If there is anyone who deserves the quote of the year, it is Christopher Dodd when he slammed the financial industry for opposing consumer protection plan by stating, "What planet are you living on?". Although, I do believe this comment by Christopher Dodd was like calling the kettle black, because he is partly to blame for this financial crisis as well, in my opinion.
Back to my point of today's blog entry. I wanted to say, "What planet are you living on", when I read this article on CNBC today, http://www.cnbc.com/id/31679561. it stated the following:
Though June's job loss was the smallest since October 2008, the surprisingly large number of cuts deals a setback to those expecting the economy to recover soon.
"The data surprises me a little bit in that the consensus out there seems to be that business is improving and that the economy has hit bottom," said Mark Bonhard, investment advisor at Dawson Wealth Management in Cleveland, Ohio.
"This definitely is not good news."
I am not an expert on the economy, however, I have watched this financial crisis from the time it emerged its ugly head, back in March 2007, and nearly destroyed the financial sector of our economy in September 2008. This was less than 12 months ago, so as to how any Economist thought a recovery would start this soon absolutely baffles me. The financial world came to its knees last year, nearly destroying everything in its path, and these "so called" experts wanted to believe a recovery would start less than 12 months later, June 2009. Not even Chairman Bernanke's theory coincides with this thought. His theory would have given the start of a recovery at least 12 months after the peak of the banking crisis, which is towards the end of October/November 2009.
Athough, this crisis might not be at the bottom, it is my opinion that today's unemployment report shows a small glimmer of hope that the bottom may be near. If July can show somewhat of a slowdown in unemployment claims, then we might have reason to feel hopeful again as citizens of this country. Something we so deserve and need.
I emailed President Obama today (not that it will get read, but it's worth a try), suggesting that the next stimulus package include $1,000 shopping vouchers for all Americans. Americans without shopping abilities are depressed Americans in my opinion. Shopping is a part of our culture and something we seem to enjoy. The proof is in the pudding. Apple!!!! Shopping vouchers will put money into small and large businesses, which will give this economy the needed boost it so desperately needs. Furthermore, this will allow companies to start hiring again to handle these new shoppers.
All we can do is be positive and hopeful a recovery is coming soon. Thank you for reading my blog.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Wednesday, July 1, 2009
As Christopher Dodd stated once, "What Planet are You Living On?" - Just another day in the mortgage mess
Monday, June 22, 2009
Jack Welch is on the Right Page - Just another day in the mortgage mess
I wish President Obama's "so called" economic team would pay attention to Jack Welch, the former CEO of General Electric, because, in my opinion, Jack Welch gets it.
Today, on CNBC, Mr. Welch stated this about Chairman Bernanke, which is what I have been stating for months now. Mr. Welch stated on CNBC today, "I think he saved the system, I think he's a national hero," Welch said. "I think Bernanke seems to be a guy operating on a clear intellectual framework. This guy's done a hell of a good job."
Mr. Welch even made the comment about how this government should regulate behavior. I agree with this. I have my degree in Behavioral Science and what Mr. Welch stated here is correct, in my opinion. President Obama should not politicize the Federal Reserve nor should this government focus on compensation. Instead, this government should focus on a "so called" Fine Program. If someone acts irresponsibly, the employee should be fined. For example, when I worked for an FDIC insured bank, the Loan Officer's were fined by the OTS if they failed to have complete files. There was one Loan Officer, who was their top producer at the time, who had been fined $1,200 for missing items in his file. The bank deducted the fines from the Loan Officer's next pay check. This is what you call "regulating behavior". This is the solution to not having a future financial crisis.
Regulating behavior is the answer. Self-regulation without any form of consequences such as monetary fines, was the cause of this financial mess.
I hope this government wakes up!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Today, on CNBC, Mr. Welch stated this about Chairman Bernanke, which is what I have been stating for months now. Mr. Welch stated on CNBC today, "I think he saved the system, I think he's a national hero," Welch said. "I think Bernanke seems to be a guy operating on a clear intellectual framework. This guy's done a hell of a good job."
Mr. Welch even made the comment about how this government should regulate behavior. I agree with this. I have my degree in Behavioral Science and what Mr. Welch stated here is correct, in my opinion. President Obama should not politicize the Federal Reserve nor should this government focus on compensation. Instead, this government should focus on a "so called" Fine Program. If someone acts irresponsibly, the employee should be fined. For example, when I worked for an FDIC insured bank, the Loan Officer's were fined by the OTS if they failed to have complete files. There was one Loan Officer, who was their top producer at the time, who had been fined $1,200 for missing items in his file. The bank deducted the fines from the Loan Officer's next pay check. This is what you call "regulating behavior". This is the solution to not having a future financial crisis.
Regulating behavior is the answer. Self-regulation without any form of consequences such as monetary fines, was the cause of this financial mess.
I hope this government wakes up!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Thursday, June 18, 2009
Hypocrisy - Just another day in the mortgage mess
Today, I am feeling extremely frustrated. Once again, I received an email from David Plouffe regarding an email that President Obama sent to many Americans earlier this week, asking for donations and support for real Health Care Reform.
What part of this seems fair and logical to those of us who have lost thousands to this financial crisis; lost homes; lost jobs; lost their savings/retirement? It seems insulting for a President to ask for donations, from Americans, for health care reform when unemployment reform has yet to begin; therefore, leaving millions of Americans unemployed?
Today, David Plouffe sent an email stating, "We've seen a tremendous response to President Obama's email this week and, as of today, an important milestone is within reach -- 100,000 donors to OFA's health care campaign." Then, at the bottom of his email it states the following:
"Will you donate $25 or more today and put us over the top?"
Okay, 100,000 supporters out of millions of Americans does not show me tremendous support. Does it to you? Not only that, 100,000 donors x $25 = $2,500,000. How many jobs will this create in your city? How many homes will this save? Where is the President's "so called" campaign for saving American jobs? Where is the President's "so called" campaign for saving American homes? The Hope Plan is a joke, in my opinion. Where is the President's "so called" campaign for saving the integrity of Americans? Where is the President's "so called" campaign for saving jobs? It is my opinion that when hypocrisy exists in government, honesty does not exist.
I am over this financial crisis/mess.
Stay tuned...I have more to share. Just another day in the mortgage mess!
What part of this seems fair and logical to those of us who have lost thousands to this financial crisis; lost homes; lost jobs; lost their savings/retirement? It seems insulting for a President to ask for donations, from Americans, for health care reform when unemployment reform has yet to begin; therefore, leaving millions of Americans unemployed?
Today, David Plouffe sent an email stating, "We've seen a tremendous response to President Obama's email this week and, as of today, an important milestone is within reach -- 100,000 donors to OFA's health care campaign." Then, at the bottom of his email it states the following:
"Will you donate $25 or more today and put us over the top?"
Okay, 100,000 supporters out of millions of Americans does not show me tremendous support. Does it to you? Not only that, 100,000 donors x $25 = $2,500,000. How many jobs will this create in your city? How many homes will this save? Where is the President's "so called" campaign for saving American jobs? Where is the President's "so called" campaign for saving American homes? The Hope Plan is a joke, in my opinion. Where is the President's "so called" campaign for saving the integrity of Americans? Where is the President's "so called" campaign for saving jobs? It is my opinion that when hypocrisy exists in government, honesty does not exist.
I am over this financial crisis/mess.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Wednesday, June 10, 2009
Wake-Up Call Needed - Just another day in the mortgage mess
I keep hearing on the news, how some Analysts actually believe we are in the eye of the hurricane. I am not sure where these Analysts were these past twenty-four months, but it is apparent they were not in the same storm I was these past two years. The way I think they should be viewing this, is hurricane season began in March 2007 and has continued through today. The first hurricane hit March 2007, no matter what any one wants to believe, this is when this financial crisis began. Congress and the Federal Reserve missed the boat, only because they were following the words of Alan Greenspan and were backward looking rather than forward looking regarding this subprime mess. No matter what, I still think Chairman Bernanke is Michael Jordan. He is a hero in this mess..
However, the first hurricane hit us in March 2007, which has since passed. We will name that hurricane "Subprime". We are now in clean up mode, from this hurricane, with remaining levies that are ready to break (homes facing foreclosure still). The pending foreclosures are the levies, and if this government is not pro-active, these levies could possibly leave us under once again. At the same time, however, there is apparently another storm brewing on the horizon. Storm #2 is approaching, which I will call the commercial market. We will call this storm "Commercial". It is stirring up offshore, and apparently, we do not know if it is a category 1 or a category 5. I just hope this government gives us a little warning this time; so we, the consumer, can protect ourselves. Hurricane #1 was nasty and wrong, in my opinion. It should have never been allowed to have caused this much devastation, in my opinion. No one seemed prepared in our government, for Hurricane "Subprime"; and this was not fair to the responsible homeowner, taxpayer, and/or investor.
In conclusion, Hurricane "Subprime" has passed, in my opinion. However, the levies seem to be of great concern to this government right now; which consists foreclosures. I am not an expert on this, but this is just my analogy because I think some of these Analysts/Economists were asleep these past twenty-four months. The government is in clean up mode from the first hurricane as well as working night and day to prevent the levies "foreclosures" from breaking, and at the same time this government seems alert of hurricane #2 "Commercial" that is apparently brewing off the coast.
The Financial Crisis has thus far consisted of two hurricanes and levies:
Hurricane #1 – “Subprime”
- Consisting of levies made up of foreclosures
- Aid, in cleaning up this mess, consists of the desperately needed stimulus package that Congress passed mid-last year, which should have passed in March 2007. Secondly, the aid also consists of keeping interest rates low, to help fuel housing. These interest rates need to drop again. It would be like taking away the stimulus package right now, from the economy. What would happen? The economy most likely would crash without it. This is just my personal opinion, after living through the second half of 2008.
-
Then, Hurricane #2 – “Commercial”
In conclusion, this government has its hands full. I think anyone who criticizes Chairwoman Bair, Chairman Bernanke, and Treasury Secretary Geithner is selfish. I don't know anyone who could have handled this mess any better, considering our regulators and Congress were all apparently sleeping, while Alan Greenspan was driving. News Flash: The car crashed.
This is just my analogy because to think we are in the eye of the first hurricane seems rather foolish to me. This is just my personal opinion, since I am neither an economic expert nor a monetary policy expert.
Stay tuned...I have more to share. Just another day in the mortgage mess!
However, the first hurricane hit us in March 2007, which has since passed. We will name that hurricane "Subprime". We are now in clean up mode, from this hurricane, with remaining levies that are ready to break (homes facing foreclosure still). The pending foreclosures are the levies, and if this government is not pro-active, these levies could possibly leave us under once again. At the same time, however, there is apparently another storm brewing on the horizon. Storm #2 is approaching, which I will call the commercial market. We will call this storm "Commercial". It is stirring up offshore, and apparently, we do not know if it is a category 1 or a category 5. I just hope this government gives us a little warning this time; so we, the consumer, can protect ourselves. Hurricane #1 was nasty and wrong, in my opinion. It should have never been allowed to have caused this much devastation, in my opinion. No one seemed prepared in our government, for Hurricane "Subprime"; and this was not fair to the responsible homeowner, taxpayer, and/or investor.
In conclusion, Hurricane "Subprime" has passed, in my opinion. However, the levies seem to be of great concern to this government right now; which consists foreclosures. I am not an expert on this, but this is just my analogy because I think some of these Analysts/Economists were asleep these past twenty-four months. The government is in clean up mode from the first hurricane as well as working night and day to prevent the levies "foreclosures" from breaking, and at the same time this government seems alert of hurricane #2 "Commercial" that is apparently brewing off the coast.
The Financial Crisis has thus far consisted of two hurricanes and levies:
Hurricane #1 – “Subprime”
- Consisting of levies made up of foreclosures
- Aid, in cleaning up this mess, consists of the desperately needed stimulus package that Congress passed mid-last year, which should have passed in March 2007. Secondly, the aid also consists of keeping interest rates low, to help fuel housing. These interest rates need to drop again. It would be like taking away the stimulus package right now, from the economy. What would happen? The economy most likely would crash without it. This is just my personal opinion, after living through the second half of 2008.
-
Then, Hurricane #2 – “Commercial”
In conclusion, this government has its hands full. I think anyone who criticizes Chairwoman Bair, Chairman Bernanke, and Treasury Secretary Geithner is selfish. I don't know anyone who could have handled this mess any better, considering our regulators and Congress were all apparently sleeping, while Alan Greenspan was driving. News Flash: The car crashed.
This is just my analogy because to think we are in the eye of the first hurricane seems rather foolish to me. This is just my personal opinion, since I am neither an economic expert nor a monetary policy expert.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Wednesday, May 27, 2009
The Three Musketeers! - Just another day in the mortgage mess
Today's market is apparently responding to Professor Roubini's comments today, about how the US recession is not over. If people would research his past predictions, they would see he called this market wrong and would not respond to his words, today. Here's why: Back in the first week of August 2008, he did an interview with Barron's Magazine with his prediction. As you will see, his two predictions were wrong. Predicting this mess was easy, people just got blinded by greed and missed all the red flags, so it did not take a Rocket Scientist to have predicted this financial crisis. Predicting when it would end seemed to be a trick for everyone, except Chairman Bernanke.
On my blog, August 5, 2009: Professor Nouriel Roubini stated, "We are in the second inning of a severe protracted recession, which started the first quarter of this year and is going to last at least 18 months, through the middle of next year." He even goes as far as stating, "The NBER (National Bureau of Economic Research) puts a lot of emphasis on things like employment, and employment has already fallen for seven months in a row. It also emphasizes income and retail and wholesale sales. Many of these things are declining. Maybe the recession started in January."
In addition, this article states that Professor Roubini believes 8% (700 FDIC insured banks) of the 8500 US banks are in trouble. He is estimating roughly 700 banks will go bust and another 700 will join them. This article states the FDIC is watching only nine institutions. However, a couple of weeks ago, I heard Ben Beranke state that 95 banks were on the FDIC watch list, so I am not sure where Professor Roubini came up with only 9 banks. The FDIC has already shut down 9 banks this year.
As of today, only 36 banks have failed year to date. We are not even near the 700 that Professor Roubini predicted. The recovery he predicted in the middle of this year did not happen, so he apparently changed his stance today and said the US recession is not at the end leading to a sell off in the stock market today. How illogical does this seem? Chairman Bernanke has been predicting a recovery in the 2nd half of this year.
I am so fed up with "so called" Economists. So many called this financial mess wrong and those who did call it, cannot seem to call the recovery accurately and, yet, their words move markets; which to me is not fair. Furthermore this leads me to only believe they are all guessing. The only person I will listen to is Chairman Bernanke. To have a sell off today seemed illogical but I am not an expert on this stuff. I am just a frustrated person on Main Street.
In addition to this, I think Sheila Bair seems dead on as well. She is a power player. She stated today, what I stated a couple of weeks ago. "The government is in a clean-up mode right now." Brilliant! I wished President Obama would have Chairman Bernanke, Sheila Bair, and Tim Geithner lead us out of this mess as the Leaders. Who needs Economists when we have the "so called" Three Musketeers right in front of us. Take their first names, Tim-Ben-Sheila and you have the acronym "TBS". TBS = the Totality of Sound Banking. TBS = The Banking System. Just thought I would have some fun with the acronym.
Stay tuned...I have more to share. Just another day in the mortgage mess!
On my blog, August 5, 2009: Professor Nouriel Roubini stated, "We are in the second inning of a severe protracted recession, which started the first quarter of this year and is going to last at least 18 months, through the middle of next year." He even goes as far as stating, "The NBER (National Bureau of Economic Research) puts a lot of emphasis on things like employment, and employment has already fallen for seven months in a row. It also emphasizes income and retail and wholesale sales. Many of these things are declining. Maybe the recession started in January."
In addition, this article states that Professor Roubini believes 8% (700 FDIC insured banks) of the 8500 US banks are in trouble. He is estimating roughly 700 banks will go bust and another 700 will join them. This article states the FDIC is watching only nine institutions. However, a couple of weeks ago, I heard Ben Beranke state that 95 banks were on the FDIC watch list, so I am not sure where Professor Roubini came up with only 9 banks. The FDIC has already shut down 9 banks this year.
As of today, only 36 banks have failed year to date. We are not even near the 700 that Professor Roubini predicted. The recovery he predicted in the middle of this year did not happen, so he apparently changed his stance today and said the US recession is not at the end leading to a sell off in the stock market today. How illogical does this seem? Chairman Bernanke has been predicting a recovery in the 2nd half of this year.
I am so fed up with "so called" Economists. So many called this financial mess wrong and those who did call it, cannot seem to call the recovery accurately and, yet, their words move markets; which to me is not fair. Furthermore this leads me to only believe they are all guessing. The only person I will listen to is Chairman Bernanke. To have a sell off today seemed illogical but I am not an expert on this stuff. I am just a frustrated person on Main Street.
In addition to this, I think Sheila Bair seems dead on as well. She is a power player. She stated today, what I stated a couple of weeks ago. "The government is in a clean-up mode right now." Brilliant! I wished President Obama would have Chairman Bernanke, Sheila Bair, and Tim Geithner lead us out of this mess as the Leaders. Who needs Economists when we have the "so called" Three Musketeers right in front of us. Take their first names, Tim-Ben-Sheila and you have the acronym "TBS". TBS = the Totality of Sound Banking. TBS = The Banking System. Just thought I would have some fun with the acronym.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Friday, May 22, 2009
Chairman Bernanke's Speech to Boston College Graduating Law Students - Amazing! Just another day in the mortgage mess
If you are feeling pessimistic or hopeless about the United States economy or the future of this country, read Chairman Bernanke's speech to Boston College graduating Law students. It is the most inspiring and hope filled speech.
Your compass right now, in my opinion, is Chairman Bernanke. What he states in his speech is so uplifting and what we, consumers/citizens, need to hear right now. We need hope! Please read and enjoy!
http://www.federalreserve.gov/newsevents/speech/bernanke20090522a.htm
Stay tuned...I have more to share. Just another day in the mortgage mess!
Your compass right now, in my opinion, is Chairman Bernanke. What he states in his speech is so uplifting and what we, consumers/citizens, need to hear right now. We need hope! Please read and enjoy!
http://www.federalreserve.gov/newsevents/speech/bernanke20090522a.htm
Stay tuned...I have more to share. Just another day in the mortgage mess!
