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Geithner To DeMarco: "I Do Not Believe [Un-Socialism] Is The Best Decision For The Country"
In an administration that has completely lost its mind, and in which the solution to every problem is the forgiveness of debt to those who lived beyond their means, FHFA's Ed DeMarco is a lone voice of sanity. In a letter to Tim Geithner, the FHFA has the temerity to tell the truth and say that "after extensive analysis of the revised [Principal Reduction Act]...FHFA has concluded that the anticipated benefits do not outweigh the costs and risks... FHFA concluded that HAMP PRA did not clearly improve foreclosure avoidance while reducing costs to taxpayers relative to the approaches in place today."Via Bloomberg:
- *FANNIE MAE, FREDDIE MAC WON'T WRITE DOWN LOANS, DEMARCO SAYS
- *FHFA'S DEMARCO SAYS PRINCIPAL REDUCTION WON'T BENEFIT TAXPAYERS
Needless to say, when presented with a minority opinion that socialism just may not be the answer, Geithner was not happy and penned his own response. Both are presented below.
STATEMENT BY EDWARD J. DEMARCO, ACTING DIRECTOR, FEDERAL HOUSING FINANCE AGENCY, ON THE USE OF PRINCIPAL FORGIVENESS BY FANNIE MAE AND FREDDIE MAC
Today, I provided a response to numerous congressional inquiries as to whether the Federal Housing Finance Agency (FHFA) would direct Fannie Mae and Freddie Mac to implement the Home Affordable Modification Program Principal Reduction Alternative (HAMP PRA). After extensive analysis of the revised HAMP PRA, including the determination by the Treasury Department to begin using Troubled Asset Relief Program (TARP) monies to make incentive payments to Fannie Mae and Freddie Mac, FHFA has concluded that the anticipated benefits do not outweigh the costs and risks. Given our multiple responsibilities to conserve the assets of Fannie Mae and Freddie Mac, maximize assistance to homeowners to avoid foreclosures, and minimize the expense of such assistance to taxpayers, FHFA concluded that HAMP PRA did not clearly improve foreclosure avoidance while reducing costs to taxpayers relative to the approaches in place today.
I have also previewed for Congress several housing-related initiatives to strengthen the loss mitigation and borrower assistance efforts of Fannie Mae and Freddie Mac as well as improve the operation of the housing finance market. These initiatives include new and consistent policies for lender representations and warranties, alignment and simplification of the Enterprise short sales programs, and further enhancements for borrowers looking to refinance their mortgages.
Letter from Secretary Geithner to Acting FHFA Director DeMarco on the Principal Reduction Alternative (PRA) Program
By: Anthony Reyes
7/31/2012Today, Secretary Geithner sent the following letter to Acting Federal Housing Finance Agency Director Ed DeMarco on the Principal Reduction Alternative (PRA) program. Read the full letter here:
***
July 31, 2012
Federal Housing Finance Agency
Office of the Director
400 7th Street S.W.
Washington, D.C. 20024
Dear Acting Director DeMarco,
I am writing in response to the decisions announced in your letter to Congress today. While I was encouraged that the Federal Housing Finance Agency (FHFA) is making progress on some initiatives we have discussed that will help the housing market recover, I am concerned by your continued opposition to allowing Fannie Mae and Freddie Mac (GSEs) to use targeted principal reduction in their loan modification programs.
FHFA is an independent federal agency, and I recognize that, as its Acting Director, you have the sole legal authority to make this decision. However, I do not believe it is the best decision for the country, because, as we have discussed many times, the use of targeted principal reduction by the GSEs would provide much needed help to a significant number of troubled homeowners, help repair the nation’s housing market, and result in a net benefit to taxpayers.
Indeed, notwithstanding the selective numbers cited in your letter, FHFA’s own analysis, which you have shared with us previously, has shown that permitting the GSEs to participate in the Principal Reduction Alternative program (HAMP-PRA) could help up to half a million homeowners and result in savings to the GSEs of $3.6 billion compared to standard GSE loan modifications. Furthermore, if the GSEs were to participate in HAMP-PRA, taxpayers would save as much as $1 billion on a net basis. In view of the clear benefits that the use of principal reduction by the GSEs would have for homeowners, the housing market, and taxpayers, I urge you to reconsider this decision.
I have asked Michael Stegman of my staff to restate in writing for you the case for principal reduction, consistent with FHFA’s mandates as conservator and regulator of the GSEs, that the Treasury has made to you and your staff over the last several months. His memorandum is enclosed. Treasury stands ready to provide any additional analytical support to make a targeted principal reduction program at the GSEs successful.
We welcome the positive steps you announced today regarding further refinancing opportunities, providing clarity to lenders on legal exposures, aligning short sale practices, and putting foreclosed properties back on the market. All of these have the potential to help advance recovery of the housing market. As we have previously discussed, the impact of these steps will depend on the speed with which you act and the extent of the changes you make.
Five years into the housing crisis, millions of homeowners are still struggling to stay in their homes, and the legacy of the crisis continues to weigh on the market. You have the power to help more struggling homeowners and heal the remaining damage from the housing crisis. I hope you will move to address these problems with a sense of urgency and force commensurate with the scale of the remaining challenges.
