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WASHINGTON (MarketWatch) -- The White House plan announced Wednesday to help as many as 9 million homeowners avoid foreclosure was greeted with generally positive reaction by homeowners and mortgage servicers that are responsible for collecting monthly loan payments.
But many private mortgage investors, owners of trillions of dollars worth of mortgage-backed securities considered to be at the center of the financial crisis, are less impressed. Many are preparing to file lawsuits against the banks and other financial institutions that service mortgages.
At issue is an Obama mortgage program that is designed to help homeowners struggling with loans to refinance or modify their mortgages. However, for many mortgage investors, dozens, hundreds, or thousands of modified mortgages violate existing contracts between them and borrowers.
"If you have servicers voluntarily restructuring mortgages, that's where you could see some litigation because the servicers would be restructuring the mortgages, but the investors would be taking the losses," said Michael Bopp, partner and chair of the Gibson Dunn & Crutcher's financial markets crisis group.
how? the banks took the tax payers money, 700 billion minimum worth, for those risky mortgages they issued...?
how? the banks took the tax payers money, 700 billion minimum worth, for those risky mortgages they issued...?
Your continual lies don't really help matters, do they Willow?how? the banks took the tax payers money, 700 billion minimum worth, for those risky mortgages they issued...?
forced to issue,, by the Democratic congresscritters.. yep
Your continual lies don't really help matters, do they Willow?how? the banks took the tax payers money, 700 billion minimum worth, for those risky mortgages they issued...?
forced to issue,, by the Democratic congresscritters.. yep
how? the banks took the tax payers money, 700 billion minimum worth, for those risky mortgages they issued...?
Not exactly. The banks sold the government assets and equity for a little over $300 billion from the first half of the TARP money. Obama is now deciding how to spend the second half, $350 billion, and he is proposing to spend some of it to pay incentives to mortgage servicers and and borrowers to refinance mortgages in ways that mortgage investors say will reduce the value of their investments. At issue is Obama's plan to make a cash payment to the mortgage servicer for each mortgage it lowers the monthly payment on, and investors say that produces a conflict of interest which might result in mortgages being modified to get the cash payment and not because they would result in foreclosures otherwise.
how? the banks took the tax payers money, 700 billion minimum worth, for those risky mortgages they issued...?
Not exactly. The banks sold the government assets and equity for a little over $300 billion from the first half of the TARP money. Obama is now deciding how to spend the second half, $350 billion, and he is proposing to spend some of it to pay incentives to mortgage servicers and and borrowers to refinance mortgages in ways that mortgage investors say will reduce the value of their investments. At issue is Obama's plan to make a cash payment to the mortgage servicer for each mortgage it lowers the monthly payment on, and investors say that produces a conflict of interest which might result in mortgages being modified to get the cash payment and not because they would result in foreclosures otherwise.
oh my gosh....you can't be serious, that they are bitching about this?
For goodness sakes, if these customers are not bailed out, these banks get NOTHING but a foreclosed home, that they will be sitting on for a very long time, with no payments at all being made on it and on top of all of the the value of the home would even go down lower with more and more foreclosures on the market and the bank would be taking in even less...
these greedy, slimey son of a bitches want us to pay their losses as well?
SCREW THEM....they are at least getting money every month for the property verses NOTHING in foreclosure, AS said.
What a mess. Someone, somewhere needs to pay a price...and the only logical thing to do is do what helps the economy overall.
Not exactly. The banks sold the government assets and equity for a little over $300 billion from the first half of the TARP money. Obama is now deciding how to spend the second half, $350 billion, and he is proposing to spend some of it to pay incentives to mortgage servicers and and borrowers to refinance mortgages in ways that mortgage investors say will reduce the value of their investments. At issue is Obama's plan to make a cash payment to the mortgage servicer for each mortgage it lowers the monthly payment on, and investors say that produces a conflict of interest which might result in mortgages being modified to get the cash payment and not because they would result in foreclosures otherwise.
oh my gosh....you can't be serious, that they are bitching about this?
