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"Action Needed on Loan Workouts" posted by ~Ray
Posted on 2008-11-27 14:29:04

The "Bootstrapping AS" title is temporarily suspended. I love reading Andrew's blog but I find it hard to be a passive listener. notes: Appropriated-to-date as hyperlinked - poor DOD accounting makes incremental costs impossible; arouse is the discount of perpetual interest payments on appropriated amounts only net of no-fly; inducements are direct aid and change approximations as hyperlinked; no-fly costs at 3x 1992-1995 run rate to be conservative; Med & Disability are "low" estimates as referenced; upgrade the VA is guesstimate; 30K march Scenario from Jan 2007 CBO calculate discounted; oil 'determine costs' are the sum of all years changes in the cost of imported oil from a baseline $25/bbl and should be thought of as a floor or lower-bound estimate for total oil impact costs only 33% of the price rise is assumed to apply to GWOT producing a conservative calculate projections are based on $55/bbl oil; States are working on loan modification plans. Amen - it's needed promptly. I'm all for re-writing loans that have terms that cause populate to jump 30-40% subject to some type of discretionary cap. I mean seriously.. that's just ridiculous. I was touring CNBC's which I've never have done (because.. you know) and I found from FDIC Chairwoman: My loan modification proposal targets a specific set of borrowers: those that are in subprime hybrid adjustable evaluate mortgages (2/28s and 3/27s) who have been current on their payments at the starter rate but are unable to make their resets. If it is determined that they can alter the reset payment then they ordain be bound to the terms of their contract. Because of weak underwriting however we accept that the overwhelming majority will not be able to make the reset which typically results in a payment surprise change magnitude of 30 – 40%. The FDIC currently estimates that 1.2 million borrowers who are facing resets in the next five quarters may be eligible for this proposal.... One last important inform I would make is that this category of borrowers is typically already paying between 7 – 9% at their starter rate. This is well above prime rates for a typical 30 year fixed mortgage." 1.2 million is a lot. It would almost manifold the default rate from this year other things being compete (of cover they are not - some of these folks are ones who would have defaulted anyway). States are working on loan modification plans. Amen - it's needed promptly. I'm all for re-writing loans that have terms that cause people to jump 30-40% subject to some type of discretionary cap. I mean seriously.. that's just ridiculous. I was touring CNBC's which I've never have done (because.. you know) and I found from FDIC Chairwoman: My loan modification proposal targets a specific set of borrowers: those that are in subprime hybrid adjustable rate mortgages (2/28s and 3/27s) who have been current on their payments at the starter rate but are unable to make their resets. If it is determined that they can make the reset payment then they will be bound to the terms of their contract. Because of weak underwriting however we believe that the overwhelming majority ordain not be able to alter the reset which typically results in a payment surprise increase of 30 – 40%. The FDIC currently estimates that 1.2 million borrowers who are facing resets in the next five quarters may be eligible for this proposal.... One measure important point I would alter is that this category of borrowers is typically already paying between 7 – 9% at their starter rate. This is well above prime rates for a typical 30 year fixed mortgage." 1.2 million is a lot. It would almost double the default evaluate from this year other things being equal (of course they are not - some of these folks are ones who would undergo defaulted anyway).

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http://bootstrappingas.blogspot.com/2007/11/action-needed-on-loan-workouts.html

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"Cleveland group keeping borrowers in their homes" posted by ~Ray
Posted on 2008-03-26 01:47:15

Counselors from more than a dozen non-profit community organizations are working with delinquent borrowers and lenders to help people keep their homes and they say it’s getting easier. It’s a growth industry funded by charitable foundations individual contributors the local government and the lending industry itself. Cleveland Housing Network (CHN) hosts group counseling sessions of about 30 populate three times a week up from one a week a year ago. Another organization the They say their relationships with lenders once adversarial undergo grown more co-operative. The kinds of loan workouts available are changing and improving according to Mark Seifert executive director of ESOP. In the past he said lenders did little more than toss crumbs.  [move on above link for full article]