Thursday, May 21, 2009
President Obama Signs Fraud Bill - Just another day in the mortgage mess
President Obama signed the Financial Fraud Bill. Finally! However, I wished they had done this five years ago but, as always, this government is backward-looking instead of forward-looking. These past two years, Congress let fear and emotions dictate their actions; and this was not fair to the American people in my opinion. Their regulations are always backward-looking. They are over regulating right now, which is going to hinder growth from occuring in this country much faster. We need growth and confidence more than anything right now. Backward-thinking/looking people live in the past, not the future. As President Obama stated today, when speaking on terroism, we need to look to the future. This financial crisis was a form of terrorism in my opinion. It ruined lives! This government needs to look to the future and stop losing sight of how this mess happened by bickering over it. America is A+ in my opinion and should not risk losing its AAA rating worldwide. Americans are strong, innovative, and will never be defeated no matter how tough the circumstances might be in life. This is just my opinion. I have to be optimistic that this will work out and that my business along with so many will thrive in months to come. I want Chairman Bernanke's theory proved true. I am a fan of his, and I truly believe he is the hero in the pack. I am not an expert, this is just my opinion.
http://www.whitehouse.gov/blog/Protecting-Homeowners-Protecting-the-Economy/
Stay tuned...I have more to share. Just another day in the mortgage mess!
http://www.whitehouse.gov/blog/Protecting-Homeowners-Protecting-the-Economy/
Stay tuned...I have more to share. Just another day in the mortgage mess!
Tuesday, May 19, 2009
Washington Post - "Administration Weighs Financial Regulator" - Just another day in the mortgage mess
According to the Washington Post, the Administration is looking at a Financial Regulator. http://www.washingtonpost.com/wp-dyn/content/article/2009/05/19/AR2009051903061.html?hpid=topnews
I hope this Administration considers my idea for a super regulator, which was to take individuals from Congress, the US treasury Dept, FDIC, the Federal Reserve, and individuals from the SEC to form a Super Financial Regulator. Should President Obama consider this, then there will not be a turf war amongst all these regulators because all of them will be involved with a super regulator, resulting in a collective approach to the overall financial industry; therefore, protecting all institutions, investors, and consumers from ever going through this mess ever again. One can hope! Moreover, in doing this, the acronym for this super regulator will be CUFFS, and how appropriate this seems for a financial super regulator. If these regulators do their jobs, then Congress should be able to back off this industry because I can tell you first hand it is getting suffocated.
This industry should not get rid of good brokers who earned their livings by being honest and, yet, Congress and the Attorney General from New York seemed to want to scapegoat us all. How is this considered "free markets", it's not. Just because there were unethical people who were able to get away with swindles while our regulators were asleep, is not fair to those of us who tried our best to be ethical and fair to our clients. This is not fair to consumers either. If brokers do not exist, then competition does not exist, which is not in the best interest of borrowers in my opinion. If Nordstroms existed without a Nordstroms Rack, then not all consumers would be able to shop at Nordstroms. The same applies to my industry. Brokers are like a Nordstroms Rack where borrowers were able to get less expensive loans than the standard bank. Please do not take this avenue away from homeowners it is a great resource for borrowers.
Please do not let brokers become extinct. We generate a lot of business for banks. Banks just need to be more choosey, on who they work with, by putting into place stringent criteria. What if the criteria put in place required Loan Officers, who worked for brokers & mortgage bankers, to have at least 10 years of banking/mortgage experience, formal training, and a college degree? Could the banks issue an ethics exam that brokers had to take prior to their approval? Just some suggestions.
Stay tuned...I have more to share. Just another day in the mortgage mess!
I hope this Administration considers my idea for a super regulator, which was to take individuals from Congress, the US treasury Dept, FDIC, the Federal Reserve, and individuals from the SEC to form a Super Financial Regulator. Should President Obama consider this, then there will not be a turf war amongst all these regulators because all of them will be involved with a super regulator, resulting in a collective approach to the overall financial industry; therefore, protecting all institutions, investors, and consumers from ever going through this mess ever again. One can hope! Moreover, in doing this, the acronym for this super regulator will be CUFFS, and how appropriate this seems for a financial super regulator. If these regulators do their jobs, then Congress should be able to back off this industry because I can tell you first hand it is getting suffocated.
This industry should not get rid of good brokers who earned their livings by being honest and, yet, Congress and the Attorney General from New York seemed to want to scapegoat us all. How is this considered "free markets", it's not. Just because there were unethical people who were able to get away with swindles while our regulators were asleep, is not fair to those of us who tried our best to be ethical and fair to our clients. This is not fair to consumers either. If brokers do not exist, then competition does not exist, which is not in the best interest of borrowers in my opinion. If Nordstroms existed without a Nordstroms Rack, then not all consumers would be able to shop at Nordstroms. The same applies to my industry. Brokers are like a Nordstroms Rack where borrowers were able to get less expensive loans than the standard bank. Please do not take this avenue away from homeowners it is a great resource for borrowers.
Please do not let brokers become extinct. We generate a lot of business for banks. Banks just need to be more choosey, on who they work with, by putting into place stringent criteria. What if the criteria put in place required Loan Officers, who worked for brokers & mortgage bankers, to have at least 10 years of banking/mortgage experience, formal training, and a college degree? Could the banks issue an ethics exam that brokers had to take prior to their approval? Just some suggestions.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Monday, May 11, 2009
One Thing President Bush did Right in 2006, was Appointing Ben Bernanke as the Federal Reserve Chairman - Just another day in the mortgage mess
Chairman Bernanke is our Michael Jordan. He is just brilliant! Chairman Bernanke has game when it comes to Economics and Monetary Policy. It is almost as if he was destined to be in this role, especially after writing his book "Essays of the Great Depression". I truly believe our biggest ally is Chairman Bernanke. I truly believe he is going to do what is best for this country, not for this government. I hope Congress listens to Chairman Bernanke and allows him to guide us out of this mess. He has nailed every issue regarding this industry. Had Alan Greenspan and Congress done this years ago, we most likely would not be in this financial mess.
I truly believe Congress is over regulating and starting from the bottom rather than the top. If the issues are resolved at the top, it will spill over into the bottom. If proper risk management is in place, then it should have a spill over effect on all entities outside of federally insured banks. Seems like common sense. If I submit a loan to a federally insured bank, as a mortgage broker, I still have to adhere to the regulations by default. Mortgage banks did not have to do this for all these years. Now, it appears this will change with what Chairman Bernanke stated below, thank goodness...
http://www.federalreserve.gov/newsevents/speech/bernanke20090507a.htm
Stay tuned...I have more to share. Just another day in the mortgage mess!
I truly believe Congress is over regulating and starting from the bottom rather than the top. If the issues are resolved at the top, it will spill over into the bottom. If proper risk management is in place, then it should have a spill over effect on all entities outside of federally insured banks. Seems like common sense. If I submit a loan to a federally insured bank, as a mortgage broker, I still have to adhere to the regulations by default. Mortgage banks did not have to do this for all these years. Now, it appears this will change with what Chairman Bernanke stated below, thank goodness...
http://www.federalreserve.gov/newsevents/speech/bernanke20090507a.htm
Stay tuned...I have more to share. Just another day in the mortgage mess!
Supervisory Capital Assessment Program - Just another day in the mortgage mess
The Stress Tests Assessment:
http://www.federalreserve.gov/newsevents/press/bcreg/20090507a.htm
Stay tuned...I have more to share. Just another day in the mortgage mess!
http://www.federalreserve.gov/newsevents/press/bcreg/20090507a.htm
Stay tuned...I have more to share. Just another day in the mortgage mess!
Wednesday, May 6, 2009
Jim Cramer on the Banks - Just another day in the mortgage mess
I saw on CNBC's website that Jim Cramer believes the banking problem is solved. I hope he is right.
However, I still have my doubts because there is still the issue with housing and who owns these foreclosed homes, the banks. With unemployment rising, this means the foreclosure rate is going to continue to rise; which means the banks are still not in the clear in my opinion. I want to believe the problem with the banks is resolved but I just can't put the cart before the horse right now. I think people need to be realistic with this recovery. I truly believe the hurricane and the eye of the hurricane has passed but, remember, the hard part is cleaning up the mess after the storm has left. The government and regulators are in clean up mode. I realize the stress tests are supposed to ensure against the banks suffering further losses should a worse recession hit; but as we have learned these past twenty-four months nothing is sound proof.
Give it a little more time. Be pro-active, alert, and smart with your finances. Think about it, many of us have been through hell and back these past twenty-four months, so being quick to believe we are completely out of the woods would be foolish it seems.
I think this is going to be a step by step recovery process. The system broke and hurt many of us. People have to heal from this.
When this financial crisis is over, I truly believe the United States financial system will be #1 in the world! We have to believe. This is what makes America so great.
Always be smart and careful with your financial decisions, be in control of your destiny. I really hope Jim Cramer is right regarding the banking problem.
Stay tuned...I have more to share. Just another day in the mortgage mess!
However, I still have my doubts because there is still the issue with housing and who owns these foreclosed homes, the banks. With unemployment rising, this means the foreclosure rate is going to continue to rise; which means the banks are still not in the clear in my opinion. I want to believe the problem with the banks is resolved but I just can't put the cart before the horse right now. I think people need to be realistic with this recovery. I truly believe the hurricane and the eye of the hurricane has passed but, remember, the hard part is cleaning up the mess after the storm has left. The government and regulators are in clean up mode. I realize the stress tests are supposed to ensure against the banks suffering further losses should a worse recession hit; but as we have learned these past twenty-four months nothing is sound proof.
Give it a little more time. Be pro-active, alert, and smart with your finances. Think about it, many of us have been through hell and back these past twenty-four months, so being quick to believe we are completely out of the woods would be foolish it seems.
I think this is going to be a step by step recovery process. The system broke and hurt many of us. People have to heal from this.
When this financial crisis is over, I truly believe the United States financial system will be #1 in the world! We have to believe. This is what makes America so great.
Always be smart and careful with your financial decisions, be in control of your destiny. I really hope Jim Cramer is right regarding the banking problem.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Tuesday, May 5, 2009
Banks Bulldozing Homes - Just another day in the mortgage mess
Brilliant! This was all I could think of when I saw this story on the news, this morning. Now, if President Obama would just give these banks a tax break for bulldozing the homes on their books, this could save us from facing even more financial devastation/foreclosures. Bulldozing homes takes down the supply, which then will build demand. It's basic economics. The higher the supply, the lower the demand. The lower the supply, the higher the demand. Furthermore, if there are not anymore homes, and demand peaks up, then what will happen? New construction will kick in, which means companies like Catepillar, Home Depot, and Loews will begin to feel the affects of this. What a brilliant move!
Guaranty Bank located in Texas - brilliant move in my opinion.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Guaranty Bank located in Texas - brilliant move in my opinion.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Sunday, May 3, 2009
CNN Money - Obama: Reduced Role for Financial Sector - Report - Just another day in the mortgage mess
Today, CNN Money reported that "President says new regulations will freeze 'massive risk taking' by financial sector, reduce the industry's impact on U.S. economy."
http://money.cnn.com/2009/05/03/news/economy/risk_taking_obama.reut/index.htm?postversion=2009050310
This, to me, seems rather overwhelming and/or idealistic because the financial sector is, and will always be, a power player on Wall Street. On the contrary, what should happen, the financial sector should balance equally alongside Bio-pharmaceuticals, Telecom and other sectors therefore creating a strong foundation for the President to build. Furthermore, introducing a well-balanced and powerful investment tool for investors to believe in and, in addition, one that is strong enough to sustain a downturn should a collapse occur, again in the future. This will give investors confidence, in my opinion. Having worked for WorldCom for a short period of time, and going through the dot.com bust, President Obama's views seem rather simplistic but good.
Moreover, after this financial crisis, we should all realize our economy is not bulletproof. As long as human behavior is a part of the equation, risk will always be involved. In addition, with technological advances there is room for error and greed in my opinion. Humans are imperfect, so to think we will never have a crisis of this magnitude again almost seems naieve.
Therefore, our government and regulators must learn to adapt to these technological changes/advances, and always be on alert for risks that come with these changes. They must be forward-thinking in their ways, giving them the edge on our ever-changing environment. They must remain vigilant regarding oversight, especially when it comes to the safety and soundness of banks and/or all major sectors if they deemed to threaten the stability of the financial system and/or our economy ever again.
A "so called" super regulator is a great idea, as long as it is forward-thinking and vigilant with the advances of modern technology, and the greed factor that can come with these advances. We must never lose site of what is key to the stability of our economy, oversight and soundness!
As long as greed is a factor, we are always at risk of a crisis. I hope President Obama's gesture today, is one that will breathe prosperity for our generation and future generations to come. We cannot give up on today, ever!
We have to be confident that our future holds greatness for all of us! We must not let fear dictate our actions today.
My quote of the day: “There are a terrible lot of lies going about the world, and the worst of it is that half of them are true.” Winston Churchill
Stay tuned...I have more to share. Just another day in the mortgage mess!
http://money.cnn.com/2009/05/03/news/economy/risk_taking_obama.reut/index.htm?postversion=2009050310
This, to me, seems rather overwhelming and/or idealistic because the financial sector is, and will always be, a power player on Wall Street. On the contrary, what should happen, the financial sector should balance equally alongside Bio-pharmaceuticals, Telecom and other sectors therefore creating a strong foundation for the President to build. Furthermore, introducing a well-balanced and powerful investment tool for investors to believe in and, in addition, one that is strong enough to sustain a downturn should a collapse occur, again in the future. This will give investors confidence, in my opinion. Having worked for WorldCom for a short period of time, and going through the dot.com bust, President Obama's views seem rather simplistic but good.
Moreover, after this financial crisis, we should all realize our economy is not bulletproof. As long as human behavior is a part of the equation, risk will always be involved. In addition, with technological advances there is room for error and greed in my opinion. Humans are imperfect, so to think we will never have a crisis of this magnitude again almost seems naieve.
Therefore, our government and regulators must learn to adapt to these technological changes/advances, and always be on alert for risks that come with these changes. They must be forward-thinking in their ways, giving them the edge on our ever-changing environment. They must remain vigilant regarding oversight, especially when it comes to the safety and soundness of banks and/or all major sectors if they deemed to threaten the stability of the financial system and/or our economy ever again.
A "so called" super regulator is a great idea, as long as it is forward-thinking and vigilant with the advances of modern technology, and the greed factor that can come with these advances. We must never lose site of what is key to the stability of our economy, oversight and soundness!
As long as greed is a factor, we are always at risk of a crisis. I hope President Obama's gesture today, is one that will breathe prosperity for our generation and future generations to come. We cannot give up on today, ever!
We have to be confident that our future holds greatness for all of us! We must not let fear dictate our actions today.
My quote of the day: “There are a terrible lot of lies going about the world, and the worst of it is that half of them are true.” Winston Churchill
Stay tuned...I have more to share. Just another day in the mortgage mess!
Thursday, April 30, 2009
Office of Attorney General - Just another day in the mortgage mess
CONSUMER ALERT from the Attorney General's website
FORECLOSURE RESCUE SCAMS
If someone who is not your mortgage lender promises to save your home and asks for you to pay money up front,
WATCH OUT. Fraudulent foreclosure consultants target homeowners who are behind on their mortgage payments.
Here's what you can do to avoid becoming a victim:
http://ag.ca.gov/consumers/general/foreclosure_scams.php
Stay tuned...I have more to share. Just another day in the mortgage mess!
FORECLOSURE RESCUE SCAMS
If someone who is not your mortgage lender promises to save your home and asks for you to pay money up front,
WATCH OUT. Fraudulent foreclosure consultants target homeowners who are behind on their mortgage payments.
Here's what you can do to avoid becoming a victim:
http://ag.ca.gov/consumers/general/foreclosure_scams.php
Stay tuned...I have more to share. Just another day in the mortgage mess!
Wednesday, April 29, 2009
US Senate Passes Financial Fraud Bill - Just another day in the mortgage mess
I guess it is better late than never, that Congress passes a bill that should have been passed five years ago. The bill takes direct aim at fraudulent or subprime mortgage loans, an underlying cause of the mortgage crisis in the United States. With this bill, It also gives agents from the FBI, the Secret Service and the Security and Exchange Commission (SEC) extended authority to investigate and prosecute such crimes.
To read the entire article, go to http://www.google.com/hostednews/afp/article/ALeqM5gLaedB9EqeCkhdpzWjavYzWmdWUg
This is the most make sense bill passed thus far by Congress, regarding this financial mess. My hat is off to Senate Democratic Majority Leader Harry Reid.
Stay tuned...I have more to share. Just another day in the mortgage mess!
To read the entire article, go to http://www.google.com/hostednews/afp/article/ALeqM5gLaedB9EqeCkhdpzWjavYzWmdWUg
This is the most make sense bill passed thus far by Congress, regarding this financial mess. My hat is off to Senate Democratic Majority Leader Harry Reid.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Federal Reserve Press Release - Just another day in the mortgage mess
Information received since the Federal Open Market Committee met in March indicates that the economy has continued to contract, though the pace of contraction appears to be somewhat slower. Household spending has shown signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit...
In light of increasing economic slack here and abroad, the Committee expects that inflation will remain subdued. Moreover, the Committee sees some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term...
...The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. As previously announced, to provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year. In addition, the Federal Reserve will buy up to $300 billion of Treasury securities by autumn...
To read the entire press release go to http://www.federalreserve.gov/newsevents/press/monetary/20090429a.htm
I think what this Press Release stated is good for interest rates and consumers looking to refinance or buy a home.
Stay tuned...I have more to share. Just another day in the mortgage mess!
In light of increasing economic slack here and abroad, the Committee expects that inflation will remain subdued. Moreover, the Committee sees some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term...
...The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. As previously announced, to provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year. In addition, the Federal Reserve will buy up to $300 billion of Treasury securities by autumn...
To read the entire press release go to http://www.federalreserve.gov/newsevents/press/monetary/20090429a.htm
I think what this Press Release stated is good for interest rates and consumers looking to refinance or buy a home.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Sunday, April 26, 2009
The Missing Link - Just another day in the mortgage mess
This morning, I was watching the news when I briefly caught a blurb of what the spokesman from the World Health Organization had stated. He said something that made me think about this financial crisis, it made that much sense, except he was obviously referencing the swine outbreak. Anyway, what I heard him ask, "What is the overall take on the situation and where are we?"
Immediately, I thought to myself why didn't the World Bank have a spokesperson speak to the public in March 2007? Furthermore, why didn't the World Bank have a spokesperson speak to the world back then, and state the obvious; which would have been "What is the overall take on the "subprime" crisis, and where are we?" Why is it, the Center for Disease Control has a potential health epidemic and the World Health Organization speaks to the world and, on the contrary, the banks had a subprime epidemic and, yet, the World Bank did not have a spokesman speak to the public. Had the World Bank done this, then maybe it could have calmly let us know what precautions it was taking to control the epidemic. Furthermore, the spokesperson from the World Bank could have educated consumers/citizens on what to do to protect themselves should the subprime crisis spread and, moreover, what we could have expected should a financial crisis take place.
Think about it, a flu epidemic can threaten economic stability. So, why doesn't the World Bank have the same formality in place, when an epidemic is threatening the stability of the financial system worldwide? The Federal Reserve and the US Treasury Department should have never been expected to handle a worldwide crisis by itself. This was an epidemic that could have been contained had there not be such a disconnect between the banks, the Regulators, Congress, and even the World Bank it seems.
