Figures my comment would be voted down. Most people in here aren’t looking for reality, just to tow the party line.
Predatory lending is mostly hype, driven by those who want to keep the eye off the ball. The higher risk market is a market, like it or not. And its a lucrative one when done right, with proper oversight to ensure lenders maintain sufficient capital from their increased profits (driven by increased interest rates) to cover the NATURALLY higher rate of default.
Naturally higher rate of default? uhhhh yea….duh.
That’s why its called high risk. You people are buying into the Nancy Pelosi Harry Reid nonsense of NO RISK lending.
High risk lending is how new businesses are formed, and they fuel development, meaning work, jobs, for tens of millions of people. Those jobs feed families. Families who right now are on food stamps, while you people talk about extending their welfare.
They don’t need welfare.
They need JOBS.
They want JOBS.
Most Americans want to work, but the jobs aren’t there. Because when builders can’t build, because buyers can’t buy, then workers can’t work. Period. And I’m not just talking about construction workers here. I’m talking about the independent owner operator who does long hauls of building materials. Or the guy who got hired on at the truck tire factory because more trucks are on the road. And the girl at home depot ringing up that new hot water heater you just bought because you’re upgrading your home to energy efficiency, or the guy who works at the roofing shingle factory, or the guy who drives the roach coach there each day because the factory’s open and doing a booming business, or the real estate lady, or the girl at the title company, or the landscaper, or home appraiser, who has more work than he can handle, or the local city govt hiring on 20 new pot hole fillers because their coffers are so full from the real estate sales taxes, to the guy working at the railroad that ships all that nice new lumber for all those homes going up for all those people buying them, to the cashier who got the extra shifts because business was so good at the local truck stop, to the….
There is no end to the jobs that were supported by our booming housing market. Alan Greenspan testified before Congress that the tent pole of our economy that was propping it up, was the housing market. He WARNED against letting it falter. Hell he wrote it in his book.
But no one listened.
Just like no one listens in here.
Because you’re too f$#king stupid, or too f#$king pompous, or too fuA#king something, because no one learned a damn thing.
No one got it. No one gets it.
Greenspan got it.
And so did Nancy Pelosi. And she USED it.
And it worked.
And now, all we have is a country full of dumbFa#4ks, running their mouths about things they read about on google. They don’t KNOW first hand, which by the way is the only reason I know.
I’m not smarter than anyone else and don’t claim to be. I just had first hand knowledge because it directly impacted me when it happened. And when my Mortgage broker called me the day Pelosi announced her “hearings” to “CLAMP DOWN ON LENDING”, and told me the money’s all frozen and the underwriters have stopped underwriting, thats when I SAW it happen, in real time.
Not some bs nonsense I’m regurgitating from google to try to sound erudite on a subject I know nothing about. No sir. First hand insider knowledge. The loans that were fine one day, were gone the next. And MILLIONS of developers were left holding properties, they could not sell.
Because suddenly there were no more mortgages for people to buy them with.
So go on, vote this one down too sheeple. Don’t let the truth stand in the way of your partisan pompousness. Just vote away. Might as well, because you vote the away the country just as easy.
Foreclosure Issues Pose Risks, Should Be Resolved With Time
Summary
Recently, some issues surrounding foreclosure sale proceedings have come to the forefront, leading several large banks to halt foreclosure sale proceedings in many states. The purpose of this note is twofold: to clear up some confusion on what exactly the issues at hand are and to bring some perspective to those issues. For instance, we note that the “foreclosure issue” that we are addressing here is separate from considerations surrounding potential bank loan repurchases. After the JPMorgan Chase earnings call, in which the company announced increased repurchase reserves, the two issues seem to have been muddied.
With respect to the issues surrounding foreclosure sales, while there are some outstanding risks, we think the issues that can be definitively addressed suggest a resolution could be possible over a matter of months. While that resolution should involve time, effort, and cost, we do not believe it will result in a major long–term disruption to the housing or mortgage markets.
Background
The issues surrounding foreclosure sale proceedings were initially brought to light on September 17, when GMAC/Ally halted evictions and REO sales in 23 judicial foreclosure states. Since that time, GMAC has extended their review to all 50 states, and four other large banks have halted foreclosure sales or launched internal reviews of their foreclosure processes: Bank of America has halted foreclosure sales in 50 states, JPMorgan Chase in 41 states, PNC in 23 states, and Litton is reviewing proceedings. Wells Fargo has stated that they are reviewing all pending foreclosures, but not halting the process and are confident their processes are robust. Attorneys General from all 50 states announced Wednesday that they have formed the Mortgage Foreclosure Multistate Group to review some of the practices around foreclosures proceedings.
