The XBroker: Obamas Aggressive Mortgage Recovery Plan is Unveiled

Obamas Aggressive Mortgage Recovery Plan is Unveiled

Details regarding President Obamas $75B plan to stem ‘The Housing Crisis’ are out, or as I shall call them: Obamas Mortgage Economics or MObamanomics.

I openly laud some of the principles behind MObamanomics, such as:

“It will not help speculators who took risky bets on a rising market and bought homes not to live in but to sell” and “It will not reward folks who bought homes they knew from the beginning they would never be able to afford.”

Speculators should understand and realize the risk of riding an asset up and down.

MObamanomics looks to be far more proactive than reactive too, allowing consumers to qualify for assistance before they default on their mortgage (and lenders take a loss).  Though not by design, mandating that a consumer default before receiving help actually incentivizes them to do just that.

This is by no means a comprehensive analysis, rather the parts I can wrap my head around for now.  For what its worth, President Obamas plan is more aggressive than I had anticipated and he should be commended for having the cajones to step out there where many wouldn’t.

Risky loans, these aint no stinkin risky loans…

MObamanomics will allow Fannie and Freddie to restructure and/or refinance consumers with higher (than 80%) LTV loans on their primary residence that are already within their portfolio.  This aspect of the plan will increase the size of the conforming loan pool where consumers can swim…and thats a good thing.

Fannie and Freddie are typically barred from lending above 80% of a homes value or purchase price without Mortgage Insurance attached (that adds significant dollars to ones monthly payment -more on this below-) because mortgages with LTV’s above 80% are deemed risky by ‘the industry’- Heh.  20% LTV’s are risky with poor underwritng standards.   I’m sure that every mortgage that gets modified under this program will come with a borrower that can prove their income, has a solid credit score, a job and a few months worth of payments in the bank…what a novel concept.

Curious to how the plan will accomodate consumers who find themselves in homes worth less than what they owe.  Whether Fannie and Freddie or any lender will restructure a mortgage that is worth 125% of a homes value remains to be seen.

$75,000,000,000 in grease money…

Part of the $75B in The Plan will be used to subsidize the reduction of a consumers mortgage payment to as low as 31% of their monthly income.  The lender will initially need to make enough in concessions to get the payment down to 38%, then the government will match the lender dollar for dollar to get the payment down to 31% of a borrowers monthly income.  Someone did their research here, ‘discovering’ that high payment to income ratios are the number one cause of mortgage defaults.

The methods a lender uses to get borrowers payments down to 38%/31% could involve stretching out the term (from say 27 to 40 years), lowering the rate and/or the principle balance.  How they do this on an individual basis, when numerous loans were bundled together and sold to investment vehicles like mutual funds seems like a challenge to say the least.

The money will come in the form of $1000 when a lender initially agrees to modify a loan with another $3000 available for the next 3 years.  Many pundits will scoff at the idea of feeding the hand that supposedly slapped everyone…but this is 2009, traditional public facing politically correct economic strategies aren’t likely to work.  Traditional back door politics are in order here, gotta pay to get them to play son.  In any case I applaud the transparency.

MObamanomics shall also subsidize the mortgage insurance premiums that are typically required for Conforming loans with LTV’s higher than 80% at no charge to the consumer.  If the consumer defaults, the government picks up the difference above 80.01% of the value of the home.   This is actually a good idea that will directly benefit the consumer.

Alas, if the cost to concede exceeds the cost to foreclose I can’t see a lender using their moral compass over their financial one.

Borrowers who have lost their jobs or make far less than they did when they initially acquired the mortgage, are probably beyond help.

In the end, its still a voluntary program…lenders can cherry pick the situations they want to work with.  I fear the only way to make lenders play above aboard is the real threat of granting bankruptcy judges (with proper education) the ability to mandate certain loan modifications.

$200,000,000,000 in new money

Supposedly there’s $200B on the table (up from $100B) for Fannie and Freddie to lend out, increase their portfolio size and remain solvent.

I suspect there will be stringent underwriting guidelines, as there should be, but I would implore the regulators to consider such crazy ideas like lending up to 103% of a homes purchase price for primary residences.  This sort of forward thinking, IMHO, would really jump start the purchase market.

All in all, I like where MObamanomics is going, it represents some solid first steps. Now there is more than just hope, there is a strategy…

…and there will need to be many more such steps to pick up the slack from the STAGGERING list of lenders no longer lending through various channels…

