Daniel Indiviglio is miffed by the chorus of cries for mortgage modifications as reparation for...


Daniel Indiviglio is miffed by the chorus of cries for mortgage modifications as reparation for shoddy foreclosure processing, which will further punish upstanding taxpayers - who may yet be forced to bail out negligent banks: "More modifications wouldn't stick it to the banks," he writes, "they would stick it to the taxpayers who are dutifully paying their bills."

Comments (28)
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
     
    I thought we got rid of TBTF?

     

    Are we still at the point that if it's bad, taxpayers lose, and if it's good, banksters win?
    Because we know Bank shareholders have not been winning.

     

    Crony Capitalism, Please, just make it stop.
    14 Oct 2010, 06:39 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
     
    That said however,
    I am perplexed by politicians crying about people being "Thrown out of their Homes" when many never even had a down payment or, "skin in the game"
    It sounds like they were just dead beat tenants that rented and/or squatted (and have enjoyed) living in a facility that was always beyond their means.
    And to use the term " their homes" is extremely disturbing.
    In fact many should be grateful that they got the free ride they have already gotten, not crying foul about the foolish and incompetent banksters they snookered. Whoops, sorry, banksters have not paid the price. Only shareholders and taxpayers.
    14 Oct 2010, 07:15 PM Reply Like
  • Tack
    , contributor
    Comments (16281) | Send Message
     
    Yes, by all means, let's keep rewarding those irresponsible folks, who bought houses they had no chance of affording, and who reneged on their payment obligations, and who have already been living for months or years in those same houses, mortgage-payment free, condo-fee free, property-tax free, maintenance-cost free. Yeah, that's a great idea, isn't it; after all, they're "victims," right?

     

    While the liberal mass media, socialist politicians, class-action lawyers and agitating "rights activists" champion their cause, these folks are making suckers out of every responsible taxpaying citizen and mortgage-paying homeowner in America.
    14 Oct 2010, 06:40 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4293) | Send Message
     
    There is a very real possibility that the moral backbone of the U.S. may break under the weight of the ever increasing moral decay.
    14 Oct 2010, 07:03 PM Reply Like
  • mdmrjsds
    , contributor
    Comments (496) | Send Message
     
    Yes, by all means, let's keep rewarding those irresponsible sellers throughout the mortgage chain, who sold mortgages they had no chance of collecting, and who reneged on their legal obligations, and who have already been enjoying the obscene profits for months or years on those same house sales, who have been enjoying free money to play the yield curve, no clawbacks, no mark to market, no salary cuts or walking papers. Yeah, that's a great idea, isn't it; after all, they're "victims," right?

     

    None of the banks that received public money should have anyone in the top three executive ranks that was there before the crisis. Those are the people that are paid the big bucks to look to the firms strategy. And they didn't, so they are incompetent and are taking their pay fraudulently.

     

    What should actually be happening to them is they should be sold off in an orderly fashion now that the crisis is over. You say we would lose their expertise? Such expertise we don't need, and would probably be better off without.

     

    PS I'm just injecting a little balance here. The fraudulent buyers are just as much at fault as the fraudulent sellers.
    14 Oct 2010, 09:57 PM Reply Like
  • davidbdc
    , contributor
    Comments (3194) | Send Message
     
    Agree 100% that all TARP receivers should have their executive offices cleaned out and they shouldn't be eligible to work for any government supported bank.

     

    But I can't agree that foreclosure freezes or mortgage modification programs are the answer. The answer is to follow the rule of law (which should have been followed since day 1).

     

    Banks that are missing paperwork will have to find it. If they can't they will have to go through the process of proving they own the mortgage, then they can foreclose.

     

    I have zero sympathy for the banks. I have zero sympathy for the folks that have been living rent free for almost two year - mainly in homes that are well above anything they could have reasonable hoped to afford.