Seems like a logical solution for the future. Just an idea.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Immediately, I thought to myself why didn't the World Bank have a spokesperson speak to the public in March 2007? Furthermore, why didn't the World Bank have a spokesperson speak to the world back then, and state the obvious; which would have been "What is the overall take on the "subprime" crisis, and where are we?" Why is it, the Center for Disease Control has a potential health epidemic and the World Health Organization speaks to the world and, on the contrary, the banks had a subprime epidemic and, yet, the World Bank did not have a spokesman speak to the public. Had the World Bank done this, then maybe it could have calmly let us know what precautions it was taking to control the epidemic. Furthermore, the spokesperson from the World Bank could have educated consumers/citizens on what to do to protect themselves should the subprime crisis spread and, moreover, what we could have expected should a financial crisis take place.
Think about it, a flu epidemic can threaten economic stability. So, why doesn't the World Bank have the same formality in place, when an epidemic is threatening the stability of the financial system worldwide? The Federal Reserve and the US Treasury Department should have never been expected to handle a worldwide crisis by itself. This was an epidemic that could have been contained had there not be such a disconnect between the banks, the Regulators, Congress, and even the World Bank it seems.
Seems like a logical solution for the future. Just an idea.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Tuesday, April 21, 2009
Appraisal Management Companies Could Cause Further Delays - Just another day in the mortgage mess
Today, I received a notice from one of my lenders regarding their "Home Valuation Broker Conduct Training". You, the borrower, will suffer profuse delays because of banks requiring you to use appraisal management companies. My Appraiser, who is very ethical, turns her appraisals around in 24 hours. These new appraisal management companies are 7-10 business days. They want their fees collected upfront. Moreover, if there is a dispute on their appraisal or value, it will be an additional 1-2 business days. If you cannot submit a file without an appraisal, then your file will now wait 10-12 business days before being underwritten by the banks, unless the banks allow the file to be submitted without the appraisal, since they are 100% controlling the process.
In addition to this, President Obama's HARP program is pointless. I have checked a number of homeowner's to see if their loan is Fannie or Freddie. Out of all the addresses I checked, one qualified. President Obama's plan is out of touch with the front lines of this business because so many loans were closed outside of Fannie and Freddie these past few years; the homeowners are not qualifying for HARP. The HOPE line is voice mail for many. The Customer Service Rep takes the initial call which is not much, before he/she transfers you to a voice mail customer or not.
Moreover, I have the upmost respect for Treasury Secretary Geithner. I listened to him on Capitol Hill today, and I could feel his frustration. The Chairwoman of this committee seemed absolutely clueless. She wanted to know why banks were being treated so differently from the auto industry. I wanted to reach through my television and scream "are you kidding me?". The banks are the "rock" of this country, nothing functions, if they are not. In other words the financial sector of this country supports everything in this economy. The "so called" house that President Obama wants to build, it can only be built strong if it has a solid foundation underneath it. In other words, without a strong financial system, there is not a rock for a house to be built on top of. The financial industry is what gets credit moving, employment back, healthcare, and so forth. We definitely need healthcare straightened out, but our leaders are either really ignorant or just flat out unaware of the intricacies of the financial industry and the front lines. If the financial industry had not crashed and burned, the auto industry would not have been effected this severely. It is a mess.
Watching that committee today was hard, because it made feel like there was still no hope for any of us on Main Street. It is frustrating watching a law maker ask stupid questions. I should be able to watch a hearing and feel confident that the members of the committee are fully aware of the "what, when, why, and where" before asking our Treasury Secretary questions.
Seems so hopeless, but I am not losing hope. I am praying these bank CEOs will win for the benefit of all of us, the taxpayers and their customers.
Stay tuned...I have more to share. Just another day in the mortgage mess!
In addition to this, President Obama's HARP program is pointless. I have checked a number of homeowner's to see if their loan is Fannie or Freddie. Out of all the addresses I checked, one qualified. President Obama's plan is out of touch with the front lines of this business because so many loans were closed outside of Fannie and Freddie these past few years; the homeowners are not qualifying for HARP. The HOPE line is voice mail for many. The Customer Service Rep takes the initial call which is not much, before he/she transfers you to a voice mail customer or not.
Moreover, I have the upmost respect for Treasury Secretary Geithner. I listened to him on Capitol Hill today, and I could feel his frustration. The Chairwoman of this committee seemed absolutely clueless. She wanted to know why banks were being treated so differently from the auto industry. I wanted to reach through my television and scream "are you kidding me?". The banks are the "rock" of this country, nothing functions, if they are not. In other words the financial sector of this country supports everything in this economy. The "so called" house that President Obama wants to build, it can only be built strong if it has a solid foundation underneath it. In other words, without a strong financial system, there is not a rock for a house to be built on top of. The financial industry is what gets credit moving, employment back, healthcare, and so forth. We definitely need healthcare straightened out, but our leaders are either really ignorant or just flat out unaware of the intricacies of the financial industry and the front lines. If the financial industry had not crashed and burned, the auto industry would not have been effected this severely. It is a mess.
Watching that committee today was hard, because it made feel like there was still no hope for any of us on Main Street. It is frustrating watching a law maker ask stupid questions. I should be able to watch a hearing and feel confident that the members of the committee are fully aware of the "what, when, why, and where" before asking our Treasury Secretary questions.
Seems so hopeless, but I am not losing hope. I am praying these bank CEOs will win for the benefit of all of us, the taxpayers and their customers.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Sunday, April 19, 2009
Interesting Fact - CBS Evening News - Just another day in the mortgage mess
Tonight I was watching the CBS evening news, and one of the stories talked about two women who ran a bank in Iceland. The only bank to have not failed in Iceland's financial collapse was ran by two women. In addition, the reporter mentioned a France study that stated, the higher the ratio of women in the upper ranks, the better the company does.
What is interesting here, back on March 9th, I had asked, "how many of these failed banks were run by women in the United States?" The answer is none! Women are amazing people and should be given the opportunity to dominate in the financial marketplace, especially after this financial mess. As the two women of the Iceland bank stated, "If we don't understand, we're not buying it." Why couldn't this have been the motto for all financial institutions these past ten years?
In addition to this, I saw on Fox News that President Obama is going to use his popularity to help Chris Dodd. President Obama apparently stated Chris Dodd has run into a rough patch. This seems so hypocritical to me. The GM President seemed to have run into a rough patch, and look what President Obama did to him. Why is President Obama helping Chris Dodd? It is not making sense. I guess transparency does not apply here. I was just thinking about this today.
I really hope this crisis ends soon. It is really stressful. All we can do is remain hopeful and confident. I am reading a book about Jaime Dimon right now. Thus far, I like it a lot. When I finish, I will let you know what I think.
Stay tuned...I have more to share. Just another day in the mortgage mess!
What is interesting here, back on March 9th, I had asked, "how many of these failed banks were run by women in the United States?" The answer is none! Women are amazing people and should be given the opportunity to dominate in the financial marketplace, especially after this financial mess. As the two women of the Iceland bank stated, "If we don't understand, we're not buying it." Why couldn't this have been the motto for all financial institutions these past ten years?
In addition to this, I saw on Fox News that President Obama is going to use his popularity to help Chris Dodd. President Obama apparently stated Chris Dodd has run into a rough patch. This seems so hypocritical to me. The GM President seemed to have run into a rough patch, and look what President Obama did to him. Why is President Obama helping Chris Dodd? It is not making sense. I guess transparency does not apply here. I was just thinking about this today.
I really hope this crisis ends soon. It is really stressful. All we can do is remain hopeful and confident. I am reading a book about Jaime Dimon right now. Thus far, I like it a lot. When I finish, I will let you know what I think.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Wednesday, April 15, 2009
Federal Reserve "Beige Book" - Just another day in the mortgage mess
Some good reading for those who would like to know what is going on around the country. Pretty much everything declined the first quarter nationwide, but there are slight signs the housing market might be stabilizing.
However, new home sales and construction activity fell further.
Outlooks for the housing sector were generally more optimistic than in earlier surveys, with respondents hopeful that increased buyer interest would lead to better sales.
From a lender standpoint, this is so true! Additionally, residential refinancing activity remained brisk, although the loan process was taking longer due to more stringent appraisals and underwriting standards.
http://www.federalreserve.gov/fomc/beigebook/2009/20090415/fullreport20090415.pdf
Stay tuned...I have more to share. Just another day in the mortgage mess!
However, new home sales and construction activity fell further.
Outlooks for the housing sector were generally more optimistic than in earlier surveys, with respondents hopeful that increased buyer interest would lead to better sales.
From a lender standpoint, this is so true! Additionally, residential refinancing activity remained brisk, although the loan process was taking longer due to more stringent appraisals and underwriting standards.
http://www.federalreserve.gov/fomc/beigebook/2009/20090415/fullreport20090415.pdf
Stay tuned...I have more to share. Just another day in the mortgage mess!
Sunday, April 12, 2009
Bingo! - Just another day in the mortgage mess
I just read a great article in Barron's Magazine this evening. The article is titled, "The Lessons of the Savings-and-Loan Crisis" by Jack Willoughby. Mr. Willoughby interviewed William Black, Associate Professor, Economics Law University of Missouri, Kansas City. Towards the end of the article, Professor Black states, "Why had no one heard of the subprime crisis of 1991? Because America's regulators also faced down the crisis early. The same thing happened with bad credits being securitized in the secondary market. Remember the low-doc or no doc mortgage done by Citibank? Well, the problem didn't spread-because regulators intervened."
Bingo, someone seems to have gotten it right! Finally!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Bingo, someone seems to have gotten it right! Finally!
Stay tuned...I have more to share. Just another day in the mortgage mess!
When are People going to Wake-Up? - Just another day in the mortgage mess
Every time I turn on the news or go to an online article, all anyone seems to be talking about is how Congress is going to over-regulate the banks and Treasury Secretary Geithner is going to create a "so called" super regulator. It is my opinion that so many are looking at this wrong. Having worked for an FDIC insured bank, mortgage broker, a mortgage bank, and in addition, a few months for a major telecom company before it too shut down because of fraud, it taught me a lot. After losing thousands of dollars after the FBI shut down the mortgage bank, I had been working for in 2004; and in addition, losing thousands when an escrow company shut down for alleged fraud in 2003. Then, finally, losing thousands from an FDIC bank shutting down last year it gave me an insight to this industry that I would have never had without these unfortunate experiences. I am not mad or upset anymore, just frustrated because no one seems to get it!
Here is a clear picture to educate those who do not seem to have a clue:
FDIC insured banks, brokerage firms, credit unions, community banks, mortgage brokers, and mortgage banks and so on, all originate and fund home loans and commercial loans. There is a variety of regulators overseeing the various firms in the industry. For example, the FDIC and Federal Reserve oversee the safety and soundness of federally insured banks. Credit unions have separate overseeing regulatory agency. Mortgage brokers have separate overseeing and, by default, fall under FDIC insured banks regulations should they choose to submit a loan through a major bank such as Citibank for example.
The purpose of a "so called" super regulator should not be for the major banks or brokerage firms. This government needs to create a "so called" super regulator that oversees the housing market. Let the banks do what they do well, banking, lending, and investing. This regulator just needs to do its job for a change, which was supposed to have babysat this industry. Congress and regulators failed us all in my opinion. The banks did not fail us. Think about it. Human beings run banks, brokerage firms, hedge funds, and even AIG; which means all of them are all emotionally based individuals and humans all make mistakes. We are all human. Therefore, it is my opinion, Congress and Regulators failed us all. It was their job to protect the safety and soundness of the banks as well as consumer protection. The babysitters fell asleep this past decade and are not taking responsibility for their actions but, instead, are blaming the CEOs and Executives. I do not blame the banks or AIG for this mess. If someone’s job was to babysit three children and he/she lets the kids run amok only to have their parents come home to a messy house, broken furniture, and three distraught kids; whose fault is this? The babysitter is at fault here. It is my opinion the US Senate Banking Committee and Finance Committees are at fault here and, moreover, some took contributions from these institutions. That would be as if the babysitter gave money to the parents to allow him/her to do whatever he/she pleases while overseeing the parent's children. It is illogical! President Obama needs to practice his own words, and do a “fundamental restructure” of all committees that oversee the banking/finance industry; therefore, creating a new plan and a new design for all financial committees of the future.
Imagine this for the babysitter image:
The President is the "so called" parent
Congress and Regulators are the "so called" babysitters with the rules & laws
CEOs are the "so called" children
Investors/Employees/Shareholders/Families were the "so called" broken furniture, left in shattered pieces.
Congress and the Regulators "babysitters" let the children run amok. Investors/employees/shareholders/families "furniture and house" are still in shattered pieces; they have not been made whole again. When will our Leaders wake-up?
In conclusion, the financial industry is huge, therefore a specifically driven regulator is needed for the housing market and subprime lending. The "so called" super regulator is to protect everyone from the bottom feeders at the bottom of the tank. Had the subprime industry had better oversight, would we be in this mess today? Think about it. The financial firms and institutions that decided to sell subprime loans at 100% financing/stated income had no regard for the safety and soundness of their banks in my opinion. At the same time, neither did Congress and the Regulators overseeing these financial institutions, which was shameful. The only people to blame here is Congress and the Regulators. They were supposed to keep things in check and insure human behavior did not run amok to avoid any systemic failure to the financial backbone of our country. The CEOs and Executives are not to blame in my opinion. Instead, it is my opinion they are the scapegoats for the irresponsible actions of our government. I truly hope Chairman Bernanke and Treasury Secretary Geithner pull us out of this mess. It is my hope President Obama hires new babysitters because without this, Chairman Bernanke and Treasury Secretary Geithner will most likely face many hurdles when fixing this financial mess, if they have not already. We have already witnessed the hurdles. Constituents might have voted in Congressman and Congresswomen, but they did not vote for them to become Chairman? President Obama or whomever needs to appoint new Chairmen “babysitters”, and do a fundamental restructure of these committees, therefore creating one unified super regulator.
Therefore, it is my opinion President Obama should take individuals from Congress, the US Treasury Department, and the Federal Reserve, the FDIC to create a “collective” committee to oversee the entire housing industry objectively and as a whole. These individuals will be responsible for overseeing the housing market, which includes real estate agents, title companies, escrow companies, mortgage banks, insurance companies selling derivatives/CDO’s/MBS, hedge fund managers involved in this industry, and all subprime lending practices of all institutions. As you noticed, I did not include FDIC insured or regulated banks or brokerage firms. The key word “regulated”. CUFF could be the "so called" super regulator overseeing the housing market because had the housing market not gotten this far out of control, then AIG would have never had a product to sell. Think about it. The regulations already exist, but for some odd reason these were either ignored for greed or just completely disregarded. Who knows, but we are all in this mess together.
This is not about more regulations! This is about common sense and being aware. More regulations will strangle this country from being as great as it can be. It is wrong to do. This government is on a witch-hunt and if they get what they want as far as regulations, we will all suffer even more in my opinion. These CEOs and Executives are brilliant human beings. They have a lot to offer this country even with the past mistakes made. No matter how inexcusable it is, this country needs a strong financial backbone. We cannot let our government lynch these CEOs. Instead, the President needs to do a fundamental restructure of the US Senate Banking Committee and House Finance Committees because it is apparent their ways are antiquated and out of date.
Please do not turn your back on these financial CEOs and Executives. I truly believe they will make this country strong again and they will fight for our best interest (consumers). We have to unite with them. Without credit flowing, the US economy will not be strong. I sent the CEOs of these major financial institutions a 40-page pamphlet that I hope they will read. Together we will be strong! Do not give up on the US economy. This country is the greatest country in the world!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Here is a clear picture to educate those who do not seem to have a clue:
FDIC insured banks, brokerage firms, credit unions, community banks, mortgage brokers, and mortgage banks and so on, all originate and fund home loans and commercial loans. There is a variety of regulators overseeing the various firms in the industry. For example, the FDIC and Federal Reserve oversee the safety and soundness of federally insured banks. Credit unions have separate overseeing regulatory agency. Mortgage brokers have separate overseeing and, by default, fall under FDIC insured banks regulations should they choose to submit a loan through a major bank such as Citibank for example.
The purpose of a "so called" super regulator should not be for the major banks or brokerage firms. This government needs to create a "so called" super regulator that oversees the housing market. Let the banks do what they do well, banking, lending, and investing. This regulator just needs to do its job for a change, which was supposed to have babysat this industry. Congress and regulators failed us all in my opinion. The banks did not fail us. Think about it. Human beings run banks, brokerage firms, hedge funds, and even AIG; which means all of them are all emotionally based individuals and humans all make mistakes. We are all human. Therefore, it is my opinion, Congress and Regulators failed us all. It was their job to protect the safety and soundness of the banks as well as consumer protection. The babysitters fell asleep this past decade and are not taking responsibility for their actions but, instead, are blaming the CEOs and Executives. I do not blame the banks or AIG for this mess. If someone’s job was to babysit three children and he/she lets the kids run amok only to have their parents come home to a messy house, broken furniture, and three distraught kids; whose fault is this? The babysitter is at fault here. It is my opinion the US Senate Banking Committee and Finance Committees are at fault here and, moreover, some took contributions from these institutions. That would be as if the babysitter gave money to the parents to allow him/her to do whatever he/she pleases while overseeing the parent's children. It is illogical! President Obama needs to practice his own words, and do a “fundamental restructure” of all committees that oversee the banking/finance industry; therefore, creating a new plan and a new design for all financial committees of the future.
Imagine this for the babysitter image:
The President is the "so called" parent
Congress and Regulators are the "so called" babysitters with the rules & laws
CEOs are the "so called" children
Investors/Employees/Shareholders/Families were the "so called" broken furniture, left in shattered pieces.
Congress and the Regulators "babysitters" let the children run amok. Investors/employees/shareholders/families "furniture and house" are still in shattered pieces; they have not been made whole again. When will our Leaders wake-up?
In conclusion, the financial industry is huge, therefore a specifically driven regulator is needed for the housing market and subprime lending. The "so called" super regulator is to protect everyone from the bottom feeders at the bottom of the tank. Had the subprime industry had better oversight, would we be in this mess today? Think about it. The financial firms and institutions that decided to sell subprime loans at 100% financing/stated income had no regard for the safety and soundness of their banks in my opinion. At the same time, neither did Congress and the Regulators overseeing these financial institutions, which was shameful. The only people to blame here is Congress and the Regulators. They were supposed to keep things in check and insure human behavior did not run amok to avoid any systemic failure to the financial backbone of our country. The CEOs and Executives are not to blame in my opinion. Instead, it is my opinion they are the scapegoats for the irresponsible actions of our government. I truly hope Chairman Bernanke and Treasury Secretary Geithner pull us out of this mess. It is my hope President Obama hires new babysitters because without this, Chairman Bernanke and Treasury Secretary Geithner will most likely face many hurdles when fixing this financial mess, if they have not already. We have already witnessed the hurdles. Constituents might have voted in Congressman and Congresswomen, but they did not vote for them to become Chairman? President Obama or whomever needs to appoint new Chairmen “babysitters”, and do a fundamental restructure of these committees, therefore creating one unified super regulator.
