Government to Sue the Banks That They Bailed Out – Brilliant!
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While I am not opposed to viewing banks with a critical eye, I do wish to remind folks that there were many, MANY community banks out there that did not become involved with no/lo doc loans and were conservative enough to avoid the troubles caused by the many issues you cite above. Of course, these banks are now being punished by the regulatory environment which has become over burdensome. I have worked in various community banks for 30 years, and although some have caused their own problems through mismanagement, many are barely staying above water these days, so you definitely cannot “follow the money” to us!
First Time using United Wholesale Mortgage. Horrible experience. 7 days to close! HAHAHAH. How about 7 days and still no one looking at the conditions that were sent in. Brutal Service. Cmon people. There are actual real human beings behind the pile of papers that you push. They have children, moving trucks, deadlines. Unreal.
Uh, You guys DO know this Orlando’s landlocked, right? No beaches?
Ok – not about the actual video but the start of the video. You are so wrong about Monterey not being hit in the price tag – Monterey County is promoted to being the hardest hit County when the new/old loan limits come in. We will be dropped from $729,750 to $483,000. Our market has taken a HUGE hit. Yes if you are looking in the Pebble Beach area – price tags are still high but they have dropped significantly!
Hey guys,
Here’s something you should dig in to.
It appears the big box banks were getting kick backs from all of the PMI providers. See the link below.
http://www.nationalmortgagenews.com/dailybriefing/2010_426/banks-6b-reinsurance-kickbacks-1026443-1.html
Is there any doubt who really is/was responsible for the housing crisis now?
Well guys and gals. Looks like here we are again. Looking for yet another wonderful government program to be able to sell loans to folks. As inocent as that is do any of you realize that that is what starts the problems in the first place?
The real underlying problem has been going on for years mow. We have been going broke for 30 or more years. The jobs have been declining in values so the loans had to be fixed to make more folks qualifie. WE supported this mentality all the way and now it seems I am hearing more calling for yet anouther program to fix the un fixable. Good luck. It never works long term so be very careful what you wish for. We just really only got what we asked for a few years ago. This week BOA is just the whipping boy or more likely they got accross this administation with something they didn’t want to hear. Got to blame someone and keep the ofense up you know. Blaw!
Lets see the gov gave your money to the banksters with no conditions on how to use the money only says (help the people) with no written agreement to protect the people.
So of course the banks profit off it & steal homes since their are no rules, the gov then turns around and sues the banks for following no written rules. Well I got it hand it to the “think tank” who creates all this, they had every intention on suing each bankster for billions later on down the road. knowing the people wouldn’t be helped with no written rules, So they could then turn around and sue the banks themselves & save the day. what a con game this has been.. Completely master minded by the powers that be.
If you don’t know your enemy how can you help yourself.
Eau contraire: The prices in Montery County have dipped tremendously!! You have a huge county with many real estate microclimates from Seaside, to Carmel, to Camel Valley to Cachauga. (Where’s Cachauga you say? Try 90 minutes from Highway 1!! You can purchase a home in some of these areas for prices that have not been seen since the mid 90′s!
Hi guys! Just to let you know – there is no beach in Orlando, just Mickey and the gang.
Maybe they should sue the US Government for say…Insanity, Ignorance, Intolerance just to make it interesting.
Minor definition issue Frank. You say mortgage bankers only need to be NMLS registered. Actually, it is Federally chartered mortgage bankers that only need to be simply registered. If your state licensed, Frank and Dodd and the SAFE Act are all back door men to the industry.
The logical extension of all this is over regulation followed by over taxation. Numbers of employees will decline as many simply go….underground
Minor definition issue Frank. You say “mortgage bankers” only need to be “NMLS registered”. Actually, it is Federally chartered mortgage bankers that only need to be simply registered. If your state licensed, Frank and Dodd and the SAFE Act are all back door men to the industry.
