Shocking Truth Behind BofA’s Trillion Dollar Derivatives Move!
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Dig deeper gentlemen. Long ago we connected the dots between former-present Nature Conservancy/U.S. Treasury CEO’s/Eco-criminals/Al Gore/Goldman Sachs/ Federal Reserve and a whole lot more. They have DOI Secretary Salazar breathlessly running around the U.S. trying to tie up ALL the land (EPA’s working in concert trying to tie up all the water) – including tribal…for what? To collateralize loans from China? It’s a big rotten pock that about to pop! Thanks to individuals like yourselves. Thank you.
Being a Broker, when ever I have talked to the OMBA, they have alwsya made me feel like scum. IF the entire MBA would change their mind set and see that we are both trying to survive and we both want fair lending policies, then i think there is a possibility that we can discuss merging. What I dont want to happen is that the Brokers voice is muted.
This is why most countries only last 200 years. Approximately 200 years is how long it takes organized crime to infiltrate and control a government. President Kennedy and his brother fought organized crime and were killed. Their deaths made it obvious to me that organized crime controls America. Every American needs to report drug dealers and criminal activities and not look the other way. Sheeple are why these criminals can get away with milking Americans into slavery and destroying America.
3 Words for You. “Occupy Wall Street”
All politics are a stage. I keep wondering why the government keeps trying to bail out the homeowners. I’m slow, I know. It’s to help the banks, not the homeowners. Nothing has worked since Clinton and Frank got together and expanded from a chicken in every pot to everyone in a house. Why don’t they just let the market take its course? While some are in default because of circumstances beyond their control (job losses, gargantuan medical bills which doesn’t take much to have whether or not you have insurance), most just bought more than they could afford with the help of lenders like Countrywide… who is now…BofA. Every one I have heard of that has tried to take advantage of these government bailouts on short sales and foreclosures are bearing scars from the experience. None have helped. Now the taxpayers are going to become landlords? My gosh, I’m struggling to pay my bills, work more than one job. Can’t pay everyone else’s, too.
You guys are hilarious, what’s surprising that people aground have no expression while watching you. Are people that numb?
I was an insider who lost everything because i refused to look the other way when criminals were sucking billions out of the American economy. We are so doomed.
Crooks, all of ‘em. Since they are willing to jeopardize millions of our tax dollars, consider the solution presented below. I know that Bernanke and the “money managers” will hate the idea, but it is food for thought:
The Gov’t says “lets just allow those who are current with their payments to lower their interest rates to ‘market’ “. In other words, borrowers must not have any late payments and their homes must be worth less than the current mortgage balance on their owner-occupied property. If a borrwer supposedly falls within these parameters, then the lenders would be required (or was that encouraged?) to rewrite the Note to current market rate.
The fault with this is that most borrowers who met this criteria already attempted to accomplish this through the FNMA DU Refi-Plus and/or the FHLMC equivalent. These rewrites were supposed to be done if the property value had dropped to 125% of the principal balance, but most borrwers were found to “not qualify” for some reason or other. These refi’s were already not cheap, and your reporter mentioned that the FSE’s are considering raising their fees even more.
So, the panacea of this proposal is that upside homeowners would now be happily upside down with market-rate interest on their Notes? Who is kidding whom? Why in the world would that take any pressure off of homeowners??? They STILL could not sell their homes at a loss without ruining their credit for the next several years. (Short sales are almost as bad as bankruptcy on credit reports.) The banks do not want to reduce principal balances because they would have to take huge write-offs. The “haves” would object to this as another bank-bailout, but the real winner is the average joe-consumer (and the entire economy) who has the huge weight lifted off their shoulders, not to mention Wall Street where stocks would rebound, Main Street where businesses would flourish, and DC, where tax collections would surge on income and business taxes; oh, and don’t forget State coffers that would be replenished by sales tax increases.
One way to mitigate “losses to banks” and “costs to taxpayers” is to include a profit-sharing provision in the rewrite of the Notes. Say the average consumer, who bought their house for $400,000 five-seven years ago (the prices will vary by region, as well as average principal balances), put 20% down, so they had mortgage of $320,000. Today the principal balance would be about $300-310K. However, the value of that $400k house would be closer to $280,000 (using data from my neighborhood.) The write-down could be structered/looked at two different ways: 1)write down the principal to 80% of the current market value, or 2) write down the principal to 100% of market value. Both have their pluses and minuses. Using the 80% method, the bank would write down about $76,000 from the existing principal. Using the 100% method, the writedown would be closer to $20-30K. The Modified Note would include language that upon the sale of property, the Beneficiary would be entitled to 100% of write-down amount, plus 10, 20, 30% of net gain-on-sale. Work out the details, but they would HAVE to be consistent for all borrowers across the country. Yes, this would appear to be an expensive proposition, but if it triggers a rebound in employment and resurgence of real estate, construction and new businesses, it would be well worth it.