Therefore, it is my opinion President Obama should take individuals from Congress, the US Treasury Department, and the Federal Reserve, the FDIC to create a “collective” committee to oversee the entire housing industry objectively and as a whole. These individuals will be responsible for overseeing the housing market, which includes real estate agents, title companies, escrow companies, mortgage banks, insurance companies selling derivatives/CDO’s/MBS, hedge fund managers involved in this industry, and all subprime lending practices of all institutions. As you noticed, I did not include FDIC insured or regulated banks or brokerage firms. The key word “regulated”. CUFF could be the "so called" super regulator overseeing the housing market because had the housing market not gotten this far out of control, then AIG would have never had a product to sell. Think about it. The regulations already exist, but for some odd reason these were either ignored for greed or just completely disregarded. Who knows, but we are all in this mess together.
This is not about more regulations! This is about common sense and being aware. More regulations will strangle this country from being as great as it can be. It is wrong to do. This government is on a witch-hunt and if they get what they want as far as regulations, we will all suffer even more in my opinion. These CEOs and Executives are brilliant human beings. They have a lot to offer this country even with the past mistakes made. No matter how inexcusable it is, this country needs a strong financial backbone. We cannot let our government lynch these CEOs. Instead, the President needs to do a fundamental restructure of the US Senate Banking Committee and House Finance Committees because it is apparent their ways are antiquated and out of date.
Please do not turn your back on these financial CEOs and Executives. I truly believe they will make this country strong again and they will fight for our best interest (consumers). We have to unite with them. Without credit flowing, the US economy will not be strong. I sent the CEOs of these major financial institutions a 40-page pamphlet that I hope they will read. Together we will be strong! Do not give up on the US economy. This country is the greatest country in the world!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Wednesday, April 8, 2009
Here is Another Example of Mortgage Fraud - Just another day in the mortgage mess
24 Indicted for Mortgage Fraud: (click on the link to read the article)
http://www.sandiego6.com/news/local/story/24-Indicted-for-Mortgage-Fraud-in-San-Diego/jFHw0rI8kES9oaCj-bCr0g.cspx
There are so many stories like the one mentioned in the article above, so when is the government going to get involved to prevent this from happening? This government needs to mandate background checks on ALL owners of mortgage companies, real estate enterprises, and mortgage banks. Furthermore, require that all owners of a "so called" enterprise be required to carry a broker's license. In addition to this, background checks should be done yearly and any arrests such as the one in this article, will lead to revocation of licensees license immediately.
Something has to change! I was a victim of mortgage fraud in 2004, and nothing has changed. The owner of the company who bought the company I worked for, back in 2004, had a prior arrest in 2001. He, too, used someone else's broker license. This government has to regulate this part of the industry, now, or else it is going to continue costing this country billions.
Stay tuned...I have more to share. Just another day in the mortgage mess!
http://www.sandiego6.com/news/local/story/24-Indicted-for-Mortgage-Fraud-in-San-Diego/jFHw0rI8kES9oaCj-bCr0g.cspx
There are so many stories like the one mentioned in the article above, so when is the government going to get involved to prevent this from happening? This government needs to mandate background checks on ALL owners of mortgage companies, real estate enterprises, and mortgage banks. Furthermore, require that all owners of a "so called" enterprise be required to carry a broker's license. In addition to this, background checks should be done yearly and any arrests such as the one in this article, will lead to revocation of licensees license immediately.
Something has to change! I was a victim of mortgage fraud in 2004, and nothing has changed. The owner of the company who bought the company I worked for, back in 2004, had a prior arrest in 2001. He, too, used someone else's broker license. This government has to regulate this part of the industry, now, or else it is going to continue costing this country billions.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Nice comment - Just another day in the mortgage mess
This was sent to me in response to my blog entry a week ago Saturday. I just wanted to post it. (note: I am not a fluent writer, this I know but it was a nice comment.)
Hi Heather,
I just read your blog from Saturday! You are such a great writer - I swear you should become a lobbyist. You have such a gift. Not only was that particular blog very, very incite full, but I felt it to be emotional as well. It said so much.
Thank you for taking the time to stay on this for us!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Hi Heather,
I just read your blog from Saturday! You are such a great writer - I swear you should become a lobbyist. You have such a gift. Not only was that particular blog very, very incite full, but I felt it to be emotional as well. It said so much.
Thank you for taking the time to stay on this for us!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Tuesday, April 7, 2009
Lloyd Blankfein, the CEO and Chairman of Goldman Sachs, is a Power Hitter! - Just another day in the mortgage mess
Mr. Lloyd Blankfein spoke today, in front of the Council of Institutional Investors, and he nailed it! His compassion for the taxpayers was incredible. Read his speech and I hope it will give many, the clarity to unanswered questions that many of us have been asking ourselves over the past twenty-four months.
http://www.scribd.com/doc/14049013/Lloyd-Blankfein-Speech-to-the-Council-of-Institutional-Investors-April-7-2009
With this said, I want to end this blog entry with what Mr. Blankfein stated towards the end of his speech that made me feel good. He stated, "I want to conclude with the following thought: we are fighting for nothing less than the immediate health and security of every person. We can never forget the products of economic growth - more accessible health care, better education, less crime, tolerance of diversity, social mobility and a commitment to democracy."
"In so many respects, change is in the order of the day." Mr. Blankfein is a true inspiration for all of us. Thank you!
Here is my quote of the day: "It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change." Charles Darwin (1809-1882) English Naturalist
Stay tuned...I have more to share. Just another day in the mortgage mess!
http://www.scribd.com/doc/14049013/Lloyd-Blankfein-Speech-to-the-Council-of-Institutional-Investors-April-7-2009
With this said, I want to end this blog entry with what Mr. Blankfein stated towards the end of his speech that made me feel good. He stated, "I want to conclude with the following thought: we are fighting for nothing less than the immediate health and security of every person. We can never forget the products of economic growth - more accessible health care, better education, less crime, tolerance of diversity, social mobility and a commitment to democracy."
"In so many respects, change is in the order of the day." Mr. Blankfein is a true inspiration for all of us. Thank you!
Here is my quote of the day: "It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change." Charles Darwin (1809-1882) English Naturalist
Stay tuned...I have more to share. Just another day in the mortgage mess!
Monday, April 6, 2009
1-888-995-HOPE - Just another day in the mortgage mess
I heard Treasury Secretary Geithner this morning in his press conference, regarding loan modification scams. He mentioned the HOPE now program was offering their services for free to homeowners. So, I called the 1-888# this morning to see if it was true because months ago I had called them, and they were not assisting with loan modifications. It is true, I spoke to one of the Representatives and she said they were now assisting homeowners with loan modifications for free. She let me know on average, it is taking 60-120 days to process the modification for those who qualified.
To get more information regarding a loan modification, call 1-888-995-HOPE.
Stay tuned...I have more to share. Just another day in the mortgage mess!
To get more information regarding a loan modification, call 1-888-995-HOPE.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Thursday, April 2, 2009
Credit Card Repayment Calculator - Just another day in the mortgage mess
This is found on the Federal Reserve's website, and is amazing!! It will calculate repayment periods on credit cards for you.
http://www.federalreserve.gov/creditcardcalculator/
Stay tuned...I have more to share. Just another day in the mortgage mess!
http://www.federalreserve.gov/creditcardcalculator/
Stay tuned...I have more to share. Just another day in the mortgage mess!
New Policy Tools that the Federal Reserve has implemented - Just another day in the mortgage mess
Here is a great link for you, if you would like to learn what the new policy tools the Federal Reserve has implemented to address this financial crisis. It is very informative.
http://www.federalreserve.gov/monetarypolicy/bst.htm
Stay tuned...I have more to share. Just another day in the mortgage mess!
http://www.federalreserve.gov/monetarypolicy/bst.htm
Stay tuned...I have more to share. Just another day in the mortgage mess!
Monday, March 30, 2009
Restructure for Whom? - Just another day in the mortgage mess
This morning I listened to President Obama's press conference on GM. President Obama stated, it is absolute that GM "...undergoes a fundamental restructure." "...it's a recognition that will take a new vision and new direction to create the GM of the future."
Suggestion for President Obama and his Administration: Can you take the same approach you did with GM and apply it to this financial crisis? We are in the worse financial crisis in history and, yet, neither the U.S. Senate Banking Committee nor Finance Committees are undergoing a "fundamental restructure". These committees had jurisdiction over the financial industry, therefore, need to undergo a "fundamental restructure". It is a recognition that will take a new vision and a new direction to create the U.S. Senate Banking Committee & House Finance Committee of the future. Moreover, more importantly, it seems logical to appoint new Chairmans of these Committees as well as introducting a new law prohibiting Chairmans of these committees, which have jurisdiction over the financial industry, from receiving contributions from the financial industry ever again.
This is change! This is change we, the people, deserve. This is common sense.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Suggestion for President Obama and his Administration: Can you take the same approach you did with GM and apply it to this financial crisis? We are in the worse financial crisis in history and, yet, neither the U.S. Senate Banking Committee nor Finance Committees are undergoing a "fundamental restructure". These committees had jurisdiction over the financial industry, therefore, need to undergo a "fundamental restructure". It is a recognition that will take a new vision and a new direction to create the U.S. Senate Banking Committee & House Finance Committee of the future. Moreover, more importantly, it seems logical to appoint new Chairmans of these Committees as well as introducting a new law prohibiting Chairmans of these committees, which have jurisdiction over the financial industry, from receiving contributions from the financial industry ever again.
This is change! This is change we, the people, deserve. This is common sense.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Saturday, March 28, 2009
We need to Unite Together "Constructively" - Just another day in the mortgage mess
I was looking up the definition of a word this morning when I ran across "collectivism" which I read about in my college days. The meaning of collectivism is a political or economic system in which the government owns businesses and land. The least collectivist of these is social democracy, which seeks to reduce the inequities of unrestrained capitalism by government regulation, redistribution of income, and varying degrees of planning and public ownership. In socialist systems, collectivist economics are carried to their furthest extreme, with a minimum of private ownership and a maximum of planned economy. To learn more about "collectivism" read books by Karl Marx.
Furthermore, I remember studying his ideas on "alienation" in college, and one example my Professor used, was the auto industry where factory workers put the doors on, the paint and so forth, but they do not get to assign their name to the final product as an artist would. The employee is alienated from the product he/she put together. The idea of "alienation" is where humans work for the good of themselves not for the good of others. Another example of this would be the subprime market these past few years, where subprime investors/subprime lenders seemed to set-up these loans only for the good of themselves, not for the good of the people; which resulted in the subprime crash of March 2007. It is my opinion that anger is going to further alienate all of us if we fail to use our anger constructively. There is so much anger towards the Executives of AIG and these subprime lenders & subprime borrowers and rightfully so. However, if this continues it will give "alienation" the momentum it needs to grow; therefore, causing people to do what is good for themselves, not for the good of all. We have to get over this anger and guide ourselves constructively; which is sometimes easier said than done. So many of us, including myself, have been hurt by this financial crisis and the anger can be overbearing at times. However, it is essential we stay united and work together constructively to re-build our economy strong, once again. Sometimes working with the enemy is the perfect antidote to a crisis. Is there a way these smart people at AIG, who put us in this mess, could use their intelligence creatively to get us out of this crisis? Just an idea. (maybe my view or opinion is naieve, but something has to work)
It is clear why so many believe President Obama is taking us in the direction of Socialism. It is all about perception.
I hope, as U.S. citizens, we will use our anger constructively to unite together and build together, so we are stronger and bigger than our government. We need our government to work for us, not the other way around. I am hoping this is the goal of President Obama, Congress, and Regulators. Moreover, I am glad these big banks want to return the TARP money to our government as they should. We need the CEOs of Bank of NY Mellon, Citi, Bank of America, Morgan Stanley, JP Morgan, and Goldman Sachs (all CEOs) to stay united and fight for the consumers best interest and the strength of our economy. They are big enough to do this. This is a time when "big" is good in my opinion.
In conclusion, if Treasury Secretary Geithner gets a "so called" super regulator in place collectively, and these CEOs stay united and return the TARP money, then it does not seem as if our government will dominate. Stay strong...One can hope!
I am going to end today's blog with this quote: "Courage is resistance to fear." Mark Twain
Stay tuned...I have more to share. Just another day in the mortgage mess!
Furthermore, I remember studying his ideas on "alienation" in college, and one example my Professor used, was the auto industry where factory workers put the doors on, the paint and so forth, but they do not get to assign their name to the final product as an artist would. The employee is alienated from the product he/she put together. The idea of "alienation" is where humans work for the good of themselves not for the good of others. Another example of this would be the subprime market these past few years, where subprime investors/subprime lenders seemed to set-up these loans only for the good of themselves, not for the good of the people; which resulted in the subprime crash of March 2007. It is my opinion that anger is going to further alienate all of us if we fail to use our anger constructively. There is so much anger towards the Executives of AIG and these subprime lenders & subprime borrowers and rightfully so. However, if this continues it will give "alienation" the momentum it needs to grow; therefore, causing people to do what is good for themselves, not for the good of all. We have to get over this anger and guide ourselves constructively; which is sometimes easier said than done. So many of us, including myself, have been hurt by this financial crisis and the anger can be overbearing at times. However, it is essential we stay united and work together constructively to re-build our economy strong, once again. Sometimes working with the enemy is the perfect antidote to a crisis. Is there a way these smart people at AIG, who put us in this mess, could use their intelligence creatively to get us out of this crisis? Just an idea. (maybe my view or opinion is naieve, but something has to work)
It is clear why so many believe President Obama is taking us in the direction of Socialism. It is all about perception.
I hope, as U.S. citizens, we will use our anger constructively to unite together and build together, so we are stronger and bigger than our government. We need our government to work for us, not the other way around. I am hoping this is the goal of President Obama, Congress, and Regulators. Moreover, I am glad these big banks want to return the TARP money to our government as they should. We need the CEOs of Bank of NY Mellon, Citi, Bank of America, Morgan Stanley, JP Morgan, and Goldman Sachs (all CEOs) to stay united and fight for the consumers best interest and the strength of our economy. They are big enough to do this. This is a time when "big" is good in my opinion.
In conclusion, if Treasury Secretary Geithner gets a "so called" super regulator in place collectively, and these CEOs stay united and return the TARP money, then it does not seem as if our government will dominate. Stay strong...One can hope!
I am going to end today's blog with this quote: "Courage is resistance to fear." Mark Twain
Stay tuned...I have more to share. Just another day in the mortgage mess!
Treasury Secretary Geithner calls for New Risk Watchdog - Just another day in the mortgage mess
On Thursday, March 26, 2009, Treasury Secretary Geithner told the House Financial Service Committee the United States needs a single regulator. He called for a new risk watchdog. As I stated on my blog earlier, my hope is if they set-up this super regulator, they do it correctly. Treasury Secretary Geithner needs to set-up this regulator with members and individuals from Congress, the FDIC, the Federal Reserve, the OTS, other regulatory agencies, and even former Loan Officers, Hedge Fund Managers, and those who sold derivatives. This would be a powerful super regulator. For the past decade one regulatory agency did not work. This needs to be a collective effort by all Agencies and parties involved. One can hope!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Wednesday, March 25, 2009
Entrepreneurs should not be Demonized - Just another day in the mortgage mess
I listened to President Obama's Press Conference last night. The one thing I liked was President Obama pointed out that we cannot demonize entrepreneurs who seek to make a profit.
I hope Jaime Dimon, at JP Morgan Chase bank, heard this press conference last night because he has demonized mortgage brokers, who are Entrepreneurs. Mr. Dimon shut down his bank's wholesale division because he seems to blame this mess on mortgage brokers. Not all mortgage brokers are demons. I hope Mr. Dimon will come to realize that having a wholesale division can help increase productivity for his bank, not just result in losses. As long as the bank has proper risk management in place, then working with mortgage brokers seems manageable.
Note: New home sales were up in the month of February. The Commerce Department said sales rose 4.7 percent to a 337,000 annual pace, the fastest increase since April last year, from an upwardly revised 322,000 in January.
Here is a quote for the day: "If a man empties his purse into his head no one can take away from him. An investment in knowledge always pays the best interest". Benjamin Franklin
With that said, when shopping for a home, please educate yourself.
Stay tuned...I have more to share. Just another day in the mortgage mess!
I hope Jaime Dimon, at JP Morgan Chase bank, heard this press conference last night because he has demonized mortgage brokers, who are Entrepreneurs. Mr. Dimon shut down his bank's wholesale division because he seems to blame this mess on mortgage brokers. Not all mortgage brokers are demons. I hope Mr. Dimon will come to realize that having a wholesale division can help increase productivity for his bank, not just result in losses. As long as the bank has proper risk management in place, then working with mortgage brokers seems manageable.
Note: New home sales were up in the month of February. The Commerce Department said sales rose 4.7 percent to a 337,000 annual pace, the fastest increase since April last year, from an upwardly revised 322,000 in January.
Here is a quote for the day: "If a man empties his purse into his head no one can take away from him. An investment in knowledge always pays the best interest". Benjamin Franklin
With that said, when shopping for a home, please educate yourself.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Tuesday, March 24, 2009
Sheila Bair implied the FDIC could take the Role of a Super Regulator - Just another day in the mortgage mess
I was watching bits and pieces of Sheila Bair on CNBC this afternoon, doing an interview with Larry Kudlow. Sheila Bair implied the FDIC could work in the role of a super regulator, and it seemed to be what she wanted.
I watched a special about how the FDIC handles bank employees and customers when shutting down a bank. The way the FDIC employees handled these employees and customers gave me goose bumps. An elderly couple was arriving to their bank after hearing the FDIC took it over, with a brief case to load all their cash into it before leaving. One of the FDIC employees noticed them walking up and the amount of compassion he had towards this couple was amazing. He pulled them to the side and explained to them what was going on with the bank and how their money was safe. It was as if this FDIC employee truly cared about this couple. The couple left with an empty brief case.
The compassion these employees had towards these customers is what this government/Congress is missing when it comes to the American people. When you watch the Congressional testimony, it seems like there is so much hostility towards Chairman Bernanke, the New York Fed, Treasury Secretary Geithner and, moreover, finger pointing in every Press Conference held whether it is by the GOP, Democrats, or Republicans. Our government/Congress lacks compassion for Americans who are watching them. Think about it, Sheila Bair comes into an interview with class, diplomacy, and concern. She is a true wizard when it comes to handling the American consumer and their concerns.
Sheila Bair needs to train Congress on how to show compassion towards the needs of Americans, if this is even possible. She is running a tight ship it seems.
I watched some of the testimony before the House Finance Committee this morning with Chairman Bernanke, Treasury Secretary Geithner, and the New York Fed Dudley. The one thing that impressed me was Treasury Secretary stood up for the CEO of AIG, Mr. Liddy. Think about it, Mr. Liddy is getting paid $1/year to try to get AIG cleaned up; he did not create that mess, but if you watched Congress grill Mr. Liddy last week, you would have thought he committed a crime. It was that terrible in my opinion. Mr. Liddy took the "so called" interrogation with great strides and answered their questions. He kept his composure; he was a true professional. Concisely, I was glad Treasury Secretary Geithner acknowledged Mr. Liddy today. Not only this, Treasury Secretary Geithner made Congress aware there are innocent employees who are still working at AIG, who had nothing to do with this mess; we have to support those employees.
