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davephx

davephx

LoanSafe Member
Treasury is going crazy trying everything in their limited power to get the servicers moving on permenant mods.

First the 12/31 deadline to get as many done by year-end which is also the next reporting period to try and shame the servicers that aren't making many mods. That came after Obama's nice sit down with the bankers where HAMP as #2 item on the 5 part agenda about getting banks to lend more. Bankers said they would do better....

Than Treasury sent in the swat teams to watch over their shoulders for 3 days.

That seems to have failed.. So on 12/23 now insists all trials be reviewed and make permanent eligibility decisions on "as quickly as possible" now for a 1/31/10 deadline.

Best of all servicers can not cancel any trials before 1/31 (I assume they can not deny but can convert to permanent mods. "Property eligibility" exception is probably like if its not owner-occupied.

This directive is full of "musts" like we need about notifying of missing documents etc.

The problem is there is nothing other than shame and media pressure Treasury/Obama can do if the response to "must" is "won't" Any enforcement of "must" would take Congress to act.

On the same day as this release we have the lifting of the caps on funding to Fannie/Freedie which some have speculated allows for more incentives to be given for mods including perhaps using TARP funds to pay for mortgage reductions. This could dramatically help get more to pass the NPV Test. Or, they could raise the $1000 incentive to servicers.

I predict the 12/31 conversion of trials to modifications will increase but not nearly as much as the Treasury/Obama's goals.

The result may be either Congress pressured to Act, but good luck with the party of no that can block, or more incentives or a funded principal reduction component.

It seems funding more is not a problem since the $75 billion allocated assumed 3-4 million conversions which just isn't at all happening.

In addition TARP has a huge surplus of funds now due to the repaying by the major banks and huge fees, high interest rate charged, and huge profits on the stock sales.

Under political pressure some of the funds could help reduce the deficit (which is lower than initially projected) some could go to a jobs program and if needed HAMP could be funded more, but that may not be needed since so little of the $75 billion has been "earned" yet by servicers and investor incentives.

Ironically for those of us that can hold out and not be sold out, the worse the performance of servicers is the more likely something will happen to benefit us.

That could be part of the Treasury "wisdom" in now what seems to be a hold on sales (since can't cancel trials) until 2/1/10 giving at least 30 days to evaluate and plan next move.

Treasury/Obama must make HAMP work, or the economy could be badly hurt again and banks may need more bailouts. Along with jobs it is a critical need for recovery to continue and economic growth to continue to gain.

The loss in jobs is now down to a very low rate vs early 2009 and while painful for many is not enough to stop economic growth. But massive foreclosure sales that are already in the pipeline could be a major threat again to the financial system, although much of the risk is with taxpayers since about 70% of 1st mortgages are GSE backed.

If the party of no will ever figure this out and support anything in Congress is very uncertain.
 
THANKS2U

THANKS2U

LoanSafe Member
davephx said:
Treasury is going crazy trying everything in their limited power to get the servicers moving on permenant mods.

First the 12/31 deadline to get as many done by year-end which is also the next reporting period to try and shame the servicers that aren't making many mods. That came after Obama's nice sit down with the bankers where HAMP as #2 item on the 5 part agenda about getting banks to lend more. Bankers said they would do better....

Than Treasury sent in the swat teams to watch over their shoulders for 3 days.

That seems to have failed.. So on 12/23 now insists all trials be reviewed and make permanent eligibility decisions on "as quickly as possible" now for a 1/31/10 deadline.

Best of all servicers can not cancel any trials before 1/31 (I assume they can not deny but can convert to permanent mods. "Property eligibility" exception is probably like if its not owner-occupied.

This directive is full of "musts" like we need about notifying of missing documents etc.

The problem is there is nothing other than shame and media pressure Treasury/Obama can do if the response to "must" is "won't" Any enforcement of "must" would take Congress to act.