     

    The only folks I have sympathy for in this whole mess are the senior citizens that owned their homes and were hoodwinked by slimy mortgage brokers who assured them their social security payments would easily cover the mortgage - leaving out the part about in two years they would be screwed.

     

    There is no government program that can replace personal responsibility.

     

    If someone came to me and told me that I could live in a 500K home with a pool in the backyard and all I'd be responsible for was moving in and moving out, no rental payments - I'd assume there was a catch or it involved some sort of illegal activity. And actually in a way it has involved illegal activity - unfortunately, that activity was encouraged, then ignored, then covered up by our government.
    14 Oct 2010, 11:41 PM Reply Like
  • enigmaman
    , contributor
    Comments (2868) | Send Message
     
    This is by no accident, instead of the AG of all states going after the lenders they will with the blessing of the Admin negotiate a settlement that will include mortgage loan write downs that also include rate modifications, its what Obamas new Czar Ms Warren (I believe is her name) thinks is FAIR, she has said "we need to find a way to keep people in their homes with affordable loans", need I go further, this is a done deal, wait for the headlines
    14 Oct 2010, 07:03 PM Reply Like
  • Hendershott
    , contributor
    Comments (1761) | Send Message
     
    Regardless of what happens to the banks, the law is pretty clear on the subject. Legal proceedings require proper paperwork. Foreclosures can and should proceed, but the paper work has to be legal.
    14 Oct 2010, 07:10 PM Reply Like
  • ebworthen
    , contributor
    Comments (2799) | Send Message
     
    Debase the rule of law, whether to reward banks or the individual for failure, and you debase every tenet of our society.
    14 Oct 2010, 07:17 PM Reply Like
  • Bozerdog
    , contributor
    Comments (463) | Send Message
     
    Exactly.

     

    The banks are not accountable. BAC, WFC, GS they were bad at their business. They are still here and the banks who were solvent didn't get rewarded with expanded business. GM should be gone, but they are still here operating. Ford should be trading at 40$ per share but they are not. Oh what a tangled web we weave.
    14 Oct 2010, 08:14 PM Reply Like
  • frosty
    , contributor
    Comments (720) | Send Message
     
    if a bank or its law firm screws up a foreclosure, who should be held accountable? everyone should be held accountable for their own mistakes, including taking shortcuts that turn out to be the wrong way.
    14 Oct 2010, 07:31 PM Reply Like
  • Speakeasy
    , contributor
    Comments (413) | Send Message
     
    We will be bailing out the banks again, we are already bailing out Fannie & Freddie and we will be bailing out all the irresponsible folks that bought McMansions they couldn't afford in the first place and then used them as piggy banks - i.e. the Earls from Southern California that have nine kids and purchased a $500K home, when value went up they refied for $880K and apparently blew the $300k somehow because they were not paying mtg and were foreclosed on. When foreclosure gate broke out, their attorney had them move back in to the house. Now they are sitting pretty paying nothing!!!

     

    Its about time responsible people rebell and say enough is enough!
    14 Oct 2010, 08:12 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4293) | Send Message
     
    When we start deceiving ourselves into thinking not that we want something or need something, not that it is a pragmatic necessity for us to have it, but that it is a moral imperative that we have it, then is when we join the fashionable madmen, and then is when the thin whine of hysteria is heard in the land, and then is when we are in bad trouble.
    Author: Joan Didion
    14 Oct 2010, 08:32 PM Reply Like
  • enigmaman
    , contributor
    Comments (2868) | Send Message
     
    Yes agreed about the lenders paperwork, but when the deal is struck between lender and AG tell me its just a coincidence
    14 Oct 2010, 08:33 PM Reply Like
  • Racingprocup
    , contributor
    Comments (17) | Send Message
     