Here is my quote of the day, "Criticism may not be agreeable, but it is necessary. It fulfills the same function as pain in the human body; it calls attention to an unhealthy state of things". Winston Churchill
I hope President Obama stabilizes this financial system, so healthcare, education, and energy truly becomes a reality for everyone. Think about it, if people are unemployed, who is going to be able to afford to weatherize their home? No matter what anyone believes, the financial market is the foundation of the United States economy; it is what makes this country tick. Moreover, more importantly, it seems as if healthcare, education, and energy could be even stronger should the government get stability back in the banking system. Sounds like common sense. We need financial stability now. I have A+ borrowers’ with jumbo loans that still cannot get low interest rates because the secondary market wants to add a .375% fee to California homeowners. The credit markets are not freeing up for jumbo borrowers, and this is not fair when they qualify for lower rates. They deserve these lower rates.
Stay tuned...I have more to share. Just another day in the mortgage mess!
I watched a special about how the FDIC handles bank employees and customers when shutting down a bank. The way the FDIC employees handled these employees and customers gave me goose bumps. An elderly couple was arriving to their bank after hearing the FDIC took it over, with a brief case to load all their cash into it before leaving. One of the FDIC employees noticed them walking up and the amount of compassion he had towards this couple was amazing. He pulled them to the side and explained to them what was going on with the bank and how their money was safe. It was as if this FDIC employee truly cared about this couple. The couple left with an empty brief case.
The compassion these employees had towards these customers is what this government/Congress is missing when it comes to the American people. When you watch the Congressional testimony, it seems like there is so much hostility towards Chairman Bernanke, the New York Fed, Treasury Secretary Geithner and, moreover, finger pointing in every Press Conference held whether it is by the GOP, Democrats, or Republicans. Our government/Congress lacks compassion for Americans who are watching them. Think about it, Sheila Bair comes into an interview with class, diplomacy, and concern. She is a true wizard when it comes to handling the American consumer and their concerns.
Sheila Bair needs to train Congress on how to show compassion towards the needs of Americans, if this is even possible. She is running a tight ship it seems.
I watched some of the testimony before the House Finance Committee this morning with Chairman Bernanke, Treasury Secretary Geithner, and the New York Fed Dudley. The one thing that impressed me was Treasury Secretary stood up for the CEO of AIG, Mr. Liddy. Think about it, Mr. Liddy is getting paid $1/year to try to get AIG cleaned up; he did not create that mess, but if you watched Congress grill Mr. Liddy last week, you would have thought he committed a crime. It was that terrible in my opinion. Mr. Liddy took the "so called" interrogation with great strides and answered their questions. He kept his composure; he was a true professional. Concisely, I was glad Treasury Secretary Geithner acknowledged Mr. Liddy today. Not only this, Treasury Secretary Geithner made Congress aware there are innocent employees who are still working at AIG, who had nothing to do with this mess; we have to support those employees.
Here is my quote of the day, "Criticism may not be agreeable, but it is necessary. It fulfills the same function as pain in the human body; it calls attention to an unhealthy state of things". Winston Churchill
I hope President Obama stabilizes this financial system, so healthcare, education, and energy truly becomes a reality for everyone. Think about it, if people are unemployed, who is going to be able to afford to weatherize their home? No matter what anyone believes, the financial market is the foundation of the United States economy; it is what makes this country tick. Moreover, more importantly, it seems as if healthcare, education, and energy could be even stronger should the government get stability back in the banking system. Sounds like common sense. We need financial stability now. I have A+ borrowers’ with jumbo loans that still cannot get low interest rates because the secondary market wants to add a .375% fee to California homeowners. The credit markets are not freeing up for jumbo borrowers, and this is not fair when they qualify for lower rates. They deserve these lower rates.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Monday, March 23, 2009
The Federal Reserve + The US Treasury = Justice for All! - Just another day in the mortgage mess
As I stated awhile back, Treasury Secretary Geithner made a brilliant move when he decided to add Regulators as part of the Plunge Protection Team therefore giving it the "so called" Liquid Drano" it needed. That was a "common sense" move in my opinion. Moreover, more importantly, as I stated awhile back, I truly believe Chairman Bernanke is the one to get us out of this financial crisis; and, moreover, design a new method of identifying and protecting the United States from oncoming financial crisis in the future. Now, if Chairman Bernanke and Treasury Secretary Geithner can get Congress to unite with them on this venture, this will be a historical move in my opinion.
Congress + US Treasury + Federal Reserve + FDIC = CUFF In other words, this country will never work without planning or preparation for future financial crisis ever again! I am so excited because we may have the start of the greatest partnership in US history. CUFF could be the acronym for a future Super Regulator consisting of Members of Congress, the US Treasury, the Federal Reserve, the FDIC, and other regulatory agencies as well. There is your "so called" Super Regulator. With that said, the next generation could be protected from ever experiencing a crisis like the Great Depression, Savings and Loan Crisis, and this financial crisis we face today. Just an idea.
FBR: In a Joint Press Release today:
The Role of the Federal Reserve in Preserving Financial and Monetary Stability
Joint Statement by the Department of the Treasury and the Federal Reserve
The Congress created the Federal Reserve in 1913 in large part in response to the periodic panics and crises that plagued the U.S. financial system in the 19th and early 20th centuries. Over nearly a century, in the service of its original mandate as well as its monetary and regulatory responsibilities, the Federal Reserve has developed wide-ranging institutional expertise regarding financial markets and institutions, foreign as well as domestic. The Federal Reserve also has the unique ability to serve as the lender of last resort, a vital function in crises. For these reasons, it is natural and desirable that the Federal Reserve should play a central role, in cooperation with the Department of the Treasury and other agencies, in preventing and managing financial crises.
This joint statement reflects the common views of the Treasury and the Federal Reserve on the appropriate roles of the Federal Reserve and the Treasury during the current financial crisis and in the future and on the steps necessary to ensure that both financial and monetary stability will be achieved.
To read the broad points that the Treasury and the Federal Reserve agree on, go to the following link: http://www.federalreserve.gov/newsevents/press/monetary/20090323b.htm
With this said, I am ending this blog entry with a great quote: "To handle yourself, use your head. To handle others, use your heart. Seems as if some people grow with responsibility-others just swell. You can't escape the responsibility of tomorrow by evading it today." Abraham Lincoln
Thank you Chairman Bernanke and Treasury Secretary Geithner!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Congress + US Treasury + Federal Reserve + FDIC = CUFF In other words, this country will never work without planning or preparation for future financial crisis ever again! I am so excited because we may have the start of the greatest partnership in US history. CUFF could be the acronym for a future Super Regulator consisting of Members of Congress, the US Treasury, the Federal Reserve, the FDIC, and other regulatory agencies as well. There is your "so called" Super Regulator. With that said, the next generation could be protected from ever experiencing a crisis like the Great Depression, Savings and Loan Crisis, and this financial crisis we face today. Just an idea.
FBR: In a Joint Press Release today:
The Role of the Federal Reserve in Preserving Financial and Monetary Stability
Joint Statement by the Department of the Treasury and the Federal Reserve
The Congress created the Federal Reserve in 1913 in large part in response to the periodic panics and crises that plagued the U.S. financial system in the 19th and early 20th centuries. Over nearly a century, in the service of its original mandate as well as its monetary and regulatory responsibilities, the Federal Reserve has developed wide-ranging institutional expertise regarding financial markets and institutions, foreign as well as domestic. The Federal Reserve also has the unique ability to serve as the lender of last resort, a vital function in crises. For these reasons, it is natural and desirable that the Federal Reserve should play a central role, in cooperation with the Department of the Treasury and other agencies, in preventing and managing financial crises.
This joint statement reflects the common views of the Treasury and the Federal Reserve on the appropriate roles of the Federal Reserve and the Treasury during the current financial crisis and in the future and on the steps necessary to ensure that both financial and monetary stability will be achieved.
To read the broad points that the Treasury and the Federal Reserve agree on, go to the following link: http://www.federalreserve.gov/newsevents/press/monetary/20090323b.htm
With this said, I am ending this blog entry with a great quote: "To handle yourself, use your head. To handle others, use your heart. Seems as if some people grow with responsibility-others just swell. You can't escape the responsibility of tomorrow by evading it today." Abraham Lincoln
Thank you Chairman Bernanke and Treasury Secretary Geithner!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Treasury Secretary Geithner Nailed it Today! - Just another day in the mortgage mess
I watched the interview with Treasury Secretary Geithner with Erin Burnett. I think Treasury Secretary Geithner is working 24/7 to stabilize the financial industry. I was ecstatic when he stated, "People need to be compensated for being careful and prudent". He was talking about executive compensation, which I even stated on my blog last week.
I think Treasury Geithner is working for the people, not for Congress. He stated people have to be rewarded for success, not failure. His goal seems to be to work with Congress and find balance.
Treasury Secretary Geithner spoke with confidence today. He stated that they will have a very strong and powerful team put together that will protect taxpayers. He also stated that he "is seeing encouraging signs of growth."
Treasury Secretary Geithner nailed it today, in my opinion. Good job, Secretary Geithner!
My quote for the day: "Kites rise highest against the wind, not with it." Winston Churchill
Stay tuned...I have more to share. Just another day in the mortgage mess!
I think Treasury Geithner is working for the people, not for Congress. He stated people have to be rewarded for success, not failure. His goal seems to be to work with Congress and find balance.
Treasury Secretary Geithner spoke with confidence today. He stated that they will have a very strong and powerful team put together that will protect taxpayers. He also stated that he "is seeing encouraging signs of growth."
Treasury Secretary Geithner nailed it today, in my opinion. Good job, Secretary Geithner!
My quote for the day: "Kites rise highest against the wind, not with it." Winston Churchill
Stay tuned...I have more to share. Just another day in the mortgage mess!
Sunday, March 22, 2009
Quote of the Day - Just another day in the mortgage mess!
Two quotes that seem relevant to what we are experiencing as a country today.
"Nothing is easier than spending the public money. It does not appear to belong to anybody. The temptation is overwhelming to bestow is on somebody." Calvin Coolidge
"When is he going to be for you? Oh, he is going to be for me more and more when I need him less." John F. Kennedy
Please unite with me in making a commitment (to yourself) that you will find an innovative way to contribute in rebuilding the strength of our country as citizens; so we do not need this government, therefore making it about us, not about them from this point forward. Please.
Stay tuned...I have more to share. Just another day in the mortgage mess!
"Nothing is easier than spending the public money. It does not appear to belong to anybody. The temptation is overwhelming to bestow is on somebody." Calvin Coolidge
"When is he going to be for you? Oh, he is going to be for me more and more when I need him less." John F. Kennedy
Please unite with me in making a commitment (to yourself) that you will find an innovative way to contribute in rebuilding the strength of our country as citizens; so we do not need this government, therefore making it about us, not about them from this point forward. Please.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Friday, March 20, 2009
NY Times: Regulators Worldwide Scrutinize Bankers' Pay - Just another day in the mortgage mess
Watching this financial mess unwind is becoming almost comical with a distasteful twist. According to the article in the New York Times, world regulators propose the Securities and Exchange Commission regulate bank executive's pay.
Okay, do they realize the boat already sailed? The SEC should have been involved with AIG, banks, mortgage banks, and/or anyone selling a security to the public going back to the inception of deregulation. From this point forward, bank executives should have their pay tied to how well their company adheres to "proper risk management, the safety and soundness of their bank, and consumer protection". Had this been done these past 10 years, many of these executives would have never had million dollar incomes. Think about it.
Moreover, if an executive lays down solid guidelines when underwriting loans, and the employees produce with little loss; then the payment of executive bonuses is appropriate in my opinion. Had this been in place, many of these executives would have never had a paycheck. Moreover, more importantly, the employees should be the ones who reap the benefits for doing all the hard work, especially if their losses are low; they are the front lines of the business. It seems upside down when CEOs walk away with millions while the employees lose their entire 401k.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Okay, do they realize the boat already sailed? The SEC should have been involved with AIG, banks, mortgage banks, and/or anyone selling a security to the public going back to the inception of deregulation. From this point forward, bank executives should have their pay tied to how well their company adheres to "proper risk management, the safety and soundness of their bank, and consumer protection". Had this been done these past 10 years, many of these executives would have never had million dollar incomes. Think about it.
Moreover, if an executive lays down solid guidelines when underwriting loans, and the employees produce with little loss; then the payment of executive bonuses is appropriate in my opinion. Had this been in place, many of these executives would have never had a paycheck. Moreover, more importantly, the employees should be the ones who reap the benefits for doing all the hard work, especially if their losses are low; they are the front lines of the business. It seems upside down when CEOs walk away with millions while the employees lose their entire 401k.
Stay tuned...I have more to share. Just another day in the mortgage mess!
AIG has to GO - Just another day in the mortgage mess
I was reading the New York Times today, "AIG Sues Government for Return of $306 Million in Tax Payments".
Are the Executives of AIG, citizens of the United States? The reason I ask if they are citizens is because as citizens this means they are ultimately suing themselves. Taxpayers, which includes AIG Executives, own 80% of AIG. The actions of AIG seem pathetic. What is more pathetic is how our government considers itself a hostage of AIG. President Obama even went as far as comparing AIG to someone strapped with a bomb, holding the detonator, which in my opinion meant that AIG is holding the US Government hostage. If this is the case, then how are the actions of AIG Executives not considered financial terrorism?
It seems like AIG has to go! There has to be a way that AIG can go and, in doing so, not destroy the financial backbone of the entire world. How did Congress and regulators let this company get this far out of control. Who ran the United States government these past 5 years, AIG? I would like to know who received contributions from AIG. If Congress is asking AIG to supply the employees who received bonuses, then I would like to know who in Congress received contribution money from AIG over the past five years. I would also like it if President Obama and Treasury Secretary Geithner asked these individuals to surrender their funds to US taxpayers. Seems fair.
I hope this government will stop spending money. I do not understand why they cannot implement my "Sleepy Loan" lien idea and get money flowing into this economy without us going further in debt. Congress is out of control it seems. Someone has to pull in the reins instead of going on the road and doing Town Hall Meetings and Jay Leno it seems.
I will end this blog entry with a quote by Bernard Baruch, "The stereotype of bankers as conservative, careful, prudent individuals was shattered in 1929."This mess should have never happened!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Are the Executives of AIG, citizens of the United States? The reason I ask if they are citizens is because as citizens this means they are ultimately suing themselves. Taxpayers, which includes AIG Executives, own 80% of AIG. The actions of AIG seem pathetic. What is more pathetic is how our government considers itself a hostage of AIG. President Obama even went as far as comparing AIG to someone strapped with a bomb, holding the detonator, which in my opinion meant that AIG is holding the US Government hostage. If this is the case, then how are the actions of AIG Executives not considered financial terrorism?
It seems like AIG has to go! There has to be a way that AIG can go and, in doing so, not destroy the financial backbone of the entire world. How did Congress and regulators let this company get this far out of control. Who ran the United States government these past 5 years, AIG? I would like to know who received contributions from AIG. If Congress is asking AIG to supply the employees who received bonuses, then I would like to know who in Congress received contribution money from AIG over the past five years. I would also like it if President Obama and Treasury Secretary Geithner asked these individuals to surrender their funds to US taxpayers. Seems fair.
I hope this government will stop spending money. I do not understand why they cannot implement my "Sleepy Loan" lien idea and get money flowing into this economy without us going further in debt. Congress is out of control it seems. Someone has to pull in the reins instead of going on the road and doing Town Hall Meetings and Jay Leno it seems.
I will end this blog entry with a quote by Bernard Baruch, "The stereotype of bankers as conservative, careful, prudent individuals was shattered in 1929."This mess should have never happened!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Thursday, March 19, 2009
Hindsight is 20/20 - Just another day in the mortgage mess
Apparently, Senator Grassley asked Fannie Mae and Freddie Mac today to justify bonuses while firms lost money.
Do you want to know what confuses me? Congress has talked about privatizing Fannie and Freddie for over a decade, and now owns Fannie/Freddie. Congress now wants Fannie/Freddie to justify their bonuses now. They are a little late to the playing field in my opinion. This should have been done by its regulators over the past years. It is so frustrating listening to our Congress because their ways seem so antiquated. Their actions seems pathetic, especially after passing the first bailout without any apparent oversight measures put into place, and now the issues with the AIG bonuses. Congress seems so quick to point the fingers instead of taking accountability for their actions.
At a town hall meeting today, President Obama promised the audience, "there will be brighter days". I hope President Obama gives Congress a makeover that modernizes its methodologies and ideologies. Now, that will be a brighter day! Moreover, more importantly, what I find peculiar is that the system apparently allowed the Chairman of the Senate Banking Committee to take contributions from Fannie Mae/Freddie Mac as well as from AIG in the first place.
In addition, does it seem logical for President Obama to introduce a "new" law that prohibits anyone serving on the Finance Committee, the Senate Banking Committee or any committee having jurisdiction over banking and consumer protection, from ever taking contributions from the entire financial/commercial industry. This seems like "common sense".
I just cannot believe the law allowed a Senator or anyone who had jurisdiction over the safety and soundness of banks and consumer protection, to take contributions from the financial/commercial sector. How was this not a conflict of interest? Who protected whom here?
With this said, I am going to end this blog entry with a quote: “There is something about too much prosperity that ruins the fiber of the people.” Dwight Morrow, running for the Senate in 1930
Stay tuned...I have more to share. Just another day in the mortgage mess!
Do you want to know what confuses me? Congress has talked about privatizing Fannie and Freddie for over a decade, and now owns Fannie/Freddie. Congress now wants Fannie/Freddie to justify their bonuses now. They are a little late to the playing field in my opinion. This should have been done by its regulators over the past years. It is so frustrating listening to our Congress because their ways seem so antiquated. Their actions seems pathetic, especially after passing the first bailout without any apparent oversight measures put into place, and now the issues with the AIG bonuses. Congress seems so quick to point the fingers instead of taking accountability for their actions.
At a town hall meeting today, President Obama promised the audience, "there will be brighter days". I hope President Obama gives Congress a makeover that modernizes its methodologies and ideologies. Now, that will be a brighter day! Moreover, more importantly, what I find peculiar is that the system apparently allowed the Chairman of the Senate Banking Committee to take contributions from Fannie Mae/Freddie Mac as well as from AIG in the first place.
In addition, does it seem logical for President Obama to introduce a "new" law that prohibits anyone serving on the Finance Committee, the Senate Banking Committee or any committee having jurisdiction over banking and consumer protection, from ever taking contributions from the entire financial/commercial industry. This seems like "common sense".
I just cannot believe the law allowed a Senator or anyone who had jurisdiction over the safety and soundness of banks and consumer protection, to take contributions from the financial/commercial sector. How was this not a conflict of interest? Who protected whom here?
