06-24-2018  12:26 am      •     
The Skanner Report
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NEWS BRIEFS

AG Rosenblum Seeks Info from Oregonians

Oregon Attorney General seeks information on children separated from families at border ...

Community Forum: How Does Law Enforcement Interact With Vulnerable Populations?

Forum will focus on public safety and examine mental health and addiction issues ...

King County Council Recognizes Juneteenth

The Metropolitan King County Council recognizes a true 'freedom day' in the United States ...

Unite Oregon Hosts ‘Mourn Pray Love, and Take Action’ June 20

Community is invited to gather at Terry Schrunk Plaza at 6 p.m. on World Refugee Day ...

MRG Foundation Announces Spring 2018 Grantees

Recipients include Oregon DACA Coalition, Kúkátónón Children’s African Dance Troupe, Komemma Cultural Protection Association ...

On the hunt in Oregon for a rare Sierra Nevada red fox

BEND, Ore. (AP) — In a dense forest at the base of Mount Bachelor, two wildlife biologists slowly walked toward a small cage trap they hoped would contain a rare red fox species. Jamie Bowles, an Oregon Department of Fish and Wildlife technician in Bend, and Tim Hiller, founder of the...

Lawsuits allege racial profiling in Portland-area businesses

SALEM, Ore. (AP) — Several African Americans are suing big-box stores and restaurants in Oregon, claiming employees at those places wrongly accused them of stealing because they were "shopping while black."A Portland law firm has filed five lawsuits alleging racial profiling at businesses in...

Abuse survivor finds new life, success in Pacific Northwest

VANCOUVER, Wash. (AP) — Jonathan Dutson long dreamed of moving to the Pacific Northwest, where its lush greenery offered a respite from the scorching Arizona sun he grew up beneath. But Dutson was looking as much for a new home as he was looking for an escape.Dutson was one of 700 who walked...

Alaska city honors Guardsmen killed in crash after '64 quake

ANCHORAGE, Alaska (AP) — A month after the second most powerful earthquake ever was recorded, the Alaska port community of Valdez remained in ruins.A hulking Alaska National Guard cargo plane's mission April 25, 1964, was to deliver Gov. William Egan to oversee efforts to rebuild the town on...

OPINION

How Washington’s 'School Achievement Index' Became School Spending Index

New assessment categorizes schools not by quality of education, but level of funding officials believe they should receive ...

Black Mamas Are Dying. We Can Stop It.

Congresswoman Robin Kelly plans to improve access to culturally-competent care with the MOMMA Act ...

Hey, Elected Officials: No More Chicken Dinners...We Need Policy

Jeffrey Boney says many elected officials who visit the Black community only during the election season get a pass for doing nothing ...

Juneteenth: Freedom's Promise Still Denied

Juneteenth is a celebration of the de facto end of slavery, but the proliferation of incarceration keeps liberation unfulfilled ...

AFRICAN AMERICANS IN THE NEWS

Lawsuits allege racial profiling in Portland-area businesses

SALEM, Ore. (AP) — Several African Americans are suing big-box stores and restaurants in Oregon, claiming employees at those places wrongly accused them of stealing because they were "shopping while black."A Portland law firm has filed five lawsuits alleging racial profiling at businesses in...

Racist tropes in Ramadan TV satires anger black Arabs

DUBAI, United Arab Emirates (AP) — In an attempt to capitalize on what's become a ratings bonanza for Arabic satellite channels during the Muslim holy month of Ramadan, two comedies struck the wrong chord with audiences when their lead actors appeared in blackface.Criticism was swift on...

Chaos on the border inflames GOP's split with Latinos

When more than 1,000 Latino officials __ a crop of up-and-coming representatives from a fast-growing demographic __ gathered in Phoenix last week, no one from the Trump administration was there to greet them.It marked the first time a presidential administration skipped the annual conference of the...

ENTERTAINMENT

Han Solo's Blaster from 'Return of the Jedi' tops auction

LAS VEGAS (AP) — Han Solo's Blaster from the "Return of the Jedi" has sold for 0,000 at a Las Vegas auction.Julien's Auctions says Ripley's Believe It or Not bought the item Saturday.The sci-fi weapon was the top-selling item at the Hollywood Legends auction.The blaster was part of a...

Ornate NYC theater, used for years as a gym, to be restored

NEW YORK (AP) — For years, Long Island University's basketball team played in a French Baroque movie palace in downtown Brooklyn.The gilded wall fountains, plastered statuettes and towering, one-of-a-kind Wurlitzer organ pipes of the historic Paramount Theater were preserved by the...

Vinnie Paul, co-founder, drummer of Pantera, dies at 54

Vinnie Paul, co-founder and drummer of metal band Pantera, has died at 54.Pantera's official Facebook page posted a statement early Saturday announcing his death. The label of Hellyeah, his most recent group, confirmed the death but neither statement mentioned Paul's cause of death.His real name...