The logical extension of all this is over regulation followed by over taxation. Numbers of employees will decline as many simply go….underground
I personally am sick and tired of all the alphabet soup crap that came out of DC to rein in the greedy mortgage brokers who caused the melt-down. “Too big to fail” was a major cause of what happened, but not in the sense you are used to hearing. Barney Frank, Chris Dodd, Franklin Raines, and Angelo Mozillo come immediately to mind. FNMA wasn’t created to buy sub-prime, but they added it to DO/DU. Barney was in charge. Raines was paid $90 mil in bonuses to run FNMA, a henhouse full of foxes. As I recall, he was required to give part of it back, but should have been prosecuted and sent to prison. Sen. Dodd was initiated into the “friends of Angelo” to receive mortgage rates about half of the going rate, but didn’t realize he was receiving preferred treatment. He was either a lying crook or a real dumb-ass. Who knows have many more pols received the same favors? As for Angelo, he took a good product (neg-am arms), and perverted it to the point that even the disceased could qualify and changed the recast rules to insure borrower failure. Yes, I said “good product” because history shows that properly used, it worked well for many borrowers. Golden West aka World Savings offered the neg-am for over 20 years and were not only profitable, but had one of the lowest foreclosure rates in the industry. When the owners saw what others in the industry were doing to their primary product, they knew their days were numbered and sold to the greedy folks at Wachovia who had no clue they were about to step into a big pile of “something”. Wachovia, of course, is history, absorbed into the Wells Fargo machine. After 28 years in the industry I saw alot of good come from the proper use of this product. Good LO’s understood the product and knew how to counsel their clients on how to manage it. Payment-Option, as it became known, also became another villian to blame the crash upon. BTW, I have personally had 3 of these loans, never had any neg-am, and have only experienced one problem: Wachovia (Wells) cheats on their index calculations to inflate their interest rates.
Ken – you are absolutely right. Back in 1982 I took a negative am loan, and it was great. When I needed the write-off taxwise, I paid the negative, and it was brilliant. When FNMA started buying anything and everything, it was doomed to failure.
The best solution now would be the mass refinance of ALL FNMA/Freddie/HUD loans. No costs. No appraisals. Current or not. Under water or not. Talk about a no taxpayer cost solution to our housing crisis. So what if the bondholders would be cashed out with NO losses other than early payoff. BFD. Just do it. The new bonds would pay current rates (around 4.24%) which is way more than other investments.
Now Obama is dancing around limiting the refis to only those who are seriously under water, estimating that to be around 2 million borrowers. Sounds to me like another HAMP.
The original “mass refinance” proposal (back by both republicans and democrats) would have affected 30 million homeowners (ALL morgages back by FNMA and Freddie, whether the owners were under water or not. That makes way more sense to me. Just get it done like Oprah~! YOU get a refi – you get a refi – you get a refi . . .
carefree jackie: agree with your refi plan except for the being current condition. Prior lates, no problem so long as the acct is current as it indicates the owner’s responsibility and motivation to keep the house. No FICO scores. If consumer has revolving lates while keeping up with mortgage payments it should work in their favor. LTV – whatever. End result, lower interest = lower pmts =more $ for consumers to spend or save for the next crisis. Beats the heck out of reducing the payroll tax that is designed to fund a program that most feel is on the way to being broke……. the definition of insanity!
Remember a couple of weeks ago – the feds asked for plans to dump GSE REOs, by turning them into bulk rentals? I just wrote in my proposal.
1. Get rid of HVCC
2. Require appraisers to use non-distressed sales IF THERE ARE ANY (which trust me they don’t do currently)
3. Hire local, experienced Realtors to market the REOs
4. Eliminate the waiting period for home-owners only and open it up to investors. Maintain the 60-day flip rule.
5. Give a 10-day period for all offers to be considered, and make them be “highest and best” right out of the shoot.
I see no reason to create another private/public partnerhip for rental homes. This would only cause more graft and ill will. Plus, the new construction apartment is picking up, so just let markets do their thing.
Thanks Ken for your reply.
Ken & Jackie have it right!
