August 6, 2009
It's beginning to look like the Homeowner's Stability Initiative program and the $75 billion that was to fund it, is being used to further line the pockets of everyone but homeowners. Months have passed with no action to even formally implement the program, instead Congress allows lenders to continue to foreclose on homes that could have been saved under the program.
We're calling on the House Banking Committee and Chairman Barney Frank and the Senate Finance Committee and Chairman Max Baucus to immediately investigate why this program is apparently being blocked and why the money to fund the program is being used for other purposes.
Why is Congress refusing to help homeowners? It's estimated that nearly 50% of all homes with mortgages will be "underwater" in the next 2 years. Does Congress and lenders really think Americans are so stupid that they will continue to pay on these loans? And, just because "existing" home sales have risen recently, does Washington think we don't realize it's because foreclosed houses are being sold at greatly reduced prices? This is the real estate recovery they're predicting? I guess the economy will really spring to life when greedy lenders have foreclosed on half of all homes with a loan!
Mr. Frank, Mr. Baucus, you must immediately require ALL lenders to contact homeowners and offer them a new, low interest, fixed-rate mortgage AND a reduction of principal inline with current market values. The new mortgage must include paying all outstanding State property taxes and insurance payments and adding that amount to the new principal. The new fixed-rate mortgage must also require the mortgage company to escrow money from monthly payments to cover paying annual property tax and insurance payments in the future.
Showing posts with label Barney Frank. Show all posts
Showing posts with label Barney Frank. Show all posts
Thursday, August 6, 2009
Tuesday, August 4, 2009
CASH FOR ....?
August 4, 2009
Now that the automakers have been further "stimulated" by the "Cash for Clunkers" program, who's next in line? The $75 billion earmarked for the "Homeowners Stability Initiative" is being whittled away by more handouts to everyone but homeowners. After many months, this program is inexplicably spinning its wheels and distressed homeowners wait for the assistance promised by the Obama administration. This is another example of the money set aside for the Homeowner's Stability Initiative program going to help other causes - namely, those with a stronger lobby in Washington (i.e., banks, brokers, insurance, automakers, etc.).
In areas hardest hit by the real estate collapse, especially in areas with historically high home prices, this program could provide significant relief. There has been no assistance provided to homeowners with "jumbo" loans, who now see their investments further and further underwater and who have suffered larger losses, percentage wise, than most. Is the Administration and Congress purposely ignoring the housing issue? They seem buoyed by recent increases in pending home sales and hesitant to take action.
The problem with the increased pending home sales figures is that they mainly represent foreclosed properties that are being sold far below market value. Not only does this not help homeowners trying to retain their homes, it further depresses comparative values of the surrounding neighborhoods making a real recovery of prices impossible.
There has been extensive reporting of the increase in "pending" home sales, but nothing is being said about the reason or consequences associated with this perceived recovery. An average of only 15% of eligible mortgagees have even been approached by their lenders to modify their loans, with some lenders only at 4%. These are the "big boys" of course, Citibank, Bank of America, Wells Fargo - well you know the players. And the "mortgage servicers" like Saxon Mortgage are simply a joke. They are simply shilling for "investors" who, for some strange reason, wish to remain anonymous. These companies are required to produce the actual names of the "investors" if requested by the mortgagee. However, we've heard of no one who has actually gotten a response. By ignoring this request, they should have all of their rights concerning foreclosure stripped. Furthermore, these "servicers" should be required to pay off each mortgage that they've ignored and the "investor" must then turn over the property to the homeowner with a clear title. Only by creating significant penalties will these crooks begin to play by the rules.
