Video: Chris Whalen & Barry Ritholtz on Security Fraud, buybacks for banks & ForeclosureGate

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Nationalized Housing Market, posted with vodpod

 

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October 19, 2010. Tags: , , , , , , , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Mind bending dissolution of housing/foreclosure law as we have known it continues apace: Will Obama destroy property rights and rule of law for TooBigToFail ZombieBanks constantly threatening TEOTWAWKI? Elizabeth Warren on the Fraud – ‘This is a Very Big Problem’; Citibank Report ‘Foreclosures Gone Wild’

Citibank Report ‘Foreclosures Gone Wild’ and the ramifications to MBS REMICs and more happy, happy, joy joy courtesy of Market Ticker who summarizes thusly:

…In the best-case scenario, the banks are lying (again) and it will take a year to sort out (during which time they will bleed like a stuck pig on their servicing costs and obligations.)  In the medium scenario they get sued to Mars and, which he didn’t say but I will, all wind up eating the bad paper which forces them into resolution – shareholders are wiped out and bondholders take a nice chop-chop. And in the worse-case scenario the title companies say “fuggit” and it all blows up instantly.

There’s no scenario under which “it’s all ok” folks.

 

October 12, 2010. Tags: , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Hitler reacts to Foreclosure-Gate

Mashup by propanealex

October 11, 2010. Tags: , , , , , . Comedy, Entertainment, Housing, Politics, Popular Culture. Comments off.

Housing – Details on FHA Refi program launching next month

Another update, courtesy of CR and Diana Olick, HUD says no talks underway for another FTHB tax credit. Good, it is useless:

Diana Olick at CNBC contacted HUD today: Another Home Buyer Tax Credit?

[A] HUD spokesperson … responded: “No news here…there are no discussions underway to revive the credit.”

Here’s a song for anyone suffering through HAMP or HousingHell-

Above the post update- from Sunday:

HENRY: But in May, you said we are beginning to turn the corner (on housing). Can you still say that? Are we still turning the corner when these numbers are so awful?

DONOVAN: Ed, compared to where we were — and I am talking about where we have been for the last 18 months, the housing market, no question was significantly better. The issue now and what we are focused on is the future.

Shaun Donovan, HUD Chief, was telling America Sunday that HAMP worked just fine! I cannot even laugh at that having been in the Eighth Circle of Hell known as the HAMP application process.

So 500,000 people were strung along, paid on time, and were then kicked off the program and out of their houses much worse off financially and emotionally, and that was fine, right Donovan? the important thing was to protect TBTF from taking  hit on inventory flooding markets right ? Man these folks pixx me off. And just how did that work out? WE ARE IN THE EXACT SAME POSITION!

In fact, it is worse. NOW homeowners no longer TRUST these half axxed Govt programs, they KNOW we are being strung along, so now WALK AWAY is in the minds of the middle class, FAIR GAME. You MORONS are BREAKING the PARADIGM!

Continuing the ‘doing everything but the right thing’  meme, HUD is rolling out another iteration of help for homeowners that shovels tax $ to TBTF without actually, you know, HELPING the actual homeowners.

Maybe this will be done as the MS White Paper suggested which I think makes sense. If not, it is a drop in the bucket of overflowing programs that just prop up TBTF and do nothing to address the underlying issue: consumer balance sheets MUST be fixed to get the economy growing again, period.

HousingWire:

According to a mortgagee letter sent out today, the new program would provide additional refinancing options to underwater homeowners starting Sept. 7. To be eligible for the new loan, the homeowner must be underwater but still current on the mortgage. A credit score of 500 or better is required, and once refinanced and insured by the FHA. The new refinanced loan must have a loan-to-value ratio of no more than 97.75%.

The borrower’s existing first-lien holder must agree to write at least 10% of the unpaid principal balance, and it must bring the borrower’s combined loan-to-value ratio on that first mortgage to no more than 115%. The existing refinanced loan cannot be an FHA-insured one.

Over the last 18 months, the Federal Housing Administration (FHA) has insured 30% of purchases and 20% of refinances in the housing market. During that time, FHA also helped 1.1m homeowners refinance and insured 1.4m mortgages. More than 80% of those were for first-time homebuyers.

Donovan said the refinance program will target the growing number of underwater borrowers, who owe more on their mortgage than their home is worth…

God Bless America. I hope this saves some homes for some families. TBTF does not need anymore of our tax $ they are sitting on over a trillion already.