    You people keep going on about the people who are squatting or not paying or whatever, but there is another side to this coin, that no one is looking at. I will present my case as an example.
    I bought a house three years ago for 365,000 at a rate of 5.85 for thirty years. I put 20 percent down plus fees. Went to the closing with a 92 grand check. I have been dutifully paying my payments since. I have another house that I moved out of that I bought for 232,000, put 80,000 down at the time of purchase, have been dutifully paying for that one for five years.
    Now after all this mess has transpired. I have lost all equity in the first house, could pay for it off only if I sold it. I tried to refi the present house I am in and because of property values taking a dump. I am now underwater and cannot. It will take me ten years to pay down to what the house is worth. So my down payment and 13 years of paying for nothing.
    Now the banks are able to refi the loan that they borrowed to loan me the money to buy originally, but I am not allowed to take advantage of the low rates, due to the value of my house. So yes I believe that I am due a modification on my loan, bank policies and government adiministration put me in this position, not me. I had nothing to do with them loaning money to people in my nieghborhood who could not afford their homes and had to be foreclosed on.
    14 Oct 2010, 08:47 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4293) | Send Message
     
    You are due nothing at the expense of taxpayers and neither were the banks. If you got screwed by the banks, sue them. Do you expect the taxpayer to bail you out when your other investments go sour? Don't answer that. Half our country is parasitical and you sound like you are too. Corrupt, crony capitalism does not justify immoral behavior by everyone else but that is where we are heading, I fear.
    14 Oct 2010, 08:55 PM Reply Like
  • enigmaman
    , contributor
    Comments (2868) | Send Message
     
    Racing you are due a refi and or modification only if it makes sense according to the underwriting guidelines currently in place, that you home lost value as a result of the drop in property values is part of the rules of the game (see instructions included in the box) you agreed to when you agreed to play, and remember the main rule " nothing is guaranteed in life except death and taxes" and that you can take to the bank
    15 Oct 2010, 08:21 AM Reply Like
  • LivininCDM
    , contributor
    Comments (9) | Send Message
     
    1. Remove all persons residing in homes that have been foreclosed on as soon as possible. (owner loses)

     

    2. Publicly auction the home, starting bid shall be $1 no reserve. (bank loses)

     

    3. Someone purchases home at auction, putting 20% down if loan is required. (new owner wins, bank wins with new mortgage)

     

    4. Legitimate price of homes is reset, banks quickly clear balance sheets and replace nodoc loans with legitimate 20% down loans. Neighboring properties may suffer loss of property value but can have property taxes reset to offset some of the loss.

     

    You didn't lose your home because you never owned it to begin with!
    14 Oct 2010, 08:48 PM Reply Like
  • dfbell
    , contributor
    Comments (1462) | Send Message
     
    can have property taxes reset??
    never gonna happen. never.
    15 Oct 2010, 08:35 AM Reply Like
  • Racingprocup
    , contributor
    Comments (17) | Send Message
     
    If the banks have to modify the loan and eat the loss as they should, since much of this present situation is their fault, why would that involve the taxpayer. Government administration to bail out the banks and other big business and telling joe average to pound sand is part of the problem. And fine do not modify my loan, but give me the chance to refi the loan at the lower rate that the banks are reborrowing their money at.
    Any you appear to be insinuating that I want a free ride. The only payments I have in life are three house payments, which I have never been late on. In fact all are paid a month in advance. My vehicles are paid for. I paid for my four year double major college degree as I went, no loans whatsoever, and even graduated in the top ten percent of my class. So yes I do expect the same treatment as the big businesses have been getting.
    I am a General Contractor and one of my customers owed me 332 thousand last year and decided not to pay. Go to court and I had to settle for recieving 132 on the note. Government didn't come to my aid, and the customer laughed all the way to the bank.
    14 Oct 2010, 09:23 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4293) | Send Message
     