There are more reasons that principal reduction is a better idea. A principal write-down will provide actual lowering of payments for consumers. This would release more cash for them to paydown the huge credit card debt they are now servicing. The extra cash available would also be available for a spurt in consumer spending, which equates increased employment opportunities at all levels. The “government” (you and me and everyone else) would “pay” for this mortgage reduction of course, however I feel the tradeoff will be more immediate and REAL than any of the job proposals now being bandied about.
Principal reduction would also have the beneficial effect of allowing homeowners to sell their properties, even at a loss, without ruining their credit. This would have a TREMENDOUS immediate impact on the real estate markets AND job growth. How so? By not having the threat of ruined credit, homeowners would be willing to sell their properties, even if they didn’t have any net gain (though many would) at the end of the sale. This is a double-whammy: it allows the seller to go out and buy another, perhaps cheaper home, AND allows the buyer to obtain a home at true market value without having to wait months for a bank to decide whether to allow a short-sale! It also removes thousands of homes from that dreaded shadow inventory that banks, realtors, and the government dreads.
On top of the real estate side of this equation, the boost in JOBS should not be overlooked. This would allow homeowners the freedom to search for jobs elsewhere in there State or another State…recovery, recovery, recovery.
Hey Frank and Brian,
Do you know about a bill being introduced in the Senate “That passed” would give visas to foreigners for spending 500,000 on a house here in the United States?! I think it would be worth doing a show on… or at least a mention. Can you imagine how the Housing Market, REALTORS and Loan officers can benefit?!
Frank you are such a cutie… Bryant it is nice to see you have improved the chipmunk cheeks – lookin good!
Bernanke supposedly studied the Great Depression, if that is so, he should also know that he is making the inevitable Greater Depression even worse with his quantitative easing/money printing that will inevitably cause hyperinflation, off the historical charts, I would imagine.
He should be tried for TREASON along with the others responsible for this mess, including Clinton who signed to deregulate (many don’t want to believe this, but why do they think so much $ was floating around in HIS economy – duh)!
This would only be necessary if they all don’t get cement boots!!!
In the mood for a Revolution anyone?!
Here is the reason for the the transfer to the FDIC insurance
http://www.youtube.com/watch?v=IKwB1BaFu9Q
Welcome to “Brave New World”…We are witnessing a morphing of the attitude of “Oh..I got caught with my hands in the cookie jar and I am oh so sorry” to “So what if you caught me…what are you going to do about it..! This will trigger an incredible tide of revulsion on the part of us ordinary citizens and I can only guess where it will take us….
does anyone know How to stop this corruption?
we all know it’s bad
yes, dump Obama
Speaking of bail outs. The so called “Jobs bill” that Obama presented to Congress, is nothing more than a bail out to the Police and the Teacher’s Unions, who refuse to budge an inch on their payroll contracts, in spite of the fact they there isn’t enough money to keep them all in jobs…so the Unions would rather see many lose their jobs, rather than give on the contracts with those having senority.
Bingo Lori,
I do not know you but I think we would make great friends… You are right!
Al
I’m glad you guys provide the tough questions that need to be asked. However, when is someone going to pointedly ask these officials the questions on these matters? Where’s the FBI? Where’s 20/20? Where’s CNN? ( the Communist News Network) Where’s Geraldo Rivera? I could get all in a lather over the travesty that is the government, and failed policies let alone enforcement of any laws. If he (they) broke the law they should stand accountable. As a professional Realtor, it’s my duty to avoid impropriety for the protection of myself, my client and my industry. If I take the ethical high road there’s never going to be a problem. I may not have the stuff others may have by pushing the envelope but I’ll sleep better. Feinstein and Boxer are going to get another shot at sending me their form letter responses. “The revolution will not be televised” – Gil Scott Herron
and thats what I have said all along…Quit talking amongst yourselves…start screaming from the roof tops…start yelling at your reps/senators..this is nothing here ..it wont accomplish diddly squat..its useless to chatter amongst yourselves…its got to get to someone that counts…that is possibly so not courrupt themselves that might actually do something good about the whole mess….