Update: Oh look, Trez has decided GSE backed mortgages, will NOT be aLLOWED TO PARTICIPATE IN THE PROGRAM! tHE EXACT OPPOSITE OF WHAT needs to happen, sorry damned caplock! I dont have time to fix it, here you go:

KBW said the FHA refi program is unlikely to have “any meaningful impact” on agency MBS, because only 8% of Freddie Mac and 14% of Fannie Mae mortgages have LTVs in excess of 100%. Additionally, the firm noted the Treasury Department has said the government would not consider allowing the GSEs to write-down underwater mortgages.

So IOW it is another BS head fake program to slow inventory. They wont be happy until housing takes the economy down again, it is already happening. The stupid it burns!

August 30, 2010. Tags: , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Q2 GDP revision

Update: 8:30 am Revision to 1.6%, est was 1.4% (original 2Q reading was 2.6%). This is only the first revision folks, it will get worse on the next print.

~How low can you go~ How can they get this number up without the Return of the American Consumer? They can’t. You need us TBTF face it.

Obama expects the Fed to save his bacon. Ummmmm bacon. Obama, unable to take responsibility, has nicely deflected the MFM to portray this as all on the Fed. Pfft. Consumers need $ to consume, period.

We have been calling for a double dip for over a year, and the fact that a trillion dollars in stimulus only got us 3 really good prints on GDP is, well, FRAKKIN PATHETIC!!!

WHAT A WASTE! Ugh! And what do we have to show for it? New infrastructure? Nooooo. I have no G-D idea what they did with all that $. At least when I blow through a wad of cash I can usually look around the house and SEE things I invested the dough in. Like a new door, or pavers, or a tankless water heater or something. These jokers can not even do that much.

Well back to the drawing board for the FED and TBTF and TPTB.

Hey maybe like Churchill said, ‘After they try EVERYTHING ELSE, they will do the right thing’ and you know, HELP CONSUMERS who are, you know, 70% OF GDP. G-D these people are stupid.

I know I know, you don’t want to help homeowners. But hey, HOUSING LED US INTO RECESSION. It will LEAD US INTO THE DOUBLE DIP (it is as we speak).
Stop throwing wads of cash at FIRE and TBTF and try listening to Scott Brown who tried to pass a WORKER PAYROLL TAX HOLIDAY. DEMOCRATS voted against it.

Gawd forbid we get to keep our money. I know lots of folks do not want to help homeowners they perceive as irresponsible but face it, THOSE PEOPLE SPEND LIKE CRAZY!

Give underwater homeowners already backed by the GSEs, who have already blown through 200B with nothing to show for it BTW, give them a 1 pg refi.

We ALREADY back the loan, we are losing nada, zip, zilch. But if they refi and free cash flow it will both stop the bleeding in foreclosures AND boost CONSUMER SPENDING! Leading to ..JOBS! You remember jobs!

But nooooooo, we cannot have all these trillions going to help ACTUAL CONSUMERS, far better to give it to BANKS who are sitting on it to the tune of 1 trillion, doing ABSOLUTELY NOTHING with it. The Fed can give away all the $ it wants, THERE IS NO VELOCITY PEOPLE!!

At least spenders, SPEND!

Consumers gotta spend.
We don’t have time for Obama’s magical export plan to kick in, even though they are crashing the USD as fast as they can to get there.

Address housing in a meaningful way. TPTB don’t seem to get that even if you are staying in your home, the PERCEIVED drop in value AFFECTS CONSUMER BEHAVIOR!!! It is our biggest asset! How could it not? (Well maybe if we were big spendthrifts like D.C. )

August 27, 2010. Tags: , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Existing Home Sales July PLUNGE 27.2% 3.83 million units, inventory over 12 months…

Update: the perfect Python sketch for this data- economy

Update: 10:16am ESTCR has posted the data. Brutal. Just brutal. 15 year low.

…Months of supply increased to 12.5 months in July from 8.9 months in June. A normal market has under 6 months of supply, so this is extremely high and suggests prices, as measured by the repeat sales indexes like Case-Shiller and CoreLogic, will start declining.

Ignore the median price! Double digit supply and lowest sales rate since 1996 are the key stories….

Hey that’s when we bought our house, 15 years ago. IMO that’s where prices need to be, where they were 15 years ago- coinkydink? I think not, lol.

Treasury told bloggers OFF RECORD that HAMP had worked as intended, b/c even though homeowners went through hell, my words, and then got kicked out of the pr0gram, it served to extend the time to foreclosure keeping supply off market. When bloggers suggested other uses for the HAMP funds, they were told it was all spent. Huh. funny that.

