Fannie Mae asks Uncle Sam for $4.6 billion more

Fannie Mae asks Uncle Sam for $4.6 billion more

Fannie Mae is short $4.6 billion and it wants the U.S. government to foot the bill.

The mortgage giant reported a net loss of $2.4 billion in the fourth quarter of 2011 after it got slammed by falling home prices. To offset the deficit that helped cause, its regulator, the Federal Housing Finance Agency, plans to submit a request to the Treasury for $4.571 billion, Fannie Mae said Wednesday.

The government rescued Fannie and sibling company Freddie Mac in September 2008 to cover their losses on soured mortgage loans. Since then, the FHFA has controlled their financial decisions.

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Citigroup pays $158M to settle mortgage fraud

Citigroup pays $158M to settle mortgage fraud

Citigroup has agreed to pay $158.3 million to settle claims that its mortgage unit duped the U.S. government into insuring risky mortgage loans for over six years.

The government said Wednesday that Citi Mortgage certified 30,000 mortgages for insurance provided by the Federal Housing Agency and submitted many certifications that were “knowingly or recklessly false.”

More than a third of those mortgage loans went into default, resulting in millions of dollars in losses for the government because of the insurance claims.

Read More on the Seattle Times…

$25 billion mortgage relief deal reached

$25 billion mortgage relief deal reached

American homeowners can breathe (a small) sigh of relief. The U.S. announced a $25 billion deal Thursday with the nation’s largest banks - after more than a year of bickering and about-faces – that would provide some help for people struggling to pay their mortgages.

The settlement comes after evidence emerged late in 2010 that banks robo-signed thousands of foreclosure documents without properly reviewing paperwork. The Obama administration hopes the pact will open a new avenue for housing relief because it will force the banks to write down mortgages at a time when roughly one in four borrowers owe more on their mortgage than their home is worth.

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$25 billion mortgage deal goes to states

$25 billion mortgage deal goes to states

The nation’s five largest mortgage lenders have agreed to overhaul their industry after deceptive foreclosure practices drove homeowners out of their homes, government officials said Monday.

A draft settlement between the banks and U.S. states has been sent to state officials for review.

Those who lost their homes to foreclosure are unlikely to get their homes back or benefit much financially from the settlement, which could be as high as $25 billion. About 750,000 Americans – about half of the households who might be eligible for assistance under the deal – will likely receive checks for about $1,800.

Read More on KomoNews.com…

Foreclosure deal with banks is ‘very close,’ HUD’s chief says

Foreclosure deal with banks is ‘very close,’ HUD’s chief says

The government and banks are “very close” to reaching a legal settlement over alleged foreclosure abuses that could help about 1 million underwater borrowers get mortgage relief, U.S. Housing and Urban Development Secretary Shaun Donovan said on Wednesday.

“We’re very close to a settlement that would both fix the servicing problems, but also help over a million families around the country stay in their homes and get help,” Donovan said in response to a question during a forum at the Winter Meeting of the U.S. Conference of Mayors in Washington.

Talks between federal and state officials and major lenders aimed at resolving allegations of illegal foreclosure practices have dragged into their second year.

Read More on MSNBC.com…

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