October 24th, 2013
The big news this week are the lawsuits against BofA and J.P. Morgan Chase. We’ll also look at 5 things you’re doing that are hurting you financially. Home prices are on the rise again, and we’ll talk about how Blackstone Funding group managed to create the largest single-family rental business in the U.S.
The big news across all the financial media is that BofA committed fraud when they sold sub-prime mortgages to Fannie Mae and Freddie Mac in a program they called The Hustle. The mortgages were originally acquired from when BofA purchased and merged with Countrywide.
The jury also found that Rebecca Mairone, a former Countrywide Financial Corp. executive, was liable for fraud for her role in leading the Hustle loan-processing program.
The trial lasted approximately one month. Investors are also currently suing J.P. Morgan for $5.75 billion.
Credit.com posted a useful list on Yahoo Finance of 5 things you’re doing that could be negatively affecting your credit score.
Home prices posted a 19th consecutive monthly gain in August the Federal Housing Finance Agency (FHFA) said on Wednesday. FHFA’s purchase only Home Price Index (HPI) rose 0.3 percent on a seasonally adjusted basis from July but the 1.0 percent increase previously reported for July was revised down to 0.8 percent.
The FHFA index is calculated using home sales price information from mortgages sold to or guaranteed by the government sponsored enterprises Fannie Mae and Freddie May.
Blackstone Group LP spent $7.5 billion acquiring 40,000 houses over the last two years creating the largest single-family rental business in the U.S. The private-equity firm is now planning to sell bonds backed by lease payments.
Blackstone Group created their Invitation Homes division in April 2012 to buy and renovate properties to lease, is double the size of American Homes 4 Rent which is the next in line.
The properties are located in states such as California, Arizona, Florida and Nevada where the number of foreclosures was quite high.