New York Paralegal Blog

NEW YORK – The United States has filed a civil mortgage fraud lawsuit against Deutsche Bank AG and its wholly owned subsidiary, MortgageIT Inc.  The government’s complaint seeks damages and civil penalties under the False Claims Act for repeated false certifications made to the U.S. Department of Housing and Urban Development (HUD) in connection with the residential mortgage origination and sponsorship practices of MortgageIT.  To date, the Federal Housing Administration (FHA) has paid insurance claims on more than 3,100 mortgages, totaling $386 million, for mortgages endorsed by MortgageIT.   Today’s announcement was made by Preet Bharara, U.S. Attorney for the Southern District of New York; Tony West, Assistant Attorney General for the Justice Department’s Civil Division; Helen Kanovsky, General Counsel of HUD; and Michael P. Stephens, Acting Inspector General of HUD.   According to the government’s complaint filed today in Manhattan federal cour...

U.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to four storm-ravaged counties in Alabama and provide support to homeowners and low-income renters forced from their homes following last month's severe storms, flooding, tornadoes and straight-line winds. Yesterday, President Obama issued a disaster declaration in Autauga, Bullock, Elmore, and Montgomery Counties allowing the Federal Emergency Management Agency (FEMA) to extend disaster assistance through its Public Assistance Program. The President's declaration also allows HUD to offer foreclosure relief and other assistance to certain families living these counties.

(HUD) U.S. Housing and Urban Development Secretary Steve Preston today announced HUD's latest effort to prevent foreclosure by launching an aggressive consumer education campaign in six cities. HUD's "Keep Your Home. Know Your Loan." campaign will kick off in Chicago, Detroit, Los Angeles, Miami, New York and Phoenix. Preston launched the public awareness initiative at Neighborhood Housing Services, a New York City agency that offers clients free mortgage delinquency and default resolution counseling. Is this just a symbolic gesture? Will teaching financial literacy after the fact really matter? I would like to hear your views on the matter. Feel free to leave me a comment.

(HUD) NEW ORLEANS - U.S. Housing and Urban Development Secretary Steve Preston joined General Douglas O'Dell, Mayor Ray Nagin and other partners today to break ground at the former St. Bernard public housing site and make way for Columbia Citi Residences at Bayou District, a new mixed-income community. This historic groundbreaking marks the start of HUD's ambitious effort to redevelop four of New Orleans' large public housing developments that suffered from massive flooding after Hurricane Katrina in 2005. "This groundbreaking builds on a commitment HUD made to create communities that are inclusive, better and safer than what families had before," said Preston. "We promised you new housing, a new community, and a better life. This groundbreaking marks the start of fulfilling that promise." More...

WASHINGTON - For the first time in more than 30 years, the U.S. Department of Housing and Urban Development today issued long-anticipated mortgage reforms that will help consumers to shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers. HUD will require, for the first time ever, that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. HUD estimates its new regulation will save consumers nearly $700 at the closing table. In announcing HUD's final changes to the regulatory requirements of the Real Estate Settlement Procedures Act (RESPA), HUD Secretary Steve Preston said that changes in the housing market and increases in home foreclosures demands action. (Read Preston's remarks) .

HOUSTON - The U.S. Department of Housing and Urban Development (HUD) and the Federal Emergency Management Agency (FEMA) today announced a rental assistance program that will provide temporary rental payments and case management services to help thousands of families who were displaced by Hurricane Ike. The new program, slated to begin November 1, 2008, will help these families find intermediate housing as they rebuild their lives. "It is critical that we provide a degree of stability in the lives of these families until they can get back on their feet," said U.S. Housing and Urban Development Secretary Steve Preston. "Knowing you have a roof over your family's head for the next 18 months should alleviate at least one major concern." "Today we are reaffirming our commitment to help Texas and its citizens recover from the damages sustained from Hurricane Ike. FEMA and HUD have moved quickly to support Texas's housing needs, and we are moving faster th...

The President has signed into law legislation that will allow HUD's Federal Housing Administration (FHA) to continue providing targeted mortgage assistance to homeowners. The Hope for Homeowners program will continue FHA's existing and successful efforts to provide aid to struggling families trapped in mortgages they currently cannot afford. Under the program, certain borrowers facing difficulty with their mortgage will be eligible to refinance into FHA-insured mortgages they can afford. The program will be implemented on October 1, 2008. Homeowners May Already Be Eligible For Assistance Families should not wait to seek mortgage relief. Right now, homeowners can determine if they are already eligible for mortgage assistance through FHASecure, FHA's existing refinancing program. They can obtain information through any of the following options: 1. Contact a local, HUD-approved housing counseling agency at HUD.gov; 2. Contact the HOPE NOW Alliance at (888) 995-HOPE; or ...

WASHINGTON - Faith-based organizations are making a huge difference in the Bush Administration's efforts to reduce homelessness, U.S. Department of Housing and Urban Development Secretary Steve Preston said today. Addressing the White House National Faith-Based and Community Initiatives Conference, Preston highlighted the Administration's partnership with faith-based and community organizations and steps being taken to reduce chronic homelessness, especially among veterans. "The Faith-Based and Community Initiative combines the strengths of the public and private sectors to make our social programs work better," said Preston. "There is a vast, network of partnerships between HUD, local communities and nonprofit organizations around the country. These partnerships are incredibly effective in helping to reduce the number of persons who are calling the streets their home."

WASHINGTON - This week, HUD's Federal Housing Administration (FHA) is mailing hundreds of thousands of letters to homeowners at risk of losing their homes through foreclosure and urging them to consider a safer, more affordable alternative to the high-cost mortgages they are currently paying. The first round of 280,000 letters was mailed in February. FHA's public awareness campaign will continue through September, ultimately reaching 850,000 distressed homeowners. "This letter might be the most important piece of mail many of these families will receive all year," said HUD Secretary Steve Preston. "This information could not only help save their current home, it could help provide them with long term financial security. This outreach campaign will ensure families are aware of the safe mortgage alternative offered by FHA."