    You do not understand the banking system. When they gave you a loan, the money was created out of thin air. The only thing backing that new money is the mortgage note you signed. When banks borrow money the same thing happens, the Federal Reserve simply credits the bank's account and marks the loan as an asset. Our credit based monetary system has collapsed because the credits are no good, i.e. people and businesses can't pay back their loans. TARP was instituted to save the banking (monetary) system, but the banks are still insolvent. They just haven't been allowed to fail. The taxpayer is bailing them out, at present, with more "new" money.It's a Ponzi Scheme. The banks are using the money to prop up their balance sheets and speculate in the market. That's why you can't refi.
    14 Oct 2010, 09:39 PM Reply Like
  • Racingprocup
    , contributor
    Comments (17) | Send Message
     
    It was explained to me when I was borrowing the money that the banks are borrowing the money from a money source, (can't remember what they called it) and that is why you lock in rates. And why the rates cannot change unless they are able to get it cheaper before the loan closes. But they usually don't pass that on. If as you say the money was created out of thin air and interest rates are much cheaper now, why would it be an issue to just drop the rate in line with the interest rate now in effect.
    This is not trying to be a smartalec, but a bonafide question.
    14 Oct 2010, 10:16 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4293) | Send Message
     
    Refi at lower (market) rates is legit, but only if you refi your current balance. If your house does not appraise, then you can't refi the current balance unless you qualify for HAMP. The banks were bailed out to save the monetary system from collapse (arguably). The bailout was accomplished on the backs of the middle class. I understand your pain but you need to understand that we are on the cusp of history and if the fed cannot pull us out of this mess; albeit at a much reduced lifestyle, the game is over and society will have to be reordered, with or without social turmoil.
    14 Oct 2010, 10:34 PM Reply Like
  • Me and my monkey
    , contributor
    Comments (20) | Send Message
     
    When you give someone a no-documentation loan, it is like buying a lottery ticket. You really cannot complain, if you loose your wager.
    14 Oct 2010, 10:18 PM Reply Like
  • bdarken
    , contributor
    Comments (645) | Send Message
     
    Since it is really the middle class American taxpayer who is really taking the shaft in most of this, it is easy to begin wondering when they will simply stop paying their taxes...as others have stopped paying their loans?

     

    Has a tax boycott happened anywhere in America in the last century?

     

    Would organizing such a thing be considered sedition, or civil disobedience?
    15 Oct 2010, 02:00 AM Reply Like
  • Mr. Ed, Jr.
    , contributor
    Comments (745) | Send Message
     
    Once again, the wrong branches of our government are sticking their noses into places they do not belong.

     

    This matter does not need Maxine Waters or Barney Frank or any blabberring politician on either side of the aisle to be involved. (Yes, we know the politicians' routine...feign shock. react with alarm, jump to conclusions....get your mug on cable TV as fast as possible)

     

    This appears to be a simple matter of mortgage document fraud (on a scale never before seen in the history of the world, but, hey, if "We The People" can't take a joke...).

     

    This is a job for the judicial branch of our government. Subpoenas, grand juries, perp walks..... I miss them. Let's bring them back.
    15 Oct 2010, 02:40 AM Reply Like
  • dfbell
    , contributor
    Comments (1462) | Send Message
     
    Did Oprah become the new housing czar?

     

    "You get a free home, and YOU get a free home and YOU GET A FREE HOME! Everyone one gets a free home!!!!"
    15 Oct 2010, 05:07 AM Reply Like
  • dfbell
    , contributor
    Comments (1462) | Send Message
     
    Interesting that the big 5 spared no costs to setup/run their RMBS factories in 2005. Big bucks were shelled out to the likes of Vice President Fabrice "FAB!" Tourre to package and sell RMBS CDOs as fast as he could. Billions were pushed through with commissions carved off every step of the way. They had to "get a bigger boat" to store all the money. And what they couldnt sell, they got AIG to insure via a cheapo CDS.

     

    Now the foreclosures need to be executed and they are using $15 an hour highschool kids to plow through the paperwork. They whine that its complicated work and who woulda known that so many foreclosures would need to be processed. "Its natural for mistakes to happen."
    15 Oct 2010, 05:22 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs