Mortgage Servicing Fraud
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Louisiana Business: GE, ProBono Gala, Mortgage Aid, Road Home, DEQ

Louisiana Business: GE, ProBono Gala, Mortgage Aid, Road Home, DEQ

Written by:
BayouBuzz Staff

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 GE

-- GE today announced plans to offer at least $12 billion of common stock to the public. The underwriters will have a 30-day option to purchase shares representing an additional 15%of the offering amount from GE to cover over allotments, if any. The offering is expected to be priced prior to tomorrow’s market open in the U.S.

In addition, GE announced that it has reached agreement to sell $3 billion of perpetual preferred stock in a private offering to Berkshire Hathaway, Inc. The perpetual preferred stock has a dividend of 10% and is callable after three years at a 10% premium. In conjunction with this offering, Berkshire Hathaway will also receive warrants to purchase $3 billion of common stock with a strike price of $22.25 per share, which is exercisable at any time for a five-year term.

Berkshire Hathaway Chairman and CEO Warren Buffett said, “GE is the symbol of American business to the world. I have been a friend and admirer of GE and its leaders for decades. They have strong global brands and businesses with which I am quite familiar. I am confident that GE will continue to be successful in the years to come.”

GE CEO Jeff Immelt said, “This action does two things for GE investors. First, it enhances our flexibility and allows us to execute on our liquidity plan even faster. Second, it gives us the opportunity to play offense in this market should conditions allow. In addition, we remain committed to the Triple A rating and in the recent market volatility, we continue to successfully meet our commercial paper needs.

“The economic environment remains volatile,” Immelt said. “However, the company’s performance remains on track with the earnings guidance we provided last week for 2008, including third quarter financial services earnings of approximately $2 billion and industrial earnings growth of between 10 and 15 percent, excluding our Consumer & Industrial business. “

Goldman, Sachs & Co. is the bookrunner for the transaction. GE expects that Banc of America Securities, LLC, Citi, Deutsche Bank Securities, J.P. Morgan and Morgan Stanley will be added as additional bookrunners. Copies of the prospectus for the offering may be obtained from Goldman, Sachs & Co., Attn: Prospectus Department, 85 Broad St., New York, NY 10004 or by faxing               (212) 902-9316        or by emailing prospectus-ny@ny.email.gs.com.

 

 

ProBono

20th Anniversary of The Justice For All Ball

The 20th Anniversary Justice For All Ball to benefit The Pro Bono Project, which provides pro bono legal services by engaging private attorneys to volunteer their time and services to the needy in a 6-parish area (Orleans, Jefferson, Plaquemines, St. Bernard, St. Tammany and Washington Parishes) will be held this Friday, October 3, 2008 8:00 pm until Midnight at     Gallier Hall.    You can obtain tickets:

$125 in advance, $150 at door 

Tickets available on the website at http://www.probono-no.org or by calling the JFAB Ticket Hotline at 504.581.3480. 

VIP Ticket Packages of $1,000, $1,500 and $2,500 also available

Corporate Sponsorships $5,000 and up

Here is some other Info: 

Music By Deacon John and The Ivories

Food from 20+ area restaurants

Raffle prizes from more than 60 of the metro area’s local businesses – tickets only $5.00

Silent Auction includes original art from Jacques Soulas, Terrance Osborne & George Rodrigue, as well as Excursion on New Orleans Public Belt Railroad’s City of New Orleans

New Mortgage Assistance

The Bush Administration today unveiled additional mortgage assistance for homeowners at risk of foreclosure.  The HOPE for Homeowners Program will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD's Federal Housing Administration (FHA).

"For families struggling to keep up with their mortgage payments, this program will be another resource to refinance into a loan they can afford," said HUD Secretary Steve Preston.  "FHA remains a safe and affordable alternative to the high-priced mortgage loans that threaten homeowners' ability to retain their homes.  We strongly encourage borrowers to work with their lenders to determine if HOPE for Homeowners is the right program for them."

The HOPE for Homeowners program was authorized by the Economic and Housing Recovery Act of 2008.  Since the President signed this vital legislation into law on July 30, 2008, the HOPE for Homeowners Board of Directors has worked diligently to develop and implement the program as directed by Congress.  The Board was charged with establishing underwriting standards to ensure borrowers, after any write-down in principal, have a reasonable ability to repay their new FHA-insured mortgage.