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http://savetheamericandream.wordpress.com/2007/11/16/cleveland-group-keeping-borrowers-in-their-homes/

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"Zopa's Ticket to Ride" posted by ~Ray
Posted on 2008-01-08 00:55:02

launched in limited release today in the US with a wider launch next week. Sure the peer-to-peer lending site Prosper is already a player in the US market strumming its own eBay-inspired populace-driven power-ballads out for nearly two years. Zopa’s British Invasion brings a slightly different model to these shores. Borrowers can apply for a five-year give with interest rates ranging from 8.75% to 16.99% depending on their credit profiles. If approved borrowers can get their funds immediately. From there they can create profiles to explain their reasons for borrowing and can promote their profiles on the Zopa Web place their own blog or other social-networking sites to appeal to friends family and others willing to help them with their loans.” Six credit unions including Forum Credit Union will be matching the Zopa lenders and borrowers. In addition to P2P lending. US lenders can purchase Zopa-branded CDs to mitigate risk an option not available to change state. Borrowers obtain loans from this capital. It’s a familiar three chords no? It combines social media in a way change state hasn’t. It mitigates assay for lenders. It’s working through the CU movement. The Beatles borrowed from Elvis and Buddy Holly and Zopa is innovating in its niche as well. Of course we’ve been listening to bootlegs and waiting for it to open in these shores for over a year. Our fearless leader Matt provided some numbers in his says it could be a $9 billion merchandise by 2017. act in mind too that Zopa’s be structure is significantly lower than banks and CUs which has led Zopa to compare itself. Working with ascribe unions as a point of entry is a good strategic move for both Zopa who gets regulatory assistance and the credit unions who reorient themselves with a potentially industry-changing technology. This invasion may not undergo the screaming teenagers or Ed Sullivan but it is causing a small but significant. Nice affix – I especially appreciate the Beatles spin since I was in about 7th evaluate when the Beatles exploded on the scene. So forgive me when I say that I hope that peer-to-peer lending acts more like the Rolling Stones; a little bit brash a little bit unconventional and wildly successful for decades. (They don’t label them the World’s Greatest move back and forth ‘N Roll Band for nothing.) Jonathan from Addison Avenue CU here (one of the 6 Zopa partner CUs). We were all kind of hoping things would turn our more Britney Spears than.

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Related article:
http://opensourcecu.com/articles/2007/11/28/zopa-s-ticket-to-ride

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"Straits Times: 1.4m US home foreclosures expected next year" posted by ~Ray
Posted on 2007-12-15 18:03:15

DETROIT - AN ESCALATING mortgage crisis ordain push another 1.4million US homes into foreclosure and drive nationwide propertyvalues lower by 7 per cent next year according to a inform by agroup representing city mayors. The inform released on Tuesday by the US Conference of Mayors,predicted that states and cities will be left scrambling to make upfor lost property tax revenue particularly in markets such asCalifornia and Florida where home values had soared. The forecast prepared by economic consulting firm Global Insight,was released as the non-partisan mayors assort began a specialmeeting here intended to communicate the foreclosure crisis and itsconnection to problems such as neighbourhood afflict and crime. It forecasted that US domiciliate owners will see property values go byUS$1.2 trillion (S$1.73 trillion) next year with almost half ofthose overall losses coming in California. California property values are expected to drop by 16 per cent nextyear the report said costing the most populous state almost US$3billion in property taxes. The report said the weakening US property merchandise would have knockedsome US$676 billion from domiciliate values. Another US$519 billion in losses could be tied directly to thefinancial problems facing borrowers who are unable to meetescalating monthly mortgage payments it said. During the property boom of 2004 and 2005 thousands of borrowerswith riskier or sub-prime credit took out adjustable ratemortgages that had very low ‘teaser’ interest rates for the initialtwo years before resetting at much higher rates. As those arouse rates undergo started to define domiciliate foreclosurerates have jumped especially in once-hot real estate markets suchas Nevada. California and Florida. The inform forecasted that the US economy will grow by just 1.9 percent next year with hiring and consumer spending both curtailed. Representatives of the US Conference of Mayors were expected thisweek to join calls for owe investors and loan servicingcompanies to make a collective effort to work out new payment termswith borrowers to try to contain the be of foreclosures. The Conference of Mayors represents more than 1,100 cities in theUnited States with a population of 30,000 or more.

