This page has been archived and commenting is disabled.

Socialism Gone Apeshit: Obama Wants To Use Proceeds From $20 Billion Fraudclosure Settlement To Reduce Underwater Mortgages

Tyler Durden's picture




 

Ever wonder why the banks have been stowing away cash as if in anticipation of a torrential rainy day? Well, it just started pouring. According to the WSJ: "The Obama administration is trying to push through a settlement over mortgage-servicing breakdowns that could force America's largest banks to pay for reductions in loan principal worth billions of dollars…Terms of the administration's proposal include a commitment from mortgage servicers to reduce the loan balances of troubled borrowers who owe more than their homes are worth, people familiar with the matter said. The cost of those writedowns won't be borne by investors who purchased mortgage-backed securities, these people said…some state attorneys general and federal agencies are pushing for banks to pay more than $20 billion in civil fines or to fund a comparable amount of loan modifications for distressed borrowers…Regulators are looking at up to 14 servicers that could be a party to the settlement…Banks would also have to reduce second-lien mortgages when first mortgages are modified…Under the administration's proposed settlement, banks would have to bear the cost of all writedowns rather than passing them on to other investors. The settlement proposal focuses on pushing servicers who mishandled foreclosure procedures to eat losses, by writing down loans that they service on behalf of clients. Those clients include mortgage-finance giants Fannie Mae and Freddie Mac, as well as investors in loans that were securitized by Wall Street firms.” In other words, we have just reached the pinnacle of banana republic socialist insanity. In one fell swoop the teleprompter will not only grant reprieve to the banks for decades of fraudulent mortgage activity, but undercapitalize themselves and have them at risk for another liquidity run, which would of course mean another record multi-trillion taxpayer bailout. And the worst case: the 10 million or whatever underwater mortgages will get an average reduction of $2000 each. This is unfuckingbelieveable!

From the WSJ:

A settlement could help lift a cloud of uncertainty that has stalled the foreclosure process since last fall. Economists have warned that foreclosures need to proceed for the housing market to continue on a path to recovery. It's unclear how many borrowers would benefit from a deal. Servicers have thus far had difficulty managing the volume of troubled loans.

So far, most loan modifications have focused on shrinking monthly payments by lowering interest rates and extending loan terms. Banks, as well as mortgage giants Fannie Mae and Freddie Mac, have been shy to embrace principal reductions, in part due to concerns that many borrowers who can afford their loans will stop paying in the hope of being rewarded with a smaller loan. But some economists warn that rising numbers of underwater borrowers will drag on housing markets and the economy for years unless more is done to help them.

Several federal agencies have been scrutinizing the nation's largest banks over breakdowns in foreclosure procedures that erupted last fall. Last week, the Office of the Comptroller of the Currency said only a small number of borrowers had been improperly foreclosed upon. But the regulator raised concerns over inadequate staffing and weak controls over certain foreclosure processes.

A settlement must satisfy an unwieldy mix of authorities, including state attorneys general and regulators such as the newly formed Bureau of Consumer Financial Protection, who support heftier fines. They must also appease banking regulators, such as the OCC, that are concerned penalties could be too stiff.

"Nothing has been finalized among the states, and it's our understanding that the federal agencies we are in discussions with have not finalized their positions," said a spokesman for Iowa Attorney General Tom Miller, who is spearheading a 50-state investigation of mortgage-servicing practices.

On the utter economic futility of this idiotic action:

Bank executives say principal cuts don't necessarily improve payment patterns, and have told other parties involved in the talks that principal reductions could raise new complications. First, it will be difficult to determine who gets reductions and who doesn't. And even if banks agree to a $20 billion penalty, the number of mortgages that can be cured with that number is limited, one of these people said.

Any settlement could be one of the largest to hit the mortgage industry. In 2008, Bank of America settled claims worth more than $8.6 billion for loans allegedly involving predatory lending practices committed by Countrywide Finance Corp., which it acquired that year.

Of course the winner would be Obama's chances at getting reelected for a second term as teleprompter in chief. As for the outcome, now that the curve is flattening and the sad reality of the economic collapse is once again being appreciated, we will have a bank collapse that much sooner, leading to more trillions in taxpayer funded bail outs, so Wall Street can have another year of record bonuses, all the while the Chairsatan proceeds with QE 3, 4, 5, 6 and so forth. Which of course is the primary motive.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 02/23/2011 - 21:56 | 991187 haskelslocal
haskelslocal's picture

What the Fuck?

Wed, 02/23/2011 - 21:55 | 991189 buzzsaw99
buzzsaw99's picture

WTF+1

Wed, 02/23/2011 - 22:09 | 991244 nope-1004
nope-1004's picture

No doubt Geithner had something to do with this.

 

Wed, 02/23/2011 - 22:17 | 991281 silver_serf
silver_serf's picture

This is bullish for equities

Wed, 02/23/2011 - 22:29 | 991330 Harmonious_Diss...
Harmonious_Dissonance's picture

Indeed

Wed, 02/23/2011 - 23:11 | 991467 txapela
txapela's picture

this is bullshit for capital markets, the country, the hemisphere, the globe, the race and all crab people alike.

Wed, 02/23/2011 - 23:16 | 991485 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The fiat system goes round and round.  Gold/Platinum/Oil at key resistance levels and so are the respected corporations equity.  Hess and ABX are at resistance and these two corporations mimic spot better than any.  Silver has already broken out and SLW has as well.  The next move has started and will end at DXY 66.

Thu, 02/24/2011 - 00:10 | 991675 zaphod
zaphod's picture

Welcome to the Roman republic's conversion to empire.

 

panem et circenses

 

Thu, 02/24/2011 - 00:58 | 991809 Crab Cake
Crab Cake's picture

... ww3. Humanity is walking the knife's edge of transendence ala the singularity, and an extinction level event. Place your bets.

Thu, 02/24/2011 - 00:58 | 991811 Crab Cake
Crab Cake's picture

... ww3. Humanity is walking the knife's edge of transendence ala the singularity, and an extinction level event. Place your bets.

Thu, 02/24/2011 - 01:24 | 991863 thefatasswilly
thefatasswilly's picture

World War III will not involve nukes. Please stop living in the past, and try thinking from the point of view of an elite.

