The Washington Independent

Posts Tagged strategic default

Conyers, Kaptur Bash Fannie for Penalizing Strategic Defaulters

By | 08.13.10 | 5:12 pm

This week, Reps. John Conyers (D-Mich.) and Marcy Kaptur (D-Ohio) sent a letter to Treasury Secretary Timothy Geithner and Edward DeMarco, the head of the Federal Housing Finance Agency, asking them to justify Fannie Mae’s policy of penalizing or suing strategic defaulters — those who can pay their More…

What the Rich Say About Strategic Default

By | 07.09.10 | 11:10 am

The New York Times and CoreLogic examined the data, and found that the rich are more likely to purposefully default on their mortgages — to “strategically default” — than lower-income homeowners:

More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent,

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Strategic Default Penalties Threaten Struggling Homeowners

By | 06.25.10 | 6:00 am

On Wednesday, Fannie Mae, the government-sponsored enterprise that buys up mortgage contracts from loan originators to keep the housing market liquid, announced new penalties for homeowners who strategically default. “Defaulting borrowers who walk away and had the capacity to pay or did not complete a workout alternative in More…

Former Fannie Exec Batters HAMP as a Failure

By | 06.24.10 | 4:50 pm

Today, Edward Pinto, Fannie Mae’s chief credit officer from 1987 to 1989 and a prominent housing consultant, testified before the House Oversight Committee on the question of whether loan servicers are doing enough to prevent foreclosure and preserve homeownership. His bottom line: The Treasury Department’s Home Affordable Modification Program, More…

Fannie Mae Penalizes Strategic Defaulters

By | 06.23.10 | 7:46 pm

Fannie Mae, the ailing government-sponsored entity that buys mortgages on the secondary market, has bumped up penalties for strategic defaulters. Now, it will lock out anyone who could afford to pay her mortgage but chooses not to, and defaults instead, for seven years.

It is not entirely More…

When Underwater Homeowners Walk Away

By | 06.22.10 | 11:14 am

Despite the media and political attention paid to strategic default, we actually don’t know that much about it. The phenomenon is as old as the Great Depression, but has not been common in decades. We do not know how prevalent it has become. We do not know the More…

House Bill Penalizes Strategic Defaulters

By | 06.18.10 | 5:39 pm

Last week, I noted that House Republicans had introduced a motion to penalize strategic defaulters — underwater homeowners who simply stop paying their mortgages and surrender their homes to the bank — by barring them from obtaining Federal Housing Administration-backed loans in the future. I hadn’t noticed until More…

The State of the Nation’s Housing Market

By | 06.14.10 | 4:35 pm

Today, Harvard’s Joint Center for Housing Studies released its 2010 report on the state of the American housing market. The verdict? Not good, if stable. The bottom line:

The nation has not faced housing problems of this magnitude since the Great Depression. Heavy job losses and lingering high unemployment

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House Republicans Target Strategic Defaulters

By | 06.10.10 | 5:45 pm

HuffPo’s Ryan Grim reports that House Republicans have introduced a motion to penalize strategic defaulters — underwater homeowners who simply stop paying their mortgages — by barring them from obtaining Federal Housing Administration-backed loans in the future. Grim explains the Republican maneuver:

The GOP offered its provision as

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J.P. Morgan Warns of Losses From Strategic Default

By | 05.12.10 | 8:39 am

Shahien Nasiripour at the Huffington Post parses a J.P. Morgan filing with the Securities and Exchange Commission and notes that the bank, the second largest in the United States, is concerned about the rising tide of strategic defaulters — underwater homeowners who choose to walk away from their homes. More…