Washington, DC, United States (AHN) – The Supreme Court plans to confront consumers’ anger toward the mortgage lending industry Monday with a hearing in a lawsuit against a real estate title company.

The plaintiff, Denise Edwards, is trying to sue First American Financial Corp. in a class action lawsuit that alleges violations of the Real Estate Settlement Procedures Act.

The 1974 federal law prohibits payment of kickbacks when consumers purchase a “federally-related mortgage loan.”

Under the law, a kickback refers to payments in exchange for referrals of mortgage settlement service business.

The Supreme Court is being asked to decide whether a consumer can sue for damages when the kickbacks did nothing to raise the price of her mortgage.

In other words, how can she be compensated for damages when she might not have suffered any damages, according to the defendants.

When she bought a home in Cleveland in 2006, Edwards was referred by her settlement agent at Tower City Title Agency to First American Title Insurance Company.

First American charged Edwards a standard fee under Ohio law of $455.43.

However, no one told her that First American owned 17.5 percent of Tower City Title Agency. They also did not tell her that Tower City shared some of the income from customers who purchase mortgage insurance from First American.

Edwards filed a class action lawsuit alleging that First American’s ownership interest in Tower City, plus the fact Tower City referred customers to First American, was the same as a kickback.

If the class action lawsuit succeeds, First American customers could receive compensation of three times more than they paid for mortgage insurance, up to a half-million dollar cap.

First American claimed the case should be dismissed because Edwards’ standard $455.43 bill was unaffected by the alleged kickback. She also could not prove the quality of service she received was bad.

Edwards says that regardless of the fee she was charged, First American still violated the Real Estate Settlement Procedures Act by paying a kickback, which should be enough of a reason to get sued.

So far, Edwards has won in lower courts.

The U.S. District Court for the Central District of California denied First American’s motion to dismiss. The Ninth Circuit Court of Appeals in San Francisco affirmed the dismissal.

An “injury” that can be compensated in a lawsuit “can exist solely by virtue of statutes creating legal rights,” even if consumers cannot prove they lost money, the Ninth Circuit’s ruling said.

First American appealed to the Supreme Court.

Edwards has lined up powerful friends to support her in the hearing Monday. They include the U.S. Justice Department, which filed an amicus – or friend of the court – brief that argues Congress can create legally protected rights by passing laws intended to protect certain persons.

In Edwards’ case, Congress was trying to protect home buyers by approving the Real Estate Settlement Procedures Act.

Both Edwards and the Justice Department say filing the lawsuit as a class action might motivate mortgage companies like First American to comply with the law.

The Supreme Court case coincides with ongoing efforts in Congress to clamp down on fraud and other shady dealings by the mortgage industry.

President Barack Obama has blamed the industry for being a primary culprit in the Great Recession that began in 2008.

Easy credit terms for consumers led to numerous bad loans, which then prompted widespread home foreclosures and personal bankruptcies.

In the latest move by Congress, 15 lawmakers are asking bank regulators in the Treasury Department to publicly release information about what steps are being taken to prevent illegal foreclosures by banks. The U.S. Comptroller is investigating the bank foreclosures.

“The only way this claims process will be fair is if the regulators shine a bright light on mortgage servicers, and make them demonstrate to the public how they’re being held accountable,” said Rep. Maxine Waters (D-CA), who is leading the effort for greater “transparency” in mortgage fraud cases.

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Washington, DC, United States (AHN) – Initial jobless claims remained above the 400,000 mark for the second week in a row with 403,000 Americans filing for benefits during the week ending April 16, the U.S. Department of Labor said Thursday.

That number was down 13,000 from the previous week’s filings of 416,000 first time claims for unemployment compensation insurance benefits.

Moreover, the number of jobless people covered by unemployment compensation insurance remained stable at 2.9 percent.

The less volatile 4-week moving average was 3,716,750, a drop of 17,500 from the previous week’s revised average of 3,734,250.

