Manipulating The LIBOR - Is This Slipping Under The Radar?

The Justice Departments for the U.S., U.K., Japan, and Canada are currently investigating whether the world's largest banks conspired to manipulate the LIBOR index.  The LIBOR (London Interbank Offered Rate) is the index used by many lenders to determine the interest rate of their adjustable rate mortgages.  Maybe this isn't big news yet because it's just in an inquiry stage, but this has the potential to be a powder keg.  Controlling the LIBOR rate would be the ultimate in insider trading.  Banks and traders could potential make millions (billions?) by knowing the direction of the LIBOR in advance.  Stay tuned, this could get ugly. 

You Know What Isn't Short About A Short Sale? The Process.

If you've ever closed a loan for a short sale, you've probably heard the stories from the parties involved.  A process that took from six months to a year, endless delays, re-verification, etc...  In an attempt to speed up the process, three Senators have proposed a bill aimed at shortening the short sale timeline.  The bill, called the Prompt Notification of Short Sale Act, requires a written response from a lender within 75 days after the buyer's request.  The lender’s response must "specify acceptance, rejection, a counter offer, need for extension, and an estimation for when a decision will be reached."  the bill also proposes a $1000 penalty if the Act is violated.  

Quicken Loans Continues To Invest In Detroit

Those of us here in the Detroit area have seen a massive commitment to the city by Quicken Loans and their chairman, Dan Gilbert.  In addition to moving their headquarters to Downtown Detroit, Dan Gilbert has been on buying spree.  His purchases include:


The Madison Theatre Building
The Chase Tower
The Two Detroit Center parking structure
The First National Building
The Dime Building
Several additional Woodward Avenue properties 

He also has the rights to develop the former Hudson's department store site.  In total, Gilbert now owns approximately 1.6 million square feet of property in Detroit, making him the third largest landlord in Detroit, behind only the city itself and General Motors. The plan is to quickly develop and renovate the sites.   

And in a more subtle move, Quicken loans has begun quietly servicing more loans instead of transfer the servicing to other lenders, leading to more local jobs.  Quicken has had several hiring sprees over the last 12 months, and plans to add up to 1000 more people in the next 6 months.

The lending industry has been roundly (and in most cases, rightfully) criticized over the years for their practices.  But let's give credit where credit is due.  Dan Gilbert and Quicken Loans have made a huge commitment to revitalizing Downtown Detroit.  Major kudos to Quicken.

BBB - Top 10 Scams

The Better Business Bureau lists the top 10 scams for 2011:

Top Job Scam - Online applications that ask for your information.

Top Sweepstakes and Lottery Scam - Requiring you to SEND money first in order to receive your money.

Top Social Media/Dating Scam - Videos that look like they come from a friend may actually be viruses.

Top Home Improvement Scam - They knock on your door and offer an instant deal.

Top Check Cashing Scam - Someone purchases an item from you online, sends you too much, and asks you to deposit the funds and wire them back the difference.

Top Phishing Scam - Email or phone call claiming to be from The National Automated Clearing House Association asking for banking information.

Top Identity Theft Scam -You're staying at a hotel.  The phone rings in the middle of the night.  The caller claims to be from the front desk, says their computer crashed or that they need to verify your credit card number.  Only they're not really from the hotel.

Top Financial Scam - Debt assistance companies that ask for money up front.

Top Sales Scam - Penny Auctions

Scam of the Year - The BBB Phishing scam!!  Emails that pretend to be from the BBB, asking for information about you or your business.  Oh the irony.

Housing Crisis To End?

According to Capital Economics, banks are loosening credit, increasing the dollar amount of of loans based on borrower's earnings, and loosening loan to value ratios. 

5 Steps For Improving Your Online Social Reputation

From The Kudzu Business Success Center:

1. Consistency (consistent social identity across platforms)
2. Find Your Brand (determine what you want your digital reputation to look like)
3. Own Your Name (track your online reputation)
4. Get Some Help (utilize available tools to help monitor your online identity) 
5. You Aren't A Robot (humanize your brand using social media) 

Does Money Motivate People?

Bank Of WHITE America?

Bank of America today agreed to pay a record $335 million to settle a lawsuit claiming they discriminated against minority home-buyers.The suit charged that Countywide (purchased by B of A) charged higher interest rates and fees to African-Americans and Hispanics and steered them to more expensive sub-prime loans even though they qualified for conventional loans.  U.S. Attorney General Eric Holder said that the investigation found a widespread pattern of discrimination against more than 200,000 people in 41 states.

The BBB Is NOT Investigating You

There's a new malicious email going around.  If you receive an e-mail claiming to be from the Better Business Bureau about a complaint filed against you, DO NOT click on the link.  It's a fake.  The bad English always gives it away.  The e-mail states "The Better Business Bureau has been filed the above-referenced complaint from one of your clients regarding their dealings with you.  The detailed information about the consumer's concern is explained in enclosed document..." 

Forward the email to phishing@council.bbb.org , and delete it immediately.  

Forget Black Friday

Shop Small.  Small Business Saturday is November 26th. 

