May 10, 2011

Last year, Robin Gordon of Marietta received some very unexpected and troubling news from her mortgage company; a tax lien had been placed on her midtown Atlanta rental property without her knowledge. Robin expected to have her mortgage paid in full in the near future, and was alarmed to learn of the encumbrance on her property title, her risk of losing the property and the implications a lien would have on her credit history. Even more confusing was that she had received no notice about an outstanding tax debt from either her bank or the Fulton County Tax Commissioner. To her knowledge, all of the taxes had been paid in full through an escrow account at SunTrust Mortgage Company. Read more

February 24, 2011

We here at Georgia Watch recently became aware of a great resource for homeowners seeking an honest, efficient home contractor. The National Center for the Prevention of Home Improvement Fraud (NCPHIF) is a nonprofit based in Atlanta that works to eliminate home contractor fraud. We spoke with NCPHIF executive director Phae Howard to learn more about this increasingly prevalent issue.

What is home improvement fraud and what got you involved in helping consumers avoid it?
Howard: My grandmother was financially and emotionally victimized by an unscrupulous contractor. I don’t know how much money she lost, but I absolutely remember the pain in her face. That will be with me always. After years of hearing stories about people being taken advantage of, I realized that, like my grandmother, many homeowners are not equipped with the information and resources to avoid becoming a victim of home improvement or home repair contractor fraud. That is why it is my personal goal, and the mission of NCPHIF, to arm potential victims with necessary tools to avoid similar situations. Read more

Are you behind on your mortgage payments or struggling to make payments? If yes, and you have a Fannie Mae-backed mortgage, you now have another resource in metro Atlanta.

Fanny Mae recently opened the Atlanta Mortgage Help Center, which according to a news release, will offer “free access to high quality counseling and in-person resolution of their particular mortgage circumstances.” Read more

ATLANTA – The House Judiciary Committee passed SB 57 Thursday after adopting a number of amendments that weakened core provisions of the legislation. The bill is the only attempt that the legislature has moved forward that addresses the careless underwriting practices that led to the mortgage lending collapse of the past several years.

“We’re disappointed that the bill has been watered down,” said Danny Orrock, Deputy Director of Georgia Watch. “Under the Judiciary substitute, an important provision requiring creditors to verify that a borrower can repay a subprime loan was weakened. This is exactly the sort of mentality that caused the subprime meltdown.”

The Judiciary committee included language that would protect creditors from being held liable for ignoring the risk of foreclosure to a borrower so long as the total monthly cost to service the debt is less than 50 percent of the borrower’s gross monthly income.

Additionally, a section of the bill that would have banned yield spread premiums (YSPs) on subprime and FHA loans was removed. It was replaced with language that allows YSPs to be paid as long the kickback is reflected in a good faith estimate to the borrower. But such disclosure is convoluted at best, as it allows YSPs to be lumped in with other closing costs and appear as both a credit and a charge to the borrower.

“The Senate banned the kickbacks on subprime and FHA loans to mortgage brokers known as yield spread premiums,” Orrock said. “But the language on yield spread premiums from the Judiciary Committee is a loophole that allows mortgage brokers to play games with disclosures and continue to generate kickbacks for steering borrowers towards unsuitable loans.”

SB 57 now sits in the House Rules Committee, which will determine when it goes to the floor and the terms of the debate.

By Beth Malone

We’re in a housing crisis – one that hasn’t even hit its peek. The middle class is starting to feel the direct effects of foreclosure as the balloon that is their adjustable rate loan, bursts. That means more foreclosures to come in 2010. Read more

The Mortgage Bankers Association released their 2009 4Q mortgage loan delinquency rates last week. The report finds that of Georgia’s 1,654,728 mortgage holders, 17.1 percent are delinquent or in foreclosure. Additionally, 41.38 percent of the state’s mortgage holders with subprime loans were delinquent or in foreclosure at the end of 2009, as compared to 11.68 percent of those with prime loans. Read more

The Road to Reform, the second installment of a two-part series on Georgia’s current foreclosure crisis. As a follow-up to The Rippling Effects of Foreclosure released in January 2010, the report details previously enacted reforms in our state; amended fair lending acts in New York and North Carolina; and Senate Bill 57, pending legislation that would implement common-sense underwriting standards in Georgia and combat hazardous lending. Read more

By Beth Malone and Danny Orrock

The flooded streets and damaged homes resulting from the storms that pummeled the state in September should serve as a wake-up call to us all. Some of you may be asking: Why didn’t I know my property was vulnerable to flooding? Why had I never thought to purchase flood insurance? Many of us now know whether or not to purchase flood insurance, however countless more remain in the dark. Read more

Georgia currently ranks 7th in the nation for foreclosures. The following is a list of a few other startling facts that have resulted from the housing crisis. Read more

General intent:

SB 57 addresses financial incentives that brokers and others use to guide borrowers into unsuitable loans. The bill helps prevent factors that contributed to meltdown in the subprime market. Read more

Georgia Watch hosted a rally with clergy leaders from across the Metro area on Friday December 4th. Thanks to all those who came out to help advocate for the end of inappropriate home loan lending. High-interest loans with careless and abusive provisions are the major cause of the current housing crisis. Irresponsible lending needs to end with common sense reform and Georgia families need to stay in their homes! Read more

PASOS PARA SALVAR SU HOGAR Y PREVENIR EL EMBARGO HIPOTECARIO Read more

By Georgia Watch Deputy Director Danny Orrock
The flooded streets and damaged homes resulting from this week’s storms should serve as a wake-up call to Georgia.

Development often alters hydrology and may bring new areas into the flood plain — areas previously considered dry. At any given moment the flood plain maps for our communities may become obsolete due to new construction. Read more

Atlanta Business Chronicle, September 22, 2009
Georgia, which has been rocked by a high rate of foreclosures in recent years, was given a “D” in housing and home ownership in the Corporation for Enterprise Development’s (CFED) 2009-2010 Assets & Opportunities Scorecard published Tuesday.

The bi-annual assessment of the financial security of households and individuals said Georgia must take several steps to improve financial security, including protecting the real estate market from predatory mortgage lending…more

New report details escalating number of homeowners with negative home equityA report released mid-August by First American CoreLogic detailed more trouble ahead for Georgia homeowners and the state’s unsteady housing market. The numbers released by CoreLogic reiterate the necessity for mortgage reform in the state. Read more