Tuesday, April 21, 2009
HARDSHIP LETTER (SAMPLE)
1.One of the items your lender or servicer will ask for during the loan workout or loan modification process is a hardship letter. A hardship letter is a written explanation as to what “event” has caused you to fall behind on your mortgage and it vital in helping you stop foreclosure.
This letter acts much like an outline or biography of your current “life” issues that are affecting your ability to meet your financial obligations.
Please keep in mind that your are composing the hardship letter for your lender or servicer and because of the foreclosure crisis, they are extremely busy and back logged. Do not write a book because most likely it will not get the attention of an over worked, $12 an hour loss mitigation employee. Keep it short and to the point.
*Usually 1 or at maximum 2 pages is more than enough to get your point across.Here is an example list of hardships that lenders consider during the loan workout process:<
1.Adjustable Rate Mortgage Reset- Payment jumps we will see more lenders accept this in the future)
2.Illness
3.Loss of Job
4.Reduced Income
5.Failed Business
6.Job Relocation
7.Death of Spouse or C0-Borrower
8.Death
9.Incarceration
10.Divorce
11.Marital Separation
12.Military Duty
13.Reduced Income
14.Medical Bills
15.Damage to Property (natural disaster or unnatural)
16.Other (Please Specify)
Now that you understand what your lender or servicer is looking for, it’s time to sit down and write a hardship letter. I made it easy for you by giving you a couple templates below that you can use as a boiler plate for your own letter. Make sure you make it unique to your situation.
Remember that your hardship letter is only one piece of the loan workout process, but key in helping you avoid foreclosure. You will still need to jump a few hurdles with your lender before they will approve you any kind of work out plan.
EXAMPLE HARDSHIP LETTER:
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
To Whom It May Concern:
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.
The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.
(The approximate date of hardship and we believe that our situation is Temporary or will be Permanent.)
Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.
We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.
Sincerely and Respectfully,
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
Hardship Letter Contributed by LoanSafe.org Forum Member
September 7, 2007
To: Countrywide Mortgage account # 058989482
Re: Mortgage modification program
Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2008.
Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to renegotiate the terms of my current mortgage to avoid default and help stop foreclosure on my home.
Is it possible to have my current adjustable rate mortgage converted to a fixed rate? If this is not possible can the next rate change be postponed to a future date to allow me to hopefully refinance. Any other solutions you could provide would be greatly appreciated.
I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Countrywide. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.
The main problem is that my property is now worth about 5-10% less than what I paid e
This letter acts much like an outline or biography of your current “life” issues that are affecting your ability to meet your financial obligations.
Please keep in mind that your are composing the hardship letter for your lender or servicer and because of the foreclosure crisis, they are extremely busy and back logged. Do not write a book because most likely it will not get the attention of an over worked, $12 an hour loss mitigation employee. Keep it short and to the point.
*Usually 1 or at maximum 2 pages is more than enough to get your point across.Here is an example list of hardships that lenders consider during the loan workout process:<
1.Adjustable Rate Mortgage Reset- Payment jumps we will see more lenders accept this in the future)
2.Illness
3.Loss of Job
4.Reduced Income
5.Failed Business
6.Job Relocation
7.Death of Spouse or C0-Borrower
8.Death
9.Incarceration
10.Divorce
11.Marital Separation
12.Military Duty
13.Reduced Income
14.Medical Bills
15.Damage to Property (natural disaster or unnatural)
16.Other (Please Specify)
Now that you understand what your lender or servicer is looking for, it’s time to sit down and write a hardship letter. I made it easy for you by giving you a couple templates below that you can use as a boiler plate for your own letter. Make sure you make it unique to your situation.
Remember that your hardship letter is only one piece of the loan workout process, but key in helping you avoid foreclosure. You will still need to jump a few hurdles with your lender before they will approve you any kind of work out plan.
EXAMPLE HARDSHIP LETTER:
Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)
To Whom It May Concern:
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.
The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.
(The approximate date of hardship and we believe that our situation is Temporary or will be Permanent.)
Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.
We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.
Sincerely and Respectfully,
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
Hardship Letter Contributed by LoanSafe.org Forum Member
September 7, 2007
To: Countrywide Mortgage account # 058989482
Re: Mortgage modification program
Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2008.
Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to renegotiate the terms of my current mortgage to avoid default and help stop foreclosure on my home.
Is it possible to have my current adjustable rate mortgage converted to a fixed rate? If this is not possible can the next rate change be postponed to a future date to allow me to hopefully refinance. Any other solutions you could provide would be greatly appreciated.
I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Countrywide. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.
The main problem is that my property is now worth about 5-10% less than what I paid e
BANKING INDUSTRY EITHER GREEDY,STUDIP OR BOTH...SAYS JUDGE IN MIAMI...
Florida Bankruptcy Judge Questions Judgment Of Lenders Opposing Proposed Loan Modification Legislation
In Miami, Florida, the Miami Daily Business Review reports:
U.S. Bankruptcy Judge A. Jay Cristol said the banking and mortgage lending industry is either greedy, stupid or both when it comes to opposing legislation that would allow mortgage modifications for homeowners who declare Chapter 13 bankruptcy. “Everyone’s best interest would be served by stabilizing the situation and keeping people in their homes,” said Cristol, chief judge emeritus of U.S. Bankruptcy Court in Miami.
***
In Miami, Florida, the Miami Daily Business Review reports:
U.S. Bankruptcy Judge A. Jay Cristol said the banking and mortgage lending industry is either greedy, stupid or both when it comes to opposing legislation that would allow mortgage modifications for homeowners who declare Chapter 13 bankruptcy. “Everyone’s best interest would be served by stabilizing the situation and keeping people in their homes,” said Cristol, chief judge emeritus of U.S. Bankruptcy Court in Miami.