Michigan Supreme Court OK's Foreclosure By MERS

The Michigan Supreme Court has ruled that it is legal for Mortgage Electronic Registration Systems (MERS) to foreclose by advertisement.  The ruling overturns a prior Appeals Court decision.  MERS was developed as a way to keep track of the servicing rights on home loans.  Though MERS is not a lender, they foreclosed on properties as an agent for lenders.  The Appeals Court had ruled that MERS did not meet the requirements under state statute to foreclose by advertisement. The decision threw thousands of foreclosures into question and caused many title companies to cancel closings due to concerns about insuring the title on a bank-owned home involving MERS.  But the Michigan Supreme Court ruled that MERS has an interest in the debt and acted properly under Michigan law.

Fannie Mae Wants $7.8 Billion More

Fannie Mae has asked U.S. taxpayers to cover $7.8 Billion in loses.  Those loses are for a THREE MONTH PERIOD from July to September (so you can be sure they'll be back asking for more every three months).  Taxpayers have ALREADY shelled out $169 billion to keep Fannie and Freddie afloat ($112.6 Billion to Fannie Mae).  And in the "Oh no you really didn't say that" category, Fannie's president and CEO Michael Williams actually said "Despite these challenges, we are making solid progress."  You believe him, right?   

Earning Cash With A Side Job

From Yahoo business advisor, 5 ideas for starting a side business:

Social sales. Mary Kay, Pampered Chef, Tupperware, and Stella & Dot allow a flexible schedule and start up can be quick.

Freelancing. You may have a marketable skill that fills a need such as writing/editing, animal care, cutting hair, being a DJ, organizing homes, translation, video production, and mowing lawns.

Online stores. Selling items you make or collect.

Consulting. you may have an expertise that can fill a need. Consulting, tax preparation, personal finance advise, wedding preparations, Internet marketing, computer troubleshooting, public speaking, and interior design are just a few examples.

Teaching. Ideas include yoga instructor, fitness trainer, music instructor, foreign languages, academic tutoring, dance, etc.

President Obama Plans To Announce New Mortgage Initiative

This week, President Obama plans to announce new mortgage rules intended to make it easier for more Americans to refinance their homes.  Administrators have been working with the Federal Housing Finance Agency to loosen lending under the Federal Home Affordable Refinance Program (HARP).  The changes include letting banks avoid the risk of any "buy-back" on HARP mortgages as long as borrowers have made their last six mortgage payments and can show they have a source of income.

The Best Notary Stamp Money Can Buy

I just received my Brother 2260 Elite Notary Stamp from Notary Rotary (see the post below for why I needed a new stamp).  Notary Rotary bills it as "the best notary stamp money can buy."  After trying it out, I can see why.  The stamp takes very little exertion to leave an impression.  And the impression it does leave is crystal clear every time.  No smudging, no smearing.  I'm embarrassed to admit that I'm actually a bit excited about my new notary stamp.  Yep, it's the little things...

Notary Lesson Number 372

If you're going to use the roof of your car to notarize something, remember not to leave your notary stamp on top of the car when you drive away.  Otherwise you end up with a stamp that's in a thousand pieces.  Lesson learned!  

Bank of America's Website Has Not Been Hacked, Your Info Is Safe!!

But curiously, their site has been having serious issues since their Friday announcement that they would be adding a $5 monthly service fee to debit card users.  Hmmm.

A Little Housekeeping

There are several articles I've meant to post over the last few weeks.  They're late, but they're still relevant:

Bank of America is eliminating 30,000 jobs, the largest single cut by a U.S. company this year.  The cuts equal about 10% of their workforce. 


Our U.S. Government (Fannie, Freddie, & FHA) is currently sitting on 248,000 foreclosed homes, equal to almost a third of all repossessed homes.  And they have no idea what to do with them. 


Speaking of our U.S. Government, regulators for Fannie Mae and Freddie Mac are planning to sue more than a dozen banks for misrepresenting the quality of mortgage securities created and sold during the height of the housing bubble.  Those banks include Chase and Bank of America among others.  If you're keeping score, yes, these are the same banks that received billions of dollars from Uncle Sam.

And starting October 1st, FHA will require mortgage servicers to place certain borrowers into trial modifications before collecting a fee for the loan modification. The trial modification will be required for borrowers who miss one mortgage payment twice in the last year, fell 90-days delinquent in the past three years, defaulted within 90 days of the last foreclosure prevention workout, or spend more than 80% of their income on debt repayments.

Short Sale & Foreclosure Prevention Seminar

The city of Southfield will sponsor a Short Sale and Foreclosure Prevention Seminar from 6:30-8 p.m. Thursday, Sept. 15, in the Southfield Public Library meeting room, 26300 Evergreen Road...continued

Explaining Fannie Mae & Freddie Mac

From The Detroit Free Press:

Fannie Mae and Freddie Mac are publicly traded companies that guarantee the majority of new mortgages in the U.S.  Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (the Federal Home Loan Mortgage Corp.) were taken over by the government in 2008 after billions of dollars in losses and years of mismanagement at a cost to taxpayers of $141 billion.
Fannie and Freddie operate in the U.S. secondary mortgage market. They don't sell mortgages directly to homeowners; they buy mortgages from banks and other lenders, which can use the money to issue new home mortgages.

Continued...