Treasury Secretary Henry Paulson spoke at the Georgetown University and his remarks are sending shock waves across the country.
“The ongoing housing correction is not ending as quickly as it might have appeared late last year,” Paulson said. “And it now looks like it will continue to adversely impact our economy, our capital markets and many homeowners for some time yet.”
Did I hear loan modifications? I have been saying this for quite some time and I hope that since Paulson came from Wall Street, that means he may have some influence and will be able to coordinate between investors, lenders and servicers to actually get something done.
It will be a massive undertaking and Congress is pushing for non-profits to handle these loan modifications. That’s great but there is no way that non-profits are equipped to handle this massive undertaking. They will need millions for technology, hiring additional personnel, more office locations and clinics. Also they are seriously lacking legal aid attorneys who can assist the victims of predatory lending and give proper legal advice.
Hundreds of millions will be need just to properly equip non-profits.
This is going to be difficult Mr. Paulson because you have lenders and servicers who are trying to cut corners and refuse to properly staff and run their loss mitigation departments. Then you have Countrywide out sourcing their dismal efforts to India. Just getting lenders and servicers to cooperate will be an exercise of futility.
Bernake said this week that it was the biggest housing decline in 16 years.
Economist say we’re heading into a recession and I agree.
I believe this is top priority for our government and I think it would be safe to say that they are a lot more worried then they are indicating.
How many lawmakers hold ownership with Countrywide? That is the only thing I can think of as to why they are getting away with all this. Many of the other lenders have seen the light yet these morons refuse to even budge to help people that CAN make payments yet wont be able to make them when the ARM resets. Wouldn’t they rather get some money than no money at all? There are so many homes available that they can possibly be relying on someone buying them. Sure some day they’ll get bought up but not now.
Just opinion and rumor here, but… the crafty folks running Countrywide are far from being morons. By foreclosing instead of working with borrowers in default or facing default they might accomplish a few things: (1) they get to own quite a bit of real estate putting them in a position to be the largest landlord of single family homes ever; (2) foreclosing delays posted losses for a while, so that their stock data look better and the top dawgs can continue to dump their stock each month (of course following the SEC rules limiting the amount of stock dumping one can do as your company tanks); (3) allowing the investors in these toxic loans to collect on insurance policies that were taken out against foreclosure.
- Paul
There are a lot of hedge funds and 401k’s owned by state run agencies that have a huge vested interest in Countrywide. Most of these loans are securitized and thus are almost impossible to get modified or it’s just easier to tell everyone no, then to work with individual borrowers on a case by case by case basis. Maybe they are planning to be the largest real estate company in America? time will tell
Paul,
I think your opinions are based on facts and the rumors are based on reality. So, it is safe to say that you are right on with everything said.
Moe, can’t make it all the way to Corona but wouldn’t it be great if your seminar were available on disc or on line? Hmmm. Can you give me details on your speaking engagements for non-profits.
We will be offering webinars in the future.
As long as our schedules permit, we will be available for any speaking engagements booked in advance. Local travel is no problem. But if we have to travel, we just require that our traveling expenses be reimbursed. Hopefully, once the grants and funding we are seeking are in place, then we hope that we will be available to offer this service for free to all organizations. We are strong supporters of educating consumers and informing them of the predatory lending laws that protect them. There is a huge need in America and we hope to join the other consumer advocates in the fight.
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Could you let me know when you are going to be offer webinars…
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Hello, this is my first time leaving a reply. I have called you Moe and we have been missing each other. I am helping a group of 20 homeowners who are non-english speaking and need desperate assistance. I have been helping them through the process and by reading this website I have learned how to take the steps in submitting information to the lenders. But , I have to be honest and know that the process is extremely complex and I need your help. I am in the Monterey County area near Carmel, Salinas, Soledad, Greenfield, and Gonzales. Hope you will give me a call back to help these homeowners.