Maybe they can get Jerry Lewis and make it a 3 day telethon.

These trial modifications should have been trial separations.

Rename it to the HEAP (Humongous Extend and Pretend) program.

So when do those that cant afford their homes and have stopped paying mortgages start to get booted? Q12010? Q2? Predictions on new moratoria or do the banks actually get to start working through these things?

yagij wrote:

First, we had pledge drives. Now, we have "conversion drives"?

This is getting more surreal by the minute. Kafka would blush.

thanks yagij for your response in the thread on the triparty reverse repos. It made my brain scream.

Roughly 375,000 of the borrowers who have begun trial modifications since the start of the program are scheduled to convert to permanent modifications by the end of the year.

650k trials have been started since the beginning of the year (not counting November). This gives us a 57% conversion rate - at best

Nemo wrote:

That's good for like Warp 5 or something, isn't it?

High-Ranking Bureaucrat: She can't take much more of this, Cap'ain.
Captain Timmah: I don't care, Scotty. Give me everything you got!

No way they'll show that many. I've been in the HAMP process since June with no end in site. Supposedly it had finally made its way to the underwriters last month. I'm with Saxon (Morgan Stanley) and they are one of the worst of the bunch for mods anyway. I've resubmitted just about every piece of paper twice over the past six months. I've also spent countless hours on the phone with people that haven't a clue as to what is going on, explaining the same thing to a new person each time...over and over and over ad nauseum.

creditcriminalslovetarp wrote:

Its interesting they are being very coy about it....

I'm curious about the "triparty" aspect. Who is the 3rd party? Institutions holding the Treasuries debt? The Treasury?

President Kucinich will solve all these problems in 2013

pigged....

nanoo-

It's just language and a political act. The pressure to come up with some sort of exit strategy must be getting a little heavier so they put out a PR saying "well we're gonna do this on a small scale". The tri-party portion of it may mean that they may be setting up some other "facility" where the right pocket pays the left one and then it gets pulled from the system.

Remember we supposedly had a massive failure of a "test" of this very same thing about 2 months ago. The difference, from the B'berg link posted now, is the tri-party aspect.

BTW the third party could be a very large bank in a country who's currency is at record highs......2 come to mind

Ciao
MS

"Homeownership Preservation Office"... Another Obama Czar in Soviet Amerika.

The result numbers would be better if they used the same method of counting jobs saved and created!

. . . failing to meet performance obligations . . . will be subject to consequences which could include monetary penalties and sanctions.

Will servicers walk away? Has the administration moved its threats into the open here?

think in terms of political speak:

borrower = VOTER

conversion drive = GET OUT THE VOTE(R) BY PAYING FOR IT WITH OUR MONEY

From Wiki:

The distinguishing feature of a tri-party repo is that a custodian bank or international clearing organization acts as an intermediary between the two parties to the repo. The tri-party agent is responsible for the administration of the transaction including collateral allocation, marking to market, and substitution of collateral.

I'm going to guess that the Fed is supposed to be acting as the custodian. That would give them the power to obviate collateral allocations to prop up a failing institution surreptitiously. I can't see why they couldn't be custodians for themselves.

yagij wrote:

The JPY isn't at record highs.

The Yen is at the highest it's been since 1999. Don't know about prior to that-

We're spending a LOT of time, effort and money trying to preserve the value of bad credit.

It's almost like a religious belief.

Under the current dominant eCONomic religion, residential real estate debt holders and bank debt holders are the keystones of our eCONomy. They're sacred. If necessary, all other citizens, born and yet to be born, must sacrifice their well being for these chosen ones.

Bondholders Hu Akbar!

I wonder, is this perhaps in response to the UK problems with Dubai? Lloyds and RBS exposure there and RBS is a primary dealer with the fed. So, we pat their back, they pat ours?

Ménage à trois Wood, or putter?

Allen C (profile) wrote on Mon, 11/30/2009 - 11:37 am

Rename it to the HEAP (Humongous Extend and Pretend) program.

Debtor extend and pretend policies are simply the hot flavor of 2009, and are sort of like praying for a miracle. What else can we do, since we refuse to acknowledge reality? When belief disappears so does credit. The credit system can't collapse, it would just vanish in a puff of smoke.

Angry Saver wrote:

We're spending a LOT of time, effort and money trying to preserve the value of bad credit.
It's almost like a religious belief.
Under the current dominant eCONomic religion, residential real estate debt holders and bank debt holders are the keystones of our eCONomy. They're sacred. If necessary, all other citizens, born and yet to be born, must sacrifice their well being for these chosen ones.

As I said during the past week, we need to let it go. Let the mortgagees default, let the bankers file, and clear all the bad debt out. The only thing worse than this is not doing it-

Juvenal Delinquent wrote:

Ménage à trois Wood, or putter?

