Law Office of Allan E. Dunaway, PLC

State AGs ask for removal of FHFA head

There is a reason why the mortgage crisis 2008 is referred to as a "bubble." If you look at a graph of the real estate valuations of virtually any property over the last ten years, there is a large rise in the middle, generally centering on 2005-2007. For anyone who purchased property during this time, you experienced a rapid increase in prices, any you may have been outbid when you made an offer on home.

Of course, today, your valuation on that home may be far below that peak. Unfortunately, for you, your mortgage was based on that phony, inflated peak. The dual collapse of the real estate and banking sectors destroyed hundreds of thousands of jobs and plunged the economy into a deep depression that forced millions of borrowers into bankruptcy.

In the aftermath, state attorney generals have been dealing with the fraud that occurred by the banks and other financial institutions. They recently asked that the head of the Federal Housing Finance Agency be removed.

They said in a statement, "Unfortunately, under the leadership of Acting FHFA Director Edward DeMarco, Fannie Mae and Freddie Mac remain an obstacle to progress by refusing to adopt policies that will help maximize relief for homeowners."

Because of this failure to recognize the reality that these homes never were worth the mortgage valuations, and that the banks, by manipulating the mortgage securities market, were directly responsible for the fraud of the housing bubble, the FHFA's policies leave many people struggling with underwater mortgages on homes that may never appreciate to the loan amount.

For borrowers who cannot obtain principal reductions from a financial institution should speak with a bankruptcy attorney to determine if they would be better of walking away from the property and then file for bankruptcy protection.

Source: Los Angeles Times, "9 state attorneys general want housing official DeMarco replaced," Jim Puzzanghera, March 19, 2013

No Comments

Leave a comment
Comment Information
Contact the Firm

Get Sound Advice In A Free Consultation

For sound bankruptcy advice you can count on, from a skilled lawyer who truly cares about your future, contact the Louisville Law Office of Allan E. Dunaway, PLC. We have two convenient locations: Louisville, Kentucky, and Jeffersonville, Indiana. Our main office in Louisville is located off the beaten path so you won't have to deal with downtown traffic and can pull right up to our door and walk right in.

Call us at 502-785-1005, or send an email message. Our law firm welcomes the opportunity to serve you in any way we can.

If for some reason personal bankruptcy is not for you, if you do not qualify for the Chapter 7 approach via the "means test" and Chapter 13 reorganization is not the answer, Allan E. Dunaway works hard to inform you of other appropriate means of debt settlement that suits your unique needs.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Kentucky Office

Indiana Office

714 Lyndon Lane
Suite 4
Louisville, KY 40222

Phone: 502-785-1005
Fax: 502-412-2258
Louisville Law Office Map

530 East Court Avenue
Jeffersonville, IN 47130

Phone: 502-785-1005
Fax: 502-412-2258
Jeffersonville Law Office Map