***
SAMPLE FORMS COURTESY OF APRIL CHARNEY
Sample Foreclosure Legal Documents
For those who want some idea of what the legal documents in a foreclosure action look like, Broken Credit Blog has made available some of the documents filed in a Duval County, Florida case involving foreclosure defense attorney April Charney from Jacksonville Area Legal Aid. Among the documents that were filed on behalf of the homeowner facing a foreclosure action are:
copy and paste
http://homeequitytheft.blogspot.com/2009/02/sample-foreclosure-documents.html
Motion to Enlarge Time,
Motion to Dismiss Complaint,
Defendant’s Motion to Enlarge Time to Respond to Amended Complaint,
Defendant’s Answer to Amended Complaint; Motion to Dismiss; Affirmative Defenses; Counterclaims; and Demand for Jury Trial,
Defendant’s Memorandum in Opposition to Plaintiff’s Motion to Strike.
For those who want some idea of what the legal documents in a foreclosure action look like, Broken Credit Blog has made available some of the documents filed in a Duval County, Florida case involving foreclosure defense attorney April Charney from Jacksonville Area Legal Aid. Among the documents that were filed on behalf of the homeowner facing a foreclosure action are:
copy and paste
http://homeequitytheft.blogspot.com/2009/02/sample-foreclosure-documents.html
Motion to Enlarge Time,
Motion to Dismiss Complaint,
Defendant’s Motion to Enlarge Time to Respond to Amended Complaint,
Defendant’s Answer to Amended Complaint; Motion to Dismiss; Affirmative Defenses; Counterclaims; and Demand for Jury Trial,
Defendant’s Memorandum in Opposition to Plaintiff’s Motion to Strike.
GROUP RATES FOR SOLAR POWER IN CALIF.
Green for less: Group rates for solar installation for homeowners
Aaron Crowe
Apr 21st 2009 at 7:00AMText SizeAAAFiled under: Home, Real Estate, Green
Recently, 83 homeowners in the San Francisco Bay Area got together and decided to have solar power installed on the roofs of their homes.
While 83 homes in an area with more than 6 million people might not sound like much, together their 83 homes and combined 274 kilowatts would equal more carbon savings than 1.2 million miles driven in a car.
Actually, the homeowners didn't get together on their own. They were coordinated by 1BOG.org, or One Block Off the Grid, a San Francisco company that takes groups of homeowners and works with a solar power company to get them a group discount.
Participants save 17% through the program, according to 1BOG, which started with getting cheaper solar power for 100 homes in San Francisco.
Sticker shock is usually the main obstacle stopping people from getting solar power installed in their homes. With $20,000 being the typical cost to enter the market, heavy electricity users benefit the most because their bills drop quickly with solar and it takes less time -- typically 10 years -- for the system to pay for itself in savings.
1BOG gets 25 cents per kilowatt installed, but the contractors aren't pushy. I asked for an estimate a few months ago as part of 1BOG's Bay Area installation drive, but was told it wouldn't be worth it for me to install solar power because my roof is shaded by too many trees behind my house and doesn't get enough sunlight to make it cost effective. I would have gone to cut the trees down, but they weren't in my yard, and besides, the contractor told me that it probably wouldn't be worth the cost anyway because my house doesn't use a lot of electricity.
That's one of the rubs in getting solar power. Because power companies charge higher rates to heavy electricity users, the light users wouldn't see their power bill drop as much as a heavy user would. My solar bill wouldn't drop much if I got solar power.
1BOG takes away the unknown when buying solar. Unlike a new roof or garage door, where you can easily find out the price by asking a neighbor or someone down the street how much they recently paid, solar installation is so new that homeowners don't have a benchmark for what it costs. By bringing buyers together and making the cost scalable with a group discount, everybody knows what everyone in the neighborhood is paying for the solar installation and shouldn't feel ripped off.
Aaron Crowe is an unemployed journalist in the San Francisco Bay Area. Read about his job search at www.AaronCrowe.net
Source
Aaron Crowe
Apr 21st 2009 at 7:00AMText SizeAAAFiled under: Home, Real Estate, Green
Recently, 83 homeowners in the San Francisco Bay Area got together and decided to have solar power installed on the roofs of their homes.
While 83 homes in an area with more than 6 million people might not sound like much, together their 83 homes and combined 274 kilowatts would equal more carbon savings than 1.2 million miles driven in a car.
Actually, the homeowners didn't get together on their own. They were coordinated by 1BOG.org, or One Block Off the Grid, a San Francisco company that takes groups of homeowners and works with a solar power company to get them a group discount.
Participants save 17% through the program, according to 1BOG, which started with getting cheaper solar power for 100 homes in San Francisco.
Sticker shock is usually the main obstacle stopping people from getting solar power installed in their homes. With $20,000 being the typical cost to enter the market, heavy electricity users benefit the most because their bills drop quickly with solar and it takes less time -- typically 10 years -- for the system to pay for itself in savings.
1BOG gets 25 cents per kilowatt installed, but the contractors aren't pushy. I asked for an estimate a few months ago as part of 1BOG's Bay Area installation drive, but was told it wouldn't be worth it for me to install solar power because my roof is shaded by too many trees behind my house and doesn't get enough sunlight to make it cost effective. I would have gone to cut the trees down, but they weren't in my yard, and besides, the contractor told me that it probably wouldn't be worth the cost anyway because my house doesn't use a lot of electricity.
That's one of the rubs in getting solar power. Because power companies charge higher rates to heavy electricity users, the light users wouldn't see their power bill drop as much as a heavy user would. My solar bill wouldn't drop much if I got solar power.
1BOG takes away the unknown when buying solar. Unlike a new roof or garage door, where you can easily find out the price by asking a neighbor or someone down the street how much they recently paid, solar installation is so new that homeowners don't have a benchmark for what it costs. By bringing buyers together and making the cost scalable with a group discount, everybody knows what everyone in the neighborhood is paying for the solar installation and shouldn't feel ripped off.
Aaron Crowe is an unemployed journalist in the San Francisco Bay Area. Read about his job search at www.AaronCrowe.net
Source
NO NEWS FROM SENATOR MARTINEZ...YOU MEAN !
OK- WHERES THE REPLY ON THE FINANCIAL ISSUES FACING ALL FLORIDIANS? ALTHOUGH YOUR PICTURE WITH THE COAST GUARD IS CUTE...
April 21, 2009
News from Senator Martinez
Pictured Above: Senator Martinez and members of the Coast Guard Auxiliary Group aboard the USCGC Diamondback. Senator Martinez recently received a briefing and demonstration of current Coast Guard activities.