Nukes are an outdated technology. They were invented before computers. Many, many forms of destruction have been invented since then.

All elites know that any usage of nuclear weapons will inevitably result in M. A. D. This is highly undesirable for an elite, who enjoys all the privileges of being on top.

The individuals with power will instead opt for newer, slightly less destructive (oh, the irony) weapons, such as biochemical weapons. These weapons will wipe out many peasants and serfs, but will allow the nobles to remain safe from harm.

Human extinction? What a ridiculous notion. Even IF nuclear weapon exchange were initiated, enough humans would survive to fuck and allow the continual expansion of the race. YOU would most likely die (even in the case of biochemical warfare), but humanity as a species would be quite safe.

Thu, 02/24/2011 - 01:54 | 991978 savagegoose
savagegoose's picture

im pretty sure just about anyone with nukes could nuke the capital of libya, and it wouldnt result in the end of the world. MAD only works if the 2 sides involved have enough nukes to actually end the world. . how about nth korea and sth korea they could toss a  few at ea other and im pretty sure the world wouldnt be destroyed.

now idia and pakistan, maybe they have enough for a live extinction event.

Thu, 02/24/2011 - 01:54 | 991979 savagegoose
savagegoose's picture

im pretty sure just about anyone with nukes could nuke the capital of libya, and it wouldnt result in the end of the world. MAD only works if the 2 sides involved have enough nukes to actually end the world. . how about nth korea and sth korea they could toss a  few at ea other and im pretty sure the world wouldnt be destroyed.

now idia and pakistan, maybe they have enough for a life extinction event.

Thu, 02/24/2011 - 04:49 | 992131 CJLopez21
CJLopez21's picture

i agree. elites know that the ultimate weapon over a people is resources. Food, water, land, etc. If you control all food, water, land and energy. money is irrelevant. people will submit out of survival instincts. They wont let resources get destroyed to the point where it cant replenish itself.

 

Thu, 02/24/2011 - 06:58 | 992196 Overflow-admin
Overflow-admin's picture

Biochemicals? Really, that's ridiculous. Just take a look at the number of owned weapons per person per country. What's the cost of a bullet (not a silver one)? Here's your WWIII setup.

 

Do you think any leader can hold that? Look at Lybia: I'm sure that as much airstrikes as they can isn't enough to stop angry mobs.

Thu, 02/24/2011 - 08:07 | 992255 Freewheelin Franklin
Freewheelin Franklin's picture

Efficiency and progress is ours once more
Now that we have the Neutron bomb
It's nice and quick and clean and gets things done
Away with excess enemy
But no less value to property
No sense in war but perfect sense at home:

The sun beams down on a brand new day
No more welfare tax to pay
Unsightly slums gone up in flashing light
Jobless millions whisked away
At last we have more room to play
All systems go to kill the poor tonight

Gonna
Kill kill kill kill Kill the poor:Tonight

Behold the sparkle of champagne
The crime rate's gone
Feel free again
O' life's a dream with you, Miss Lily White
Jane Fonda on the screen today
Convinced the liberals it's okay
So let's get dressed and dance away the night

While they:
Kill kill kill kill Kill the poor:Tonight

Wed, 02/23/2011 - 22:19 | 991285 Michael
Michael's picture

Is 90210 included in the scheme?

Beverly Hills real estate selling for 1989 price levels – Southern California two bubbles. Home sold for $920,000 in June of 1989 and has a pending sale at $920,000 today. 1 MLS foreclosure versus 100 in the shadow inventory.

"The negative year-over-year price trend in Southern California is not surprising.  The overall market is still inflated and delusion still runs rampant.  If you follow previous historical manias the true bottom is usually reached when most of the public concurs that said object of mania is rejected nearly at all price levels.  We are nowhere near that level of capitulation.  The next phase is bottom investors picking up homes in lower priced markets.  30 percent of sales last month in SoCal involved all cash buyers picking up homes for a median price of $190,000.  Yet a fascinating thing that is now occurring is the places to hide are getting smaller and smaller.  There are many psychological trends that have hit in this bubble and the one that seems to remain is the one of selectivity in niche markets.  There are only a handful of people that now say “well that isn’t the best part of the 90210 or San Marino will not go down.”  Well it will go down but nothing that you will be able to afford!  The other 98 percent of areas where people live prices are adjusting and in many mid-tier markets.  These delusional folks somehow think they are going to buy a million dollar home on a low six-figure salary (or even less).  Champagne taste with a beer budget.  Today we see a home in the 90210 zip code that is now back to 1989 price levels."

http://www.doctorhousingbubble.com/beverly-hills-real-estate-selling-1989-price-levels-beverly-hills-housing-correction-1-mls-foreclosure-option-arms-alta-loans/

Wed, 02/23/2011 - 22:29 | 991323 Michael
Michael's picture

Download VUZE torrent downloader.

http://www.vuze.com/

Search "Inside Job" narrated by Matt Damon(cough) about the housing bubble bust and bail-outs. Very good explanation.

I watched it last night and was not disappointed. 

Wed, 02/23/2011 - 22:47 | 991395 Michael
Michael's picture

News Flash;  Bribery only works for so long.

Saudi’s $36bn bid to beat unrest

"King Abdullah of Saudi Arabia announced financial support measures, worth an estimated SR135bn ($36bn), in a bid to avert the kind of popular unrest that has toppled leaders across the region and is now closing in on Libya’s Muammer Gaddafi.

The measures include a 15 per cent salary rise for public employees to offset inflation, reprieves for imprisoned debtors, and financial aid for students and the unemployed."

http://www.ft.com/cms/s/0/b02f1ffa-3f62-11e0-8e48-00144feabdc0.html#axzz1EqAhvm64

 

Wed, 02/23/2011 - 22:56 | 991423 I think I need ...
I think I need to buy a gun's picture

They can take their 2000 and stick up their ass I'm out of the current economy except for buying food gold and silver and yes I work from home so I'm not even going to fill up on gas.

Wed, 02/23/2011 - 23:17 | 991484 Michael
Michael's picture

News Flash: Thank You Federal Reserve for exporting US Inflation.

Thousands protest against high food prices in Delhi

"Thousands of people have gathered in the Indian capital, Delhi, to take part in a rally to protest against rising food prices and unemployment.