However, there were still 8,299,810 claiming jobless benefits in all programs for the week ending April 2.

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Washington, DC, United States (AHN) – The number of first-time applicants for jobless benefits unexpectedly rose for the week ending April 9 by 27,000 to 412,000.

Analysts had expected the number to remain in the 380,000 range.

Some analysts now say the jump in claims signals uncertainty over recovery in the labor market, while others view it as an anomaly caused by large mass layoffs at the end of the quarter.

Regardless, so far the U.S. recovery from recession has largely been confined to the economic markets with labor not sharing in the nation’s ongoing recovery.

For the week ending April 2 there were 385,000 new claims for unemployment compensation insurance payments, the U.S. Department of Labor said. Initial jobless claims had been trending downward and it was below the 400,000 mark. This marked the first time in five weeks that claims rose above that mark.

Moreover, the four-week moving average, a figure less volatile than the weekly claim numbers, is trending upward again. It increased by 5,500 to 395,750 from the previous week’s revised average of 390,250, DOL officials said.

In addition, the seasonally adjusted rate of jobless workers covered by the unemployment compensation insurance program for the week ending April 2 fell to 2.9 percent from the prior week’s rate of 3 percent.

DOL officials say that there were a total of 8,517,545 people claiming jobless benefits in all programs for the week ending March 26.

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Washington, DC, United States (AHN) – The ongoing recovery in the nation’s financial service sector still has not reached the rest of the economy, causing the number of Americans filing first time jobless claims to rise to 410,000 for the week ending Feb. 12.

That was an increase of 25,000 from the previous week’s revised 385,000 jobless workers who filed initial claims for unemployment compensation insurance, the United States Department of Labor said Thursday.

Some analysts had expected jobless claims to remain below the 400,000 mark. Economists say that if initial jobless claims fall below 400,000 weekly and stay there for a prolonged period that would signal the general economy had begun a recovery.

However, for now, it is the financial services sector of the economy, including the banks that started the economic crisis, that are recovering. The rest of the nation’s economy lags behind, meaning it is still a jobless recovery.

Federal Reserve Bank of Chicago President Charles Evans said Thursday that continued high unemployment coupled with low inflation meant that the Fed had missed both of its policy objectives and that the nation’s economy still needed help and time to dig its way out of the hole created by the recession.

In the meantime, the percentage of jobless workers covered by the unemployment compensation insurance program remained unchanged at 3.1 percent for the week ending Feb. 5 compared to the previous week, the latest dates for which that data is available.

A total of 9,250,156 people claimed benefits in all jobless programs for the week ending Jan. 29, the latest week for which such data is available.

Extended jobless benefits were still available in 35 states and the District of Columbia during the week ending Jan. 29. Those states were Alabama, Alaska, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, and Wisconsin.

The largest increases in initial claims for the week ending Feb. 5 were in Michigan (+2,693), North Carolina (+1,222), New Jersey (+877), Maryland (+527) and Pennsylvania (+475).

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However, there is more to Obama’s housing bill, as there always is with any politically motivated piece of legislature. In the fine print of the bill’s details are provisions which protect big investors from bankruptcy “cramdown” cases. This last minute addition to “Helping Families Save Their Homes Act of 2009″ protects senior mortgage investors. These pension funds, foreign banks and life insurance firms would be in better shape with a court-ordered modification than a voluntary one outside of the courtroom.

When a loan amount is reduced in bankruptcy court, the result is called a “cramdown”. This option is quite popular with those who feel the wealth should be spread around, even in home loans. In addition, even large lenders like Citigroup are supporting the idea after they got a bailout from the government. 

The reason protection for top-tier mortgage back securities was needed in Obama’s new housing bill was because without the language in the bill protecting them, these securities could be downgraded significantly. The results of a significant downgrade could include increased capital requirements for life insurers and a need to raise capital in unsteady economic times. While this seems to be a “rich person’s” issue, the truth is if this protection wasn’t included in the new Obama housing plan, every American could start seeing problems with their life insurance and getting insured would be even more difficult than ever before. Thus, it was essential to add this protective component into the language of this recently House-approved bill. 