Panama City Federal Courthouse on Fast Track. Senator Martinez called on the U.S. General Services Administration (GSA) to study the consolidation of all federal agencies in the Panama City and Bay County area under one new roof. "The Panama City area needs a new courthouse and federal building to meet the long-term operational and security needs of the District Court," Martinez said. Read More...
Homeowner Preservation Forum. In an effort to connect lenders with constituents facing foreclosure and assist them with keeping their home, the Office of Senator Martinez hosted a homeowner preservation workshop on Saturday, April 18th in the Ft. Myers area. More than 400 constituents attended. If you missed the workshop, but are interested in assistance, please contact Senator Martinez's Orlando Office at (407) 254-2573.
2009 Academy Applications Now Available. Senator Martinez is accepting applications from outstanding Florida students who wish to attend the U.S. Service Academies; the Air Force Academy at Colorado Springs, the Merchant Marine Academy at Kings Point, the Military Academy at West Point, and the Naval Academy at Annapolis. The 2009 Academy Application as well as general information, helpful hints and other required forms are now available online. For more information, click here.
Change to Cuba Policy. President Obama recently announced his intention to ease family travel restrictions to Cuba and relax limitations on family-to-family remittances sent to the country. In response, Martinez said, "The announcement today is important for Cuban families separated by the lack of freedom in Cuba. Likewise the change in remittances should provide help to families in need. Given these changes will benefit the regime in Havana, it would be wise in the implementation to place some reasonable limits on this type of travel and the amounts that can be sent to Cuba." Read More...
Celebrating South Florida's History. Senator Martinez celebrated the unveiling of the restored Old World navigational map in the Freedom Tower in downtown Miami. The Freedom Tower was the processing center for nearly half a million Cuban refugees during the 1960s and, for Cuban immigrants, serves as a symbol of freedom from the Castro regime. "The Freedom Tower means many things to many people, and for many Cubans, it is where their life in America began," Martinez said. "To me, it is the place where my parents and my brother passed through before our family was reunited in America." Read More...
Casework Corner
Peter Allen incurred a debt from Servicemembers' Group Life Insurance, a life insurance company that serves active duty military members. Since Mr. Allen was no longer in the military, his debt was erroneous. He attempted to fix this problem for two years but was unsuccessful. As a result, the debt was passed on to the Department of the Treasury. Mr. Allen turned to the Office of Senator Martinez for assistance.
A caseworker contacted Defense Finance and Accounting Services, the agency responsible for finance and accounting services for the military, and inquired about Mr. Allen's debt. After providing the agency with the proper documentation, the error was immediately recognized. As a result, the Defense Finance and Accounting Services immediately corrected Mr. Allen's records to show no debt. Additionally, the Department of Treasury and the credit reporting bureaus were notified of the error. Mr. Allen's debt was successfully cleared.
If you have questions about a federal agency, please contact the Orlando Regional Office by calling (407) 254-2573 to speak with a member of the Casework Department. The toll-free number for Florida residents is (866) 630-7106. To find out more about how my office can help you, go to http://martinez.senate.gov or stop by one of our scheduled Community Office Hours in your area.
*Casework Corner is a real account of assistance provided to constituents. The names of those involved are changed to protect the privacy of the constituent.
Official Website | Privacy Policy | Unsubscribe
April 21, 2009
News from Senator Martinez
Pictured Above: Senator Martinez and members of the Coast Guard Auxiliary Group aboard the USCGC Diamondback. Senator Martinez recently received a briefing and demonstration of current Coast Guard activities.
Panama City Federal Courthouse on Fast Track. Senator Martinez called on the U.S. General Services Administration (GSA) to study the consolidation of all federal agencies in the Panama City and Bay County area under one new roof. "The Panama City area needs a new courthouse and federal building to meet the long-term operational and security needs of the District Court," Martinez said. Read More...
Homeowner Preservation Forum. In an effort to connect lenders with constituents facing foreclosure and assist them with keeping their home, the Office of Senator Martinez hosted a homeowner preservation workshop on Saturday, April 18th in the Ft. Myers area. More than 400 constituents attended. If you missed the workshop, but are interested in assistance, please contact Senator Martinez's Orlando Office at (407) 254-2573.
2009 Academy Applications Now Available. Senator Martinez is accepting applications from outstanding Florida students who wish to attend the U.S. Service Academies; the Air Force Academy at Colorado Springs, the Merchant Marine Academy at Kings Point, the Military Academy at West Point, and the Naval Academy at Annapolis. The 2009 Academy Application as well as general information, helpful hints and other required forms are now available online. For more information, click here.
Change to Cuba Policy. President Obama recently announced his intention to ease family travel restrictions to Cuba and relax limitations on family-to-family remittances sent to the country. In response, Martinez said, "The announcement today is important for Cuban families separated by the lack of freedom in Cuba. Likewise the change in remittances should provide help to families in need. Given these changes will benefit the regime in Havana, it would be wise in the implementation to place some reasonable limits on this type of travel and the amounts that can be sent to Cuba." Read More...
Celebrating South Florida's History. Senator Martinez celebrated the unveiling of the restored Old World navigational map in the Freedom Tower in downtown Miami. The Freedom Tower was the processing center for nearly half a million Cuban refugees during the 1960s and, for Cuban immigrants, serves as a symbol of freedom from the Castro regime. "The Freedom Tower means many things to many people, and for many Cubans, it is where their life in America began," Martinez said. "To me, it is the place where my parents and my brother passed through before our family was reunited in America." Read More...
Casework Corner
Peter Allen incurred a debt from Servicemembers' Group Life Insurance, a life insurance company that serves active duty military members. Since Mr. Allen was no longer in the military, his debt was erroneous. He attempted to fix this problem for two years but was unsuccessful. As a result, the debt was passed on to the Department of the Treasury. Mr. Allen turned to the Office of Senator Martinez for assistance.
A caseworker contacted Defense Finance and Accounting Services, the agency responsible for finance and accounting services for the military, and inquired about Mr. Allen's debt. After providing the agency with the proper documentation, the error was immediately recognized. As a result, the Defense Finance and Accounting Services immediately corrected Mr. Allen's records to show no debt. Additionally, the Department of Treasury and the credit reporting bureaus were notified of the error. Mr. Allen's debt was successfully cleared.