Principal reduction is an huge and important issue that lenders still refuse to address. They will not face reality, instead they are certain Washington will protect them from having to do the right thing. How can lenders expect homeowners to continue to pay property taxes on a home that is now worth 30%-40% less than the mortgage and the value listed on the tax rolls? Property taxes are a huge annual payment for homeowners living in States with excessive taxes and this tax can represent a difference of $10,000 or more between the inflated value of the home recorded on the tax rolls versus the current market value of the home. Again, these State governments are insisting that homeowners pay the inflated tax bill, so that culprits like California can continue to support illegals. Do we really want to give these clowns our money to simply play with as they please?
So what's the homeowner to do? Lenders would love to continue down the current path, foreclose on as many homes as possible and continue to ring their cash register. All homeowners who are currently underwater in their loans must insist that Congress address this issue immediately. Withholding property tax payments, while potentially hurting a home owner's credit rating, is the only way to get State governments to address the problem. We are advocating that all homeowners adopt this stance and demand State and Federal governments take action before more hostile approaches are taken by taxpayers. While we do not approve of civil disorder, our elected officials had better wake-up before they are faced with some very difficult decisions.
Distressed homeowners deserve the same attention that other troubled institutions have promptly received. Banks, mortgage companies, insurance companies, and the auto industry have enjoyed multiple injections of taxpayer money to keep them alive. Many of these recipients of taxpayer money are the same entities that caused the crisis, but they are strangely the first to find relief.
Speaker Pelosi, Chairman Frank, Secretary Geithner, Representatives and Congressmen from California (where property taxes and State taxes in general are totally out of control and unsustainable) are in positions to get some action for homeowners. For example, exactly what has House Representative Lois Capps, who represents some of the highest property value areas in Southern California, done for her constituents? The answer is NOTHING! She has meekly sat by as her District continues to see huge decreases in property values. We warned that we would begin calling out individual members of Congress that are doing nothing for their constituents. Unfortunately, it's beginning to look like I'll be listing quite a few names from both sides of the aisle.
These elected officials are totally in the pocket of banks and lenders and fear for their political lives. I can guarantee that this is not something they need worry about. If they do not take immediate action, voters will decide for them and the result is going to be very disappointing for them.
Now that the automakers have been further "stimulated" by the "Cash for Clunkers" program, who's next in line? The $75 billion earmarked for the "Homeowners Stability Initiative" is being whittled away by more handouts to everyone but homeowners. After many months, this program is inexplicably spinning its wheels and distressed homeowners wait for the assistance promised by the Obama administration. This is another example of the money set aside for the Homeowner's Stability Initiative program going to help other causes - namely, those with a stronger lobby in Washington (i.e., banks, brokers, insurance, automakers, etc.).
In areas hardest hit by the real estate collapse, especially in areas with historically high home prices, this program could provide significant relief. There has been no assistance provided to homeowners with "jumbo" loans, who now see their investments further and further underwater and who have suffered larger losses, percentage wise, than most. Is the Administration and Congress purposely ignoring the housing issue? They seem buoyed by recent increases in pending home sales and hesitant to take action.
The problem with the increased pending home sales figures is that they mainly represent foreclosed properties that are being sold far below market value. Not only does this not help homeowners trying to retain their homes, it further depresses comparative values of the surrounding neighborhoods making a real recovery of prices impossible.
There has been extensive reporting of the increase in "pending" home sales, but nothing is being said about the reason or consequences associated with this perceived recovery. An average of only 15% of eligible mortgagees have even been approached by their lenders to modify their loans, with some lenders only at 4%. These are the "big boys" of course, Citibank, Bank of America, Wells Fargo - well you know the players. And the "mortgage servicers" like Saxon Mortgage are simply a joke. They are simply shilling for "investors" who, for some strange reason, wish to remain anonymous. These companies are required to produce the actual names of the "investors" if requested by the mortgagee. However, we've heard of no one who has actually gotten a response. By ignoring this request, they should have all of their rights concerning foreclosure stripped. Furthermore, these "servicers" should be required to pay off each mortgage that they've ignored and the "investor" must then turn over the property to the homeowner with a clear title. Only by creating significant penalties will these crooks begin to play by the rules.