Sincerely,
Timothy F. Geithner?
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What can the man say, some pigs are just created more equal than others.
See you guys around the fire drum! I'll bring the harmonica.
I'll bring the hooch.
"No risk of that"
-TG
Geithners words:
Treasury stands ready to provide any additional analytical support to make a targeted principal reduction program at the GSEs successful.
Translation:
Treasury stands ready to provide any BS the market will take, and I'll put my name to it since I am a bold faced liar. Since I have no future and since the future of this Admin rests solely on lies, I will continue to tarnish my name to make a targeted principal reduction program at the GSEs successful.
Get lost Geithner, you first class loser.
Little Timmy Geithner, who is and always has been a bag boy for the best friends forever of the New York Branch of the Federal Reserve 'Bank,' was really hoping he could deliver this pre-election 'solid' to those TBTF friends. He must be livid.
What Timmmmmay was really hoping to accomplish was to get a political win couched in the language of "we're helping distressed homeowners," while providing even more taxpayer and deficit-derived funding of still troubled financial instititutions, who are directly (via holding much of that underwater MBS) or indirectly (via being exposed in a myriad of other ways to those that are holding much of that underwater MBS- can't get paid by the insolvent).
Here's just one line (of many) that was the sugar bribe in the making that Timmmmay was hoping would seal the deal:
Of course, there were a plethora of other ways Timmmay's targeted principal reduction program hope and dream program would have benefitted those best friends forever of the NYFRB, also. Think of it as TARP/TALF version 2.0 (or 3.0; or 4.0; which one are we on now?).
Ya' dig?
Methinks Eddie will be 'retiring' from his post shortly.
Dear Timmy:
Fuck you, the horse you rode in on, and the pack mule carrying your supplies.
Love,
Ed
Dear Timmy:
Fuck you.
Stronger letter to follow.
Love,
Ed
"Dear acting Director DeMarco,
You're Italian....What part of Ponzi don't you understand?? The Pon or the fucking Zi??"
yours etc,
little Timmy Geethner
They need to get another Goldman Sachs derived super-crook slotted into that position fast.
Dear Mr. Geithner,
Fuck You hard up the ass with a pole axe.
Sincerely, A taxpayer(something you know little about)
..from each according to his ability, to each according to his need.
...from each according to my desire, to me according to my wish..
"..from each according to his ability, to each according to his need."
From each according to his ability to steal, to each according to his greed. Fix it for ya!
Also should get Marx turning in his grave
Marx is giddy because capital (with the help of the state) is destroying itself, he said it would, though not quite in the way it actually is/has/will. And the proletariat gets thrown under the bus, again.
And this one is a stunner: ".... and result in a net benefit to taxpayers"
So, the taxpayer who are the people standing behind these government guarenteed loans benefits from having the principal reduced? It really is going to be a hoot when the taxpayer gets presented with the bill for all these guarentees and it turns out the taxpayer doesn't have the money to make good on them.
FHA is Uncle Sam's 3rd bad bank, largely overlooked by our governing overlords. They've been fudging their anticipated delinquency rates, which are independently estimated to come in at 30% within 5 years for the 07-09 vintage underwriting.
http://www.bloomberg.com/news/2012-06-28/fha-underestimates-mortgage-delinquency-rates-study-says.html
I'm SURE we will all be seeing this, along with an explanation of why Socialism ALWAYS fails, on tonight's network Evening News shows, right??
Hello??
Is this thing on.....?
Yah, das Real Estate is gefallen, un the 12 mio undervasser is goot, print more Herr Bernanke, mit der floaten das Bismark uber alles.
and now a word from my street Pro in REEEl Estate, kicking the can down the road a little longer with Barney...
swing it....http://youtu.be/bNmcf4Y3lGM
Now's a good time to buy.
Where's the beef, Mr ParkAveFlasher? ;)
"The canned pork & beans crisis is contained."
--Timben Geithnanke, March 2016
I haven't lived beyond my means yet. When is my turn? I know I can do it if I just had a chance.
Not everybody lived beyond their means...Crazy how everyone is ready to blame the homeowners, even the Tylers on this one.
The truth is that the MAJORITY of the people who bough during the housing bubble have already lost their homes. Unless some here think people have been living rent free since late 2006(the peak here in Los Angeles) Things are simple worse for those in the middle class than some think.
So wait, Fannie and Freddy get bailed out and now they don't want to write down loans? So they get free money just like the banks and they dont want to write down so people can afford to live there. Well, ok then let them not pay a mortgage, the house will be left vacant for many months, broke students will not buy it and then more governement banker/Investors will buy them for pennies on the dollar(at least here in Los Angeles)
I mentioned weeks ago about JCP laying off employes before their CEO bailed and their stock had been going down. I talk to people and figure things out but don't blame the working class.
FACT: Dish and Direct TV have been doing well due to so many umemployed people watching tv since jobs are hard to find but Direct TV has layed off some people and Dish has limited overtime. In about a year they will see a reduction in customers just from unemployment benefits going down, so these people that get laid off or working less are not living beyond their means.