The “foreclosure issues” being discussed at this point seem to encompass a few distinct problems, which we think it is useful to break down: robo-signers, MERS, and trust transfers.
The Robo-Signer Issue
While judicial foreclosure proceedings vary from state to state depending on different laws, many involve the presentation of an “affidavit of debt” before the court, which certifies that an employee of the mortgage servicer is familiar with the mortgage and borrower under question. Across several servicers burdened with an increasing number of foreclosures, there were employees who allegedly signed large numbers of affidavits without “personal knowledge” of the stated information. In addition, some affidavits were not notarized at the time of affidavit signing. These deficiencies created became a problem when brought before judges.
Importantly, however, although these deficiencies introduce risk, the issue does not seem to be insurmountable. We believe that the likelihood for widespread outright forgiveness of debt in cases where affidavits were signed or attested improperly is low. The details behind resolving cases such as these are not clear from a legal standpoint, but they seem likely to be, in part, a matter of rectifying the affidavit, issues of time, effort, and cost. Similar issues exist for fixing faulty foreclosure processes from the start; it may be possible to solve the robo-signer issue by staffing up teams or via other efforts. While more costly, and likely to delay foreclosure processes a few to several months, again, in our view, the issues do not seem to be insurmountable.
The MERS Issue
A second issue that has arisen questions the validity of MERS, an electronic registration system for mortgages meant to simplify the process of transferring mortgage ownership. In the past, there have been court rulings in support of the MERS model, e.g. that holding title for the benefit of another party was valid or that foreclosure initiation in the name of MERS was valid. There have also been cases in which the model was not supported (e.g. Landmark v. Kessler in Kansas), but in most instances it seems those efforts have failed or been overturned. In the event the matters challenging MERS succeed, resolution seems to be a practical issue; while the process is unclear at this point, it may simply be a matter of assigning the mortgage from MERS to the foreclosing party in cases where foreclosure in the name of MERS is ruled against or of simply foreclosing in the name of the bank instead of in the name of MERS. There has been at least one case (U.S. Bank v. Ibanez) in Massachusetts, which calls into question the separation of legal and beneficial title holding, similar to that used in the MERS model. That case is currently under appeal.
In addition, there also seems to be some misinformation about the MERS system itself and whether some banks are utilizing it or not. MERS put out a press release yesterday to address some of these concerns, citing the fact that Chase registers their correspondent loans in MERS, but does not register their retail loans.
The Trust Transfer Issue
A third issue that has arisen concerns the validity of the trust as the owner of the mortgage for loans that have been securitized. When the note is transferred to a trust, it is endorsed “in blank”, meaning that the owner of the note is not assigned. The note is only endorsed to the trustee or servicer on behalf of the trust if they need to institute foreclosure proceedings. Our understanding is that this is a common practice when notes are transferred to a trust. With respect to physical documents, those are delivered and held by the designated custodian for the trust. Both the seller and the custodian should have verified the existence and validity of the notes upon transfer. If there were any deficiencies, the custodian should have notified the seller to remedy any deficiencies or if they could not be remedied, put the loan back to the seller. The transfer of the notes is governed by the loan purchase agreement which also provides for evidence of ownership of the loans by the trust. Also, when the notes are transferred, the servicer records the ownership of the loans with MERS.
The Risks
The primary risk in our view is not that the affidavits issue remains unresolved, but how much time and effort the resolution will take and how far the scope of investigations expands beyond this issue. As mentioned, the Attorneys General from each state have formed a task force to look into the affidavit matter to determine if they were processed correctly under state laws. However, given that AGs from non-judicial states have joined the task force, the scope of their investigation may expand beyond this issue and lengthen the timeframe for resolution. Complicating matters is that servicers have to abide by individual state regulations with respect to foreclosure processing.
In the end, we believe that the vast majority of foreclosures will stand assuming that the actions were taken against borrowers who were delinquent. However, the end result will likely be a further extension of foreclosure timelines. We believe that the incremental increase in loss severity should be minimal if these issues can be resolved in the next 3-6 months. For servicers this means additional staffing requirements as well as increased costs. With respect to investors, headline risk will remain the predominant near term concern. Additionally, the allocation of additional costs due to advancing and legal fees will have to worked out. We do believe that the tenets of securitization, MERS, extensive legal foundation that has been established over the last 30 years, and REMIC eligibility will stand.
