How Wall Street Perverted the 4 Cs of Mortgage Underwriting

MOST POPULAR ARTICLES CLICK HERE TO GET COMBO TITLE AND SECURITIZATION REPORT CUSTOMER SERVICE 520-405-1688 Editor’s Comment:  For thousands of years since the dawn of money credit has been an integral part of the equation.  Anytime a person, company or institution takes your money or valuables in exchange for a promise that it will return [...]

Garfield Continuum White Paper Explains Economics of Securitization of Residential Mortgages

SEE The Economics and Incentives of Yield Spread Premiums and Credit Default Swaps March 23, 2010: Editor’s Note: The YSP/CDS paper is intentionally oversimplified in order to demonstrate the underlying economics of securitization as it was employed in the last decade. To be clear, there are several things I was required to do in order [...]

MYTHS of MODIFICATION EXPOSED

MYTH  any imaginary person or thing spoken of as though existing any fictitious story, or unscientific account, theory, belief, etc. Kudos to investigative journalist Kevin Hall with McClatchy Newspapers for inserting himself into the so called “loan modification” process and exposing the farce that is being perpetrated on the American public in the article below. [...]

U.S. STANDS FIRM IN SUPPORT OF WALL STREET WHILE THE REST OF THE WORLD TAKES THE ECONOMIC CRISIS SERIOUSLY

MR. GEITNER, MR. SUMMERS AND OTHERS WHO ARE ON THE ECONOMIC TEAM DESERVE some CREDIT FOR BRINGING US BACK FROM AN ECONOMIC PRECIPICE THAT WOULD HAVE RESULTED IN A DEPRESSION FAR DEEPER AND LONGER THAN THE GREAT DEPRESSION. AND THEY SHOULD BE CUT SOME SLACK BECAUSE THEY WERE HANDED A PLATE ON WHICH THE ECONOMY [...]

Banks Ready to File Suit Against Short-Sellers

editor’s note: This is part of what we have been talking about. years down the road these bankers are looking to sue borrowers for deficiencies after people recover from the disaster the bankers caused. Also set to explode in a few years are title defects that are incurable resulting from the securitization of loans and incorrect [...]

Ex Freddie Mac Exec Says “Securitize No More”

In order to revive securitization, taxpayers would have to absorb large risk. The social gains would be small, or perhaps even nonexistent. The best thing to do with the shattered Humpty-Dumpty of mortgage securitization would be to toss the broken pieces into the garbage. See Also Securitized Mortgages Are Illegal: Securitization Is ILLEGAL Should Mortgages [...]

AIG Letter on CDS Shows Transfer and Subrogation

In November of 2008, AIG answered a request from the SEC that requird them to explain the inner workings of Credit Default Swaps. While they appear to have finessed certain issues, this is the clearest glimpse of how it worked. There are several classes of transactions but each of them involves some “delivery” of the [...]

Don’t Get “HAMP”ED Out Of Your Home!

By Walter Hackett, Esq. The federal government has trumpeted its Home Affordable Modification Program or “HAMP” solution as THE solution to runaway foreclosures – few things could be further from the truth.  Under HAMP a homeowner will be offered a “workout” that can result in the homeowner being “worked out” of his or her home.  [...]

The Elephant in the Room – Well One of Many…

By Brad Keiser For those of you who have been to our seminars, (coming to Southern California next month) You have heard me ask about Hank Paulson and Ben Bernanke…”Are they stupid or were they lying when they said everything was OK through out all of 2007 and most of 2008?” You have seen and heard why Neil and I declare [...]

OHIO SLAM DUNK by Judge Morgenstern-Clarren: US BANK TRUSTEE and OCWEN Crash and Burn

Pretender Lenders — read and weep. Game Over. Over the next 6-12 months the entire foreclosure mess is going to be turned on its head as it becomes apparent to even the most skeptical that the mortgage mess is just that —  a mess. From the time the deed was recorded to the time the [...]