On the same day as this release we have the lifting of the caps on funding to Fannie/Freedie which some have speculated allows for more incentives to be given for mods including perhaps using TARP funds to pay for mortgage reductions. This could dramatically help get more to pass the NPV Test. Or, they could raise the $1000 incentive to servicers.

I predict the 12/31 conversion of trials to modifications will increase but not nearly as much as the Treasury/Obama's goals.

The result may be either Congress pressured to Act, but good luck with the party of no that can block, or more incentives or a funded principal reduction component.

It seems funding more is not a problem since the $75 billion allocated assumed 3-4 million conversions which just isn't at all happening.

In addition TARP has a huge surplus of funds now due to the repaying by the major banks and huge fees, high interest rate charged, and huge profits on the stock sales.

Under political pressure some of the funds could help reduce the deficit (which is lower than initially projected) some could go to a jobs program and if needed HAMP could be funded more, but that may not be needed since so little of the $75 billion has been "earned" yet by servicers and investor incentives.

Ironically for those of us that can hold out and not be sold out, the worse the performance of servicers is the more likely something will happen to benefit us.

That could be part of the Treasury "wisdom" in now what seems to be a hold on sales (since can't cancel trials) until 2/1/10 giving at least 30 days to evaluate and plan next move.

Treasury/Obama must make HAMP work, or the economy could be badly hurt again and banks may need more bailouts. Along with jobs it is a critical need for recovery to continue and economic growth to continue to gain.

The loss in jobs is now down to a very low rate vs early 2009 and while painful for many is not enough to stop economic growth. But massive foreclosure sales that are already in the pipeline could be a major threat again to the financial system, although much of the risk is with taxpayers since about 70% of 1st mortgages are GSE backed.

If the party of no will ever figure this out and support anything in Congress is very uncertain.
Click to expand...
DAVEPHX

Excellent post - I agree 100%

When Mortgages are congressionally made to be Affordable & Sustainable, BY LAW, people can then also afford to purchase chosen goods, over the next 30 years and thus we are putting money into the economy.

There is NO ECONOMY when We The People are forced into being able to ONLY afford some survival foods and Survival goods, just to survive.

Then We the People are NOT ABLE TO LIVE LIFE, LIBERTY & THE PURSUIT OF HAPPINESS, as WE ARE NOT LIVING AT ALL, WE ARE ONLY BARELY SURVIVING and whatever money remains after the survival items are purchased, such money has been predatorily manipulated and forced to pay for the SWINDLING mortgages, which millions were coerced into.

Paying for Survival goods and SWINDLING Mortgages is not a balanced or fair or democratic economy, it is pure and simple Servitude and FINANCIAL SLAVERY to the Banks, Servicers and Investors.

The BIG FAT CATS have predatorily hunted FAR too many Main Street Fish.

The Banks, Servicers and Investors have Insidioulsy & Criminally hooked too many Main Street fish and have forced millions into foreclosure...

We the People have been abusively preyed upon & are becoming an extinct breed named MIDDLE CLASS MAIN STREET, where WALL STREET HAS SHOT & FINANCIALLY KILLED US ALL LIKE FISH IN A BARREL.

Yes Davephx, we need Congressionally enacted laws to force these predacious and Swindling banks, servicers and investors to STOP THEIR CRIMINAL OPPRESSIONS and to make Affordable, Sustainable Modifications a lawful reality for everyone who is in Current or Imminent Financial Distress.... PERIOD !

Our Government "of the people, by the people and for the people" must lawfully force the swindling Banks, Servicers and Investors to provide affordable mortgages to millions in distress.

Then in 2012, these Conniving, Criminal Banks, Servicers and Investors can slowly start to swindle the newer generation of fish in a barrel, who will not have a clue and or, will not have a memory.

At least the new laws will protect 99% of the new generation, for the most part.....

NEVER EVER WILL WE GIVE UP THE FIGHT AGAINST THESE TERRORISTIC FINANCIAL CRIMINALS..