Ask Tiger's wife-

I cant wait for the new holiday soon to be announced...

Debtsgiving...main course of , pine nuts and mushrooms...then everyone sits around the fire and sings the song

debt is good, debt is beautiful, we are serfs, we will remain oh so dutiful...
thank you pigmen, for sending us some bacon, at 29% interest, life is about payment making....

In the 70s, we had 'paper drives'.
Kids would bring stacks of newspaper to school for recycling/fund raising.

Perhaps we could have mortgage drives?

Put all the donated mortgages in a pile and sell them for easy cash!

Oh, wait...

MS wrote:

that's a third choice......but I can't really see that happening...that would mean alot of structural things needing to change very quickly.

Honestly, thanks to both Nanoo and yourself for raising the idea in the first place. I had not really thought about this previously, especially with a foreign central bank as third party.

Let's hear it for the 300 that surfaced in an act of charity surely, to play garbage-men for the less fortunate, us.

Great news - looks like there are a lot more delinquent loans to modify every month.

http://www.fanniemae.com/ir/pdf/monthly/2009/103109.pdf 

Phyllis R. Caldwell, former president of Community Development Banking at Bank of America....

An executive with 20 years of sales and management experience, Caldwell has worked in Community Development Banking at Bank of America for the past decade where she has been an innovator in affordable housing...

Under her leadership, Caldwell’s team annually offered $2 billion in construction loans and $1 billion in equity investments....

Career Highlights: Most recently president, community development banking, Bank of America. Previously, Caldwell held several senior vice president positions in affordable housing, debt and equity finance within community development banking at Bank of America. Other positions include vice president, Carey Winston Realty Advisors; vice president, Citicorp Real Estate...

Phyllis Caldwell
Banker
Bank Of America Updated
Q2/2007
Hillary Clinton
$4,600 2246 WROXTON RD
Houston TX Phyllis Caldwell
Donation of $2,300 to Presidential elections 2008
Phyllis Caldwell
Banker
Bank of America Updated
Q4/2007
Barack Obama
$2,300 2246 WROXTON RD
Houston TX

“It’s a position that will allow me to continue all of our efforts to make sure that families are able to buy and keep affordable homes. As we all know, owning a home is critical to wealth creation for women-headed households in particular.”

OT: Thought you should know-
http://www.cnbc.com/id/34206953/site/14081545 
Dubai Fear is 'Noise'—Stay Fully Invested: Strategist

JP wrote:

Maybe they can get Jerry Lewis and make it a 3 day telethon.

Jerry Lewis isn't dead?!?!?!?!

Bubblisimo Gerkinov wrote:

Jerry Lewis isn't dead?!?!?!?!

No, but wouldn't it be more appropos if he were?

...American International Group Inc.’s losses on claims may hinder efforts to repay the government.

Can I get a big "Hoocooodanode?"

Well lookit' that.

Cinco-X wrote:

Don't know about prior to that-

IIRC: Mid-90s. The JPY cross has been lower (stronger JPY) than where it currently is.

GFI,

Thank goodness for the credit enhancement, or was that a delinquency enhancement? 12.16% yikes.

Chainsaw wrote:

Thank goodness for the credit enhancement, or was that a delinquency enhancement? 12.16% yikes.

Yikes!

Servicers failing to meet performance obligations ... will be subject to consequences which could include monetary penalties and sanctions".

Oh goodie, more banks for the problem bank list!

Exactly how are penalties going to help the problem? Seriously. This is going to force servicers to redefine (tighten) mortgage guidelines. Oh goodie, like that will re-inflate the bubble.

I'm very frustrated the bubble is re-inflating. EVERYONE who qualifies to buy is out shopping. Oh goodie. Now class, what happens after they have all bought? Hmmmm?

Got ?
Neil

NOTaREALmerican wrote:

Bob Dobbs wrote:
President Kucinich will solve all these problems in 2013
Only people like this can change "the system", which means it can't happen. I'd love to see him appoint Ron Paul as Fed Chairman.

"I'd love to see him appoint Ron Paul as Fed Receiver."

There. Fixed that for ya.

Bubblisimo Gerkinov wrote:

An investment strategist who uses terminology like 'all in' ... hmmmm.

When it is OPM (and your commission), why not?

Nanoo,

The Fed has some good info on reverse repos.

here

Fed reverse repos are settled DVP, where securities are moved against simultaneous payment. In this case, the Fed sends collateral to the dealers’ clearing bank, which triggers a simultaneous movement of money against the security. At this point, reserve balances are extinguished. When the deal matures, the dealer sends the collateral back to the Fed DVP, which triggers the simultaneous return of the dealer’s funds. This act re-creates the reserve balances that were extinguished on the front leg of the transaction.