Principal reduction is an huge and important issue that lenders still refuse to address. They will not face reality, instead they are certain Washington will protect them from having to do the right thing. How can lenders expect homeowners to continue to pay property taxes on a home that is now worth 30%-40% less than the mortgage and the value listed on the tax rolls? Property taxes are a huge annual payment for homeowners living in States with excessive taxes and this tax can represent a difference of $10,000 or more between the inflated value of the home recorded on the tax rolls versus the current market value of the home. Again, these State governments are insisting that homeowners pay the inflated tax bill, so that culprits like California can continue to support illegals. Do we really want to give these clowns our money to simply play with as they please?
So what's the homeowner to do? Lenders would love to continue down the current path, foreclose on as many homes as possible and continue to ring their cash register. All homeowners who are currently underwater in their loans must insist that Congress address this issue immediately. Withholding property tax payments, while potentially hurting a home owner's credit rating, is the only way to get State governments to address the problem. We are advocating that all homeowners adopt this stance and demand State and Federal governments take action before more hostile approaches are taken by taxpayers. While we do not approve of civil disorder, our elected officials had better wake-up before they are faced with some very difficult decisions.
Distressed homeowners deserve the same attention that other troubled institutions have promptly received. Banks, mortgage companies, insurance companies, and the auto industry have enjoyed multiple injections of taxpayer money to keep them alive. Many of these recipients of taxpayer money are the same entities that caused the crisis, but they are strangely the first to find relief.
Speaker Pelosi, Chairman Frank, Secretary Geithner, Representatives and Congressmen from California (where property taxes and State taxes in general are totally out of control and unsustainable) are in positions to get some action for homeowners. For example, exactly what has House Representative Lois Capps, who represents some of the highest property value areas in Southern California, done for her constituents? The answer is NOTHING! She has meekly sat by as her District continues to see huge decreases in property values. We warned that we would begin calling out individual members of Congress that are doing nothing for their constituents. Unfortunately, it's beginning to look like I'll be listing quite a few names from both sides of the aisle.
These elected officials are totally in the pocket of banks and lenders and fear for their political lives. I can guarantee that this is not something they need worry about. If they do not take immediate action, voters will decide for them and the result is going to be very disappointing for them.
Thursday, July 30, 2009
SENATE TO INVESTIGATE BANKS & BROKERAGE FIRMS FOR RESIDENTIAL MORTGAGE FRAUD
July 31, 2009
In an encouraging move by the Senate, a panel is reportedly investigating a number of banks and brokerage houses including Goldman Sachs, Washington Mutual, Deutsch Bank for mortgage fraud. This is the best news homeowners have received during the housing crisis that was initiated when these financial concerns got too greedy.
It's being alleged that many financial institutions engaged in fraud when they knowingly allowed unqualified applicants to obtain mortgages. They subsequently "bundled" these "liar loans/no doc loans" with other more stable mortgages, misrepresented the quality of the mortgages for the rating agencies and then sold them as investment securities.
These greed-driven criminals were so confident that they had the perfect scam that they had the audacity to take out insurance against the securities they had sold to protect them from losses when their plan to destroy the real estate market came to fruition. The insurance company (AIG) couldn't pay when the claims came in and the taxpayer had to step in and actually pay these crooks AGAIN! Now, they'd like to get the property back through foreclosure so they can profit even further.
It's hard to believe they've been able to successfully divert attention from their guilt, but homeowners are beginning to put the pieces together. The picture that is developing implicates Congressional members such as Chris Dodd, Kent Conrad, and Barney Frank among others who will be fully exposed during the fraud investigation.
In an encouraging move by the Senate, a panel is reportedly investigating a number of banks and brokerage houses including Goldman Sachs, Washington Mutual, Deutsch Bank for mortgage fraud. This is the best news homeowners have received during the housing crisis that was initiated when these financial concerns got too greedy.