Respectfully,

THANKS2U
 
THANKS2U

THANKS2U

LoanSafe Member
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

THANK YOU Davephx

Dave you deserve much thanks and praise for all your tireless hard work and dedication.

My hat is off to you Dave and I shake your hand with much gratitude.

Your selfess help here will result in a GREAT Modification !

A BIG HUGE thank you Dave from all of us here

Respectively, Thanks2U

SEE BELOW FOR IMPORTANT INFO FROM DAVEPHX

MANY CHANGES 1/1/2010 Fannie/Freddie/HAMP

Fannie and Freddie on 12/14/09 issued new servicing guides with lots of stuff mostly good and new borrower notices that follow HMP.ADMIN Directive from Nov I previously posted. HMP is for non GSE's. Unfortunately we have 3 different sets of guides that are similar but not exactly the same.

Fannie and HAMP aka HMP.Admin require extensive notices if denied either a trial or a final modification. The notice are required for all servicers to provide (if Fannie or non GSE - HAMP) as of 1/01/10 (encouraged to adopt before)

===============================================
FANNIE Servicing Guide Announcement 09-36 12/14/09

Title company endorsements now only needed if roll up of back payments exceeds $50,000 (was $20,000)

A servicer must send an extensive written notice to every borrower that has been evaluated for HAMP but is not offered a trial period plan, or is not offered a permanent HAMP modification within 10 days of the denial.

The notice must also describe other foreclosure prevention alternatives for which the borrower may be eligible, if any, including but not limited to other modification programs, preforeclosure sale, or deed-in-lieu of foreclosure, and identify the steps the borrower must take in order to be considered for those alternatives.

NPV TEST INPUTS
When the borrower is not approved for a HAMP modification because the mortgage loan is deemed NPV negative, the notice must include a list of certain input fields that are considered to reach the NPV result and a statement that the borrower may, within 30 calendar days of the date of the notice, request the date the NPV test was completed and the values used to populate the NPV input fields defined in Attachment 1. The purpose of providing this information is to allow the borrower the opportunity to correct values that may have impacted the analysis of the borrower’s eligibility.

If the borrower (or the borrower’s authorized representative) requests the specific NPV values orally or in writing within 30 calendar days from the date of the notice, the servicer must provide them to the borrower within 10 calendar days of the request.

IMPORTANT - DELAY FORECLOSURE SALE :
If the mortgage loan is scheduled for foreclosure sale when the borrower requests the NPV values, the servicer may not complete the foreclosure sale until 30 calendar days after the servicer delivers the NPV values to the borrower. This will allow the borrower time to make a request to correct any values that may have been inaccurate.

[ DAVE NOTES - I hope this means they hold off sale long enough to get the notice to request the NPV Values, seems a bit vague and could service sell before request is made by borrower?]

If the borrower identifies inaccuracies in the NPV values, the servicer must suspend the foreclosure sale until the inaccuracies (if material) are reconciled. Servicers are not required to provide the numeric NPV results or NPV input values not enumerated in Attachment 1.

For much more:
https://www.efanniemae.com/sf/guides.../2009/0936.pdf
===============================================
Freddie Mac Bulletin 2009-28 12/14/09
But its a "guide" as is Fannie: "With this Single-Family Seller/Servicer Guide (“Guideâ€) Bulletin..."

This longer bulletin is a bit more messy. Freddie is reviewing the FAQs of HAMP (for non GSE's) and will announce results in future bulletin. Other HAMP docs it refers to and is very confusing about in "Additional Guidelines on SD 09-07"

Goes into detail of requirements for imminent default evaluations and refers to future direction.... what a mess... different forms required after 3/1/10.

As provided in SD 09-07, Borrowers are not required to sign or return the new Trial Period Plan Notice. Servicers must retain a copy of the Trial Period Plan Notice sent to the Borrower in the Mortgage file and record the date that it was sent to the Borrower. Timely receipt of the first payment due under the Trial Period Plan Notice is evidence of the Borrower’s acceptance of the trial period plan terms and conditions.