If you have questions about a federal agency, please contact the Orlando Regional Office by calling (407) 254-2573 to speak with a member of the Casework Department. The toll-free number for Florida residents is (866) 630-7106. To find out more about how my office can help you, go to http://martinez.senate.gov or stop by one of our scheduled Community Office Hours in your area.
*Casework Corner is a real account of assistance provided to constituents. The names of those involved are changed to protect the privacy of the constituent.
Official Website | Privacy Policy | Unsubscribe
Monday, April 20, 2009
OH WHERE OR WHERE DID THAT LITTLE NOTE GO...OH WHERE OH WHERE IS IT NOW?
It’s a story right off the national news: Homeowners fighting to prevent foreclosure on their property ask a lender to produce the original promissory note in legal proceedings. But in Levy County, it is the estate of Kathryn F. Causey, an accountant who died in January 2008, that is trying to stave off foreclosure by having the lender produce the promissory note.
***
The attorneys for Wells Fargo were a no-show for a hearing on their suit to enforce a missing promissory note so the judge dismissed it. For the estate of Kathryn F. Causey, a Cedar Key accountant who died in January 2008, it’s a victory in staving off a foreclosure attempt by the lender who cannot produce the original promissory note.
***
In June 2008, Wells Fargo filed suit asking 8th Judicial Circuit Judge David O. Glant to grant it “an action to enforce a lost, destroyed or stolen promissory note and mortgage.” [...] Glant scheduled a 10-minute telephone hearing in his chambers [last] Monday, but because Wells Fargo’s lawyers did not call in he granted a motion by Hamill’s attorney to dismiss the case.
***
The attorneys for Wells Fargo were a no-show for a hearing on their suit to enforce a missing promissory note so the judge dismissed it. For the estate of Kathryn F. Causey, a Cedar Key accountant who died in January 2008, it’s a victory in staving off a foreclosure attempt by the lender who cannot produce the original promissory note.
***
In June 2008, Wells Fargo filed suit asking 8th Judicial Circuit Judge David O. Glant to grant it “an action to enforce a lost, destroyed or stolen promissory note and mortgage.” [...] Glant scheduled a 10-minute telephone hearing in his chambers [last] Monday, but because Wells Fargo’s lawyers did not call in he granted a motion by Hamill’s attorney to dismiss the case.
Friday, April 17, 2009
APRIL WHO ??? ARPIL CHARNEY SUPERHERO THATS WHO
April Charney comes to Tampa again, blasts “sloppiness, deception and outright fraud.”
The St. Pete Times reports on April Charney coming to town again:
At the start of class, April Charney makes one thing clear.
“This is very dense, complicated work,” she warns. “If you don’t get it, raise your hand and ask questions because the chances are others don’t get it either.”
[She's speaking to] lawyers and judges [...]
April Charney Trains Tampa Lawers to Fight Foreclosure
nationally-recognized foreclosure expert April Charney came to Tampa to train Bay Area lawyers how to fight foreclosures and help homeowners save their homes.
If the lender can’t prove it owns the loan, judges will sometimes throw out the foreclosure. If the wrong lender forecloses, Charney said, homeowners could face another lawsuit later.
Charney said her strategies [...]
Who owns your loan? MSNBC asks April Charney the tough questions.
MSNBC has posted its interview with April Charney, the Jacksonville Area Legal Aid lawyer who has pioneered the field of foreclosure defense here in Florida.
“You ever look into a place where snakes hang out?” she asks in the middle of a conversation about the loan officers, appraisers, investment bankers, attorneys and others that she [...]
The St. Pete Times reports on April Charney coming to town again:
At the start of class, April Charney makes one thing clear.
“This is very dense, complicated work,” she warns. “If you don’t get it, raise your hand and ask questions because the chances are others don’t get it either.”
[She's speaking to] lawyers and judges [...]
April Charney Trains Tampa Lawers to Fight Foreclosure
nationally-recognized foreclosure expert April Charney came to Tampa to train Bay Area lawyers how to fight foreclosures and help homeowners save their homes.
If the lender can’t prove it owns the loan, judges will sometimes throw out the foreclosure. If the wrong lender forecloses, Charney said, homeowners could face another lawsuit later.
Charney said her strategies [...]
Who owns your loan? MSNBC asks April Charney the tough questions.
MSNBC has posted its interview with April Charney, the Jacksonville Area Legal Aid lawyer who has pioneered the field of foreclosure defense here in Florida.
“You ever look into a place where snakes hang out?” she asks in the middle of a conversation about the loan officers, appraisers, investment bankers, attorneys and others that she [...]
Wednesday, April 15, 2009
FTC AND THE FDCPA=CHANGE
The Federal Trade Commission has proposed changes to the Fair Debt Collection Practices Act (FDCPA) that could have a major impact on the debt collection industry, including increasing damages for FDCPA suits, restricting collectors from calling mobile phones or texting, and laying out specific criteria for information in a debt validation notice.
To bring the FDCPA current with changes in the industry, the FTC made a number of proposals for changes to the law that governs collector behavior:
Debt collectors should provide better information in debt validation notices, including: (1) the name of the original creditor; and (2) itemization of: the principal, the total of all interest, and the total of all fees and other charges
The statutory damages awarded under the FDCPA should be increased to account for inflation.
The FTC should have regulatory authority under the FDCPA.
The law should generally prohibit debt collectors from contacting consumers via cell phones unless they have obtained prior express consent to such contacts.
Although the FTC recommended that statutory damages under the FDCPA be updated to reflect inflation, it did not offer a suggested amount. The report did note that the $1,000 cap put on violations in 1977 would be about $3,600 in 2008 dollars. The FTC said that it still believes the FDCPA is best enforced by private suits and class actions, a central rationale for increasing damages.
To bring the FDCPA current with changes in the industry, the FTC made a number of proposals for changes to the law that governs collector behavior:
Debt collectors should provide better information in debt validation notices, including: (1) the name of the original creditor; and (2) itemization of: the principal, the total of all interest, and the total of all fees and other charges
The statutory damages awarded under the FDCPA should be increased to account for inflation.
