All that is necessary for the triumph of evil is that good men do nothing.
Irish orator, philosopher, & politician (1729 - 1797)
Many people know the Washington suburbs, both Virginia and Maryland for wealth generated by defense industry fraud or healthcare fraud, but they have the distinction of being ground zero for the subprime mortgage fraud as well. Attorney General Gansler from Montgomery County was well aware of the MERS activity, the fraud in its entirety, and was positioned to be in office at the time when a willingness to be the public face of the massive fraud and by extension a co-conspirator. He is an operator! So you see why O'Malley and Gansler both hit the national spotlight; payment for services rendered. It was important that Maryland be first to set precedent in the decision to protect MERS from prosecution before any independent investigations showed billions of dollars in low-hanging fraudulent fruit to be clawed-back from the suburbs to the government coffers and the public.
MERS was designed to circumvent the normal legal channels for mortgage processing in that each time a mortgage changes hands it needs to reviewed by an accountant for veracity, be verified for authenticity by a lawyer, and be registered with a government titling agency among other things each time it changes hands. This is how we know who owns a property under what terms. Well, when the loans are falsified at the behest of the mortgage lender, the terms discriminatory and predatory, and the loan is to be turned over and over under false pretenses, you skirt the system........such is MERS. What this did besides the obvious fraud was to throw the titling system into chaos......no one knows for sure who holds legal title to the mortgage. PEOPLE ARE NOT BEING TOLD THAT MOST OF THESE HOMES TIED TO THESE SUBPRIME LOANS AND ESPECIALLY THOSE THAT MOVED THROUGH MERS MAY NOT LEGALLY BELONG TO THE BANKS SELLING THEM AND SOMETIME DOWN THE ROAD, WHEN INVESTIGATIONS HAVE BEEN DONE, SOMEONE WHO BUYS ONE OF THESE HOMES MAY HAVE SOMEONE CLAIM THE HOUSE DUE TO FAULTY PAPERWORK.
You won't find the affluent buying these houses as homes because of this....they will build new ones with clear title. Guess who is going to come behind the last owner who lost the home to fraud...............THE NEXT PERSON WHO WILL BECOME THE VICTIM OF FRAUD.........A MIDDLE-CLASS FAMILY THINKING THEY ARE GETTING A GOOD DEAL.
All of this made news in all the major newspapers through fall of last year. At the first of this year, after the $25 billion settlement....I call it an interest payment...... Wall Street proclaimed the bank bashing would stop in the media and OBAMA would not bash the banks in the election.....AND IT WAS SO. YOU DO NOT HEAR A WORD ABOUT THIS. THEY THINK THAT WE WILL BE BULLIED AWAY FROM PURSUING JUSTICE AND THEY ARE WRONG AGAIN. YOU SEE, CRIMINALS ARE RARELY THE BEST AND THE BRIGHTEST!
YOUR POLITICIAN, WHETHER NATIONAL, STATE, OR LOCAL KNEW ALL THIS AND WATCHED AS IT HAPPENED AND DIDN'T SAY A THING. MANY BECAME ENRICHED BY THIS FRAUD OR WILL AFTER LEAVING OFFICE. NO ONE WAS SURPRISED BY THE FINANCIAL COLLAPSE; THEY KNEW IT WAS COMING AND HAD THE BAILOUT PLAN IN PLACE.
VOTE YOUR INCUMBENT OUT!
Gansler's first move is just as I said......give the people $1,900 for the massive fraud and invest the rest in the bank financed development projects. The people committing the fraud get the fraud settlement.
Baltimore plans to tear down 700 vacant homes with money from mortgage settlement
Jamie Smith Hopkins 6:02 a.m. EDT, May 31, 2012 Baltimore Sun
Baltimore is getting $10 million from the national mortgage settlement, and city officials intend to use almost all of it to demolish vacant homes -- about 700 in total.
That's a snippet in the story about the state attorney general announcing how the state-controlled $60 million from the settlement will be spent. But it's interesting, and I thought you might like to know more.
Julie Day, deputy commissioner for land resources at Baltimore’s housing agency, said city officials have been working on a demolition strategy in the past few months and are delighted to be handed millions of dollars for anti-blight work. They would like to be able to tear down about 4,400 vacant properties in all.
The 700 homes they expect to demolish with the settlement money -- at a cost of about $13,600 apiece -- will be the cheapest targets, requiring little or no wall construction for neighboring homes and no resident relocation. Day said the city has identified about 180 locations that fit the bill, either entire blocks or blocks that already have gaps between vacant and occupied homes.
Demolition costs about $13,000 per home, Day said. Wall construction is actually a bit more expensive all by itself -- $14,000 apiece. And relocation? That gets really pricey.