Under the revised requirements, documentation of a Borrower’s income may not be more than 90 days old as of the date that the Servicer receives such documentation in connection with evaluating a Mortgage for a modification under HAMP. Servicers are not required to update such documentation during the remainder of the Trial Period.

OPTIONS FOR OBTAINING TREASURY NPV VALUES - very detailed rules about the model approved by Compliance Agent etc.

BORROWER NOTICES - refers back to SD 09-08 from 11/3/09 and must comply as of 1/1/10. Seems similar to Fannie but can't confirm for sure without a lot of research (I am Fannie so they are my main personal interest and Fannie Announcement is far less confusing and lays it all out in one place vs Freddie)

Than gets into eModification restrictions which may or may not only relate to electronic filings - can't use if engaged in litigation etc... details only an attorney would love like:
The Servicer is unable to comply with the recording jurisdiction’s recordation and formatting requirements for an electronic document, and Chapter C65 requires the Modification Agreement to be recorded or in recordable form

REVISIONS TO LOAN MODIFICATION REQUIREMENTS FOR ALL MORTGAGES
Increases the capitalization threshold regarding Title insurance from $20,000 to $50,000 the same as Fannie

For much more see:
http://www.freddiemac.com/sell/guide...df/bll0928.pdf

===============================================
HMP ADMINISTRATION Supplemental Directive 09-08 from November 3, 2009 which I posted about in Nov

Is all about the Borrower Notices which upon brief scan seems to have the same directives as the Fannie Announcement above and the about the same exhibit of the notification format.

See https://www.hmpadmin.com/portal/docs...cer/sd0908.pdf
===============================================
Fannie & Freddie issue "Servicing Guides".. I don't like the word "Guides"... usually start out saying, "Guidance to Fannie Mae-approved servicers..." But then most everything in the "guide" says "must"

So if a guide is not a must, are the musts within the guide not musts but guides?

So what does Guide as a verb mean?

Merriam-Websters says to direct in a way or course, to supervise, or influence usually to a particular end. Doesn't seem to include "must"

Dictionary.com also includes:
3. to force (a person, object, or animal) to move in a certain path.
I like the word FORCE but also:
4. to supply (a person) with advice or counsel, as in practical or spiritual affairs.
5. to supervise (someone's actions or affairs) in an advisory capacity.

But then in the "guides" they say "MUST"!!!!

I am confused if they are guides or musts!!!!!<!-- google_ad_section_end --> <SCRIPT type=text/javascript><!--google_ad_client = "pub-9439165354589625";/* 336x280, created 12/9/09 */google_ad_slot = "3961481147";google_ad_width = 336;google_ad_height = 280;//--> </SCRIPT><SCRIPT type=text/javascript src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </SCRIPT><SCRIPT>google_protectAndRun("ads_core.google_render_ad", google_handleError, google_render_ad);</SCRIPT>
 
