In the News

By Alejandro Lazo and E. Scott Reckard

Citing "pervasive" misconduct in foreclosures, federal regulators have ordered the nation's biggest banks to overhaul their procedures and compensate borrowers injured financially by wrongdoing or negligence.

The four major bank regulators said their actions, to be followed by fines, wouldn't interfere with a wider-ranging investigation conducted by a coalition of state attorneys general and other federal agencies, including the departments of Justice, Treasury and Housing and the Federal Trade Commission.

By Dina ElBoghdady

Three federal agencies announced agreements with the nation's largest mortgage servicers Wednesday that aim to stem shoddy foreclosure practices. But the plans do not immediately impose financial penalties on the companies or force them to reduce the mortgage debt for troubled borrowers.

By Lorraine Woellert

The 14 largest U.S. mortgage servicers must pay back homeowners for losses from foreclosures or loans that were mishandled in the wake of the housing collapse, the first of a set of sanctions regulators are seeking against the companies.

The settlement announced today between servicers and banking regulators could help the U.S. Justice Department determine the size and scope of fines for the flawed practices, regulators said.

by Josh Grossberg

Even though a last-minute deal staved off a federal government shutdown the night before, thousands of people came to a park near Inglewood on Saturday to warn their elected officials not to cut spending to programs they hold dear.

Led by South Bay Democratic Rep. Maxine Waters, the crowd at Jesse Owens Park chanted slogans, waved signs and shouted their approval for maintaining programs that focus on public housing, after-school programs, affordable health and jobs programs.

by Kaitlin Parker

Hundreds of South LA residents gathered at Jesse Owens Park today to attend a community meeting on federal budget cuts hosted by Congresswoman Maxine Waters.

Many in attendance work with community organizations that are at risk of losing funding because of federal budget cuts. Signs demanded everything from more jobs to more money for early childhood education or senior care.

Sunny skies and upbeat music lightened the mood, but there was no mistaking the serious subject matter—people were concerned about what these cuts will mean for them.

By Marc H. Morial

What do American Express, Merck, Xerox, Darden Restaurants, and Citibank have in common?

All are Fortune 500 companies headed by African Americans: Ken Chenault, Chairman and CEO of American Express; Ken Frazier, President and CEO of Merck; Ursula Burns, Chairwoman and CEO of Xerox – the first African American woman to head a Fortune 500 company; Clarence Otis, President and CEO of Darden Restaurants, the parent company of Red Lobster and Olive Garden; and Dick Parsons, former Chairman and CEO of Time Warner, Inc., now Chairman of Citibank.

by Kitty Felde

Congress is still talking, but the clock is running down to midnight Friday when the federal government runs out of money. If lawmakers can't work out a budget agreement, "non-essential" federal workers will not show up to work starting on Saturday. Here's what'll stay open and what won't.

One of the questions a lot of constituents have asked Democratic Congresswoman Maxine Waters of Los Angeles is: will the post office close down? The answer is "no," because the US Postal Service pays for itself.

by Jon Prior

Members of the House Financial Services Committee want more information on how Fannie Mae and Freddie Mac contract with companies charged with managing and reselling previously foreclosed homes, known as REO.

Rep. Maxine Waters (D-Calif.) introduced an amendment to eight bills on reforming the two government-sponsored enterprises that would require the Federal Housing Finance Agency Inspector General to report on the REO selection process and recommend how to improve it.