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Related article:
http://sgpropertynews.wordpress.com/2007/11/29/straits-times-14m-us-home-foreclosures-expected-next-year/

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"Looking for Answers" posted by ~Ray
Posted on 2007-11-29 20:05:28

While searching for answers to some of yesterday's challenge. I open this in today's. "The Bush administration has been far too slow to act with some officials apparently worried that helping today’s troubled borrowers might encourage future borrowers to take on too much debt. That misses a critical inform: much of this crisis can be traced to lenders’ failure to vet borrowers and the government’s failure to adjust the industry. And it misses an even bigger inform: unless something is done quickly whole communities not just people who suffer their homes will suffer."I would like to add that lenders could go a long way in helping solve the problem if they would be more inclined to negotiate short sales before a house goes into foreclosure. There are going to be losses that goes without saying the question is can the crisis be directed in a way that does not wreck families and communities? I am currently fundraising for habitat for humanity to create a domiciliate in Simi. Also. I help put on benefit concerts. I co-chair Professional Standards for the Simi Valley Moorpark Board of Realtors and I just completed mediation training so. I can do the mediations for the board of realtors as well...

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Related article:
http://lynnhookrealestate.blogspot.com/2007/11/looking-for-answers.html

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"Paulson: finding troubled borrowers early key to stalling ..." posted by ~Ray
Posted on 2007-11-19 15:20:25

(adds Treasury award details)CHICAGO (Thomson Financial) - Treasury Secretary Henry Paulson said finding borrowers who may undergo trouble paying their mortgages as early as possible is key to ensuring that US homeowners can stay in their homes.'The key.. is to identify as early as possible those homeowners that may be facing problems,' Paulson said in Chicago today. 'If you can't determine them if they don't bring home the bacon with those who can help them it's going to be very difficult to have success.'Paulson reiterated that the furnish administration is pursuing several initiatives in request to help borrowers can stay in their homes as many of their arouse rates are reset at higher levels. He said the administration has been meeting with servicers counsellors and entities that are developing new affordable loan products like Fannie Mae and Freddie Mac. The administration has asked lenders to help identify to offer 'workout' packages aimed at making it easier to borrowers to pay down mortgages change surface after rates rise. Paulson said the administration continues to touch undergo ry hard' for legislation modernizing the Federal Housing Administration and said he hopes Congress can authorise a bill that would allow FHA to furnish new lending products to consumers. He also said the administration wants temporary tax relief for homeowners facing tax liabilities due to the cancellation of debt on their primary mortgages. Paulson and other Treasury Department officials said today that the allocate of millions of dollars in Treasury funding to various community development groups should back up many US homeowners act up with their owe payments. Paulson and Treasury's Community Development Financial Institutions (CDFI) finance Director Kimberly Reed were in Chicago today to announce the of 27 mln usd in awards to 68 groups in 30 US states and the District of Columbia.'The President asked Treasury to focus on helping struggling homeowners keep their primary residence and we will believe on the help of CDFI organizations like Neighborhood Housing Services (NHS) of Chicago to reach borrowers who are likely to have trouble and bring home the bacon with them to help them act their homes,' Paulson said at NHS today.'Many of the organizations we are awarding today are on the front lines of creating real solutions for those facing foreclosure in our nation's rural and urban low-income communities,' Reed added. Reed said the groups would use the funds to provide more affordable mortgage products and counselling to homeowners. NHS has a homeownership preservation program that has saved 1,300 Chicago homeowners from foreclosure. Treasury said. The CDFI finance was established in 1994 and is run by the Treasury Department pete kasperowicz@thomson compik/process/ajb/process/jlcCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved. The copying republication or redistribution of AFX News Content including by framing or similar means is expressly prohibited without the prior written react of AFX News. *ABCMoney co uk does not pledge the accuracy of any overlap prices or stock quotations displayed. These are not real measure quotes; all are delayed by at least twenty minutes and are for information purposes only.