T

torchkey

LoanSafe Member
THANKS2U said:
HAMP UPDATES DECEMBER 23, 09


https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0910.pdf
Click to expand...
Maybe some good news for Floridians.
By Kimberly Miller Palm Beach Post Staff Writer
<SCRIPT type=text/javascript>/* <![CDATA[ */jQuery('.authorContact').click(function() {var emailLink = jQuery(this).attr('href');popupWin(emailLink, '', '', 'false', 'false', 'false', 'false', 'false', 'true');});/* ]]> */</SCRIPT>Updated: 10:38 p.m. Monday, Dec. 28, 2009
Posted: 1:15 p.m. Monday, Dec. 28, 2009
<SCRIPT type=text/javascript>/* <![CDATA[ */var clickURL = encodeURI(location.href);var clickTitle = "Florida Supreme Court orders mediators to be first step in foreclosure cases";/* ]]> */</SCRIPT><SCRIPT src="http://alt.coxnewsweb.com/palmbeachpost/js/clickability/button491.js" type=text/javascript></SCRIPT><SCRIPT language=JavaScript> window.onerror=function(){clickURL=document.location.href;return true;} if(!self.clickURL) clickURL=parent.location.href; </SCRIPT>
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Florida's troubled homeowners and their lenders will increasingly meet at the bargaining table under a state supreme court order issued today that aims to reduce a foreclosure overload.
The administrative order written by Chief Judge Peggy Quince creates a statewide program that requires mediation on all homesteaded properties before a foreclosure hearing is held.
It guarantees homeowners will have an audience with their lender to discuss whether a loan modification or short sale is an option instead of foreclosure.
It also means lenders will be doing more work on the front end of the foreclosure process, and paying for it.
Today's order makes lenders responsible for paying a maximum mediation fee of $750 per case, which would help pay for the mediator and cover administrative costs.
Judges hope the mediation requirement will reduce the thousands of foreclosure cases clogging the system — a situation called "horrifying" in an August report issued by Florida's Task Force on Residential Mortgage Foreclosure Cases.
In Palm Beach County alone, more than 27,550 foreclosures were filed between January and November this year — nine times the amount filed in all of 2004.
"Right now, we have a court system that is going to break with the volume of foreclosures," said Boca Raton real estate Attorney Marlyn Wiener. "We're at a meltdown point and have to find new ways to manage the situation."
Each circuit court will approve its own mandatory program, and will have some leeway in how it is managed.
The main parts of the order, however, are the same statewide.
Every residential homesteaded property foreclosure will be referred to mediation, unless the lender and borrower agree otherwise. There are also waivers in the event a homeowner cannot be located or refuses mediation.
The homeowner must be referred to foreclosure counseling prior to mediation.
The mediation must take place no earlier than 60 days and no later than 120 days after a foreclosure suit is filed.
And the mediation must be provided by a non-profit organization with mediators specially trained and court certified in mortgage foreclosure matters.
"We're not interested in forcing people to settle, but there seems to be an inability to communicate between the borrower and the lender," said 11th Circuit Court Judge Jennifer Bailey, chairwoman of the statewide task force.
Judges say they often hear homeowners complain they couldn't reach their lender, or that their paperwork was repeatedly lost.
Court-ordered mediation may remedy that. But no one thinks it's a final solution, and some aren't even sure it's a good idea.
Sharon Bock, Palm Beach County's comptroller and clerk of the circuit court, said she's concerned that while it may alleviate judge workload, it could increase paperwork for her employees.
Foreclosure mediation has been optional in Palm Beach County for at least a year. Bock believes mandatory mediation isn't a role the court should play.
"This process moves the courts from calling balls and strikes, from creating a level playing field, into the realm of a social service agency, picking sides," she said.
Real estate attorney Wiener said the order does benefit the homeowner.
"It's making a judgment call. Who do the courts want to help? If we are going to help, we're going to help the homeowners," Wiener said.
A handful of circuit courts began requiring foreclosure mediation earlier this year, including the 19th, which covers Martin, St. Lucie, Indian River and Okeechobee counties.
The Collins Center for Public Policy handles mediation for the 19th Circuit Court.
Of 2,850 mediations the center has handled, about 2,000 resulted in settlements reached out of court.
"I'm optimistic, but this is not a cure all," said 19th Circuit Court Judge Shields McManus. "There are a lot of investment homes being foreclosed on and there are a lot of cases that don't settle because the people simply have no way to pay the mortgage."

<HR class=cxArticleDivider>Florida by the foreclosure numbers
  • <LI class=first>13 percent of Florida home loans were in foreclosure through September.
  • 6 percent of home loans were at least 90 days delinquent in September.
  • In November, 53,000 foreclosures were filed on Florida homes.
Source: RealtyTrac, Mortgage Bankers Association

