Hillary: Bailout Must Help Homeowners

So-called rescue firms promise to negotiate lower rates, then take money and run

(NEWSER) - Mortgage brokers who made a mint during the housing boom setting up homeowners in toxic loans are now profiting from a different sort of shady deal. So-called foreclosure rescue firms are proliferating across the US, taking money upfront and promising to negotiate with homeowners’ banks for better interest rates. Instead, they mostly take the money and run. And so far, states have been largely powerless to stop them, reports Pro Publica. More»

Criteria keep many who need help from refinancing under the plan

(NEWSER) - A large swath of Americans will see no help under the Obama administration’s housing rescue plan, the New York Times reports. While designed to prevent 3 million to 4 million foreclosures through loan modifications, the plan doesn't cover those whose loans aren’t backed by Fannie Mae or Freddie Mac, or those who owe more than their home’s value on loans more than $729,750 through other lenders. More»

(NEWSER) - More than 20% of Americans with home mortgages owe more to their lenders than their homes are worth, a 2% rise since September, the Washington Post reports. The hardest-hit state was Nevada, where 55% of homeowners with mortgages have negative equity. These 8.3 million homeowners nationwide are much more likely to enter foreclosure; another 2.2 million are at risk of being “underwater,” in industry parlance. More»

Lawmakers want employers to prove credit reports are necessary

(NEWSER) - Several states and Obama administration officials are seeking restrictions on employers that unfairly screen out job applicants using credit checks, USA Today reports. Spiking unemployment and mortgage foreclosures brought on by the financial crisis have hurt many, and lawmakers say trustworthy people are being shut out of good jobs. Some 43% of US employers check applicants for overdue payments, up from 36% in 2004. More»

A growing majority blames financial crisis on deregulation

(NEWSER) - A clear majority of Americans approve of Washington taking firm steps to intervene in the nation's struggling economy, a Los Angeles Times poll finds. Two-thirds favor tighter restrictions on financial institutions and 60% back help for homeowners facing foreclosure. A huge 87% blamed deregulation for the economic crisis—up 25% from a similar poll in September. More»