It's being alleged that many financial institutions engaged in fraud when they knowingly allowed unqualified applicants to obtain mortgages. They subsequently "bundled" these "liar loans/no doc loans" with other more stable mortgages, misrepresented the quality of the mortgages for the rating agencies and then sold them as investment securities.
These greed-driven criminals were so confident that they had the perfect scam that they had the audacity to take out insurance against the securities they had sold to protect them from losses when their plan to destroy the real estate market came to fruition. The insurance company (AIG) couldn't pay when the claims came in and the taxpayer had to step in and actually pay these crooks AGAIN! Now, they'd like to get the property back through foreclosure so they can profit even further.
It's hard to believe they've been able to successfully divert attention from their guilt, but homeowners are beginning to put the pieces together. The picture that is developing implicates Congressional members such as Chris Dodd, Kent Conrad, and Barney Frank among others who will be fully exposed during the fraud investigation.
Thursday, July 16, 2009
ONLY WASHINGTON CAN SAVE THE HOUSING MARKET
July 16, 2009
It's become all to evident that the banks and mortgage companies have positioned and insulated themselves against any financial losses that they might have experienced as a result of the collapse in housing prices. Worst of all, the collapse was totally due to these companies own actions, with implicit (and sometimes public) approval from Congress and no oversight from the SEC.
Mr. Frank, Mr. Baucus, Mr. Grassley, Mr. Dodd please investigate the refusal of most banks and mortgage companies to deal with homeowners in good faith. Large numbers of "loan modification services" have recently been found to be scams, again taking advantage of distressed homeowners. Homes that fall into the "jumbo loan" category aren't selling because it's nearly impossible to obtain financing, even with a huge down payment. "Short sales" are routinely being dismissed by these companies because they are sure they can make out better by forcing homeowners into foreclosure.
Even though these companies engaged in deception and were allowed to operate with no regulatory oversight, attorneys will not take on these groups to force them to face the music. Instead, they continue to operate in a manner that is beyond greed and now approaches a level never before seen.
Over 336,000 properties were foreclosed on just last month! When will someone in the Federal government stop this bleeding?
It's become all to evident that the banks and mortgage companies have positioned and insulated themselves against any financial losses that they might have experienced as a result of the collapse in housing prices. Worst of all, the collapse was totally due to these companies own actions, with implicit (and sometimes public) approval from Congress and no oversight from the SEC.
Mr. Frank, Mr. Baucus, Mr. Grassley, Mr. Dodd please investigate the refusal of most banks and mortgage companies to deal with homeowners in good faith. Large numbers of "loan modification services" have recently been found to be scams, again taking advantage of distressed homeowners. Homes that fall into the "jumbo loan" category aren't selling because it's nearly impossible to obtain financing, even with a huge down payment. "Short sales" are routinely being dismissed by these companies because they are sure they can make out better by forcing homeowners into foreclosure.
Even though these companies engaged in deception and were allowed to operate with no regulatory oversight, attorneys will not take on these groups to force them to face the music. Instead, they continue to operate in a manner that is beyond greed and now approaches a level never before seen.
Over 336,000 properties were foreclosed on just last month! When will someone in the Federal government stop this bleeding?
Wednesday, July 15, 2009
BANK OF AMERICA RIPPING OFF CUSTOMERS
July 15, 2009
We've received several disturbing reports concerning the Bank of America (BofA). Recently, this recipient of $25 billion in TARP funds, "rescue" money from tax paying Americans, has apparently begun an illegal and fraudulent program to re-open business and commercial accounts that were closed by the customer. BofA then attempts to charge the fraudulently-opened account for services (e.g., payroll, etc.) that the bank had provided when the account was open.
Of course the accounts have no funds since they had been appropriately closed by the customer, so BofA sends the fraudulently opened accounts to a collection agency. Once this has happened, all parties involved (i.e., BofA, collection agencies, etc.) begin the merry-go-round of denying responsibility and accountability. The former customer is never notified of this transaction by BofA, that is until they begin receiving harassing phone calls from bill collectors and demands for payment in the mail.
