Comments

Posted: 2009-11-13 22:23:15
by Bob Armbruster

Wonder how Sec Donovan and Mr Stevens are going to save FHA...did they share how they will reduce climbing delinquencies(including some new loans), for the program while increasing reserves above the current 1/2%...how do they get it back to even 2%...maybe raising credit scores is one of the magic wands. Have seen comments they will not need bailout, but... they are still shipping ink to Washington. From 2-3% market share to 30% and surely more, they are in trouble, and with the billions still needed supposedly by Fannie, the future for a housing recovery near term seems to be on black ice . The folks at HUD, and the GSEs might be looking over their shoulders. With foreclosures, short sales and reduced equities pushing the market, it would appear ,value concepts and models continue to be in trouble. When they put the hose in the lake for a water supply, they forgot to check the distance to the next source of the water... How opaque is your crystal ball?? By the way Marc Savitt sent me a note inviting me to join AG Cuomo movement at facebook/stopcuomo... Best regards

Posted: 2009-11-13 23:30:38
by Larry Rubinoff, TheMortgageCornerFORUM

On Purchasing Mortgage Portfolios. In another artilce you reported that Penny Mac is unable to purchase mortgage portfolios because the GSE's and other banks just are not selling them. Two questions come to mind: First, how many "portfolios" do they actually own and not service and of those how many to they own 100% of? Second, If they do own some - this also raises a question of "The Right Party in Interest" in foreclosure actions - why would they want to sell them? They make much more money when they foreclose on a bad loan. They make a lot of money becasue they get the property back as REO with NO CASH PAID. This would be OK if they had not previously SOLD the mortgage in a pool to thousands of investors. Basically they are stealing properties, selling them and keeping all the money. Not only does the homeowner lose but the investors who bought into that particular pool lose as well. A foreclosure, I believe, removes that asset from the pool. How can that happen. Does not sound legal to me. There is much more to this mortgage crisis then still meets the eye. Be on the lookout.

Posted: 2009-11-16 13:40:29
by brian

You make a great note "He did say one thing that struck a chord with me: that some of the FHA's reserves are kept at the Treasury Department, which means Uncle Sam has access to that money when FHA isn't using it. It sort of reminded me of the Social Security "surplus" fund our nation has..." This is exactically how Pres Clinton was rapidly bringing the national Debt to near $0, but remember MIP was at closer to 2.35% back then. Question of the Day: is the fund like a checking account for just FHA or can the Treasury use the money for other items like TARP or proping up a Big 4 Bank (B4B). How would that look, you bankrupt FHA hurting and defaming the little guy while using/allowing the FHA money to be diverted to Wall Streets on wishes.

Posted: 2009-11-19 02:20:56
by Francine

Paul,I love your informative newsletters and I've read "Chain of Blame". Excellent! Why doesn't anyone else see the big picture? I believe the decimation of the appraisal industry and the mortgage broker arm of the mortgage scene is all part of a master planned scheme. The banking cartel (as you so aptly describe BofA,Wells,Chase & Citi)are working hand-in-hand with certain congressmen and senators to secure the whole market share of mortgages. I won't be surprised to see Barney Frank and Chris Dodd heading up the Big Brother Holding Company - or some such thing. Wasn't Chris Dodd one of the VIP group of Friends of Angelo? He had no idea there would be closing costs on his loan from Angelo? My, my, my - why not put the fox in charge of the chicken coop? Can he even balance a checkbook? And he wants to head the Federal Watchdog Committee overseeing the mortgage brokers that have managed to survive the carnage of the last few years? I have a very interesting question, Paul. What credentials do these politicians need to become senators and representatives? Do any of them have an FBI background check done upon entering their job? Fingerprints? College degree? Any License that would qualify them to make decisions for the whole country? Credit check? IRS tax review? Anything? Or they just schmooze their way into their job and spend most of their time telling everyone else what they should or should not do - and work on getting themselves re-elected. Then they retire with full pay for life! Easy for them to spend social security money - they don't need it! Health care? They can throw any crappy thing they want at the general public - they won't be using it! To get my LO license by July, 2010, I have to have a background check, fingerprints, 30 or so hours of classes, federal and state testing, clean credit report (no foreclosure, bankruptcy allowed in the last three years)just to get my license by July,2010. It will cost me at least $1200. And I don't even know how long I'll be able to survive in the industry with HUD and our esteemed politicians constantly changing and re-changing their guidelines - always more stringent and restrictive. The new Respa rule is a joke. Have you seen one of the "new and improved" GFE's? How about the new HUD 1 form? No borrower will be able to make heads or tails of them. So much for protecting the consumer. There are major items missing on the GFE that will really tickle the borrowers. For instance - there's no place to put the earnest money, seller-paid closing costs, or breakdown of settlement fees. Oh yeah, they'll just love it! We had a perfectly clear, one page GFE. Now it's 3or4 pages - and after 15 yrs. in the business - I can't understand it. Do I even want to get a license? I wouldn't mind that, Paul, but to spend all the money and time to get my license and not know if there will be a home for mortgage loan officers and a way for us to do our job - why bother? Sorry for rambling, Paul. I've been so disgusted by what I've seen of politicians trying to cover their own butts while praying they don't get caught at the games they all played in the mortgage world; the mass confusion at HUD on how to "fix" the mess we're in; wondering when Angelo will finally get hauled in off the beach where he's getting his orange tan, and dragged into court for his massive part in all of this mess; Cuomo letting every crook in NY get away with their scams while he's been busy pushing HVCC down our throats. He can pat himself on the back for his HVCC pet project completely destroying the careers of so many honest, hard working professional appraisers. And he won't quit until he gets the mortgage brokers and bankers out of the way, as well. Oh well, that's enough for now, Paul. Hope you get a chance to read this and perhaps respond, if you have time. Thanks for giving me a place to vent! Francine

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