With this said, I am going to end this blog entry with a quote: “There is something about too much prosperity that ruins the fiber of the people.” Dwight Morrow, running for the Senate in 1930
Stay tuned...I have more to share. Just another day in the mortgage mess!
Wednesday, March 18, 2009
President Obama has Game! - Just another day in the mortgage mess
President Obama was in Costa Mesa, CA for a Town Hall Meeting. If you missed it, I would suggest watching it. I watched it this afternoon, and I have to say President Obama nailed it! He was confident, clear, funny, and determined to conquer this financial disaster we are facing. The one thing I enjoy about watching President Obama, no matter how stressed my day is, he can make me laugh with some of his comments. This economic crisis has placed so much stress on us, including myself, that laughter is the greatest medicine. President Obama has great intellect and, at the same time, has the greatest sense of humor; he is the antidote this country so desperately needed in my opinion. Whether or not I voted for President Obama, I think he is on the right track, even if he does not have Regulatory Reform on that Pledge, I see his vision. Furhermore, President Obama told the audience that we have to rebuild our economy that is consisent with our values. He even went into clearly defining what happened with the subprime mess.
All I can say is President Obama was on top of his game today. Between this morning's Press Conference and tonight's Town Hall Meeting, I am impressed.
He was absolutely brilliant in this Town Hall Meeting. If you did not watch it, I would highly suggest watching it. Great job!
Stay tuned...I have more to share. Just another day in the mortgage mess!
All I can say is President Obama was on top of his game today. Between this morning's Press Conference and tonight's Town Hall Meeting, I am impressed.
He was absolutely brilliant in this Town Hall Meeting. If you did not watch it, I would highly suggest watching it. Great job!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Chairman Bernanke Does it Again! - Just another day in the mortgage mess
Chairman Bernanke definitely has the King Midus touch. Everything he touches turns to gold. Chairman Bernanke stated today the Federal Reserve is going to continue to purchase long-term treasuries over the next six months. This was good news to the market today. Once again, Chairman Bernanke is moving markets and he is moving it with his own expertise and knowledge. We needed Chairman Bernanke ten years ago, in my opinion.
Hooray to Chairman Bernanke!
Today was a positive day that even President Obama had a great tone in his Press Conference today. President Obama stressed the importance of regulatory reform. He also wants other sectors such as education, energy, and healthcare to develop strength, so the financial market is not what supports this economy any longer.
The one thing I hope President Obama keeps in mind is what Chariman Bernanke stated back in January, "History demonstrates conclusively that a modern economy cannot grow if its financial system is not operating effectively."
President Obama has to focus on getting the financial system operating effectively, there is not an option here.
I just wish he would add "Regulatory Reform/Oversight" to his pledge. Regulatory Reform covers banking/financial. I hope by Regulatory Reform, President Obama includes "oversight". I would sign his pledge in a heartbeat if it had this category on it. Seems like common sense.
Overall, it appears this country might be off to a great start now. I will now end today's entry with a quote and a message to Congress, from Franklin D. Roosevelt, "Public office means serving the public and nobody else".
Stay tuned...I have more to share. Just another day in the mortgage mess!
Hooray to Chairman Bernanke!
Today was a positive day that even President Obama had a great tone in his Press Conference today. President Obama stressed the importance of regulatory reform. He also wants other sectors such as education, energy, and healthcare to develop strength, so the financial market is not what supports this economy any longer.
The one thing I hope President Obama keeps in mind is what Chariman Bernanke stated back in January, "History demonstrates conclusively that a modern economy cannot grow if its financial system is not operating effectively."
President Obama has to focus on getting the financial system operating effectively, there is not an option here.
I just wish he would add "Regulatory Reform/Oversight" to his pledge. Regulatory Reform covers banking/financial. I hope by Regulatory Reform, President Obama includes "oversight". I would sign his pledge in a heartbeat if it had this category on it. Seems like common sense.
Overall, it appears this country might be off to a great start now. I will now end today's entry with a quote and a message to Congress, from Franklin D. Roosevelt, "Public office means serving the public and nobody else".
Stay tuned...I have more to share. Just another day in the mortgage mess!
Tuesday, March 17, 2009
The US Economy Needs a Jolt! - Just another day in the mortgage mess
According to Larry Summmers, on CNBC this morning, the US economy needs a jolt or the costs could lead to deflation.
It seems my "Sleepy Loan" lien idea is a great jolt. Here is what I wrote the other day on my blog:
What I do not understand is if a bank receives bailout monies for a billion dollars, and it has a billion dollars in bad assets, why not use my "Sleepy Loan" lien idea and payoff the debtors by modifying borrowers first mortgages and placing a "sleepy second" in second position at 3% interest, therefore protecting taxpayer money? I spoke with a retired Private Banker, and he said this could free-up the Securitization market, which is what we need in order to free the credit markets. In addition to this, the borrower never pays on this second; it is paid off when he/she sells the property, pays it in full, and/or refinances it in three years.
Furthermore, President Obama's housing plan only puts $2,000 back into homeowners pockets annually. The "Sleepy Loan" lien could put over a $1,500/month back into the homeowner's pocket(depending on loan size), which is an instant stimulus package to the US economy and Americans. That is $18,000 annually back into the US economy x 4 million homeowners. This is the shot this country needs, in my opinion. This plan could cover more than the nine million homeowners that President Obama's plan covers currently. This plan could help jumbo loan borrowers it seems. If you do this with four million homeowners, you have just boosted this economy without spending additional money. If you do this with ten> million homeowners, you have just given Americans the bigger housing plan they are seeking. In addition, the taxpayers make interest on the bailout funds.
I am not an economic nor a monetary policy expert, this just seems like common sense. Even Chairman Bernanke stated, what goes in must come out equally. I am not seeing the "equally" portion in this banking crisis right now.
Please continue to unite with me, and vote for my "Sleepy Loan" lien idea. We have to create jobs for Americans. Americans are amazing and caring human beings; we do not deserve this; we do not deserve $2 trillion in debt; we deserve happiness and prosperity. Please unite with me.
Stay tuned...I have more to share. Just another day in the mortgage mess!
It seems my "Sleepy Loan" lien idea is a great jolt. Here is what I wrote the other day on my blog:
What I do not understand is if a bank receives bailout monies for a billion dollars, and it has a billion dollars in bad assets, why not use my "Sleepy Loan" lien idea and payoff the debtors by modifying borrowers first mortgages and placing a "sleepy second" in second position at 3% interest, therefore protecting taxpayer money? I spoke with a retired Private Banker, and he said this could free-up the Securitization market, which is what we need in order to free the credit markets. In addition to this, the borrower never pays on this second; it is paid off when he/she sells the property, pays it in full, and/or refinances it in three years.
Furthermore, President Obama's housing plan only puts $2,000 back into homeowners pockets annually. The "Sleepy Loan" lien could put over a $1,500/month back into the homeowner's pocket(depending on loan size), which is an instant stimulus package to the US economy and Americans. That is $18,000 annually back into the US economy x 4 million homeowners. This is the shot this country needs, in my opinion. This plan could cover more than the nine million homeowners that President Obama's plan covers currently. This plan could help jumbo loan borrowers it seems. If you do this with four million homeowners, you have just boosted this economy without spending additional money. If you do this with ten> million homeowners, you have just given Americans the bigger housing plan they are seeking. In addition, the taxpayers make interest on the bailout funds.
I am not an economic nor a monetary policy expert, this just seems like common sense. Even Chairman Bernanke stated, what goes in must come out equally. I am not seeing the "equally" portion in this banking crisis right now.
Please continue to unite with me, and vote for my "Sleepy Loan" lien idea. We have to create jobs for Americans. Americans are amazing and caring human beings; we do not deserve this; we do not deserve $2 trillion in debt; we deserve happiness and prosperity. Please unite with me.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Monday, March 16, 2009
New Pledge Emailed to Me Today - Just another day in the mortgage mess
Here is another email I received today from Organizing for America, training Americans on how to collect signatures for President Obama's economic plan. This past Friday, I sent an email in response refusing to sign this Pledge because it does not include a Banking/Financial plan. I received the Pledge again today, but revamped and with a training program on how volunteers can sell it to the public, see attached link, http://my.barackobama.com/page/content/pledgeprojectcanvass/
What I am not understanding, is why Americans are being asked and coached on how to sign a Pledge, when President Obama should be having Congress sign this Pledge pledging to Americans they will not let special interest groups corrupt his economic plan? Seems like common sense.
I have a question, how is anyone going to get an education if there is not any stability in the banking system? How is anyone going to have healthcare if they don't have a job because the banking system is not stabilized? How is anyone going to have healthcare if their employers are going out of business or are being taxed for their employees healthcare plan? How are businesses going to expand or afford to weatherize or energy proof their buildings if credit is not flowing?
We need a Pledge for stabilizing the banking/financial system, before we have a Pledge for Healthcare, Education, and Energy. It seems like common sense 101.
Please unite with me and vote on my "sleepy loan" lien idea. I wrote more details on my "sleepy loan" lien idea this past weekend, page down to see details.
Stay tuned...I have more to share. Just another day in the mortgage mess!
What I am not understanding, is why Americans are being asked and coached on how to sign a Pledge, when President Obama should be having Congress sign this Pledge pledging to Americans they will not let special interest groups corrupt his economic plan? Seems like common sense.
I have a question, how is anyone going to get an education if there is not any stability in the banking system? How is anyone going to have healthcare if they don't have a job because the banking system is not stabilized? How is anyone going to have healthcare if their employers are going out of business or are being taxed for their employees healthcare plan? How are businesses going to expand or afford to weatherize or energy proof their buildings if credit is not flowing?
We need a Pledge for stabilizing the banking/financial system, before we have a Pledge for Healthcare, Education, and Energy. It seems like common sense 101.
Please unite with me and vote on my "sleepy loan" lien idea. I wrote more details on my "sleepy loan" lien idea this past weekend, page down to see details.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Finally, Experts are getting on the Same Train - Just another day in the mortgage mess
Former Federal Reserve Vice Chairman, Alan Blinder, stated today on CNBC, the Federal Reserve going back to the 2002 rate cuts, and bank Regulators are at fault here. (This is what I have been stating for over a year now, except I believe the start of this mess was the rate cuts done after 9/11).
In addition Former Treasury under Sectretary of International Affairs, John Taylor, stated on CNBC, the Government made this crisis worse. (This is what I have been stating for over a year based on Chairman Bernanke's book.) Mr. Taylor even stated the crisis was misdiagnosed. (This is what I stated awhile back as well.) He stated the mess was not properly diagnosed. (sound familiar?)
P.S. - President Obama announced this morning on MSNBC, Treasury Secretary Geithner is going to use every legal avenue to block the AIG bonuses. This is fantastic news for us, taxpayers! President Obama stated, "Main Street, Wall Street, and Washington must play by the same rules". If this is the case, then it is my opinion, President Obama needs to block the pay raises Congress gave themselves this year. He said it himself that everyone must play by the same rules.
Stay tuned...I have more to share. Just another day in the mortgage mess!
In addition Former Treasury under Sectretary of International Affairs, John Taylor, stated on CNBC, the Government made this crisis worse. (This is what I have been stating for over a year based on Chairman Bernanke's book.) Mr. Taylor even stated the crisis was misdiagnosed. (This is what I stated awhile back as well.) He stated the mess was not properly diagnosed. (sound familiar?)
P.S. - President Obama announced this morning on MSNBC, Treasury Secretary Geithner is going to use every legal avenue to block the AIG bonuses. This is fantastic news for us, taxpayers! President Obama stated, "Main Street, Wall Street, and Washington must play by the same rules". If this is the case, then it is my opinion, President Obama needs to block the pay raises Congress gave themselves this year. He said it himself that everyone must play by the same rules.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Sunday, March 15, 2009
"The Era of High Living is Over", Chairman Bernanake stated - Just another day in the mortgage mess
Tonight Chairman Bernanke stated in his interview on 60 Minutes, "The era of high living is over". He stated, "the banks have to have some humility right now. Their job is to find a way to make loans to credit worthy borrowers."
I believe Chairman Bernake is going to be the champion who leads us out of this recession. I hope the political will is there to solve this financial crisis because according to Chairman Bernanke without the political will it will prevent a recovery.
On the contrary, Chairman Bernanke stated he sees "green parachutes". (that's exciting news). He stated the Federal Reserve is here and will do everything possible to fix this crisis. A recovery is not going to happen unless the banking crisis is fixed, he noted. Chairman Bernanke stated, "I have every confidence this economy will recover".
I believe Chairman Bernanke. He is an absolute genius! Chairman Bernanke stated the recession will most likely end this year, and a recovery will begin in 2010. He does not see a depression, which is what I have been stating for over a year now. I read his book. I figured if I was going to try to understand this mess, I was going to read the book of an expert on the Great Depression.
(*note*- Based on Chairman Bernanke's panic theory, if the banking crisis did in fact peak in October of 2008, a recovery should start twelve months later; which is October 2009. I am assuming if the banking crisis is stabilized and no other hiccups come along.) I read his book. It was above my head, since my degree is in Behavioral Science; but I did the best I could. I am trying my best to understand this crisis because these past twenty-four months were hellacious. They were so bad that at times I was mad at Chairman Bernanke when I was reading his book, but I think his main obstacle was Congress. Had Congress let Chairman Bernanke run the show and dictate what needed to be done, I think we might have seen a faster recovery. Maybe I am wrong, it is just my opinion. I really want us out of this crisis. I am exhausted. At the same time, I am passionate about my job. I love my job. I enjoy my clients. I want this country back to being happy and prosperous. Please.
Stay tuned...I have more to share. Just another day in the mortgage mess!
I believe Chairman Bernake is going to be the champion who leads us out of this recession. I hope the political will is there to solve this financial crisis because according to Chairman Bernanke without the political will it will prevent a recovery.
On the contrary, Chairman Bernanke stated he sees "green parachutes". (that's exciting news). He stated the Federal Reserve is here and will do everything possible to fix this crisis. A recovery is not going to happen unless the banking crisis is fixed, he noted. Chairman Bernanke stated, "I have every confidence this economy will recover".
I believe Chairman Bernanke. He is an absolute genius! Chairman Bernanke stated the recession will most likely end this year, and a recovery will begin in 2010. He does not see a depression, which is what I have been stating for over a year now. I read his book. I figured if I was going to try to understand this mess, I was going to read the book of an expert on the Great Depression.
(*note*- Based on Chairman Bernanke's panic theory, if the banking crisis did in fact peak in October of 2008, a recovery should start twelve months later; which is October 2009. I am assuming if the banking crisis is stabilized and no other hiccups come along.) I read his book. It was above my head, since my degree is in Behavioral Science; but I did the best I could. I am trying my best to understand this crisis because these past twenty-four months were hellacious. They were so bad that at times I was mad at Chairman Bernanke when I was reading his book, but I think his main obstacle was Congress. Had Congress let Chairman Bernanke run the show and dictate what needed to be done, I think we might have seen a faster recovery. Maybe I am wrong, it is just my opinion. I really want us out of this crisis. I am exhausted. At the same time, I am passionate about my job. I love my job. I enjoy my clients. I want this country back to being happy and prosperous. Please.
Stay tuned...I have more to share. Just another day in the mortgage mess!
China is Worried about US Economy - Just another day in the mortgage mess
China stated Friday it is worried about the US economy; and, yet, our Economic Chief says he is not sure when a recovery will start. Does this seem like "common sense" to you? If I was underwriting a loan for an owner of a business, and he stated he is not sure when a recovery will start with his business, but he wants to borrow a million dollars; I would be worried whether or not he could make good on the loan. I am not going to look at the strength of his employees because if they quit this negatively affects the company's bottom line. Right now, China is the underwriter of the United States; and the United States employees (businesses) are going out of business, which is a further expense to this country. If I was China, I would be worried about the US economy because this Administration has yet to deliver a strong financial package. This Administration has to deliver a blueprint on how to fix this mess to our underwriter, China, to eradicate any worries about the strength of the US. The United States cannot delay this any further, it has to get a plan in place now.
Moreover, what I do not understand is if a bank receives bailout monies for a billion dollars, and it has a billion dollars in bad assets, why not use my "Sleepy Loan" lien idea and payoff the debtors by modifying borrowers first mortgages and placing a "sleepy second" in second position at 3% interest, therefore protecting taxpayer money? I spoke with a retired Private Banker, and he said this could free-up the Securitization market, which is what we need in order to free the credit markets. In addition to this, the borrower never pays on this second; it is paid off when he/she sells the property, pays it in full, and/or refinances it in three years.
Furthermore, President Obama's housing plan only puts $2,000 back into homeowners pockets annually. The "Sleepy Loan" lien could put over a $1,500/month back into the homeowner's pocket(depending on loan size), which is an instant stimulus package to the US economy and Americans. That is $18,000 annually back into the US economy x 4 million homeowners. This is the shot this country needs, in my opinion. This plan could cover more than the nine million homeowners that President Obama's plan covers currently. This plan could help jumbo loan borrowers it seems. If you do this with four million homeowners, you have just boosted this economy without spending additional money. If you do this with ten> million homeowners, you have just given Americans the bigger housing plan they are seeking. In addition, the taxpayers make interest on the bailout funds.
I am not an economic nor a monetary policy expert, this just seems like common sense. Even Chairman Bernanke stated, what goes in must come out equally. I am not seeing the "equally" portion in this banking crisis right now.
Please continue to unite with me, and vote for my "Sleepy Loan" lien idea. We have to create jobs for Americans. Americans are amazing and caring human beings; we do not deserve this; we do not deserve $2 trillion in debt; we deserve happiness and prosperity. Please unite with me.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Moreover, what I do not understand is if a bank receives bailout monies for a billion dollars, and it has a billion dollars in bad assets, why not use my "Sleepy Loan" lien idea and payoff the debtors by modifying borrowers first mortgages and placing a "sleepy second" in second position at 3% interest, therefore protecting taxpayer money? I spoke with a retired Private Banker, and he said this could free-up the Securitization market, which is what we need in order to free the credit markets. In addition to this, the borrower never pays on this second; it is paid off when he/she sells the property, pays it in full, and/or refinances it in three years.
Furthermore, President Obama's housing plan only puts $2,000 back into homeowners pockets annually. The "Sleepy Loan" lien could put over a $1,500/month back into the homeowner's pocket(depending on loan size), which is an instant stimulus package to the US economy and Americans. That is $18,000 annually back into the US economy x 4 million homeowners. This is the shot this country needs, in my opinion. This plan could cover more than the nine million homeowners that President Obama's plan covers currently. This plan could help jumbo loan borrowers it seems. If you do this with four million homeowners, you have just boosted this economy without spending additional money. If you do this with ten> million homeowners, you have just given Americans the bigger housing plan they are seeking. In addition, the taxpayers make interest on the bailout funds.
I am not an economic nor a monetary policy expert, this just seems like common sense. Even Chairman Bernanke stated, what goes in must come out equally. I am not seeing the "equally" portion in this banking crisis right now.