Going to some clubs here and they are not full, in fact, when we get a table it is normally 240 for bottle service, just this Sunday they offered it to us for $100, they are hurting too.
Fuck the bankers and fuck the fed and DC.
While I have said that the majority of Americans are stupid, it's because they trust thier politicians to do the right thing. If I were to run for President I would vow to be publicly executed if the majority of public felt I did something to harm the US. You can bet right quick the Fed would be gone withing 1 second and maybe my life would be ended quite quick as well.
Wow you arrived at some incredible conclusions from one comment I made about nobody in particular...
What conclusion? I stated a fact about JCP, DISH, Direct TV, patronage being down around lots of places, other ZH's have mentioned it about stores.
Thing about your comment was that the majority that lived over their means have already lost their homes, down payments and yet they keep being blamed while the bankers have their jobs and bonuses from us the tax payers, that is all I meant.
To the junkers, I don't mind getting junked(red badge of honor) but man up and explain why...
You did it again. Tell me you don't realize that you did it again.
Because you just told us you're blowing your money in a club while bitching that you can't pay your mortgage, all the while expecting me to bail you out.
Try really living within your means and paying your bills.
When did I ever mention that about me??? take your medication and go back to school, son.
Do I have to junk you first before I man up?
"Not everybody lived beyond their means...Crazy how everyone is ready to blame the homeowners, even the Tylers on this one."
True, not everybody, just most. Through the 80's and 90's I was in construction in the suburban sprawl north of the DFW Metroplex. They advertised the prices of the homes for each subdivision on huge signs "starting from the $1,000,000's" etc. These houses were pieces of ----. worth 50k tops. But suckers bought in lock stock and barrel; sure that prices could "only go up".
A few years later, as a mailman, I delivered certified letters from the grocery stores(bounced checks) to these same houses. The house looked nice, they had a new Lexus in the driveway, and the lawn was manicured. But when they answered the door you could see that a bean bag chair, a tv-tray and a tv on a milk-crate was what they had for furniture.
They sunk everything into these "McMansions", barely making the payments, thinking to retire and flip them for a profit.
Surprise! the price didnt go up. These are the underwater folks wanting a bailout. Tell me they didnt know they were living above their means!
PP, I am talking about homeowners, not people looking to flip and home, you are way right because it also happened during this bubble. I am also stating that the majority that bought at the peak or before have already lost their homes and that a good amount now have lost wages due to losing jobs.
Yeah,
I also know of good, decent, charitable people who have lost their homes too. Bubbles punish the good as well as the bad, but in this case the bad were bailed out and the good were mocked for trusting the bad to be as good and decent as they were, but maybe judgement day hasn't quite arrived yet:
http://markets.financialcontent.com/stocks/news/read?GUID=21919147
http://www.infowars.com/11-signs-that-time-is-quickly-running-out-for-the-global-financial-system/
If you purchase a home on credit, then you are a speculator... period, end of story. Please do not try and differentiate between flippers and anyone buying a home to live in... there is simply no difference nor should there be any public policy support for different treatment.
I agree that there are responsible people who are losing their homes due to lost wages. And that is a shame. But my point is that people (and they were homeowners) were making bad decisions 25-30yrs ago, and it was obvious to a 25yr old construction worker at the time. Why should they be subsidized for their bad decision?
Whether it be homeowners, Bankers, or Investors; I think "caveat emptor" buyer beware. If you make a bad call, accept it. Dont expect a "mulligan".
BTW, I didnt junk you.
Like I said I agree with that, NO BAILOUTS, let them all fail but now we have selected bailouts or..."Theft"
Anyone who bought 25-30 years ago and is still living in the same house should not ever be underwater. Todays prices are still higher than 25 years ago. The ones that bought 25 years ago and refinanced every time they wanted a car or vacation are screwed as they should be.
They bought into an "investment" scheme constructed and promoted by the banks, real estate and financial industries as a whole. Who would be willing to live without furniture without the illusion that the sacrifice was for a longer-term goal that would make it worthwhile?
Now they're the guys who eat the loss, rather than the organized professional fraudsters who already got paid.
At least it ain't socialism. But, then again, neither is it a surprise. From April, 2006:
http://michael-hudson.com/wp-content/uploads/2010/03/RoadToSerfdom.pdf
It should be obvious to everybody that the government/taxpayers shouldn't be covering the tab. But when banksters own the government, that's how it goes. So now we sink to neighbors blaming neighbors (except in the Hamptons.)
If someone is unemployed and on "unemployment benefits" why the hell are they not out looking for a job or polishing their resumé instead of paying for and watching satellite TV? If they must watch TV, local is free!
I agree but I am telling you what installers for these companies tell me. Talking to some of their customers, some, not all are recently laid off(husband or wife) and wanting to collect checks for sometime, probably because Obummer has extended it for some time. I am not talking about me, I don't watch TV.
So spending $240 to go to a club and get bottle service, whatever that is, must be part of your definition of being able to afford to live there? Sorry, but that seems to be a twisted view of living within your means.