Homes are indeed being rented, sold in “lots” to investor groups or non profits. B of A who strips owners of payments under the pretense of verbal promises of loan modifications, is now asking owners who are near foreclosure, if they would like to stay in their homes and “lease” them back. Gosh, tell owners lies, never deliver, steal their house and make them rent back… isn’t that nice? Where do these “helpful” non profits come from, how did they come into existence and what is their purpose? What some people are imagining as the most absurd conclusion to all this, has already happened. Now… Just imagine… if all those “leased homes” are somehow being traded as “lease backed securities” with some new “deal” with the banks. Does this sound insane, or is it possible?
I’m sorry, the other two parties have been getting even stranger. I rather keep what we have. As far as B of A getting sued. That’s only one bank out of the others mentioned. It could seem like it was planned, but then….?
Ever deal with B of A in a short sale? Ever deal with B of A trying for a loan modification?
I hope the Feds do go after the rating agencies next. But then people will say it’s political or in retaliation for the credit downgrading of the US.
Sam their next.
The problems with lending started long before Fannie and Freddie got involved – private industry provided loans to people that only qualifed by using sub-prime lending – lower scores, no doc/low doc loans – when that wasn’t enough along came Option ARMs… the rest is history! How do you underwrite a first time homebuyer using interest only payments, with no documentation and credit scores in the 500s and no down payment??? Lots of people made lots and lots of money!!
Let’s call on the banks that messed up by responding to short sales within 2 weeks, instead of 5 or 6 MONTHS…maybe they can provide some jobs to some of our jobless in the process!
There is something to be said for using COMMON SENSE…
Ah ha! the worm turns! Brokers represent the cheapest delivery channel. Bodes pretty well for us! Besides we pay those LOs better. Take heed LOs!
Underwriters of the banks have the FINAL say on any loan!!!
That being the rule, who is really to blame???? Blaming won’t solve this, but it would just be nice for the public to stop thinking it is the mortgage loan officer.
Everyone is to blame a bit…everyone let this happen in their own way, maybe not advising the other that with a projection this is an implosion, not that everyone is that smart, but the government backs the banks & should not have allowed this. With all the finest mathamaticians at their disposial, there was no excuse, especially for them. So start there everyone. Most don’t seem to know that Clinton signed to deregulate – that is disturbing. Bush just got caught holding a bag of dynamite.
Banks underwriters didn’t do their jobs adequetely, on the loan packages that were submitted by the mortgage people…But they had deregulated rules to work with. Remember the required conditions by the underwriters in order to get the loan? Who hired these underwriters – the banks!!!
I remember doing my first subprime loan in 2004 & asking if this was normal? My insticints knew more than me…I was told to do it, or the next person would…that this was the way things were done “these days”. I figured “who am I to judge”, I was new to the industry. Leverage can work, as long as you can continue to leverage…but the payday needs to be factored into the equaision, & if that is not, there will be problems.
Well, now we see the ramifications…Deleverage.
The reason they’re suing these banks, is that they (the banks) sold pools of loans to Fannie and Freddie, with fraudulent numbers attached to them as far as how many of the loans in that pool were owner occupied, etc. This isn’t something that a rating company would have known was happening, and it wasn’t the crap B paper material that caused all the problems in the first place. It’s pure fraud, intentional and sneaky, and that’s reason to sue. The damage done by the huge greedy corporations, was on such a gigantic scale, that I’m pretty sure that to blame mortgage brokers is just silly. (Those of you who are still buying that load of crap… open your eyes. A small percentage of unscrupulous mortgage brokers could not have possibly done this much damage.)
Who’s payroll paid the rating agencies?
Agree. Anything that comes out of Washington DC is political posturing and this is no different.
Minor definition issue Frank. You say “mortgage bankers” only need to be “NMLS registered”. Actually, it is Federally chartered mortgage bankers that only need to be simply registered. If your state licensed, Frank and Dodd and the SAFE Act are all back door men to the industry.
The logical extension of all this is over regulation followed by over taxation. Numbers of employees will decline as many simply go….underground.
