WASHINGTON - American International Group Inc. has settled allegations that it charged excessive mortgage fees and didn’t properly consider homeowners’ credit ratings. AIG, a New York insurance giant that also runs a home-mortgage business, said yesterday that it planned to take a $50 million charge in the second quarter to cover the cost of the settlement with the federal Office of Thrift Supervision. The company had taken a $128 million charge in the first quarter while the settlement was being negotiated.
AIG said yesterday that some of the money would be used to help borrowers with weak credit who face foreclosure after taking out mortgages from AIG Federal Savings Bank between July 2003 and May 2006. AIG Federal Savings is a Delaware-based unit of AIG. Some borrowers may qualify for a refund of mortgage fees instead of a new mortgage, the company said.
Under the terms of the settlement, AIG is required to identify the affected borrowers and provide aid to them. The company also must hire an independent consultant to monitor its process and report back to the government.
AIG also agreed to pay $15 million over three years to nonprofit groups that promote financial literacy and credit counseling.
Nevada’s top reverse mortgage lenders thru April 2007. Look for Wells Fargo’s lead to fall as the year goes on with Bank of America and Countrywide making noise at the party.
CircleLending is in the business of formalizing personal loans. Their website states, For centuries, individuals have been lending money to relatives, friends and business associates. Today the volume of these private loans in the U.S. is over $89 billion, according to the Federal Reserve. Despite this substantial volume, the process of managing private loans can be fraught with hassle, risk and concern. A documentary like view of CircleLending explains why borrowers and homeowners in the know may want to take advantage of this product instead of a reverse mortgage.
Download your CircleLending FREE GuideBorrowing money from family to help buy or refinance your home? Setting it up as an Intra-Family Mortgage keeps money where it belongs - in the family. Download your FREE Intra-Family Mortgage Guide from CircleLending now!
Is there anything that private equity can not do right now?[sarcasm alert] I heard that a couple of hedge funds were looking buy Puerto Rico to put an end to the long time statehood debate. I even heard that private equity was looking to purchase the word, “the” and charge a $.05, per use, copyright fee to authors. The New York times sheds some led on how private equity is swooping in to make some big bets on fallen or broke subprime lenders. Of note, banks and lenders focusing on reverse and other niche mortgages, that maintain good cash flow, can not be far behind.
Private equity is swooping in and taking over the subprime mortgage business, seeing opportunity amid the wreckage.
The subprime mortgage business is in tatters: loan volume is plummeting, defaults are rising and some of the biggest lenders have cut back or shut down.
Colorado’s top reverse mortgage lenders thru April 2007. Look for Well Fargo’s lead to fall as the year goes on with Bank of America and Countrywide making noise at the party.
Georgia’s top reverse mortgage lenders thru April 2007. Look for Financial Freedom’s lead to fall as the year goes on with Bank of America and Countrywide making noise at the party.
Massachusetts’ top reverse mortgage lenders thru April 2007. Look for Wells Fargo’s lead to fall as the year goes on with Bank of America and Countrywide making noise at the party.
As a side business, I love to trade domain names. As a domain trader its always important to be 5 steps ahead of the “big dumb corporation”. So how does it feel when the big boys over at Countrywide beat me to the punch and purchased the domains, simpleequity.net and simpleequity.org? Not good, especially considering that Countrywide may have been willing to pay handsomely for such domains. Check out the domain registration info.
Sunwest a mortgage company located in California, has introduced their own proprietery reverse mortgage called the Cash Keeper. Seniors can use this loan for 2nd homes, oh my! Sunwest says, “This special type of home loan lets homeowners convert a portion of his or her home equity into cash providing for a secure financial future. Without selling the home, giving up title, or taking on a new monthly payment senior homeowners have the benefit of maintaining a lifestyle they have earned. The money from the reverse mortgage provides seniors with the financial security they need to fully enjoy their retirement years.”
Cash Keeper™ Features:
When we retire, the only thing that concerns us is to have a peaceful and relaxing day in your own house but how can you do this if your only source of income is your pension and you have tons of bills from hospitals and other maturing debts that you have to pay?
The answer is Wells Fargo Reverse Mortgage because it is not just a typical loan Wells Fargo Reverse Mortgage will be the one who will give you the money instead of the other way around and the requirements is simple, you just have to be 62 and above and be the owner of a house that has met the minimum property standards of The Department of Housing and Urban Development (HUD).
There are many benefits in getting a Wells Fargo Reverse Mortgage. First, as we pointed out earlier the lender will be the one giving you money. Wells Fargo Reverse Mortgage will turn your house into a source of income rather than it giving you additional expenses. Instead of having an idle investment (your house) you will be able to convert it to money trough Wells Fargo Reverse Mortgage. (more…)