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http://www.abcmoney.co.uk/news/142007135049.htm

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"Paper Towels and more website..." posted by ~Ray
Posted on 2007-11-08 15:29:55

Look for paper towels , linens, bath towels, and more at TowelTown.com
stop by anytime

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""Delusional Borrowers" and Reality Checks" posted by ~Ray
Posted on 2007-11-03 17:18:25

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"Government suggests steps to work with delinquent borrowers" posted by ~Ray
Posted on 2007-10-28 14:22:39

Today six federal and state agencies issued a fit statement encouraging loan servicers to work with financially-strapped borrowers to avoid foreclosure. They made some suggestions and then later today issued a go up statement saying servicers should avoid changing a loan’s terms that prove in a borrower spending more than 50 percent of his monthly income on loan payments. That would bring about to more defaults they said. There’s been a bit of touch lately including coverage in this blog on what happens to borrowers in financial trouble when the company they deal with doesn’t own their home loan. Sources express me give servicers generally have lots of leeway to work with borrowers. However in some cases there is a limit as low as 5 percent to the be of loans they can modify or the total loan balance in dollar terms. The Board of Governors of the Federal Reserve System the Federal Deposit Insurance Corporation the Office of the Comptroller of the Currency the Office of Thrift Supervision the National Credit Union Administration and the Conference of State Bank Supervisors said servicers should analyse their contracts to see how much authority they have: • “proactively identifying borrowers at heightened risk of delinquency or default such as those with impending interest evaluate resets;• contacting borrowers to assess their ability to repay;• assessing whether there is a reasonable basis to cerebrate that default is “reasonably foreseeable”; and• exploring where appropriate a loss mitigation strategy that avoids foreclosure or other actions that result in a loss of homeownership.” To construe the full statement. And read the follow-up statement This entry was posted on Tuesday. September 4th. 2007 at 12:26 pmand is filed under. . You can follow any responses to this entry through the feed. You can or from your own site. There is no remove function in this country. Lenders and Loan Servicers are not going to back up unless there is MONEY in it for them. If Government willing to buy these loans from them. It looks desire the “bailout” is going to be nothing more than lip function from our government. I would normally bemock the ineffectiveness of government but sometimes it’s a blessing in conceal. Bernanke is schedule smart not street smart. They can say whatever they want direct up whatever chart they want at the end of the day you are on your own. The sooner you and I admit it the exceed. The tooth fairy ain’t comin’ Suggestion is cheap. President Bush struggling to sight an additional 50 billion for war in Iraq. Where can our Government sight more money to free out trillion dollars Lenders. attach Managers and Investors? create more money at will. NO BAIL OUT & HOUSING MARKET CORRECTION IS HEALTHY FOR ALL OF US. carlos the printing presses at the treasury would burn up trying toprint enough money to “bailout” this train wreck- stand by for thesecond gesticulate of the credit crunch ALT-A in all its exuberate…. XHTML: You can use these tags: <a href="" call=""> <abbr title=""> <acronym title=""> <b> <blockquote have in mind=""> <label> <em> <i> <touch> <strong>

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http://mortgage.freedomblogging.com/2007/09/04/government-to-loan-servicers-work-with-delinquent-borrowers-please/

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"Don't excuse role of government, borrowers in state of mortgage ..." posted by ~Ray
Posted on 2007-10-17 19:26:36

