The Federal Reserve System seems to have showed its hand on its favorite bank, according to a story by CNN Money / Fortune, and it’s a bank that seems to consistently get not-so-raving reviews by clients who I know.  The Federal Reserve has asked big mortgage providers to take a look at what they’d need to survive should there be another huge downturn and though the bank underestimated potential loss by about $24.3 billion, no correction was requested.

…  a senior Fed official hinted that the central bank was unhappy with the numbers that JPMorgan and Goldman submitted on its test results. They were too rosy. That seems to be the reason that the Fed is forcing JPMorgan and Goldman to resubmit their capital plans. It’s not clear why Wells isn’t being forced to do the same. Fed officials declined to comment. A Wells spokeswoman said the bank was pleased with the results and declined to comment further. Says one veteran bank analyst, “Made no sense to us.”

Now perhaps people whose loans are in question have answers as to why. Because the bank is allowed to get away with it, in my opinion.

A home in Phoenix recently had a contract offer that had to be approved by Fannie Mae.  The organization turned it down saying the house with worth $40,000 more than the local market analysis supported. Because the amount was so large, agent Anna Kruchten brought it the the attention of the media and she got results!  From Active Rain,

I contacted our local 12 news reporter, Melissa Balsius, our  AZ housing market watch dog expert. Her assistant contacted me back within hours but they weren’t sure what could be done immediately. I told her I wanted to be part of the solution and to let me know what could be done about this Fannie Mae craziness.

At 5:30pm that same day Kathleen Winn from the Arizona Attorney Generals Office called me

Ms Winn told me they had received my email from the 12 news station along with 5 other complaints just that day alone.  The Attorney Generals office considers this to be a trend.

Now the state attorney general’s office is investigating.  If you feel you have been untreated unfairly as a consumer – whether through a housing situation or other product – the AG office is usually a really good place to start since they typically have a consumer protection division.  Good luck!

Misrepresentation is a huge flag for the Feds as they crack down on shady mortgage advertisers.  Ads touting their supposed affiliation with federal programs or false mortgage rate claims are no-no’s according to NBC News.com,

The feds warned the mortgage industry on Monday that potentially false or misleading advertisements will not be tolerated. The Consumer Financial Protection Bureau and the Federal Trade Commission announced that they have issued a total of 32 warning letters to mortgage lenders and mortgage brokers to clean up their ads. They have also opened 19 formal investigations into companies that may have committed more serious violations of law.

Confusing and misleading consumers is prohibited as it can cause great harm as people make some of the biggest decisions of their lives.  It is refreshing to see the government paying serious attention to mortgage companies and holding them accountable for fair and truthful advertising.

There’s been a lot of talk about fiscal cliff President Barack Obama is facing – along with the rest of the nation – almost immediately. But what is this cliff everyone keeps talking about?  From The New York Times, here is a description of what it is and how it affects you,

… it’s also the year President George W. Bush signed a massive round of tax cuts. The tax cuts were supposed to expire ten years later, in 2011. President Obama later extended the expiration date to January 1, 2013. After that, your rates will go back up to the rates you paid in 2001. A bunch of other tax changes, like the expiration of a “payroll tax holiday” and the elimination of some tax credits, will also hit on January 1, meaning that no matter how much you pay now, you’ll probably pay more after the new year unless there’s a deal.

So essentially these are not NEW taxes. Read on to learn more!