I do live within my means, and I have never spent anywhere near that much to hang out in a 'club'. The sad part about this is that now I'm going to need to bail out people like you, people that think being able to spend $240 for bottle service is some sort of right, and then have the balls to bitch about it.
I work and do not and will never need your money. I don't go in by myself and think I'm some baller throwing money away so quit jumping to conclusions. We go in as a group, it's better than buying expensive drinks and the point(which you obviously missed) was that they are now charging $100 where at least 6 months ago it was $240
Perhaps that bottle service comes with a complimentary Nuk.
So you used middle class and bottle service in the same post... clearly you're on the front lines...
The entire western world has been living beyond its means since before you were born. It's systemic. Relative to the very high baseline, some live a little further beyond than others, some less so.
The effects, via normalcy and anchoring biases, this has had on our society are incredible, surreal even. An unimaginable amount of wealth and natural resources (a form of wealth, of course) has been squandered and destroyed to sustain the unsustainable.
People in the rest of the world are lucky to have an apartment and double so to have a car, and you're telling me about bottle service and club occupancy? Easy money is the ultimate weapon. We call people poor who can use their EBT to buy most anything they please at every major retailer. It's a psychological weapon.
Let's make it fun and allow principal reduction only for those who refinanced and got cash out. They did live beyound their means. They needed boats and Lexuses! It's only fair.
I have a better solution, why not clawback the spreads on the loans and the underwriting fees from the Banks and individuals that benefited from the original loans.
I have a better idea, Dissolve the FRB and have them take the hit on FRN. After all, all house were paid for with FRN.
Fuck you, Timmay!
Come on, Timmy didn't write this letter, TurboWrite did.
The bubble was caused by irrationally exhuberant demand and lending, not by too much supply.
Limiting the supply of housing would not have eliminated the bubble and probably would have made it worse by helping to drive up housing prices and thereby reinforcing the irrational boom psychology. http://www.freefdawatchlist.com
It was the voracious need for feedstock for the largest fraud in history.
Banks leaned on valuers to up valuations.
The income stream on mortgages was then monetized into capital via rmbs bonds.
Not happy with the 30% clear profit on that,the banks then decided to sell the collateral
underpinning those bonds TEN times under cover of MERS.
Then they took out the CDS contracts on those tenfold sales.
Then the banks leaned on the taxpayer to fund the CDS via TARP,non recourse,The NY Fed
changed the terms from recourse.Wonder why ?
There is $12 tn in profit from all this sitting in bank accounts somewhere,by my
estimate(maybe more,but not less).
Why is nobody following the money ?
Because they feel entitled to what they "earned" and want us to fight over how bad their privatized shell goobermint is for even thinking about taking it back. It seems to be branded as "liberty."
Geithner is an evil lunatic, not to mention liar, tax cheat, and all around cocksucker.
Fuck you Geithner!
hey Timmy! wanna do some crack? Janet Napolitano is bent over, cheeks spread wide!
Minus one for ruining my lunch.
Napolitano Crack? that is Star Trek Ass... Go where no man has gone before!
Hey Timmy, fuck you.
A taxpayer.
Fuck you Geithner!
The lone administration (dissenting) voice rarely gets the worm. It does often get the boot though.
"There is no dissent in team bro."
I <heart> mixing metaphors.
I think the saying is something like this:
The squeaky wheel gets a couple of self inflicted gunshots to the head.
pods
The problem makers become to problem solvers, then repeat...
Sincerely,
Timothy F. Geithner?
Ron Burgandy does the same thing with question marks. He is also probably smarter than Geithner.
so many people had the 'fuck you Timmy' idea at once. Sort of like hearing it stero. Ah, the voice of the people
Violent anal fornication upon you, Mr. Geithner sir...
You'd have to be an evil, right wing nazi to oppose a program with such a wonderful sounding name as Principal Reduction Alternative Program that won't do any more than the other "solutions" to the housing crisis.
(Note to Timmah: It's the jobs dude, people who don't have jobs tend to struggle paying their mortgages.)
What a fucking idiot we have as Sec of the Treasury...
The answer is wonderfully simple; it's perfectly clear. All underwater homeowners turn in the keys (just drop off the key, Lee, and set yourself free) and move. Then if the noteholder comes at you for some more money, file bankruptcy because you probably have other debts anyhow. It's perfectly legal.
Don't ZHers want a reset of the system?
"targeted"
so the great obama and the tax cheat will decide who......iwonder how they will decide
nevermind
By consulting the Federal Election Commission and seeing who doubled their contribution from 2008 to 2012 Obama campaigns.
Oops, was that a rhetorical question?
FORWARD. TO FORECLOSURE (Like Back to the Future)
http://youtu.be/bNmcf4Y3lGM
More hamp hump cump dump lump loser, loan.
10 million underwater neg equity homes cant be wrong...we got votes....FORWARD. TO FORECLOSURE
1099 again? Wheres my tubo fraud tax? i just got 25 Mio business 1009 me out of a job.
Timmah, wheres my Hamp humb chump dump lump loan: wheres my no doc loan, wheres my fraud a nomics fraudie mae no income verif loan for my kick the can a little longer like the Dud Dodd and Blarney Frank Fraud loan?