In other words: all shall be well, and all manner of thing shall be well.
Lujiazui Breakfast: <b>News</b> And Views About China Stocks (Oct. 27 <b>...</b>
Investors and traders in China's main financial district are talking about the following before the start of trade today: Shares in automaker Hong Kong-listed BYD tanked by 9% after the company said profit fell by 99% in the third ...
Google donates $5 million for <b>news</b> innovation to Knight Foundation <b>...</b>
Google and news organizations have had a rocky time of it. To overdramatize the situation only slightly: Google insists that it cares about journalism as a.
Exclusive: Yahoo Courts Former <b>News</b> Corp. Digital Exec Ross <b>...</b>
He's baaaaaack. Former Fox Interactive Media President Ross Levinsohn, that is, who is the top candidate to replace Hilary Schneider as Yahoo's US head, according to several sources close to the situation.
bench craft company complaints
bench craft company complaints
Lujiazui Breakfast: <b>News</b> And Views About China Stocks (Oct. 27 <b>...</b>
Investors and traders in China's main financial district are talking about the following before the start of trade today: Shares in automaker Hong Kong-listed BYD tanked by 9% after the company said profit fell by 99% in the third ...
Google donates $5 million for <b>news</b> innovation to Knight Foundation <b>...</b>
Google and news organizations have had a rocky time of it. To overdramatize the situation only slightly: Google insists that it cares about journalism as a.
Exclusive: Yahoo Courts Former <b>News</b> Corp. Digital Exec Ross <b>...</b>
He's baaaaaack. Former Fox Interactive Media President Ross Levinsohn, that is, who is the top candidate to replace Hilary Schneider as Yahoo's US head, according to several sources close to the situation.
bench craft company complaints bench craft company complaints
Figures my comment would be voted down. Most people in here aren’t looking for reality, just to tow the party line.
Predatory lending is mostly hype, driven by those who want to keep the eye off the ball. The higher risk market is a market, like it or not. And its a lucrative one when done right, with proper oversight to ensure lenders maintain sufficient capital from their increased profits (driven by increased interest rates) to cover the NATURALLY higher rate of default.
Naturally higher rate of default? uhhhh yea….duh.
That’s why its called high risk. You people are buying into the Nancy Pelosi Harry Reid nonsense of NO RISK lending.
High risk lending is how new businesses are formed, and they fuel development, meaning work, jobs, for tens of millions of people. Those jobs feed families. Families who right now are on food stamps, while you people talk about extending their welfare.
They don’t need welfare.
They need JOBS.
They want JOBS.
Most Americans want to work, but the jobs aren’t there. Because when builders can’t build, because buyers can’t buy, then workers can’t work. Period. And I’m not just talking about construction workers here. I’m talking about the independent owner operator who does long hauls of building materials. Or the guy who got hired on at the truck tire factory because more trucks are on the road. And the girl at home depot ringing up that new hot water heater you just bought because you’re upgrading your home to energy efficiency, or the guy who works at the roofing shingle factory, or the guy who drives the roach coach there each day because the factory’s open and doing a booming business, or the real estate lady, or the girl at the title company, or the landscaper, or home appraiser, who has more work than he can handle, or the local city govt hiring on 20 new pot hole fillers because their coffers are so full from the real estate sales taxes, to the guy working at the railroad that ships all that nice new lumber for all those homes going up for all those people buying them, to the cashier who got the extra shifts because business was so good at the local truck stop, to the….
There is no end to the jobs that were supported by our booming housing market. Alan Greenspan testified before Congress that the tent pole of our economy that was propping it up, was the housing market. He WARNED against letting it falter. Hell he wrote it in his book.
But no one listened.
Just like no one listens in here.
Because you’re too f$#king stupid, or too f#$king pompous, or too fuA#king something, because no one learned a damn thing.
No one got it. No one gets it.
Greenspan got it.
And so did Nancy Pelosi. And she USED it.
And it worked.
And now, all we have is a country full of dumbFa#4ks, running their mouths about things they read about on google. They don’t KNOW first hand, which by the way is the only reason I know.
I’m not smarter than anyone else and don’t claim to be. I just had first hand knowledge because it directly impacted me when it happened. And when my Mortgage broker called me the day Pelosi announced her “hearings” to “CLAMP DOWN ON LENDING”, and told me the money’s all frozen and the underwriters have stopped underwriting, thats when I SAW it happen, in real time.
