HOUSING UPDATE – Financial Services Cmte asking for your experiences with JPMorgan Chase ahead of hearing tomorrow…

Update: There is another hearing tomorrow, see today’s hearing here:

April 13th from prepared testimony reads more like a PR show by the banks.
April 14th will be the regulators the National Law Center and those pro HAMP vs The Bankers Assoc and others

Both will be broadcast live

More info:
Barriers to Principal Reduction
April 13: House Financial Services Committee

The Recently Announced Revisions to HAMP
April 14: House Financial Services Committee

RE: Congressional Hearing in Washington DC, Tuesday 4/13/10, 10am with the Financial Committee.

MiM has been covering the many moods of the HAMP program since its inception.

Okay peeps, if you have a HAMP experience you would like to relate to the House Fin Svcs Cmte ahead of the hearing tomorrow on HAMP and servicers please contact as follows with your experience:

From loansafe.org Chase HAMP thread:

Just had a phone call from Brendan Woodbury – who is also handling tomorrow’s House Financial Services Committee hearing

He said for me to asap FAX over all I have – I asked him if it would be ok to have others do the same – he said by all means.

brendan.woodbury@mail.house.gov

FAX ASAP what you have gone through to
Congressman Barney Frank
MARK URGENT – PERTAINS TO FINANCIAL MEETING 4/13/10
FAX to (202) 225-0182

The head of mortgage lending for JP Morgan Chase David Lowman entered testimony suggesting a Quick turn around and assistance for any homeowner trying to stay in their home.

More info here including David Lowman’s prepared testimony (click on the link to his name).
House Financial Services Committee

Any HAMP applicant, after either introducing you to their friend..RALPH!,  or laughing deliriously in response, will happily hand over evidence of, in most cases, 15+ months of fruitless attempts to work with the servicers on HAMP.

HAMP is all voluntary. HAMP to date, is extend and pretend to keep homes off the market until the deluded banks think prices will come back. Forecasts suggest 15 YEARS before prices are back in sand states.

Today the big servicers are opposing the principal writedown approach Treasury is finally coming around to.

In written testimony prepared for a hearing in Washington Tuesday of the House Financial Services Committee, some of the nation’s top mortgage lenders warned of the risks of relying heavily on forgiving principal as a means of averting foreclosures and argued for concentrating mainly on other methods, such as reducing interest rates….

These banks forget TARP, its entire purpose as written was to buy bad home loans and relieve the foreclosure crisis that led to the financial collapse. Instead they got a free ride, FED continues to give them free money, they have rates so low savers are punished, they continue to devalue our dollar so we have less purchasing power, and they won’t fix the damn housing issue which is back with a vengeance.

If they will not work out the loans to resolve the issue, then the House needs to go ahead and do the cram down bill instead, which we have been opposed to until now. The banks need to share the economic pain they brought upon us all.

If we had LET THEM FAIL, they would’ve done write downs themselves to keep afloat. Our interference with TARP let them avoid the principal writedowns to begin with.

One more time – FAN FRED FHA back all these loans anyway, the TAXPAYERS are ALREADY on the hook. Not working through mods quickly with writedowns means walkaways continue apace. They are accelerating and the recent FAN home attitudes survey showed fully 15% of those surveyed agreed it was ok to walk away if facing financial difficulty making payments.

…When asked if financial distress makes stopping payments on an underwater mortgage acceptable, 15 percent of respondents said yes in Fannie Mae’s National Housing Survey, a remarkable level of public acceptance for homeowners who walk away from their mortgages in light of the growing number of defaults in Fannie Mae’s portfolio.

Both delinquent mortgage borrowers and those current on their mortgage payments are more than twice as likely to have seriously considered stopping their payments if they know someone who has already defaulted, according to the survey released today.

Underwater borrowers were more than twice as likely to be behind on their mortgage payments and were more than twice as likely to believe stopping payments was acceptable than borrowers who were not underwater. Only 33 percent of respondents cited their moral qualms as a factor motivating them to pay their mortgage…

Even conservatives are FINALLY accepting HOLC (HomeOwnersLoanCorporation like in Depression)- CATO INSTITUTE!

…The omission of recourse has been a major flaw of the Obama loan modification plans. If the taxpayer is putting something on the table, then borrowers should be expected to do the same. During the Great Depression, FDR recognized as much.

The primary New Deal vehicle for addressing foreclosures was the Home Owners Loan Corporation. The HOLC required recourse and practiced it. In fact, approximately a third of HOLC revenues were from deficiency judgments against delinquent borrowers, including wage garnishment. Perhaps there are some parallels to today, as the HOLC found the second most common reason for foreclosure to be “obstinate refusal to pay.”