While this bill may help some homeowners, those homeowners struggling to pay their mortgage right now may need immediate help. They can gain urgent assistance from The Feldman Law Center professionals by visiting http://www.FeldmanLawCenter.com These loan modification and foreclosure avoidance professionals can help negotiate with lenders and avoid home foreclosure. The services they offer are perfect for those under financial hardship and cannot pay their mortgage, those who have been a victim of predatory lending on their mortgage, owners who already have a foreclosure date or anyone who wants to avoid their credit being ruined for the next ten years due to foreclosure.

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Washington, DC, United States (AHN) – Health insurance premiums for employer-sponsored plans have increased an average of 41 percent nationwide between 2003 and 2009, according to a new study.

The report, by the health care advocacy group Commonwealth Fund, states that while premiums spiked, individuals’ insurance plans bought less coverage.

The report also found that deductibles rose an average of 77 percent per person during the same time frame. These higher premiums and deductibles are stressing families’ already strained budgets.

If premiums continue at the rate they are rising, the Commonwealth Fund estimates the average family would pay about $23,342 by 2020.

The Commonwealth Fund supports health care overhaul legislation pushed by the Obama administration that passed Congress in 2010 – the Affordable Care Act. The organization says if reforms contained in the bill slow premium increases by 1 percentage point a year, annual family premiums would be $2,323 lower by 2020.

Slowing premium growth by 1.5 percent would save families more than $3,000 a year, according to the report.

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Washington, DC, United States (AHN) – Two million Americans are set to lose their insurance after jobless claims expire on Tuesday. Lawmakers returned from their Thanksgiving break on Monday without voting on extending them.

About 800,000 workers who have been searching for jobs for at least six months will spend the holidays without unemployment insurance, and 2 million by New Year’s Eve. Another 2 million will see their benefits expire by the end of February.

A bill extending unemployment insurance during the holidays failed in the House on Nov. 18 before Congress went on its Thanksgiving recess. Republicans blocked the measure, saying it would add to the deficit.

Lawmakers voted 258-154, short of the two-thirds required to pass the bill. All except 11 votes opposing the measure were from the GOP.

The bill introduced by Reps. Jim McDermott (D-WA) and Sander Levin (D-MI) temporarily extends benefits for three months until February 2011.

Republicans oppose the measure because it would increase the deficit by $12 billion, and add to the $13.795 trillion national debt.

The GOP also argues that some economists believe “prolonged unemployment benefits can theoretically increase unemployment duration by delaying individuals’ intensity to search for work.”

Unemployment nationwide remained 9.6 percent in October. In the long-term, 41 percent of jobless workers have been unemployed for at least six months.

“We are experiencing what can only be described as a jobs crisis, a sustained period of chronic unemployment; and two years of policies that have vastly increased the size and scope of government and added trillions to the debt and have done little to alleviate this problem,” Senate Minority Leader Mitch McConnell (R-KY) said in last week’s weekly Republican address.

Democrats, however, cite a study by the nonpartisan Congressional Budget Office saying unemployment benefits increase consumer demand and spending by returning $2 into the economy for every $1 invested.

The AFL-CIO has also stated that, “With five job hunters for every one opening, long-term jobless workers have nowhere else to turn.”

The last extension in July was passed after three attempts that were blocked by Republicans, which means the expiring benefits may still be extended through Democratic efforts in Congress’ lame-duck session during the remainder of the year.

But no vote has been scheduled for the extension, with many bills in the backlog, including an extension of tax cuts for the middle class that Republicans also want for high-income earners. Lawmakers also need to work on a dozen annual appropriations bills for the 2011 fiscal year. They passed a stopgap measure on their last day of session in September before the mid-term elections, temporarily funding government operations.

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