The icons/thumbnails you use when sharing to Facebook got to go. It makes it look like spam or a phishing scam. We need TBWS thumbnails.
You guys should use your massive database and distribute a cool TBWS bumper sticker regarding “Vote Out Incumbents”. Some Senators and all House members are up for re-election as is the President next November.
First, take away all of Angelo Mozillo’s $667,000,000 ill gotten gains, not just a fine of $67,000,000. Then send his ass to jail. I agree S & P, Moodys, Fitch, etc. were accomplices and they should have their “skin in the game” in this lawsuit as well.
By the way guys, Orlando doesn’t have a beach. It’s in the middle of the state. Enjoy your orange juice!
here we go again, I can’t post!
http://www.youtube.com/watch?v=-McpNtHet3w&list=PLBA1317D5C238762E&index=16&feature=plpp
MUST SEE!
NOT FOR THE TIMID!
http://www.youtube.com/watch?v=-McpNtHet3w&list=PLBA1317D5C238762E&index=16&feature=plpp
You said at the top of your piece that the Monterey area hadn’t been hit by the housing bust…yes it is still quite expensive to live here but this area has been hit by 25-40% losses as well. Yes, a correction was needed as the intrinsic value of many properties was overtaken by perceived value but in the end many homeowners have been hit hard amd deep in the pockets. And now to make things worse with the new/old loan limits adjustment believe it or not our high balance confirming limit is 483k! Not 625k like most of our neighboring areas because we are in Monterey county which includes salinas, seaside, marina, and other lower income/housing valued areas. And the government won’t make an adjustment to this obvious oversight because then it would be redlining!…always something.
Hope you enjoy your visit to our beautiful area:)
Actually, any money that the banksters need to pay should go back to the real victims of the lending mess, their victims who either had their homes foreclosed upon or who are currently in deep do do because of the don’t ask, don’t tell loans. People relied upon the banks and other lenders as experts with fiduciary responsibility towards them. Wrong! As a realtor I have fiduciary responsibility towards my clients to act in their best interest, even if It is not in my best interest (i.e. make no money). This did not happen during the boom times when LOs manufactured loan applications to “work” in the system.
Not to parse Frank’s words too much, but definition issue. He refers to mortgage bankers as being “NMLS registered” as their only requirement. Only LOs with Federally chartered banks are in the “registered” status. Mtge Banking LOs have to go through the licensing testing crap just like brokers.
Having said that, what will happen in reality is what happens every time government over-regulates or over-taxes….more and more will simply go underground.
Of course this was all planned! Our government gave our money to private industry so that private industry could make the money off of it the government needed to defray some of the loses. Unbelievable.
Every single swinging **** and ##### needs to be voted out each and every election until they get the idea that they work for US not the banks. The banks will do business here no matter what so it’s not necessary to kiss their asses. Anyone who says they’ll take their business elsewhere, they’ll cut jobs is whipped by a belief that we need the major banks. Folks, we don’t. Not in the way we think we do. They cut jobs all the time regardless of how much we are borrowing. People bought a financed homes well before the major lenders of today were in existence. We should likely go back to the local lender who is mostly backed by wealthy private citizens who want to invest in mortgages and share the interest. You didn’t have all this nonsense when that was how things were done. I for one am ready to relive that good time of mortgage lending.
We have people losing their homes and a HAMP program I think was an Obama smoke and mirrors game to divert people to thinking someone was really going to help. All the while, this mess was really taking place and the banks were making bucks and the CEOs were making ludicrous bonuses.
It angers me. We have politicians playing with our lives for the benefits they receive, plus the totally unearned lifetime pensions they get for working a minimum of 4 years and anyone thinks they have out best interests at heart? Time to change the tide.
The question is, are Americans ready to put their foot down or continue to whine and complain like disgruntled employees? That’s what we’re treated like and it has to stop if we’re to recover.
..Ever notice how Brian looks like Pee-Wee Herman??
I Love PeeWee!!!