Think force feeding MBS securities into financial institutions in return for reserve dollars... rut-roh.

Jonathan - force-feeding rarely works well unless you plan to slaughter the livestock while they are still young and don't care about longevity or later-term health of the animals... and I would guess that the goslings and calves don't much appreciate it either.

oooh, good work Jonathan. I really like that last line..."This act re-creates the reserve balances that were extinguished on the front leg of the transaction".

Um is this a primer on how to launder money?

This can't beat the best modification out there - 12 to 18 months of free rent ... and no hassle of paperwork!

noob goldberg wrote:

"Homeownership Preservation Office".

Taxidermy for the National Archives

thread music...

YouTube -

Lord help us, allah help us, buddha help us...ummm wait, my bad

Goldmans sachs help us....

Forget F#@%ing Flipper.

Here's the new improved theme music:

Skippy!

resistance is futile, we eat homes, grandmas SS check, sick babies and their puppy dogs too.

ghost, take a camera with you. seriously.

Since cities in the US are incorporated, can't they
all be sliced and diced and sold?

Corporation broke? How about a buyout?

GS buys Vegas. China buys LA. The EU buys NYC.

Phoenix can be sold to an anonymous Canadian and turned into a motocross track.

adornosghost wrote:

might get arrested today.

GET A JOB YOU HIPPY! I DON'T HAVE TIME TO PROTEST, I WORK FOR A LIVING. AND GET A HAIRCUT!!!!

Jonathan wrote:

Does anyone have a solid idea of why the banks / servicers are refusing to make permanent modifications?

Insolvency? The that the taxpayer will eat all the losses?

I was driving in No. VA and I realized if it got so bad that people had to eat dogs that each dog I saw is probably more expensive than kobe beef per pound.

The last time the Jehovah Witnesses were on a conversion drive in my neighborhood, I saw them about 4 doors down, and turned on the stereo and played Jimi's * on repeat mode, awaiting their arrival.

They knocked on the door, a mutt & jeff team dressed for a lively funeral, and I told them I was a Zoroastrian, which seemed to unnerve them... shoving a copy of Awake magazine in the door jamb, they retreated purposefully.

• YouTube - All Along The Watchtower - Jimi Hendrix (studio version)

Much of it is simply being overwhelmed and understaffed. I think they are having a high turnover rate as well. These people manning the phones don't seem particularly bright so I'm sure they are being paid peanuts. The guy that started off being in charge of my mod has already been replaced. When you try to call with requested information you get a jam stuffed message box that is too full to leave a message in.

Jonathan wrote:

Does anyone have a solid idea of why the banks / servicers are refusing to make permanent modifications?

Doesn't "permanent modification" mean reduction in payments? Why would a servicer do this unless they were absolutely sure they couldn't squeeze the mark for all they've got at the current payment.

If I were a servicer I'd make sure the hapless customer went through collection hell first, before I'd consider a modification.

I feel for you and it's happening everywhere in this financial "service" con game.

I wonder if filet of fido goes down the gullet ruff or easy.

As long as it is the neighbors dog - probably pretty easy.

Mortgage Modifications would be low or no profit, so isn't it better for banks to focus on borrowing from the Fed at 0% and speculating?

NOTaREALmerican wrote:

I DON'T HAVE TIME TO PROTEST

Sure you do! Over 10% of your fellow Americans have the time to protest, why don't you?

yagij wrote:

Over 10% of your fellow Americans have the time to protest,

God damn hippies... All they do is complain about Merica. LOVE IT OR LEAVE IT HIPPY! You think you can live someplace else and not work? We should send all your asses to EYE-RAKE that what I'd do. When I was your age, we didn't complain - we worked. Coddling hippies who hate freedom and democracy is why this country is going to hell, I tell ya.

In First National Bank v. Daly (often referred to as the "Credit River" case) the court found: that the bank created money "out of thin air":

"[The president of the First National Bank of Montgomery] admitted that all of the money or credit which was used as a consideration [for the mortgage loan given to the defendant] was created upon their books, that this was standard banking practice exercised by their bank in combination with the Federal Reserve Bank of Minneaopolis, another private bank, further that he knew of no United States statute or law that gave the Plaintiff [bank] the authority to do this.
The court also held:
The money and credit first came into existence when they [the bank] created it."

If all credit is created out of thin air with the flick of a pen, then all debt can be forgiven as well. I want a debt holiday.

Lobbyist Ben Dover wrote:

I haven't seen any hippies at the tea parties have you?

Yeah, good point. But, do you understand why?

All the Hippies voted for Obummer, why would they protest?

