50 Ways to Leave Your Lender


February 1, 2010. Tags: , , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Update: Housing: Barney Frank D-MA House Financial Svcs Cmte hearing on HAMP & Loan Modifications…

Update 3: CSPAN will have the hearing up later at this linky. Three panels included the following:

The House Financial Services Committee held a hearing titled, titled “The Private Sector and Government Response to the Mortgage Foreclosure Crisis.” Panel One * Ms. Molly Sheehan, Senior Vice President, Chase Home Finance * Mr. Jack Schakett, Risk Management Executive, Credit Loss Mitigation Strategies * Ms. Julia Gordon, Senior Policy Counsel, Center for Responsible Lending * Dr. Anthony B. Sanders, Distinguished Professor of Real Estate Finance, Professor of Finance School of Management, George Mason University * Ms. Laurie Goodman, Senior Managing Director, Amherst Securities, LLP * Mr. Bruce Marks, Neighborhood Assistance Corporation of America Panel Two * The Honorable Herbert M. Allison, Jr., Assistant Secretary for Financial Stability, U.S. Department of the Treasury * Mr. Michael H. Krimminger, Special Advisor for Policy, Office of the Chairman, Federal Deposit Insurance Corporation * Mr. Douglas W. Roeder, Senior Deputy Comptroller Large Bank Supervision, Office of the Comptroller of the Currency

Update 2: WSJ has some highlights. The Banks should pay attention, b/c TheHill is reporting the judicial modification aka cramdown bill is back, this time in the regulatory reform bill.

House Financial Services Chairman Barney Frank (D, Mass.) harshly criticized the Obama administration’s efforts to keep people in their homes.”We have a great frustration with the failure of the combined efforts of elements of the federal government to make a substantial impact on the foreclosure crisis,” Mr. Frank said in opening remarks at a hearing before his panel Tuesday on lender and government responses to soaring foreclosures.

…Critics have ratcheted up attacks on the administration’s Making Home Affordable Program, which they say is ill-suited to address what they contend are the current causes of spiking foreclosures: negative equity, high unemployment and a wave of resets on complex mortgages that are difficult to modify. The program relies on hefty incentives for servicers to lower borrower payments to 31% of income.

…Executives from J.P. Morgan Chase & Co. and Bank of America Corp. testified that the banks were struggling to move borrowers into permanent loan modifications because eligible borrowers weren’t submitting the required paperwork….


December 8, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. 2 comments.

Housing: Foreclosures still rising – RealtyTrac confirms earlier UBS’ forecast- won’t peak until 2010…

Here is our post on the UBS forecast for housing foreclosures and mortgage defaults

RealtyTrac concurred with UBS’ position today:

Team TOTUS needs to get the programs that they have already announced properly implemented (HAMP, HASP, PPIP) and either a. working or b. scrap them, cut off the funds, and try something else as far as housing is concerned or we will hit that second leg down in conjunction with a rising tax environment a la Congress and the consumer will go down for a generation IMO…

and don’t even think about anything in the Middle East happening to hit oil prices cuz then we will get another 2 years of TOTUS blaming THAT for his economic failure just as he stops blaming Boooosh!

Barney Frank and Dick Durbin are ready to reintroduce the bankruptcy cramdown bill and the banks have no one to blame but themselves at this point.

..The second-most powerful Democrat in the Senate called the Obama administration’s mortgage modification program“a waste of time” Wednesday, hours after the White House released disappointing new data about the program’s effectiveness

…Mr. Frank has been arguing that if the administration’s loan modification efforts, which rely on voluntary participation by mortgage servicers, don’t improve, then the political winds will move in his favor—and against the banks. “Let me put it this way,” he said at Wednesday’s hearing. “The best lobbyists we have for getting bankruptcy legislation passed are the servicers who are not doing a very good job of modifying mortgages. And if they do not improve their performance, then they improve the chances of that legislation.”…

Meredith Whitney mentioned on CNBC this morning that the banks have increased their MBS holdings of all things, are they buying each other’s properties to avoid taking writedowns after 90 days on foreclosed props??

Is that why people are making market offers and getting turned down by the banks? When will the banks get a CLUE that in THIS political environment their best interest is not served by artificially inflating asset values and failing to make MEANINGFUL modifications with the Federal incentive payments and taking a tiny profit, rather than not doing so and being TOTALLY rolled by Frank and Durbin and thereby starting a cycle of bad loans to people who cannot afford the homes all over again???? Hmmmnnn? Memo to banks suck it up, take the hit, walk it off like consumers do before you get reamed by Team TOTUS’ machine…

September 10, 2009. Tags: , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Wall St. 2 comments.