Day said the cost to relocate owner-occupants can cost as much as $170,000 per case, in order to follow federal law on providing similar homes. Relocating renters can cost about $85,000 per case because the city is required to cover the difference between the original and new rent for five years, she said.
That's why the city is estimating it would take $165 million to tear down all 4,400 homes -- $37,500 apiece.
Why tear down rather than rebuild? Day said officials see the work as "blight elimination" in a city with far fewer residents than it had decades ago, removing brick-and-mortar magnets for rodents, crime and other problems.
"It leaves a sizable cleared green space that will create different opportunities," she said.
If you had $10 million to spend on housing-related work in the city, what would you use it for?
Got a housing news tip or experience to share? (Or just want to tell me something?) Email me at email@example.com.
Copyright © 2012, The Baltimore Sun
BELOW YOU'LL SEE WHAT THOSE OF US WHO FOLLOW THIS FRAUD KNEW WOULD HAPPEN. WHEN OBAMA MAKES HIS PITCH FOR WRITING -DOWN LOANS AND WHEN THE $25 BILLION SETTLEMENT INCLUDES MONEY FOR WRITE-DOWNS WE FIRST NOTICE THAT NONE OF THESE SECURITIZED LOANS ...THE ONES GOING THROUGH THE PROCESS I DESCRIBE ABOVE WILL BE MODIFIED; THE BANKS DON'T WANT THEM BECAUSE THEY ARE COMPROMISED AND WILL SEND THEM TO FORECLOSURE. SECONDLY, THE SMALL COHORT OF PEOPLE RECEIVING THE WRITE-DOWN WILL BE UPPER-MIDDLE CLASS FAMILIES INCONVENIENCED BY THE INFLATED RATES OF THE HOUSING BUBBLE AND DEVELOPERS LOOKING WORKING ON THESE URBAN 'ENTERPRISE ZONES'......NOT THE VICTIMS OF THE FRAUD. WE ARE LOOKING FOR DATA TO SUPPORT THAT.
Data confirms that securitized mortgages less likely to be modified
By Amy Biegelsen 8:23 pm, February 10, 2011 Updated: 1:11 pm, July 7, 2011
Mortgage servicing will be one of the Consumer Financial Protection Bureau's top priorities when it opens for business on July 21, an agency official told Congress today. Government data analyzed by Federal Reserve economists shows what many home owners have already learned the hard way: Consumers have a much better chance of renegotiating a distressed mortgage if the original bank lender still holds it. Homeowners are 26 to 36 percent more likely to be able to renegotiate a bank-held mortgage than mortgages that have been securitized, or sold by the lender to another company to be bundled into securities, according to a new study to be published in the Journal of Financial Economics. “Homeowners don’t have a say in whether their bank sells their mortgage or not, but that can have a significant impact on whether their loan is re-negotiated,” said Itzhak Ben-David, co-author of the study and assistant professor of finance at Ohio State University’s Fisher College of Business. Ben-David, along with three economists from the Chicago Fed, concluded in the study that “frictions introduced by securitization” make it harder for homeowners to renegotiate a troubled loan. The study drew from 2007-09 government data on more than 34 million mortgages totaling $6 trillion – about 64 percent of the U.S. home mortgage market. It included detailed data from mortgage servicers owned by 10 of the biggest U.S. banks supervised by the Office of the Comptroller of the Currency and from large thrifts regulated by the Office of Thrift Supervision. Among the modified loans, borrowers whose loans were still held by the mortgage originator often paid higher interest rates and had a roughly 9 percent lower default rate after modification than similar borrowers whose loans were in securities regardless of the strength of their credit history. The most common type of modification was to lower or freeze the interest rate, the economists found. The Treasury Department’s Home Affordable Modification Program (HAMP), which initially promised to help up to 4 million distressed homeowners, has been criticized by consumer advocates and a government watchdog for rejecting most borrowers for permanent mortgage modifications. Of 1.4 million homeowners who obtained trial modifications with HAMP, only 550,000 had their modifications made permanent. Other groups have asked HAMP to release loan-level data collected from mortgage servicers which would shed light on which borrowers are getting modifications and the types of modifications
THIS IS THE REASON OBAMA WOULD NOT MAKE BANKS WRITE-DOWN THE FRAUDLENT/BAD LOANS.......THEY PLANNED TO USE THEM A SECOND TIME FOR PROFIT AS RENTAL PROPERTY. MOST OF THESE FORECLOSURES WILL GO TO THE SAME PEOPLE WHO WORKED THE FRAUD AND THEY WILL HAVE THE MONEY TO FIGHT ANY CHALLENGE TO THE TITLE.......YOU AND I MAY NOT.