334. Perfect FHA - Wholesale
333. EquiFirst
332. Residential Loan Centers of America
331. CU National Mortgage
330. Colonial National Mortgage - Wholesale
329. U.S. Mortgage Corp. - Retail
328. First Interstate Financial - Wholesale
327. Realty Mortgage Corp.
326. Vertice
325. USA Home Loans - Wholesale
324. SunTrust Mortgage - FHA Wholesale
323. New South Federal Savings Bank - Wholesale
322. First Federal - Wholesale
321. 21st Mortgage - Wholesale
320. J.B. Nutter & Co. - Wholesale
319. Homebridge Mortgage Bankers - Refinance.com
318. 1st Republic Mortgage Bankers
317. Superior Mortgage Corp - Wholesale
316. Wall Street Financial Corp - Wholesale
315. Fairfield Financial Mortgage Group
314. Chase Prime - Wholesale
313. Sunshine & Madison Mortgage Corp
312. Liberty One Lending
311. Frontier Investment Co.
310. BankUnited - Wholesale
309. Solstice Capital Group - HSBC
308. MortgageIT
307. HCL Finance Inc. - Wholesale
306. LIME Financial Svcs. - Wholesale
305. Mortgage Network Inc. - Wholesale
304. Fortes Financial - Wholesale
303. HSBC Mortgage Corp. - Wholesale
302. CBRE Realty Finance
301. Franklin Bank, SSB
300. Mortgage Lion, Inc. - Wholesale
299. HMS Capital, Inc.
298. American Sterling Bank - Wholesale
297. CTX Mortgage Co. - Retail
296. Equity One Commercial
295. Coldstream Financial Svcs.
294. Banco Popular North America - Wholesale
293. Ace Mortgage Funding, LLC
292. E-Loan
291. Gateway Bank, F.S.B. - Wholesale
290. First Call Mortgage Co.
289. Downey Savings and Loan - Wholesale
288. Prospect’s Metrocities Mortgage - Wholesale
287. ComCor Mortgage - Wholesale
286. Chevy Chase Bank - Wholesale
285. Washington Mutual - Retail and Warehouse
284. Hometown Commercial Capital
283. Mid Atlantic Capital LLC
282. Kemper Mortgage, Inc.
281. Liberty Mortgage Funding Co.
280. Freddie Mac
279. Fannie Mae
278. Pacific Community Mortgage, Inc. - Gold Reverse, Inc.
277. Homecomings Financial, LLC
276. Thornburg Mortgage
275. CSB Mortgage
274. Carteret Mortgage Corporation
273. Accredited Home Lenders, Lone Star Funds - Wholesale
272. Western Residential Mortgage
271. Liberty Home Lending
270. Equipoint Financial Network, Inc.
269. Ideal Mortgage Bankers, Ltd. - Wholesale
268. Silver State Bank - Wholesale
267. Irwin Union Bank & Trust Co. - Wholesale
266. SunTrust Bank Equity Wholesale
265. Wachovia Mortgage, FSB - Wholesale
264. Lehman Brothers SBF
263. IndyMac Bancorp
262. Mortgages Ltd.
261. Wilmington Finance - Wholesale
260. Accredited Home Lenders, Home Funds Direct
259. Assured Lending Corp. - Wholesale
258. Homewide Lending Corporation
257. Vanguard Mortgage & Title, Inc.
256. Chase Home Equity - Wholesale
255. Chase Subprime - Wholesale
254. Evergreen Investment & Carnation Banc
253. Casa Blanca Mortgage/Shearson - Wholesale
252. Guaranty Bank - Correspondent
251. Citi Residential Lending
250. Montgomery Mortgage Capital Company
249. E*Trade Wholesale Lending
248. Shearson Financial Network, Inc.
247. American Bank Mortgage Group - Wholesale
246. AmeriBanc Corp.
245. Washington Mutual - Wholesale
244. Century Bank, F.S.B. - Wholesale
243. Diversified Mortgage, Inc.
242. National Wholesale Funding
241. Centennial Mortgage and Funding, Inc./Award Mortgage
240. Fidelity Home Mortgage Corp.
239. LMI Funding, Inc.
238. Millennium Mortgage - Wholesale
237. Origen Financial, Inc. (Correspondent)
236. CitiMortgage - Home Equity Wholesale
235. Bear Stearns Residential Mortgage
234. East West Mortgage Co. of VA
233. New Vision Residential Lending
232. Washington Savings Bank, F.S.B. - Wholesale
231. Macquarie Mortgages USA Inc.
230. Global Mortgage, Inc.
229. Unique Mortgage Solutions (UMS, LLC)
228. First Franklin - Merrill Lynch
227. First National Mortgage Sources
226. Resource Mortgage (Wholesale)
225. KH Financial
224. Lydian Mortgage
223. OMG Wholesale Lending
222. Saxon Mortgage (Wholesale)
221. Beazer Mortgage Corp.
220. Allpointe Mortgage (Broker Program)
219. Popular Warehouse Lending
218. Allied Lending Corp. (Wholesale)
217. BF Saul Wholesale Lending
216. Community Resource Mortgage
215. Lehman/Aurora Loan Services
214. Residential Mortgage Capital
213. Maverick Residential Mortgage
212. Countrywide Financial Corp.
211. First NLC Financial Services
210. First American Bank (Wholesale)
209. Soma Financial
208. National City Corp. (Wholesale)
207. Heartland Wholesale Funding
206. Homefront Mortgage Inc.
205. PNC Bank H.E.
204. Family First Mortgage Corp.
203. First Fidelity Financial
202. BSM Financial
201. 1st Choice Mortgage
200. Wescom Credit Union
199. Coast Financial Holdings/Coast Bank
198. WaMu (Subprime)
197. First Madison Mortgage
196. Southern Star Mortgage
195. TransLand Financial
194. Secured Bankers Mortgage Company (SBMC)
193. ComUnity Lending
192. Delta Financial Corp
191. BayRock Mortgage
190. Empire Bancorp
189. Option One - H&R Block
188. Citigroup - FCS Warehouse
187. Charter One (Wholesale)
186. Wells Fargo - Home Equity
185. Paul Financial, LLC
184. Webster Bank (Wholesale)
183. Fieldstone Mortgage Company
182. Tribeca Lending Corp. (Wholesale)
181. WAMU Comm. Correspondent
180. Marlin Mortgage Company
179. Countrywide Specialty Lending
178. UBS Home Finance
177. MortgageIT-DB (Retail)
176. Edgewater Lending Group
175. ResMAE Mortgage Corp.
174. Citimortgage Correspondent (2nds)
173. AMC Lending
172. Liberty American Mortgage
171. Exchange Financial (Wholesale)
170. FirstBank Mortgage
169. Bank of America (Wholesale)
168. Diablo Funding Group Inc.
167. Honor State Bank
166. Spectrum Financial Group
165. Priority Funding Mortgage Bankers
164. BrooksAmerica Mortgage Corp.
163. Valley Vista Mortgage
162. New State Mortgage Company
161. Summit Mortgage Company
160. WMC
159. Paragon Home Lending
158. First Mariner Wholesale
157. The Lending Connection
156. Foxtons, Inc.
155. SCME Mortage Bankers
154. Aapex Mortgage (Apex Financial Group)
153. Wells Fargo (various Correspondent and Non-prime divisions)
152. Nationstar Mortgage
151. Decision One (HSBC)
150. Impac Lending Group
149. Long Beach (WaMu Warehouse/Correspondent)
148. Expanded Mortgage Credit Wholesale
147. The Mortgage Store Financial
146. C & G Financial
145. CFIC Home Mortgage
144. All Fund Mortgage
143. LownHome Financial
142. Sea Breeze Financial Services
141. Castle Point Mortgage
140. Premium Funding Corp
139. Group One Lending
138. Allstate Home Loans / Allstate Funding
137. Home Loan Specialists (HLS)
136. Transnational Finance Wholesale
135. CIT Home Lending
134. Capital Six Funding
133. Mortgage Investors Group (MIG) - Wholesale
132. Amstar Mortgage Corp
131. Quality Home Loans
130. BNC Mortgage (Lehman)
129. First National Bank of Arizona
128. Chevy Chase Bank Correspondent
127. GreenPoint Mortgage - Capital One Wholesale
126. NovaStar, Homeview Lending
125. Quick Loan Funding
124. Calusa Investments
123. Mercantile Mortgage
122. First Magnus
121. First Indiana Wholesale
120. GEM Loans / Pacific American Mortgage (PAMCO)
119. Kirkwood Financial Corporation
118. Lexington Lending
117. Express Capital Lending
116. Deutsche Bank Correspondent Lending Group (CLG)
115. MLSG
114. Trump Mortgage
113. HomeBanc Mortgage Corporation
112. Mylor Financial
111. Aegis
110. Alternative Financing Corp (AFC) Wholesale
109. Winstar Mortgage
108. American Home Mortgage / American Brokers Conduit
107. Optima Funding
106. Equity Funding Group
105. Sunset Mortgage
104. Nations Home Lending
103. Entrust Mortgage
102. Alera Financial (Wholesale)
101. Flick Mortgage/Mortgage Simple
100. Dollar Mortgage Corporation
99. Alliance Bancorp
98. Choice Capital Funding
97. Premier Mortgage Funding
96. Stone Creek Funding
95. FlexPoint Funding (Wholesale & Retail)
94. Starpointe Mortgage
93. Unlimited Loan Resources (ULR)
92. Freestand Financial
91. Steward Financial
90. Bridge Capital Corporation
89. Altivus Financial
88. ACT Mortgage
87. Alliance Mortgage Banking Corp (AMBC)
86. Concord Mortgage Wholesale
85. Heartwell Mortgage
84. Oak Street Mortgage
83. The Mortgage Warehouse
82. First Street Financial
81. Right-Away Mortgage
80. Heritage Plaza Mortgage
79. Horizon Bank Wholesale Lending Group
78. Lancaster Mortgage Bank (LMB)
77. Bryco (Wholesale)
76. No Red Tape Mortgage
75. The Lending Group (TLG)
74. Pro 30 Funding
73. NetBank Funding, Market Street Mortgage
72. Columbia Home Loans, LLC
71. Mortgage Tree Lending
70. Homeland Capital Group
69. Nation One Mortgage
68. Dana Capital Group
67. Millenium Funding Group
66. MILA
65. Home Equity of America
64. Opteum (Wholesale, Conduit)
63. Innovative Mortgage Capital
62. Home Capital, Inc.
61. Home 123 Mortgage
60. Homefield Financial
59. First Horizon Subprime, Equity Lending
58. Platinum Capital Group (Wholesale)
57. First Source Funding Group (FSFG)
56. Alterna Mortgage
55. Solutions Funding
54. People’s Mortgage
53. LowerMyPayment.com
52. Zone Funding
51. First Consolidated (Subprime Wholesale)
50. SouthStar Funding
49. Warehouse USA
48. H&R Block Mortgage
47. Madison Equity Loans
46. HSBC Mortgage Services (correspondent div.)
45. Sunset Direct Lending
44. Kellner Mortgage Investments
43. LoanCity
42. CoreStar Financial Group
41. Ameriquest, ACC Wholesale
40. Investaid Corp.
39. People’s Choice Financial Corp.
38. Master Financial
37. Maribella Mortgage
36. FMF Capital LLC
35. New Century Financial Corp.
34. Wachovia Mortgage (Correspondent div.)
33. Ameritrust Mortgage Company (Subprime Wholesale)
32. Trojan Lending (Wholesale)
31. Fremont General Corporation
30. DomesticBank (Wholesale Lending Division)
29. Ivanhoe Mortgage/Central Pacific Mortgage
28. Eagle First Mortgage
27. Coastal Capital
26. Silver State Mortgage
25. ECC Capital/Encore Credit
24. Lender’s Direct Capital Corporation (wholesale division)
23. Concorde Acceptance
22. DeepGreen Financial
21. American Freedom Mortgage, Inc.
20. Millenium Bankshares (Mortgage Subsidiaries)
19. Summit Mortgage
18. Mandalay Mortgage
17. Rose Mortgage
16. EquiBanc
15. FundingAmerica
14. Popular Financial Holdings
13. Clear Choice Financial/Bay Capital
12. Origen Wholesale Lending
11. SecuredFunding
10. Preferred Advantage
9. MLN
8. Sovereign Bancorp (Wholesale Ops)
7. Harbourton Mortgage Investment Corporation
6. OwnIt Mortgage
5. Sebring Capital Partners
4. Axis Mortgage & Investments
3. Meritage Mortgage
2. Acoustic Home Loans
1. Merit Financial

