MFI-Miami Blog

COVID-19 RELIEF FRAUD ALERT! Florida Man Busted For Buying Sports Cars And Wining And Dining Whores With PPP Bailout Money MFI-Miami has issued it’s first COVID-19 Relief Fraud Alert and this one is big! The federal government  has indicted Relocation company owner David T. Hines . Prosecutors allege Hines lied to Bank of America in an attempt to pocket $13.5 million in PPP bailout loans. Bank of America approved three of the applications for $3.9 million. The bank began sending the funds to Hines on May 11th. Hines’ four South Florida moving businesses applied for seven SBA loans totaling $13.5 million through the BofA. Hines claimed the money was to cover the costs of at least 70 employees with a monthly payroll of $4 million. However, the bank approved three of his applications, totaling $3,984,557. The reality was that Hines’ companies showed monthly revenue and expenses averaging about $200,000. This is far less than the millions of dollars in payroll that Hines sought in the ...

Mortgage Industry Warns Foreclosures Will Skyrocket In August If COVID-19 Relief Is Stopped  The mortgage industry has been sounding the alarm bells in Washington for several months about extending COVID-19 relief. Now, the Federal Reserve Bank of Atlanta has also joined the orchestra of alarm bells. The industry is warning that this time the flood of foreclosures will be of biblical proportions. Economists warn foreclosures could surpass the financial crisis of 2008. Economists say there is only one way to stop it. Socialism. That’s right. They want to extend COVID-19 relief efforts.  The danger of  mortgage forbearances  turning into foreclosures is becoming very real. The COVID-19 infections surge in the United States. Read more at MFI-Miami

Four More American Banks To Follow BofA’s Lead By Offering Relief To Homeowners Affected By The Coronavirus Four more American banks are  offering to defer mortgage payments  for 90 days due to the coronavirus crisis. The four banks include JPMorgan Chase, Wells Fargo, Citibank, and US Bank. The four American banks follow Bank of America. However, Bank of America’s plan is to work homeowners on a month-to-month basis until the crisis is over. Homeowners with Fannie Mae, Freddie Mac, and FHA loans are already eligible.  JP Morgan Chase, US Bank, Wells Fargo, and Citibank will postpone foreclosures. They will also offer forbearance on mortgage payments for 90 days. In addition,  200+ state-chartered banks and credit unions in California  have also agreed to the mortgage relief.  The four banks made their announcement as 3 million new unemployment claims were filed in the week of March 14 – 21.  In addition, authorities in at least 20 state...

Billionaire Real Estate Investor Says US Commercial Mortgage Market On The Brink Of Collapse Because Of COVID-19  Billionaire Tom Barrack says the  US commercial mortgage market is  on the brink of collapse  because of the coronavirus crisis. The CEO of Colony Capital said the economic ‘domino effect’ could dwarf the Great Depression. Barrack also said the impact on the US economy has caused high-performing mortgage loans to decrease in value. As a result, he urged Congress to provide $500 billion to allow for loans and repurchasing.  In a  Medium  post on Sunday, he said the impact on the US economy due to the coronavirus pandemic and the subsequent public health measures taken in response to it has caused high-performing mortgage loans to decrease in value. Barrack is a longtime friend of President Donald Trump. He warned loan defaults would escalate systematically. Read more at MFI-Miami

Mortgage Servicers Expect Annihilation Due To The Coronavirus And Are Lining Up For Trump Bailouts Mortgage servicers are already waiting in line for their corporate welfare checks from the Trump administration. The Mortgage Bankers Association said deferred and late mortgage payments because of the coronavirus could  trigger a financial nightmare for mortgage servicers. Fannie Mae and Freddie Mac have instructed servicers to suspend all foreclosure actions and evictions for at least 60 days.  HUD who handles FHA  mortgage loans  also soon followed suit. However,  not all mortgage loans  are included in the Trump Administration moratorium.  The MBA sent a  letter  to Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell begging the government for a bailout.  MBA CEO Robert D. Broeksmit asked for the Federal Reserve and Treasury to develop a liquidity plan to support the mortgage servicing sector. ...

New York State Orders Mortgage Servicers To Give 90-Day COVID-19 Mortgage Relief To New York Homeowners  Governor Andrew Cuomo and New York State  orders lenders and mortgage servicers  to step up their mortgage relief efforts. The New York Department of Financial Services demanded servicers let certain residents skip their mortgage payments for 90 days. Cuomo announced the statewide 90-day mortgage relief period on Thursday. NYDFSis directing mortgage servicers to offer several options to the state’s residents: Waiving mortgage payments based on financial hardship No negative reporting to credit bureaus Grace period for loan modification No late payment fees or online payment fees Postponing or suspending foreclosures NYDFS also sent  letters  to the mortgage servicers that operate in the state: An increasing number of individuals are experiencing a sizeable disruption in their everyday lives. The economic impact to consumers is considerab...