1/12/2023 0 Comments Principal writedown on bondFight For The CFPA Is 'A Dispute Between Families.Barney Frank warns of Fannie, Freddie risks Winter in America: Democracy Gone Rogue.An Unholy Trinity: Congress, The Federal Reserve.Europe bars Wall Street banks from government bond.Android Dominates, Windows Mobile Plummets, iPhone.Watchdog: GMAC bailout could cost taxpayers $6.3B.Mortgage Principal Writedown Won't Save Housing.It’s Going To Implode: Buy Physical Gold - NOW.On Fake Stress Tests and Coming Wave of Second Mor.New round of foreclosures threatens housing market.'Repo 105' at the heart of Lehman report.The $2 Trillion Public Pension Hole and What You C.Senator Kaufman: Fraud Still At The Heart Of Wall.Apple’s Spat With Google Is Getting Personal.Time for Truth: Three Card Monte is for Suckers.Android Market Push Threatens BlackBerry and iPhone.Federal Reserve Must Disclose Bank Bailout Records.Dick Bove: Housing Market Will Fall 10%-15% When F.The Perils Of Leaving Interest Rates Low.Why Fannie Mae, Freddie Mac Continue To Cost US Ta.New York Fed Warehousing Junk Loans On Its Books.States Sue Over Overhaul That Will Bust State Budgets.Behind Consumer Agency Idea, a Tireless Advocate.Mortgage delinquencies rise to nearly 14 percent.South Africa: Provinces Overspend by Billions on H.China set to target Europe's car market (US Next?).South Africa's ANC defends "Kill the Boer" song.Blaming China will not solve America’s problem.Mortgage Principal Writedown Won't Save Housing Bernie Madoff could have created this system," Glaser told me today. This is not a sustainable system for the housing market. I stole that shell game idea from housing consultant Howard Glaser: "We're spending tens of billions of dollars on a tax credit to get people to purchase homes, we're spending federal money to keep them in their homes through the modification program, and now we're going to pay them to move out of their homes. That's why the Obama Administration has created this kind of shell game in the first place. Accounting rules require that banks write down the value of those loans on their books, and experts tell me that if banks really accounted for all the losses in the home loan market, they'd all be insolvent. Home prices have fallen so far in the hardest hit areas, the areas where the bulk of the troubled loans are, that banks would have to write down principal 30 to 50 percent to put borrowers back in the green. I disagree that principal reductions will create truly sustainable mortgages. I agree and disagree with that statement: I agree that temporary modifications (even though the Treasury calls them permanent) are going to keep some borrowers in their homes for a while, but are really just prolonging the agony. In a letter to the CEOs of Bank of America, Wells Fargo, JP Morgan Chase and Citigroup, House Financial Services Committee Chairman Barney Frank wrote, "To save homes on a large scale, we must move past temporary modifications in interest rates or terms and focus on permanent principal reductions that result in truly sustainable mortgages."
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