Wells Fargo In the News, AGAIN!

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

In a recent regulatory filing, Wells Fargo disclosed that between 2010 and 2015, they foreclosed on 400 homeowners after improperly denying them loan modifications that could have allowed them to stay in their homes. Questions: 1. According to the article, how did this happen? 2. How do they plan to compensate these people? 3. Do… Read more »

Here we Go Again! Contracts for Deed!

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

In the 1930s through the 1960s, most African-Americans could not get mortgages. This was because the U.S. government deemed neighborhoods where they lived ineligible for federal mortgage insurance, which was the Depression-era innovation that made mortgages widely affordable. As a result, hucksters moved in and peddled homeownership through contracts for deed, where the home seller… Read more »

The Fine Print of Reverse Mortgages

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Children of elderly borrowers are now learning how their parents’ reverse mortgages are threatening their own inheritances. Questions: 1. Under federal rules for reverse mortgages, what options are survivors suppose to be offered when their parents die? 2. All reverse mortgages require the borrower to pay into a federal insurance fund each month. What is… Read more »

Another Slap in the Face!

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The first round of payments covered under the foreclosure settlement against the nation’s largest banks, who were accused of wrongful evictions and other abuses, bounced due to insufficient funds this week. Questions: 1. How long did it take to resolve the federal investigation into the foreclosure abuses? 2. Approximately how many people either delayed cashing… Read more »

Another Loan Modification Nightmare!

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When will these stories end? Lily Washington started a loan modification process with Bank of America (BoA). However, shortly thereafter her son was injured in Iraq and she had to travel to a military hospital in Germany to be with him. Although she had notified the bank and received a written response that they would… Read more »

Audit Irregularities

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

According to a report released on Feb. 15 in San Francisco county, about 400 recent foreclosures were determined to involve either legal violations or suspicious documentation.  This recent report suggests how pervasive foreclosure irregularities may be across the nation. Questions: 1.  What is the acronym for the mortgage database that was started in 1995 to track… Read more »