tagged w/ Mortgage Crisis
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“I have been trying to get countrywide to adhere to this new program with zero results. I have made call after call on the HOPE FOR HOMEOWNERS program and keep getting the “run around” from them. They keep saying that they “have not heard about this program from upper management” so they cannot “process the paperwork on it yet”…meanwhile, each day that goes by, we wait and hope that we will not be thrown out on the streets. I know for a fact that they simply just don’t want to write down the differences….they are the worst culprits in this mess, I know….I used to underwrite mortgage loans for them until the “laid me off”, leaving us with no way to pay them the mortgage. I am since reemployed and have the capability to pay our mortgage after a 12 month mess. I firmly believe they will never use this program… they are too damn greedy.” - Matt“I have been trying to get countrywide to adhere to this new program with zero... more
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"As late as the spring of 2007, major national lenders were still aggressively marketing Alt-A products with with ridiculously vacuous underwriting criteria: A borrower could secure a no income/no asset documentation cash-out refinance loan, with a simultaneous second mortgage up to 95% CLTV, on a non-owner occupied investment property, with only a 620 FICO, two months PITI reserves and a debt to income ratio up to 60%..."
That means bad nortgages resetting through 2012!"As late as the spring of 2007, major national lenders were still aggressively... more
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I would really rather be paranoid than be right anytime.
So here is to all of those who were rejected for being a wet blanket when you warned of things to come, and even now get the evil eye from everyone at the office like this whole mess is somehow your fault for having known - Enjoy!I would really rather be paranoid than be right anytime.
So here is to all of those... more
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If you are a borrower under threat of foreclosure, and you are looking for an easy, pain-free resolution, I feel obligated to tell you now that there is no such option available to you. My hope is that the Government will somehow find a way to help distressed homeowners avoid foreclosure by requiring lenders to negotiate in good faith...If you are a borrower under threat of foreclosure, and you are looking for an easy,... more
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Two months ago, in late September, I penned a piece titled Liars, and the Lying Lies They Are Telling You, which examined just one single publicly available FDIC document from 2002 which shows beyond any doubt that the Feds were not only aware of the problems in the finance industry that have led to near economic collapse...Two months ago, in late September, I penned a piece titled Liars, and the Lying Lies... more
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That’s right - a solution to the foreclosure problem that would save banks from certain ruin, keep homeowners in their homes instead of out on the streets and onto Public Assistance, put a bottom on the housing price crash while allowing for high-cost areas to come into par with median income levels...That’s right - a solution to the foreclosure problem that would save banks from... more
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Don’t assume that an “identity thief” is a “hacker” in the computer crime underworld. The “identity thief” may simply obtain the information from a source and then sell the information. However, “identity thieves” are now recruiting “hackers” to obtain access to electronic databases which contain the most choice data. The trafficking of stolen data is a quick operation. The hard earned reputation, financial & banking records as well as personal information such as age, marital status, and children’s names can all be sold for a few dollars each...Don’t assume that an “identity thief” is a “hacker” in... more
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More Institutions Report Declining Earnings, Quarterly Losses: Troubled assets continued to mount at insured commercial banks and savings institutions in the third quarter of 2008, placing a growing burden on industry earnings. Expenses for credit losses topped $50 billion for a second consecutive quarter, absorbing one-third of the industry’s net operating revenue...More Institutions Report Declining Earnings, Quarterly Losses: Troubled assets... more
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that means we lose to the market by, you know, over a half a trillion dollars, year after year after year. And investors have to know about that, because it speaks to a real flaw in our system, where the financial system is consuming an excessive share of the economy’s resources…it turns out the financial sector subtracts value from society. John Bogle, Vanguard Founderthat means we lose to the market by, you know, over a half a trillion dollars, year... more
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This program is only making taxpayer dollars available to everyone who lost money in risky securities that had promised high yields in short periods, and doing nothing to stem the flood of foreclosures, and doing nothing to modify the mortgages of those who can avoid foreclosure at current 30 year market rates, if given the opportunity.This program is only making taxpayer dollars available to everyone who lost money in... more
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Yesterday another story emerged that has created some buzz regarding the current threats to our nation’s information security, leading off with a recent case of information and identity theft by a company insider at a major financial institution. With the number of layoffs on the rise in the financial field, how safe is any one’s personal financial information anymore?Yesterday another story emerged that has created some buzz regarding the current... more
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The problem the banks saw was that the people were using these loans as short-term real estate investment loans with a really low initial payment, giving the investors time to remodel the property in order to “flip” the house and then move on to the next investment without having to sink so much capital into principle and interest with a higher interest commercial loan payment.The problem the banks saw was that the people were using these loans as short-term... more
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The U.S. Internal Revenue Service just announced that it will allow homeowners to apply to make their mortgage loan the primary lien against their homes and if they have a tax lien on the home as well, it can become the secondary lien.