A steady stream of protesters, carrying red flags, has been marching through the streets of central Delhi since early morning.

The rally has led to massive traffic jams in the city.

Trade unions who have called the rally say nearly 40,000 people will attend a meeting at the Ramlila grounds.

Thousands will then march to parliament, they say."

http://www.bbc.co.uk/news/world-south-asia-12549050

 

Thu, 02/24/2011 - 01:51 | 991973 Troll Magnet
Troll Magnet's picture

goddamn...i'm running out of popcorn!

 

Wed, 02/23/2011 - 23:25 | 991513 RoRoTrader
RoRoTrader's picture

You put out some pretty good stuff. M.....looking at an OIL chart (D) the RSI is over 70 and Slow Stoc looking to crossover at around 90........every othe rtime this combinatio occured back to Apr 2010 there was resistance and at least some selling.

Also, in this instance a price over $100, especially a sustained price above $100/b brings NO good news for the FED.

Contrarian call but looking to short into $100 and target $95. Stp loss at $102.50.

Maybe wrong, but that is trading and King Abdulahhulabula wants prices to pullback along with the ME heat.

Wed, 02/23/2011 - 23:42 | 991580 Michael
Michael's picture

Thanks RRT.

Oil will keep going up till the eco-fascists in the US capitulate and allows us to develop our own proven reserves that have been kept secret but now revealed. Oil will hit $150 by summer.

I even heard Cramer(Argg) talk today about the Dakota reserves on CNBC, on mute of course, news scroll.

Thu, 02/24/2011 - 00:07 | 991662 RoRoTrader
RoRoTrader's picture

You may be right......have thought about the $150 number and if the ME lights up like a social tinderbox then it is probably higher, and in quick order.......if social order breaks down all bets are off.

However, KingA is obviously working to stem that tide and has taken a very measured approcah to halt contagion into SA.

Also, it is probable that that a military lockdown of critical OIL producing/refining assets has already been put into place.

My best guess is that Kadaffi is probably already negotiating a seaside cottage on a remote Atlantic shore in Scotland with Shell.

The other part of that deal is the sustained price of OIL over $100, and the risk it brings into the American political equation.

Again, maybe I am wrong but I do not think the FED can afford it either politically or socially.

Tone conveys meaning and Thomas Hoenig is putting up the tone, and spelling out the meaning in a speech made only today.

http://www.bloomberg.com/news/2011-02-23/fed-s-hoenig-says-top-financial...

I think Hoenig can rally the dollar and not just the dollar, but also America and American power. I bought USD/CHF just over the low of 0.9275.

 

 

Thu, 02/24/2011 - 00:17 | 991687 Michael
Michael's picture

Hoenig, a rat fleeing a sinking ship trying to retain some credibility. These banksters will be strung up by the balls. The unrest in the US starts with the spring thaw and weather gets better. Picketing of the Federal Reserve will make news headlines. The dam is breaking. Dollars will be dropped from helicopters to try to keep the rabble at bay. It will not work. The masses are onto their game.

Thu, 02/24/2011 - 00:32 | 991737 RoRoTrader
RoRoTrader's picture

Not in disagreement with that take, but willing to let it play out.

Hoenig has clearly stepped up and can rally the dollar with that kind of statement just as the Europeans have been lately with rhetoric over implying higher interest rates.

Hoenig is striking a deep cord, and is taking the counter position to the current political/monetary policy.

Americans are looking for leadership. What I read from Hoenig today is the closest that has come in a long long time.

The underlying messgae is step up and take responsibility.

If I am wrong then I pay by the price of my trades.

Thu, 02/24/2011 - 01:09 | 991837 Questionmark
Questionmark's picture

U.S. oil production peaked in 71. Good luck ever getting anywhere near those levels again. Price will keep rising until everybody is back to traveling by horses.

Wed, 02/23/2011 - 23:48 | 991603 andybev01
andybev01's picture

Or you could wait 2 weeks and BUY THE DVD.

Thu, 02/24/2011 - 00:40 | 991759 Xkwisetly Paneful
Xkwisetly Paneful's picture

Did a great job explaining it!

Didn't mention the double line around the world to buy worthless credit instruments nor any government culpability.

 

File it under another hollywood liberal scumbag talking out of his ass.

 

Nothing better on the planet than some moron bolstering his own moronic views with a littany of moronic material.

Thu, 02/24/2011 - 08:14 | 992262 4ndy
4ndy's picture

I agree, I watched it about 3 days ago. I nearly tossed my computer out of the window.

Thu, 02/24/2011 - 10:02 | 992503 chunga
chunga's picture

Here's a link to either download or view "Inside Job".

http://www.putlocker.com/file/3BNOSJI0IPS0KGSC

I watched the whole thing and what irritated me most was the outright arrogance of the players.

Thu, 02/24/2011 - 00:37 | 991747 vxpatel
vxpatel's picture

News flash genius:

920,000 is a fuckload of money, to the chinese, who have all our money.

Go back to sleep sheeple.

Wed, 02/23/2011 - 23:32 | 991546 QQQBall
QQQBall's picture

You saying he is first in line for a "mod" on his shack in NY?

Thu, 02/24/2011 - 03:44 | 992111 CH1
CH1's picture

buzzsaw, get another icon, PLEASE. That thing is disgusting!

Thu, 02/24/2011 - 09:53 | 992486 Commander Cody
Commander Cody's picture

Total Recall dude.  And yours is so cute!

Thu, 02/24/2011 - 07:11 | 992202 Hammertime
Hammertime's picture

+2

Thu, 02/24/2011 - 08:17 | 992269 Circlehook
Circlehook's picture

WTF +1000

Wed, 02/23/2011 - 21:59 | 991204 Bearster
Bearster's picture

Bennies for millions of homeowners begging for a handout.  Check.

Under the table bailouts for the banks.  Check.

Populist political theater.  Check.

Taxpayers and holders of dollars to pay the tab.  Check.

Total cost unknown.  Check.

Unintended consequences unknowable.  Check.

What do you mean what the fuck??