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Servicers/Banks don't want to work anything out-they want your home because undisclosed mortgage insurance (pmi) was taken out on the home at 60% of the home value, and then get the proceeds from the home too. How do you think Wall Steet is making the huge profits right now? Add to that the undisclosed monthly fees paid to the master servicer, the trustee, the PMI insurer, and the SWAP provider. They knew these loans would fail and our lawmakers are letting this happen.
Jones
1:56 PM, 12/28/2009
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Way the game works is that our lawmakers, using FASB 140, allow the assets and liabilities to be separated by a special purpose entity. The loan orig. goes bankrupt or sells to a bottom feeder equity firm (such as W Ross) for pennies on the $$. In our case, our $700K mtg was purchased in the pool for $14K.So when they foreclose and collect $440K mortgage insur., and then sell the home for $400K, they are making a $826K ++ profit , plus all the interest and late fees they have collected.
Calif
3:19 PM, 12/28/2009
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THANKS2U

THANKS2U

LoanSafe Member
torchkey said:
Maybe some good news for Floridians.
By Kimberly Miller Palm Beach Post Staff Writer
<SCRIPT type=text/javascript>/* <![CDATA[ */jQuery('.authorContact').click(function() {var emailLink = jQuery(this).attr('href');popupWin(emailLink, '', '', 'false', 'false', 'false', 'false', 'false', 'true');});/* ]]> */</SCRIPT>Updated: 10:38 p.m. Monday, Dec. 28, 2009
Posted: 1:15 p.m. Monday, Dec. 28, 2009

<SCRIPT type=text/javascript>/* <![CDATA[ */var clickURL = encodeURI(location.href);var clickTitle = "Florida Supreme Court orders mediators to be first step in foreclosure cases";/* ]]> */</SCRIPT><SCRIPT type=text/javascript src="http://alt.coxnewsweb.com/palmbeachpost/js/clickability/button491.js"></SCRIPT><SCRIPT language=JavaScript> window.onerror=function(){clickURL=document.location.href;return true;} if(!self.clickURL) clickURL=parent.location.href; </SCRIPT>
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Florida's troubled homeowners and their lenders will increasingly meet at the bargaining table under a state supreme court order issued today that aims to reduce a foreclosure overload.
The administrative order written by Chief Judge Peggy Quince creates a statewide program that requires mediation on all homesteaded properties before a foreclosure hearing is held.
It guarantees homeowners will have an audience with their lender to discuss whether a loan modification or short sale is an option instead of foreclosure.
It also means lenders will be doing more work on the front end of the foreclosure process, and paying for it.
Today's order makes lenders responsible for paying a maximum mediation fee of $750 per case, which would help pay for the mediator and cover administrative costs.
Judges hope the mediation requirement will reduce the thousands of foreclosure cases clogging the system — a situation called "horrifying" in an August report issued by Florida's Task Force on Residential Mortgage Foreclosure Cases.
In Palm Beach County alone, more than 27,550 foreclosures were filed between January and November this year — nine times the amount filed in all of 2004.
"Right now, we have a court system that is going to break with the volume of foreclosures," said Boca Raton real estate Attorney Marlyn Wiener. "We're at a meltdown point and have to find new ways to manage the situation."
Each circuit court will approve its own mandatory program, and will have some leeway in how it is managed.
The main parts of the order, however, are the same statewide.
Every residential homesteaded property foreclosure will be referred to mediation, unless the lender and borrower agree otherwise. There are also waivers in the event a homeowner cannot be located or refuses mediation.
The homeowner must be referred to foreclosure counseling prior to mediation.
The mediation must take place no earlier than 60 days and no later than 120 days after a foreclosure suit is filed.
And the mediation must be provided by a non-profit organization with mediators specially trained and court certified in mortgage foreclosure matters.
"We're not interested in forcing people to settle, but there seems to be an inability to communicate between the borrower and the lender," said 11th Circuit Court Judge Jennifer Bailey, chairwoman of the statewide task force.
Judges say they often hear homeowners complain they couldn't reach their lender, or that their paperwork was repeatedly lost.
Court-ordered mediation may remedy that. But no one thinks it's a final solution, and some aren't even sure it's a good idea.
Sharon Bock, Palm Beach County's comptroller and clerk of the circuit court, said she's concerned that while it may alleviate judge workload, it could increase paperwork for her employees.
Foreclosure mediation has been optional in Palm Beach County for at least a year. Bock believes mandatory mediation isn't a role the court should play.
"This process moves the courts from calling balls and strikes, from creating a level playing field, into the realm of a social service agency, picking sides," she said.
Real estate attorney Wiener said the order does benefit the homeowner.
"It's making a judgment call. Who do the courts want to help? If we are going to help, we're going to help the homeowners," Wiener said.
A handful of circuit courts began requiring foreclosure mediation earlier this year, including the 19th, which covers Martin, St. Lucie, Indian River and Okeechobee counties.
The Collins Center for Public Policy handles mediation for the 19th Circuit Court.
Of 2,850 mediations the center has handled, about 2,000 resulted in settlements reached out of court.
"I'm optimistic, but this is not a cure all," said 19th Circuit Court Judge Shields McManus. "There are a lot of investment homes being foreclosed on and there are a lot of cases that don't settle because the people simply have no way to pay the mortgage."