The rating agencies are guilty of not fully vetting the information they were given by the likes of Goldman Sachs. To be named in the lawsuit is a stretch laws don’t govern common sense, we do.
FHFA Director James Lockhart is known for bringing the hammer down on companies that used their employee’s pension plan money irresponsibly. He exposed the top 50 worst managed pension plans. Lockhart is a Yale and Harvard Graduate.
Whilst I enjoy seeing collusion exposed, I suspect that Lockhart is a thorn in the side of those that created this mess for gain, namely Goldman Sachs (GS) and their cohorts. Perhaps Director Lockhart is fed up with GS and is bringing the hammer down? Perhaps this is all fodder for the media to show us how well the regulators are doing? Regardless of why, its a good thing. If you want to know who’s behind the mess and who tried to stop it, watch the Frontline special that PBS made called The Warning.
Lawsuits don’t create jobs, wise and innovative leaders do. VOTE for credible leaders like Huntsman or Romney who know how to create capital, eliminate waste and turn entities right side up.
“Things turn out best for the people who make the best of the way things turn out.” John Wooden
What about suing themselves for the expansion and cram down of the CRA?
CRA in and of itself was not THE problem. It became part of the problem as Greenspan continued to lower rates after 9/11 to help pull the economy out of recession. As rates continued to fall and most began refi’ing their homes and a number of them using their homes as ATM’s financial institutions couldn’t keep up with their CRA related commitments. Couple that with Fannie and Freddie, trying to keep up with the Wall Street banks securitizing Mortgage Backs, lowering their risk standards to make a buck we have a perfect storm. If look back on any one thing that was the impetus to fostering the environment for this mess it was a 1999 when the republican led congress push the repeal of Glass Steagall and was replaced by the watered down Graham Leach Bliley Act of which Bill Clinton signed. Repealing Glass Steagall allowed Wall Street Banks to become banks and Banks to become Wall Street Banks. They let the fox in the chicken coupe and we all know how much foxes LOVE CHICKEN!
When this broke last week I was thinking the same thing. In the end, as others have said, follow the $$.
They should be suing Congress. They are the ones that pushed Fannie and Freddie to lower their standards. The mortgage industry, for the most part, only originates what it can sell. It did a good job of selling the products Fannie and Freddie introduced. The rating agencies are much more culpable than the mortgage industry.
Rusty McInerney
I remember in the late 90′s being shocked that I could do an interest only loan, then a limited doc, then a low doc, then a no doc. I assumed that someone a whole lot smarter than me had figured out that that these loans were okay. So I did a lot of them! Whoops! Apparently, the government agencies that sanctioned this weren’t all that smart after all.
My thoughts exactly, Rusty! Since not everyone in Congress is an economic and housing expert, they just pass legislation that the lobbyists and underlings recommend and write, thinking it’s all a grand idea. You don’t own a home, a home owns you. If a borrower doesn’t have savings to help manage the repairs in life that will surely come (home, auto, medical, or job loss), how is it surprising that mortgage defaults are on the rise?
If it looks like a liberal, acts like a liberal, controls like a liberal, bails out like a liberal, uses banks as political soapboxes like a liberal, send jobs to china like a liberal, allows illegal’s to steal entire industries worth of jobs from US citizens like a liberal, turns private proPerty into publicly owned (MERS) like a liberal, then it is BAD for US CITIZENS!
PS;
Liberal=oligarchy, socialists, communists, jihad etc, etc, etc…
I think most of what you have enumerated was done under the GW Bush administration.
It started under the Clinton administration with the deregulation of banks. I sold real estate then, and it was damn near impossible to get iffy borrowers to the table. Clinton signed a banking bill and wala! suddenly everyone was golden. It was gaining momentum when Bill was a lame duck and then the proverbial hit the fan when Bush went in office.
Once that snowball got started, no president of any party was going to stop it. Thanks Bill!
We didn’t obtain over 15 mill in illegals from 2000 to 2008. That was taking place for awhile, and warning to Clinton from western states were ignored. His admin didn’t think it was a big concern.