I need my Mc Masion to suck on the tits of fraud inflation and fed reserve debasement of currency and refi over and over for my liberal
lifestyle: its mine, i want it, i need it, and if its not free, Il sue...!!!!
Principal Reduction? give ti to me Timmah or ill burn it down to the ground, and not vote. LOL
FORWARD.
and now a word from our realtors; remember real estate its not a home ITS AND INVESTMENT.
http://youtu.be/bNmcf4Y3lGM
http://reason.com/blog/2012/07/31/federal-asset-forfeiture-skyrockets-un...
Encourage the cops to lie, cheat and steal (even more then they already do)and this is what you get:
Donald Scott, a 61-year-old wealthy Malibu rancher, was murdered in 1992 by a joint task force (comprised of members of the Los Angeles County Sheriff's Department, L.A.P.D., Park Service, D.E.A., Forest Service, California National Guard, and California Bureau of Narcotics ) conducting an early-morning raid on the pretense that Scott was growing pot on his property. Responding to his wife's screams, a clueless Scott grabbed a gun and confronted the intruders. Two bullets were pumped into him. No pot was found. Ventura County District Attorney Michael D. Bradbury released a report criticizing the task force for using false information to secure a search warrant. Bradbury characterized the effort as an attempt to use forfeiture laws to slice up Scott's considerable assets between the participating agencies. "Clearly one of the primary purposes was a land grab by the Sheriff's Department," Bradbury wrote. They had obtained an appraisal of the property weeks before the raid. Los Angeles County and the feds tentatively agreed to pay $5 million to Scott's survivors.
Can't you just smell the freedom?
Every one stoplight town now has their very own SWAT team.
pods
Egalitarianism applies to the (federal) state and it's hungry Podunk cities and towns as well..........right?
/sarc
http://en.wikipedia.org/wiki/Egalitarianism
Nice try Benny...looks like you may have to handle this one yourself.
Douche chill!
Being lectured about safeguarding the taxpayers by a known tax cheat must be a little galling. I'd send a one-liner - I refer you to my earlier letter.
"targeted principal reduction by the GSEs"
Who gets to choose the "targets"?
And how are the "targets" chosen?
Think voter base and re-election contributions.
Spread the loss across the few still paying taxes and avoid financial losses to non-GSE entities.
Ask John Paulson and "Le Fab".
I'm struck by the poor sentence structure of his letter. It shows a lack of intelligence or education.
or both.
or maybe, he's just a douche. As simple as that.
i think he is a doossssshhhhhhhhhhh!
I believe he received a B.S. in Pillaging and an M.S. in Plundering. Not sure about his grammar school records tho...
It's just ADHD. Had to send it out as soon as it fell out of his bucket. Didn't even have patience to wait until proof reading was done.
Hey Cow..whats up?
DeMarco sees zombie borrowers! Seriously. He is scared about the moral hazard risk of announcing a national principal writedown policy.
http://confoundedinterest.wordpress.com/2012/07/31/fhfas-demarco-say-no-...
Please allow me to pimp the best 5 minute video I have seen all year. Love to see this go viral. I think the ZH crowd will like it too....http://thecivillibertarian.blogspot.com/2012/07/this-is-years-best-five-...
Your post was right one. All should take a look see to this less than 5 minute presentation-and stunned faces. Milestones
That lone voice of sanity assumes that FNMA and FHLMC bought this junk from someone who had the legal right to sell it in the first place.
There is also the "little" mark to fantasy problem...
Fuck you Timmy and fuck you too DeMarco.
Exactly, if he was such a public steward, then he'd be stuff the bullshit from where it came... my guess is that the assignments are bullshit... and that the downstream assignees can pull the plug/bail/rescind if they want.
So let's get down to it... putbacks... putbacks... putbacks... without taxpayer backing of the parties forced to eat the turds.
Timmay wants a carrot dangled in front of all those impaired mortgagees.
With a refi, the banks get a foreclosure mulligan.
pods
I'm actually thinking about refinancing... without paying any additional down, it would probably knock off 1/4 of the monthly payment and pay for itself in less than a year... it's presently owned by fannie and serviced by BoA... just seems like the logical play in a depression... may or may not be giving up a cause of action for issues w/ assignment... although, the only notices I received were local bank>b of a>fannie> then notice of service by b of a (who used to own the note).
If they want to drop rates on a 30 year to 2, then I'll see them again...
At some point, the actual value of the property is irrelevant... when the payments are fixed and de minimis, then the actual value of the property just doesn't matter much... you could sell and pull equity, but then you'd have to stuff the proceeds into another bubble... and hope to pick the right bubble...
This is hyperinflation... where UTILITY is the only differentiating factor...
If you have leverage a refi might be worth it? We went with an ARM several years ago and right now it is at the floor for the loan, 2.5%. They called me for a refi and I could not see a reason why I would want to.
You probably can get into something pretty low right about now. Especially if they know that you know that they cannot take the house.
Or the kids can be set up to fight over who has to clean up the turd. These are the kids with severe AD/HD and are not too bright . . . they get so caught up in the drama that they never stop to realize it doesn't belong to either of them.