When do you start?….the rest is just daily drivel…….until that happens
Kerry,
That’s why my husband and I joined the Tea Party Patriots movement last October here in CA. 25,000,000 voices will be heard whether you hear about it on the news or not.
Mary
I agree with JJacob above .
But really I love the room guys . Farrah Fawcett’s poster still rocks . I still stop and look at it 30 years later .
Until we group together ,bound to the cause ,all we can do is bitch and watch them run us into the ground. It will take a larger uprising as we have seen in other countries, that finally we have had enough and put the foot where it belongs, up the Fed Reserve’ s #^*(%^(&^&(&*&
_)(*&*&^%$#@*** and then we may make a dent or a hole. Otherwise we are dying a slow death.
and what surprises me that all of you overlook the fact the Paulson, was the great “Dubyas” fair haired boy running the treasury at the time and was in on the whole deal and you dont mention a word about that…and that Paulson worked for the great Goldman S. bank. Can we talk about a
real fox eatin his way to happiness in the henhouse here?..It never seemed to bother anyone when he was there behind it all, engineering these deals along w/the fed. Minor detail I know, and I hate it when they get in the way like that.
Could you please get a response from Obama about this? It really would be amazing to see a real, legitimate explanation of how in the hell this type of stuff is happening to the American public. Seriously, I think you should try to get him on the phone. Never say never…
My loan was sold to Green Tree Servicing, LLC as well and have never been late. Can’t really find a reason for this-any answers Frank and Brian. So Mad, totally hate BofA anyway but this move does not make much sense.
Great video! I wish I could say I am shocked about this, but nothing the Fed does shocks me anymore!
Nothing amazes me anymore.
All of these guys need to be in a cell in prison right next to Benie Madoff, because what I am seeing here, is worse than what Madoff did, because they did it without any oversight. With Madoff you had one agency overseeing him, this is overseen by the Congresss, the Senate and the White House.
None of these banks should have been bailed out…..not one of them. The whole system would have reset, or have been close to resetting at this point. This whole process is like pulling off a festered bandaid s l o w l y.
The lions share of the blame goes squarely back to government intervention in the housing market primarily from pressure asserted by Frank, and Dodd,etc. They pressured Fannie and Freddie to guarantee poorer quality loans so that more people could own the “American dream”. They in tern put pressure on the banks to write poorer quality loans. The feeding frenzy got amped up once the wall street investment houses figured out how to sell those poor quality loans in bundles to investors. The credit default swap was the magic wand that created the illusion that the investor couldn’t lose because they would either make a good return on the bundle, or the insurance would have to pay for the losses. Trillions of dollars went into those programs because they were even selling them to people who didn’t own the bundles. In other words, anyone could place a bet that a particular bundle would fail! The house of cards only started to fall when there were no longer more investor dollars available to feed the frenzy. The blame rests squarely upon our politicians meddling in the free market for the sake of helping those who were otherwise not a good risk to lend to. When Wall saw the opportunities to make a killing, they did…..and eventually the combination killed our economy. It won’t fully recover until we the people force the politicians to BUTT out and quit wasting our hard earned dollars for us.
hey guys who monitors my comments? if you cant handle them by posting them… Then you wont be deserving of them soon.
Promise?
P.S. You should be upset with your 5th grade English teacher. Not the person(s) who monitor your incoherent comments.
Vic, Looks like your upset, not me, I’m just fine and dandy with my 5th grade teacher Mr. Lenard was his name.. Yep!! that’s right. You must feel real good about learning how to read and write, Good for you Vic.
They go direct. We don’t monitor. the only way it wouldn’t go through is if there were something that could be construed as naughty. If it didn’t go through, then reword it and try again I guess. Have a great day!
Yea, I tried that and it said you have already posted that, Also I posted no naughty words, I guess the monitor just thinks it goes against the grain of monitors opinion..
EVERYTHING is rigged; time for the whole thing to be blown up.
Ron Paul 2012
I second that motion…Ron Paul 2012! It’s this countries only hope!
I have always been suspect of the Merrill / B of A deal that Ken Lewis had to eat during the credit crisis. You could see on his face he wanted out of the merger, big time. However, John Thain was pretty happy, he needed to renovate his bathroom….
