702.12, F.S. – Florida Passes Bill to Stop Bankruptcy Debtors From “Having Their Cake and Eating It Too”

702.12, F.S. – A new Florida law signed Monday will allow documents filed in federal bankruptcy proceedings to be admitted as evidence in foreclosure cases, barring homeowners who have agreed to surrender property in bankruptcy court from challenging foreclosure proceedings on the property. Florida Gov. Rick Scott signed S.B. 220 into law, which authorizes lienholders to introduce into a foreclosure proceeding bankruptcy documents showing a debtor surrendered the property at issue in the foreclosure. 702.12, F.S. Actions in Foreclosure. (1)(a) … Continued

Barclays Agrees to Pay $2 Billion in Civil Penalties to Resolve Claims for Fraud in the Sale of Residential Mortgage-Backed Securities

Two Former Barclays Executives Agree to Pay $2 Million to Resolve Claims Brought Against Them Individually The United States has reached agreement with Barclays Capital, Inc. and several of its affiliates (together, Barclays) to settle a civil action filed in December 2016 in which the United States sought civil penalties for alleged conduct related to Barclays’ underwriting and issuance of residential mortgage-backed securities (RMBS) between 2005 and 2007.  Barclays will pay the United States two billion dollars ($2,000,000,000) in civil … Continued

Liquidity Crisis in the Mortgage Market

Abstract Liquidity Crisis – Nonbanks originated about half of all mortgages in 2016, and 75% of mortgages insured by the FHA or VA. Both shares are much higher than those observed at any point in the 2000s. We describe in this paper how nonbank mortgage companies are vulnerable to liquidity pressures in both their loan origination and servicing activities, and we document that this sector in aggregate appears to have minimal resources to bring to bear in a stress scenario. … Continued