A plan to help homeowners avoid foreclosure was good, in principle. In practice, it’s pushed the mortgage business toward yet another potential nightmare
Thank you for everything you do, Matt. Reporting on the stories that matter, and that nobody else is covering.
derivatives. "looks good on paper, boss".
MBS, CDO, IRS, CDS, the list is now infinite. like a synthetic currency, that only inbreds with massive access to credit and capital can access, just another tool, ultimately about transferring risk and building collateral for extreme leverage, for the myriad of ways, people, screw other people. especially greedy inbred wall st types.. all, a collection of "wolves on wall st".
a dem admin's blessing to their primary constituents: wall st banks. not that "party" affiliation means anything, they are clearly two wings of the same bird.
back when Nova on PBS still had a little teeth, they did a fabulous expose on Brooksley Born, the head of the CFTC, her efforts to regulate the derivatives, and the raw abuse she took from the usual pigs: clinton, summers, rubin, greenspan. Highly recommend this
the incompetence is so egregious, it's hard not to see conspiracy.
#CorruptionPredictsConspiracy - Corruption today is so plainly EVIDENT, so widespread, there is little debate. Powerful forces naturally, and predictably, share common incentives to collaborate with one another to accomplish shared interests, even when outwardly, they would appear to be in opposition. Conspiracy MUST be anticipated, not mocked.
Since March 11, the Federal Reserve has increased its balance sheet by $2.41 trillion, i.e it has printed $2.41 trillion to support the asset prices of Wall Street and the wealthy.
If instead that $2.41 trillion had been spread equally over the 130 million households in the U.S., this would have amounted to $18,535 per household. For many this would have been welcome relief to get through the crisis.
But no. We know where the Fed's priorities lie. Making sure that Wall Street and the wealthy suffer no losses.
So appreciate the clear description of the mortgage servicers industry! Not to be trusted. Liars. Friends have told me as much, but it was anecdotal so I waited finally to have Matt make sense of it. Thank you!
While it is in the national interest to secure the mortgages of homeowners in order to avoid another housing crisis, bailing out mortgage servicers isn't the only way to do it. The government should buy defaulting mortgages at some fraction of their face value and service them in a new version of the New Deal Home Owners Loan Corporation (1933-54).
Why always bail out financial middlemen? Servicers are for-profit enterprises owned by investors, supported by bondholders who should endure the consequences of business reverses. If mortgage servicers can survive with this infusion of government cash for their bad mortgages, fine: they can continue to service their profitable mortgages. If not, they liquidate and pay any remaining proceeds to their bondholders and investors.
This ought to have been done the first time around in 2008, and not doing so in 2020 will further concentrate the mortgage service industry exactly as the bailout did the banking industry. And once again place the burden largely on homeowners at increased risk of foreclosure.
Here's a thought; maybe we could stop securitizing so much of the debt we create, and have actual mortgage companies hold the mortgages they create, at least for a fixed number of years, the length of that time being directly related to the riskiness of the debt. Or maybe, those WS geniuses have developed too much of a fondness for what Fabrice Toure termed the mental masturbation of the derivatives game.
Bravo Matt for bringing to light in real colorful language another way the financial system is stupid and selfish and everyone’s problem
“THEY TOOK MY FUCKING THUMBS, CHAHLIE”
Anytime Taibbi and Dayen are tag teaming in the same arena you might say time to panic.
Why do the services need to pay the mortgage note holders (FNMA FMAC) on the skipped months? So much for “We’re all in this together.”
10 'Murkan carrier battle groups still keep most of the world on the dollar. So long as this is the case, the Third Rothschild National Bank, a.k.a. Federal Reserve, can keep warehousing debt and pumping out more funnymoney.
These Servicers are the lowlife debt collectors that will use their name as the Plaintiff in the fraudclosure complaints against the homeowners. Even though they lent nothing hold nothing and own nothing. Let them all go Bankruptcy.
Maybe blockchain should be developed for the servicing process. Doesn't the CEO of Quicken Loans own 2 professional sports franchises and most of the buildings in downtown Detroit? Middle Manning worked out for him.
Will payments be made for homeowners here in New York or not ? Will they have to be paid back
Still unclear: will payments not made during forbearance be due at the end or not?? Thanks MT
Whom would I contact if Mr. Cooper, my MSP goes bust? Who would contact me to let me know? Should I cal all my US or State representative?. And how would I know Mr. Cooper is out of business? I know my mortgage is deducted automatically from my bank account each month.