New Credit Card Laws

Starting today, phase 1 of the new Credit Card Accountability, Responsibility and Disclosure (CARD) Act takes effect. Phase 1 requires credit card companies to give at least a 45 day warning of changes to credit card accounts, allows cardholders at least 21 days to pay their monthly credit card statements without threat of late fees, and gives consumers the right to opt out of interest-rate and fee increases and the right to cancel their accounts while paying off the balances under the old, lower interest rates. Phase 2, slated to take effect starting in February of 2010, will restrict interest-rate increases, ban issuing and marketing credit cards to young adults, and regulate gift cards.

Credit card companies, always so eager to assist consumers in any way they can, have been preparing for these changes by cutting credit limits, closing accounts and increasing interest rates prior to today. Priceless.

Why Are You Still Using Internet Explorer?

Firefox is safer, much faster, and more stable. And their logo looks great on t-shirts.

Firefox 3.5

Mortgage Modification Scams

The U.S. Department of Treasury has issued a consumer advisory regarding loan modification scams. According to the warning, here are the top ten signs of a scam:




“Pay us $1,000, and we’ll save your home.”

“I guarantee I will save your home – trust me.”

“Sign over your home, and we’ll let you stay in it.”

“Stop paying your mortgage.”

“If your lender calls, don’t talk to them.”

“Your lender never had the legal authority to make a loan.”

“Just sign this now; we’ll fill in the blanks later.”

“Call 1-800-Fed-Loan.”

“File for bankruptcy and keep your home.”

“Why haven’t you replied to our offer? Do you want to live on the streets?”

The four page pamphlet can be downloaded here: http://www.occ.treas.gov/ftp/ADVISORY/2009-1.pdf

I'll Give You $1000 For Boardwalk And Park Place

I know that the housing market has us all pretty tense, but who knew it would carry over to Monopoly?

World's Most Amazing Architecture

From MSN Travel

What Does An Out Of Work Subprime Loan Officer Do?

Move on to questionable loan modifications. Somehow, I don't think many of us are surprised.

And if you weren't sure about the intentions of loan mod companies that collect thousands of dollars upfront, here's what one former sales agent says: “Our job was to get the money in and then we’re done." Heartwarming.

When Is Free Not Free?

When it's freecreditreport.com. Yeah, the commercials are cute and that darn jingle just sticks in your head. "Free Credit Report dot com, tell your friends, tell your dad, tell your mom..." But freecreditreport.com (notice I won't hyperlink it for you) is free in the very minimal definition of the word. You get one free report from one credit bureau one time once in your life. After that, it's all about the sales pitch. The government website, www.annualcreditreport.com (this one I will link for you), is where you go to get a free credit report from all three credit bureaus once every 12 months. You get the full report, minus the actual score. To get the score, each bureau charges around $5. So tell me, do you want the sizzle or do you want the steak?

Another Problem With E-Signings

I completed an e-sign on Friday. At first, the borrower's spouse thought an e-sign sounded kind of cool. By the end of it, she was not so impressed. Trying to read their note on a laptop wasn't very easy. The county was wrong on a few docs but we couldn't make the corrections. She wanted a hard copy of the online docs, which meant she'd have to print them out herself after the signing. But near the end of the signing she asked me a very interesting question. "What real proof is there that my husband and I are really here doing the e-sign and clicking through all these documents? You could just sit at home and click through all of this without us being here, couldn't you." Umm, good point. I hope most borrowers would realize when they signed the hard copy docs that certain docs were missing, such as the note. But how do you prove anything? Will e-signs stand up in court?

A few months ago, I did an e-sign where the lender omitted the spouses name on several e-docs. When I called from the signing, my instructions were to proceed as is and that they would make the corrections themselves later. I finished the closing and informed the borrower that the lender would make the needed corrections. As I was leaving, the title company called back and said the lender decided they needed to correct the docs and have the e-sign redone. So later that day I had to drive 30 minutes back to the borrower to e-sign the same docs. What if I'd been lazy? What if I'd thought, "what's the point in driving all the way back just to redo the same docs?" I could have just sat in my office, logged on, and clicked through all the docs to re-sign them electronically. Who'd have known? The borrower already saw all their docs, already e-signed once, and were told the corrections would be made. Really, what proof is there that this was or wasn't done in front of the borrower? There's none.

Reason number 41 why e-signs are flawed.

Happy 4th Of July

Addison Oaks fireworks by Erin Rosebrugh of Anthrophotology.

Housing Market Poised To Return To Normal!!

By 2012 according to BusinessWeek. Yippee.

Why Are We Building New Homes?

According to CNBC, new home and apartment construction rose 17.2% in May, another positive sign that the housing market may be stabilizing. I dunno, shouldn't we be selling the backlog of unsold homes first before building new ones? Just a thought.

Nice Pants?

I've had some strange requests for notarizations over the years, but how about being asked to notarize a document swearing to the length of a 200 foot pair of pants? Hey, we've got a giant Paul Bunyan statue in Michigan, maybe he'd like a new pair of pants.

World's Longest Trousers

Expert Tips For Becoming A Successful Notary Signing Agent

Texas signing agent Brenda Stone has been a leader and mentor in this industry for many years. Much of my marketing has been based on her example. This includes developing a visible web presence and networking with other experienced signing agents. I've talked about the wonderful reverse mortgage e-book that Brenda developed; I believe it's a must read if you're getting started with reverse mortgages. Well, Brenda has now begun sharing her knowledge as a writer for The American Association of Notaries. In addition to a print publication that you can purchase for $19 a year, the AAN provides a FREE monthly e-newsletter. You can sign up for the newsletter here. This month's articles by Brenda (which can be accessed after signing up) include great tips for obtaining notary and document experience. If you're just starting out or still feeling some apprehension about loan signings, I encourage you to sign up.

FBI Prepares For Financial Fraud

With a large amount of money available from government mortgage bailout plans, the FBI is anticipating a wave of fraud and corruption as nefarious scammers look to take advantage of unsuspecting homeowners. Many of us have already seen this, with so called loan modification or foreclosure rescue companies that require thousands of dollars from homeowners hoping to stave off foreclosure. These rescue companies require certified nonrefundable funds up front, with absolutely no promise or commitment to do anything. The FTC has already filed lawsuits against five mortgage modification and foreclosure rescue companies, and also sent warning letters to 71 others "that are marketing potentially deceptive mortgage modification and foreclosure assistance programs."

One legitimate place to find help is through the federal government's Hope Now program at http://hopenow.com.

Credit Card Reform

Despite credit card reforms that are scheduled to take place in 2010, Congress has passed a new reform bill that addresses many unfair and deceptive practices perpetrated by credit card companies. Some of the key components:

Creditors cannot increase the annual percentage rate (APR) during the first 12 months of opening up an account.

Creditors are required to provide consumers with a 45-day advance notice of changes in rates and significant contract changes.

Credit card issuers are prohibited from charging a finance charge based on double billing cycle methods.

Creditors are required to provide a grace period for payments.

Creditors are prohibited from opening a credit card account for any college student who does not have any verifiable annual gross income or already maintains a credit card account with that creditor.

Not surprisingly, credit card companies are not happy with having to show some accountability. They much prefer their current carte blanche status. But don't cry for them. They've already laid out their new plans for going after those with great credit by adding or increasing annual fees, cutting or eliminating cash back and reward programs, and charging interest immediately on a purchase instead of allowing a grace period. I mean, why should credit card companies have to take a hit after decades of abusive practices?

Notarizing Documents In A Foreign Language

I recently received a troubling phone call from an individual who was trying to get a notarization done. The document was written in Spanish. She went to UPS and was told that they could not notarize a document in another language. She went to her bank and was told the same thing. Unfortunately, neither UPS nor her bank have even a basic understanding of a notarization. You don't notarize a document, you notarize a signature. A notary's duty is to identify the signer and witness the signature. The contents of the document is irrelevant as is the language of the document. The notary has no responsibility to understand the contents and there's nothing in the Michigan Statute (I'd guess nothing in any state's statute) that indicates that a document must be in English. For all we care, the document could be written in Klingon. Does the signer understand the document? Great, don't play lawyer. Add the appropriate loose certificate, jurat or acknowledgment, identify the signer, witness the signature, and you've done your job.

More Well Spent Bailout Money

Bailout recipients have once again found an interesting way to spend our money. Over $10 million was spent in the first three months of this year on political lobbyists aimed at blocking executive pay limits and tougher financial regulations. Is that really how our taxpayer money should be spent? The poor decisions and arrogance of these companies just continues to amaze.

Just A Sign Of What We Deal With In Detroit

Even the great leaders (cough cough) of Detroit can't meet their mortgage responsibilities. And this guy's running for mayor:

Detroit Councilman packs up and walks away from mortgage

We Bid Farewell To Another Tax Season

Can We Finally Put Winter Behind Us?