Wed, 02/23/2011 - 22:03 | 991223 MarketTruth
MarketTruth's picture

VIDEO: Obama pay for gas and mortgage. Looks like she is right!

www.youtube.com/watch?v=P36x8rTb3jI

Wed, 02/23/2011 - 22:11 | 991254 Michael
Michael's picture

Ron Paul is waiting for maximum economic pain this year before he announces his candidacy for President 2012. That time is almost here.

Wed, 02/23/2011 - 22:23 | 991297 Seer
Seer's picture

Ron's candidacy is DOA, as he isn't a conduit to big corporate interests.

Thu, 02/24/2011 - 08:17 | 992268 4ndy
4ndy's picture

if he's not, than after he's elected, he'll be.

Thu, 02/24/2011 - 09:53 | 992404 Voluntary Exchange
Voluntary Exchange's picture

@ Seer & Michael:

 

I can understand Michael's enthusiasm for the "Doctor of the House".  This man has lived a productive and honourable life and is led by principle.  He remains the only politician I have ever given dollars to. But I will no longer support any politician again in any election including dear Ron. Let me explain.

Trying to get Ron at  the head of the US government is like trying to get a decent person to head up the mafia.  If you can do it by some miracle, you will not succeed in permanently stopping what the mafia does. You might slow it down for a while. Is this what you want to do, just slow it down? I want to end organized crime all over the world and I do not presume to do it by controlling an organization that survives through crime. This is a logical contradiction.

I submit to you and all my fellow Americans that the US government is founded at the very beginning in crime and thus is a magnate for those of criminal intent.  It is staring you right in the face:  "Congress shall have power to lay and collect taxes...".  (Please have some fun and watch: http://www.youtube.com/watch?v=ngpsJKQR_ZE - "I'm allowed to rob you!").

What are things that NON-PARASITICAL people think they need "governments" for?   They want to be able to live productive lives without being prey to the Liars, thieves, and those who choose force to impose their will on others, (security).  They want to be able to live by voluntary exchange and not be victims of crime. They want a way to peacefully resolve the disputes that humans are prone to get into, even with their fellow non-parasitical neighbors (adjudication/arbitration).  

 

Because of the way Americans have been raised and educated, (often by the state), they think that it is impossible to have order in a society without what they call "government".  To gain insight  how this idea is flawed in its conception it is  useful to restate what a "government" is in terms that the victims of "government"  might be able to grasp in a new way by referring to governments by the key "services" they claim to provide:  A "government" is a monopoly of legal force/enforcement and adjudication/arbitration in a certain geographic area.  What people think of as "government" is only a tool to provide services and there is nothing magic about these services.  Because such a monopoly will always serve as a magnate to those who wish to live by crime, giving a monopoly of "legal" force or adjudication to ANY entity is a recipe for violence, theft and fraud. Also a monopoly can not possibly serve the needs of all legitimate "customers" and must therefore impose its choices on those who disagree with aspects of its policies and would not support the government unless the FIRST USE OF force or threat of force were involved.

 

When you clearly come to understand what all "governments" are you understand that trying to get your man at the "head" of the "mafia" is not the proper way to be safe and live in peace! You must put an end to the "mafia"!  It is not impossible. it has been done on this planet a number of times before.  Please study early Irish, and Icelandic history for some ideas on this. If you keep trying to take over your local "Mafia" is not going to get you where you want to go, and you will thus waste time, and resources if you try to do this, and avoid the real problem.

 

What you need to do is obtain security/enforcement and adjudication/arbitration services from non-monopoly providers who must "win" their "election" by you as individual customers for their services on an individual basis every day of the year.  This is the perfect "election" for every non-parasitic person on this planet because your purchase is equivalent to your "election" of your service provider that you think will best fit your needs. You can't "loose" this election, you can only "win".  It is the best solution because if the entity starts acting criminally you can stop purchasing their services and choose another.  You retain your power this way! You forever keep the key "power of the purse" this way. Such a system of many service providers dispersed throughout a society does not result in disorder or chaos, but rather cooperation.  Such a system is called "voluntarism".

 

If you are capable if seeing outside the box then you might also check out the following links to start rehabilitating your thought processes:

http://www.youtube.com/watch?v=Xbp6umQT58A

http://www.youtube.com/watch?v=P772Eb63qIY&feature=channel

http://www.youtube.com/watch?v=02rvMwSlAu0&feature=channel

http://www.youtube.com/watch?v=BKyutB3u2bM

http://www.youtube.com/watch?v=3IRbwpc2XV4&feature=channel

http://www.youtube.com/watch?v=sLCEXtpTNYU

 

http://www.lewrockwell.com/orig6/molyneux4.html

http://www.youtube.com/watch?v=suNzxthcTJs

http://www.youtube.com/watch?v=nOBD6v8g1F4

http://www.libertarianstandard.com/articles/david-j-heinrich/justice-for...

http://www.youtube.com/watch?v=KzyogKiXhEA

http://faculty.msb.edu/hasnasj/GTWebSite/MythWeb.htm

http://mises.org/journals/jls/1_2/1_2_1.pdf

http://polycentricorder.blogspot.com/2009/01/anarchic-ireland-rough-draf...

 

 

Wed, 02/23/2011 - 22:24 | 991304 silver_serf
silver_serf's picture

For Ron's sake, I hope he stays away, he would become the patsy for the criminals in Washington.  Really though, who is going to step in front of this train

Wed, 02/23/2011 - 22:31 | 991336 Michael
Michael's picture

The train wreck happens just before the 2012 election. Dr Ron Paul will be seen as the smartest man in the country as a result.

Wed, 02/23/2011 - 22:42 | 991373 Harmonious_Diss...
Harmonious_Dissonance's picture

The train wreck happened in 1913.

Wed, 02/23/2011 - 22:51 | 991405 faustian bargain
faustian bargain's picture

then engine crashed then, but the coach cars at the end of the train are only now derailing.

Wed, 02/23/2011 - 23:20 | 991502 Michael
Michael's picture

That was great. Thanks.

Food fight.

DENNYS GRAND SLAM (WHOLE VIDEO) CHICOPEE MASS

http://www.youtube.com/watch?v=XxeZvUKpFbM

 

Thu, 02/24/2011 - 00:22 | 991587 Rusty Shorts
Rusty Shorts's picture

That sucked, I feel 10x dumber now. Thanks.