Housing Update: Bankruptcy Cramdown/Judicial modification effectively ‘dead’ in the Senate…

Cram down looks to be dead, WOTS is Tiny Timmeh and TOTUS weren’t really supporting it. Wonder if they used it as a stick to get JPMC and TARP friends to roll over on Chrysler huh…

Anywho if you are in Phoenix Metro and you need assistance with mortgage modification and the many Team Obama plans, Congressman Harry Mitchell has responded to a barrage of requests and is hosting a gathering this Saturday, May 2nd to help people get through the paperwork. MiM will post details shortly…

From Diana Olick:

Although the Senate vote hasn’t actually taken place (expected mid-afternoon) bankruptcy “cram down” is effectively dead on the Hill for the time being. The 60 votes needed are simply not there. This is the measure, approved by the House, to allow bankruptcy judges to modify home loans, including writing down the principal on those loans. The banking industry has been wildly opposed to it, claiming that the provision would cast uncertainty over the value of all home loans, and thereby raise interest rates for everyone….


First, despite President Obama’s endorsement of the idea during his campaign and his adding the proposal to his overall housing rescue plan once he was in office, the administration did not really get behind it. My source tells me, “privately Treasury officials have not been enthusiastic.

Go read the whole post, Diana Olick is on top of Housing updates….

April 30, 2009. Tags: , , , , , , , , , , , , , , , , , . Economy, Foreclosures, Housing, Obama Administration, Politics, Uncategorized. Comments off.

The Critters are Back in Town: Bankruptcy Cramdown/Judicial Modification Bill Update…


The Congress Critters are Back in Town!!!

As the Critters roll back into town to do mayhem, cramdown/judicial modification is on the top of the list. Our previous posts on the housing cramdown/modification began in February, soon after we came online here . Also we followed the issue here and here and  here and  here and  here and  here

If you live in the sunbelt, take note, Timmeh threw us under the bus in the TARP Oversight Cmte hearing today. When asked specifically about mortgage refinancing and modification in CA, NV, FL, AZ and even IL was mentioned, specifically, Geithner was asked about these areas in which homeowners are underwater due to the precipitous drop in valuation (and many of us did nothing wrong, our neighborhoods are being dragged down in comps by empty houses that in many cases were purchased on spec by ‘flippers’ who do not even live in the area…

He also made clear he has NEVER worked in the private sector, Gawd Help Us!!!

So Geithner when pressed about all these homes, (which are continuing to add to inventory, thereby preventing a housing bottom from forming, and preventing the construction recovery we will see after that housing bottom is put in), and whether the Administration was relying on the bankruptcy cramdown legislation and asked were there any other plans to address these homes should that legislation stall/fail..Geithner said no, we are revamping Hope for Homeowners (the useless plan Barney Frank and Hank Paulson put out that at last word helped a whopping 57 people)..

Timmeh also suggested those underwater were irresponsible stating the Team Obama plans were mainly for responsible homeowners. I  am sure that comforts CA, NV, AZ, FL and IL..WTH??? And the worst part is Timmeh did not GET the SIGNIFICANCE of the question clearly. Does he not understand the POINT of these half assed plans is to STABILIZE HOUSING and GET A BOTTOM IN so we can RECOVER??



‘we will get that Geithner testimony up shortly..here is the latest on cramdown…

Diana Olick on the Housing Beat for CNBC:

Despite the fact that the press representative in Senator Dick Durbin’s (D-IL) office tells me “negotiations are still underway,” several outlets are reporting that the Senate version of the so-called bankruptcy “cramdown” bill is imminent. The house passed legislation in March allowing bankruptcy judges to modify home loans, with a couple of caveats, the main one being that the borrower had to have exhausted all possibilities for modification with his/her lender.

Now we’ve already discussed ad nauseam the main argument against the idea, which is that it would throw into question the value of all mortgages, and therefore raise the cost of a mortgage for everyone else. So far only Citigroup has said it would support such a bill, but supposedly the other big guys, like JPMorgan Chase and Wells Fargo are heavy in the negotiations. The lobby against is strong, and banks, while down, are certainly not out in the beltway bargaining game….


The pace of hearings, votes and new legislation aimed at reining in banks or adding further restrictions to those that received government rescue funds is only likely to increase ahead of the next congressional break in five weeks.

“We are fighting battles on many fronts,” said Scott Talbott, the head lobbyist for the Financial Services Roundtable. “The frenetic pace will continue. Congress will pick up right where they left off.”

A key battleground remains a bill that would let judges cram down debt on primary mortgages in bankruptcy proceedings. Though the bill passed the House last month, it has remained stalled in the Senate, where its chief sponsor, Sen. Richard Durbin, D-Ill., is continuing to negotiate with large banks on a deal.

So far only Citigroup Inc. has agreed to support the bill, cutting a deal in January that would limit it to covering existing mortgages. Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. are said to be in discussions with Sen. Durbin about ways to further limit the bill.

Though no deal had been reached by press time and was unlikely to be reached before lawmakers’ return, a number of lenders have been pushing to exclude loans from bankruptcy cramdown if the mortgage was eligible for President Obama’s foreclosure plan or the Hope For Homeowners program.