A lien is a claim that another party has on your property. Your property is the collateral for that loan. The IRS may place a lien on your home if you owe back taxes.
Taxpayers may also request the dismissal of IRS's claim (lien) if the home is being sold for less than the balance of the mortgage loan.
For more information visit IRS.gov and read publications 783 and 784. Publication 4235 provides addresses where you can send the application for the tax lien discharge or subordination.
It takes 30 days for these requests to be processed.
According to IRS, currently, there are more than 1 million federal tax liens outstanding tied to both real and personal property. The IRS issues more than 600,000 federal tax lien notices annually.The U.S. Internal Revenue Service just announced that it will allow homeowners to... more
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In his latest address (December 13th 2008), Barack Obama announce his Secretary of Housing and Urban Development, plus his views on the housing crisis.In his latest address (December 13th 2008), Barack Obama announce his Secretary of... more
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Just to show that NHL teams are very aware of the economic woes fans are going through, every Saturday St. Louis Blues NHL game will be a Fannie and Freddie Mortgage Saturday...
One lucky fan who gets their ticket called will have their home mortgages paid for 4 months.Just to show that NHL teams are very aware of the economic woes fans are going... more
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kozeki
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added this
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3 years ago
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The economy jolted into reverse during the third quarter as consumers cut back on their spending by the biggest amount in 28 years, the strongest signal yet the country has hurtled into recession.
The broadest barometer of the nation's economic health, gross domestic product, shrank at a 0.3 percent annual rate in the July-September quarter, the Commerce Department reported today. It marked the worst showing since the economy contracted at a 1.4 percent pace in the third quarter of 2001, when the nation was suffering through its last recession.
The latest GDP reading marked a rapid loss of traction for the economy, which logged growth of 2.8 percent in the second quarter, and is sure to buttress the belief of many economists that the nation is in the throes of a painful downturn.
The deterioration reflected a sharp retrenchment by consumers, whose spending accounts for the largest chunk of national economic activity. Consumers cut back their spending at a 3.1 percent pace in the third quarter, the most since the second quarter of 1980, when the country was in the grip of recession.
GDP measures the value of all goods and services produced within the United States and is the broadest barometer of the country's economic health.
While the third-quarter's contraction wasn't as deep as the 0.5 percent annualized decline analysts expected, the poor showing underscored the terrible toll of the housing, credit and financial crisis.
More at liinkThe economy jolted into reverse during the third quarter as consumers cut back on... more
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Hillary Clinton transitions from opponent to supporter with this speech she gave at an Obama rally in Florida on behalf of his campaign.Hillary Clinton transitions from opponent to supporter with this speech she gave at an... more
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As the classified ads put it, everything must go. Socks. Christmas ornaments. Microwave ovens. Three-year-old Marita Duarte’s tricycle was sold by her mother, Beatriz, to a stranger for $3 even as her daughter was riding it.
On Mission Ridge Drive and other avenues, lanes and ways in this formerly booming community, even birthday celebrations must go. “It was no money, no birthday,” said Ms. Duarte, who lost her job as a floral designer two months ago. The family commemorated Marita’s third birthday without presents last week, the occasion marked by a small cake with Cinderella on the vanilla frosting. They will move into a rental apartment next month.