Now, taxpayers have had to bail-out these crooks in order to save their tails and in return they are trying to rob customers who tried to properly close their accounts handled by this behemoth. We are calling on the Senate Banking Committee, the FDIC, the Federal Reserve and State Attorneys General to investigate BofA in regards to their illegal activity.
These types of activities by banks must be stopped! They have failed their stockholders and Americans in general, requiring rescue TARP funds in order to stay in business. They cannot be allowed to perpetrate outright fraud on former customers.
Please Mr. Frank, initiate an investigation immediately!
We've received several disturbing reports concerning the Bank of America (BofA). Recently, this recipient of $25 billion in TARP funds, "rescue" money from tax paying Americans, has apparently begun an illegal and fraudulent program to re-open business and commercial accounts that were closed by the customer. BofA then attempts to charge the fraudulently-opened account for services (e.g., payroll, etc.) that the bank had provided when the account was open.
Of course the accounts have no funds since they had been appropriately closed by the customer, so BofA sends the fraudulently opened accounts to a collection agency. Once this has happened, all parties involved (i.e., BofA, collection agencies, etc.) begin the merry-go-round of denying responsibility and accountability. The former customer is never notified of this transaction by BofA, that is until they begin receiving harassing phone calls from bill collectors and demands for payment in the mail.
Now, taxpayers have had to bail-out these crooks in order to save their tails and in return they are trying to rob customers who tried to properly close their accounts handled by this behemoth. We are calling on the Senate Banking Committee, the FDIC, the Federal Reserve and State Attorneys General to investigate BofA in regards to their illegal activity.
These types of activities by banks must be stopped! They have failed their stockholders and Americans in general, requiring rescue TARP funds in order to stay in business. They cannot be allowed to perpetrate outright fraud on former customers.
Please Mr. Frank, initiate an investigation immediately!
Monday, July 6, 2009
MESSAGE TO STATE AND FEDERAL POLITICIANS - GET TO WORK!
July 6, 2009
An old friend of L. Ike's just stopped by to visit. Seems the former diplomat is a bit disturbed over current events in Washington. He said, "Ike, you know it's simpler than everyone makes it". He proceeds to say that it would be very easy to get a message to the politicians - "cut off the money!". "You know, they can't throw us all in jail", he "joked". "Nothing else is going to get their attention".
The old fellow talks to a lot of pretty connected individuals around the country. According to our friend, not too many people are happy about the prospect of giving the State and Federal governments nearly half of their income via taxes to fund a "business as usual" agenda in Washington and their State capitals. Citizens want waste and pet projects stopped. No more blatant support of illegal aliens, close our borders until we can get a handle on our economy. And the next bank that tries to get additional taxpayer money had better think twice about it. And, if people have a choice of where to live, do not settle in a State with a State income and sales tax. That is unless you want another 20-25% of your income to be taken and used by the State politicians for nothing more than mainly fattening their own wallets.
Most people don't realize that for a small percentage of what the Federal government has already thrown away, they could have saved the homes of those who deserved it. We're absolutely not in favor of saving the homes of those who elected to take advantage of "no doc" loan programs, when they and the lenders knew full well they couldn't afford the obligation. This is another wonderful idea we can thank ol' Barney Frank, Nancy Pelosi, Maxine Waters and the rest of their cabal for instituting in a successful effort to increase their voter base. But many deserving families have had their future destroyed while Washington politicians give them lip service at best.
Every foreclosure should have been and should furthermore be reviewed by a truly independent concern. If the homeowner can provide proof of income sufficient to pay a realistic fixed-rate mortgage based on the new significantly lower property value, they should be allowed to stay in their home. So what if the Federal government might have to help the homeowner by paying back property taxes or whatever. It's a small price in comparison and it would do more to rescue the economy than anything attempted to date.
