paularush

http://lenderliabilitylaw.com

• ON: Fri Aug 8th 10:36 AM
  Commented on:

  Reuters: Who's Buying Distressed Debt - And Why

  One thing not mentioned here that is the main jist of the reasons for purchasing-these are distressed asset funds, everyone is doing it including big players like Goldman Sachs. Why? They are buying the assets for pennies on the dollar. Anywhere from 4cents on HELOCS -20-30 cents on the dollar for non performing loans and REO'S - and then ENFORCING THEM AGAINST THE BORROWER FOR 100 CENTS on the Dollar. Once again the WALL STREET CRIMINALS prosper at everyone elses expense. So New Century, Aegis, American Home, Merrill Lynch and many others, at the same time they REFUSE to modify loans and refuse to work with borrowers, sell off the same loans to "friends" and former financing partners`. In some cases it is the executives who created the crap forming LLC's to buy up the same crap. The investors on the front end got screwed, but the execs know how to turn their lemons into lemonade! So it has nothing to do with being bullish or bearish
  (maybe BULLSHIT) it has everything to do with simple math. At pennies on the dolllar they see a profit no matter what they buy.
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• ON: Fri Aug 8th 10:30 AM
  Commented on:

  Blackstone Now Bullish on Subprime?

  One thing not mentioned here that is the main jist of the reasons for purchasing-these are distressed asset funds, everyone is doing it including big players like Goldman Sachs. Why? They are buying the assets for pennies on the dollar. Anywhere from 4cents on HELOCS -20-30 cents on the dollar for non performing loans and REO'S - and then ENFORCING THEM AGAINST THE BORROWER FOR 100 CENTS on the Dollar. Once again the WALL STREET CRIMINALS prosper at everyone elses expense. So New Century, Aegis, American Home, Merrill Lynch and many others, at the same time they REFUSE to modify loans and refuse to work with borrowers, sell off the same loans to "friends" and former financing partners`. In some cases it is the executives who created the crap forming LLC's to buy up the same crap. The investors on the front end got screwed, but the execs know how to turn their lemons into lemonade! So it has nothing to do with being bullish or bearish
  (maybe BULLSHIT) it has everything to do with simple math. At pennies on the dolllar they see a profit no matter what they buy.
  View article »
• ON: Sun Aug 3rd 10:13 AM
  Commented on:

  Dinallo Comes Down on Monoline Bears

  I agree with all the previous posts, I continue to be amazed at the arrogance and stupidity of Tom Brown. He and Bush should put the cheerleader uniforms on together, that's about all they are good for.
  The fact that TB represents BankStocks.com says it all. No one is telling the truth in the industry or our government about whether or not banks and insurers are insolvant, with the "spin" that the rumors would take the companies down. So let's not speak the truth and warn the good honest people, let's protect all the criminals who caused this to happen right to the bitter end. Do you think any of them will be left with uninsured deposits or holding worthess stocks? I quess not. For that matter they won't even be holding US dollars. They just need more time before the truth comes out to move all thier wealth elsewhere. This writer should stick with facts and not his fantasy land worthless observations.
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• ON: Tue Apr 29th 09:56 AM
  Commented on:

  How Housing Finance Actually Works

  Once again a moron speaks! I just wish financial types with their heads in the sand, would leave them there and shut up. Misleading investors into thinking everything is fine, so they will continue to give money to idiots to mismanage, is outrageous. What isn't mentioned here is the fact that many non subprime loans are defaulting, and no mention of the NEUTRON BOMB loans, the pay option arms, negatively amortizing crap. These loans feature a payment of 1%-2% of the actual loan payment, with the rest negatively amortizing into the balance. So thanks to GAAP the people holding this crap can claim they are collecting full payments when they are not. In the end the "phantom profits" will disappear as loans recast to 110% LTV (Countrywide vintage) or 125% LTV ( American Home Mortgage vintage) at a time when home values are plummeting. American Home did about 65% of their business in these loans in many of the worst hit markets, CA, FL, etc.
  Also, the mortgage insurance, all these junk loans are counting on to bail the investors out, is about to implode as insurers and credit default swap partners are fighting back. In the case of American Home Mortgage, TRIAD is in the middle of a battle not to pay claims, and Bank of American refused to pay out on a credit default swap on AHM Broadhollow and Melville LLC loans. You can read all about it in the legal filings on EPIQ. Have you looked at the Mortgage insurers stocks. TRIAD, RADIAN, PMI, MGIC, lately? Can they weather the avalanche of claims coming? YSo the 25% to 30% insurances which lenders locked in to insulate the portfolio, may be disappearing, the home values are certainly plummeting, and the loan balances are rising. A recipe for disasters yet to come. When will all this implode? Well vintage 2007 is some of the worst loans ever, and pay option arms take three years to recast in some cases, and payments will then quadruple on homes not worth what is owed on them. What do you think will happen then? The worst is over. I don't think so! Don't let the industry fool you.
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• ON: Thu Apr 17th 09:39 AM
  Commented on:

  Mortgage Lenders Can't Escape Morgenson's Wrath

  The author of this article is a MORON. First, the banks, CAUSED the artificial boom that homeowners believed was a legitimate real estate appreciation that they bought into by borrowing against a stable asset - their home. What homeowners didn't know was a PONZI scheme was underway with the monkey underwriting and lending to anyone who was breathing, thereby sending hordes of buyers into the market with five times the amount of money they would have really qualified for, CREATING the real estate bubble. The second part of the PONZI scheme was the FOOLS on WALL Street financed the entire debacle no questions asked. As long as the money kept flowing the scheme continued. When the dance stopped, everyone was left holding the bag - Except the CEO's and various execs on Wall Street who walked away with millions and billions of everyone elses money. Not one of these parties cared - they were earning massive amounts of money- by PLAYING WITH THE MONEY OF OTHERS. THen the BANKS decide that now that the crash has occured, the PONZI scheme has destroyed everyone, they no longer want to honor the agreements they signed to lend money. The home equity lines of credit they ALREADY gave people, are being yanked without warning. So, this is just another abuse of the power the banks have over the rest of us. The BANKS are taking a massive amount of money from the FED, 500 billion dollars, and can't honor the commitments they've made. The only thing they are doing is FORECLOSING to fix the liquidity problems they created for themselves. The author of this article from BANK STOCKS.com says it all. YOU ARE ONE OF THE PEOPLE WHO MADE MONEY ON EVERYONE ELSES MONEY. I HOPE YOU SLEEP WELL AT NIGHT THINKING ABOUNT THE MILLIONS OF FAMILIES, CHILDREN, DOGS AND CATS BEING TOSSED OUT ON THE STREET THANKS TO THE BANKING INDUSTRY AND THE MASSIVE ABUSE THEY PERPETRATED ON THE AMERICAN PUBLIC.
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• ON: Sun Apr 6th 16:21 PM
  Commented on:

  Why The Fed Can't Bail Us Out

  The author of this article was dead on, just sadly no one wants the truth, the American public is just like the first poster, tell me the lies I want to believe........
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• ON: Sun Apr 6th 16:20 PM
  Commented on:

  Why The Fed Can't Bail Us Out

  To the guy who posted the first response, it is now April 12, 2008 and Bear Stearns has gone Bye-Bye, and everything continues to meltdown, and your post now certifies you as an idiot. Save your comments when you know not what you speak of....
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• ON: Sun Apr 6th 12:44 PM
  Commented on:

  Backroom Bear Stearns Deal Exposed

  If the American public doesn't wake up soon from the fog they are in, take the time to understand what is going on, we are all doomed to financial disaster. Case in point Bear Stearns. First, I do think it is possible that a collapse could have put a great strain on the financial markets as most people have no idea how interconnected all of these institutions are. They have developed sophisticated financial instruments I don't think they understand. They have credit default swaps, interest rate swaps, they buy, sell, trade, pledge assets to each other the way some would trade baseball cards. Bear Stearns head fraud investigator John Gray gave a presentation that they had found CEO's and mortgage companies were double selling loans to different investors. He said it is easy to do as investors did not speak with each other. I recently discovered another possible way to double pledge loans, its a 1500 member bank ( small banks) organization called Promontory Interfinancial Network. They have developed a financial tool where people can invest millions of dollars and it is all FDIC insured. YES your tax dollars will insure the biggest financial collapse of all times! It seems American Home Mortgage(bankrupt) owns American Home Bank ( formerly Flower Bank) and through this bank they can pledge loans as collateral and take operating capital. The problem is they also have 78 securitized trust where loans were pledged and investors think they own those loans as security. Now if a company is in trouble- Could they pledge a loan into the trust and pledge it into the Bank they control as well? YOu figure it out. The FED in my opinion is hiding the most disasterous revelation which would shake the markets to the very core. In the process of bankruptcy a companies every dealing is laid bare for all to see. They couldn't risk that with Bear Stearns. So hence the back end deal, to keep it all under wraps. The problem is, it won't work, this is a sunami of epic proportions that the FED doesn't have enough money to undo. The only hope of the American people, taxpayers, and small investors is to pray that our government ( CONGRESS - Bush won't do anything) has the stomach to go after the people who walked away with all the money. Will they do it? Right now it looks doubtful, they are in full swing of cover-up, conceal, and protect the criminals. I'm afraid that while everyone is blissfully buying the twisted reasoning for the actions of the FED, the high level Wall Street and the elitist rich are moving there assets out of the American market, preparing for the coming collapse. My opinion, take your money out now, or move it to Dubai ( seems to be the choice of many) and if it all blows over, put it back in. Believe me, remember Martha Stewart, the rich will get the word and jump well before you and I will even know what hit us. WAKE UP- PLEASE!
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• ON: Sun Mar 9th 11:56 AM
  Commented on:

  Freefall Fed Policies?

  Finally, someone who actually does understand this entire debacle and the road we need to take to recovery. Can you call Bernie or Paulson, they really need a hand. At the last meeting, under grilling from the Senators, Paulson said, "If you've got any creative ideas, I'd be glad to hear them." Problem is, when you call them, write them, fax them, they ignore you. Believe me, I've tried. Our government doesn't seem to have the backbone to hold the players accountable, and dare we say, the criminals who ran off with all the money. The plan, as it stands now, and you so eloquently stated, is to give BANKS more money (liquidity) and lower their cost of borrowing (fed rate), which is not being passed on to consumers. It's a "BANK BAILOUT PLAN." Everyone's running around saying don't bail out the borrowers, but no one is realizing, they ARE BAILING OUT THE BANKS. The worst part is the banks have no intention of helping the borrowers and are all in save ourselves mode. A strategy ultimately doomed to backfire and fail. Players like Wells Fargo, Deutsche Bank, and Bank of America are using the bankrupt entities to hide behind while all the while they own the loans. Borrowers CAN ASK for the true owner of the note under TILA 1641(f)(2) and the servicer refuses to comply. See Kratz v. Countrywide case in Philly, and read the transcript from the hearing. Go on EPIQ and read the transcripts from the American Home Mortgage hearings on Oct. 31, 2007, and Feb. 1, 2008. The "servicer front" just refuses this information. In June, I attended the HOEPA meeting at the Federal Reserve Board, and I stated at that time the financial markets would collapse. All of the financial types looked at me as if I had five heads and dismissed me as irrelevant. Just weeks later the first two Bear Stearns hedge funds collapsed. I like to say I told you so, and normally it would be fun to do that, but not when millions of families are losing their homes due to this systemic failure in our government to prevent this debacle, failure to enforce the laws on the books, and lack of adequate response to what is argueably their failure. The biggest dirty secret is, they are selling off assets at fire sale prices to each other, pennies on the dollar in some cases (New Century (30Cents), American Home Mortgage(50Cents), but if you're a consumer asking for a loan modification, FORGET IT. So instead of accepting a reduced payment over a period of years which might cost a bank a few thousand dollars over a long period of time, to be made up later from interest paid over time, they prefer to fire sale assets, to other financial players who then turn around and foreclose enforcing those same loans for 100 cents on the dollar and profiting. Due to the incestuous relationships, ultimately they will all profit again. So it's, you help me, and I'll help you. Who's losing is the person whose retirement funds were invested in the fire sale assets, the taxpayers who will pay for all the losses the government is covering, and the taxpayers who will pay for all the social services the bankrupt and homeless will need. But also, don't forget these criminals stole the retirement funds of millions of elderly people, both in the stock market investments, and also in equity in their homes. The ripple will be so severe, it will be felt for years to come. I was sick to learn how many seniors who could have obtained safe reverse mortgages, were put in Pay Option Arms, and lost their home because of it. I, for one, am outraged. I petitioned the bankruptcy court of American Home to offer the same opportunity to bid for borrowers to bid for their loan as the FORMER financing partners get (the ones holding the fruits of fraud, hiding the involvment) and it was denied. Even though the bankruptcy laws clearly state, at an auction free and clear, ANY ENTITY WITH ANY INTEREST CAN BID. I also demanded certain protections be added to the loan agreements which were absent before. 363(O) states if you buy an interest in a consumer loan, you are liable for all remedies which could be asserted against the original holder. That I was successful on. Now if anyone can just find force them to tell who owns the loan, we can all enforce our rights! Who has more of an interest in buying the loan for 30 cents on the dollar then the homeowner! As long as our government allows this sort of illogical and self-serving behaviors to continue, there is no hope for the consumer.
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• ON: Thu Mar 6th 08:30 AM
  Commented on:

  Bernanke's Plan Could Work

  It gets very tedious listening to people, including the author of this article who assert they know what will work and won't work. I've spent a thousand hours plus investigating this industry, the practices, and why the lenders, and associated Wall STreet players are NOT MODIFYING LOANS. So, having said that, until you understand the securtized trust, the mortgage insurance on these entire pools, and the credit default swaps, senior and subordinated notes, and other wonders of financial engineering, you should not assert to know what will work. The only thing that is true is the foreclosure costs are rising as borrowers are fighting back in epic numbers, the lenders are having trouble selling the homes they foreclose on, and the MI insurers and credit default swap partners are refusing to pay, accusing the lenders of fraud. Recently Bank of America and TRIAD did this to American Home. However, John Gray, Senior Fraud investigator for EMC/ Bear Stearns has also asserted that it is being discovered loans were "Pledged" in more then one place. So add that possibility into the mix and you begin to get why in many cases loans can't be modified. Loans have even been pledged into CDARS, where a bank gets to borrower money to make loans, the money they borrower is fully FDIC even though it is well over the 100,000 cap, and when all those defaults come down, the S&L crisis will look like a walk in the park. If these same loans were pledged into trust and borrowered against through small banks belonging to this network, then you've got some even bigger issues. So modify loans, that's a joke. Even Paulson said that only 1% of loans are being modified. The dog and pony PR show is about to be unveiled, when the entire financial markets can no longer cover it up. So many borrowers can't be helped, not because the borrower wasn't put in a predatory loan, or because they shouldn't be helped, but because the lenders greed and illegal practices may make it impossible for them to modify loans. The government will have to step in, this is becoming obvious. I believe they will step in by spring or early summer. This topic is much more complicated then what I'm asserting here, and I would need a thousand hours and a book to educate you on these issues. Even Bernake needed a tutorial on the securitized trust. My guess he still doesn't get it. I would just simply like to say, please stop asserting things based on press releases you've read from the industry, or a surface analysis of the situation. Do the research yourself. Dig deeper, or contact me and I would happy to attempt to explain it to you, if you've got a few weeks to spare.
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• ON: Sat Apr 14th 18:49 PM
  Commented on:

  Subprime Revelation: Early Payment Default-ers Just Don't Care

  I don't know the statistics, but I will venture an educated guess that early payment defaults are also occuring because aggressive lenders were targeting homeowner already in trouble to refinance into some crazy products like the option arm loan. THey promise a lot and deliver very little. So quickly the person realizing that they are not going to be in better shape after the refi, but much worse with a pre payment penalty, refinancing costs added into their balance and negatively amortized interest added on the balance every month. They realize they are doomed. Prices are falling and balance on principal is going up. SUICIDE. So the broker who did the deal he should have never done in the first place makes a bundle, the loan got sold up the food chain to investors, and now the SH_ _ is hitting the fan. Investor in the beginning were willing to overlook a few here and there, but as the housing slump has continued and people are trapped in these homes, more and more are walking away. Investors are now saying, "What's this crap you sold us. Buy it back." But in most cases lenders can't buy it back. New Century for example. So the law suits are flying. But what many people don't realize, now that the SH_ _ is hitting the fan and lawyers are examining consumers loan docs, surprise surprise, they are finding all kinds of laws were broken in the selling of these loans. Everything from RICO, TILA, RESPA, ECOA, DPBA, UCC, and many other violations of federal and state laws. Many of these companies were operating as no more then white collar criminals figuring a multitude of ways to milk consumers and investors dry. So there you have it, the rest of the story and my explanation why many may have, and may in the future just walk away. AND SUE!
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