An eternity ago, people in this city in northern San Joaquin County braved four-hour round-trip commutes to the San Francisco Bay Area for a toehold on the dream. Today, Manteca’s lawns and driveways are storefronts of the new garage-sale economy — the telltale yellow signs plastered in the rear windows of parked cars Friday through Sunday directing traffic to yet another sale, yet another family.
“You can get great deals,” said Sharrell Johnson, 32, who was scouting for toys in the Indian summer heat last Friday amid boxes of tools and DVDs and forests of little skirts and shirts dangling from plastic hangers on suspended rope. “Sad to say, you’re finding really good things. Because everybody’s losing their homes.”
The garage-sale economy is flourishing here and in many other regions of the country, so much so that some cities have begun cracking down. With more residents trying to increase their income, the city of Weymouth, Mass., limited yard sales to just three a year per address. Detective Sgt. Richard Fuller said it was now common to see 15 cars parked in front of a house.
Richmond, Ind., has had such an onslaught of garage sale signs posted in the right of way that the city has placed stickers on prominent light poles warning of violations and fines.
But it is a Sisyphean task: Manteca’s ordinance, restricting residents to two sales a year, is widely ignored.
The sales are part of the once-underground “thrift economy,” as a team of Brigham Young University sociologists have called it, which includes thrift stores, pawn shops and so-called recessionistas name-brand shopping at Goodwill. As the classified ads put it, everything must go. Socks. Christmas ornaments.... more
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The myth that laissez faire exists in the present-day United States and is responsible for our current economic crisis is promulgated by people who know practically nothing whatever of sound, rational economic theory or the actual nature of laissez-faire capitalism. They espouse it despite, or rather because of, their education at the leading colleges and universities of the country. When it comes to matters of economics, their education has steeped them entirely in the thoroughly wrong and pernicious doctrines of Marx and Keynes. In claiming to see the existence of laissez faire in the midst of such massive government interference as to constitute the very opposite of laissez faire, they are attempting to rewrite reality in order to make it conform with their Marxist preconceptions and view of the world.
They absorb the doctrines of Marx more in history, philosophy, sociology, and literature classes than in economics classes. The economics classes, while usually not Marxist themselves, offer only highly insufficient rebuttal of the Marxist doctrines and devote almost all of their time to espousing Keynesianism and other, less-well-known anticapitalistic doctrines, such as the doctrine of pure and perfect competition.
Very few of the professors and their students have read so much as a single page of the writings of Ludwig von Mises, who is the preeminent theorist of capitalism and knowledge of whose writings is essential to its understanding. Almost all of them are thus essentially ignorant of sound economics.
[End of excerpt]
Full article at link by George Reisman, Ph.D.// Mises InstituteThe myth that laissez faire exists in the present-day United States and is responsible... more
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Employees at Moody's Investors Service told executives that issuing dubious creditworthy ratings to mortgage-backed securities made it appear they were incompetent or ``sold our soul to the devil for revenue,'' according to e-mails obtained by U.S. House investigators.
The e-mail was one of several documents made public today at a hearing of the House Oversight and Government Reform Committee in Washington, which is reviewing the role played by Moody's, Standard & Poor's and Fitch Ratings in the global credit freeze.
``The story of the credit rating agencies is a story of colossal failure,'' Committee Chairman Henry Waxman, a California Democrat, said at the hearing. ``The result is that our entire financial system is now at risk.''
Moody's and S&P in recent months had to downgrade thousands of mortgage-backed securities, many of which were originally given top AAA ratings, as delinquencies on the underlying loans soared well beyond the companies' estimates and home values fell faster than they expected. The downgrades contributed to the collapse of Bear Stearns Cos. and Lehman Brothers Holdings Inc., and compelled the U.S. government to set up a system to buy $700 billion of distressed assets from financial companies.
The Securities and Exchange Commission in a July report found the credit-rating companies improperly managed conflicts of interest and violated internal procedures in granting top rankings to mortgage bonds.
An e-mail that a S&P employee wrote to a co-worker in 2006, obtained by committee investigators, said, ``Let's hope we are all wealthy and retired by the time this house of cards falters.'' Employees at Moody's Investors Service told executives that issuing dubious... more
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