OK, well maybe that's not exactly how she put it. But I'm pretty sure that's what she means.

Nevada Attorney General Catherine Cortez Masto summarized a report released earlier this month saying that the report shows that the largest mortgage servicers in the U.S. are not complying with "several key aspects" of the settlement imposed on them by the court. These key aspects include regulations designed to streamline the loan modification process, improve customer service, create single points of contact for consumers within the bank, and eliminate billing and statement inaccuracies. Several of the large banks including Citi, JP Morgan Chase, Bank of America, and Wells Fargo were cited for compliance issues. If the banks do not adequately address these issues they can be hit with more fines. More fines in addition to what you might ask?

In addition to the fines issues to the major banks designed to "recompense" Nevada homeowners. It is estimated that mortgage providers have refunded an amount in excess of $1.8 billion to Nevadans in the last several months as a result of this directive. I've seen this in action. One of my colleagues walked into the office a few weeks ago with a check for almost $1500. She was a little puzzled. "Why am I getting this?" she asked me. "All I did was not pay my mortgage and let the bank foreclose on my property. I don't really feel like I deserve to get money back. (pause) Of course I'm going to take it." Well sure. I would take it too. But I agree with her. We wouldn't deserve it.

I continue to find Ms. Cortez Masto's insistence that the banks should be treated as whipping boys to be a little bit puzzling. I recognize that the banks engaged in bundling of securities and re-selling that were, let's say, less than transparent. But let's be realistic here for a minute. Why did my colleague with the $1500 check lose her home? Was it because the banks did something awful to her? No. It was because home prices plummeted and she was laid off from her job. Not really Citibank's fault.

Regardless, it appears that Nevada homeowners may benefit from these regulations in some way if more loan modifications can be initiated on the huge percentage of homes that are still underwater in Las Vegas. Another option this year is the short sale. If you are still underwater on your home, and looking for a way out, you need to consider short selling immediately. It is very unlikely that the tax forgiveness program currently in place for mortgage debt will be extended for another year. That means that the time to sell your property is NOW...so you aren't hit with Federal income taxes on the difference between what your home is worth and the amount you still owe on your mortgage. If you don't know what I'm talking about, call me and I will explain to you why the window for short sales is closing in Las Vegas.