The FTC should have regulatory authority under the FDCPA.
The law should generally prohibit debt collectors from contacting consumers via cell phones unless they have obtained prior express consent to such contacts.
Although the FTC recommended that statutory damages under the FDCPA be updated to reflect inflation, it did not offer a suggested amount. The report did note that the $1,000 cap put on violations in 1977 would be about $3,600 in 2008 dollars. The FTC said that it still believes the FDCPA is best enforced by private suits and class actions, a central rationale for increasing damages.
Tuesday, April 14, 2009
LETTER FROM SENATOR MARTINEZ
Dear Ms. Newton:
Thank you for contacting me regarding the housing crisis. I appreciate hearing from you and would like to take this opportunity to respond.
As you may know, on January 6, 2009, Senator Durbin (D-IL) introduced the Helping Families Save Their Homes in Bankruptcy Act (S. 61). This legislation would allow a bankruptcy judge to modify the terms of a debtor’s primary residence and reduce the principal owed on a mortgage to avoid home foreclosure. S. 61 has been referred to the Senate Committee on the Judiciary where it awaits further consideration. Although I do not serve on this committee, I can assure you that I will keep your concerns in mind should this legislation be brought before the full Senate.
I have heard from thousands of Floridians in recent weeks who are worried about this economic crisis and are concerned about the actions that Congress, and the Administration, may take in addressing these problems. I believe our country is facing a very serious situation, and I share many Floridian’s concerns about the consequences to our country if we fail to act appropriately. I assure you that I am committed to working with all of my colleagues to address this crisis and enact meaningful reforms to protect homeowners and ensure the long-term economic prosperity for our country.
Again, thank you for sharing your views with me on this important issue. For more information about issues and activities important to Florida, please sign up for my newsletter at http://martinez.senate.gov.
Sincerely,
Mel Martinez
United States Senator
Thank you for contacting me regarding the housing crisis. I appreciate hearing from you and would like to take this opportunity to respond.
As you may know, on January 6, 2009, Senator Durbin (D-IL) introduced the Helping Families Save Their Homes in Bankruptcy Act (S. 61). This legislation would allow a bankruptcy judge to modify the terms of a debtor’s primary residence and reduce the principal owed on a mortgage to avoid home foreclosure. S. 61 has been referred to the Senate Committee on the Judiciary where it awaits further consideration. Although I do not serve on this committee, I can assure you that I will keep your concerns in mind should this legislation be brought before the full Senate.
I have heard from thousands of Floridians in recent weeks who are worried about this economic crisis and are concerned about the actions that Congress, and the Administration, may take in addressing these problems. I believe our country is facing a very serious situation, and I share many Floridian’s concerns about the consequences to our country if we fail to act appropriately. I assure you that I am committed to working with all of my colleagues to address this crisis and enact meaningful reforms to protect homeowners and ensure the long-term economic prosperity for our country.
Again, thank you for sharing your views with me on this important issue. For more information about issues and activities important to Florida, please sign up for my newsletter at http://martinez.senate.gov.
Sincerely,
Mel Martinez
United States Senator
FIRE YOUR CLIENTS....YOU KNOW WHICH ONES !!!!
Being selective with your clients will help you optimize your business performance and steer you and your staff away from energy-draining clients.
Consider how the 80/20 rule applies. You earn 80% of your profits from the top 20% of your clients. The other 80% of your clients generate only 20% of your profits but most of your headaches and problems come from them.
If prospects clearly don’t fit and will become the energy-draining client, learn to say no. And work on saying goodbye to unpleasant and unprofitable clients. If they are a real burden to your employees and organization, have the courage to “fire” them.
By freeing up your staff and resources, your business can focus on attracting the profitable client and providing more time, attention and value to existing clients.
Consider how the 80/20 rule applies. You earn 80% of your profits from the top 20% of your clients. The other 80% of your clients generate only 20% of your profits but most of your headaches and problems come from them.
If prospects clearly don’t fit and will become the energy-draining client, learn to say no. And work on saying goodbye to unpleasant and unprofitable clients. If they are a real burden to your employees and organization, have the courage to “fire” them.
By freeing up your staff and resources, your business can focus on attracting the profitable client and providing more time, attention and value to existing clients.
OOPS SORRY WE FORECLOSED BY MISTAKE
Another Mortgage Servicer Screw-Up Throws Tennessee Woman's Home In Foreclosure, Despite Proof Of Payments
In Wilson County, Tennessee, WSMV-TV Channel 4 reports on another case of a mortgage lender/servicer screw-up that resulted in a homeowner being thrown into foreclosure, despite the fact that she was current on her payments and had her bank statements to prove it. Channel 4 tried to intervene in the case; however, phone calls to the lender, Saxon Mortgage, and the attorneys handling the case, Johnson and Freedman, were not returned.
For the story, see Woman's Home Foreclosed, Sold By Mistake (Mortgage Statements Show Payments Current) (read story) (watch video).
Go here and go here for other posts on foreclosure screw ups involving improperly changed locks, removal of belongings, etc. ScrewUpsLockOutsInForeclosure
In Wilson County, Tennessee, WSMV-TV Channel 4 reports on another case of a mortgage lender/servicer screw-up that resulted in a homeowner being thrown into foreclosure, despite the fact that she was current on her payments and had her bank statements to prove it. Channel 4 tried to intervene in the case; however, phone calls to the lender, Saxon Mortgage, and the attorneys handling the case, Johnson and Freedman, were not returned.
For the story, see Woman's Home Foreclosed, Sold By Mistake (Mortgage Statements Show Payments Current) (read story) (watch video).
Go here and go here for other posts on foreclosure screw ups involving improperly changed locks, removal of belongings, etc. ScrewUpsLockOutsInForeclosure
FYI MONEY SAVER FOR RENTAL CARS
Fly to Florida, drive back for $3 per day
It's that time of year again. When rental car companies work to shift their fleets from southern areas of the U.S. to the northeast for the lucrative summer car rental season.