Please continue to unite with me, and vote for my "Sleepy Loan" lien idea. We have to create jobs for Americans. Americans are amazing and caring human beings; we do not deserve this; we do not deserve $2 trillion in debt; we deserve happiness and prosperity. Please unite with me.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Saturday, March 14, 2009
Treasury Secretary Geithner Speaking at the G-20 Today - Just another day in the mortgage mess
Treasury Sectretary Geithner stated today, "the stronger the response, the quicker the recovery". He also stated, "full force of government is required to make sure banks meet their needs to function". He said, "there must be stronger oversight and clear rules of the game". Treasury Secretary Geithner stated a comprehensive regulatory plan is being released soon. He stated, "Our recovery will be stronger if world stronger".
Afterwards, Treasury Secretary Geithner stated in an interview, that direct lending is in place to get securitization markets moving, and housing. He said, "there is some signs of a housing recovery already". Even Treasury Secretary Geithner said, "we have to get credit flowing again; we need to fix this".
In addition, this morning, President Obama held a Press Conference with President Lula, the President of Brazil. President Lula stated it brilliantly, "The truth is, money has vanished. If we don't make money flow, the crisis in our country (Brazil) could deepen".
After spending twenty-four months in this gruelling financial crisis, it seems logical to request a Banking/financial category to be added to President Obama's Pledge for his economic plan. Especially in our ever-changing environment, money invested in 'protecting' the banking/financial markets from ever experiencing this again, is forward-thinking in my opinion. It seems logical to create jobs in this category so future generations never experience what we are going through right now.
$2,000,000,000,000 is a lot of money. P.S. - In addition to this, I saw on Fox News that Congress gave themselves a $4,700 raise this year. What is the difference between Congress giving themselves a raise in the worst economic recession in US History, and Merrill Lynch giving its employees bonuses when its company was not profitable. Congress should only get raises when our country is performing, united, and prosperous. What were they thinking? If hypocrisy exists within our government, it is giving permission for it to exist in society.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Afterwards, Treasury Secretary Geithner stated in an interview, that direct lending is in place to get securitization markets moving, and housing. He said, "there is some signs of a housing recovery already". Even Treasury Secretary Geithner said, "we have to get credit flowing again; we need to fix this".
In addition, this morning, President Obama held a Press Conference with President Lula, the President of Brazil. President Lula stated it brilliantly, "The truth is, money has vanished. If we don't make money flow, the crisis in our country (Brazil) could deepen".
After spending twenty-four months in this gruelling financial crisis, it seems logical to request a Banking/financial category to be added to President Obama's Pledge for his economic plan. Especially in our ever-changing environment, money invested in 'protecting' the banking/financial markets from ever experiencing this again, is forward-thinking in my opinion. It seems logical to create jobs in this category so future generations never experience what we are going through right now.
$2,000,000,000,000 is a lot of money. P.S. - In addition to this, I saw on Fox News that Congress gave themselves a $4,700 raise this year. What is the difference between Congress giving themselves a raise in the worst economic recession in US History, and Merrill Lynch giving its employees bonuses when its company was not profitable. Congress should only get raises when our country is performing, united, and prosperous. What were they thinking? If hypocrisy exists within our government, it is giving permission for it to exist in society.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Friday, March 13, 2009
President Obama's "Pledge for Support" - Just another day in the mortgage mess
Today, I received a "generic" email addressed to anyone who provided their email address during the campaign or afterwards, from David Plouffe asking everyone to pledge their support for "the economic vision President Obama has outlined in his budget".
Attention President Obama if you want to know why so many Americans' are frustrated, here is why:
Mr. President, you are asking for us to pledge support for your economic vision, but when you go to the link, http://my.barackobama.com/page/content/pledgeproject here is what it states:
President Obama's plan will rebuild and renew America by creating jobs and investing in the three areas most critical to our future:
Energy — Transforming America's economy to run on clean and renewable energy in order to create new American jobs and industries
Health care — Comprehensively reforming health care so that families, businesses, and government are relieved from the crushing costs that impede economic growth and prosperity
Education — Reforming and investing in America's education system so that citizens are prepared to compete in a global economy
Where is BANKING/FINANCIAL PLAN on this list, the category of upmost importance right now? Nothing about this pledge clearly defines how you are going to fix the banking environment! To not include Banks as a category on the Pledge continues to show Americans how out of tune you are with this economic mess. Without stability in the banking system, there is NOT going to be stability brought to this economy. Chairman Bernanke has stated this numerous times in his testimonies. The backbone of this country is the financial system.
I am not signing this pledge because you have not given Americans a clear cut plan on how you are going to fix the financial backbone of this country. Not even Treasury Secretary Geithner has given us a plan.
It's as if you are trying to build a house on top of wetlands and "marshes". You do not seem to get it! There are not going to be long-lasting jobs created unless there is money and credit flowing at the same time; therefore, giving Americans and businesses a solid ground to stand on again.
You must think Americans are idiots to ask us to sign this Pledge without a "banking" plan. This is heartbreaking. I am not signing your Pledge until you include a "banking/financial" plan on this list, acknowledging that this is part of your economic plan. Warren Buffett laid out the plan perfectly:
Job #1: Economic War
Job #2: Economic War
Job #3: Economic War
This should be the Pledge you are sending to Americans. You do not seem to get it!
I am going to ask everyone to not sign this Pledge, until it includes a banking/financial plan that strengthens the financial backbone of this country once again.
This country needs unity; it needs confidence; it needs clarity; it needs a financial backbone. Without this, we are not strong as a nation. I hope people unite with me.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Attention President Obama if you want to know why so many Americans' are frustrated, here is why:
Mr. President, you are asking for us to pledge support for your economic vision, but when you go to the link, http://my.barackobama.com/page/content/pledgeproject here is what it states:
President Obama's plan will rebuild and renew America by creating jobs and investing in the three areas most critical to our future:
Energy — Transforming America's economy to run on clean and renewable energy in order to create new American jobs and industries
Health care — Comprehensively reforming health care so that families, businesses, and government are relieved from the crushing costs that impede economic growth and prosperity
Education — Reforming and investing in America's education system so that citizens are prepared to compete in a global economy
Where is BANKING/FINANCIAL PLAN on this list, the category of upmost importance right now? Nothing about this pledge clearly defines how you are going to fix the banking environment! To not include Banks as a category on the Pledge continues to show Americans how out of tune you are with this economic mess. Without stability in the banking system, there is NOT going to be stability brought to this economy. Chairman Bernanke has stated this numerous times in his testimonies. The backbone of this country is the financial system.
I am not signing this pledge because you have not given Americans a clear cut plan on how you are going to fix the financial backbone of this country. Not even Treasury Secretary Geithner has given us a plan.
It's as if you are trying to build a house on top of wetlands and "marshes". You do not seem to get it! There are not going to be long-lasting jobs created unless there is money and credit flowing at the same time; therefore, giving Americans and businesses a solid ground to stand on again.
You must think Americans are idiots to ask us to sign this Pledge without a "banking" plan. This is heartbreaking. I am not signing your Pledge until you include a "banking/financial" plan on this list, acknowledging that this is part of your economic plan. Warren Buffett laid out the plan perfectly:
Job #1: Economic War
Job #2: Economic War
Job #3: Economic War
This should be the Pledge you are sending to Americans. You do not seem to get it!
I am going to ask everyone to not sign this Pledge, until it includes a banking/financial plan that strengthens the financial backbone of this country once again.
This country needs unity; it needs confidence; it needs clarity; it needs a financial backbone. Without this, we are not strong as a nation. I hope people unite with me.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Thursday, March 12, 2009
Listen Up - Chairman Bernanke's First Public Interview - Just another day in the mortgage mess
Chairman Bernanke is doing his first public interview this coming Sunday, on 60 Minutes. He is going to discuss the economy. This is the first interview in 20 years with a sitting Federal Reserve Chairman. What a great opportunity for all of us. He is going to explain what he thinks happened and caused this financial crisis.
I hope everyone in this nation tunes in. Fed Chairman Bernanke has been a champion in this financial crisis! When he speaks, it is with clarity, confidence, and hope. He is brilliant!
Stay tuned...I have more to share. Just another day in the mortgage mess!
I hope everyone in this nation tunes in. Fed Chairman Bernanke has been a champion in this financial crisis! When he speaks, it is with clarity, confidence, and hope. He is brilliant!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Economist Rate President Obama an "F" - Just another day in the mortgage mess
I am not quite sure how anyone could rate President Obama an "F" this soon. As far as I am concerned, most Economists called this mess incorrectly going all the way back to 2007. Therefore, it is not President Obama who deserves the "F" here; it is all the Economists who called this financial meltdown incorrectly who deserve the "F". To give him an "F" today was premature in my opinion.
As FDR stated to citizens back in the Great Depression, "Do not get stampeded by rumors or guesses".
I just want us out of this financial crisis now; and rating President Obama is not going to get Americans employed again. We have to believe that a recovery is on its way.
Stay tuned...I have more to share. Just another day in the mortgage mess!
As FDR stated to citizens back in the Great Depression, "Do not get stampeded by rumors or guesses".
I just want us out of this financial crisis now; and rating President Obama is not going to get Americans employed again. We have to believe that a recovery is on its way.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Wednesday, March 11, 2009
Jamie Dimon Speaks to Chamber of Commerce - Just another day in the mortgage mess
Today, Jamie Dimon spoke in front of the Chamber of Commerce. He said, "mortgage brokers have pretty much been wiped out".
I am not sure why he believes mortgage brokers were the culprit. Mortgage brokers were not the culprit to this financial mess. This financial crisis was not that simple. Secondly, brokers work just like in-house Loan Officers. If the bank offered stated income as JP Morgan/Chase did, then both JP Morgan Loan Officers and mortgage brokers offered the client the same products. Without mortgage brokers there is not any competition, which means 'you' as the consumer will not get the best rate available. Eliminating mortgage brokers is a disservice to clients. Mortgage banks, like the one who bought the company I worked for, were the problem.
Secondly, Option Arms are not the culprit either. Option Arms are not bad loans as Mr. Dimon believes them to be. He seems to believe these loans were not regulated, which is farthest from the truth, this is 'false'. Back in the 1980s, Alan Greenspan placed new regulations on these products. Option Arms have been around for nearly three decades, and have offered clients some of the best interest rates in the industry; and I am not talking about the "so called" start rate. Back in the 1980s, Option Arm loans did not have lifetime caps and monthly caps, so customers could go from a 2% start rate up to 17% the following month; which forced many into foreclosure. Alan Greenspan came into office, as the Fed Chairman, and placed lifetime caps and periodic adjustments on these products. Both Washington Mutual and Countrywide had some of the best Option Arm products in the industry, but what they did not regulate was human behavior. If you drape a $10,000 carrot in front of someone who is either uneducated or immoral, they are going to most likely take the $10,000 commissions.
Mr. Dimon does not appear to be informed on this product. I have clients who had low loan to values and high ficos who are sitting at a 3.0% interest rate today on a $1,000,000 loan. Now to me, that is far better than the 6% rate being offered to borrowers with a $1,000,000 loan. Would you agree? This loan had a lifetime cap of 9.95%. The highest the index peaked over the past twenty years was 6%, and it typically stayed high for six to nine months before dropping again. This loan is ideal for those who are self-employed, 100% commission, and/or high networth. In addition, people were coming into this business who had no right being in this business. Many lacked training, morals, colledge degrees, and/or experience when entering into this industry over the past six years. In addition to this, many worked for mortgage banks where they did not have to carry a real estate license for example the state of California requires Loan Officers to be licensed when working under a mortgage broker, but not when working under a mortgage banker. If Mr. Dimon would research his facts he might discover this to be the case. Many of the Option Arm products along with five year fixed products were exploited and sold for the wrong reasons.
In other words, Loan Officers working for mortgage banks never had to disclose the rebate (which is the commission paid to the Loan Officer from the bank); therefore, Loan Officers working for mortgage banks could charge the customer one point and make an additional one point from the bank without disclosing it to the customer. This Loan Officer just made two points, and the customer never realized they overpaid.
Example:
$500,000 @ 6% with 1 point (Loan Officer w/mortgage bank recieves 1 point from bank)
$500,000 @ 5.75% with 1 point (Loan Officer does not get a rebate)- this is par pricing.
The borrower who took the 6% rate with 1 point overpaid without knowing it. On an Option Arm what this meant is the borrower took a 3% margin instead of a 2.5% margin, so when the rates peaked this borrower was at 9% interest (3% margin plus the index, the index peaked at 6%). On the contrary, borrowers who took the 2.5% margin were at 8.5% interest. Mortgage brokers were NOT the culprit as Mr. Dimon believes. To scapegoat mortgage brokers for this financial mess is not right.
Option Arm loans are not evil as Mr. Dimon has made them out to be. Immoral Loan Officers abusing this product were evil and the culprit in this crisis, in my opinion. No one regulated human behavior. You might ask how would one do this? How can you regulate "greed"? Here's the answer: You put "common sense" regulations in place.
Furthermore, eliminating this product was a disservice to consumers because when rates peak, these rates go up to 8% for 6 months or so, then they go back down. When they drop, they can drop (and have dropped) down to 3%. On the contrary, when 30 year fixed rates rise, the Option Arm was usually lower, so it is a disservice to homeowners to eliminate this product. Five year fixed rates means future commissions in a Loan Officer's pocket because customers will have to refinance or sell the home. Why do this, if an Option Arm you can keep for the life of the loan?
It is amazing that so many people are still uneducated in this industry when it comes to option arm loans. It is so frustrating to hear this, especially when I have clients today who are sitting at 3% interest on a $1,000,000. Had I put them in a five year fixed, three years ago, they would have had to refinance their loan today and without any equity they would have been stuck modifying. All Washington Mutual, Countrywide, Golden West had to do was increase the start rate from 1% to 4% to avoid or lower the risk of negative amortization.
Mr. Dimon does not appear to be fully informed on this product. I say this as a Professional who has been selling this product for 13 years and I was formally trained on Option Arms with a major FDIC bank.
In addition, JP Morgan/Chase was just as aggressive as other lenders when it came to stated income loans, before this crisis happened. Mortgage brokers followed his bank and other banks guidelines; where as mortgage banks did their own orginating, underwriting, funding, and wiring. Banks dictated the guidelines to mortgage brokers and in-house Loan Officers. He seems to be calling the kettle black because it is not just Option Arms that put people in trouble, it was the five year fixed that would increase 5% after the fifth year that prevented people from affording their payments. A product that JP Morgan/Chase sold as well as other institutions.
Stay tuned...I have more to share. Just another day in the mortgage mess!
I am not sure why he believes mortgage brokers were the culprit. Mortgage brokers were not the culprit to this financial mess. This financial crisis was not that simple. Secondly, brokers work just like in-house Loan Officers. If the bank offered stated income as JP Morgan/Chase did, then both JP Morgan Loan Officers and mortgage brokers offered the client the same products. Without mortgage brokers there is not any competition, which means 'you' as the consumer will not get the best rate available. Eliminating mortgage brokers is a disservice to clients. Mortgage banks, like the one who bought the company I worked for, were the problem.
Secondly, Option Arms are not the culprit either. Option Arms are not bad loans as Mr. Dimon believes them to be. He seems to believe these loans were not regulated, which is farthest from the truth, this is 'false'. Back in the 1980s, Alan Greenspan placed new regulations on these products. Option Arms have been around for nearly three decades, and have offered clients some of the best interest rates in the industry; and I am not talking about the "so called" start rate. Back in the 1980s, Option Arm loans did not have lifetime caps and monthly caps, so customers could go from a 2% start rate up to 17% the following month; which forced many into foreclosure. Alan Greenspan came into office, as the Fed Chairman, and placed lifetime caps and periodic adjustments on these products. Both Washington Mutual and Countrywide had some of the best Option Arm products in the industry, but what they did not regulate was human behavior. If you drape a $10,000 carrot in front of someone who is either uneducated or immoral, they are going to most likely take the $10,000 commissions.
Mr. Dimon does not appear to be informed on this product. I have clients who had low loan to values and high ficos who are sitting at a 3.0% interest rate today on a $1,000,000 loan. Now to me, that is far better than the 6% rate being offered to borrowers with a $1,000,000 loan. Would you agree? This loan had a lifetime cap of 9.95%. The highest the index peaked over the past twenty years was 6%, and it typically stayed high for six to nine months before dropping again. This loan is ideal for those who are self-employed, 100% commission, and/or high networth. In addition, people were coming into this business who had no right being in this business. Many lacked training, morals, colledge degrees, and/or experience when entering into this industry over the past six years. In addition to this, many worked for mortgage banks where they did not have to carry a real estate license for example the state of California requires Loan Officers to be licensed when working under a mortgage broker, but not when working under a mortgage banker. If Mr. Dimon would research his facts he might discover this to be the case. Many of the Option Arm products along with five year fixed products were exploited and sold for the wrong reasons.
In other words, Loan Officers working for mortgage banks never had to disclose the rebate (which is the commission paid to the Loan Officer from the bank); therefore, Loan Officers working for mortgage banks could charge the customer one point and make an additional one point from the bank without disclosing it to the customer. This Loan Officer just made two points, and the customer never realized they overpaid.
Example:
$500,000 @ 6% with 1 point (Loan Officer w/mortgage bank recieves 1 point from bank)
$500,000 @ 5.75% with 1 point (Loan Officer does not get a rebate)- this is par pricing.
The borrower who took the 6% rate with 1 point overpaid without knowing it. On an Option Arm what this meant is the borrower took a 3% margin instead of a 2.5% margin, so when the rates peaked this borrower was at 9% interest (3% margin plus the index, the index peaked at 6%). On the contrary, borrowers who took the 2.5% margin were at 8.5% interest. Mortgage brokers were NOT the culprit as Mr. Dimon believes. To scapegoat mortgage brokers for this financial mess is not right.
Option Arm loans are not evil as Mr. Dimon has made them out to be. Immoral Loan Officers abusing this product were evil and the culprit in this crisis, in my opinion. No one regulated human behavior. You might ask how would one do this? How can you regulate "greed"? Here's the answer: You put "common sense" regulations in place.
Furthermore, eliminating this product was a disservice to consumers because when rates peak, these rates go up to 8% for 6 months or so, then they go back down. When they drop, they can drop (and have dropped) down to 3%. On the contrary, when 30 year fixed rates rise, the Option Arm was usually lower, so it is a disservice to homeowners to eliminate this product. Five year fixed rates means future commissions in a Loan Officer's pocket because customers will have to refinance or sell the home. Why do this, if an Option Arm you can keep for the life of the loan?
It is amazing that so many people are still uneducated in this industry when it comes to option arm loans. It is so frustrating to hear this, especially when I have clients today who are sitting at 3% interest on a $1,000,000. Had I put them in a five year fixed, three years ago, they would have had to refinance their loan today and without any equity they would have been stuck modifying. All Washington Mutual, Countrywide, Golden West had to do was increase the start rate from 1% to 4% to avoid or lower the risk of negative amortization.