<HR class=cxArticleDivider>Florida by the foreclosure numbers
  • <LI class=first>13 percent of Florida home loans were in foreclosure through September.
  • 6 percent of home loans were at least 90 days delinquent in September.
  • In November, 53,000 foreclosures were filed on Florida homes.
Source: RealtyTrac, Mortgage Bankers Association


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Servicers/Banks don't want to work anything out-they want your home because undisclosed mortgage insurance (pmi) was taken out on the home at 60% of the home value, and then get the proceeds from the home too. How do you think Wall Steet is making the huge profits right now? Add to that the undisclosed monthly fees paid to the master servicer, the trustee, the PMI insurer, and the SWAP provider. They knew these loans would fail and our lawmakers are letting this happen.
Jones
1:56 PM, 12/28/2009
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Way the game works is that our lawmakers, using FASB 140, allow the assets and liabilities to be separated by a special purpose entity. The loan orig. goes bankrupt or sells to a bottom feeder equity firm (such as W Ross) for pennies on the $$. In our case, our $700K mtg was purchased in the pool for $14K.So when they foreclose and collect $440K mortgage insur., and then sell the home for $400K, they are making a $826K ++ profit , plus all the interest and late fees they have collected.
Calif
3:19 PM, 12/28/2009
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TorchKey

EXCELLENT TOP NOTCH TRUTHFUL INFORMATION !!

The whole country needs to know about how these Banking Devils do their DIRTY WORK.

It is Diabolical Racketeering at its worst.

These Conniving Banking Institutions are all CRIMINALS, PERIOD !
 
hope67

hope67

LoanSafe Member
This article explains why servicers don't want to modify loans: (I posted the link to the article so you can read it in its entirety)

Quote from the article:

"Servicers have four main sources of income, listed in descending order of importance:
The monthly servicing fee, a fixed percentage of the unpaid principal balance of the loans in the pool;

Fees charged borrowers in default, including late fees and “process management feesâ€;

Float income, or interest income from the time between when the servicer collects the payment from the borrower and when it turns the payment over to the mortgage owner; and

Income from investment interests in the pool of mortgage loans that the servicer is servicing.

Overall, these sources of income give servicers little incentive to offer sustainable loan modifications, and some incentive to push loans into foreclosure. The monthly fee that the servicer receives based on a percentage of the outstanding principal of the loans in the pool provides some incentive to servicers to keep loans in the pool rather than foreclosing on them, but also provides a significant disincentive to offer principal reductions or other loan modifications that are sustainable on the long term. In fact, this fee gives servicers an incentive to increase the loan principal by adding delinquent amounts and junk fees. Then the servicer receives a higher monthly fee for a while, until the loan finally fails. Fees that servicers charge borrowers in default reward servicers for getting and keeping a borrower in default. As they grow, these fees make a modification less and less feasible. The servicer may have to waive them to make a loan modification feasible but is almost always assured of collecting them if a foreclosure goes through. The other two sources of servicer income are less significant."

