James M. Parsa: California Lawyer Faces Disbarment for a Loan Modification Scam & Unlawful Sexual Intercourse

An Orange County, California attorney, James M. Parsa, 50, is now facing disbarment from the State Bar for abandoning numerous james parsaclients who hired him to perform loan modification services in October 2009, and he was also criminally convicted for unlawful sexual intercourse with a 17 year old minor who happened to be an employee of Parsa’s law firm.

Mr. Parsa was operating a large loan modification firm out of Orange County from 2008-2009 in which he scammed dozens of homeowners who hired his law firm to save their homes. Parsa had already been convicted of a misdemeanor sex offense in 2001, and received a two-year suspension of his law license last year in connection with the misdemeanor conviction.  (more…)

CFPB Updates the Home Mortgage Disclosure Act (HMDA) With New Rule

The Consumer Financial Protection Bureau (CFPB) announced last week that they are adding a new rule to the Home Mortgage Disclosure Act (HMDA), which is said to help bring clarity to the mortgage market.

HMDA requires many financial institutions to maintain, report, and publicly disclose information about home loans. It was originally enacted by Congress 40 years ago to show whether lenders were serving the housing needs of their communities,
while providing public officials with data that helps them make informed decisions and policies, and also identify lending patterns that could be discriminatory. (more…)

Do Large-Scale Refinancing Programs Reduce Mortgage Defaults?

“We estimate that the reduction in fees to participate in FHA’s streamline refinance program induced nearly 180,000 additional loans to streamline refinance by the end of 2013, which will prevent more than 17,000 defaults over those loans’ lifetimes.”

(Source: CBO) In 2012, the Federal Housing Administration (FHA) reduced fees to refinance FHA-insured mortgages obtained before—but not after—a retroactive deadline. (more…)

Loan Modifications: Good Idea or Bad?

Think of your lender as a casino that wants your money. You want to win, but odds are you’re probably going to lose your shirt.

(Source: US News) – If you’ve ever been significantly behind on a loan, you’ve probably been asked by a customer service representative if you’d like to apply for a loan modification. You will then hear that a loan modification will lower your monthly premiums and stop the incessant phone calls demanding that you catch up on your payments. What’s not to like? (more…)

FHA Market Share of U.S. Mortgages

Here is an interesting graph from the U.S. Housing and Urban Development (HUD) detailing FHA’s market share of all mortgages in the United States. It shows that since 2007, FHA home loans have increased substantially by as much as approximately 500%, and leveling off today at around 300%.

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