Yes, the housing crisis was Was orchestrated under the Bush Admin….BY LIBRALS
The Bush Amdin started to try and stop the madness at Fannie/Freddie as early as 2001.
It was Barny Frank that told the Republican’s (and Chaney) to sit down and shut up back in 2004 when they tried to put the brakes on the bus headed over the cliff.
Watch it on YouTube:
Timeline shows Bush, McCain warning Dems of financial and housing crisis; meltdown
Or here:
How The Democrats Caused The Financial Crisis: Starring Bill Clinton’s HUD Secretary Andrew Cuomo
So the guy that told everyone that everything was OK back in 2004 is co-author of the Bill that pervasively invades the entire housing industry.
To think that the government is Stupidly fumbling forward rather than Calculating it advances is folly of the highest order.
Thank goodness that there were no Republicans in Congress at the time of the bailout that voted……oh wait! Start thinking about what you are saying and really look past your party line to see that all of Congress and the House are responsible. In addition, there are people in our industry responsible for doing bad loans and there are people responsible for lying on their applications to obtain a home. Spread the responsibility to everyone because not one group is to blame.
I have no party lines. Spreading the blame would be good but for one thing: banks held the keys to the money and loaned it to anyone who applied anyway. There has to be a stop gap somewhere in the works, and the keeper of the cash appears to be the best person to be that stop gap.
The banks made loans to people it obviously knew weren’t fully capable of repayment over time. How do I know that? Because they allowed no doc loans. No verification of anything. Who does that and expects a positive outcome?
Actually, my experience was that the LO filled out the application so that it would underwrite for whatever property someone wanted to buy. The buyers were the victims of loose lending and loan officers who wanted to “help.”
Exactly. The average person gets to see ‘their loan application’ about 5 seconds at settlement and then are told to sign it. If the average person were to actually see what was on it, I think they would be confused at a minimum.
The only help was for a mortgage commission for the LO.
Every single borrower of mine signs the loan application that I type and print based on the information they provided to me. I make corrections if there is a mistake (typo by me or them not giving me correct dates). There is a certification above the borrower’s signature in all that micetype on the 1003 that says the information provided is correct. Every person (average or not) knows exactly what is on “their loan application” that I submit to the lender. They double check the lender input data on the 1003 at closing to make sure all the data is still right. To lump me into an “every LO” box that does not fit me is to lump yourself in an “every realtor” box that doesn’t fit you. I’m sure you review each paragraph of the real estate contract to make sure your buyers and sellers know what each paragraph really means. It’s the real estate purchase contract that requires more explanation than the 1003. 1003 is as straightforward as can be – loan terms, name, SSN, DOB, kids, years in school, address history, job history, position title, income, assets, debts, page 4′s 13 questions, summary from the fee worksheet that I already detailed, and the HMDA information (gender, race, ethnicity). No more complicated than that, Helen. As for the comment of “the only help was for the mortgage commission for the LO”, you should think again and let your other fingers continue to point at yourself, the other realtor, the lender, the seller, the neighborhood, the surrounding communities, the appraiser, the builder, the developer, the title company, the homeowners agent, the closing attorney, the home improvement stores, the Wall Street speculators, and the Federal Government. The NAR touts that how many jobs are created by the sale of just one home? No doc loans were a very bad idea, no matter how well intentioned someone thinks they possibly could have been. Until EVERY facet of the housing industry is up front with disclosure, true consumer understanding, and willing to do the complicated and hard things it takes to do justice to a borrower, those of us who do the right thing need to continue to point out the errors that continue to be spread by others. Please check your facts, Helen. Google “1003″ and actually read it – you’ll be surprised how easy it is to understand. As for the purchase and sale agreement, disclaimers, disclosures, and addenda, make a comparision and post again.
Sorry, I attended hundreds of settlements during the Boom and I can’t count the number of times a buyer would look at the loan ap and ask ‘Is that right?’ and the settlement officer told them to just sign/initial here-there.