List courtesy of The Mortgage Lender Implode-o-Meter

Comment balloon 79 commentsJeff Corbett • February 19 2009 01:38AM

Comments

Jeff - thanks for your thoughts on this. It IS an impressive plan and it will be interesting to see how it is implemented, and IF it will work. Guess I still don't trust that banks are going to be cooperative with regard to making this work. And given the difficulties they seem to have with adminstrative procedures, adn more limited staff, one has to wonder how they will handle this restructuring. But I'm pleased to see a move in teh right direction. Scary list of banks.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) over 10 years ago

Holy cow, that list freaked me out.  Somehow it looks like the plan is too little too late, but I sure hope it helps.

 

Posted by Fran Gatti, Managing Principal Broker - RE/MAX Integrity (RE/MAX Integrity) over 10 years ago

Did they dismantle the Community Reinvestment ACT?

If not, then this problem isn't fixed.

Posted by Tom Burris, Texas/Louisiana Mortgage Pro - 13 YRS Experience (NMLS# 335055) over 10 years ago

Yes, Jeff- the interesting part will be seeing how many banks cooperate fully with this plan.  Hopefully, this will translate into real help for so many desperate homeowners.  I know many in Southern California would need 200% LTV loans to refinance!  What an impressive list of banks.  Great post.

Posted by JB Brookman, High School Senior Portrait Photographer (JB Brookman Photography) over 10 years ago

Jeff - Thanks for your analysis. The list of lenders that are no longer lending is troubling. It will take some work to fill the void.

Posted by George Bennett, Inactive Principal Broker, GRI (Inactive) over 10 years ago

Jeff, that's a great summary.  I'm still looking at the plan too, and it's scope and breadth is staggering.  Much like you have already, I've also come to the conclusion that this is likely to be a very tricky bit of business in modifying loans especially since many loans were "packaged" and sold as CDOs to who knows where.  While this is largely voluntary, banks who took TARP money will be compelled to participate in this plan and, on March 4, we'll learn how much "compelling" the government is likely to request, which is why some of the largest banks on the S&P and DOW took an enormous drop today.  While this is not a perfect plan, it's the first plan I've seen that attempts to deal directly with the consumer, and I'm extremely hopeful that this support will help us find a true bottom to the real estate market.  Fingers crossed!  Thanks again for the great summary and your cogent thoughts!

Posted by Grace Hanamoto, Quality, Knowledge, Professionalism, Experience (Intero Real Estate) over 10 years ago

It's an amazing list. I know that the number of lenders on the rolodex has decreased dramatically, but this is an amazing way to see it.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) over 10 years ago

Great analysis and synopsis!

Question:  How is that 31% ratio going to work for all of the "stated income" folks out here (agents/brokers) whose income is variable, if not unpredictable? It's the same issue with 'cram downs', i.e., commissioned people don't have regular, consistent income! Seems to me that many in our own ranks are going to get the short end of the stick - again.

Randy Hooker - Dreamcatcher Realty - Arizona Real Estate

Posted by Randy Hooker, Gilbert, Chandler, Mesa, Queen Creek (Dreamcatcher Realty / Greater Phoenix Area) over 10 years ago

Great post and for all who do not know you can keep a watchful eye on the banks that are soon to be added to this list at http://www.ml-implode.com more than a dozen other banks are currentluy listed to the ailing/watch list.