Thu, 02/24/2011 - 00:44 | 991765 Xkwisetly Paneful
Xkwisetly Paneful's picture

Uh yea a guy with  a lifetime devotion to limited government who has never once in his life actually passed substantive government legislation limiting government.

Thu, 02/24/2011 - 01:04 | 991821 faustian bargain
faustian bargain's picture

No-one has.

Thu, 02/24/2011 - 01:55 | 991986 Troll Magnet
Troll Magnet's picture

i feel for those who believe ron paul would bring change to our country.  he won't.  he's a politician. 

Thu, 02/24/2011 - 07:35 | 992222 Blank Reg
Blank Reg's picture

Oh yea! I SWEAR B'rock O'bottom is a closet Tea Partier. NO body could be dumb enough to screw up this badly. The backlash will rocket the Ron Paul into the White House. (Or Michelle Bachmann. I like her too.)

Thu, 02/24/2011 - 01:21 | 991877 knukles
knukles's picture

They cleaned up the GoM mess,
dabgunnit, they'll clean up this mess.

Wed, 02/23/2011 - 22:25 | 991306 SilverRhino
SilverRhino's picture

You forgot the important issue. 

EVERY mortgage modified will be in recourse states where MERS abuses were the worst.  WHY?

 

So the mortgage company gets a NEW wet signature and can complete foreclosure during the inevitible foreclosures at a later date. 

 

I wouldn't mod for anything under 50K minimum. 

 

Wed, 02/23/2011 - 22:43 | 991380 beastie
beastie's picture

Bingo.

More bait and switch bullshit.

 

Wed, 02/23/2011 - 22:56 | 991424 Bill D. Cat
Bill D. Cat's picture

Just sign here . We're from the government and we're here to help .

Wed, 02/23/2011 - 23:10 | 991461 topcallingtroll
topcallingtroll's picture

Good.

I hope you are right.

Wed, 02/23/2011 - 23:27 | 991524 Dr. Porkchop
Dr. Porkchop's picture

That's what came to mind first thing.. they're looking for a convenient way to avoid the implications of the MERS fiasco. Can't have millions of mortgages, underwater or not, being declared null and void due to mishandling.

And they say you can't polish a turd.

Thu, 02/24/2011 - 05:14 | 992147 Arkadaba
Arkadaba's picture

Yep:

The cost of those writedowns won't be borne by investors who purchased mortgage-backed securities, these people said…

Wed, 02/23/2011 - 23:32 | 991544 Fearless Rick
Fearless Rick's picture

Ditto. $2000 per mortgage is squat anyhow. Let them eat cake.

Thu, 02/24/2011 - 03:51 | 992112 Lord Koos
Lord Koos's picture

You guys are supposedly good at math... the average is $2000, a bit different than $2000 per house.  

Thu, 02/24/2011 - 06:11 | 992168 StychoKiller
StychoKiller's picture

It's called "moral hazard" for a reason.  Why shouldn't anyone that's currently NOT underwater simply join those that are in order to get their share of the bailout?  Is being totally reckless with the Govt Treasury an impeachable offense?  If not, why not?!

Wed, 02/23/2011 - 23:37 | 991562 Rusty Shorts
Rusty Shorts's picture

I wouldn't mod nothing, it's a trap. They know everything is fucked up beyond repair ... except - if we could just get them to modify their loan ... MUUUUAAAAAAHAHAAHAAHAHAAA

Wed, 02/23/2011 - 23:52 | 991619 Dr. Porkchop
Dr. Porkchop's picture

The homeowners just need to send a five word email to whoever is trying to forclose:

Show

Me

The

Note

Motherfucker.

Thu, 02/24/2011 - 01:56 | 991989 Bolweevil
Bolweevil's picture

Poetry.

Wed, 02/23/2011 - 23:40 | 991571 downwiththebanks
downwiththebanks's picture

Exactly.  

What TD wrongfully calls socialism is really The Obamanation's way of giving the Capitalists who own him a 'Get Out of Jail Free' card.

Even Socialism benefits White Capital.

Thu, 02/24/2011 - 00:49 | 991783 sun tzu
sun tzu's picture

Obunghole will hang the last capitalist with the rope he made 

Thu, 02/24/2011 - 01:06 | 991829 faustian bargain
faustian bargain's picture

But the government always does what's in our best interest, ergo it's socialism to take from the people and give to the banks. It's for our own good.

Thu, 02/24/2011 - 04:52 | 992134 AnAnonymous
AnAnonymous's picture

What was it when it was done before socialism?

Wed, 02/23/2011 - 23:45 | 991586 downwiththebanks
downwiththebanks's picture

oops

Thu, 02/24/2011 - 00:56 | 991804 palmereldritch
palmereldritch's picture

At $2000, I sure hope they have the proper paper work in order

http://www.irs.gov/businesses/small/article/0,,id=154555,00.html

Money Services Businesses Can Help Fight Money Laundering

Suspicious Activity Reports (SARs) are one of the government’s main weapons in the battle against money laundering and other financial crimes since these reports generate leads that law enforcement agencies use to initiate money laundering investigations.

When to File a SAR

An MSB must file a SAR when it knows or suspects that:

  • The funds come from illegal activity or disguise funds from illegal activity;
  • The transaction is structured to evade BSA requirements or appears to serve no known business or apparent lawful purpose; or,
  • The MSB is being used to facilitate criminal activity.

There are two different dollar thresholds that require a SAR.  They depend on the stage of discovery and the type of transaction involved.  A $2,000 threshold applies if a customer is conducting or attempting to conduct a transaction(s) that aggregates to $2,000 or more.

 

Questions for Timmay

Am I an MSB?

http://www.fincen.gov/financial_institutions/msb/amimsb.html

 

Wed, 02/23/2011 - 22:35 | 991310 SilverRhino
SilverRhino's picture

deleted

Wed, 02/23/2011 - 22:26 | 991312 SilverRhino
SilverRhino's picture

You forgot the important issue. 

EVERY mortgage modified will be in recourse states where MERS abuses were the worst.  WHY?

 

So the mortgage company gets a NEW wet signature and can complete foreclosure during the inevitible foreclosures at a later date. 

 

I wouldn't mod for anything under 50K minimum. 

