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BofA Takes Out Lows As Sheila Bair Says Servicers' Issues Could Be "Very Damaging", "More Problems" To Arise In Mortgage Servicing
Finally the FDIC acknowledges the shitshow:
- BAIR: LITIGATION FROM SERVICER ISSUES COULD BE `VERY DAMAGING'
- BAIR SAYS FORECLOSURE PROBLEMS WILL REQUIRE `GLOBAL SOLUTION'
- BAIR: CRISIS REQUIRES `DECISIVE' ACTION FOR MORTGAGE SYSTEM
- BAIR: FDIC SECURITIZATION RULES `CONSISTENT' WITH DODD-FRANK
And the kicker:
- BAIR SAYS CRISIS REVEALED `CRITICAL FLAWS' IN MORTGAGE FINANCE
Oh, so there are flaws??? As a result, Bank of America takes out 10/20 lows
And Bair continues being on a roll:
- BAIR SAYS GOVERNMENT SUPPORT MUST BE EXPLICIT IF OFFERED
- BAIR SAYS `MORE PROBLEMS' WILL ARISE IN MORTGAGE SERVICING
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"Mortgage." From the Old French;
Meaning: "To Pledge Unto Death."
Looks like the mortgage securitizers and sellers took this definition to it's infinite end!
This is not a bank issue or a wallstreet issue. It's always been a govt issue the bank is the middle man and they are about to make the final deal. The judicial, legislative, and executive branches are about to go to war with each other. Some people believe that they will unite together and resolve with some sweeping legislative fix. Instead they will become as divided as one can imagine. It is but too obvious that in some instances the fundamental principle under consideration has been violated by too great a mixture, and even an actual consolidation, of the different powers; and that in no instance has a competent provision been made for maintaining in practice the separation delineated on paper. This will mark the end of our govt. (country) as we know it.
It's not just the issue of fraudclosuregate... it's the whole ball of wax... everything... and this battle won't just be between the branches of government, it will also be between the states and federal authorities... there is no unison because the basic actors in the collapse of our empire were completely in the dark about the natural conclusion/plan of the principal actors... their collective recognition will be incredibly interesting... as will their selective dementia.
What is Freddie and Fannie paper worth without the implicit guarantee? Even before fraudclosuregate? What is ANY Freddie or Fannie backed mortgage worth? Seems like Sheila's losing the battle for sphincter control.
Another genius investment by John Paulson.
Warranty? Implicit, baby! http://point2agentblog.com/wp-content/uploads/2009/04/used-car-salesman.jpg
"Global solution"??????????
Fuck that!
You think she means to dissolve the earth in something? Doesn't she know the earth is insolvent...
Brilliant!
Heh heh.
+1! for you, Lenny.
Come and take it.
http://www.youtube.com/watch?v=o_-QGNUYL5g
Flush twice and hold the handle down......
Timmy G really needs to give her a lesson on saying exactly the opposite of what reality is and what the intended course of action is
"Global"
1. covering, influencing, or relating to the whole world 2. comprehensive "CRISIS REQUIRES `DECISIVE' ACTION FOR MORTGAGE SYSTEM" = "global" under #2. ----------Enough to be freaked out about here without bringing in the NWO!If Sheila is admitting it, it is bigger than what she is saying. Bair has downplayed many aspects of this financial crisis, I remember her saying on the radio in early 09 they were closing far less banks than during the S&L crisis, saying no one was predicting that many closures...but Indy Mac was a tad bigger than your average stand alone S&L....It's probably prudent not to have someone in charge telling everyone to panic but no doubt she has underplayed the obvious problems...but if she is now stating mortgages are huge problem, its on.
I suspect they are setting this up for some lame duck Congress action where a bunch of Dems and Repubs that voted for TARP and who would love some Wall Street money in their campaign retirement fund, will vote for some bailout of BOA...and the govt will end up owning these mortgages, and people will then sue the govt, what a mess...
BOA may be the scape goat that gets put into receivership to spare the others...but I doubt it will be that cheap for US taxpayers..
My take is a little different. They want/need to bail out the banks and the only way to make that happen is another crisis. That crisis will need a sacrificial lamb: BOA! BOA has to go down (ala Lehman) in order to justify the bailout of the rest of the industry.
It's been nice knowing ya BOA.
Yep.
So is this why B of A is trying to give me a streamlined Mortgage refi with no appraisal and dropping my interest 3%? Sounds like a good deal to me but........
They only give these no-cost refi's when they've "lost" the note. If you accept it, they're good again. And if you're in a no-recourse State, you've lost what protection you had should you go underwater.
Accept their offer, and they'll start treating you like crap again. These offers are for suckers.
"BAIR: LITIGATION FROM SERVICER ISSUES COULD BE `VERY DAMAGING'"
that's code from the bitch that there will be no litigation - keep the party going.
No doubt there is a "fix" in the works. It will be more horrific than the problem itself if the recent past is any guide. If they need a little bank holiday to muscle the sheep, NP.
Bair has cajones ...
Global does not refer to the paranoid fantasy of World Government, but globally across banks, mortgage servicers and regulators in the US.
Since this is another example of FUBAR, isn't it a good thing that it is being driven into the light of day? Don't you think there are enough incentives across the board to correct this?
See FX ? It's really a very tight band even if we have seen plastered everywhere that the USD has the green light to crater now.
Don't be surprised if for the time being, the global currency cabal takes precedent ... global imbalances will be redressed. Global imbalances flooded the US with liquidity and allowed the children of finance to play Lord of the Flies. I'm certain our Chinese cousins do not want to see the same thing happen there.
They do not have the luxury of going their own way.
Very interesting that she suggests the withdrawal of the "implicit guarantee" of Fannie Freddie paper today as well. Could that be a nuclear negotiation ploy to bring MBS investors to the settlement table for a "global" solution?
