Obama proposes new task force to tackle investigation of banks' mortgage lending practices

Obama proposes new task force to tackle investigation of banks' mortgage lending practices (Full Version)

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kalikshama -> Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 6:38:46 AM)
President Obama proposed on Tuesday night a task force to investigate mortgage lending practices that led to the housing crisis, a move that should please congressional Democrats. During his State of the Union address, Obama said he is tasking Attorney General Eric Holder with creating a special unit of federal prosecutors and state attorneys general to expand investigations "into the abusive lending and packaging of risky mortgages" that contributed to the housing crash. "This new unit will hold accountable those who broke the law, speed assistance to homeowners, and help turn the page on an era of recklessness that hurt so many Americans," he said. The announcement comes amid calls from Democrats to conduct a more thorough investigation into foreclosure practices and delay a proposed settlement of upward of $25 billion with the nation's five biggest banks — Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial — that was sent to the states for review on Monday. The president also said that he will send to Congress a plan that gives responsible homeowners a chance to save about $3,000 a year on their mortgage, by refinancing at historically low interest rates. "No more red tape," he said. "No more runaround from the banks. A small fee on the largest financial institutions will ensure that it won’t add to the deficit, and will give banks that were rescued by taxpayers a chance to repay a deficit of trust." Read more: http://thehill.com/blogs/on-the-money/1091-housing/206333-obama-proposes-new-task-force-to-tackle-investigation-of-banks-mortgage-lending-practices

mnottertail -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 7:18:17 AM)
MERS would be a good starting point of investigation. It should provide the entire court system (including SCOTUS) enough paperwork to last thru Obamas next term.

Edwynn -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 12:26:36 PM)
I am close to a situation where a retiree house owner simply cannot sell. A $60,000 kitchen remodeling (complete ripping out and replacement of everything, floor, walls, ceiling, island range and counter top installed, all appliances, etc.) was done upon last purchase. The house was assessed at $725,000 in 2007, which we now know as being the peak before the bust. It was assessed at $685,000 in 2002, prior to the CDO-induced price inflation. The current price is listed at $499,000, after numerous reductions. The latest offer is $470,000, and that being half-hearted and half-serious. The current owner is 84 yrs. old, worked and paid bills on time with perhaps 5-6 lapses (in the early going) in more than 50 years (never on the mortgage), and is now stuck with this situation. The latest offer on the house constitutes a loss from the pre-inflation figure in 2002 of 31%. Quite a hit for someone who just did what he was told to do his entire life. With or with out whatever investigations, 20% should be lopped off from every mortgage loan balance, no questions, no red tape, no "process," just do it. It is the fault of the congress and regulatory agencies and presidents (all of them) for the deregulation mania that allowed this to happen, and fault (with stupendous profit thereby) of the financial industry in taking advantage of the situation they successfully fought for. The banks and the congress people and the presidents can return 20% of their paychecks and profits and bonuses to fund this.

Hillwilliam -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 12:28:38 PM)
If he's asking 499K and someone offers 470K, he ought to jerk their arm off. That's almost a 95% offer.

Edwynn -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 12:35:39 PM)
He would take it as soon as given, I assure you. On his own, he'd be OK going even lower, but then it's not just him in the matter. Even that is enough "under water" where he has to worry about if the mortgage folks will accept or not. Even with a relatively "safe" investment portfolio as appropriate for the situation, his position has deteriorated enough where he can't cover even half the loss himself. Wonder what (rather, who) caused that? He or any other responsible person might be wondering why they have to cover a loss not of their own doing, but rather by the same people still antagonizing them in the matter. Great time to be a retiree, innit?

