Just as the industry steps up efforts to convince Washington to extend the $8,000 federal tax break for first-time homebuyers, news has surfaced that the housing stimulus program could be fraught with fraud. Of the 1.4 million taxpayers who have received the benefit, the IRS is reportedly investigating over 100,000 suspicious claims. The chair of the House Ways and Means oversight subcommittee plans to hold a hearing Thursday to look into accusations involving abuse of the homebuyer tax credit.
The U.S. Department of Justice has asked a federal judge to stop Lend America from issuing mortgages insured by the Federal Housing Administration (FHA). The complaint filed in a New York federal court, alleges the lender falsely certified that borrowers who received over $14 million in loans met FHA's lending requirements.
A leading bank analyst said the shares of Fannie Mae and Freddie Mac are essentially worthless, suggesting that the best option for the mortgage lenders is to recapitalize them as cooperatives owned by the banks that benefit from their services in the secondary market. An analyst team at Keefe, Bruyette & Woods cut its price targets on both GSEs' stocks from $1 to zero, as it advocated the idea of setting up a Bad Fannie and Bad Freddie with their existing portfolios.
Banks booked some gains on formerly toxic assets in the third quarter as values improved, but uncertainties about underlying assets remain. Specifically, Citigroup and JPMorgan Chase realized billions of dollars in gains from distressed assets - a good sign when you consider the $1 trillion in writedowns globally on troubled loans during the crisis.
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Rob Alley, Realtor
Keller Williams Realty
540-250-3275
roballeyrealtor@gmail.comhttp://www.charlottesvillevarealestate.blogspot.com http://www.robsellscharlottesville.comOh, by the way, I am never too busy to work any of your referrals.
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Licensed to Sell Real Estate in the Commonwealth of Virginia
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