Posted by Kevin M. Rhodes / Wholesale Lender / Continental Home Loans over 10 years ago

Jeff, I sure hope this new plan works.  I'm hopeful.  I loved it when he said that this money was only for those that purchased homes within their means at the time.  I finally feel like we may be able to dig out of this crisis we are in.  Time will certainly tell.  The list of lenders is staggering.  I"m not surprised, however.  I'm glad to see many of the shady lenders have been forced out of business.  Hopefully, we are skimming the rotten Realtors out as well :)

Posted by Elizabeth Cooper-Golden, Huntsville AL MLS (Huntsville Alabama Real Estate, (@ Homes Realty Group)) over 10 years ago

I applaud the plan and the pro-active approach. No one may have all the answers but...at least we are being aggressive and are taking a direct actionable and TRANSPARENT approach --- see www.Whitehouse.gov for daily updates. Your analysis and your LINKS are fabulous. Thank you for sharing and taking the time to share your insight.

Posted by Pamela STETSON, I would love to help you buy or sell your home! (Berkshire Hathaway HomeServices Abbott Realtors) over 10 years ago

Jeff, thanks for your analysis on this. As you said and I have come to the conclusion, it will still be up to the banks to comply. I thought it was interesting when they all appeared ( the top ones) and said at the Senate hearing how much they had used in loan modifications.

I was surprised. I think we will feel it on the street, if you catch my drift.

Posted by Missy Caulk, Savvy Realtor - Ann Arbor Real Estate (Missy Caulk TEAM) over 10 years ago

I did not realize the length of the list.   Amazing.   I very informative piece and one of the best I read on this subject.

Posted by Epcon Communities Epcon Columbia (Epcon Columbia, SC) over 10 years ago

I agree with many of the other respondants, I just have lost faith in the banks to implement any of this effectively.  The banks have had a good two years to get their act together with regard to responding efficiently to short sales and foreclosures and it's in their best interest to do so, and they have not respondedHow will this be any different?

Posted by Tiffany Cloud (HomeSmart Real Estate) over 10 years ago

Jeff:  wow, what a list!  I tend to just block out the news, but this is a subject that I need to be paying more attention to this week.  I like the new economic terms, and I hope it works.

Posted by Christine Bohn, The Bohn Team, Gainesville FL (RE/MAX Professionals) over 10 years ago

Sorry I don't see it helping anything,  putting Fannie and Freddie in charge when they were the organizations that got us in this mess in the first place is a mistake. What happened to the first chunk of change we gave them? This is just throwing good money after bad and doesn't help those who really deserve the break.... Those who have not defaulted on their loans and those who had done so due to real hardship...

Posted by Gary Ward (Advantage Chatuge) over 10 years ago

Jeff -

Just looking at the list is incredible.

Again, this will not help everyone, but I like the initiative!

DEAN & DEAN'S TEAM CHICAGO

Posted by Dean Moss, Dean's Team Chicago IL Real Estate Team (Dean's Team - Keller Williams Realty Partners Chicago IL) over 10 years ago

Nice post Jeff! Good summary, and this one definitely seems to have some merit. I like his restrictions to this bill, and maybe this is more of assistance now, and education for how people can avoid this situation moving forward. If that's what it is trying to do, then it's probably one of the best proposals to date. Thanks for summarizing!

Posted by Craig Andriulli, Vice President NMLS #212830 (Bond Street Mortgage NMLS #191351) over 10 years ago

Holy cow Jeff what a resource list of the X'd lenders...pardon the pun!

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) over 10 years ago

Jeff great post and good information, its nice to see some solid pro active moves by the Government and i to applaud not only the President but Congress for taking swift and decisive action.

Posted by Christopher Bonta, Realtor, Integrity and Honesty (The Bean Group) over 10 years ago

The list is incredibly long.....hopefully Obama's plans are not too late to accomplish the very hard task at hand.  Thanks.

Posted by Tina Allen (Exit Realty Tri-County) over 10 years ago

This is a very thoughtful post and I am hopeful that this will be implemented in a way that will improve the current situation.  There are still a lot of details which remain and I am optimistic that this will be just the typpe of thing that will spur the recovery.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) over 10 years ago

Finally - A Congress and A President who are compelled to help America and her people!  There will be many bumps along the road, but at least we can see a small light at the end of the tunnel!

Posted by Steve over 10 years ago

I'm concerned over how this could affect property values, since could only prolong the inevitability of these default borrowers getting back in the same situation.  This "plan" combined with the recently signed stimulus package is costing taxpayers waaaay too much money, and there's no historical precedent showing this type of government action will do what it's intended to do.

Posted by Eric Boyd, FL Licensed Real Estate Broker / Property Manager (Step One Realty, LLC, 904-469-6335) over 10 years ago

Well, here I sit trying to rob Peter to pay Paul just to keep my home. This "stimulus" won't stimulate me, I have a non-conforming loan! So, I get to to either steal from my retirement funds to keep my home or walk from my mortgage while others get a break just because of the price they paid. WHAT A COUNTRY!

Posted by Don Gockel, Realtor, Broker, GRI - Antelope Valley Real Estate (NextHome The Gockel Group - Palmdale Lancaster Quartz Hill -) over 10 years ago

Thanks for this not being another lousy excuse to bash Obama. If he fails we fail and thats not acceptable. I think their is a lot of positive things going on as well.

Posted by Shane OnullGorman, Eau Claire Wisconsin, Real Estate Agent & Realtor- Buy or Sell (Eau Claire Realty, Inc.) over 10 years ago

Jeff, this is more info than I've heard from anyone else on the stimulus package. Thanks for the great detail. Incredible list of lenders who have gone away.

Posted by Sharon Alters, Realtor - Homes for Sale Fleming Island FL (Coldwell Banker Vanguard Realty - 904-673-2308) over 10 years ago

I had a thought...the federal stimulus MONEY for the bail out..do we borrow it from China or they already have their own problems so we just fire up the printing presses to flood 900 billion more paper currency into the market? Or if tax revenues are not coming in to Washington to turn around and use to start the economic recovery fire..where do we find the money? Visa and MasterCard?Living on the Canadian border makes me wonder about the value of the American dollar. Inflation and a weaker dollar are part of the financial teeter totter too..especially if we get asked for the next series of bail out packages because in haste the first ones missed the target needing to be hit.

Posted by Andrew Mooers | 207.532.6573, Northern Maine Real Estate-Aroostook County Broker (MOOERS REALTY) over 10 years ago

Jeff, I really appreciate you weighing in on the details of the plan.  The talking heads can get quite confusing and many times lack credibility because of their own bias so it really helps to read your thoughts.  That list is SO bad.

Posted by Diane Aurit, Lake Norman Real Estate (LKN Realty, LLC) over 10 years ago

It will be interesting to see what happens, he is definitely very proactive. 

Posted by Heather Fitzgerald, REALTOR Greenwood Indiana Real Estate (REALTY WORLD-Harbert Company, Inc.) over 10 years ago

The cram-down provisions that are being tossed around could very well destroy the US housing market for the next few years... that wouldn't be good. 

