The Next Housing Shock - 60 Minutes Sunday
source: http://foreclosuregate.prosepoint.com/story/next-housing-shock-60-minutes-sunday
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Banks so poorly handled documentation on millions of mortgages that many today cannot prove that they own the homes they want to foreclose on. The resulting rash of lawsuits from people seeking to save their homes has one of the government's top banking regulators worried that the torrent of litigation will delay the real estate market's recovery.
Federal Deposit Insurance Corporation Chair Sheila Bair tells Scott Pelley banks should be forced to contribute billions to a clean-up fund that will help stressed homeowners stay in their homes and stave off lawsuits - there are 30,000 already - that threaten the
economic rebound. Pelley's report on this latest chapter in the incredible mortgage meltdown story will be broadcast on "60 Minutes" Sunday, April 3 at 7 p.m. ET/PT.
Like last year, banks are expected to foreclose on a million mortgages this year, a scenario that could generate more lawsuits over mismanaged paperwork. "I think that this litigation could easily get out of control," says Bair. "...We're already feeling like we're falling behind it," She thinks a large clean-up pool funded by the banks that would pay homeowners to accept a bank's ownership claim without a lawsuit is necessary. "I would assume it would be billions [that the fund would need]," Bair tells Pelley.
The problem of bad mortgage documentation emanates from the huge volume of mortgages and banks' failure to keep track of them as they were packaged and sold numerous times while the housing bubble grew. Oftentimes, banks skipped required paperwork, instead relying on paperless computer management.
Bair says banks were sloppy. "It was a matter of cutting corners, not spending enough money and not having quality controls."
Banks so poorly handled documentation on millions of mortgages that many today cannot prove that they own the homes they want to foreclose on. The resulting rash of lawsuits from people seeking to save their homes has one of the government's top banking regulators worried that the torrent of litigation will delay the real estate market's recovery.
Federal Deposit Insurance Corporation Chair Sheila Bair tells Scott Pelley banks should be forced to contribute billions to a clean-up fund that will help stressed homeowners stay in their homes and stave off lawsuits - there are 30,000 already - that threaten the
economic rebound. Pelley's report on this latest chapter in the incredible mortgage meltdown story will be broadcast on "60 Minutes" Sunday, April 3 at 7 p.m. ET/PT.
Like last year, banks are expected to foreclose on a million mortgages this year, a scenario that could generate more lawsuits over mismanaged paperwork. "I think that this litigation could easily get out of control," says Bair. "...We're already feeling like we're falling behind it," She thinks a large clean-up pool funded by the banks that would pay homeowners to accept a bank's ownership claim without a lawsuit is necessary. "I would assume it would be billions [that the fund would need]," Bair tells Pelley.
The problem of bad mortgage documentation emanates from the huge volume of mortgages and banks' failure to keep track of them as they were packaged and sold numerous times while the housing bubble grew. Oftentimes, banks skipped required paperwork, instead relying on paperless computer management.
Bair says banks were sloppy. "It was a matter of cutting corners, not spending enough money and not having quality controls."
http://foreclosuregate.prosepoint.com/story/next-housing-shock-60-minutes-sunday
Federal Deposit Insurance Corporation Chair Sheila Bair tells Scott Pelley banks should be forced to contribute billions to a clean-up fund that will help stressed homeowners stay in their homes and stave off lawsuits - there are 30,000 already - that threaten the
economic rebound. Pelley's report on this latest chapter in the incredible mortgage meltdown story will be broadcast on "60 Minutes" Sunday, April 3 at 7 p.m. ET/PT.
Like last year, banks are expected to foreclose on a million mortgages this year, a scenario that could generate more lawsuits over mismanaged paperwork. "I think that this litigation could easily get out of control," says Bair. "...We're already feeling like we're falling behind it," She thinks a large clean-up pool funded by the banks that would pay homeowners to accept a bank's ownership claim without a lawsuit is necessary. "I would assume it would be billions [that the fund would need]," Bair tells Pelley.
The problem of bad mortgage documentation emanates from the huge volume of mortgages and banks' failure to keep track of them as they were packaged and sold numerous times while the housing bubble grew. Oftentimes, banks skipped required paperwork, instead relying on paperless computer management.
Bair says banks were sloppy. "It was a matter of cutting corners, not spending enough money and not having quality controls."
Banks so poorly handled documentation on millions of mortgages that many today cannot prove that they own the homes they want to foreclose on. The resulting rash of lawsuits from people seeking to save their homes has one of the government's top banking regulators worried that the torrent of litigation will delay the real estate market's recovery.
Federal Deposit Insurance Corporation Chair Sheila Bair tells Scott Pelley banks should be forced to contribute billions to a clean-up fund that will help stressed homeowners stay in their homes and stave off lawsuits - there are 30,000 already - that threaten the
economic rebound. Pelley's report on this latest chapter in the incredible mortgage meltdown story will be broadcast on "60 Minutes" Sunday, April 3 at 7 p.m. ET/PT.
Like last year, banks are expected to foreclose on a million mortgages this year, a scenario that could generate more lawsuits over mismanaged paperwork. "I think that this litigation could easily get out of control," says Bair. "...We're already feeling like we're falling behind it," She thinks a large clean-up pool funded by the banks that would pay homeowners to accept a bank's ownership claim without a lawsuit is necessary. "I would assume it would be billions [that the fund would need]," Bair tells Pelley.
The problem of bad mortgage documentation emanates from the huge volume of mortgages and banks' failure to keep track of them as they were packaged and sold numerous times while the housing bubble grew. Oftentimes, banks skipped required paperwork, instead relying on paperless computer management.
Bair says banks were sloppy. "It was a matter of cutting corners, not spending enough money and not having quality controls."
http://foreclosuregate.prosepoint.com/story/next-housing-shock-60-minutes-sunday