Not some bs nonsense I’m regurgitating from google to try to sound erudite on a subject I know nothing about. No sir. First hand insider knowledge. The loans that were fine one day, were gone the next. And MILLIONS of developers were left holding properties, they could not sell.
Because suddenly there were no more mortgages for people to buy them with.
So go on, vote this one down too sheeple. Don’t let the truth stand in the way of your partisan pompousness. Just vote away. Might as well, because you vote the away the country just as easy.
Foreclosure Issues Pose Risks, Should Be Resolved With Time
Summary
Recently, some issues surrounding foreclosure sale proceedings have come to the forefront, leading several large banks to halt foreclosure sale proceedings in many states. The purpose of this note is twofold: to clear up some confusion on what exactly the issues at hand are and to bring some perspective to those issues. For instance, we note that the “foreclosure issue” that we are addressing here is separate from considerations surrounding potential bank loan repurchases. After the JPMorgan Chase earnings call, in which the company announced increased repurchase reserves, the two issues seem to have been muddied.
With respect to the issues surrounding foreclosure sales, while there are some outstanding risks, we think the issues that can be definitively addressed suggest a resolution could be possible over a matter of months. While that resolution should involve time, effort, and cost, we do not believe it will result in a major long–term disruption to the housing or mortgage markets.
Background
The issues surrounding foreclosure sale proceedings were initially brought to light on September 17, when GMAC/Ally halted evictions and REO sales in 23 judicial foreclosure states. Since that time, GMAC has extended their review to all 50 states, and four other large banks have halted foreclosure sales or launched internal reviews of their foreclosure processes: Bank of America has halted foreclosure sales in 50 states, JPMorgan Chase in 41 states, PNC in 23 states, and Litton is reviewing proceedings. Wells Fargo has stated that they are reviewing all pending foreclosures, but not halting the process and are confident their processes are robust. Attorneys General from all 50 states announced Wednesday that they have formed the Mortgage Foreclosure Multistate Group to review some of the practices around foreclosures proceedings.
The “foreclosure issues” being discussed at this point seem to encompass a few distinct problems, which we think it is useful to break down: robo-signers, MERS, and trust transfers.
The Robo-Signer Issue
While judicial foreclosure proceedings vary from state to state depending on different laws, many involve the presentation of an “affidavit of debt” before the court, which certifies that an employee of the mortgage servicer is familiar with the mortgage and borrower under question. Across several servicers burdened with an increasing number of foreclosures, there were employees who allegedly signed large numbers of affidavits without “personal knowledge” of the stated information. In addition, some affidavits were not notarized at the time of affidavit signing. These deficiencies created became a problem when brought before judges.
Importantly, however, although these deficiencies introduce risk, the issue does not seem to be insurmountable. We believe that the likelihood for widespread outright forgiveness of debt in cases where affidavits were signed or attested improperly is low. The details behind resolving cases such as these are not clear from a legal standpoint, but they seem likely to be, in part, a matter of rectifying the affidavit, issues of time, effort, and cost. Similar issues exist for fixing faulty foreclosure processes from the start; it may be possible to solve the robo-signer issue by staffing up teams or via other efforts. While more costly, and likely to delay foreclosure processes a few to several months, again, in our view, the issues do not seem to be insurmountable.
The MERS Issue
A second issue that has arisen questions the validity of MERS, an electronic registration system for mortgages meant to simplify the process of transferring mortgage ownership. In the past, there have been court rulings in support of the MERS model, e.g. that holding title for the benefit of another party was valid or that foreclosure initiation in the name of MERS was valid. There have also been cases in which the model was not supported (e.g. Landmark v. Kessler in Kansas), but in most instances it seems those efforts have failed or been overturned. In the event the matters challenging MERS succeed, resolution seems to be a practical issue; while the process is unclear at this point, it may simply be a matter of assigning the mortgage from MERS to the foreclosing party in cases where foreclosure in the name of MERS is ruled against or of simply foreclosing in the name of the bank instead of in the name of MERS. There has been at least one case (U.S. Bank v. Ibanez) in Massachusetts, which calls into question the separation of legal and beneficial title holding, similar to that used in the MERS model. That case is currently under appeal.
In addition, there also seems to be some misinformation about the MERS system itself and whether some banks are utilizing it or not. MERS put out a press release yesterday to address some of these concerns, citing the fact that Chase registers their correspondent loans in MERS, but does not register their retail loans.
