Matt Weidner – Fighting For The American People

Archive for the ‘Mortgage News’ Category

From Forbes Magazine:

The AGs are seizing upon behavior which looks bad and may technically violate the law, but is hard to link directly to consumer injuries.

As with tobacco, the AGs are attacking a tragedy with many causes by going after the least popular actors in the drama. It’s good theater, but hard to see how beating up on the processing companies will prevent housing prices from finding their natural bottom. That will only occur when the economy recovers and a new wave of buyers bids on houses now occupied by people who can’t afford what they agreed to buy at the peak of the bubble.

http://www.forbes.com/sites/danielfisher/2012/02/07/mortgage-settlement-talks-look-like-tobacco-ii/

LINK HERE

THIS BAD, BAD BILL COMES UP FOR VOTE ON WEDNESDAY FEBRUARY 8!

IT IS A BAILOUT AND A GET OUT OF JAIL FREE CARD FOR THE BANKSTERS AND THE FRAUDCLOSURE MILLS

FLORIDA’S ELECTED LEADERS SHOULD NOT BE REWARDING CON ARTISTS AND FRAUDSTERS

THIS WILL GUT THE RIGHTS OF ALL FLORIDIANS IN FORECLOSURE

First, the bill and my notes on why it is bad.

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Next, look at the House Analysis Here

Then, read the bill and make your own notes

Finally, when you are fully informed….

CLICK HERE AND CALL THE MEMBERS OF THE COMMITTEE AND TELL THEM NO ON UNFAIR FORECLOSURES!

EVERY AMERICAN MUST SEE THIS

Attorneys General from all across the country have been under intense pressure by the Obama Administration to accept the terms of the Very Bad Bank Bailout by tomorrow, February 6, 2012.

Word on the street is that there was a conference call scheduled this weekend between all of them to hammer out the details, twist arms, make promises, blackmail and extort.

It is also confirmed that the Obama Administration’s key man i the deal Shawn Donovan, aka Napolean Dynamite had a conference call with activist groups where he explained that the money to pay for the bank bailout bill would come not from the banks but from the investors in the mortgages, which means the 401ks, retirement and investment accounts of little folks like me and you.

HUH? Come again?

Wait just a cotton pickin’ minute here. How can ReTHUGliCON attorney generals like Florida’s Pam Bondi be screaming at other attorney generals like California’s Kamela Harris a Democrat to take a deal that amounts to nothing more than a federal taking of private property with no compensation?

Huh?  Come again?

I checked my “Being a Republican For Dummies” book and being opposed to things like that were covered in the first chapter.  Well, go ahead and read along here folks, cause this is really, really ugly….

In case you had any doubts about what the mortgage settlement was really about and why banks that were so keenly opposed to it are now willing to go ahead, the news of the last two days should settle any doubts.

As we had indicated earlier, one of the many leaks about the settlement showed that there had been a major shift its parameters. Of the $25 billion that has been bandied about as a settlement total for the biggest banks, comparatively little (less than $5 billion) is in cash. The rest comes in the form of credits for principal modifications of mortgages.

Originally, that was originally to come only from mortgages held by banks, meaning they would bear the costs. The fact that this meant that whether a homeowner might benefit would be random (were you one of the lucky ones whose mortgage had not been securitized?) was apparently used as an excuse to morph the deal into a huge win for them: allowing the banks to get credit for modifying mortgages that they don’t own.

The first rule of finance (well, maybe second, “fees are not negotiable” might be number one) is always use other people’s money before your own. So giving the banks permission to modify loans they don’t own guarantees that that is where the overwhelming majority of mortgage modifications will take place, ex those the banks would have done anyhow on their own loans. And the design of the program, that securitized loans will be given only half the credit towards the total, versus 100% for loans the banks own, merely assures that even more damage will be done to investors to pay for the servicers’ misdeeds.