 

Wed, 02/23/2011 - 22:41 | 991365 Harmonious_Diss...
Harmonious_Dissonance's picture

Hey, C/mon now, what if he threw in a free I-Pod?

Wed, 02/23/2011 - 22:43 | 991379 Das Capitalist
Das Capitalist's picture

Yep.  The banks would love this because it would legitimize the wholesale fraud of the mortgage loan-sharking and foreclosure process.  $2000 per home is much cheaper than the cost of litigating even a small percentage of foreclosures.

Wed, 02/23/2011 - 23:53 | 991626 andybev01
andybev01's picture

Nothing less than than the iPad II.

Thu, 02/24/2011 - 05:16 | 992148 Arkadaba
Arkadaba's picture

Yes:

The cost of those writedowns won't be borne by investors who purchased mortgage-backed securities, these people said…

Wed, 02/23/2011 - 22:46 | 991388 puckles
puckles's picture

This is well beyond What the Fuck.  It is the utter determination of this Administration to kill the middle class permanently.  I guess that Obama thinks that this is his Roosevelt Moment.  Well, he is beyond wrong.  Most have yet to hear of this, but when they do, I can almost guarantee a shitstorm.  He is fucking with the (few left) people who pay taxes.  Most of them also run businesses, as I used to do.

When can I sign up for an underwater mortgage?  Unfortunately, I have no debt.  That ended in 1992, by great design on my part.  But these assholes, who are total morons, thought that they could take on mortgages for well beyond anything they could ever begin to pay.  Why the hell should my taxes pay for their idiocies?

Wed, 02/23/2011 - 23:11 | 991466 topcallingtroll
topcallingtroll's picture

+10000000

Wed, 02/23/2011 - 23:38 | 991565 Beatscape
Beatscape's picture

Rewarding the incompetent does not advance society or the economy. More left-wing hand outs create a moral hazard.

Wed, 02/23/2011 - 23:46 | 991592 downwiththebanks
downwiththebanks's picture

Except the handouts really go to the banker-gangsters who have screwed over every wing under the sun.

They get a free pass from you, however.

Thu, 02/24/2011 - 00:23 | 991708 NOTW777
NOTW777's picture

LOL someone junked you.  Either they want to reward incompetence or they dont want society to advance and or they want to create moral hazards

Come on

Thu, 02/24/2011 - 03:25 | 992098 Popo
Popo's picture

There are only two options: You're either a serf, or an expat.

Choose one.

Wed, 02/23/2011 - 22:56 | 991414 10kby2k
10kby2k's picture

Why not just approve $1 trillion---up to 100K of the appraised underwater amount (i'll get a loan on my cash purchased home 100K greater than the amount its worth with the fantastic collateral i have)

Wed, 02/23/2011 - 23:18 | 991494 Sylvia Plath
Sylvia Plath's picture

This is B/S. And the funniest thing is that it takes action in the mideast to bring down the otherwise levitating POMO market... I can't wait till either QE3/4/5 happens and the USD debases!

 

Silver Biatchz

Wed, 02/23/2011 - 23:19 | 991495 greyghost
greyghost's picture

20 billion is a "WTF" my daughter and her husband are joining in a "mass litigation lawsuit" against bank of america because of countrywide. bank of america has proposed a $1 billion settlement....lawyers laughed them out of court, said we will see you in the courtroom. these lawyers have done their home work. did test jury polling in 4 counties and went with the county that "every" pontenial jury member had a family member that had been screwed by the mortgage boys. the lawyers are looking for at least a $10 billion payment. i found it interesting that this law firm went with a state court lawsuit and not in federal court....anyone know why? the current judge alowed the to increase the number of defendents.....latest cast of the net garnered 40,000 request for information......now that is a "W T F".

Wed, 02/23/2011 - 23:37 | 991563 Fearless Rick
Fearless Rick's picture

Do you know the exact title of the suit? I have a BofA/CW loan and would love to join in.

Any info appreciated.

Wed, 02/23/2011 - 23:43 | 991581 GreenSideUp
GreenSideUp's picture

This is GREAT!  I hope they kick ass!  I keep wondering why attorneys everywhere aren't lining up to sue over the clouded titles and bankster fraud. 

Probably in state court because state laws were violated when mortages were not properly recorded. 

Wed, 02/23/2011 - 23:47 | 991602 downwiththebanks
downwiththebanks's picture

Careful here.  Tyler may cry that the socialists are coming after the banks unfairly.

There are socialists lurking everywhere!  They may even be hiding inside White Capitalists!

Thu, 02/24/2011 - 08:25 | 992273 4ndy
4ndy's picture

I agree, sometimes it's just unability to use the terms properly, maybe to shock or because of mass hysteria.

Thu, 02/24/2011 - 00:52 | 991793 Terminus C
Terminus C's picture

The lawyers will pocket 40% of the award... $4 billion for one case...  Now that is a nice payout.

Thu, 02/24/2011 - 00:01 | 991651 SparkyvonBellagio
SparkyvonBellagio's picture

1st Major Country to Default WINS!

 

They can place huge bets on the World Economic crash and be Solvent within the week.

 

 

 

Thu, 02/24/2011 - 01:23 | 991889 AssFire
AssFire's picture

That was Iceland... the only truly free country nowdays.

Thu, 02/24/2011 - 01:49 | 991964 caconhma
caconhma's picture

America, stop paying your mortgages. Let this fking president pay for everything.

Then, and only then America will recognize how it fked up and people will clean the country!

Thu, 02/24/2011 - 03:50 | 992101 Popo
Popo's picture

Yes.  But more specifically:  Stop paying taxes. Tax revolts are one of two forms of peaceful protest/civil disobedience that have any impact. The other option is to stop working, but that places the burden of suffering on the individual. Tax revolts hurt government quickly and brutally.

Thu, 02/24/2011 - 09:31 | 992410 RKDS
RKDS's picture

I see you've never encountered the payroll deduction.  Don't expect people living month to month to quit working.

Thu, 02/24/2011 - 10:03 | 992506 Ace Ventura
Ace Ventura's picture

I totally agree. The problem is how does one go about 'stopping' the involuntary extraction of money from one's paycheck. Unless I'm mistaken, there's no 'opt out' box to check when it comes to income taxes.