Posted by Lane Bailey, Realtor & Car Guy (Century 21 Results Realty) over 10 years ago

Jeff... Great synopsis.  I agree that the only thing that might force the banks to "play" is the threat of the bankruptcy judges wresting control from them.  I've been watching "mortgage implode" since early 2006, so I'm not surprised at the list at all.  Nevertheless, it's definitely scary!

Posted by Bill Blair, Covington Georgia Realtor Covington Living Homes (Coldwell Banker Realty) over 10 years ago

Jeff,

Thanks for a great article. That list is an eye opener, but certainly a statement of the times. I just hope that we hurry up and hit rock bottom so we can get through the "flatline" times that are predicted before the upswing happens.

Posted by Steve Blehl (The Home Depot/Referrals to Geba Realty) over 10 years ago

as a homeowner, and working middle class person, (both husband & I have worked for over 20 years solid)we are wondering what's best course of action? It seems sad but best to get out.  our home has depreicated $50,000 in the last year? We have paid our payments for the last 8 years on time, fixed conv. loan..then hubbys income went down and we struggled last few months using up savings. banks would not modify loan our loan a few months ago ?! we have near great credit. but todays market we could buy more home for less than trying to keep this- we are not alone I know so many in our situation, especially here in AZ. Its like a lose lose situation, housing has depriciated soo much already, Its a bad time, when you to have to cut losses & ruin excellent credit ratings.  But they couldn't modify enough to make it worth keeping! and a move to equal style home would now save us $1500 a month! its like a bad poker hand "gotta know when to fold them" Sad truth is the plan is to little to late for a large group of homeowners. I support & applaud the president. maybe it will help some people in some areas though.  At least he's trying to make things better.

Posted by Joy Frink (none) over 10 years ago

This is a great post and your opinion is well noted.  I recently worked on a loan that the buyer was rate concise.  I went with a lender I don't normally use because they had the lowest rates I could find.  We got all the way to the closing department to prepare for closing when the lender laid everyone off, they pushed my closing back 1 week but did not give me an exact time frame.  I researched the company and they were added that day to the "lender's to watch" list on the mortgage implode website.  Needless to say, I decided to pull the loan and place it with a trustworthy lender.  Scary stuff to deal with! 

 

Posted by Kristina Yorke (www.LowestHomeLoanRatesinFL.com ~ FL FHA Mortgage Expert ) over 10 years ago

Of course only time will tell but this first step is not aggressive enough. The gov't, banks and Wall Street, who where the main culprits, will have to do much more to help stem this huge tidal wave from crashing our economy even more. Expect to hear the word "trillions" even more in the coming months.

Posted by Rick Dean (Bank of America) over 10 years ago

This plan, like all of his other plans, is bad news. Once again we reward failure and punish success,  thereby increasing failure and ensuring no success.

People like me who are fulfilling our obligations are paying for those who don't. My mortgage is current - I also drive a nine year old truck and watch a twelve year old TV (when I have the time). I would love to buy a nice new boat but don't have the cash right now.

Meanwhile I go to list short sales because the owners can't pay their mortgage.  The owners DO have brand new cars, 60" TV's, new boats, RV's and other toys.

And President Obama wants me to foot the bill for this. BULL!

Posted by Robin Turner, Robin Turner (Happy House Real Estate) over 10 years ago

Hope congress and the banks get behind this plan. Finally some help for the average Joe and not just the fat cat wall street dudes

Posted by Michael Eisenberg, Bellingham Real Estate Guy (eXp Realty) over 10 years ago

Great way you broke it all down. That list of banks is amazing. Where did you get that?

Posted by Debi Braulik, Selling Maple Valley to Fife WA Homes For Sale (www.roundrealestate.com) over 10 years ago

Jeff, Great information, thank you!  I agree with your opinion and outlook

Marnie

Posted by Marnie Schooling (Virtual Sales Assistance) over 10 years ago

Awesome Jeff, as usual - but the issues at the core are the fact there is not a "mandatory" clause built into it.  I was a bit taken back to see that it is still chosen and agreed upon at the "injured" bank level.  The Fireworks show is just starting. 

The other issues with all of the loan processors back in 2007 getting laid off and then the flood of foreclosures resulting from the sub prime market, definitely overwhelmed the current staff at the banks.  They are not increasing their numbers, but still cutting.  On Most REO properties, even though the number has shrunk in the Santa Clarita valley from 117 last week to 86 today, when offers are accepted it usually takes over 2 weeks to get escrow open.

This should throw a 20 pound crecent wrench into the machine!!!

Be Safe Brother - Keep preaching the Truth.

Posted by Connor T. MacIvor, SCVnest.com - (888)SCVnest (RE/MAX of Valencia CA - Paris911) over 10 years ago

Let me get this straight:  Washington got their greasy, we need voters so let's give them all a home hands into the market and a confused nation looks to the same people to fix it? LOL.  That's funny.



Posted by Jessica Horton Jessica Horton Realty, Jessica Horton: I'm not #1... You Are! (Jessica Horton - Jessica Horton & Associates) over 10 years ago

It's definitely a lot to digest and I haven't gotten my head completely around all of it (nor do I think I really ever will because I don't even think those who voted for it understand it). But on it's face, it seems like a mere band-aid. I hope I'm wrong.

Joy, who commented above as a homeowner is the perfect example of where the problem lies. We have to have help with the intermediary step...which is a better streamlined short-sale process!!

 

Posted by Colleen Fischesser Northwest Property Shop, A Tradition of Trust in the Pacific NW since 1990! (RE/MAX Advantage | Managing Broker) over 10 years ago

Hey all...thanks for the thoughtful comments...

This Plan isnt for everyone and certainly has holes, strings and red-tape...  There are many people who bought their homes with prudence, have never missed a payment and otherwise managed their personal financial situation wisely.  I understand their aversion to any such bailout. Unfortunately the problem is too big to ignore and doing nothing will have far worse implications than doing something.

This was not meant to be a politically charged post.  Im pretty politically agnostic and choose to support whoever our President is, if I think he/she screwed up, ill say so, if I think they did good, ill say so.

I look at whats coming down the pipe with this plan and like how its taking shape.  Its atypical compared to how ive seen these things go down before and I like that. Is it ideal? far from it, but in many ways its a different approach...something different needs to be attempted.

The one aspect that I really dont like is the $200B check into Fannie and Freddie...I fear this is throwing too much good money after bad.

What concerns me more than anything is that we remedied the superfluously valued companies and wealth that comprised the dot com bubble burst with the superfluously valued Mortgage Backed Security (Housing) market, which we are now remedying by printing what will amount to be Trillions of dollars in 'new' money. 

There is sooo much new money in the system that when this economy does rebound, expect hyperinflation in a magnitude of which we've never seen.  Everyone had best be preparing to get real lean and efficient with their lives and jobs, moving to sectors where innovation reigns supreme, looking for ways to increase your earning power.