FDR recognized that many delinquent borrowers could afford neither their mortgage nor a deficiency judgment; we must recognize the same today. Recourse is not a cure to stop every foreclosure. It is, however, a proven method for reducing some foreclosures…

and now admit it would have been better in 08. Gee who said that? Hillary that’s wh0.

…First, we must address the skyrocketing rates of mortgage defaults and foreclosures that have buffeted the economy and ignited the credit crisis. Two million homeowners carry mortgages worth more than their homes. They hold $3 trillion in mortgage debt. Nearly three million adjustable-rate mortgages are scheduled for a rate increase in the next two years. Another wave of foreclosures looms.I’ve proposed a new Home Owners’ Loan Corporation (HOLC), to launch a national effort to help homeowners refinance their mortgages. The original HOLC, launched in 1933, bought mortgages from failed banks and modified the terms so families could make affordable payments while keeping their homes. The original HOLC returned a profit to the Treasury and saved one million homes. We can save roughly three times that many today. We should also put in place a temporary moratorium on foreclosures and freeze rate hikes in adjustable-rate mortgages. We’ve got to stem the tide of failing mortgages and give the markets time to recover.

(more…)

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April 12, 2010. Tags: , , , , , , , , , , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Hillary Clinton, Obama Administration, Politics, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Jamie’s Cryin’..again: Another Obama backer complains about Obama policies…

Are we officially sick of these idjits who backed Obama cryin about his policies yet? Cause it’s getting real old, real fast…Jamie’s cryin again..shoulda backed Hillary…at least I get to listen to a good tune whenever Dimon starts whining about Obama bank policy.

Read Jamie’s letter to shareholders this quarter here

Jamie got another big profile in the WSJ on his complaints about Obama, notice the title of the piece, Mr Dimon Goes to Washington, as if he is a man of the people fighting for us. Uhhh Jamie the narrative was written by your choice Obama, live with it:

…But when White House Chief of Staff Rahm Emanuel called a top J.P. Morgan executive to ask for the bank’s support in creating a new consumer-protection agency, the executive—former Commerce Secretary William Daley—said no, according to people familiar with the conversation. His boss believed that sufficient consumer safeguards were already on the books.

At a recent White House lunch with President Barack Obama and a handful of other executives, Mr. Dimon, 54 years old, complained to the president that the administration’s anti-bank rhetoric “isn’t helpful,” because it demoralizes businesses and employees, according to a person familiar with his comments.

Mr. Dimon’s disdain for the process has been crescendoing for some time. Last spring, he showed his irritation over the Treasury’s requirement that banks raise fresh funds before they quit TARP. Speaking at a June hospitality industry conference in New York, Mr. Dimon read aloud a fictitious letter to Treasury Secretary Timothy Geithner. “Dear Timmy, we are happy to be able to pay back the $25 billion you lent us. We hope you enjoyed the experience as much as we did.”…

Ouch!! Jamie was one of our picks for Tres Sec before it was fashionable…you know that dig hurt Timmeh…WSJ cannot seem to decide if it is pro Jamie here, they note his newly redesigned office like they were the NYT doing a hit piece on John Thain at Merrill…

…In a recent interview on the 48th floor of J.P. Morgan’s newly redone minimalist Park Avenue headquarters, Mr. Dimon showed little sign of backing down. “The incessant broad-based vilification of the banking industry isn’t fair and it is damaging,” Mr. Dimon said. “Punishing whole industries, whether you were reckless or not, just isn’t the way to do things.”

A number of political insiders say they’ve grown weary of Mr. Dimon’s protestations, viewing him as just another elite New York banker out to protect his turf. Some note that the bank profited handsomely during the financial crisis, when it scooped up securities firm Bear Stearns Cos. Inc. and Washington Mutual Inc.’s failed banking operations at bargain prices.

Rep. Brad Sherman, a California Democrat and senior member of the House Financial Services Committee, said J.P. Morgan benefits from its “ability to create awe and fear and a belief that the world will end if they are not pampered.”…

lol, tsk, tsk Jamie what did you expect?? seriously?? crony capitalism not feelin good when you arent the crony?