The LO’s excuse if something happened? ‘They signed there.’. The only answer to that is to sue based on not having a 72 hour time period to review the docs prior to settlement.
I don’t need to google anything. I have 22 years in this industry and I KNOW WHAT GOES ON FROM BEING AT THE TABLE.
I advised many many of my clients during the boom to not take loan products that I knew they wouldn’t be able to afford after the introductory teaser rate. They opted to listen to LO’s who, in one instance, told my client’s not to worry about me – we were in a new world order of lending, finance, and prosperity. Yep, no lie.
Accountability would have been a spread sheet showing that the payment would look like if the rate were to increase from 1 to 5%. THAT would have been an eye opener. Plus a disclosure of what the average interest rate had been for the prior 10 years. I assure you that would have put things in a different light.
You can spin it all you want, but the banks are the keepers of the cash and, as such, they are primarily responsible for that fix we are in right now. Loans are sales, plain and simple, someone selling money. Good salesmen play on the emotions of the potential buyer, and that is what will catapult the mediocre salesman to the top of the heep once they understand the emotions behind any particular sale.
I am in the trenches with people daily. I have seen at hundreds on hundreds of settlements. You can claim what you want, I know better.
As for everyone taking the blame? I am in two of the most overregulated industries in the housing arena, that being a Realtor and a Certified Residential Appraiser.
mmt110 – LO’s didn’t even have to be licenses, much less anything else in my State, during the Boom. It all goes back to lending with loosey goosey procedures, lack of training, lack of licensure, and a devil may care attitude towards billions of dollars that these keepers of the cash failed to safeguard.
Turns out just voting out the encumbent doesn’t work. Uh remember the last election and the freshman teaparty class that has further broken the bought congress. Sorry wish it were that easy. Like most things, it is all about the details.
Wells Fargo along with SunTrust were actually NOT included in this lawsuit.
I wonder why.
GOOD QUESTION……maybe biggest goes first ?
1995 the Feds ordered the banks to loosen up the guidelines. It started to unravel from then until it got out of control and we ended up in the mess we got in “08. The American Dream remember.
Now Frank has reversed his comments hoping people don’t remember what He, Clinton and Dodd originally did and opened up the flood gates and threw the keys away.
Thank you.
Let us see, who are the winners here? Follow the money. The banks paid their lawyers to put together the loan packages,the wall streeters paid their lawyers to create derivatives, the government paid the lawyers to design a bailout, the banks paid lawyers to file bankrupcy against the defauters, the defaulters paid the lawyers to sue the banks,the banks paid the lawyers to defend the suits, the government paid the lawyers to sue the government !!! 30 % of congressmen are lawyers. Oh- now I get it !!
Well said. I always start with: “Follow the Money” in an scenario like this. I was a mortgage broker who had a small sister company that did wholesale subrime lending. We would have all the mega brokerage companies fly in 20 underwirters once a month to review loan files with these stated, neg. am loans etc. Are you telling me Fannie and Freddie were too stupid to figure this out?! Congress forced Fannie and Freddie to buy these loans.
Check it out: 100% of all DNC elected party members are Attorneys. Any wonder why there is so much litigation and law suits? They have to have something to do.
Which beach in Orlando are you going to be visiting? I think you just called my good buddy, Ken McDaniel (a mortgage broker,) a cockroach (I love it). He is you know. Keep up the great commentary. You guys are the best!
No beach in Orlando. Its in the middle of the state.
well im still going!
With that being said…their is enough guilt with all parties involved and litigation at this time is just the pot calling the kettle black.
This administration is anti-business from the top and until He/they get control of the undustries they will not stop and that is not free enterprise.
That’s a bunch of BS. The general feeling not to long ago was that “how can these banks and Wall Street get away with what they have done and are doing”. And that they need to pay for their sins and should be more regulated for our protection. Now people like you are screaming that the government is “over-regulating”. Boy you have a short memory!