Bestfares.com points out this deal from Hertz, which is offering an economy car rental for just $14.99 a week - or $3 per day if you don't want to keep it that long - provided you drive the car out of Florida and drop it off somewhere else. Where? Pick a city. St. Louis. Dallas. Phoenix. New York. Baltimore. There are some exceptions: no drop-offs in California, Iowa, Nevada, West Virginia, Oregon or Washington state.
This is a quick offer though - you have to book by Sunday using the code 1WAY for travel through June 30.
Posted by Michelle Deal-Zimmerman at 3:36 PM in
It's that time of year again. When rental car companies work to shift their fleets from southern areas of the U.S. to the northeast for the lucrative summer car rental season.
Bestfares.com points out this deal from Hertz, which is offering an economy car rental for just $14.99 a week - or $3 per day if you don't want to keep it that long - provided you drive the car out of Florida and drop it off somewhere else. Where? Pick a city. St. Louis. Dallas. Phoenix. New York. Baltimore. There are some exceptions: no drop-offs in California, Iowa, Nevada, West Virginia, Oregon or Washington state.
This is a quick offer though - you have to book by Sunday using the code 1WAY for travel through June 30.
Posted by Michelle Deal-Zimmerman at 3:36 PM in
Vacant Houses according to Census
Three year housing recovery
The U.S. Census Bureau says one in every nine homes in the United States is
sitting vacant, and economists predict that it won't change nationwide for at
least three years. The number of housing units in the United States increased
by 8.65 million from 2002 to 2007, but during that period the number of U.S.
households rose by only 6.7 million. Subtract a half-million homes that will be
torn down or lost to fire, and that leaves 1.3 million units.
Arthur C. Nelson, director of the University of Utah's Metropolitan Research
Center identifies three factors that ensure a slow recovery: the recession and
a slowdown in immigration, the relatively small Gen X numbers (most of who are
within the age range when people tend to have the most children), and the number
of new homes being built--about 700,000 this year. Nelson predicts that
hard-hit housing markets in the West and South will start to bounce back later
this year, but that the Northeast and Midwest will have the slowest comeback,
possibly extending beyond 2012.
The U.S. Census Bureau says one in every nine homes in the United States is
sitting vacant, and economists predict that it won't change nationwide for at
least three years. The number of housing units in the United States increased
by 8.65 million from 2002 to 2007, but during that period the number of U.S.
households rose by only 6.7 million. Subtract a half-million homes that will be
torn down or lost to fire, and that leaves 1.3 million units.
Arthur C. Nelson, director of the University of Utah's Metropolitan Research
Center identifies three factors that ensure a slow recovery: the recession and
a slowdown in immigration, the relatively small Gen X numbers (most of who are
within the age range when people tend to have the most children), and the number
of new homes being built--about 700,000 this year. Nelson predicts that
hard-hit housing markets in the West and South will start to bounce back later
this year, but that the Northeast and Midwest will have the slowest comeback,
possibly extending beyond 2012.
unemployment leads to defaults...DUH
Unemployment: Big factor in home defaults
Report indicates unemployment is a major driver of missed mortgage payments, and raises concerns that Presidential plan to modify loans may miss the mark.
NEW YORK (Reuters) -- Unemployment is a bigger reason for missed mortgage payments than high interest rates, according to a study from the Boston Federal Reserve that raises questions about President Obama's plan to stem foreclosures by modifying loans.
Borrowers are more likely to default on their payments because they have lost their jobs or because the price of their homes has plummeted than because of tough terms on their mortgages, the study found.
Loan modifications are not necessarily a better deal for investors either, wrote Boston Fed economists Christopher Foote and Paul Willen, Atlanta Fed economist Kristopher Gerardi and Lorenz Goette, a professor at the University of Geneva.
Their research found that policies that directly help homeowners overcome setbacks such as losing their jobs may be more effective in combating foreclosures.
0:00 /0:48Should I sell my house short?
"Foreclosure-prevention policy should focus on the most important source of defaults," the economists wrote in a study released on the Boston Fed's Web site late last week.
The findings challenge the thinking behind a White House plan announced in February that would give up to 9 million families the chance to refinance their mortgages. President Obama's administration has made loan modifications a central plank of its efforts to tackle the housing crisis.
"One of the most influential strands of thought contends that the crisis can be attenuated by changing the terms of 'unaffordable' mortgages," the economists wrote. But policies that focus on loan modification "face important hurdles in addressing the current foreclosure crisis," they wrote.
0:00 /1:37Housing agency scrutiny
The economists suggest that the government could instead replace part of an individual homeowner's lost income from a job loss through loans and grants and help those whose predicament is more permanent become renters.
In addition, investors do not necessarily stand to gain if foreclosure is avoided, they said, and that could help explain the relatively small number of loan modifications to date. Estimates that total gains for investors from modifying rather than foreclosing can run to $180 billion may not take into account a number of key factors.
Investors can lose money when they modify mortgages for borrowers who would have repaid anyway. Borrowers with modified loans may default again later, especially if the reason they were driven to default remains, the economists said.
First Published: April 13, 2009: 12:40 PM ET
Miami housing: The power of cheap
Foreclosure prevention: Don't get scammed
Out of work 6 months. Now what?
Find mortgage rates in your area
Features
Money & Main Street
Miami on the cheap
House prices in Miami soared, then crashed. Now buyers, like the Lamuses, are venturing back. More
Malls shed stores
Vacancy rates accelerate as retailers confront spending slump. More
Credit card relief?
Will Congress finally approve consumer-oriented legislation that has stalled for years? More
California comeback
Real estate deals on the coast may indicate a reawakening of the market. More
Detroit bargains
From great mansions to humble cottages, 7 great deals on homes in the Motor City. More
Buy, sell, hold?
Experts tell these 3 families how to score big in their real estate markets, from Miami to Atlanta. More
2010 Camaro
There's a lot to love about the new "General" - and it might just remind America of what GM can be. MoreTop
Stories
Most Popular
Stories
Most Popular
Videos
Uncle Sam won't make ends meet
Goldman on way to repaying bailout
Stocks slip in early trade
Stores suffer big drop in March sales
Bernanke sees 'signs' decline is easing
Stocks slip in early trade
Stores suffer big drop in March sales
Warren Buffett takes charge
GM recalls nearly 1.5 million vehicles
Fed's Fisher: China cannot abandon U.S.