Jessica-

Your comment is bemusing in that you LOL the plan while offering no suggestions as to how you might remedy these issues...and you work in the industry that this plan is all about.  Who do you suggest create and implement a proper plan to curb these issues from spiraling completely out of control?

The way I like to analogize it is Washington granted the zoning rights to build the playground where the Lenders threw in the pitchforks for consumers, brokers and agents to stick themselves with...and they did.

Blame can be distributed pretty equally.  I owned a mortgage brokerage, real estate brokerage and construction outfit which afforded me a very unique view of the situation.  

Most consumers wanted to know what they qualified for, be damned the ramifications.  Realtors would Hawk over mortgage originators demanding they get their pre-qual letters NOW for the purchase price they demanded or they were going to a lender who could work faster, do it better etc etc.  Brokers crammed square pegs into round holes, anything to make a deal work.  Builders built, built, built...

Everyone, even you, sold The American Dream of homeowneeship down peoples throats.  So its up to everyone, especially those who work in this industry, to not sit back and 'LOL' but put some real thought into how to remedy these problems. 

In that spirit I attempt to understand the ramifications that people far more qualified than me or you are getting ready to push through our economy.  The better one understands the terrain, the easier it is to navigate...

Like or hate it, you better understand it...cause its going to effect you.  Better yet, do something about it.

Posted by Jeff Corbett (BoomTown) over 10 years ago

Jeff:

"Realtors would Hawk over mortgage originators demanding they get their pre-qual letters NOW for the purchase price they demanded or they were going to a lender who could work faster, do it better etc etc.  Brokers crammed square pegs into round holes, anything to make a deal work.  Builders built, built, built..."

I haven't any clue what type of Realtors you hang out with, but I did no such thing. 

"Everyone, even you, sold The American Dream of homeowneeship down peoples throats.  So its up to everyone, especially those who work in this industry, to not sit back and 'LOL' but put some real thought into how to remedy these problems. "

Excuse me?  I cant even begin to count the times that I've told buyers not to stretch themselves and that they would be better off renting and/or waiting.  So, unless you've been following me around and have me on tape telling people that homeownership is their ultimate right (it's not - despite what congress did) - just back up and stop trying to throw around blanket statements for all people.

I do plenty about it.  I vote.  I help create jobs through a corporation and LLC.  I take the time to educate my clients about whether they should or shouldn't buy or attempt to place their home on the market.  I implemented alternative models to help ease the pain of my sellers and still provide full service. I stand up and call a spade a spade.

Posted by Jessica Horton Jessica Horton Realty, Jessica Horton: I'm not #1... You Are! (Jessica Horton - Jessica Horton & Associates) over 10 years ago

Thanks Jessica....much better than LOL

Posted by Jeff Corbett (BoomTown) over 10 years ago

WOW what a report.  I was wondering if you had the stats on how many homes are NOT in default/foreclosed.  What are the stats of people who ARE paying their mortgages on time, and aren't jumping on the re-fi tidal wave?  How many home owners are current with their payments?  This would be interesting to know, don't you think?  Is it 10% of the overall market that's in the toilet -- then that would mean 90% are NOT doing badly.  But, we all follow the "if it bleeds it leads" mentality.  There are a lot of people who think that tossing money at anything will be the end all, be all solution.  Most people know that there is a time to cut back, and not cast pearls before swine.  I'm just saying . . . is all.

Mom taught me that when you point your finger at someone, there will be three pointing back at you!  So when you toss out all the gloom and doom stats, and then the bail out money that's going to be spent, no one seems to talk about the higher percentage of the equation; those that are paying their mortgage on time and won't be looking at foreclosure.

There used to be the Emperor has no clothes.  I think, the 21st Century re-do of that story should be: The Golden Parachute Has a WHOLE!

Posted by Carla Muss-Jacobs, RETIRED (RETIRED / State License is Inactive) over 10 years ago

I think it is a great start, if only this had happended 6 months to a year ago...

Posted by Mike Slager - Holland, MI Realtor (Greenridge Realty) over 10 years ago

What a huge report.  I agree with many of the other folks on this list I truly don't have faith in the banks and I am not happy about fannie and freddie getting more of our dollars but I am going to try to keep a positive outlook on the market as a whole.   I would add my name to those posters  who would like to see what percentage of owners are keeping up with their mortgages

Posted by Andrea Curtis United Country Premier Properties Certified Military Relocation Professional, U C INTERNATIONAL DIRECTOR OF MILITARY PROPERTIES (United CountryPremier Properties) over 10 years ago

Jeff: Thanks for the synopsis. My only question is how much money are they planning on printing? I always thought that printing money never solved any economic crisis. In fact, I'm pretty sure I learned that in a college economics course!

Posted by Paul McFadden, Pest Control, Seattle, WA. (Paratex) over 10 years ago

National Foreclsure Rate = ~2.97%

Mortgages = or greater than 30 days late = ~6.99%

Obviously regional/local %'s will be much higher and lower.

While these %'s may not seem crazy high, the fact that banks lend at 30+ times their capital holdings and mortgages return relatively thin margins makes these %'s somewhat skewed at first blush...appearing to be 'not so bad'...

Posted by Jeff Corbett (BoomTown) over 10 years ago

The problem may be too big to ignore, but that doesn't mean that what the government is doing is worthwhile. Government borrowing to fund these and the other bailout programs creates a burdensome debt load that will affect the economy for decades. I would much prefer to see government stimulate the private sector and encourage job growth than for it to create an even larger bureaucracy and the inefficiencies that accompany it.

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 10 years ago

Jeff, I have yet to have timw to digest allo f this. I have been way too busy selling real estate. The foreclosure rate in my market, Poinciana FL, is a little over 15%. That's 1 in 7 if you do the math. AND it's rising rapidly. 

Posted by Bryant Tutas, Selling Florida one home at a time (Tutas Towne Realty, Inc and Garden Views Realty, LLC) over 10 years ago

Wow... good information.  Too bad other areas of the country have such an impact on my area which is doing pretty well...  It goes to show you how much we all affect each other.

Posted by League City, TX - Worrell Team, REALTORS, GRI, CNE (RE/MAX 1st Class) over 10 years ago

 

http://www.cnbc.com/id/15840232?video=1039849853 

Watch this video from the floor of the Chicago Trading Floor and get a clue!  These are common people. Come on Mr. Transparency.  The only thing this is,  is pure statist NANNYISM to the Nth degree!  "This Plan isn't for everyone and certainly has holes, strings and red-tape."  Holly crap, you should be one the media shills for the Obama united socialist's team. People like you , and the Socialist pork mongers looking for handouts at NAR are the real problem.  People not willing to look at, speak out and find the real problem.  It's right in front of our noses.  It's in our history books. Private Centralized Banking.  I mean banking in the relm of companies that make B of A seem like a pimple.