Hillwilliam -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 12:43:41 PM)
I'm 51 and wonder IF I'll ever retire

tj444 -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 12:49:28 PM)
quote: ORIGINAL: Edwynn He would take it as soon as given, I assure you. On his own, he'd be OK going even lower, but then it's not just him in the matter. Even that is enough "under water" where he has to worry about if the mortgage folks will accept or not. Great time to be a retiree, innit? just curious.. how does someone get to be 84 and be underwater? Most people that age would have paid off their houses long ago and some might have a reverse mortgage (but i think those work differently?).. Did this person buy it not long ago? or refinance many times? Why would someone that age even do a $60,000 kitchen reno? most seniors that age would be downsizing.. just wondering.. that kind of a drop is not unheard of tho.. in some cases even more..

Iamsemisweet -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 1:16:59 PM)
Bullshit. I hardly know what else to say. In fact, that is such an outlandish suggestion, I can only assume you are joking. quote: ORIGINAL: Edwynn With or with out whatever investigations, 20% should be lopped off from every mortgage loan balance, no questions, no red tape, no "process," just do it.

Yachtie -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 1:22:16 PM)
quote: ORIGINAL: kalikshama President Obama proposed on Tuesday night a task force to investigate mortgage lending practices that led to the housing crisis, a move that should please congressional Democrats. HUH??? from The Nation - The Associated Press reports that a proposed deal could be announced within weeks. Five banks—Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial (formerly GMAC)—would pay the federal government $25 billion. About $17 billion would be used to reduce the principal that some struggling homeowners owe, $5 billion more would be used for future federal and state programs and $3 billion would be used to help homeowners refinance at 5.25 percent. Civil immunity would be granted to the banks for any role in foreclosure fraud, and there would be no investigations. Now, which scenario fits past history? (aka turning the blind eye) Doh! Obama, Gingrich and Romney are all owned by the Banks.

Edwynn -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 1:23:48 PM)
The wife in this matter insisted on a house large enough (and the kitchen) to accommodate family get-togethers at least twice a year, being as that her health had deteriorated to such that she could not do the beach or mountain vacation thing anymore, and the 22-29 people at such gatherings (8 kids, 6 grand kids, spouses, bfs, gfs, friends, etc.) necessitated the square footage. The house was purchased and renovated in 1999, not just this year, as the perceptive audience might have guessed, so the person in question was actually 71 at the time. In matter of fact, most retirees still carry mortgages, not as you state that most of them have paid off. Prior to the boom-bust, it was accepted that what's yours is yours, which would include equity in the house ("a house is the best investment," as said by realtors and banks for decades). The finance industry made all home owners well aware of that at the time, and were the sellers of that notion to great success. But subsequently the financial PR folks have sufficiently contorted the issue of their own gross irresponsibility and ineptitude into that of now having the press tell us that it is actually the life long responsible homeowners who are at fault, success in that process being evidenced by such questions about re-financing given here, which prior to this latest fiasco was considered a responsible way of maintaining lifestyle worked for for many years. Re-financing for both home improvement and retirement equity extraction has been going on for decades. It only now has come to be considered as extravagance in correlation to casino playing by the banks. What a coincidence.

Edwynn -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 1:45:18 PM)
quote: ORIGINAL: Iamsemisweet Bullshit. I hardly know what else to say. In fact, that is such an outlandish suggestion, I can only assume you are joking. quote: ORIGINAL: Edwynn With or with out whatever investigations, 20% should be lopped off from every mortgage loan balance, no questions, no red tape, no "process," just do it. This from a person who claims with straight face that responsible homeowners are the cause for loss of 8.5 million jobs and financial melt down, with serious loss of home equity by everyone as a side dish. I could never have come up with a joke as bad as yours.

Iamsemisweet -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 2:20:36 PM)
Hmm. Don't believe I ever said that. Of course, I am not a narrow minded absolutist, like some I can think of. In my mind, absolutism makes one look fanatical and idiotic. I certainly believe that in many cases, homeowners borrowed irresponsibly and without considering all potential consequences (borrowing 110% of the value of your home? Who the hell would think that was a good idea?). I also believe that if loans were made fraudulently or contrary to law, then the lenders should be prosecuted. But to simply make a statement that ALL mortgages should be automatically reduced by 20%, regardless of the circumstances or fault is, well, to put it mildly, stupid. Oh, and your suggestion as to how it should be funded is pretty asinine too. Sorry I didn't mention that before.

mnottertail -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 2:29:35 PM)
If you could get it done just for me, reduce my mortgage payment 20%, we're on like a motherfucker, I'll tell you that.

