Rep Waters wants Obama to extort banks into letting people keep homes they cant affor

[Jarhead]

There's absolutely no need to "tax" them.

Move government accounts out of banks..and have government review some of the business practices in which the government uses banks as a conduit to provide loans.

Those things alone would be a nice little incentive to re-think mortgages.

uh....do you forget who was overseeing the lending industry?

Do you forget who was wanred of th issue years ago but failed to heed the warnings?

Government is NOT the answer.

 

[Kuros]

Maxine Waters is talking about loan modification agreements under the Home Affordable Mortgage Program (HAMP). I've had some involvement in this area so I hope I can shed some light on this issue.

I am against forcing the banks to make new loans to people who can't afford them. However, for the loans that are currently out there, the banks should be forced to accept most reasonable short sales. A borrower shouldn't have to be close to bankrutpcy, late on the mortgage or in serious financial troubles. The bank need to take a hit also.

The banks should also be forced to give borrowers loan modification. Part of taking TARP bail out money was so they would give loan mods. The banks have done everything possible to avoid loan mods. It's disgusting. If a loan mod makes the home affordable, then it should be done!

HAMP is a voluntary incentive-based plan. This means servicers have either chosen to participate, or must do so because the loan is Fannie/Freddie backed, or the servicer has been provided with TARP bail-out money.

HAMP eligibility for homeowners is limited to a cut-off. Homeowners who have no chance of affording their payments are ineligible. HAMP loan modifications are only for borrowers on the line. This is critical: HAMP loan modifications are only possible when the modification would be cheaper FOR THE BANK than a foreclosure. This means HAMP is designed to save banks money AND prevent borrowers who might recover from losing their homes.

Both servicers and investors receive incentives. This means several thousand dollars per modification, and more upon a successful sustainable modification.

Final HAMP eligibility is analyzed under the Net Present Value test. Unfortunately, these NPVs are hidden from the consumer and even the judge.

The banks have been terrible at organizing and implementing HAMP. They fall behind on deadlines and fail to provide timely NPV analyses. As a result, people are unable to get the loan modification analyses to which they are entitled. I've seen HAMP criticized by US gov't experts assigned to explain it to lawyers at CLEs. Its a poorly designed program with weak enforcement mechanisms.

Waters is absolutely right. The servicers are engaging in bad faith business practices and inequitable behavior. More critically, they are COSTING THEIR INVESTORS MONEY.

 

[WillowTree]

"Rep Waters wants Obama to extort banks into letting people keep homes they cant afford"

So we loan the banks billions of tax payer money under Tarp, but we cannot do anything for Middle class Americans? Talk about double standard hypocrisy! Sheesh!

doing the same thing over again even though it failed makes sense to a libtard donut?

 

[Remodeling Maidiac]

I dont understand how congress people who focus on fear and hate keep getting reelected.

 

[uscitizen]

That woman is bat. shit. crazy.

And she's corrupt.

is she supposed to use the tax system as a weapon? "We're gonna tax them outta business?" really! lends credence to the story that the banks were strong armed into loaning money to those who could not pay it back doesn't it?

Indeed it does. And the left likes to deny it....

Only 20% of the sub prime loans were made by regulated financial institutions.

 

[PLYMCO_PILGRIM]

She calls the banks gangsters and demands Obama to force them to allow people to keep the houses they can't afford. Says "we will tax them out of business" if they don't do what we want.

Now who is the gangster in this scenario? Seems to me its her. Not only that these people who got these houses they couldn't afford to begin with, got them because of democratic policies.

Maxine Waters wants Obama to use extortion - YouTube

I have a question.

By forcing banks to give away money (let people stay in a house they wont/arent paying for) is not the govt being the Gangster?

 

[Jarhead]

She calls the banks gangsters and demands Obama to force them to allow people to keep the houses they can't afford. Says "we will tax them out of business" if they don't do what we want.

Now who is the gangster in this scenario? Seems to me its her. Not only that these people who got these houses they couldn't afford to begin with, got them because of democratic policies.

Maxine Waters wants Obama to use extortion - YouTube

I have a question.

By forcing banks to give away money (let people stay in a house they wont/arent paying for) is not the govt being the Gangster?

whats to stop others from just "stop paying their debt"...who makes the decision that one cannot afford to pay their debt?

 

[Kuros]

She calls the banks gangsters and demands Obama to force them to allow people to keep the houses they can't afford. Says "we will tax them out of business" if they don't do what we want.

Now who is the gangster in this scenario? Seems to me its her. Not only that these people who got these houses they couldn't afford to begin with, got them because of democratic policies.

Maxine Waters wants Obama to use extortion - YouTube

I have a question.

By forcing banks to give away money (let people stay in a house they wont/arent paying for) is not the govt being the Gangster?

Everyone needs to understand one important point before this thread goes further:

Banks lose money on foreclosures. Lots of money. There's the 6-18 months of missed payments. There are the foreclosure sale fees. And then there's the reduced market value a foreclosure auction brings: remember that many of these sales offer a quit-claim deed and don't even allow the offeror to inspect the premises.

In well over 95% of the cases where loan modifications are at issue under HAMP, it is within the servicer's and certainly the investor's best interest to accept a gov't backed loan modification. But the servicers are sloppy and aren't acting within their fiduciary's (the investors') best interests.