The HOPE for Homeowners program begins today and ends September 30, 2011.  The program is available only to owner occupants and will offer 30-year fixed rate mortgages - so the borrower's last payment will be the same as the first payment.  In many cases, to avoid what would be an even costlier foreclosure, banks will have to write down the existing mortgage to 90 percent of the new appraised value of the home.

Borrower Eligibility

Borrowers are encouraged to contact their lender to determine eligibility, but may be eligible if, among other factors:
 

The home is their primary residence, and they have no ownership interest in any other residential property, such as second homes.

Their existing mortgage was originated on or before January 1, 2008, and they have made at least six payments.

They are not able to pay their existing mortgage without help.

As of March 2008, their total monthly mortgage payments due were more than 31 percent of their gross monthly income.

They certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide material false information to obtain their existing mortgage(s).


How the HOPE for Homeowners program works

"HOPE for Homeowners will add to HUD's existing efforts to make FHA refinancing available to homeowners who need it most," said FHA Commissioner Brian D. Montgomery.  "One year ago, FHA expanded refinancing into its FHASecure program.  Since that time, we have helped more than 360,000 families keep their homes by refinancing with FHA, and we will assist a total of 500,000 families by the end of this year."

The Board expects that the primary way homeowners will participate in the program is by working with their current lender. HOPE for Homeowners will serve as another loss mitigation tool available to distressed borrowers.  

HOPE for Homeowners also includes the following provisions:

The loan amount may not exceed a maximum of $550,440.

The new mortgage will be no more than 90 percent of the new appraised value including any financed Upfront Mortgage Insurance Premium.  

The Upfront Mortgage Insurance Premium is 3 percent and the Annual Mortgage Insurance Premium is 1.5 percent.

The holders of existing mortgage liens must waive all prepayment penalties and late payment fees.

The existing first mortgage must accept the proceeds of the HOPE for Homeowners loan as full settlement of all outstanding indebtedness.

Existing subordinate lenders must release their outstanding mortgage liens.


Standard FHA policy regarding closing costs applies, and they may be:

Financed into the new loan provided the value of the mortgage (including the Upfront Mortgage Insurance Premium) does not exceed 90 percent of the new appraised value of the home.

Paid from the borrowers' own assets.

Paid by the servicing lender or third party (e.g., federal, state, or local program).

Paid by the originating lender through premium pricing.

The borrower must agree to share with FHA both the equity created at the beginning of this new mortgage and any future appreciation in the value of the home.

The borrower cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.


The lender will disclose to the homeowner the benefits of the program including home retention, a new affordable mortgage based on the current appraised value, and 10 percent equity.  The lender will also explain the prohibition against new junior liens against the property unless directly related to property maintenance, and a minimum of 50 percent equity and appreciation sharing with the Federal government.  

The costs to the homeowner include the upfront and annual insurance premiums, as well as a share of the equity created by the write-down associated with the HOPE for Homeowners mortgage and any future appreciation in the value of the home.  At settlement, subordinate lien holders will receive a certificate that evidences their interest as an obligation backed by HUD, with payment conditional on the value of HUD's appreciation share.  

If the home is sold or refinanced, the homeowner will share the equity with FHA on a sliding scale ranging from a 100 percent FHA share after the first year to a minimum of 50 percent after five years.  The lien holder that previously held the highest priority will receive payment up to a proportion of its original interest, not to exceed the amount of available appreciation.  This type of delayed payoff will take place until all prior lien holders are satisfied or the amount of available appreciation is exhausted.  All remaining appreciation is remitted to FHA.

The HOPE for Homeowners Board of Directors includes HUD Secretary Steve Preston, Treasury Secretary Henry Paulson, Federal Reserve Board Chairman Ben Bernanke, and FDIC Chairman Sheila Bair.  They have named the following people to serve on the board as their designees:  FHA Commissioner and Chairman of the Board Brian Montgomery, Federal Reserve Board Governor Elizabeth Duke, Treasury Assistant Secretary for Economic Policy Phillip Swagel, and Federal Deposit Insurance Corporation Director Tom Curry.

Read more about HOPE for Homeowners at HUD's website.

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