Thu, 02/24/2011 - 10:23 | 992574 -Michelle-
-Michelle-'s picture

No, but you can claim the highest number of exemptions allowable.

Thu, 02/24/2011 - 03:01 | 992087 e_goldstein
e_goldstein's picture

they were paid to btfd.

Thu, 02/24/2011 - 06:11 | 992169 Weisbrot
Weisbrot's picture

a lot cheaper than his names sake care, a lot cheaper than the bogus tarp, and even less than the $25 billion auto maker bailouts and we know that was good... wasnt it?

btw: dont forget chrysler is now italian (fiat like our monopoly money)

Thu, 02/24/2011 - 09:30 | 992406 dcb
dcb's picture

Oh horrors, the banks that engaged in major fraud all through the lending pathway from owning those mortgage lenders giving out ninja lona, to the securitisation process, to Mers which ingnored the whole title process and forclosed on properties they don't have the right to may have to actually pay for the mistakes they made. Lets not forget in fact the huge numbers that belong in jail. This isn't socialism, this is what should happen to an industry which thrives on fraud and illegal activity. After all the articles about the fraud in the process from the lenders to Mers, I do not understand how the banks can't be held with their feet to the fire for what happened. this is just deserts, just like toyota pays for a recall, these are recall loans given and sold lemon products. they are getting away easy at 20 billion. get real folks

Wed, 02/23/2011 - 21:57 | 991193 Joeman34
Joeman34's picture

I have an underwater mortgage with which he can experiment!

Wed, 02/23/2011 - 22:00 | 991208 rosiescenario
rosiescenario's picture

.....me too, but that $2,000.amount is nada...need more like $200K

Wed, 02/23/2011 - 22:06 | 991229 Cindy_Dies_In_T...
Cindy_Dies_In_The_End's picture

$2000. What a joke. That's almost the same as one of those .50 cent settlements cards you get in the mail for some warranty you bought 5 years ago that got sued in some class action.

 

Woopdeedoo.  Facepalm.

 

Of course, the country is full of ungrateful peasants. Didn't the King of Bahrain offer his people somewhere around that amount to please not riot?

 

Wed, 02/23/2011 - 22:43 | 991374 Captain Kink
Captain Kink's picture

Even if it was $20,000 for 1/10 the number of mortgages, how much difference can that make in the payment over 30 years?  ~$110 per month?! Absurd. 

If it's a joke, then Obama & Co. belong in a funny farm. Or I do.

Wed, 02/23/2011 - 22:09 | 991241 Harmonious_Diss...
Harmonious_Dissonance's picture

Me as well. +50% underwater. But I took the liberty to modify my mortgage myself, to zero, and now instead of morgage "pay day" I have silver "buy day" once per month. Couldn't be happier really, system is fucked! Hey that's just buisiness tho. Jamie Dimon says the happening new place is India:

http://www.youtube.com/watch?v=rXKP4gtd2Yk&feature=player_embedded

Wed, 02/23/2011 - 22:45 | 991387 beastie
beastie's picture

I said this already in the thread but it bears repeating. GET A LAWYER.

In the mean time feel free to use and distibute these docs to get you going.

http://screwtapefiles.blogspot.com/2011/02/sample-letters-to-send-to-scu...

Wed, 02/23/2011 - 22:59 | 991430 Harmonious_Diss...
Harmonious_Dissonance's picture

Yes VERY TURE. I am fortunate to live in a non deficiency state

Wed, 02/23/2011 - 23:46 | 991598 Fearless Rick
Fearless Rick's picture

I don't argue with the premise of getting a lawyer, but there's more to it. Get a GOOD lawyer, one who a) isn't going to screw you over with fees, and b) knows the issues involved.

Personally, I've already fired my lawyer (my FC case is in an estate matter), who, when I told him I'd like to fight the FC, said it wasn't "in his area of practice."

Haven't heard from he obnoxious turd in 12 months. If I ever do, he'll hear me tell him how he's lucky I don't sue for malpractice and report him to the bar. Disgusting parasite.

Without him, I've done fine, which actually has been doing nothing since the FC is n the bank's hands and they're stuck. So, another idea would be to do nothing until necessary. Depending on your state, foreclosures are lasting 2-3-4 years already. If you wait long enough, you may be able to take the property in an adverse possession action. Check your statutes, they vary widely, from 5 years to 20. It's 10 here in NY. I have 8 more to go. LMAO!

Thu, 02/24/2011 - 00:26 | 991714 Maos Dog
Maos Dog's picture

If you stop paying your mortgage and intend to adverse possess, be sure to pay your property taxes.

Wed, 02/23/2011 - 21:58 | 991196 Hephasteus
Hephasteus's picture

Bankers are useless fucking parasites. They pass every loss onto everyone. What are they going to do start producing something other than debt? They got nothing. They bring nothing to the table.

Wed, 02/23/2011 - 22:02 | 991214 PuppetRepubl1c
PuppetRepubl1c's picture

this  +1

Wed, 02/23/2011 - 22:10 | 991251 bruinjoe93
bruinjoe93's picture

We wouldn't have all those financial innovations like CDS and derivatives without the banks. How would we survive?

Wed, 02/23/2011 - 22:37 | 991355 flacon
flacon's picture

I don't know... who would "feed the poor", or "do 'god's' work"? 

Thu, 02/24/2011 - 00:32 | 991736 bunkermeatheadp...
bunkermeatheadprogeny's picture

Time to start introducing them to their boss.

Thu, 02/24/2011 - 17:42 | 994832 naughtius maximus
naughtius maximus's picture

What are they going to do start producing something other than debt?

 

That is all that a bank can do is issue debt. See Debt as money, the movie.

Wed, 02/23/2011 - 21:58 | 991197 CashCowEquity
CashCowEquity's picture

"can't someone else do it"

I never thought I'd see it actually happen...

Wed, 02/23/2011 - 21:59 | 991199 rosiescenario
rosiescenario's picture

....should be really good for silver prices and those select mining companies....bring it on!!

Wed, 02/23/2011 - 22:08 | 991238 MrSteve
MrSteve's picture

With two thousand dollars, we could all buy Scotch!