For goodness sakes, if these customers are not bailed out, these banks get NOTHING but a foreclosed home, that they will be sitting on for a very long time, with no payments at all being made on it and on top of all of the the value of the home would even go down lower with more and more foreclosures on the market and the bank would be taking in even less...
these greedy, slimey son of a bitches want us to pay their losses as well?
SCREW THEM....they are at least getting money every month for the property verses NOTHING in foreclosure, AS said.
These are not the bankers who are threatening to sue. These are private investors, among them pension funds, charitable trusts, university trusts, mutual funds many people have in their 401k's, etc., who bought mortgage backed securities issued by the banks. Obama's plan offers reduced payments at the expense of the above investors, to anyone whose monthly payment is more than 31% of their gross income. That means the mortgage servicer, not necessarily the bank that issued the mortgage, can get a cash payment to include people who are making timely payments and that can lead to a conflict of interest.
Another problem is that a key element in the Financial Stability Plan presented by Geithner is his intention to entice private investors to buy debt backed securities from the banks, exactly the same securities some private investors are complaining his housing bill is undermining, and in an unrelated article, S&P is predicting the credit crunch will intensify because investors are already reluctant to buy new debt backed securities regardless of the quality of the debt they are based on. Without being able to sell these securities, banks will be unable to raise new capital for loans and the recession will continue to grow deeper and last longer.
Investor confidence is the key to economic recovery, especially investor confidence in these kinds of securities, and and to the extent Obama and the Congress undermine this confidence, they will be undermining their own recovery plan.
what would their stock be worth if the banks foreclosed?
if anyone should reap the profits, if any, when sold 10 years from now, it is us, the tax payers!
oh my gosh....you can't be serious, that they are bitching about this?
For goodness sakes, if these customers are not bailed out, these banks get NOTHING but a foreclosed home, that they will be sitting on for a very long time, with no payments at all being made on it and on top of all of the the value of the home would even go down lower with more and more foreclosures on the market and the bank would be taking in even less...
these greedy, slimey son of a bitches want us to pay their losses as well?
SCREW THEM....they are at least getting money every month for the property verses NOTHING in foreclosure, AS said.
These are not the bankers who are threatening to sue. These are private investors, among them pension funds, charitable trusts, university trusts, mutual funds many people have in their 401k's, etc., who bought mortgage backed securities issued by the banks. Obama's plan offers reduced payments at the expense of the above investors, to anyone whose monthly payment is more than 31% of their gross income. That means the mortgage servicer, not necessarily the bank that issued the mortgage, can get a cash payment to include people who are making timely payments and that can lead to a conflict of interest.
Another problem is that a key element in the Financial Stability Plan presented by Geithner is his intention to entice private investors to buy debt backed securities from the banks, exactly the same securities some private investors are complaining his housing bill is undermining, and in an unrelated article, S&P is predicting the credit crunch will intensify because investors are already reluctant to buy new debt backed securities regardless of the quality of the debt they are based on. Without being able to sell these securities, banks will be unable to raise new capital for loans and the recession will continue to grow deeper and last longer.
Investor confidence is the key to economic recovery, especially investor confidence in these kinds of securities, and and to the extent Obama and the Congress undermine this confidence, they will be undermining their own recovery plan.
if all of the 3 trillion put out there, was used from the get go on helping people keep their homes then every end of the financial spectrum involved in this, would have been helped, mbs-included....and including me, who paid cash for her home in 2006 and have seen nothing but it lose value since....., no?
no, they get the value of what was forclosed onI don't understand the motivation here.
These houses are in danger of going into foreclosure. If that happens don't these investors get hosed?
your continued ignorence of the facts dont eitherYour continual lies don't really help matters, do they Willow?how? the banks took the tax payers money, 700 billion minimum worth, for those risky mortgages they issued...?
forced to issue,, by the Democratic congresscritters.. yep
nice way to tell investors, DONT INVEST IN THISwhat would their stock be worth if the banks foreclosed?
if anyone should reap the profits, if any, when sold 10 years from now, it is us, the tax payers!
no, they get the value of what was forclosed onI don't understand the motivation here.
These houses are in danger of going into foreclosure. If that happens don't these investors get hosed?