Why Mortgages Aren?t Modified and What a Ruling Stopping Foreclosures Means -- Seeking Alpha<!-- google_ad_section_end -->
 
S

so-cal-gal

LoanSafe Member
hope67 said:
This article explains why servicers don't want to modify loans: (I posted the link to the article so you can read it in its entirety)

Quote from the article:

"Servicers have four main sources of income, listed in descending order of importance:
The monthly servicing fee, a fixed percentage of the unpaid principal balance of the loans in the pool;

Fees charged borrowers in default, including late fees and “process management feesâ€;

Float income, or interest income from the time between when the servicer collects the payment from the borrower and when it turns the payment over to the mortgage owner; and

Income from investment interests in the pool of mortgage loans that the servicer is servicing.

Overall, these sources of income give servicers little incentive to offer sustainable loan modifications, and some incentive to push loans into foreclosure. The monthly fee that the servicer receives based on a percentage of the outstanding principal of the loans in the pool provides some incentive to servicers to keep loans in the pool rather than foreclosing on them, but also provides a significant disincentive to offer principal reductions or other loan modifications that are sustainable on the long term. In fact, this fee gives servicers an incentive to increase the loan principal by adding delinquent amounts and junk fees. Then the servicer receives a higher monthly fee for a while, until the loan finally fails. Fees that servicers charge borrowers in default reward servicers for getting and keeping a borrower in default. As they grow, these fees make a modification less and less feasible. The servicer may have to waive them to make a loan modification feasible but is almost always assured of collecting them if a foreclosure goes through. The other two sources of servicer income are less significant."

Why Mortgages Aren?t Modified and What a Ruling Stopping Foreclosures Means -- Seeking Alpha<!-- google_ad_section_end -->
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In another poster's comments earlier there was a reference to 'undisclosed PMI'. Well, in addition to any 'PMI', for all the securitized notes, for example if you find your note has Bank Of New York Mellon (BoNY) as the 'trustee' for something such as CW-ABS (CountryWide-Asset Backed Secruities) xxxxx Certificates, there is almost a certainty that there is an insurance contract on that pooled security. This is the very insurance that AIG was writing for the pooled securities. The government bailed AIG out because they ended up making good on so much of that insurance already. I wonder what other insurance companies are actually in trouble because they backed insurance on these pooled securities? Are there more 'AIG' stories coming as more homes are actually foreclosed on?

Anyway, in the accounting for how the note holder ends up BETTER OFF when there is a foreclosure, THAT INSURANCE ALSO needs to be added in. It alone can be for MORE than the FACE VALUE of the NOTE! So the investor has a PROFIT from the foreclosure that is MORE than what was indicated in the other posting, provided the note was 'securitized'.

Add in the fact that we taxpayers are bailing out BOTH the AIG-insurance mess and the banksters too, Wall Street certainly has CAUSE to be posting gains in the banking sector. Money pouring into the likes of AIG from the feds is in turn paid out to the 'investor' pools controled by the banksters.
 
S

survivor

LoanSafe Member
Question- these new directives for failing the NPV, are theyt retroactive? I was notified failed NPV verbally, but will I be able to get the actual reasons in writing, or is this just going forward from 1/1/10? and able to look over and correct anything on it?(Ihad to immediately sign an in house after verbal denial, to avoid immediate foreclosure). thank you
 
S

so-cal-gal

LoanSafe Member
survivor said:
Question- these new directives for failing the NPV, are theyt retroactive? I was notified failed NPV verbally, but will I be able to get the actual reasons in writing, or is this just going forward from 1/1/10? and able to look over and correct anything on it?(Ihad to immediately sign an in house after verbal denial, to avoid immediate foreclosure). thank you
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Contact them as ask for it. There MUST be a LARGE number of people who are in your situation AND WE KNOW the 'PROBLEMS' the banksters have with entering the correct data.
 
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