The fact that you give creedence to this plan of total centralized control,  proves that you are as brainwashed as the general American population.  First off, The mortgage and real estate issue is a side note, small potatoes, compared to the real monster of the entire Draconomicon "fractional reserve" banking scam.  Private Central bankers from around the world run your life, my life and Obama's life and will continue to do so until you figure out  the real issues at hand.

Nineteenth-century English economist Thomas Tooke correctly stated that "free trade in banking is tantamount to free trade in swindling."

Mortgage Debt, consumer debt, World debt, all debt in general has exceeded the world's capacity to repay it, ever!  If our housing or mortgage markets, per main stream media, caused this collapse, caused this recession...explain how Spain, England and Italy were having collapsing Mortgage markets over two years AHEAD of us?  Read some European Blogs and news.  Explain what's happening in Eastern Europe...Russia. I can tell you that it does not have anything to do with Fannie Mae or Freddie Mac  fraud and abuse. Investigate the IMF and the World Bank...check out the default problems there..TRILLIONS. That's our Tax Dollars too. This my friend is an issue far bigger than stemming mortgage defaults.

First, educate yourself on the swindle that is "Fractional Reserve" or leveraged asset gambling with numbers like 70 to 1. Until you get that,  you simply do not get it. You can talk about this program or that program until you are blue in the face...it it's nothing but doublespeak for the mindless masses.  It's a distraction to the real issue. It's further loss of your personal freedoms and rights being given to the power of the state.  It's pure wallpaper over a hole in the house.

It's as simple as follow the money.  So follow the Money. Follow the monster in the thick of it all. The American Branch of a larger Centralized Bank Cartel, the Federal Reserve.  Lets look at facts that can not be denied and should have been by any normal investigative proceedings, investigated.

#1.  The PRIVATE central bank, the Federal Reserve is Not Federal. It is a PRIVATE bank. Research it.  Over 98% of all Americans believe the Federal Reserve to be FEDERAL. It is not.  Some will say is quasi Federal IT IS NOT. Man talk about scammed!

#2.  We do not KNOW who the controlling Stock OWNERS of the federal Reserve are... If you can get me a list, bring it on.  We do not know if they are even American Citizens.  Why is this. Why is only Ron Paul calling for the names and all the other Supposed people of CHANGE doing as their master tells them?

#3. Since it's inception on 1913, the Federal reserve has never been audited?  No figure that one. Joe Realtor or Joe American have hd lots of audits.

#4.  Since its inception the Federal Reserve, a private cooperation has never paid any type of tax based on gains? Weird?

#5.  The Federal Reserve ceased providing total amounts of M3 as of 2006. they say its the same as M2? Do you know what M2 or M# is?

So you say "hey i don't care"..."the programs sound great"..."spread some more money", I just need to sell a house or make a mortgage.  that's what they are really counting on. You continued apathy and ignorance.  Your continued fire hose swallowing of full blown socialism.  With a smile of course.

A person does not really have to be a brilliant economist to understand this real fraud.  Don't let them fool you. This is a very simple hoax when you get down to it. In fact, Ponzi Schemes like Madoff are as common as our own Social Security program and our own Government.  But no one is arrested for running that house of cards.  Banks run Ponzi Schemes.  If you understand the Madoff deal, then you understand this Economic Collapse.

What we need Mr. X Broker, Mr.Mortgage, Mr. Transparency, Mr. look out for the little guy...is leaders like yourself,  to take up the real issue,  instead of lobing softballs out there on whether Obamba's - NObamanomics is going to do anything. 

 

Posted by Mark Eibner, CRS, ePro,GRI (Metro Brokers Realty Oasis) over 10 years ago

An epic comment Mark.

Some of your insinuations about how I feel about this plan in particular, our overall government run economic system and what my personal political beliefs are, are speculative, assumptive and pretty misguided.  

When writing in a public forum, especially about topics with economic and political ramifications, one always risks alienating a certain sector of people.

Shredding this plan would have gotten me labeled as a conservative idealist.  

Unequivocally supporting this plan (or in your case, not shredding it) would get me labeled a 'Socialist pork monger'. 

I suppose I could've approached this topic from 50,000 feet and undressed American as well as the worlds economic system from an idealist mindset similar to yours, but thats a different genre for a different day in a differnet venue.  

This post was intended to be a practical, relatively easy to digest response to news released yesterday regarding what is going to happen in the real world rather than speculate Armageddon.

If you read it again as well as my comment above you should notice that I'm not nearly as bullish as you insinuate.  As you know im not one to pull punches or acquiesce .  I 'made my name' and 'established my voice' years ago as a staunch opponent of the systemic deceipt that got us to this point.

The ironic thing is that I agree with many of your points about private centralized banking, fractional reserve banking (why a small # of defaults leads to insolvency) and the lack of transparency or other shrouded moves like the abolition of M3 (M2 + large time deposits, and other components of the US money supply). 

Spain, England etc etc reached their bottoms 2 years before us becasue they didnt print money like we do.

I can only assume that you feel the need to call me out on the matt and presumptively talk over my head are due to strong convictions for the subject matter mixed with some elevated testosterone and/or lack of quetiapine in your diet.

None the less, I appreciate your passion and overall acumen level...the world needs more like you.  

Tell John I said hello :)

Posted by Jeff Corbett (BoomTown) over 10 years ago

By the way, I think doing away with the $15,000 tax credit is a travesty...

Posted by Jeff Corbett (BoomTown) over 10 years ago

Nope- it's times like these that leaders-people in respected positions of trust by merit and not policies- need to step up and lead the lemmings...not wanting to be labeled a left or right leaning has nothing to do with revealing the TRUTH to people. The truth my friend is universal.

Posted by Mark Eibner, CRS, ePro,GRI (Metro Brokers Realty Oasis) over 10 years ago

Very powerful post Jeff.  Makes one (it did me) for a while and ponder things.

Posted by Chris Olsen, Broker Owner Cleveland Ohio Real Estate (Olsen Ziegler Realty) over 10 years ago

Bad behavior encourages more bad behavior. All this does for me is make me want to stop paying my bills and retire on the government trough. The only reason I don't is I am still a PROUD, HARDWORKING AMERICAN. The banks are being bailed out for their loss on the same loans that these folks are getting bailed out for the very same loans now that is double dipping. What a country.

Posted by Charles Stallions, 800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl. (Charles Stallions Real Estate Services ) over 10 years ago

All I can say is it is an attempt to do something to stop the falling prices and foreclosures if it makes the consumer feel good again and we can get back a bit of confidence I willing to gamble.

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) over 10 years ago

Good post Jeff. 

I am personally happy that the new administration is doing something.  Obama inherited a one-legged table and this is part of the process to adding three legs to stablize the damn table.  Only time will tell if these are the right legs, but waiting to see if the forth leg would fall off wasn't worth waiting around to see.  While I don't agree with everything in this plan, it's the best one we have so far.  If all the people in this great country of ours who are against this plan could come up with something better - I'm sure the administration would love to see the proposal.