…Mr. Dimon has said he is trying to be constructive in dealing with Washington, hoping that his feedback can help lawmakers. And he isn’t fighting all of their proposals. He agrees, for instance, with the notion that banks shouldn’t be considered too big to fail and supports the idea that regulators should have the ability to wind down a failing institution. People close to Mr. Dimon say that he still supports the Obama administration, but has felt blindsided by some aspects of the overhaul…

…But Mr. Dimon’s patience with Washington soon wore thin as political leaders tried to force banks that had taken TARP funds to lend more and slash executive compensation. He was particularly rankled by a new rule putting visa restrictions on TARP recipients who wanted to hire skilled foreign workers.

Although the curbs didn’t affect many J.P. Morgan employees, Mr. Dimon was infuriated, telling his colleagues the move was “un-American,” say people who heard his remarks. On a conference call to discuss the bank’s earnings, Mr. Dimon referred to the TARP program as a “scarlet letter.”

Let’s all agree Marcy Captur D-OH is an idiot, cuz, ya know she is (anyone else remember the hearing when she accused Ben Bernanke of working for Golden Slacks, lol, she had confused him with Paulson pfft!), but the point is Team O isnt protecting the banks like he no doubt promised them he would, wink, wink, nudge, nudge…

In April 2009, Ohio Democrat Rep. Marcy Kaptur confronted Mr. Dimon at dinner at a Washington hotel with other lawmakers. “I have just come from my district and our Realtors told us this morning your company was absolutely the worst to deal with in terms of the foreclosure crisis,” Ms. Kaptur recalls saying to the CEO. “He looked at me, straight in the eye, and said, ‘That can’t possibly be true.’ ”

She rattled off all the people in her district who were losing their homes. Mr. Dimon replied that J.P. Morgan employed 20,000 people in her state, and that he often spoke with the governor and the mayor of Columbus, Ohio, where the bank has extensive call-center and data-processing operations….

Jamie’s feelings are hurt!@ Oh Noes!

…Mr. Dimon acknowledges that jousting with officials—especially during a heated regulatory climate—is simply a part of conducting business. But addressing a room full of J.P. Morgan investors recently, he said of the bankers’ taint: “It hurts your feelings a little bit.”…

Fools.

April 7, 2010. Tags: , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, Popular Culture, TARP, Taxes, Wall St. Comments off.

Golden Slacks, JPMorgan Chase and Morgan Stanley apply to repay TARP….spark monster rally….

Bloomberg:

DOW closed up a monster 200 off the news; still awaiting okay from FED

more about “Left Holding the TARP? – CNBC.com“, posted with vodpod

May 18, 2009. Tags: , , , , , , , , , . Economy, Finance, Politics, Popular Culture, Wall St. Comments off.

Market Mover Tuesday: Stress Test Havoc continues, 10 banks need more capital…

and the leaks go on…

CNBC:

..The exact roster of banks needing to build their capital positions is still unclear. Banks are expected to be briefed on the official results on Tuesday.

The Federal Reserve and Treasury Department also will tell them how policymakers plan to publicly unveil the market-sensitive results, the source said, speaking anonymously because the discussions are private….

..Fed Chairman Ben Bernanke and Treasury Secretary Timothy Geithner are scheduled to present the findings of the regulatory stress tests on Thursday in a 150-page document, the source said.

Who Who Who!?!

Citigroup and Bank of America are expected to be among the companies needing to boost their reserves, Fred Dickson, chief market strategist at D.A. Davidson & Co said on Friday.  Wells Fargo and JPMorgan also are among the banks likely to need more capital, Dickson said.

Oh okay, it’s just all our biggest banks….and the market rallied in the face of this sending the S&P into the black for the year yesterday…D-E-N-I-A-L….

I have an idea, let’s subject the TOTUS Budget Forecasts to the SAME stress test scenarios and see what happens to the deficit! Pffft!

May 5, 2009. Tags: , , , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, TARP, Uncategorized, Unemployment Statistics, Wall St. Comments off.

Housing Update: Team Obama to unveil New, Additional Incentives for servicers/lenders to modify, includes second liens…

housinginyourhands

They are moving to address second liens, ie Home Equity Loans finally. Sadly it appears we will be paying off the banks who made the dopey decisions that got us here. And no word on WHO will be paying to extinguish these second loans down the road…and of course no journOlist follows up with questions on that aspect..

The good news is perhaps we can get the mortgages modified in the hard hit areas, cough cough, Sunbelt, cough cough….

WSJ:

Under a new program, the government will pay mortgage servicers $500 upfront and $250 a year for three years for successfully modifying a second mortgage, such as home equity loan. Separately, the administration will unveil a schedule of incentives for holders of second mortgages to extinguish those liens voluntarily, the official said.

