your monthly payment. Foreclosures, late pays/bad credit okay.”
Read more…
Mortgage
Feds, Loan Modification, Scam