The Trust Transfer Issue
A third issue that has arisen concerns the validity of the trust as the owner of the mortgage for loans that have been securitized. When the note is transferred to a trust, it is endorsed “in blank”, meaning that the owner of the note is not assigned. The note is only endorsed to the trustee or servicer on behalf of the trust if they need to institute foreclosure proceedings. Our understanding is that this is a common practice when notes are transferred to a trust. With respect to physical documents, those are delivered and held by the designated custodian for the trust. Both the seller and the custodian should have verified the existence and validity of the notes upon transfer. If there were any deficiencies, the custodian should have notified the seller to remedy any deficiencies or if they could not be remedied, put the loan back to the seller. The transfer of the notes is governed by the loan purchase agreement which also provides for evidence of ownership of the loans by the trust. Also, when the notes are transferred, the servicer records the ownership of the loans with MERS.
The Risks
The primary risk in our view is not that the affidavits issue remains unresolved, but how much time and effort the resolution will take and how far the scope of investigations expands beyond this issue. As mentioned, the Attorneys General from each state have formed a task force to look into the affidavit matter to determine if they were processed correctly under state laws. However, given that AGs from non-judicial states have joined the task force, the scope of their investigation may expand beyond this issue and lengthen the timeframe for resolution. Complicating matters is that servicers have to abide by individual state regulations with respect to foreclosure processing.
In the end, we believe that the vast majority of foreclosures will stand assuming that the actions were taken against borrowers who were delinquent. However, the end result will likely be a further extension of foreclosure timelines. We believe that the incremental increase in loss severity should be minimal if these issues can be resolved in the next 3-6 months. For servicers this means additional staffing requirements as well as increased costs. With respect to investors, headline risk will remain the predominant near term concern. Additionally, the allocation of additional costs due to advancing and legal fees will have to worked out. We do believe that the tenets of securitization, MERS, extensive legal foundation that has been established over the last 30 years, and REMIC eligibility will stand.
In other words: all shall be well, and all manner of thing shall be well.
bench craft company complaints
Lujiazui Breakfast: <b>News</b> And Views About China Stocks (Oct. 27 <b>...</b>
Investors and traders in China's main financial district are talking about the following before the start of trade today: Shares in automaker Hong Kong-listed BYD tanked by 9% after the company said profit fell by 99% in the third ...
Google donates $5 million for <b>news</b> innovation to Knight Foundation <b>...</b>
Google and news organizations have had a rocky time of it. To overdramatize the situation only slightly: Google insists that it cares about journalism as a.
Exclusive: Yahoo Courts Former <b>News</b> Corp. Digital Exec Ross <b>...</b>
He's baaaaaack. Former Fox Interactive Media President Ross Levinsohn, that is, who is the top candidate to replace Hilary Schneider as Yahoo's US head, according to several sources close to the situation.
bench craft company complaints bench craft company complaints
Lujiazui Breakfast: <b>News</b> And Views About China Stocks (Oct. 27 <b>...</b>
Investors and traders in China's main financial district are talking about the following before the start of trade today: Shares in automaker Hong Kong-listed BYD tanked by 9% after the company said profit fell by 99% in the third ...
Google donates $5 million for <b>news</b> innovation to Knight Foundation <b>...</b>
Google and news organizations have had a rocky time of it. To overdramatize the situation only slightly: Google insists that it cares about journalism as a.
Exclusive: Yahoo Courts Former <b>News</b> Corp. Digital Exec Ross <b>...</b>
He's baaaaaack. Former Fox Interactive Media President Ross Levinsohn, that is, who is the top candidate to replace Hilary Schneider as Yahoo's US head, according to several sources close to the situation.
bench craft company complaints bench craft company complaints
Lujiazui Breakfast: <b>News</b> And Views About China Stocks (Oct. 27 <b>...</b>
Investors and traders in China's main financial district are talking about the following before the start of trade today: Shares in automaker Hong Kong-listed BYD tanked by 9% after the company said profit fell by 99% in the third ...
Google donates $5 million for <b>news</b> innovation to Knight Foundation <b>...</b>
Google and news organizations have had a rocky time of it. To overdramatize the situation only slightly: Google insists that it cares about journalism as a.
Exclusive: Yahoo Courts Former <b>News</b> Corp. Digital Exec Ross <b>...</b>
He's baaaaaack. Former Fox Interactive Media President Ross Levinsohn, that is, who is the top candidate to replace Hilary Schneider as Yahoo's US head, according to several sources close to the situation.
bench craft company complaints bench craft company complaints
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