-snip-

Some of the largest U.S. banks, including Bank of America, Wells Fargo and J.P. Morgan Chase, have already agreed to sign on to the program, the official said. …

…Under the program, servicers must agree to modify all second mortgages where the first mortgage has already been modified. To qualify for payment, servicers must extend the term of the second mortgage and reduce the interest rate to match the first mortgage. Then, the government will share the cost with the servicer of reducing the rate down to 1% for amortizing loans and 2% for interest-only loans.

Borrowers will receive payments of up to $250 per year for as many as five years if they stay current on the loan. The payments will be applied to pay down principal on the first mortgage…

…The administration will announce Tuesday a $2,500 upfront payment to servicers that refinance borrowers into the program. Meanwhile, lenders that originate the new loans will receive $1,000 a year for three years, if the loans stays current.

Not bad so far, but wait there’s more, they plan to EXTINGUISH ie FORGIVE the second loans completely down the road…

Legislation to revamp the program is currently pending in Congress. Once those legislative fixes are made, HUD will work on creating a program to extinguish the second liens, the official said.

You read that right, legislative FIXES and  a program to EXTINGUISH second liens. Man, here I am with only one loan. Silly silly MiM. This will pixx people off.

How is it fair or equitable to EXTINGUISH second liens for some people while others struggle along to pay their mortgage on time every month who did not take a second loan?

The ole dichotomy still a problem IMO, we cannot get a bottom in housing until we address these issues but it is not fair the way this is shaping up.  Why can’t these borrowers have their first and second rolled into one and then modify/refi that? That is what most people do when their payments are too high…

I await word on WHO is paying for the EXTINGUISHMENT of the second liens, ie home equity loans…not the taxpayer surely..sorry Shirley…

Will it be ‘voluntary’ ie done through GOVERNMENT controlled CITI or BofA? Is that why we are waiting for HUD to roll it out? and is that why HUD is waiting for ‘legislative fixes’? Is that cramdown as a stick and this is the carrot?

Man shoes keep dropping left and right, a regular Dr Seuss Foot Book happenin’ here…

April 28, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Uncategorized. Comments off.

Update 2: HUD’s Donovan on Housing Plan….JP Morgan Chase implements 3 week foreclosure moratorium….

Update 2: Secretary of HUD Shaun Donovan said today he thinks he has 100 days to get the housing plan rolled out, I have news for him he has three weeks per the banks holding the foreclosure notices:

…Obama administration’s housing recovery plan will accelerate loan modifications for distressed homeowners and will reform the bankruptcy system for foreclosures, Housing Secretary Shaun Donovan said today.

The U.S. Department of Housing and Urban Development wants to create a “comprehensive foreclosure response” before the first 100 days of the new administration is concluded, Donovan said in a speech in New York today.

The new plan will make use of interest-rate reductions, loan extensions and so-called principal forbearance, in which part of a mortgage’s principal is deferred to the end of the loan’s term.

Update: Working families need to be addressed in the Obama Plan, help the middle class too:

“I tried to refi but they won’t give me a new mortgage because I bought at the peak of the market and my house has depreciated,” says Connecticut homeowner James McCusker. “I don’t have the 20 percent equity in the house I need. When they turned me down, they said to me to qualify for any government-related loan program, I need to lose my job.”

“For now, homeowners are stuck,” says McBride. “I think one thing that would be nice to see, is a government program designed to facilitate refinancing for people that have been current on their loans for at least two years.”

CNBC Diana Olick has it: JPMC signs on in a letter to Barney Frank, saying it will hold off on any new foreclosures for three weeks to give Geithner time to announce and implement their mortgage modification/foreclosure mitigation plan…

TICK TOCK TEAM OBAMA….

Home, home again
I like to be here when I can
When I come home cold and tired
It’s good to warm my bones beside the fire

CNBC Breaking Chyron: JP Morgan Chase Announces 3-Week Foreclosure Moratorium; Citigroup Also Announcing Moratorium

Floyd Video Courtesy of Spellitic: This is Time (The Dark Side of the Moon, 1973), from Pink Floyd, live at P.U.L.S.E; recorded at Earls Court, London, in 1994. Roger Waters, one of the the composers of Time, is not in this show.
Current members of Pink Floyd are: David Gilmour (guitars, lead vocals) • Richard Wright(keyboards, secondary vocals, backing vocals) • Nick Mason(drums, percussion);


February 13, 2009. Tags: , , , , , , , , , , , , , , , , , , , , . Cabinet, Economy, Entertainment, Finance, Foreclosures, Housing, Music, Obama Administration, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St. Comments off.

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