Too funny hey shut up it sells ads on here! Someone has to make money from this bad market , let it be tbws! Oh well there is not much to write about in real estate other then get ready , I mean get ready for the crash of crashes , it will so bad in the streets . Riots , looting, people killing just to eat. We have nothing good going for us in the USA right now so get ready this fall it is here. I remember that scholar doitright saying this and hate to say he is 100% right. He said the bond would hit below 2.25 it did, that jobs would get worse, they did , and that housing will go down down down and it is and will go another 26% in value or more. Great time to rent , tell your realtor to stick it and go rent a place . ALso save up and buy a gun for protection. Wall Street will have the biggest drop it ever had this fall . Bail out now and put your money in gold for let it bottom then go back in slowly . WE will have one more minny crash then the big one will be here ! Have a nice day
You’re assuming that Nick felt that Wall Street, etc., needed to be regulated and now he’s like a turncoat. Personally, I think that our current administration is against free enterprise overall. He acts like a socialist. I’m sorry. The real way to regulate any industry is to have alternatives. We as Americans need to find lending and investment alternatives to Wall Street and the Big Banks. Once we do that? They will have to reinvent themselves or simply work with what portion of the market they retain.
I agree with Nick. The present administration will not be happy until they break everything down so it can be socialized which is another word for regulated.
Republican Agenda
1. Deregulate 2. Privatize 3. Outsource
I think thats what happened here. Without those products and the zeal in which Wall St wanted that paper helped to create the 125% LTV stated, stated offeredd by all the big banks and then made sure there ws no QC through automated UW, review and their “number hitters” the AMC’s. Hell, if you can buy numbers from the rating agencies you don’t own think about the numbers you an buy from a company you DO own (or partially owned).
“Too Big Too Fail”
“Inside Job”
The history is there. AS everyone has said, follow the money !
CLINTON deregulated banks, my friend. CRA cram down for all.
The rating agencies are not named because they only rated the information they were given. They’re guilty of not fully vetting the information they were given by the likes of Goldman Sachs.
FHFA Director James Lockhart is known for bringing the hammer down on companies that used their employee’s pension plan money irresponsibly. He exposed the top 50 worst managed pension plans. Lockhart is a Yale and Harvard Graduate.
Whilst I enjoy seeing collusion exposed, I suspect that Lockhart is a thorn in the side of those that created this mess for gain namely Goldman Sachs (GS). Perhaps Director Lockhart is fed up with GS and is bringing the hammer down? Perhaps this is all fodder for the media to show us how well the regulators are doing? Regardless of why its a good thing. But lawsuits don’t create jobs, wise and innovative leaders do VOTE for credible leaders like Huntsman or Romney who know how to create capital, eliminate waste and turn entities right side up. If you want to know who’s behind the mess and who tried to stop it, watch the Frontline special that PBS made called The Warning.
You need to get your facts straight. Bank of American bought Countrywide absolutely on their own without any encouragement from the government. They were “forced” to complete the purchase of Merrill after they did due dillegence and found more problems than they had anticipated. Ken Lewis was told that the government might have to replace him and the rest of the board if they did not complete the transaction.
The banks are no angels, but you don’t need to look too hard to find their problems, so don’t manufacture issues.
Please,please,please,please, you guys have to start looking into the FED. It seems very strange to me that the only bank in the country has never been under an Audit! Only Ron Paul has the guts to bring this up,but it appears his bill was defeated, The crooks are running the country, money is the root of all evil. Tell everyone to watch the award winning doc.”Inside Job”. This country is in a real mess, and no one wants to get to the real problem,HELP!
Well said. The purchase of Countrywide by BOA was begun in 2007 and was completed by 2008 well before the bank bailouts. Ken Lewis was thrilled to get his hands on CW and then Merrill (until he did due diligence after the fact and found that Merrill was in the ditch). At least that is what the article in Time magazine glorifying Lewis said. I am not a fan of banks but rather than the banks being sued, the CEO (Mozillo, Lewis, and the rest of the usual suspects should be prosecuted and have to pay back the money they got in the largest bank/taxpayer heist this country has ever sufered.