Don't get caught in a tax scam
Driving the Chevy Volt
An affordable electric car
Roubini: 'Bear market rally'
Should I sell my house short?
US Indexes
Fortune 500 Movers
Markets Last Change
Dow Jones 8,021.65 -36.16 / -0.45%
Nasdaq 1,649.60 -3.71 / -0.22%
S&P 500 856.01 -2.72 / -0.32%
10-year Bond 99 10/32 Yield: 2.82%
U.S.Dollar 1 euro = $1.325 -0.012
April 14, 2009 10:44 AM ET
Company Price % Change
American International Group Inc 1.72 21.12%
Citigroup Inc 4.39 15.53%
Freddie Mac 1.02 14.61%
MGM Mirage 7.16 14.56%
Apr 14 10:40am ET †
Sponsored by
symbol lookupMore Galleries
First drive: Chevy Volt test
A few laps behind the wheel of an early version of GM's electric car shows the strengths - and possible weaknesses - of the technology. More
Startup stories: 'How we got the cash'
Small businesses are struggling to find banks willing to lend. Here's how - and where - 6 entrepreneurs got the loans and credit lines they need. More The 7 new rules of financial security
In a world turned upside down, you must re-examine some basic assumptions. A good place to start: understanding the true nature of risk. More Original Shows
Corner Office
An affordable electric car
The CEO of Detroit Electric says that the U.S. can expect to see an electric car by 2010. Play Best Advice
Negotiating, key to business
Know where the other person is coming from and look for the win-win, says Christie Hefner. Play CNNMoney Reports
Soros: Slow recovery ahead
The billionaire investor says we have seen the bottom, but recovery will not be quick. PlayAll CNNMoney.com Original Shows
Ask the Expert Best Advice Bing! Business of Green B.T.W. The Buzz CNNMoney Reports Conscious Capitalism Corner Office C-Suite Disruptors Energy Fix Help Desk How We Got Started Inside the Brain Kids & Money Look Ahead New Money Revell on Retirement The Score Small & Global Small Biz Tips Street Life Strategy Sessions Small Biz Makeover Tech Talk Tech Transformation
Outside the U.S. and
Canada, click here.
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Live Quotes automatically refresh, but individual equities are delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET.
* : Time reflects local markets trading time. † - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Disclaimer
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Report indicates unemployment is a major driver of missed mortgage payments, and raises concerns that Presidential plan to modify loans may miss the mark.
NEW YORK (Reuters) -- Unemployment is a bigger reason for missed mortgage payments than high interest rates, according to a study from the Boston Federal Reserve that raises questions about President Obama's plan to stem foreclosures by modifying loans.
Borrowers are more likely to default on their payments because they have lost their jobs or because the price of their homes has plummeted than because of tough terms on their mortgages, the study found.
Loan modifications are not necessarily a better deal for investors either, wrote Boston Fed economists Christopher Foote and Paul Willen, Atlanta Fed economist Kristopher Gerardi and Lorenz Goette, a professor at the University of Geneva.
Their research found that policies that directly help homeowners overcome setbacks such as losing their jobs may be more effective in combating foreclosures.
0:00 /0:48Should I sell my house short?
"Foreclosure-prevention policy should focus on the most important source of defaults," the economists wrote in a study released on the Boston Fed's Web site late last week.
The findings challenge the thinking behind a White House plan announced in February that would give up to 9 million families the chance to refinance their mortgages. President Obama's administration has made loan modifications a central plank of its efforts to tackle the housing crisis.
"One of the most influential strands of thought contends that the crisis can be attenuated by changing the terms of 'unaffordable' mortgages," the economists wrote. But policies that focus on loan modification "face important hurdles in addressing the current foreclosure crisis," they wrote.
0:00 /1:37Housing agency scrutiny
The economists suggest that the government could instead replace part of an individual homeowner's lost income from a job loss through loans and grants and help those whose predicament is more permanent become renters.
In addition, investors do not necessarily stand to gain if foreclosure is avoided, they said, and that could help explain the relatively small number of loan modifications to date. Estimates that total gains for investors from modifying rather than foreclosing can run to $180 billion may not take into account a number of key factors.
Investors can lose money when they modify mortgages for borrowers who would have repaid anyway. Borrowers with modified loans may default again later, especially if the reason they were driven to default remains, the economists said.
First Published: April 13, 2009: 12:40 PM ET
Miami housing: The power of cheap
Foreclosure prevention: Don't get scammed
Out of work 6 months. Now what?
Find mortgage rates in your area
Features
Money & Main Street
Miami on the cheap
House prices in Miami soared, then crashed. Now buyers, like the Lamuses, are venturing back. More
Malls shed stores
Vacancy rates accelerate as retailers confront spending slump. More
Credit card relief?
Will Congress finally approve consumer-oriented legislation that has stalled for years? More
California comeback
Real estate deals on the coast may indicate a reawakening of the market. More
Detroit bargains
From great mansions to humble cottages, 7 great deals on homes in the Motor City. More
Buy, sell, hold?
Experts tell these 3 families how to score big in their real estate markets, from Miami to Atlanta. More
2010 Camaro
There's a lot to love about the new "General" - and it might just remind America of what GM can be. MoreTop
Stories
Most Popular
Stories
Most Popular
Videos
Uncle Sam won't make ends meet
Goldman on way to repaying bailout
Stocks slip in early trade
Stores suffer big drop in March sales
Bernanke sees 'signs' decline is easing
Stocks slip in early trade
Stores suffer big drop in March sales
Warren Buffett takes charge
GM recalls nearly 1.5 million vehicles
Fed's Fisher: China cannot abandon U.S.
Don't get caught in a tax scam
Driving the Chevy Volt
An affordable electric car
Roubini: 'Bear market rally'
Should I sell my house short?
