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Thread: Looks like housing market is about to get big help from the government

  1. #19

    Default Re: Looks like housing market is about to get big help from the government

    "Consumer groups that represent the innumerate homeowners on the verge of a loan reset are irrelevant."

    What exactly is irrelevant? Is it OK to have a freeze on foreclosures?

  2. #20

    Default Re: Looks like housing market is about to get big help from the government

    Quote Originally Posted by Big View Post
    No Steve. The title of my thread is correct. You just have to read the article:

    Paulson and federal regulators have been holding talks with some of the country's biggest banks, mortgage investors and consumer groups trying to strike a deal in an effort to prevent an avalanche of threatened foreclosures in the coming year from sinking the overall economy.


    Banking industry executives generally praised the initiative. Daniel Mudd, chief executive at Fannie Mae, the nation's largest provider of home mortgages, called the proposal a ''positive step'' that would allow many borrowers to avoid foreclosure.

    The administration has come under criticism from Democrats who have complained that the proposals put forward so far have been too modest in light of the crisis facing the housing industry and the threat that the housing slump could trigger a full-blown recession.

    http://www.nytimes.com/aponline/us/A...in&oref=slogin
    Big,
    Lately in Ohio courts some foreign banks (one German, I think, and others) have come up against laws that stipulate a deed being present or evidence of who actually has title to a deed, during the foreclosure process. These banks (or financial organization's) lawyers have taken exception to this and have pointed out that the Ohio judges just "don't know how these things work".

    Apparently with all the bundling of the loans into finanacial instruments it's difficult to keep track of the legal documents for EACH real home.

    The Ohio judges have not been amused by getting such cavalier instruction regarding their lack of knowledge about "how things are done" and have been tossing foreclosure cases out of court left and right.

    Good for them!

  3. #21

    Default Re: Looks like housing market is about to get big help from the government

    "The homeowners should continue to suffer, and the lenders should continue to suffer."

    Completely ignoring that it is neighborhoods that are suffering.

  4. #22

    Default Re: Looks like housing market is about to get big help from the government

    Also Big,
    I wrote before of Jim Rokakas, Cuyohoga County Treasurer, and his presentation before the Cleveland City Club a couple of months back. He is part of the state-wide task force, dealing with the crisis, and they are being fought tooth and nail by the powerful and rich financial lobby.

  5. #23

    Default Re: Looks like housing market is about to get big help from the government

    One of the reasons that ;enders are fighting those types of cases is that they don't want to lose money. They have counted on that income and made business decisions with the knowledge that there would be a rate adjustment. This is just like your boss telling you that you will get a raise, then he goes to the courts to get out of what he promised you. You would fight tooth and nail to get your money, just like these lenders are.

    The rules are the same for all parties.

  6. #24

    Default Re: Looks like housing market is about to get big help from the government

    "They have counted on that income and made business decisions with the knowledge that there would be a rate adjustment."

    Yes and no. I don't believe they counted on THAT income. It would seem pretty obvious that the business decision was to prepare for a number of foreclosures. Maybe hire extra attorneys. Make sure they have accedidation for practicing law in a number of states. You can't tell me that they didn't have foreknowledge of an increase in loan defaults.


    So when I say that the title of this thread is wrong this is what I meant. Both executively and in the courts, in Ohio, the housing market (meaning the lenders, and other "paper instrument" holders) are being hindered by the government rather than helped.

  7. #25

    Default Re: Looks like housing market is about to get big help from the government

    Let me try a couple of other things on you.

    I believe it should be made illegal for a party that has lent money for a home purchase to assign said loan to another company. I think the bundling of home loans to be part of some type of financial market should be made illegal.
    A couple of exceptions would be apparent. If a company is bought then the loans move to the buyer. If loans go into default I could see allowing those loans to be "sold" to a collection type outfit, if that is a desired decision (hard to imagine).

    If a company goes completely out of business then the loans are FORGIVEN. After all, a company that no longer exists has no need of income or assets.

    For instance, if Key Bank, here in Cleveland, makes home loans they should be made to stick with those loans as long as monthly mortage payments are made.

    That foreign financial institutions should own a number of foreclosed homes within the inner city of Cleveland has me aghast. They are boarded up of course. And a blight.

  8. #26

    Default Re: Looks like housing market is about to get big help from the government

    Loans are poperty, just like anything else. They can be bought and sold, just like houses, cars, and clothes. If we limit loan service to only originators, we may find that loans become harder to get and more expensive, since there are fewer providers and they may not have the resources that exist now.

    Let's remember that a loan is someone else's money -- it is not the property of the receiver, it it stil la debt. We if a company goes out of business, they are still owed the money. Your perception of their need is irrelevant. If a company or bank owed you money and you died, your heirs may want that money.

    Finally, foreign institutions are allowed to purchase loans and service them because this discrimination is not legal in this country and freedom reigns. Why should we deny a company the opportunity to enter a market simply because it has different skin color than us or speaks a different language? After all, their dollars are worth the same as ours.

  9. #27

    Default Re: Looks like housing market is about to get big help from the government

    Quote Originally Posted by LkwdSteve View Post
    "Consumer groups that represent the innumerate homeowners on the verge of a loan reset are irrelevant."

    What exactly is irrelevant? Is it OK to have a freeze on foreclosures?
    I'm just saying that consumer advocacy groups are going to advocate for their constituents. They don't necessarily have the best interest of the economy in mind, the only have the best interests of their constituents in mind. They are a biased group.

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