…On HAMP, officials were surprisingly candid. The program has gotten a lot of bad press in terms of its Kafka-esque qualification process and its limited success in generating mortgage modifications under which families become able and willing to pay their debt. Officials pointed out that what may have been an agonizing process for individuals was a useful palliative for the system as a whole. Even if most HAMP applicants ultimately default, the program prevented an outbreak of foreclosures exactly when the system could have handled it least.

There were murmurs among the bloggers of “extend and pretend”, but I don’t think that’s quite right. This was extend-and-don’t-even-bother-to-pretend. The program was successful in the sense that it kept the patient alive until it had begun to heal. And the patient of this metaphor was not a struggling homeowner, but the financial system, a.k.a. the banks. Policymakers openly judged HAMP to be a qualified success because it helped banks muddle through what might have been a fatal shock.

I believe these policymakers conflate, in full sincerity, incumbent financial institutions with “the system”, “the economy”, and “ordinary Americans”. Treasury officials are not cruel people. I’m sure they would have preferred if the program had worked out better for homeowners as well. But they have larger concerns, and from their perspective, HAMP has helped to address those….

So tell us oh brilliant Timmeh, with 12.5 months of supply on market now without the SHADOW inventory we all know is out there, exactly how do you propose to keep these prices up now? You did NOTHING, jack shxt, you made it worse by spending money and breaking consumer confidence in givt ability to help and in fact now people are actively walking away, All you have done is made walking away palatable to middle class people who felt an obligation FIRE and TBTF apparently dont feel, an obligation to live up to their perceived responsibilities.

You Tim, and your masters, are all morons. If you would get the hell out of the way America would right itself. You blew all that money and housing is right where it started, and it WILL take us into the double dip. You moron.

Original Post:

I had the under at 3.77m –

here it comes

fell 27.2% to SAAR 3.83 Million, I WIN!!!!

hey what do I win? does a FRAKKIN JOB come with my prediction, Hey how about making me CHIEF ECONOMIST , oh forgot I am overqualified, I HAVE A FRAKKIN CLUE!!

August 24, 2010. Tags: , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, Taxes, Unemployment Statistics, Wall St. Comments off.

Rick Santelli on GSE Reform

Vodpod videos no longer available.

h/t PK4 on ZH: Rick-

“we need a new amendment that gives every American a house, a car with or without fins, 4-5 weeks of vacation with every Monday off …since government knows better than any other enterprise …and we have years of documented evidence to prove it (paraphrased from earlier today).He also stated that big funds will tell the government that if you don’t guarantee them (GSE debt) that they will dump’em. Bottom line. “GSE’s will cost more than any other bailout …and they haven’t even slowed down.”

Rick Santelli on GSE Reform , posted with vodpod

August 17, 2010. Tags: , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Housing Finance Kabuki: Moving from an ‘implicit’ to an ‘explicit’ government guarantee, taxpayers last in line and holding the bag (again)

10:39am EST- Geithner panel done, Donovan panel beginning.

ZeroHedge notes the ELEPHANT- if Gross wants to nationalize FAN FRED we have to take that second set of books into account…

In fact, Gross urged a move one step further, with the full nationalization of the GSEs – as the GSEs are nationalized now in all but writing, this would be logical. Alas, the fact that US Debt to GDP would jump from 90% to 140% may make this proposal a little difficult to implement.

It is incredibly obvious, to me anyway, that the plan is to convert all those foreclosures to GSE Section 8 rentals with taxpayer subsidized guarantees and payments. And to think all those people didn’t want to help the homeowners. HA!! Now we will help renters instead. PS I dont see Mark Zandi…..good, he has been WRONG, wrong on the spendulus, wrong on the recovery, wrong, wrong, wrong.

and Bill Gross keeps calling Geithner, Tim, which reminds me of Sen Tester calling Chairman Bernanke, Ben, during the last Humprhey Hawkins testimony. I find it very disconcerting. PRETEND you dont own these people mkay? sheesh.

Update 4: Bill Gross says let me address reality. It is an 11 trillion dollar market and a large place for private entities here is unrealistic.

Update 3: LiveStream from Treasury here, list of panelists at bottom of this post. Oh look it has occurred to Mark Morial-one of the panelists that this would create a ‘class of Section 8 renters’. Yep. Timmeh says, well Marc, if we maintain the FHA giving generous subsisdies to people who buy a more modest house would that address your concerns? Yes says Marc,

Pfft! Require housing counseling, etc. Oh here we go BACK TO CRA good grief. As long as everyone gets ‘theirs’ frak the taxpayers right people? Jeebus! Marc says as long as Main St and Back St get covered we are aall good. O..M…G… Main St is PAYING FOR ALL THIS SHXT!!!!!