Thu, 02/24/2011 - 03:01 | 992085 A_MacLaren
A_MacLaren's picture

Make mine a Lagavulin 16 Year, please.

Neat.  Water-back.

Wed, 02/23/2011 - 21:59 | 991200 robertocarlos
robertocarlos's picture

Now that's comedy!

Wed, 02/23/2011 - 21:59 | 991201 Hammurabi
Hammurabi's picture

I dont see the link on The WSJ

Wed, 02/23/2011 - 21:59 | 991206 Rusty Shorts
Wed, 02/23/2011 - 22:00 | 991207 Caveman93
Caveman93's picture

O RLY? OMGWTFBBQ!

Wed, 02/23/2011 - 22:01 | 991210 Fred123
Fred123's picture

Obama is a worthless sack of _ _ _ _.

See you folks in Re-education Camp!

Wed, 02/23/2011 - 23:13 | 991476 topcallingtroll
topcallingtroll's picture

+10000000000000000

Wed, 02/23/2011 - 22:02 | 991212 Greenhead
Greenhead's picture

So, let me see if I get this, the people who bought the securities don't take a hit, the folks in the homes get a writedown, the guarantors don't take a hit, the originators who knew the buyers couldn't pay don't face  consequences but the servicers have to come up with $20 billion??? 

In other words, the taxpayers are on the hook...again!! 

What a country!!!!!!!!!!!

Wed, 02/23/2011 - 22:25 | 991309 Seer
Seer's picture

What part of "socialism for the rich" did you not get? :-)

Wed, 02/23/2011 - 22:35 | 991347 Michael
Michael's picture

Privatize the profits, socialize the loses.

It's the national pastime. Move over apple pie and Chevrolet.

Thu, 02/24/2011 - 04:56 | 992139 AnAnonymous
AnAnonymous's picture

"socialism for the rich"

 

The part socialism, socialism for the rich can not exist.

Wed, 02/23/2011 - 22:02 | 991216 BoeingSpaceliner797
BoeingSpaceliner797's picture

"In one fell swoop the teleprompter will not only grant reprieve to the banks for decades of fraudulent mortgage activity . . ."

There will never be a even a chance at justice until this rotting thing collapses on itself.

Wed, 02/23/2011 - 22:16 | 991273 Miss Expectations
Miss Expectations's picture

I always thought the saying was "one fowl swoop" like a (black) swan dive.

Wed, 02/23/2011 - 22:03 | 991218 Rodent Freikorps
Rodent Freikorps's picture

America committed suicide on Nov. 4, 2008. Why is that so hard to understand? Get over it.

Wed, 02/23/2011 - 22:14 | 991264 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Close, but wrong. 

October 3rd 2008.  POTUS don't mean shit.

Wed, 02/23/2011 - 22:42 | 991366 flacon
flacon's picture

How about December 23rd, 1913.

Thu, 02/24/2011 - 00:54 | 991800 Crab Cake
Crab Cake's picture

Well, in fairness to history, the story of the US is one of people desiring reasonable freedom vs wealthy interests; primarily being the og gangsta bankstas that now hide behind corps and the Fed. Federalists v anti federalists. Colonial scrip v gold payments demanded by Georgie who was owned by boe aka rothsxhild post waterloo. The death of the first two central banks. Andrew Jackson. If you're going with 1913, might as well go 1776; just say'n.

Thu, 02/24/2011 - 05:01 | 992144 AnAnonymous
AnAnonymous's picture

the story of the US is one of people desiring reasonable freedom vs wealthy interests;

 

Nope. In fairness ot history, the story of the US is one of people desiring to expand their wealthy interests under the guise of freedom.

The settlers wanted to expand on the Indian lands for example.

US citizens should stop repainting the US history. Might allow them to see that the US functions as it always does. Might be the cause though so many of them want to rewrite history.

 

 

Wed, 02/23/2011 - 22:06 | 991219 Bob
Bob's picture

It is unbelievable.  Socialism seems to be a misnomer, btw. 

It's the extension of the corptocratic domination we already should understand.  Now the banksters get off and the underwater homeowners get write downs?  (Not that mark to myth will be eliminated, mind you) 

C'mon, they're still gonna get foreclosed, in most cases as the direct result of the Great Bankster Depression. 

This is the sleaziest, most cynically empty scam I've seen in a long time.

Wed, 02/23/2011 - 22:14 | 991267 nevadan
nevadan's picture

I'm with you Bob.  A homeowner with a 500k note that is 30% underwater gets a $2k writedown.  How on Gods green earth could that help? 

Wed, 02/23/2011 - 22:26 | 991311 Bob
Bob's picture

Here's where our Community Organizer Barry shows what a bum fuck tool he is to the banksters.  But it makes sense to him . . . it's a workable compromise!

Compromise is better than sex to this sick fuck.

Thu, 02/24/2011 - 00:01 | 991650 djrichard
djrichard's picture

Compromise makes it look you're solving problems, even when you're not.

Thu, 08/18/2011 - 04:53 | 1571779 mediahuset
mediahuset's picture

e cigarette

I am certainly thankful to you for providing us with this invaluable info. My spouse and I are truthfully grateful, precisely the computer data we needed.

Thu, 08/18/2011 - 07:46 | 1571925 mediahuset
mediahuset's picture

kaspersky

I was greatly interested with what you have shared and posted with us. Thanks for this anyway.

Wed, 02/23/2011 - 23:49 | 991609 QQQBall
QQQBall's picture

Its not all we wanted, and its not perfect, and we can do better and we will do better... but it is a step in teh right direction. 

Barky Obama on every POS legislation he pushes.

Wed, 02/23/2011 - 23:50 | 991610 QQQBall
QQQBall's picture

Its not all we wanted, and its not perfect, and we can do better and we will do better... but it is a step in teh right direction. 

Barky Obama on every POS legislation he pushes.

Wed, 02/23/2011 - 23:16 | 991480 topcallingtroll
topcallingtroll's picture

Good.

We need to repossess faster. Get this over with so we can move on.

Wed, 02/23/2011 - 22:03 | 991220 dick cheneys ghost
dick cheneys ghost's picture

1933 hitler abolishes unions.......very apropo

 

http://nakedempire.wordpress.com/

Do NOT follow this link or you will be banned from the site!