US Indexes
Fortune 500 Movers
Markets Last Change
Dow Jones 8,021.65 -36.16 / -0.45%
Nasdaq 1,649.60 -3.71 / -0.22%
S&P 500 856.01 -2.72 / -0.32%
10-year Bond 99 10/32 Yield: 2.82%
U.S.Dollar 1 euro = $1.325 -0.012
April 14, 2009 10:44 AM ET
Company Price % Change
American International Group Inc 1.72 21.12%
Citigroup Inc 4.39 15.53%
Freddie Mac 1.02 14.61%
MGM Mirage 7.16 14.56%
Apr 14 10:40am ET †
Sponsored by
symbol lookupMore Galleries
First drive: Chevy Volt test
A few laps behind the wheel of an early version of GM's electric car shows the strengths - and possible weaknesses - of the technology. More
Startup stories: 'How we got the cash'
Small businesses are struggling to find banks willing to lend. Here's how - and where - 6 entrepreneurs got the loans and credit lines they need. More The 7 new rules of financial security
In a world turned upside down, you must re-examine some basic assumptions. A good place to start: understanding the true nature of risk. More Original Shows
Corner Office
An affordable electric car
The CEO of Detroit Electric says that the U.S. can expect to see an electric car by 2010. Play Best Advice
Negotiating, key to business
Know where the other person is coming from and look for the win-win, says Christie Hefner. Play CNNMoney Reports
Soros: Slow recovery ahead
The billionaire investor says we have seen the bottom, but recovery will not be quick. PlayAll CNNMoney.com Original Shows
Ask the Expert Best Advice Bing! Business of Green B.T.W. The Buzz CNNMoney Reports Conscious Capitalism Corner Office C-Suite Disruptors Energy Fix Help Desk How We Got Started Inside the Brain Kids & Money Look Ahead New Money Revell on Retirement The Score Small & Global Small Biz Tips Street Life Strategy Sessions Small Biz Makeover Tech Talk Tech Transformation
Outside the U.S. and
Canada, click here.
State/PrAAABAEAKALAPARASAZBCCACOCTDCDEFLGAGUHIIAIDILINKSKYLAMAMBMDMEMIMNMOMSMTNBNCNDNENHNJNLNMNSNTNUNVNYOHOKONORPAPEPRQCRISCSDSKTNTXUTVAVIVTWAWIWVWYYT
Privacy Policy
Copyright 2009 Reuters All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy
Home Portfolio Calculators Contact Us Newsletters Podcasts RSS Mobile Widgets Press Center Site Map User Preferences
Advertise with Us Magazine Customer Service Download Fortune Lists Reprints Career Opportunities Special Sections Conferences Business Leader Council
Live Quotes automatically refresh, but individual equities are delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET.
* : Time reflects local markets trading time. † - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Disclaimer
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.
NEW TARP HEAD TAPPED
WASHINGTON -- President Barack Obama is expected to tap Fannie Mae Chief Executive Herb Allison to head the government's $700 billion financial-rescue program, people familiar with the matter say.
In choosing Mr. Allison to head the Troubled Asset Relief Program, the administration is turning to an experienced manager at a time when it is having trouble filling key finance posts. Mr. Allison, 65 years old, is the former chairman of investment company TIAA-CREF and was a Merrill Lynch & Co. executive for years. In September, he agreed to run Fannie Mae after the U.S. took over the mortgage giant and its sister firm, Freddie Mac.
Mr. Obama could announce his intention to nominate Mr. Allison as assistant secretary for the Office of Financial Stability as early as this week. Mr. Allison would replace Neel Kashkari, a holdover from the Bush administration, who was asked by Treasury Secretary Timothy Geithner to stay on until a replacement was found.
The selection will leave the administration searching for permanent leaders of both Fannie and Freddie. David Moffett, Freddie's CEO, announced his resignation last month.
The Obama administration has had difficulty finding executives willing to serve as directors and executives of companies in the government's embrace, in part because of intense scrutiny of companies receiving government aid.
Mr. Geithner has been searching for months for someone to run TARP. Various candidates either have not made it through the vetting process or have pulled out of consideration. Last month, the leading candidate, hedge-fund manager Frank Brosens, withdrew for personal reasons.
Mr. Allison has been on the short list from the beginning. His selection was complicated by several factors, including the need to replace him at Fannie, people familiar with the matter say. He spent most of his career at Merrill Lynch, eventually serving as president and COO. He became chairman of TIAA-CREF in 2002. As Fannie's CEO, he opted to take no salary or bonus.
If confirmed, Mr. Allison will become point person for what has become an unpopular program. He'll have to defend plans for spending the program's remaining cash, and would likely represent the administration if it requests more bailout funds, which many observers expect.
Write to Deborah Solomon at deborah.solomon@wsj.com
In choosing Mr. Allison to head the Troubled Asset Relief Program, the administration is turning to an experienced manager at a time when it is having trouble filling key finance posts. Mr. Allison, 65 years old, is the former chairman of investment company TIAA-CREF and was a Merrill Lynch & Co. executive for years. In September, he agreed to run Fannie Mae after the U.S. took over the mortgage giant and its sister firm, Freddie Mac.
Mr. Obama could announce his intention to nominate Mr. Allison as assistant secretary for the Office of Financial Stability as early as this week. Mr. Allison would replace Neel Kashkari, a holdover from the Bush administration, who was asked by Treasury Secretary Timothy Geithner to stay on until a replacement was found.
The selection will leave the administration searching for permanent leaders of both Fannie and Freddie. David Moffett, Freddie's CEO, announced his resignation last month.
The Obama administration has had difficulty finding executives willing to serve as directors and executives of companies in the government's embrace, in part because of intense scrutiny of companies receiving government aid.
Mr. Geithner has been searching for months for someone to run TARP. Various candidates either have not made it through the vetting process or have pulled out of consideration. Last month, the leading candidate, hedge-fund manager Frank Brosens, withdrew for personal reasons.
Mr. Allison has been on the short list from the beginning. His selection was complicated by several factors, including the need to replace him at Fannie, people familiar with the matter say. He spent most of his career at Merrill Lynch, eventually serving as president and COO. He became chairman of TIAA-CREF in 2002. As Fannie's CEO, he opted to take no salary or bonus.
If confirmed, Mr. Allison will become point person for what has become an unpopular program. He'll have to defend plans for spending the program's remaining cash, and would likely represent the administration if it requests more bailout funds, which many observers expect.
Write to Deborah Solomon at deborah.solomon@wsj.com
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