FDCPA — Fair Debt Collection Practices Act

Don’t get misled by titles. The wording of the statute clearly uses “verification” not validation. Verification generally means some sworn document or affidavit. This means when you contest the debt under FDCPA (in addition to sending a QWR) the party who is supposedly collecting or enforcing the debt has a duty to “obtain verification”. And [...]

NY Times: Why Creditors Should Suffer, Too

Editor’s Note: This article is on the right track. Using the guidelines of resolution trust, a fair and equitable distribution of risk and loss could be achieved while at the same time demonstrating to the world that the United States accepts the responsibility for what our “masters of the universe” on Wall Street and Main [...]

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable. The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through [...]

Closed: Utah’s MagnetBank, Florida’s Ocala National Bank, Maryland’s Suburban Federal Savings Bank — 6 so far in 2009

Utah’s MagnetBank closed without an acquirer FDIC shuts down three banks in one day amid ongoing credit crisis By John Letzing, MarketWatch Last update: 6:42 p.m. EST Jan. 30, 2009 SAN FRANCISCO (MarketWatch) — Federal regulators closed three banks in a single day Friday, as the ongoing credit crisis showed no signs of abating. Utah’s [...]

Appraisal Fraud and Industry Standards Described in 2003 Official White Paper-RED FLAGS DESCRIBED IN DETAIL WITH EXCELLENT DIAGRAMS EXPLANATIONS AND DESCRIPTIONS OF BEST PRACTICES

loan_origination_mortgage_fraud_ffiec loan_origination_mortgage_fraud_prevention_response_nelson Red Flags • Critical loan processing activities, such as  verification of income, employment, or deposit, is delegated to brokers. • Delegated underwriting allowed for correspondents that are new or lack an established track record with the FI. • A growing number of loans is being repurchased due to misrepresentations by the FI under [...]

KISS – Keep It Simple Stupid: Why Brad Conducts Part of the Workshops

See also provident-bank-v-silverman-super-duper-explanation-of-ucc-transferres-holders-and-holders-in-due-course-and-perfecting-title-to-note-or-mortgage  KISS – Keep It Simple Stupid Totaled Cars and Totaled Mortgages – Credit Default Swaps – CDS – 101 By Brad Keiser OK this article is for those newer readers and tenured Livinglies devotees as well as those who have attended Al Pacino’s(oops I mean Neil Garfield’s ) workshops and are not [...]

Credit Card Issuers See the Writing on the Wall: Forgiveness of Debt — they also got paid in full through securitization, so there is no obligation owed to them

Credit Card Companies Willing to Deal Over Debt Bank of America says it eased off on more than 700,000 credit card holders in 2008, lowering interest rates and some balances. By ERIC DASH Published: January 2, 2009 Hard times are usually good times for debt collectors, who make their money morning and night with the [...]

Harvard-educated architect to lead an agency dealing with the mortgage mess

Submitted on 2008/12/14 at 8:37pm by Philip Elliott | The Associated Press Saturday December 13, 2008, 3:54 PM CHICAGO — Promising a prominent role for his housing department, President-elect Barack Obama on Saturday named a Harvard-educated architect to lead an agency dealing with the mortgage mess that dragged the country into a recession. Former Clinton [...]

Mortgage Meltdown: Credit Crisis Spreads

McClatchy Washington Bureau Posted on Sun, Jun. 08, 2008 Credit crisis expands, hitting all kinds of consumer loans Kevin G. Hall | McClatchy Newspapers last updated: June 08, 2008 08:39:12 PM WASHINGTON — The credit crisis triggered by bad home loans is spreading to other areas, forcing banks to tighten credit and probably extending the [...]

Foreclosure Defense: Contingency Fees

most vendors are looking for money up front that will make them rich while you go down the tubes More and more “professionals” are coming out of the woodwork to “help” with your mortgage. Whether you are in default, foreclosure, in the midst of sale or eviction, or just sitting with a mortgage where the [...]