The bottom line is that we live in a country with 2 different sets of laws, one for billionaire bankers and another for everyone else.
Most people sensed this already, but now it is so obvious even the most clueless know it for sure. It is the #1 reason for the anger in the country. Having a wrecked economy is bad enough. Watching those who wrecked it laugh all the way to St. Barts on their private jets, is too much to stomach.
Obama's biggest miscalculation was throwing his lot in with the banksters. Perhaps he was already bought and paid for, or perhaps he really thought we needed the banks more than we needed justice. If so, he was wrong, and I think the elections this year and in 2012 will drive home this point to him.
Require 'Global' solution?
Oh, so now the problem caused by the USA is now also their responsibilty to clean up? You dont think that theyre allready as MAD AS FREAKING HELL for being sold boxes of dog squat?
Keep that sort of bullcrap up, and you will start seeing branches of TBTF banks being shut down by their host nations.
This isnt going to be over anytime soon, not in a longshot.
Here's some heartfelt boo-hooing over this by the bankers that's sure to make you all weepy. I was especially moved by the guy who looks like he might have a heart attack. Boo hoo hoo hoo.
..
Mortgage Lenders Say ‘Enough Is Enough’ as Buybacks Curb Loans
By Jody Shenn
Oct. 25 (Bloomberg) -- Home lenders are making it tougher to get loans as investors step up demands for refunds on defective mortgages, damaging the housing market, executives said today at an industry conference.
Already beset by billions of dollars in forced buybacks, originators have imposed standards on new loans that are stricter than those set by mortgage buyers and insurers, according to Todd Chamberlain, an executive vice president who oversees mortgage lending at Birmingham, Alabama-based Regions Financial Corp.
“This industry has to stand up and say, ‘Enough is enough,’ " Ron J. McCord, chairman of Oklahoma City-based First Mortgage Co., said during a panel discussion with lender executives at the Mortgage Bankers Association’s annual conference in Atlanta, drawing applause from the audience. “We’re trying to be out here lending to help this recovery.”
Fannie Mae, Freddie Mac and bond insurers such as MBIA Inc. are pressing lenders including Bank of America Corp. to honor promises to buy back mortgages if they’re later found to be based on inaccurate data. Known as representations and warranties, the promises cover defects such as inflated appraisals or inaccurate data about a borrower’s job or income. Bank of America said last week it will resist paying claims.
Call for Unity
The industry needs to be “more united” in dealing with the demands, said William C. Emerson, Chief Executive Officer of Detroit-based Quicken Loans Inc., ranked as the 10th-largest lender in the first half of this year by newsletter Inside Mortgage Finance. Bankers have attributed mortgage defaults to the poor economy rather than defects in the loans.
“We all know we signed up for reps and warranties, but I don’t know if we thought we signed up to be an insurance company,” he said, speaking on the panel with Chamberlain and McCord.
Bank of America, the biggest U.S. lender, will “defend our shareholders” by disputing unjustified claims, CEO Brian T. Moynihan said in an interview last week. The Charlotte, North Carolina-based bank said it faces about $12.9 billion in pending claims.
Most of the disputed loans “don’t have the defects that people allege,” Moynihan said in the Oct. 19 interview, and Chief Financial Officer Charles H. Noski told analysts any repurchases will be negotiated “on a loan-by-loan basis.” For claimants such as Assured Guaranty Ltd., Bank of America’s one- at-a-time process is “like Chinese water torture,” said Dominic Frederico, the bond insurer’s chief executive officer, during an August conference call.
More Requests
Dan Arrigoni, CEO of Minneapolis-based U.S. Bancorp’s mortgage unit, the sixth-largest U.S. home lender, said his firm is seeing its most repurchase requests ever, though the amount is “still manageable.” Those are often coming from government- supported Fannie Mae or Freddie Mac, typically referred to as “agencies.”
“Our good friends at the agencies have hired a boat-load of people to go through everything with a fine-tooth comb, and they’ve done a good job,” he said. At the same time, “we’ve been successful in having them rethink a few.”
Fannie Mae and Freddie Mac, the largest mortgage-finance companies, may be owed as much as $42 billion just on loans they bought directly from lenders, according to Fitch Ratings. Investors in private mortgage bonds may collect as much as $179.2 billion, Christopher Gamaitoni, vice president of research at Compass Point Research & Trading LLC in Washington, said in an August report.
Joint Action
A group of investors in mortgage securities including BlackRock Inc. and the Federal Reserve Bank of New York signaled in a letter last week to Bank of America and Bank of New York Mellon Corp., a bond trustee, that bondholders may press for more refunds.
Sales of U.S. existing homes rose in September by 10 percent, the most on record, a sign that cheaper borrowing costs may be helping to stabilize the housing industry. The U.S. is glutted with a 10.7-month supply of unsold previously owned homes, the National Association of Realtors said today.
First Mortgage’s McCord said his private company, which makes about $1 billion of mortgages a year, is fending off as much as 70 percent of repurchase requests by proving it lived up to its contracts. Still, the demands themselves add to lenders’ expenses and stress, he said.
“My wife has said on numerous occasions I look like I’m going to have a heart attack over this,” McCord said.
Time for all you chickenshits to get short like me.
Quote from above :"With inflation in foods costs the Snookites will certainly begin to take notice when their Big Macs resemble White Castle Sliders in a year".
BRILLIANT...I have been laughing for 10 minutes. Assfuckistan and its suburb, Foodstampistan, was damn funny as well.
Thank you to ALL contributors...ZH ROCKS! (pity about us all being on the red pill though....UNCLE!)
The end game of US capitalism will be played between lawyers and bankers - the two least useful creatures in the system.
This is way too funny...