Let me stress: this is a huge bailout for the banks. The settlement amounts to a transfer from retirement accounts (pension funds, 401 (k)s) and insurers to the banks. And without this subsidy, the biggest banks would be in serious trouble

Why? As leading mortgage analyst Laurie Goodman pointed out in a late 2010 presentation, just over half of the private label (non Fannie/Freddie) securitizations have second liens behind them (overwhelmingly home equity lines of credit). Moreover, homes with first liens only have far lower delinquency rates than homes with both first and second liens. Separately, various studies have found that defaults are also correlated with how far underwater a borrower is. If a borrower is too far in negative equity territory, it makes less sense for them to struggle to stay current, no matter how much they love their home.

FROM NAKED CAPITALISM

I see consumers all time who have been scammed and suffered as a result of the lies and fraud and crimes by con artists who victimize consumers, time  for people to wake up…here’s what the FTC says:

Fraudulent foreclosure “rescue” professionals use half-truths and outright lies to sell services that promise relief to homeowners in distress. According to the Federal Trade Commission (FTC), the nation’s consumer protection agency, the latest foreclosure rescue scam to exploit financially strapped homeowners pitches forensic mortgage loan audits.

In exchange for an upfront fee of several hundred dollars, so-called forensic loan auditors, mortgage loan auditors, or foreclosure prevention auditors backed by forensic attorneys offer to review your mortgage loan documents to determine whether your lender complied with state and federal mortgage lending laws. The “auditors” say you can use the audit report to avoid foreclosure, accelerate the loan modification process, reduce your loan principal, or even cancel your loan.

Nothing could be further from the truth. According to the FTC and its law enforcement partners:

• there is no evidence that forensic loan audits will help you get a loan modification or any other foreclosure relief, even if they’re conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer.
• some federal laws allow you to sue your lender based on errors in your loan documents. But even if you sue and win, your lender is not required to modify your loan simply to make your payments more affordable.
• if you cancel your loan, you will have to return the borrowed money, which may result in you losing your home.

If you are in default on your mortgage or facing foreclosure, you may be targeted by a foreclosure rescue scam. The FTC wants you to know how to recognize the telltale signs and report them. If you are faced with foreclosure, the FTC says legitimate options are available to help you save your home.

Spotting a Scam

If you’re looking for foreclosure prevention help, avoid any business that:

• guarantees to stop the foreclosure process – no matter what your circumstances are
• instructs you not to contact your lender, lawyer or credit or housing counselor
• collects a fee before providing any services accepts payment only by cashier’s check or wire transfer
• encourages you to lease your home so you can buy it back over time
• recommends that you make your mortgage payments directly to it, rather than your lender
• urges you to transfer your property deed or title to it
• offers to buy your house for cash at a fixed price that is inappropriate for the housing market
• pressures you to sign papers you haven’t had a chance to read thoroughly or that you don’t understand.

Finding Legitimate Help

Housing experts say that when you’re behind on your mortgage payments, maintaining communication with your lender is the most important thing you can do. Contact your lender or servicer immediately if you’re having trouble paying your mortgage or you have received a foreclosure notice. You may be able to negotiate a new repayment schedule.

Call 1-888-995-HOPE for free personalized advice from housing counseling agencies certified by the U.S. Department of Housing and Urban Development (HUD). This national hotline – open 24/7 – is operated by the Homeownership Preservation Foundation, a nonprofit member of the HOPE NOW Alliance of mortgage industry members and HUD-certified counseling agencies. For free guidance online, visit www.hopenow.com. For free information on the President’s plan to help homeowners, visit www.makinghomeaffordable.gov.

To learn more about home mortgages and other credit-related issues, visit www.ftc.gov/MoneyMatters. This site offers short, practical tips, videos, and links to reliable sources on a variety of topics from credit repair, debt collection, job hunting and job scams to vehicle repossession, managing mortgage payments and avoiding foreclosure rescue scams.

Reporting Fraud

If you think you’ve been dealing with a foreclosure fraudster, contact:

• Federal Trade Commission – www.ftc.gov
• Your state Attorney General – www.naag.org
• Your local Better Business Bureau – www.bbb.org

The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

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