I have personally seen friends use their home as ATM machines in the early 2000's (vacations, cars, boats, cars, etc) and it looks like they'll be getting bailed out of their poor financial decision-making now that they've maxed out their houses with LTV's of 120%+ and reckless option ARM's.  I don't agree with it, but I don't think a perfect plan exists yet.  I'd like to see a plan that evaluates what a borrowed used the HELOC for and if he's going to gelp help now, he should have to give up his toys that were purchased during his spending spree BEFORE getting a loan mod.

Here's hoping that these banks start lending because even with the bad economy - strong, qualified buyers are out there!

Posted by Anthony Rael, RE/MAX Alliance (RE/MAX Alliance) over 10 years ago

Now see X...

I knew if I just sat back and waited someone like you would jump in and break it all down into bite size pieces I can live with. Thank you :)

TLW...ROAR!

Posted by "The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW. (President-Tutas Towne Realty, Inc.) over 10 years ago

I'm grateful for your post because it does shed light on the PLAN...However, I feel I need to continue to read as much as I can before I speak on the topic so I don't look like an idiot!  I just can't wrap my head around it...

Kewl AR skin by the way!

Posted by Natalie Langford, Winchester, VA Real Estate (Realty Negotiations) over 10 years ago

Whoa....

Implode-O-Meter...Indeed...Great little site.

P.S. Have you seen my head laying around in the Rain somewhere? :)

TLW...ROAR!

Posted by "The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW. (President-Tutas Towne Realty, Inc.) over 10 years ago

Hi Jeff  I don't know which I enjoyed more....your original post or your response to certain "critics". I will say this....way to stand behind your post! I thought it was fair and a great effort to present an unbiased break down of a very complicated topic. Most of us are still wrestling with sorting out a simple explanation to present to our clients and appreciate your presentation of  what went down yesterday. Thanks!~

Posted by Suzanne Gallegos, Realtor - Salt Lake City, Utah Homes (Equity Real Estate - Advantage) over 10 years ago

I think I am enjoying reading the repsonses as much as the original post.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 10 years ago

Jeff, you've deftly handled your critics and remained above the fray ... bravo!

 

I'm afraid of socialism and communism and it seems we are sliding in that direction.

Posted by Will Nesbitt, Nesbitt Realty is a family-run brokerage. (Nesbitt Realty at Condo Alexandria) over 10 years ago

Jeff,

The length of the list is a total bummer but thanks for the info. Go Obama, make it happen.

Tom Schlotter
Connecticut Home Inspections
Connecticut Water Testing
Connecticut Radon Testing
Connecticut Mold Testing
Connecticut Infrared Thermography

Posted by Tom Schlotter over 10 years ago

We will always have those who have made their family fortunes off the misfortunes of others, and we can see this happening now.  Those people will never be in favor of anything that may give a struggling home owner a helping hand, and we need to realize that.  I think they refer to their tactics as "Smart Business"  sort of like the Bernie Madeoff school of business ....

Posted by steve over 10 years ago

I believe lenders should make available options such as 40 or even 50 year terms - KEEPING the loan amounts the same whenever possible. Or even interest only options - which could knock $1000 or more off a month for some bigger loans.  I don't like principle reductions lest in a last-chance scenario. BUT, if billions or going to be spent, at least make sure those modified loans are made into good loans that MAKE SENSE and can be handled by the borrower(s).

Posted by Stephen Kappre, Helping You Home (KW Hometown) over 10 years ago

Oh my, that lender list is SO long...strange to see them all listed like that...GREAT post!

Posted by Debra Kukulski, Broker Associate, SRES;SFR,CDPE;GRI;ABR;e-PRO Realtor, Northern IL (RE/MAX Unlimited Northwest) over 10 years ago

Unfortunately I see nothing that addresses the problems of short sales for people who HAVE to move and Need to Get out..

Relocation, Loss of Job, etc.. etc..

Posted by Paul Francis, Las Vegas Real Estate Agent - Summerlin Homes (Francis Group Real Estate) over 10 years ago

Awesome post! 

Mirela

Posted by Anonymous over 10 years ago

I was ready to leave and then I saw your post. WOW! I'll have to read it again tomorrow with a fresh mind.  This is quite an impressive analysis.  I just had to come back and tell you that. 

I re-blogged it.  Thank you!  You did a fabulous job with this, Jeff!  Thank you!

..."Politically Agnostic"...  I love that term!

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) over 10 years ago

Why aren't the lenders doing the REQUIRED Note Modification?!  If a lender agrees to a Short Sale, they then should INSTEAD do the REQUIRED Loan Modification.  Just Do The Required Home Loan Modification or Is Your Lender A Patriot Or Terrorist?

"Uncle Sam says Home Loan Modifications are the required way to avoid foreclosure, but the mortgage lenders are NOT willingly doing them. Why?

Home borrowers are facing foreclosure that shouldn't be.  Senator McCain blames home loan lenders .  Home loan lenders are NOT doing the REQUIRED Note Modification.  Instead, irrational lenders are illegally doing Foreclosures and Short Sales in violation of their own rules. "  Blame Greedy Home Loan Lenders For Frightening Recession

Good Guys Don't Have Degrees Of Integrity.  Also, Beware Of Fraudulent Foreclosure Notices

Posted by Craig B. over 10 years ago

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

Alessandra

http://www.craigslisthelper.info

Posted by Alessandra over 10 years ago

Tom Burris wrote:  Did they dismantle the Community Reinvestment Act?  If not, then this problem isn't fixed.

 

CRA was, in reality, an extremely small part of the problem.  As a mortgage broker who originated many CRA loans, I can tell you that the product itself is very conservatively underwritten.  It comes in two flavors only:  30 year FRM and 5 year ARM. A borrower must credit and income qualify--no stated income--and if you're self-employed, you must show tax returns. Does that sound like any of the exotic loan products that got us into this mess?

Please, before you make wild and sweeping accusations, become informed.

Sheila Bair:  Stop Blaming the Community Reinvestment Act

http://tinyurl.com/cumape

 

Posted by Catherine Coy (Equistar Funding Corp.) over 10 years ago

Here is one that has not been commented on.  I have a short sale with BOA that I have negotiated.  BOA is on board.  The second in a non participating and not on my HAFA participating lender list.  I learned this week that they have the 136,000 dollar second mortgage 100% insured via Old Republic.  This give the second lender no reason to negotiate.  What I am trying to find out is if anyone know how long the term might be on a MI/PMI policy from Old Republic.  I believe that the lender buys the insurance for a certain term.  I want to know if it might be five years.  Does anyone know who might know how long these policy terms might be on a second mortgage?

 

Minnesota Foreclosure Minnesota Short Sale

Posted by Angela Niece (REMAX Results) about 9 years ago

Participate