Since circa 1995 houses were not primarily built to house people.
They were primarily built to house derivatives. What lands in the custody of Fannie and Freddie, by whatever means, are typically the most underwater/bad title properties out there.
Now all we would need is a Magic Electronic Secret database to make sure no one can track who owns what....
Naaa, that's too diabolical and would never fly, plus it sounds illegal. The DOJ would be all over a scandal this big in a NY minute.
Who's calling the shots over at DOJ? Holder and Breuer - two dickheads that thought MERS was a brilliant idea.
It's not possible to steal money from people that don't have any. Just give it to them and make a bet that they won't pay it back.
How much is there in unspent TARP money? Why wasn't it all returned to General Fund by now?
It is being saved for more communist shovel ready jobs. To fix the infrastructure for the 10th time in 5 years.
No one wants a 30-year lead weight tied to their ankle anymore.
Sorry.
No one want's someone elses lead weight tied their ankles anymore either whether it's the banks or the people who aren't paying their bills that money geithner is offering to pay isn't his it's OURS!
The banks money affect's their stock holders, geithner's plan affects Taxpayers.
Of course no one, not even the FED, said no to Wall Street. The taxpayer gets stuck with their debts and of course an economy that they destroyed. But nevermind.
Let's give them back all of the debt they unloaded on us. Now there's a plan.
MFG....PFG....TFG....I see a pattern. They all are based on acts of principal reduction.
So basically to forgive a couple of thousands $ to John is socialism but to grant for free a couple of billions to Buffett is perfectly good – is that is the point you try to make?
anfd how this GS creep - Geithner dares to speak about
socialism in the very same moment he try to take money from Germany in order to save Spain and Italy – let capitalism do its job – let them bite the dust along with the all other bailout-ed Wall Street freaks
Socialism for them, predatory capitalism for us. They win , we lose.
Hey Timmy! If you weren't sucking on CONgresses cock and weren't Obama's Ho, you'd be the first MF to kick all the people you say you're trying to help right out on the street!
These are mortgages that the american people just do not want, so we gave them to illegals for free.
I have asked Michael Stegman of my staff to restate in writing for you the case for principal reduction...
Translation: Turbo Tax printout enclosed.
So... a man who can't even figure out how to use TurboTax thinks he knows what is in the best interests of this country. Amazing.
Haha, good one Timmay. Of course it won't hurt that if there is a reduction, the new fresh note will now be enforcable in a foreclosure?
Always for the banks. With the difference made up by the very people the banks are shafting.
pods
DeMarco's stance is unreasonable in the context of Fictional Reserve Banking and predatory lending practices. Only from a foundation true free-market economics and sound money does he make sense.
Wipe the fraud clean first!
DeMarco may be a man of integrity and honesty. I hope he doesn't "commit suicide".
Timmy is KING. Contract law, tax law, and basically the rule of law are for the little people who are stupid.
In Virginia Obama is running a commercial fawning over the good rural people and their hard working ethics.
Based on rural country values, Obama should have Timmy behinf bars......HYPOCRITES!
Litte Timmy G.
I have a modest proposal. How about a turn in the keys program? Give the tax payers a one time opportunity to turn in the keys to the house and let them walk away from a purchase that would never have existed in the first place had not the bankers and the politicians colluded on policies that would help the housing bubble form. This one time program would allow the "homeowner" to walk away without damage to their credit worthiness. Lord knows there has been enough damage to them already. The banks can take possesion of the houses and sell them on the open market for market prices, and absorb the losses,since they got all the benefits during and after the bubble.
Five years into the housing crisis, millions of homeowners are still struggling to stay in their homes, and the legacy of the crisis continues to weigh on the market. You have the power to help more struggling homeowners and heal the remaining damage from the housing crisis. I hope you will move to address these problems with a sense of urgency and force commensurate with the scale of the remaining challenges.
Sincerly
A U.S Debt Slave
"The banks can take possesion of the houses and sell them on the open market for market prices, and absorb the losses,since they got all the benefits during and after the bubble."
I don't know of ANY bank that is taking a loss marking to market.
Fed bailout is the only mark to market that exists.
Exactly. The people are already free to turn in their keys and file bankruptcy... They stay in their homes because their creditors (and downstream assignees) cannot withstand the writedown/losses and, as a result, fail to pursue the debtors to the fullest extent of the law. It's kind of mind boggling how quickly people can become "intelligent" in the strategic default sense, but be so "stupid" on the bubble run-up...
Two words: adverse possession
First, how do you adversely possess your own land? (banks have liens, not title)
Second, it's practically impossible to prove adverse possession when possession begins with permission... failure to pay a note is probably not going to fly as "adverse"...
Last, I think the proper terms are: abandonment, statute of limitations, and standing to foreclose
Now... if you wanted to swap out houses with another strategic defaulter and start the adverse possession meter running... obviously any agreement to defraud your creditor(s) would render the entire operation void... so it would have to arise naturally...
Issue a quitclaim deed to a friend or relative. Have them evict you. Spend a weekend in a hotel and then move back in. Keep your utility bills, records of repairs, etc. as proof of occupation.