…Congress is also still trying to advance a mortgage-cramdown bill that would hammer the value of already distressed mortgage-backed securities, and now the Administration is talking up legislation to curb credit-card fees and interest. Both of these bills would damage bank profits, but large government ownership stakes would leave the banks helpless to oppose them. (See Citigroup, 36% owned by the feds and now a pro-cramdown lobbyist.)…


A recent opinion piece in the Wall Street Journal claims that Senate Assistant Majority Leader, Dick Durbin, is using his control of the Senate calendar to break down resistance to a change in the bankruptcy laws that was passed in the House or Representatives but stalled in the Senate by the threat of filibuster.

According to the Journal, Durbin is blocking a bill favored by banks to expand “…the FDIC’s line of Treasury credit to $500 billion from $30 billion. That extra credit might ease the FDIC’s proposed deposit-insurance fee increase for banks…”…

*Thin Lizzy courtesy of cawright1

On the Tube, 1983. Great performance by Phil and the lads!

April 22, 2009. Tags: , , , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Housing, Music, Obama Administration, Politics, TARP, Uncategorized. Comments off.

Roll Call, Bankruptcy Cramdown passes House ….

The roll call:

GOP who votes Aye:

Diaz-Balart, L., Diaz-Balart, M.; McHugh, Ros-Lehtinen, Turner,

Dems who voted Nay:

Arcuri, Berry, Boren
Boucher, Bright, Carney, Childers, Dahlkemper, Davis (TN), Edwards (TX)
Ellsworth, Gordon (TN), Griffith, Hill, Holden, Kind, Kissell, Kratovil, Markey (CO)
Massa, Matheson, Stupak, Taylor, Teague,

UPDATE 2: 6:10pm EST: Cramdown passes House: 234-191

will post roll call as soon as it is up…7 GOP critters voted for it,  24  Dems voted against…

UPDATE: Man they cannot let it go, Barney Frank is on the floor claiming the GOP Amendment to recommit is to make Obama fail like Rush said, that is what he said, he quotes Rush….15 minute vote on this Price Motion to recommit with instructions (tabling the bill) and then they move to final vote on passage…

FDIC insurance permanent expansion to 250k is added onto this bill….


LIVE on the floor CSPAN

Price Amendment up now to allow lenders to recoup judicial cramdowns upon sale of the home…Price Amendment fails 211 to 218

The Band:

I pulled into Nazareth, I was feelin’ about half past dead;
I just need some place where I can lay my head.
“Hey, mister, can you tell me where a man might find a bed?”
He just grinned and shook my hand, and “No!”, was all he said.

Take a load off Fannie, take a load for free;
Take a load off Fannie, And (and) (and) you can put the load right on me.


March 5, 2009. Tags: , , , , , , , , , , . Foreclosures, Housing, Music, Obama Administration, Politics, Taxatrion, Taxes, Uncategorized, Wall St. 1 comment.

Economic Stimulus Update: AZ stimulus showdown: Political Dueling for a Fistful of Dollars or a Few Dollars More

govbrewerOur GOP branches are arguing and trying to throw each other under the bus over the stimulus here in AZ.

The State Legislature accuses the Governor of having deliberately cut the most ‘sensitive’  areas of services  to arouse voter anger and pushback so that the GOP legislature will be unable to fight her secret wish to take lots of money from Team Obama.

The Governor says not I! I merely began making the cuts you legislators legislated….

and the “really good news” they reported as a headline in our local media is that now that our Unemployment rate has jumped to 7.01% we are eligible for even more federal handouts! Gee it’s great to have your economy collapse! Let’s all be unemployed! What is wrong with these people?!

East Valley Tribune:

Republican lawmakers are off base in criticizing agency chiefs for cutting services to the poor, Gov. Jan Brewer said Wednesday.

Brewer told Capitol Media Services it should have come as no surprise that the Department of Economic Security, the Department of Health Services and the Arizona Health Care Cost Containment System all announced that they would be eliminating certain programs. That followed mandates by the Republican-controlled Legislature to each of those agencies to cut spending by millions of dollars to help balance the state budget.

Senate Majority Whip Pam Gorman, R-Anthem, was particularly critical of the cuts by DES. That agency reduced by 1,100 the number of beds in homeless shelters it would fund and eliminated services for 5,000 people who are developmentally disabled.

DES also eliminated subsidized child care for 20,000 low-income families, a cut that Brewer restored Wednesday.

“When you are taking cuts that look to any observer to be the last place that you should be looking for cuts and actually it’s on your first pass, you have to think to yourself, why would they do that?” Gorman said. “So our only guess is that it’s politically motivated – not politically in the terms of Republican versus Democrat – but in terms of creating a grass-roots campaign if you will to stave off any cuts.”


March 2, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , . Art, Department of Education, Economy, Film, Foreclosures, Healthcare, Housing, Labor Department, Music, Obama Administration, Politics, Popular Culture, Uncategorized, Unemployment Statistics. Comments off.

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