Jonathan wrote:

Does anyone have a solid idea of why the banks / servicers are refusing to make permanent modifications?

I'll take a stab at it although much has been discussed here.

Permanent modifications will not be permanent as the RRE market continues to see downward pricing pressures particularly in the hardest hit areas. I believe CR reported about mods being made by F/F etc. going back into default in 6 mos or less. Also, proving income and getting that income/loan ratio correctly is a bit of a sticky wicket particularly if the homeowner is in a home which is 2-3x's over their income capacity. With continued joblessness, the odds of a permanent refi becoming a default increases, putting the home on the balance sheet of the lender. This also means they are responsible for the sale of the home and foreclosure.

It is a big fat mess, it is deflation at least in CRE and RRE and it isn't abating despite all attempts made by Bernanke and crew.

do you mean the one in their Citi branch office setup in 2007?
or the one in the JPM branch, set up in 2004?
Maybe Paulson knows...

Community Developments Investments

I don't know what treas.gov is doing selling them though, I'd blame the Chicago link, but I don't think they actually cared about that in 2006.

As for the actual OHP office in OFS within the Treasury, that was setup in July 2008?
Presumably the founding law, EESA of '08, sets up the appropriate Congressional supervision.

Here is the oversight structure FinancialStability.gov | U.S. Department of the Treasury
pursuant to 104(g) of EESA '08 - with minutes of meetings and quarerly reports.

OT, the pay czar "cracks down" on over-compensated upper management at B of A. Guess that talent will flee soon w/such horrible compensation packages being forced upon them. US pay czar OKs changes for 2 top BofA executives

The real hippies have become the Establishment.

The neo-hippies are as superficial as the 'others' they despise.
They shared a feeling of superiority and a hatred of Bush.
And they wrapped it in rhetoric that made them feel good,
even if they never got around to internalizing it.

The counter culture was wrecked anyway as soon as it stopped
being about rejecting an inherited thought system and started being
about joining the culture of the opposite. No wonder it turned out the same.

More short term thinking--it also means a current & future increase of people on the VA & Social Security disability rolls, need various forms of assistance, possibly also an increase in domestic violence, kids w/out functioning parents, homeless people, people w/PTSD, etc.

If the borrower is seriously underwater then conversion to a 'walk away' loan is a likely outcome.
~splat

Kristina,

Is Saxon making any money doing modifications (just the $1000 from the gov right)? Or are they likely making more money on late fees and the like?

It bugs me that people have to withhold mortgage payments to 'get attention'. Do the late fees get forgiven, or is it another chunk off the mortgagee?

It just doesn't seem to pass the sniff test. :frownyface:

Restaurant Index Shows Contraction in October

it just keeps getting better...Chelsea Clinton marrying a GS

How about the guys dad..a real winner for a congress member...
Clinton daughter, Chelsea, engaged to be married - Yahoo! News

I'm sure they will tack on late fees to the back end of the loan. The six payments I've made in the trial period are NOT being applied to my mortgage either. They are in a "suspense" account. I'm praying they pay my taxes and insurance from the money they have in that account which should be in escrow.

Bubblisimo Gerkinov wrote:

let me know how that works out for youz guys.

To justify his plan, the Governor-General of India Lord Auckland issued the Simla Manifesto in October 1838, setting forth the necessary reasons for British intervention in Afghanistan. The manifesto stated that in order to ensure the welfare of India, the British must have a trustworthy ally on India's western frontier. The official British position that their troops were merely supporting Shah Shuja's small army in retaking what was once his throne was generally seen (at the time, as well as now) as pretext for incorporating Afghanistan into the British empire. Although the Simla Manifesto stated that British troops would be withdrawn as soon as Shuja was installed in Kabul, Shuja's rule depended entirely on British arms to suppress rebellion and on British funds to buy the support of tribal chiefs. The British denied that they were invading Afghanistan, instead claiming they were merely supporting its legitimate Shuja government "against foreign interference and factious opposition". However with Persia ruled by a pro-Russian it may well have been the case that Britain was trying to install a pro-British leader in Afghanistan to prevent Russia becoming the dominant power and threatening the North-West Frontier.[1]

The reasons tend to rhyme
First Anglo-Afghan War - Wikipedia, the free encyclopedia

Thanks, I'll check it out. I'm not underwater and I don't want to walk away. I love my home (family home was my parents but they died with a mortgage). I might withhold payments though. My fear is they will kick me out of the trial program if I do, that is one of the stipulations to remaining in the program is you must make on time payments.

We need a Home Stamp program.
We need it for the children. Too many children in America are going to sleep at night not knowing where their next mortgage payment or rent payment is coming from. These poor suffering children need free Home Stamps and they need them now. Only an inhumane bastard could fail to support this program. After all, it’s for the children.