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Posts Tagged ‘calabria’

Foreclosure Recidivism

October 22nd, 2012 Comments off

According to Mark Calabria, director of financial regulation studies at the Cato Institute, data collected by Lender Processing Service (LPS) reveals that for the first time, more than half of the borrowers in foreclosure have been in foreclosure previously. Writing in FinanceTownhall, Calabria says while first-time foreclosures have been falling since 2009, foreclosures overall are rising because of borrowers who have been delinquent for years. The data also reveal the average time to foreclosure in Chicago, for example, is over 1,000 days. States that require a judicial process for the procedure have the highest rate of repeat foreclosures. He concludes staving off foreclosure makes the matter worse. “Had these borrowers finished the foreclosure process the first time around, housing prices would have adjusted quicker and the housing market would have been on the road to recovery quicker. These families also would not have been stuck in “limbo” and would have been able to move on with their lives,” he says. MHProNews has learned LPS provides mortgage and consumer loan processing and settlement services, and loan performance analytics for the real estate industry and government offices.

(Image credit: Condometropolis)

Dodd-Frank not Likely to Vanish

September 11th, 2012 Comments off

BloombergBusinessWeek says while Republican presidential candidate Mitt Romney has vowed to repeal Dodd-Frank, it’s more likely he would water down some of the restrictions on the most lucrative and profitable investments while providing sufficient oversight to protect the banks. Specifically, banks would toss restrictions on investments in private equity and hedge funds, reduce the reach of the Consumer Federal Protection Bureau (CFPB), and block the Volcker Rule. MHProNews has learned Matthew Albrecht, an analyst with Standard & Poor’s, says the eight biggest U.S. banks could lose between $22 billion and $34 billion due to Dodd-Frank. Mark Calabria, a former Republican Senate aide, says, “From a bank’s perspective, you’d rather have piecemeal reform of Dodd-Frank, not only because there are things in the law you want to keep, but also because you’re going to have more control over the process.” Bank executives are aware of the public’s anger in its role in causing the recession and publicly may favor Dodd-Frank while their lawyers fight behind the front line to weaken the rules.

(Image credit: BloombergBusinessWeek)