Investors Are Looking to Buy Homes by the Thousands
Jim Wilson/The New York Times John Millino, an inspector with Waypoint Real Estate Group, looked at a home that he was evaluating in Oakland, Calif. By MOTOKO RICH Published: April 2, 2012 New York Times
RIVERSIDE, Calif. — At least 20 times a day, Alan Hladik walks into a fixer-upper and tries to figure out if it is worth buying. As an inspector for the Waypoint Real Estate Group, Mr. Hladik takes about 20 minutes to walk through each home, noting worn kitchen cabinets or missing roof tiles. The blistering pace is necessary to keep up with Waypoint’s appetite: the company, which has bought about 1,200 homes since 2008 — and is now buying five to seven a day — is an early entrant in a business that some deep-pocketed investors are betting is poised to explode. With home prices down more than a third from their peak and the market swamped with foreclosures, large investors are salivating at the opportunity to buy perhaps thousands of homes at deep discounts and fill them with tenants. Nobody has ever tried this on such a large scale, and critics worry these new investors could face big challenges managing large portfolios of dispersed rental houses. Typically, landlords tend to be individuals or small firms that own just a handful of homes. But the new investors believe the rental income can deliver returns well above those offered by Treasury securities or stock dividends. At the same time, economists say, they could help areas hardest hit by the housing crash reach a bottom of the market. This year, Waypoint signed a $400 million deal with GI Partners, a private equity firm in Silicon Valley. Gary Beasley, Waypoint’s managing director, says the company plans to buy 10,000 to 15,000 more homes by the end of next year. Other large private equity investors — including Colony Capital, GTIS Partners and Oaktree Capital Management, in partnership with the Carrington Holding Company — have committed millions to this new market, and Lewis Ranieri, often called the inventor of the mortgage bond, is considering it, too. In February, the Federal Housing Finance Agency, which oversees the government-backed mortgage companies Fannie Mae and Freddie Mac, announced that it would sell about 2,500 homes in a pilot program in eight metropolitan areas, including Atlanta, Chicago and Los Angeles. And Bank of America said in late March that it would begin testing a plan to allow homeowners facing foreclosure the chance to rent back their homes and wipe out their mortgage debt. Eventually, the bank said, it could sell the houses to investors. Waypoint executives say they can handle large volumes because they have developed computer systems that help them make quick buying decisions and manage renovations and rentals. “We realized that there is a tremendous amount of brain damage around acquiring single-family homes, renovating them and renting them out,” said Colin Wiel, a Waypoint co-founder. “We think this is a huge opportunity and we are going to treat it like a factory and create a production line to do this.” Mr. Hladik, who is one of seven inspectors working full time for Waypoint’s Southern California office, is one cog in that production line. On a recent morning, he walked through a vacant three-bedroom home with a red tiled roof here about 60 miles east of Los Angeles, one of the areas flooded with foreclosures after the housing market bust. Scribbling on a clipboard, he noted the dated bathroom vanities, the tatty family room carpet and a hole in a bedroom wall. Twenty minutes later, he plugged these details into a program on his iPad, choosing from drop-down menus to indicate the house had dual pane windows and that the kitchen appliances needed replacing. The software calculated that it would take $25,413.53 to get the home in rental shape. Mr. Hladik adjusted that estimate down to $18,400 because he deemed the landscaping in good shape. He uploaded his report to Waypoint’s database, where appraisers and executives would use the calculations to determine whether and how much to bid for the house. With just three years of experience, Waypoint is one of the industry’s grizzled veterans. But critics say newcomers could stumble. “It’s a very inefficient way to run a rental business,” said Steven Ricchiuto, chief economist at Mizuho Securities USA. “You could wind up with an inexperienced group owning properties that just deteriorate.” The big investors are wooed by what they see as a vast opportunity. There are close to 650,000 foreclosed properties sitting on the books of lenders, according to RealtyTrac, a data provider. An additional 710,000 are in the foreclosure process, and according to the Mortgage Bankers Association, about 3.25 million borrowers are delinquent on their loans and in danger of losing their homes. With so many families displaced from their homes by foreclosure, rental demand is rising. Others who might previously have bought are now unable to qualify for loans. The homeownership rate has dropped from a peak of 69.2 percent in 2004 to 66 percent at the end of 2011, according to census data. Economists say that these investors could help stabilize home prices. “If you have a lot of foreclosures in one community you will improve everybody’s home values if you take them off the market,” said Diane Swonk, the chief economist at Mesirow Financial. “If those homes are renovated and even rented, it is a lot better than having them stand empty.” Until now, Waypoint, which focuses on the Bay Area and Southern California, has been buying foreclosed properties one by one in courthouse auctions or through traditional real estate agents. The company, founded by Mr. Wiel, a former Boeing engineer and software entrepreneur, and Doug Brien, a one-time N.F.L. place-kicker who had invested in apartment buildings, evaluates each purchase using data from multiple listing services, Google maps and reports from its own inspectors and appraisers.