Edwynn -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 3:11:16 PM)
You never said in those words, that being because you still cannot get it into your head well enough as to what actually happened to understand that that is what in effect you are saying. "Many" homeowners were irresponsible, you say. That is as direct result of and instigation by the financial industry. Irresponsible borrowers have been around since time immemorial. The financial industry's job has historically been to protect savors and investors from that, which you fail to understand. (that is both the reason and charge attributed to the term "financial intermediaries") Can you bring us a percentage there? I can assure you it's a small percentage of total borrowing. You've yet to speak about the irresponsibility of the mortgage originators, the commercial banks, the investment banks, the hedge funds, the companies that took municipal pension fund money as currency default swap premiums, the rating agencies in both their fraudulent AAA ratings of CDOs and CDOs squared and cubed and synthetic CDOs, and their successful suppression of predatory lending laws in many states. And the lawyers and lobbyists who work for them, some few of the former which you are apparently working for.

Iamsemisweet -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 3:22:15 PM)
A percentage? No. But it is somewhat more than the 0% that you continue to insist that it is. But, let's pretend for a second that you are right. Do you honestly believe that knocking 20% of everybody's mortgage is a) constitutional (that nasty takings doctrine and all) b) feasible c) fair and d) not going to have some pretty nasty consequences for depositors and investors in banks. Which will of course come to bite the rest of us in the ass when the banks are shut down because of capitalization problems, and the depositors have to be compensated. In fact, this is what I have said on the subject before. Not that you seem to have any ability to think beyond your rather simplistic belief: quote: Do you really think I am advocating for the banks, you moron?. I think there is plenty of blame to go around. The regulators, the legislatures, congress, real estate developers, local governments, mortgage brokers, appraisers, banks, and yes, home owners all played a part. But if you want to believe the home owners were all naive victims, go ahead. I don't give a fuck. I find it fascinating that someone can believe that an HO who took out an adjustable rate mortgage with a teaser rate, was informed that the payment could increase substantially, and who used the equity in their house to buy a boat, is somehow an innocent victim. And I find it even more amazing that the homebuilders who knocked up subdivisions without any consideration of whether there were buyers for their crap houses are now considered victims too. But like I said, if you want to believe that it is all the bank's fault, go ahead. Hope that works for you. quote: ORIGINAL: Edwynn You never said in those words, that being because you still cannot get it into your head enough as to what actually happened to understand that that is what in effect you are saying. "Many" homeowners were irresponsible, you say. Can you bring us a percentage there? I can assure you it's a small percentage of total borrowing. You've yet to speak about the irresponsibility of the mortgage originators, the commercial banks, the investment banks, the hedge funds, the companies that took municipal pension fund money as currency default swap premiums, the rating agencies in both their fraudulent AAA ratings of CDOs and CDOs squared and cubed and synthetic CDOs, and their successful suppression of predatory lending laws in many states. And the lawyers and lobbyists who work for them, some few of the former which you are apparently working for.

kalikshama -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 3:29:24 PM)
quote: The wife in this matter insisted on a house large enough (and the kitchen) to accommodate family get-togethers at least twice a year, being as that her health had deteriorated to such that she could not do the beach or mountain vacation thing anymore, and the 22-29 people at such gatherings (8 kids, 6 grand kids, spouses, bfs, gfs, friends, etc.) necessitated the square footage. /Attempts to muster sympathy/ /fails/

Edwynn -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 3:34:05 PM)
Read the re-edit, wherin; quote: "Many" homeowners were irresponsible, you say. That is as direct result of and instigation by the financial industry. Irresponsible borrowers have been around since time immemorial. The financial industry's job has historically been to protect savors and investors from that, which you fail to understand. (that is both the reason and charge attributed to the term "financial intermediaries"). Go to the library and check out any book on "Money and Credit" or "Banking and Finance" and find out for yourself that what I say is not "opinion," but rather what the financial industry itself has taught for more than 500 years.