This would/could have cost a minuscule amount of taxpayer money compared to the wholesale giveaway of tax money that the banks, insurance and automobile companies have received. Those concerns have received and continue to receive obscene amounts of taxpayer money from Washington politicians for one main purpose: to ensure their buddies on Wall Street could continue to live like kings by not interrupting the flow of huge amounts of money paid to executives who basically destroyed their companies while being rewarded for doing so. Ike wishes he had learned this secret to success when he was younger. He always thought that you had to do something significantly positive that added value to your company in order to be considered for a "bonus".
Politicians, stay at home and do the job you were elected to do - I know it would be a radical approach, but give it a try! Voters are getting fed up with your feeble attempts to represent them. You'll no longer be able to fool your constituents because people like our fearless publisher won't let it happen - you'll be gone!
If the politicians don't quickly get the message, our old friend's recommendation would at least sure make things interesting!
An old friend of L. Ike's just stopped by to visit. Seems the former diplomat is a bit disturbed over current events in Washington. He said, "Ike, you know it's simpler than everyone makes it". He proceeds to say that it would be very easy to get a message to the politicians - "cut off the money!". "You know, they can't throw us all in jail", he "joked". "Nothing else is going to get their attention".
The old fellow talks to a lot of pretty connected individuals around the country. According to our friend, not too many people are happy about the prospect of giving the State and Federal governments nearly half of their income via taxes to fund a "business as usual" agenda in Washington and their State capitals. Citizens want waste and pet projects stopped. No more blatant support of illegal aliens, close our borders until we can get a handle on our economy. And the next bank that tries to get additional taxpayer money had better think twice about it. And, if people have a choice of where to live, do not settle in a State with a State income and sales tax. That is unless you want another 20-25% of your income to be taken and used by the State politicians for nothing more than mainly fattening their own wallets.
Most people don't realize that for a small percentage of what the Federal government has already thrown away, they could have saved the homes of those who deserved it. We're absolutely not in favor of saving the homes of those who elected to take advantage of "no doc" loan programs, when they and the lenders knew full well they couldn't afford the obligation. This is another wonderful idea we can thank ol' Barney Frank, Nancy Pelosi, Maxine Waters and the rest of their cabal for instituting in a successful effort to increase their voter base. But many deserving families have had their future destroyed while Washington politicians give them lip service at best.
Every foreclosure should have been and should furthermore be reviewed by a truly independent concern. If the homeowner can provide proof of income sufficient to pay a realistic fixed-rate mortgage based on the new significantly lower property value, they should be allowed to stay in their home. So what if the Federal government might have to help the homeowner by paying back property taxes or whatever. It's a small price in comparison and it would do more to rescue the economy than anything attempted to date.
This would/could have cost a minuscule amount of taxpayer money compared to the wholesale giveaway of tax money that the banks, insurance and automobile companies have received. Those concerns have received and continue to receive obscene amounts of taxpayer money from Washington politicians for one main purpose: to ensure their buddies on Wall Street could continue to live like kings by not interrupting the flow of huge amounts of money paid to executives who basically destroyed their companies while being rewarded for doing so. Ike wishes he had learned this secret to success when he was younger. He always thought that you had to do something significantly positive that added value to your company in order to be considered for a "bonus".
Politicians, stay at home and do the job you were elected to do - I know it would be a radical approach, but give it a try! Voters are getting fed up with your feeble attempts to represent them. You'll no longer be able to fool your constituents because people like our fearless publisher won't let it happen - you'll be gone!
If the politicians don't quickly get the message, our old friend's recommendation would at least sure make things interesting!
Friday, July 3, 2009
HOW DID THE HOUSING CRISIS DEVELOP?