Mr. Dimon does not appear to be fully informed on this product. I say this as a Professional who has been selling this product for 13 years and I was formally trained on Option Arms with a major FDIC bank.
In addition, JP Morgan/Chase was just as aggressive as other lenders when it came to stated income loans, before this crisis happened. Mortgage brokers followed his bank and other banks guidelines; where as mortgage banks did their own orginating, underwriting, funding, and wiring. Banks dictated the guidelines to mortgage brokers and in-house Loan Officers. He seems to be calling the kettle black because it is not just Option Arms that put people in trouble, it was the five year fixed that would increase 5% after the fifth year that prevented people from affording their payments. A product that JP Morgan/Chase sold as well as other institutions.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Monday, March 9, 2009
The Federal Reserve Responded to My Email from Last Week - Just another day in the mortgage mess
The Federal Reserve sent me the following response to my email I sent to Chairman Bernanke on March 3. It is very nice, so I thought I would share. (Note: They must think men are the only ones who share an interest on monetary policy because in my email they addressed me as "Mr.". Oh well, but you know what is interesting, out of all the banks that have failed, how many were run by women? Just some interesting trivia.)
-----Original Message-----
From: CCS E-mail
Sent: Monday, March 09, 2009 1:19 PM
To: Heather
Subject: Response to your e-mail concerning: Chairman Bernanke - revision
Thank you for your recent correspondence to Chairman Bernanke. Your encouragement means a great deal to him.
It isn't often that we receive a letter such as yours. I want to acknowledge it and offer our thanks for your kind words and support.
In light of your comments and your interest in monetary policy, you may wish to read the Board's "Monetary Policy Objectives," which includes Chairman Bernanke's accompanying testimony with his observations on the economy. It is available at federalreserve.gov/boarddocs/hh.
You were thoughtful to take the time to write.
Sincerely,
JPD
Board Staff
After receiving this email, I began to read parts of the policy. I will finish reading it in the next day or so. In the time being, here is some helpful information from the Board's "Monetary Policy Objectives", federalreserve.gov/boarddocs/hh
Here are some examples of what it states in the "Outlook" starting on page 39:
1. "Participant expected that the economy would begin to recover-albeit gradually—during the second half of the year, mainly reflecting the effects of fiscal stimulus and of Federal Reserve measures providing support to credit markets..."
2. "Looking further ahead, participants’ growth projections had a central tendency of 2.5 to 3.3 percent for 2010 and 3.8 to 5.0 percent for 2011..."
3. "real GDP growth would gain further momentum in 2011..."
4. "Most participants expected that, absent further shocks, economic growth would eventually converge to a rate of 2.5 to 2.7 percent, reflecting longer-term trends in the growth of productivity and the labor force..."
5. "Participants anticipated that labor market conditions would deteriorate substantially further over the course of this year, and nearly all expected that unemployment would still be well above its longer-run sustainable rate at the end of 2011..."
In my opinion, climbing unemployment was to be expected considering it took nineteen months for the government to respond to what I declared as a "state of emergency", back in March 2007.
Nevertheless, we have to believe in America by uniting together and rebuilding this country together. Please continue to join my tea party and vote for my "Sleepy Loan" lien idea; maybe someone will eventually listen because I really don't believe President Obama's housing plan is large enough. No matter how hard they are trying, it has to cover more homeowners without it being at the expense of taxpayers, in my opinion.
Stay tuned...I have more to share. Just another day in the mortgage mess!
-----Original Message-----
From: CCS E-mail
Sent: Monday, March 09, 2009 1:19 PM
To: Heather
Subject: Response to your e-mail concerning: Chairman Bernanke - revision
Thank you for your recent correspondence to Chairman Bernanke. Your encouragement means a great deal to him.
It isn't often that we receive a letter such as yours. I want to acknowledge it and offer our thanks for your kind words and support.
In light of your comments and your interest in monetary policy, you may wish to read the Board's "Monetary Policy Objectives," which includes Chairman Bernanke's accompanying testimony with his observations on the economy. It is available at federalreserve.gov/boarddocs/hh.
You were thoughtful to take the time to write.
Sincerely,
JPD
Board Staff
After receiving this email, I began to read parts of the policy. I will finish reading it in the next day or so. In the time being, here is some helpful information from the Board's "Monetary Policy Objectives", federalreserve.gov/boarddocs/hh
Here are some examples of what it states in the "Outlook" starting on page 39:
1. "Participant expected that the economy would begin to recover-albeit gradually—during the second half of the year, mainly reflecting the effects of fiscal stimulus and of Federal Reserve measures providing support to credit markets..."
2. "Looking further ahead, participants’ growth projections had a central tendency of 2.5 to 3.3 percent for 2010 and 3.8 to 5.0 percent for 2011..."
3. "real GDP growth would gain further momentum in 2011..."
4. "Most participants expected that, absent further shocks, economic growth would eventually converge to a rate of 2.5 to 2.7 percent, reflecting longer-term trends in the growth of productivity and the labor force..."
5. "Participants anticipated that labor market conditions would deteriorate substantially further over the course of this year, and nearly all expected that unemployment would still be well above its longer-run sustainable rate at the end of 2011..."
In my opinion, climbing unemployment was to be expected considering it took nineteen months for the government to respond to what I declared as a "state of emergency", back in March 2007.
Nevertheless, we have to believe in America by uniting together and rebuilding this country together. Please continue to join my tea party and vote for my "Sleepy Loan" lien idea; maybe someone will eventually listen because I really don't believe President Obama's housing plan is large enough. No matter how hard they are trying, it has to cover more homeowners without it being at the expense of taxpayers, in my opinion.
Stay tuned...I have more to share. Just another day in the mortgage mess!
President Obama's Team Responds to Warren Buffetts Comments - Just another day in the mortgage mess
Wow, it took Warren Buffett's comments this morning to get the President's team to listen! President Obama's team is responding to the criticism later today.
Thank you Mr. Buffett!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Thank you Mr. Buffett!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Bingo! - Just another day in the mortgage mess
Warren Buffett stated on CNBC today, "You cannot expect people to unite with you, if you are jamming a bunch of things down their throat".
He also stated:
Job #1: Economic War
Job #2: Economic War
Job #3: Economic War
Mr. Buffett said it perfectly! I had stated on my blog a couple of weeks ago regarding President Obama, "I am getting nervous with your ways. Good change comes slowly. Your changes are coming at us so quickly that it is overwhelming. It might be too much, too fast. Scared people will panic, run, and not trust." President Obama is going to alienate himself from the American people, if he is not careful.
Now, let's hope President Obama heard Mr. Buffett...One can hope!
Stay tuned...I have more to share. Just another day in the mortgage mess!
He also stated:
Job #1: Economic War
Job #2: Economic War
Job #3: Economic War
Mr. Buffett said it perfectly! I had stated on my blog a couple of weeks ago regarding President Obama, "I am getting nervous with your ways. Good change comes slowly. Your changes are coming at us so quickly that it is overwhelming. It might be too much, too fast. Scared people will panic, run, and not trust." President Obama is going to alienate himself from the American people, if he is not careful.
Now, let's hope President Obama heard Mr. Buffett...One can hope!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Saturday, March 7, 2009
Sixteen more letters sent - Just another day in the mortgage mess
Today, I sent out 16 more certified letters to those I hope will support my cause and help me get my "sleepy loan" lien added as a provision to President Obama's housing plan. I am not quitting no matter how exhausting it is to get these organizations to listen.
On the contrary, I have also learned over the years that a true leader leads with compassion, empathy, confidence, determination, knowledge, and furthermore guides people with motivation & inspiration without fear. A true leader does not lose sight of his/her mission statement by getting lost in the despair or negativity surrounding him/her.
Therefore, it is my opinion, responsible homeowners deserve to be helped; investors who lost billions/trillions on failed banks, that did subprime, deserve to be reimbursed by this government; people who lost their jobs deserve to get help; people who lost income/homes/savings because of a crooked owner of a mortgage bank deserve to be reimbursed. Yet, we are not getting reimbursed.
Nevertheless, President Obama's housing plan has a provision that pays $1,000/year as an incentive to homeowners who keep their mortgage current after a loan modification. For example, if 4 million homeowners modify their loans, the government is going to pay out $4 billion per year to these homeowners to keep their loans current. As Chairman Bernanke stated awhile back, "What goes in must go out equally". How is this equal?
I hope these homeowners do not cash the $1,000 check, therefore, protecting the future of this nation's children. For once, I hope people do the right thing, and pay their mortgage on time. I hope they take personal responsibility for what they own. This is called "pride in ownership". The question I have is how is this $1,000 not a form of social welfare? This $1,000 is equivalent to some families receiving food stamps annually. It is a sad day in America when our government has to pay Americans to pay their mortgage on time.
Always remember something our parents said when we were kids, "Nothing comes for free in life". Beware!
Stay tuned...I have more to share. Just another day in the mortgage mess!
On the contrary, I have also learned over the years that a true leader leads with compassion, empathy, confidence, determination, knowledge, and furthermore guides people with motivation & inspiration without fear. A true leader does not lose sight of his/her mission statement by getting lost in the despair or negativity surrounding him/her.
Therefore, it is my opinion, responsible homeowners deserve to be helped; investors who lost billions/trillions on failed banks, that did subprime, deserve to be reimbursed by this government; people who lost their jobs deserve to get help; people who lost income/homes/savings because of a crooked owner of a mortgage bank deserve to be reimbursed. Yet, we are not getting reimbursed.
Nevertheless, President Obama's housing plan has a provision that pays $1,000/year as an incentive to homeowners who keep their mortgage current after a loan modification. For example, if 4 million homeowners modify their loans, the government is going to pay out $4 billion per year to these homeowners to keep their loans current. As Chairman Bernanke stated awhile back, "What goes in must go out equally". How is this equal?
I hope these homeowners do not cash the $1,000 check, therefore, protecting the future of this nation's children. For once, I hope people do the right thing, and pay their mortgage on time. I hope they take personal responsibility for what they own. This is called "pride in ownership". The question I have is how is this $1,000 not a form of social welfare? This $1,000 is equivalent to some families receiving food stamps annually. It is a sad day in America when our government has to pay Americans to pay their mortgage on time.
Always remember something our parents said when we were kids, "Nothing comes for free in life". Beware!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Friday, March 6, 2009
Rush Limbaugh, Hannity Show, and Larry King - Just another day in the mortgage mess
I sent an email to Mr. Limbaugh, Hannity show, Larry King to see if they could help get my "sleepy loan" lien idea out to the public and to Politicians directly involved in President Obama's housing plan. I hope they will help.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Have Faith - Just another day in the mortgage mess
Unemployment met expectations today; it hit its highest level in the month of February since the 1990s. No surprise! This was what President Obama meant when he said things would get worse, before getting better according to Christine Romie, White House Council of Economic Advisor Chair. She stated today, We knew this was going to happen. It will get better. We fully expect a turnaround. We have to power through this very painful period.
'Painful' is an understatement. These past twenty-four months have been downright brutal. The system left investors, businesses, foreigners, President Bush, former Treasury Secretary Paulson, Congress, the Federal Reserve, and yes, even Warren Buffet so far behind the eight-ball. This should have never happened. The FBI gave warning years ago, and apparently, it went on deaf ears. Not even Victims of Crime recognized mortgage fraud as a crime. When I submitted my paperwork telling them what happened to me (the FBI shut down the company I worked for, costing me $48,000), they sent me my paperwork back stating, "We do not recognize mortgage fraud as a crime". In addition, I called the California Department of Real Estate and made them aware of what was going on with mortgage banks, back in 2005. Our leaders knew and, yet, did nothing to protect us!
The panic and fear we are seeing now, is because so many were left behind the eight-ball twenty-four months ago and, for some, even longer. The expectations were not correct in March 2007, therefore, setting many up for the worst fall ever, and all because of a lack of oversight. This market was predictable and, yet, none of our leaders and regulators did anything to protect us. This was just wrong. Lives have been ruined; careers ruined; and life savings wiped out; and no one at the top held accountable. It was as if they all got their heads cut off in March 2007, and because of this guided us blindly. What were they thinking? The only one who has been trying to guide us in the right direction was Fed Chairman Bernanke. He went to Congress over a year ago stating the sense of urgency; and all Senator Dodd could say to him was that he was not going to spend billions like they did in the Savings and Loan crisis. Wake-up call Senator Dodd, it is now trillions of dollars we have spent on this crash! The stubborness in our Leaders in 2007, is what cost many their jobs, life savings, and for some even their lives. This was the saddest moment of America.
On that, I want to end this blog entry with something Prime Minister Brown stated the other day that I hope all Americans learn. “We conquer our fear of the future through our faith in the future”.
Have faith!
Stay tuned...I have more to share. Just another day in the mortgage mess!
'Painful' is an understatement. These past twenty-four months have been downright brutal. The system left investors, businesses, foreigners, President Bush, former Treasury Secretary Paulson, Congress, the Federal Reserve, and yes, even Warren Buffet so far behind the eight-ball. This should have never happened. The FBI gave warning years ago, and apparently, it went on deaf ears. Not even Victims of Crime recognized mortgage fraud as a crime. When I submitted my paperwork telling them what happened to me (the FBI shut down the company I worked for, costing me $48,000), they sent me my paperwork back stating, "We do not recognize mortgage fraud as a crime". In addition, I called the California Department of Real Estate and made them aware of what was going on with mortgage banks, back in 2005. Our leaders knew and, yet, did nothing to protect us!
The panic and fear we are seeing now, is because so many were left behind the eight-ball twenty-four months ago and, for some, even longer. The expectations were not correct in March 2007, therefore, setting many up for the worst fall ever, and all because of a lack of oversight. This market was predictable and, yet, none of our leaders and regulators did anything to protect us. This was just wrong. Lives have been ruined; careers ruined; and life savings wiped out; and no one at the top held accountable. It was as if they all got their heads cut off in March 2007, and because of this guided us blindly. What were they thinking? The only one who has been trying to guide us in the right direction was Fed Chairman Bernanke. He went to Congress over a year ago stating the sense of urgency; and all Senator Dodd could say to him was that he was not going to spend billions like they did in the Savings and Loan crisis. Wake-up call Senator Dodd, it is now trillions of dollars we have spent on this crash! The stubborness in our Leaders in 2007, is what cost many their jobs, life savings, and for some even their lives. This was the saddest moment of America.
On that, I want to end this blog entry with something Prime Minister Brown stated the other day that I hope all Americans learn. “We conquer our fear of the future through our faith in the future”.
Have faith!
Stay tuned...I have more to share. Just another day in the mortgage mess!
Thursday, March 5, 2009
Testimony Chairman Ben S. Bernanke - Just another day in the mortgage mess
Chairman Ben S. Bernanke
Current economic and financial conditions and the federal budget
Before the Committee on the Budget, U.S. Senate, Washington, D.C.
March 3, 2009
Very informative for those who do not understand or follow the Federal Reserve.
http://www.federalreserve.gov/newsevents/testimony/bernanke20090303a.htm
Stay tuned...I have more to share. Just another day in the mortgage mess.
Current economic and financial conditions and the federal budget
Before the Committee on the Budget, U.S. Senate, Washington, D.C.
March 3, 2009
Very informative for those who do not understand or follow the Federal Reserve.
http://www.federalreserve.gov/newsevents/testimony/bernanke20090303a.htm
Stay tuned...I have more to share. Just another day in the mortgage mess.
A "Common Sense" Rule for Assessing the Economy - Just another day in the mortgage mess
I read the Press Release on the OTS (Office of Thrift Supervision) titled, "Agencies to Begin Forward-Looking Economic Assessments". The first sentence of the article states, “The federal bank regulatory agencies announced today that they will start conducting forward-looking economic assessments of large U.S. banking organizations as the Capital Assistance Program (CAP) gets under way." It also stated, "Supervisors will work with institutions to estimate the range of possible future losses and the resources to absorb such losses over a two-year period."
http://www.ots.treas.gov/?p=PressReleases&ContentRecord_id=aebfc88a-1e0b-8562-eb4d-73ff110ccce1&ContentType_id=4c12f337-b5b6-4c87-b45c-838958422bf3
My only question: Why did the government and Regulators not implement this after the Savings and Loan Crisis, therefore protecting us all from this financial crisis? This would have been a "common sense" rule.
Stay tuned...I have more to share. Just another day in the mortgage mess!
http://www.ots.treas.gov/?p=PressReleases&ContentRecord_id=aebfc88a-1e0b-8562-eb4d-73ff110ccce1&ContentType_id=4c12f337-b5b6-4c87-b45c-838958422bf3
My only question: Why did the government and Regulators not implement this after the Savings and Loan Crisis, therefore protecting us all from this financial crisis? This would have been a "common sense" rule.
Stay tuned...I have more to share. Just another day in the mortgage mess!
Tuesday, March 3, 2009
It Seems Confidence is on the Horizon - Just another day in the mortgage mess
Treasury Secretary Geithner stated today, on Capitol Hill:
1. Taxing wealthy and closing carried loopholes is "tax fairness"
2. 97% of small businesses will see tax relief
3. President Obama's budget plan is an honest assessment of our problems
There was more stated by Treasury Secretary Geithner on Capitol Hill today...
Moreover, today, President Obama stated in his Press Conference with Prime Minister Brown something I liked a lot, "the stock market is like a tracking poll in politics. If you look at it short term, you will get the long-term strategy wrong". He also stated, "profit and earning ratios are at points where buying stocks is potentially right for the long-term". President Obama gave reassurance today it seemed. I liked it when he said, "We are cleaning up this mess..." In addition, he stated, "It's going to get cleaned up".
President Obama was confident, clear, and hopeful. He was strong!
Moreover, Prime Minister Brown stated it is possible to have a global new deal in weeks to come. "Regulations need to be reformed for our times."
Today was great all around it seemed. Today, I feel far more confident. I hope you continue to vote for my "sleepy loan" lien idea and join my "so called" tea party for confidence.
Stay tuned...I have more to share. Just another day in the mortgage mess!
1. Taxing wealthy and closing carried loopholes is "tax fairness"
2. 97% of small businesses will see tax relief
3. President Obama's budget plan is an honest assessment of our problems
There was more stated by Treasury Secretary Geithner on Capitol Hill today...
Moreover, today, President Obama stated in his Press Conference with Prime Minister Brown something I liked a lot, "the stock market is like a tracking poll in politics. If you look at it short term, you will get the long-term strategy wrong". He also stated, "profit and earning ratios are at points where buying stocks is potentially right for the long-term". President Obama gave reassurance today it seemed. I liked it when he said, "We are cleaning up this mess..." In addition, he stated, "It's going to get cleaned up".
President Obama was confident, clear, and hopeful. He was strong!
Moreover, Prime Minister Brown stated it is possible to have a global new deal in weeks to come. "Regulations need to be reformed for our times."
Today was great all around it seemed. Today, I feel far more confident. I hope you continue to vote for my "sleepy loan" lien idea and join my "so called" tea party for confidence.
Stay tuned...I have more to share. Just another day in the mortgage mess!
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