Elizabeth Warren and the Consumer Financial Protection Bureau have released a new proposed form (actually, two of them) for disclosing mortgage information to consumers. Despite attempts by Republicans to limit the power of the CFPB, it is continuing on with its mission.  Perhaps this is a first look at the potential the bureau may have.

An interesting case in Ohio shows how a lender can permanently lose its rights to foreclose on a mortgage when it voluntarily dismisses its case too many times.  After filing its third foreclosure case, the Ohio Supreme Court weighed in and said "its too late." 

Professors at the University of Utah and Georgetown have speculated that MERS mortgages may be unenforceable - ALL OF THEM.  And, even if they are valid, they say, serious tax consequences could be in the wings for the pools of securitized mortgages because they may not qualify for favorable tax treatment as everyone had previously assumed.  This is premised on the theory that if you assign a mortgage without the note, it becomes a nullity. As a result, 60 percent of the nation's mortgage loans could be unsecured.

Two competing federal bills were introduced to regulate private transfer fee covenants.  One protects homeowners, and one protects greedy Wall Street profiteers.  Both seek to amend the Real Estate Settlement Procedures Act to accomplish their goals. 

There are rumors floating around that the Obama Administration will order Fannie Mae and Freddie Mac to forgive a portion of homeowners' mortgage debt - at least those that are currently underwater.  If true, it could happen as soon as this month.  It is difficult to tell how well such a move will received.  On one hand, Wall Street got its bailout and many are wondering what good that did for the average homeowner.  On the other, the many people who did not borrow more than they could afford may not like seeing irresponsible borrowers getting let off the hook for their poor decisions. 

We seem to be getting mixed signals from the media about the economy and the housing and mortgage markets. I do not doubt those who say this is the worst economy since the Great Depression.  In response the Government bailed out banks, insurance companies, Fannie Mae and Freddie Mac, and even GM and Chrysler.  But has the billions of dollars in taxpayer money really helped?  Let's take a look...

The housing market, the mortgage industry, and the title insurance industry have been on the decline for some time now.  There have been steep cuts in personnel as many companies scaled back their operations to meet the shrinking demand.  Now, there is concern that lenders will not have the capacity to handle the volume predicted for 2009.  The title industry may also find itself unprepared for that kind of increase in orders.

If the predictions are correct, that mortgage originations could double this year, will you be ready for it?  Have you thought about how best to take advantage of another big wave of refinancing? 

In the movie Broken Arrow (1996), starring John Travolta and Christian Slater, a government aide is told that they have a "broken arrow" situation - nuclear weapons have been stolen.  The aide, played by Frank Whaley, says "I don't know what's scarier, losing nuclear weapons, or that it happens so often there's actually a term for it." We have a similar term in the mortgage industry, now - "jingle mail" - when a homeowner walks away from their mortgage and mails the keys back to their lender.

The mortgage market is still paralyzed after dumping $350 billion of taxpayers hard-earned money into the big banks.  Now, Obama and his crew are working hard to make sure Congress doesn't block access to the second $350 billion.  But, it is time to really take a hard look at the policies that govern how that money has been, and will be, spent.  Largely, with the government's aid and your tax money, the banks that were "too big to fail," have gone on a shopping spree buying up other companies in financial trouble and making them even bigger.