Guys you nailed it today. It is about time someone pulls the covers back on these BIG banks and FEDS to make it a little uncomfortable. They are raping us and our children of a FREE CAPITAL MARKET. China did this, how did that work out? This is ridulous that we taxpayers are now on the hook for these BS loans. Also, how is our economy ever going to stabilize with smucks like Bernanke in office. No one wants to discuss it, but IT IS only a matter of time before the “amero” is accepted. If you haven’t heard of it GOOGLE IT. It is one currency that will be used for ALL of North America…get ready for the roller coaster, it ain’t over yet!
Right on Jason!! Its time to take this country back & refuse being sold out any longer by these so called smart leaders selling us out. which wont be for the weak at heart, but only for those with a good heart for the people who have the guts to stand for the people. Realtors swear under oath on ethics to do good for the people, and when this is followed, the big corruption want to know why?
A little story to those listening, I as a Realtor had a dispute with the equator system managers yesterday whom think “their God” who is bank of america whom their in bed with who have been running their system in the back ground with leads, I politely told them that Anonymous has been watching their system as well as bank of Americas system and it would be smart to quit with the crowniesm played out that is not benefiting the american home owners but hurting them, Their reply to my concern was well if you make a commission why should you care ? The Equator System is run on the same mentality as the corruption & should all be exposed sooner or later, their response to me is are you threatening us? my response is no! but i am stating facts.
Jen Quinn / Realtor
I’m not much for conspiracy theories, but could there be a quid pro quo in play here? Buffett invests $5B in B of A and immediately starts to pimp Obama’s tax hikes..now are we witnessing the administration blatantly protecting Buffett’s investment?? Is this how they define “transparency”??
Pay attention to the facts in play….
I am not a fan of the “Occupy Wallstreet” actions but back office deals such as this one between big government and big business makes one appreciate the protesters position a little more. Sad thing is how much BIG government pressures BIG business into BIG mistakes.
Realtors Occupy Wall Street
I’m a big fan, Because these people know one thing they have been sold out, they watched these banks illegally foreclose on their parents and grandparents
and thrown into the streets… I as a Realtor testify to this, these people are being attacked by their own leadership allowing these banksters to steal securities, its time to take it back!! All you Realtors who have the guts to tell it the way it is, speak up & help these people. & don’t be fooled by the bought out media whom will say different, Get the facts!
Jenniffer Quinn Realtor
It’s the other way around. Big Business pressures/bribes, Big Government into passing policies or laws that favor their interests and when they go belly up, Big Government has to bail out these industries because their “Too big to fail.” The country is being “Gang Raped” by this continued incestuous relationship between the two!
isn’t funny i’m taking my CE classes about ethics and it should be the government taking this class.
Exactly why a civil war from those you would never think of, is on its way.
I don’t know about a civil war, as much as a war on money, taxes, and government criminals!
Isnt it amazing how things happen in election years?
I just came accross this article below:
Obama flush with cash from finance, banking sector
By Dan Eggen and T.W. Farnam
Washington Post
WASHINGTON — Despite frosty relations with the titans of Wall Street, President Obama has still managed to raise far more money this year from the financial and banking sector than Mitt Romney or any other Republican presidential candidate, according to new fundraising data.
Most transparent administration evah!
Looks like everyone is now Knowing their enemy, who I must say has played a good game of devils advocate with the people. Be prepared congress has a bill in front of it to solve the housing crises.. Americans you have been sold!
“BUY A HOUSE GET A VISA”
credit card or citizenship? just asking
” BUY A HOUSE GET A VISA” To allow home ownership to all foreigners in all countries to receive a free visa, the idea is to get a new class of tax payers.. while selling out the middle class and the true american
Yep – I’ve heard the same thing.
How are foreigners with money OK with this administration when we all know how they feel about US citizen “fat cats” with money. Shameful.
America was and still is made of Foreigners. This is a great plan. America was great because Foreigners would come here with money but now a days we have Foreigners coming here without money and leeching off of the Govt. This is a step back in the right direction.
When you say “true Americans” are you referring to the American Indians? Because everyone else is a Foreigner.
Why do you feel like your want to twist this into discrimination and lose the focus point? lets not go their Vic, True American Tax payer.
That’s funny. Isn’t buying a home similar to a credit card?
Are we allowed to say ‘treason’ now?
Mortgage Brokers and Bankers, fulfilling the mortgage products created by banks to meet the government imposed “housing for all” regulations, are demonized and regulated out of business. So here is a start on known laws that don’t apply to all:
1. Illegal transfer of funds to FDIC protection not prosecuted.
2. Illegal entry and participation in the benefits of our country not prosecuted.
3. Illegal voter intimidation not prosecuted.
Feel free to add on to the list. Only in America.