July 3, 2009
How did the housing crisis develop and who was responsible? It's basically pretty simple and the reason is all too obvious. Too often, reporters get so bogged down in their own attempt to explain a particular situation that they bore their readers. We're going to give to the "bullet points", some of the major names of those involved, plus links for you to do your own research if you don't believe what you're about to read. We also recommend that you watch CNBC's special "House of Cards" the next time it plays in your area or on demand at Hulu.com.
Some of the major names you need to blame are:
Members of Congress Barney Frank, Maxine Waters, Nancy Pelosi, Chris Dodd.
Other Federal government players: Fed Chairman Ben Bernanke; Christopher Cox Chairman of the SEC and SEC regulators.
Main Players: Fredrick Rains of Freddie Mac; Angelo Mozilo former CEO of Countrywide Mortgage; investment banks/bankers and hedge funds who conspired to create an investment vehicle known as Collateralized Debt Obligations (CDO) made up of "TOXIC" sub-prime mortgages packaged and fraudulently rated AAA by underwriters; AIG.
Reason: GREED! Plain and simple greed! The accumulation of obscene amounts of money as "salary, bonus, stock options" that were thrown at the top players in this "game".
This is what happened. The Congressional players mentioned earlier wanted to expand their voter base. They correctly figured that if they could play to the disenfranchised, a huge and previously ambivalent and non-voting portion of our population, they could add tremendous numbers to their constituency.
Now, how to get this group onboard? Answer: Let's make sure they can "live the American dream" by becoming homeowners. We'll make it next to impossible for anyone to be turned down for a mortgage. We'll even let people with no documented income qualify.
Now, we need to get others to buy into the scheme. That's where Freddie Mac and Fredrick Rains enters the picture. Promise him big bonuses for buying up these toxic mortgages and one major player is on the team. Now, get the word out to mortgage brokers, investment bankers and let them "play around" with this worthless paper to make it look like an investment opportunity.
The investment boys/girls came up with the CDO idea for marketing these toxic "assets". These CDOs were sold to pentions, mutual funds, etc. and they were off - making huge amounts of money for themselves in the process.
Now, to make sure they didn't feel the sting when things turned bad (and they knew they would). They bought insurance from AIG to insure that they would be paid when things eventually went in the toilet.
Now, most homeowner's have lost most if not all of the equity they had built over years of faithfully paying their monthly mortgage payment. The bankers and investment bunch have collected 10's of millions of dollars in "bonuses", which basically bankrupted many of their companies. Many of their firms have now been rescued by the Federal government at taxpayer's expense and taxpayers have also rescued AIG, who had to pay off on the insurance policies when the CDOs became worthless.
When are government officials going to actually help out homeowners? Never, unless, homeowners demand that this issue be seriously addressed. Will Congress and the President listen? Probably not until their hand if forced. The Federal and State governments are in desperate need of funds. They intend to find it anywhere they can.
Support for the nonsense going on in Washington and in many State Capitals (attention California) has to stop. They cannot continue to spend and ignore the underlying issue if citizens don't fund their folly. Elected officials who don't get the message soon will find themselves outside the club after the next chance voters have to throw the bums out!
A mere fraction of the "stimlus package" devoted to housing could have arrested the housing meltdown and quickly turned the economy around. Now, we've paid off all the cronies and insiders, own automobile companies, insurance companies and things are NOT getting better.
Mr. President and members of Congress, please require all holders of mortgages to immediately do the following:
How CDOs are to blame:
http://marketplace.publicradio.org/display/web/2008/10/03/cdo/
Angelo Mozilo
http://www.sec.gov/news/press/2009/2009-129.htm
http://www.nytimes.com/2009/06/05/business/05insider.html
Franklin Raines and Freddie Mac
http://seattletimes.nwsource.com/html/businesstechnology/2004358433_webraines18.html (Raines)
How did the housing crisis develop and who was responsible? It's basically pretty simple and the reason is all too obvious. Too often, reporters get so bogged down in their own attempt to explain a particular situation that they bore their readers. We're going to give to the "bullet points", some of the major names of those involved, plus links for you to do your own research if you don't believe what you're about to read. We also recommend that you watch CNBC's special "House of Cards" the next time it plays in your area or on demand at Hulu.com.