I don't understand how anyone could claim fraud without conveyance of false information.
What you're describing is de jure fraudulent conveyance... it's as though you don't believe there are hundreds of years of laws (and cases) dealing with exactly this subject... that our predecessors didn't have something incredibly similar happen... or that our predecessors didn't try and come up with loopholes (that have been subsequently closed)...
Aside from that, your state probably has a law that makes it illegal to convey titled property without paying off lienholders of record at the time of closing... so, at the very least, you'd need to set up an escrow for the payoff amount of the note... or, alternatively, interplead it into the court's registry. This is a jailable offense... and adverse possession must be continuous (expect to go to jail over this btw if you can't come up with the scratch).
The other thing you seem to be confused about... how is a conveyance to a friend going to rid you of the recorded lien?
Also, you have to notify your lienholder... regarding your intention to adversely possess... when your occupation arises out of permissive use, again, it's virtually impossible to overcome your burden of proof unless you expressly notify your counterparties. I very seriously doubt any court is going to give much credibility to a weekend dispossession of the property... all you're doing is falling back into your permissive use...
The better method would be for your friend to adversely possess the property from you for the requisite period of time and in the requisite manner... of course, this must be without your knowledge/participation, else it be fraud.
Seems like short term vision. Instant gratification. All grasshopper, no ant.
Watch for Demarco to be arrested on drug charges soon
I believe the proper protocol is a prostitute.
I would not trust Geithner any further than I could throw him.
DeMarco is the same douche at the FHFA that maintains a Proprietary Trading Desk creating Derivatives that pay off when homeowners fail to refinance......"FHFA, Freddie Mac’s regulator.....stood to profit from billions of dollars in positions that relied on homeowners remaining in mortgages with high interest rates."
Now we wonder why homeowners can't even refinance at a decent rate?
http://www.bloomberg.com/news/2012-01-31/freddie-mac-halts-use-of-derivatives-tied-to-high-interest-rates.html
Dirty Bastard should give EVERYONE who is current on their morgage a refi' at 0.5%. That would end the recession/depression in a few months when all the extra money got spent.
Geithner ought to be neutered.
Anybody still got that link of the guy singing Lololololo for 355 minutess?
These socialist/marxists don't get it.
This stinking pile of shit has got to be burned to the ground (the stock of shadow inventory, homes in the foreclosure pipeline, banks and Fmae/Fmac inventory) and let the market decide when it has bottomed out.
Every time the govt sticks its fingers in this we get mark-to-pixie dust, uncertainty in the market, and both buyers and sellers have no confidence in the bull shit.
Recovery in the housing market will come when people believe there is no man behind the curtain fucking with this shit.
Timmay's letter seems like a desperate attempt to rope in more voters for the TOTUS
Awwwh.....look at all the vultures with the sad face.
Why does this T always assume there is a loan to pay off by the home owner? Shadow MBS is larger than the real market and total value of loans at the fairy tale value. Then add the value claimed by the servicer/lender. That shows there are two parties selling what only one can possibly own. How many times does it have to be paid off before the real owner's debt is history? Think about it for a minute. How else will the economy recover if people don't get what has been stolen from them back? It will be chaos otherwise.
The bailouts paid these loans off because the banks couldn't write them down to real value without going bankrupt. It is all about ongoing crime bitch. Still banking with one of these plagues?
Could it be Zero Hedge’s influence is endangering the entrenched position of the Money Power as the Government’s government that holds the destiny of America and Europe hostage in its private hands?
Have the international imperialists of MONEY and their Geithner minions, after these many years of entrenchment, at last met a worthy antagonist in Tyler Durden who is successfully challenging their usurped position?
Has Tyler and the ZH Fight Club, wielding the power of the Internet, upset the trend of world affairs by empowering resolve in the DeMarcos, returning advantage to the people?
Well, you know Timmah does not give a single shit about homeowners in trouble. Or for that matter the real estate market. So there is definitely another agenda being served, and all things point to this as a program to fund his BFFs who will soon hire him, the TBTFs. So, for that reason, F U Timmah.
Every time I hear his name I ask why is he still around?
Just read "Bailout" by former SIGTARP Neil Barofsky.
In it he explains in much detail how the Treasury and especially Geithner fought tooth and nail against any kind of Principle Reduction program, which SIGTARP found to be an indispensable part of a working HAMP.
(The implemented HAMP so far has been an abysmal failure.)
And now Geithner seems to get attacked for finally agreeing on some? Hilarious.
sorry I don't have the links, but notice.
1) you don't see geithner pressuring the private banks tio reduce loans, this should give you pause very quickly to wonder what his intenet.
2) I don't know if the agency gets paid the same way banks to to forgive private loans
3) geithner wants fannie and freddie to not go after banks for mortgage fraud
4) by reducing tthe value of the primary loan, the value of the second mortgage increases because if default happens this loan is harmed first. I am rather certain the banks have a lot of secondary mortgages. this increases the values of their second mortgages
5) you should know enough about timmy, that anything he suggest should be looked at with a very critical eye in how it helps bthe private bankers. I for one with his dismal history (bernanke included) really don't trust anything he puts out there. It's the reason he should have gone long ago to his cushy no show wall street job. Why Obama stayed with him only god know. the problem is the people have no trust of him or bernenke, wshich is why both should have resigned long ago. It's a real falure of the usa that all these failures keep getting trotted out. Junker in europe comes to mind. Over and over these policy makers have been at the wrong side of history and they are still there!!