The only political candidate I hear talking about the audacity of these guys is Ron Paul. I also saw videos of him in the late 90s and early ots predicting this whole financial meltdown. Is anbody else in the public eye screaming about this stuff other than the OWS people who probably can’t spell?
CRAZY! Yesterday I got notice that my BOA loan was being sold to Greentree. Never late, 5 year old loan.
I thought they only financed double wides!
nope. Greentree is the absolute worst servicer there is. they are worse than a collection agency. google them once and see how many complaints
It will only get worse with Greentree. I don’t know who the worst terrorist in the world may be, but that person is also very high in the management of Greentree.
They close the billing cycle the day before your payment is received, regardless of the date of receipt, you are billed for 2 months perpetually. They will acknowledge receipt but all their correspondence is “an effort to collect a debt”. Sucks big time especially when you are current.
One of the best strategies is to pay off mortgage early is to get at least one month ahead & stay one month ahead (or in your case two). It chops of years on the loan & saves a bundle!!!! Beat them at their game! Better yet, all cash, buy an RV, & a Boat big enough to drive it onto & be ready for the big escape when things will inevitably get worse because nothing has been fixed that was wrong & quantitative easing/printed money will leave us sooo upside down, no one will afford anything here with the inflation to follow. Don’t have roots here, it don’t look pretty!
Not a surprise to me, but the news does give me an excuse to move happy hour from 5pm to noon!
Excellent EXPOSE’ and great analysis.
Unfortunately, the “99%” will miss this one and just take it in the teeth. Then we will have to raise taxes to cover the default, not whether, but rather “WHEN” it happens.
The sooner we break this bank into pieces the better off we will ALL be.
When will they ever learn…when will they eve-e-e-r learn!!!
G.Arthur Joy
Hey Frank & Brian, 1st Thanks for mentioning name and idea on your show yesterday. Amazing results. It’s like I’m locally famous in an instant. Hey…this video marketing stuff may actually work. Maybe we should actually…….DO THIS!! Crazy idea huh?
How is this any different from a “3rd world country” that we tag as “CORRUPT”.
if it quacks it’s a duck not a cow.
Our government level of corruption and inside deals on the back of it’s own citizens is shameful and sickening.
See the movies “Too Big To Fail” and “Inside Job”
Amen, big time, Rachell.
How is this any different from a “3rd world country” that we tag as “CORRUPT”.
If it quacks it’s a duck not a cow.
Our government level of corruption and inside deals on the back of it’s own citizens is shameful and sickening!
see the movies “Inside Job” and Too Big To Fail”
sorry it posted twice
Once again I suggest reading Dr. Thomas Sowell’s three article series “back to the future” to understand clearly how the “active” intervention is slowing the recovery. It was great to finally hear, on national TV, a leader call for Barney, Chris and Chuckie to be thrown in jail. It appears the Solyndra law breakers in the admin should follow and now Gentle Ben is wanting to go there as well. If we don’t throw some in jail, there will be no fear of the electorate on the part of any administration or legislative folks.
you are sooooo right
Sorry but Barney would enjoy being in jail to much , we will have to figure something else out for him
maybe a women’s correction facility
I know I should not be shocked by this date and time in this crisis but…
As a Realtor in Cape Coral, Florida, one of the hardest hit places in the USA you may not believe that Realtors have been tar and feathered as causing or greatly responsible for the real estate crisis.
Nothing should suprise anyone. I closed a sale yesterday with a buyer obtaining BOA financing. It took five one week extensions to get it closed on a 800 credit score and 80% LTV. At the closing table the originator told the two attorneys that both do closings for BOA “that if you have any loans in process get em closed now, we might not be in business next week”
What’s the big deal guys….we all know that the banking industry is destroying the economy, the government is being run by thieves, morons and payola recipients….so what is so shocking about this news bit?
What’s shocking is that more taxpayers are not out there in the streets ready to hang these bastards by their greedy little necks!!! JJ
Hi Frank and Gary
I think you should interview a realtor that does Fannie Mae listings.
What a mess, they are 5 months behind on reimbursing him, have lowered their commissions and have very unreasonable requirements for the realtors,.
Call John Hoffman @ 630-601-1300, I think you would find his story very interesting, An I am sure he would love to tell you the mess taking these lisiting is for realtors!