Iamsemisweet -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 3:35:43 PM)
I'm with you, Kalik. But I am sure Edwynn will explain how it was all the mean old bank's fault. quote: ORIGINAL: kalikshama quote: The wife in this matter insisted on a house large enough (and the kitchen) to accommodate family get-togethers at least twice a year, being as that her health had deteriorated to such that she could not do the beach or mountain vacation thing anymore, and the 22-29 people at such gatherings (8 kids, 6 grand kids, spouses, bfs, gfs, friends, etc.) necessitated the square footage. /Attempts to muster sympathy/ /fails/

Edwynn -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 3:39:08 PM)
quote: ORIGINAL: kalikshama quote: The wife in this matter insisted on a house large enough (and the kitchen) to accommodate family get-togethers at least twice a year, being as that her health had deteriorated to such that she could not do the beach or mountain vacation thing anymore, and the 22-29 people at such gatherings (8 kids, 6 grand kids, spouses, bfs, gfs, friends, etc.) necessitated the square footage. /Attempts to muster sympathy/ /fails/ Wasn't seeking sympathy from you or anyone else, rather was explaining to a clueless interrogator the situation of responsible people suffering from irresponsibility of government and banks. It was post-war baby-boom and Catholic, on top of that. Read some history. You apparently have no sympathy for people put in whatever situation, at whatever age in time. The perceptive reader would have taken note of the significant reduction from 8 kids to 6 grand kids, but modern day discourse seems to be reduced to opportunistic snark. She's dead 3 years now, so relax. You can go back to your savior president now.

tj444 -> RE: Obama proposes new task force to tackle investigation of banks' mortgage lending practices (1/25/2012 3:46:08 PM)
quote: ORIGINAL: Edwynn The wife in this matter insisted on a house large enough (and the kitchen) to accommodate family get-togethers at least twice a year, being as that her health had deteriorated to such that she could not do the beach or mountain vacation thing anymore, and the 22-29 people at such gatherings (8 kids, 6 grand kids, spouses, bfs, gfs, friends, etc.) necessitated the square footage. The house was purchased and renovated in 1999, not just this year, as the perceptive audience might have guessed, so the person in question was actually 71 at the time. In matter of fact, most retirees still carry mortgages, not as you state that most of them have paid off. Prior to the boom-bust, it was accepted that what's yours is yours, which would include equity in the house ("a house is the best investment," as said by realtors and banks for decades). The finance industry made all home owners well aware of that at the time, and were the sellers of that notion to great success. But subsequently the financial PR folks have sufficiently contorted the issue of their own gross irresponsibility and ineptitude into that of now having the press tell us that it is actually the life long responsible homeowners who are at fault, success in that process being evidenced by such questions about re-financing given here, which prior to this latest fiasco was considered a responsible way of maintaining lifestyle worked for for many years. Re-financing for both home improvement and retirement equity extraction has been going on for decades. It only now has come to be considered as extravagance in correlation to casino playing by the banks. What a coincidence. If you say it was absolutely neccessary to have a huge house for 2 events a year.. okkkkkk... so the homeowner thought it was a good idea to buy a big expensive house like that at age 71??? Taking out a large mortgage for 20, 25, 30 years at that age is not smart, imo.. I am guessing they were retired? They had to qualify for the payments didnt they? did they even have income to do that? I guess now its gonna be real hard getting those 22-29 bodies into a small apartment or room in a retirement home.. I am guessing that you are related to the owners... didnt anyone advise the owners it was a bad idea to buy a big house with a big mortgage like that at their age? There is nothing wrong with buying real estate if you buy it sanely..

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