 

[Trajan]

That woman is bat. shit. crazy.

And she's corrupt.

whatever did happen to that investigation of her getting her hubby a a bailout loan?

 

[Trajan]

this is all just a stupid mess. if a couple has a combined income of even say 100K and live in a 600K house, got it via NO DOWN, they have zero equity, guess what? they aint gonna make it, even at a 4% rate.

In addition, the FHA mortgage insurance has been moved up from .55% to 1%, people thats huge as well,it was a dumb move in light of what they are trying to do too.

 

[hellofromwarsaw]

#29-It was Pub Dupe BS.

 

[Remodeling Maidiac]

#29-It was Pub Dupe BS.

Its a wonder your rep isnt higher that 3 with mind blowing insight like this......

 

[bripat9643]

"Rep Waters wants Obama to extort banks into letting people keep homes they cant afford"

So we loan the banks billions of tax payer money under Tarp, but we cannot do anything for Middle class Americans? Talk about double standard hypocrisy! Sheesh!

Who is "we?" The majority of Republicans voted against TARP, and I certainly didn't support that incredible boondoggle.

 

[hortysir]

Maxine Waters is talking about loan modification agreements under the Home Affordable Mortgage Program (HAMP). I've had some involvement in this area so I hope I can shed some light on this issue.

I am against forcing the banks to make new loans to people who can't afford them. However, for the loans that are currently out there, the banks should be forced to accept most reasonable short sales. A borrower shouldn't have to be close to bankrutpcy, late on the mortgage or in serious financial troubles. The bank need to take a hit also.

The banks should also be forced to give borrowers loan modification. Part of taking TARP bail out money was so they would give loan mods. The banks have done everything possible to avoid loan mods. It's disgusting. If a loan mod makes the home affordable, then it should be done!

HAMP is a voluntary incentive-based plan. This means servicers have either chosen to participate, or must do so because the loan is Fannie/Freddie backed, or the servicer has been provided with TARP bail-out money.

HAMP eligibility for homeowners is limited to a cut-off. Homeowners who have no chance of affording their payments are ineligible. HAMP loan modifications are only for borrowers on the line. This is critical: HAMP loan modifications are only possible when the modification would be cheaper FOR THE BANK than a foreclosure. This means HAMP is designed to save banks money AND prevent borrowers who might recover from losing their homes.

Both servicers and investors receive incentives. This means several thousand dollars per modification, and more upon a successful sustainable modification.

Final HAMP eligibility is analyzed under the Net Present Value test. Unfortunately, these NPVs are hidden from the consumer and even the judge.

The banks have been terrible at organizing and implementing HAMP. They fall behind on deadlines and fail to provide timely NPV analyses. As a result, people are unable to get the loan modification analyses to which they are entitled. I've seen HAMP criticized by US gov't experts assigned to explain it to lawyers at CLEs. Its a poorly designed program with weak enforcement mechanisms.

Waters is absolutely right. The servicers are engaging in bad faith business practices and inequitable behavior. More critically, they are COSTING THEIR INVESTORS MONEY.

How is she right?
Did she call you an idiot or something??

We loaned banks money.
Was there any stipulations as to what they were required to do with the money?

When did it become acceptable to change the conditions of a loan after the fact?

Just because you loan somebody some money doesn;t them make them your bitch.

Maxine needs to move to Yemen and dance in the street in a bikini.

 

[bripat9643]

There's absolutely no need to "tax" them.

Move government accounts out of banks..and have government review some of the business practices in which the government uses banks as a conduit to provide loans.

Those things alone would be a nice little incentive to re-think mortgages.

So you have devised an alternate means of destroying the banks?

How does that make you any better than Waters the Marxist dingbat?

 

[hellofromwarsaw]

#29-It was Pub Dupe BS.

Its a wonder your rep isnt higher that 3 with mind blowing insight like this......

Rep is a Pub Dupe thing- kind of like the incestuous Fox, Rush, Beck, Savage, Rev. Moon, Krauthammer, RW blogger BS circle jerk you idiots quote all the time...Hoping for your recovery.........

 

[bripat9643]

Only 20% of the sub prime loans were made by regulated financial institutions.

There's no such thing as an "unregulated financial institution."

 

[Remodeling Maidiac]

#29-It was Pub Dupe BS.

Its a wonder your rep isnt higher that 3 with mind blowing insight like this......

Rep is a Pub Dupe thing- kind of like the incestuous Fox, Rush, Beck, Savage, Rev. Moon, Krauthammer, RW blogger BS circle jerk you idiots quote all the time...Hoping for your recovery.........

I went sam was california engine roller coaster yesterday frank takes....lsodiuhf gniugf hnwiuhnl;soudh

?

 

[Immanuel]

That woman is bat. shit. crazy.

And she's corrupt.

is she supposed to use the tax system as a weapon? "We're gonna tax them outta business?" really! lends credence to the story that the banks were strong armed into loaning money to those who could not pay it back doesn't it?

Don't forget... she is CongressPeople and she can do what ever the hell she wants to do. Just get in her way and she will tax you into bankruptcy too!

Immie

 

[bripat9643]

whats to stop others from just "stop paying their debt"...who makes the decision that one cannot afford to pay their debt?

You do when you file for bankruptcy. Any other way is highway robbery.