The Modification President A stimulus plan proposed to Congress by President-elect Barack Obama calls for his cabinet to use its existing authority to step up loan modifications. It also proposes that servicers not be held liable for modifications and that bankruptcy judges be empowered to modify loan balances. The Obama-Biden economic stimulus plan was presented to lawmakers yesterday, according to an outline of the plan provided by Canfield & Associates Inc. The upcoming administration called the current environment the most serious economic crisis since the Great Depression. read full story

GreenPoint Brokers Targeted by New York
Two New York mortgage brokers have settled charges that they charged minorities thousands of dollars more in fees, while a third broker faces a lawsuit by the state and more brokers face investigations. The actions were prompted by an investigation into defunct wholesaler GreenPoint Mortgage Funding Inc.

Class Action Madness
Two companies have settled investor class action lawsuits filed against them, while investors of residential mortgage-backed securities have joined the class action frenzy.

National City Settles Class Action
National City Mortgage Inc. has settled a West Virginia class-action lawsuit. The lender is accused of illegally returning partial payments and charging multiple late fees on rolling 30-day delinquencies.

Mortgage Employee Terminated Over Pregnancy
After one day on the job, a Pennsylvania woman told her new employer that she was pregnant -- allegedly leading to her termination. The state's employment commission investigated the claims, issued an order against the mortgage company and imposed a fine.

Banking Regulators Busy
Several banks recently signed agreements with the Federal Reserve to conserve capital and improve lending practices. Other institutions faced more harsh actions.

Mortgage Brokers Sue HUD
Mortgage brokers are suing the U.S. Department of Housing and Urban Development over new yield-spread premium disclosure requirements under the Real Estate Settlement Procedures Act.

Countrywide Sued Over Stolen Leads
A class-action lawsuit has been filed against Countrywide Financial Corp. and some of its affiliates over personal customer data that was stolen and sold by a former executive. More than 2 million customers could potentially join the case.

Lawyers Call Modification Efforts a Failure
An attorney trade group has released a report that calls the voluntary effort by U.S. mortgage servicers to modify loans a failure. The structure of loan securitizations, threat of litigation and lack of cooperation from junior lienholders are creating roadblocks. The group is calling for cramdown legislation and court-supervised modifications.

Subprime Lawsuits Increase
Lawsuits tied to the subprime meltdown continued to increase. The heightened activity reflected a surge in investors lawsuits and contract disputes.