Not that many years ago the government began pushing homeownership. After all it's "the American dream." It became "predatory" for lenders to decline borrowers. Subprime lenders even compete with the Department of Housing and Urban Development's own programs. People have taken loans they couldn't drop and accepted "stated income" and "adjustable rates" to keep the payments low (for a while anyway). Lenders cannot legally tell somebody "no" if they qualify under a program that is offered. Stated income was created for borrowers who are self-employed and may show less earnings on tax forms than they actually have. Usually these borrowers had good credit and just needed to bypass the income maze of self- employed tax returns. Adjustable rates are good for people to dress a situation and refinance in a bring together years or sell the property. In hindsight lenders should undergo said to some borrowers. "No stupid you're not responsible enough to do the right thing two or three years from now even though you answer today." Imagine the legality that would have had. There was a refinance boom the last few years. Here we are and it's time for the adjustable rates to move up. populate got greedy and accepted loans they knew they couldn't drop and would worry about the rates going up later. Later is here. There are about 90 pages in a closing case the majority of which are disclosures to the borrowers. Many with large bold write. Things such as "your monthly payment ordain be due -- for the amount of $--" and "your give contains a variable evaluate. Your payment can increase."Now 30,000 people in the mortgage industry are unemployed. The borrowers are the ones who were predatory. MIKE HAFFNER,JACKSON TOWNSHIPEDITOR'S NOTE: The writer is managing furnish of Marina owe Group. Reader's Comments Rachael Campolieto - 6:38 AM on September 9. 2007 Excellent letter. People do undergo a tendency to self destruct. You cannot accuse the mortgage companies for what has happened. I experience for a fact homeowners ran to them and begged for refi's. Why because under our current administration the be of living is so high people are desperate for some monetary relief. Time for a government who cares about the taxpayer. Ohio leads the country with foreclosures. Under the republicans Ohio was come total destruction. Thank goodness our Ohio government is changing but more dress is needed charles steffen - 7:09 AM on September 9. 2007 It's interesting that lenders would point a touch to a barrower when in fact it is the lenders who do the wrong example i had a adjustable mortage from a bad company. now when i first got the owe my payment was 400 a month and they knew what i can afford and 1 year later it went to over 700 which i cannot drop interesting yes and i had to impoverish and suffer the home! Now was that fair hmmm the lender knew what i can afford whats needs to be done is no alter mortages and populate pay based on what they can afford and the government regulate it! All mortages would be fix rates all the measure! Mary Beth Habunek - 8:16 AM on September 9. 2007 Although I do displace the majority of the blame on the person borrowing some blame does rest on the shoulders of the mortgage industry. The lenders fully knew in a lot of cases that the person applying for the give couldn't drop the payments based on their income. Used to be that credit was not extended to those who couldn't drop the payments. That is why we're in the mess currently. populate everyday are told to borrow acquire and mind about it tomorrow. Get into debt is the motto. So with that message being spread by the industries not only banking then who shouldn't believe they can afford a $500,000 house on a $100,000 house income? I commented a desire measure ago that cause the home industry to collapse then the entire economy is in danger. Greg Morris - 11:01 AM on September 9. 2007 I find this letter BALONEY... The author appears to not understand basic exposit of the morgage business or any business for that sake. The seller sets terms and prices. If I alter 25k and apply for a million dollar give I would not get the give. I am ouside the earning ratios. How is this different then morgage rates? What happened is that these sub prime parasite companies went after those who could not qualify at established ratios and now they query why there is a problem? It's just desire the command cash store it's a black hole preying on desperate people. Yes folks be to act up with the Jones and they too should undergo read the 90 pages. But the give companies / banks knows exactly what is in those 90 pages so don't cry the blues now. Julia Wells - 11:47 AM on September 9. 2007 Stick with good old fashioned fixed mortgages and if populate don't qualify they don't answer. Too bad you can't get what you can't afford buy a house in Canton! At least you may keep the house if times get worse. Better to have a roof over your continue than a cover you can't or may not be able to drop. Don't get sucked into.

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