Some of the major names you need to blame are:
Members of Congress Barney Frank, Maxine Waters, Nancy Pelosi, Chris Dodd.
Other Federal government players: Fed Chairman Ben Bernanke; Christopher Cox Chairman of the SEC and SEC regulators.
Main Players: Fredrick Rains of Freddie Mac; Angelo Mozilo former CEO of Countrywide Mortgage; investment banks/bankers and hedge funds who conspired to create an investment vehicle known as Collateralized Debt Obligations (CDO) made up of "TOXIC" sub-prime mortgages packaged and fraudulently rated AAA by underwriters; AIG.
Reason: GREED! Plain and simple greed! The accumulation of obscene amounts of money as "salary, bonus, stock options" that were thrown at the top players in this "game".
This is what happened. The Congressional players mentioned earlier wanted to expand their voter base. They correctly figured that if they could play to the disenfranchised, a huge and previously ambivalent and non-voting portion of our population, they could add tremendous numbers to their constituency.
Now, how to get this group onboard? Answer: Let's make sure they can "live the American dream" by becoming homeowners. We'll make it next to impossible for anyone to be turned down for a mortgage. We'll even let people with no documented income qualify.
Now, we need to get others to buy into the scheme. That's where Freddie Mac and Fredrick Rains enters the picture. Promise him big bonuses for buying up these toxic mortgages and one major player is on the team. Now, get the word out to mortgage brokers, investment bankers and let them "play around" with this worthless paper to make it look like an investment opportunity.
The investment boys/girls came up with the CDO idea for marketing these toxic "assets". These CDOs were sold to pentions, mutual funds, etc. and they were off - making huge amounts of money for themselves in the process.
Now, to make sure they didn't feel the sting when things turned bad (and they knew they would). They bought insurance from AIG to insure that they would be paid when things eventually went in the toilet.
Now, most homeowner's have lost most if not all of the equity they had built over years of faithfully paying their monthly mortgage payment. The bankers and investment bunch have collected 10's of millions of dollars in "bonuses", which basically bankrupted many of their companies. Many of their firms have now been rescued by the Federal government at taxpayer's expense and taxpayers have also rescued AIG, who had to pay off on the insurance policies when the CDOs became worthless.
When are government officials going to actually help out homeowners? Never, unless, homeowners demand that this issue be seriously addressed. Will Congress and the President listen? Probably not until their hand if forced. The Federal and State governments are in desperate need of funds. They intend to find it anywhere they can.
Support for the nonsense going on in Washington and in many State Capitals (attention California) has to stop. They cannot continue to spend and ignore the underlying issue if citizens don't fund their folly. Elected officials who don't get the message soon will find themselves outside the club after the next chance voters have to throw the bums out!
A mere fraction of the "stimlus package" devoted to housing could have arrested the housing meltdown and quickly turned the economy around. Now, we've paid off all the cronies and insiders, own automobile companies, insurance companies and things are NOT getting better.
Mr. President and members of Congress, please require all holders of mortgages to immediately do the following:
- Decrease the principal to realistically reflect current market prices;
- Allow homeowners to enter into fixed-rate mortgages, regardless of balance owed, with a monthly payment not to exceed 25% of the family's net income, including property taxes and insurance.
How CDOs are to blame:
http://marketplace.publicradio.org/display/web/2008/10/03/cdo/
Angelo Mozilo
http://www.sec.gov/news/press/2009/2009-129.htm
http://www.nytimes.com/2009/06/05/business/05insider.html
Franklin Raines and Freddie Mac
http://seattletimes.nwsource.com/html/businesstechnology/2004358433_webraines18.html (Raines)
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