U.S. & WORLD NEWS

In about-face, Iraq's maverick al-Sadr moves closer to Iran

BAGHDAD (AP) — Muqtada al-Sadr, the maverick Shiite cleric who emerged as the main winner in Iraq's...

US moves 100 coffins to N. Korean border for war remains

SEOUL, South Korea (AP) — The U.S. military said it moved 100 wooden coffins to the inter-Korean border to...

New Zealand leader names daughter Neve, leaves hospital

WELLINGTON, New Zealand (AP) — New Zealand Prime Minister Jacinda Ardern and her partner Clarke Gayford...

AP PHOTOS: Germany salvages campaign on Day 10 of World Cup

MOSCOW (AP) — Germany midfielder Toni Kroos scored a dramatic late winner to come from behind and beat...

Beyond World Cup: Advocates call attention to Russian abuses

MOSCOW (AP) — Wrapped in national flags, jubilant fans dance at midnight in the streets of Moscow, smiling,...

In about-face, Iraq's maverick al-Sadr moves closer to Iran

BAGHDAD (AP) — Muqtada al-Sadr, the maverick Shiite cleric who emerged as the main winner in Iraq's...

Les Christie CNN Money

NEW YORK (CNNMoney) -- Reducing the amount struggling homeowners owe on their mortgages is proving to be a more effective way to prevent foreclosures than other methods, such as reducing interest rates or postponing payments, a new report finds.

In a report presented this week, Amherst Securities Group said that when principal reductions brought mortgages near the home's market value, borrowers were substantially less likely to fall behind on payments again and lose their homes.

Only 12% of borrowers who received principal reductions re-defaulted in 2011, Amherst found. That's compared with 23% of borrowers who received mortgage modifications with interest rate reductions (but no principal reduction) and 30% who received forbearance, which postpones their debt repayment.

"[Modifications] with principal forgiveness are apt to be most effective, as the borrower no longer owes the money -- so he is no longer hopelessly underwater," said Laurie Goodman, Amherst's housing market analyst and one of the authors of the report.

The success these principal reductions have had in turning delinquent borrowers back into paying clients has led many lenders to step up debt forgiveness on the loans in their own portfolios.

So far this year, principal reductions have accounted for 40% of the modifications done by the banks, up dramatically from 25% in 2011 and 11% in 2010, according to Amherst.

The mortgage servicers cannot forgive debt on loans that are owned or backed by one of the two government-controlled mortgage giants, Fannie Mae and Freddie Mac, however, and they are limited in what they can forgive on loans owned by investors.

That means, of the vast majority of loans -- 6 million since April 2009, according to the Treasury Department -- only a fraction have received debt forgiveness. That may be changing, though.

The Federal Housing Finance Agency, which controls the majority of outstanding mortgages through its oversight of Fannie and Freddie, has thus far prohibited the mortgage giants from including debt forgiveness as part of their mortgage modifications.

Last month, however, Fannie and Freddie announced they would participate in two programs in California and Nevada that will use part of a $7.6 billion Hardest Hit Fund to pay down loans the companies own or back.

However, the move will not cost Fannie and Freddie anything and is a far cry from the principal reduction that private mortgage servicers are extending to borrowers.

"My guess is that eventually, [Fannie and Freddie will] go down that path, but there's still a lot of reticence there," said Mark Zandi, the chief economist for Moody's Analytics. "People have problems with principal reduction. They think it's unfair."

Even if Fannie and Freddie remain on the sidelines, Amherst said it expects to see a continued increase in principal reductions.

One reason is the $25 billion settlement reached in March between the five big mortgage banks and the state attorneys general. As part of the settlement, the banks must use $13 billion to reduce principal on mortgages held by underwater borrowers.

Even more principal reductions will also result from the tripling of incentives paid to mortgage investors who participate in the Principal Reduction Alternative (PRA), part of the Home Affordable Modification Program. For each dollar investors -- the pension funds, municipalities and other buyers of mortgage-backed securities -- allow to be written off, they can get back as much as 63 cents from Treasury.

By April, 2012, the number of modifications started under Principal Reduction Alternative had jumped to about 83,000 from 67,000 in January.

The potential for building equity in the home, which principal reduction revives, is a major carrot for homeowners, especially if they're underwater on their home, said Sam Khater, a senior economist for CoreLogic.

The typical amount of debt forgiven in a principal-reduction modification is about $60,000, according to the Treasury Department. Meanwhile, the average amount that borrowers are underwater is about $70,000, said Sam Khater, senior economist for CoreLogic. As a result, borrowers can be very close to even once their modifications are done, he said.

"In two or three years of regular payments -- and a little home price appreciation -- the borrower can be right-side up again," said Khater.

 

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