In “Plunder,” Schechter makes the case that criminal acts of fraud and deception lay at the root of the financial crisis. The film argues that the scope of the fraud was huge, ranging from dishonest subprime lenders tricking unsophisticated borrowers into unaffordable loans, to the packaging of these risky loans into securities labeled risk-free, to the unknown parties who made millions betting against the U.S. housing market. “We need a jailout, not a bailout,” Schechter concludes.
Permanent modifications continue to grow increasingly slowly and trial modifications are still dropping, though October marked the end of the six-month streak of double-digit decreases in active trial modifications. Chicago region permanent loan modifications rose by 3.1 percent from September to October, compared to 6.6 percent growth from July to August and 4.1 percent growth from August to September (see charts A and B).
Some mortgage servicers have announced temporary moratoria on foreclosures in 23 states, while Bank of America announced a moratorium for the entire country. The moratoria were prompted by evidence of “robo-signers,” employees at some servicers who signed off on thousands of foreclosure documents a month without properly ensuring their validity, potentially in violation of state laws. The servicers announced the moratoria in order to review their foreclosure processes.
“The Community Reinvestment Act has created jobs, supported responsible homeownership, and expanded opportunities for saving by investing trillions of dollars in low- and moderate-income communities,” said Rand. “Nonetheless, the rapidly-changing and complex financial landscape of today bears little resemblance to the world of 1977, when the original CRA was passed.
Growth in the number of permanent modification continues to slow, while August saw the fifth straight month of double-digit decreases in active trial modifications. Chicago region permanent loan modifications rose by 6.6 percent from July to August, compared to 14.8 percent growth from May to June and 9 percent growth from June to July (see charts A and B). Regional trial modifications fell by 21 percent from July to August, which is less severe than the 29.8 percent decrease from June to July.
HMDA is a crucial tool in the fight against discriminatory and predatory lending.