Mortgage News

Business headlines across the country repeatedly stress that the US housing market is on the rebound following the worst collapse in history in 2008.  However, property values are not rising consistently across the country, and the reality of the housing market further highlights the divide between rich and poor Americans.

Banks and financial institutions will promote reverse mortgages as alternative means of financing, particularly to seniors who are the target demographic.  However, research conducted by the Consumer Financial Protection Bureau says the ads used by lenders to promote reverse mortgages are misleading.

The Department of Justice spent several years investigating financial lending firms in response to the subprime mortgage crisis that triggered the 2008 recession.  The DOJ successfully negotiated settlements with banks like Bank of America, JP Morgan, Citigroup, and Wells Fargo.

Homeowners with properties worth less than the mortgage on the home, known as being underwater, often acquire secondary loans in the form of home equity lines of credit.  These are known as “junior liens” and use the value of the property as collateral.