As expected, Cheronda Guyton's novel solution to the problem of REO maintenance cost her a job, as Wells Fargo fired the vice president in charge of foreclosures for not-so-quietly living in a multi-million-dollar Malibu beach house that had been repossessed from victims of the Bernard Madoff ponzi scheme. "We deeply regret the activities that have taken place as they do not reflect the conduct we expect of our team members," Wells Fargo said in a statement announcing the personnel move.
An Illinois-based hedge fund is spearheading a move by mortgage investors to demand greater federal protection and compensation for allowing modifications to loans in their portfolios. The push reflects a deeper fear among investors that loan modifications are failing.
On the same day President Barack Obama took his case for financial regulatory reform to Wall Street, the plan's chief ally in Congress said he was working with industry professionals on a bill to create a new consumer-protection agency. As the U.S. economic crisis recedes and markets begin to recover, the administration and lawmakers are advancing a program of regulatory reform that they say will prevent the greed, corruption and systemic risk seen as major causes of the downturn.
The labor market has replaced housing as the dark cloud on the economic horizon, Freddie Mac economists said, but there are hopeful signs even as the jobless rate continues to rise. The GSE's report says indicators provide further evidence that housing markets are stabilizing and that the sector is less of a drag on the economy.
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