Update 2: I knew it I frakking knew it!! these frakkers are going to turn this into Section 8 rentals nationwide, arrrrgle- and see this as well

The government should create an apartment real estate investment trust (REIT) to rent out foreclosed properties — a method that would avoid flooding the housing market with foreclosed properties, a real estate consultant said as President Obama’s “Future of Housing Finance Conference” kicked off Tuesday.

John Burns, CEO of John Burns Real Estate Consulting, said the government-created REIT would be self-sustaining via rental fees. The government-sponsored enterprises, Fannie Mae and Freddie Mac, would hire outside property-management firms to manage the rental properties, Burns said….

and another update from Jimmy P, Gross is throwing his CONSIDERABLE weight around (biggest bond playahs worldwide!)

JimPethokoukis

Housing Conf. Bill Gross: Comes out for a Giant Refinancing Plan for America. 1 minute ago via web

JimPethokoukis

Housing Conf. Pimco’s Bill Gross: Too many homeowners, houses – more renters; 1 giant GNMA replacing Fannie, Freddie; Need govt guarantee;

Update: Follow JimmyPethokoukis on Twitter for updates from the conference!!~

Housing Secretary Sean Donovan: Being a homeowner not the right option for everyone

ZeroHedge has a nice write up. Geithner is on record indicating the implicit guarantee needs to be explicit, and PIMCO’s Bill Gross is REALLY CLEAR they will NOT be buying any mortgage securities unless we move back to a 30% down model. Since the government will not ‘take the pain’, pain we taxpayers KNOW is ALREADY coming for US BTW, they need to reflate the bubble, so Bill gets what Bill wants, an explicit guarantee…guaranteed!

ZeroHedge (go read the whole thing!):

Tomorrow, a variety of luminaries, such as Bill Gross and Mark Zandi, will be panelists in a worthless and futile spectacle titled “Conference on the Future of Housing Finance ” which has the aim of doing something or another to extend and pretend the ticking timebomb that are the bankrupt GSEs. It will most certainly succeed in that regard. What it will definitely fail at, is to provide some resolution to the $7 trillion mortgage “holding” problem, which incidentally was the first domino to fall in 2008, which just so happened nearly took down western-style capitalism with it (and morbidly, it should have: the result would have been a system infinitely better).

Yet as we prepare for this hearing (and try to track down Mr. Gross’ testimony to validate his previous statement that absent an implicit government guarantee he would buy MBS/Agency securities only with 30% down), here is another view, this one from none other than Edward Pinto, who himself was an executive vice president and chief credit officer at Fannie Mae in the late 1980s. As Pinto says, echoing the previous high dB statements by Rick Santelli, “We’ll never get a rational mortgage system until the government’s affordable housing mandates are ended.” We couldn’t agree more….

From Pinto, the BAD news for taxpayers:

…A consensus is building around a three-part grand bargain:

• An explicit federal guarantee of a large portion of the mortgage-backed securities created to finance American’s home mortgages;
• A tax on these securities to fund low-income housing initiatives; and
• A requirement that issuers of securities meet affordable housing mandates.

This is a dead end for two reasons. First, while supporters of an explicit federal guarantee tell us it will never be called upon, Americans have read this book before and know how it ends….

Panelists:

Diana Farrell, NEC Deputy Director

Treasury Secretary Geithner

HUD Secretary Donovan

Barbara J. Desoer, President of Bank of America Home Loans

Ingrid Gould Ellen, Professor of Urban Planning and Public Policy at New York University’s Wagner Graduate School of Public Service and Co-Director of the Furman Center for Real Estate and Urban Policy

Bill Gross, Co-founder and Co-chief Investment Officer of PIMCO

Mike Heid, Co-president of Wells Fargo Home Mortgage

S.A. Ibrahim, Chief Executive Officer of Radian Group Inc.

Marc H. Morial, President and Chief Executive Officer of the National Urban League

Alex Pollock, Resident Fellow at the American Enterprise Institute

Lewis Ranieri, Chairman of Ranieri and Company, Inc.

Ellen Seidman, Executive Vice President for Mission and Strategy, at ShoreBank Corporation, and Chair of the Board of Directors at the Center for Financial Services Innovation

Michael A. Stegman, Director of Policy and Housing for the Program on Human and Community Development of the John D. and Catherine T. MacArthur Foundation

Susan Wachter, Richard B. Worley Professor of Financial Management, Professor of Real Estate, Finance and City and Regional Planning at the University of Pennsylvania’s Wharton School

Mark Zandi, Chief Economist of Moody’s Analytics

August 17, 2010. Tags: , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. 1 comment.

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