I wrote a bit nebulous "Geithner agreeing on some" because I also don't believe he really wants to implement any principle reduction program.
Maybe the whole deMarco thing is just orchestrated smoke and mirrors to that fact.
In and out of the power circle in Washinton looks good on the resume. I wonder if Tim G. will include his IRS experience.
Don't let TG back in the country.
I am all for non-violence, but why has nobody wrung this shit-bag wimp out like a dirty dish towel?
Hey Timmy, apart from debt firgiveness for those who cannot make their payments, how about tax forgiveness for those who do not have the time to lodge tax returns? I am sure you will be sympathetic to this propsal.
Really? $7,200 per "helped" homeowner (assuming every dollar of "savings" flows to principal reduction, which it wont, but...)?
Doesn't anyone in Washington use a calculator anymore? It's not like they're expensive or hard to use.
Kinda makes you wonder whose ox the Timster is trying to keep from getting gored. An errand boy, sent by grocery clerks to collect a bill (...and not a particularly good one at that). The Horror
Substantively, none of this matters worth a shit.
No one has $100,000 plus in cash for a down payment.
NO ONE HAS THE FUCKING CASH.
So stop talking about 'housing recovery' for Christ's sake.
Bloomberg ran a story this morning about housing green shoots or something with the lead example having just bought a $520K home (new build) outside of Dallas.
Waaaay late in article they get back to this guy and mention his job: He's a DIRECTOR at a corporation.
Wow. Great example. An executive is able to scrimp and save for his down payment and that is indicative of what exactly?
Nothing. That's what. And that's what this Timmay-Freddie dialogue will amount to, whichever way it works out. Nothing.
"Something for Nothing," "Action without Reaction," "Denial" and "Reward Evil" are hardly first principles upon which to build and uphold a nation.
Thank you DeMarco we have enough debt to pay for...
Obama's Budget Has One Small, Missing Piece.... For $6.3 Trillion Dollars
oday, to much fanfare, the administration released its ridiculous $3+ trillion budget (we say + because at that size the one thing certain is that the budget will certainly never hit the target and while we wish it would be lower, we are certain it will end up materially higher), which consists of a "short" 192-page summary section and a 1420 page appendix. We are confident that not one politician will read the whole thing from cover to cover. We won't either. Not because we don't care about what's in it, but because we are much more concerned with what is not included, namely $2.8 Trillion and $1.9 Trillion of MBS guaranteed portfolios at Fannie and Freddie, and an additional $782 billion and $809 billion in company debt outstanding for the two GSEs, respectively. This amounts to a total of $6.3 trillion in liabilities which should be counted toward the budget. And yet, oddly, the error-checker somehow made this rather justifiable omission: after all if we were to look at a number which written out looks as follows $6,264,000,000,000.00, we would also probably just avoid it - it is somewhat difficult to hide a number that big even in the 1,420 pages of the budget's appendix. That's ok, we are here to remind them about the omission, and also to remind Mr. Orszag, who himself, in that long ago 2008, espoused that these companies should be put on the Federal Budget.
more
http://www.zerohedge.com/article/obamas-budget-has-one-small-missing-piece-63-trillion-dollars
Corporate Crime, Russia, Peter Orszag and Getting Away with Murder
http://corporatecrimereporter.com/morgenson07282011.htm
Now Mr. DeMarco what are you going to do about this?
Saying ‘You’re Fired’ Is the Only Answer Here
http://www.bloomberg.com/news/2012-07-26/saying-you-re-fired-is-the-only-answer-here.html
"targeted principle reduction" translation write offs for immigrant loan fraud.
I have never thought this many zerohedgers would be so blind. Steve keen essentially is saying the same thing, but takes it even farther. U give everybody a debt jubillee. Imtyping on a cell phone
Just because timmasa tool doesnt mean its a bad idea
I certainly hope Mr DeMarco is looking under his vehicle for IED's and checking for tampering of his ignition system.
Not necessary. His acting directorship has to turn into a pumpkin after 240 days in office.
If Timmy were to really want to heal the fact that I pay my mortgage while my friend buys a $1/2Mill house with no job, 20% of interest-only payments for 5 years, stops making any payments for 2 years before getting kicked out- I would feel better to see the Gov open an independent agency, sieze all the foreclosed property (emminent domain), sell it for reasonable value on the market and divy the profits up with the faithful mortage payers. I might feel better.
Timothy Geithner reminds me of Adam Newman from my wife's Young & the Restless soap opera.
ikf geithner wants the program the only thing I know is that in some way it can be gamed by the big banks. I am not sure, but from what I recall it makes their second mortages mole valuble because secon follws fikrst in case of default, so it means the second mortgage is more likely to be paid off.