This was submitted by a Loan Safe Forum member

A few days ago I discovered this forum when I had less than 2 weeks before the sale date of my property. Thanks to the advice discussed, I learned some very important things that I wish I would have known 3 months ago when I was 1st given notice that I was in default.

I took the advice given by CAT and emailed everybody on the list on Sunday night that is posted in various threads. Monday morning, I received two different calls from the Office of the President and a couple of emails from others on the list. My loan has been given priority and the attention it needs.

I’m sad for some of the posts where they didn’t take the same advice of emailing that list to get the attention they needed, because it really did work.

While the sale date in 9 days is not yet dropped, I do know that Countrywide is seriously looking at finding a solution. Unfortunately, the balance now due to take my loan out of default has increased from $17,000 to at minimum $38,000 (maybe even closer to $60,000 - still waiting for the Reinstatement Balance).

I believe this to be very unfair and could have been avoided because I believed that CW Home Retention Department was there to help me and accepted their advice to pay $3,000 and apply the remainder of the $17,000 to the end of my loan to lighten the load of the payments.

What I didn’t understand until I read the posts in this forum was that:

• HOME RETENTION is just a deceiving name for debt collector.

• HOPE is the program for loss mitigation and loan modification, not HOME RETENTION.

• HOME RETENTION gets your information to a NEGOTIATOR to review your financial information to determine whether your might be able to receive negotiator assistance in the HOPE program.

I hope word can be spread around for people not to have a false sense of security when they are connected with this department.

As a result of HOME RETENTION assuring that everything was fine with my case for three months:

• The clock was ticking on my sale date.
• Fees were accumulating. Each day I call, it seems that another $1,000 in fees has been added to my loan.
• CW paid 3-4 years of back taxes which, in my case, were exempt because I am low income and disabled with quadriplegia. I have the option to pay them when I sell the property or before if I’m able.
• I’m being charged for all the legal fees involved; the Title charges; the appraisal; etc.

These fees and taxes could have been avoided.

• The HOME RETENTION department had my financial information that showed we had $17,000 to pay the balance to take it out of default.
• If HOME RETENTION would have assigned a negotiator to me within the 10 days they initially promised instead of 2.5 months later.
• If HOME RETENTION would not have represented to me that they were doing everything they could to help me.
• If CW could have kept me apprised of the fees that were accumulating or that they were paying my back taxes.

How can I be prevented from paying the additional fees accrued, the appraisal and other fees that were incurred by CW as a result of the deception of false sense of security and negligence of the HOME RETENTION department for not reviewing my case sooner so I could have taken my loan out of default when it was $17,000?

Now I don’t have enough money and if no loan modification is granted, I really will have lost my handicapped modified home and property that provides me with the rental income I use for survival & to pay my mortgage.

Has the media exposed or made clear to the community that HOME RETENTION is not a warm fuzzy department meant to assist you, but a debt collector?

Barney Frank: We’re telling people, “We wish you would use this alternative process.” Some of them will say, “Well, I can make more money foreclosing, so the hell with ya.”

Lenders are lobbying furiously against any move to give judges the power to adjust mortgages.

The House is expected to consider a $300 billion housing rescue package this week. The bill would allow the Federal Housing Administration to insure new, cheaper mortgages for homeowners facing foreclosure. Nancy Marshall Genzer reports.

Listen to the Market Place public radio here

The mortgage-foreclosure crisis cuts across all races and incomes, but it has an even more profound impact on the black community, where homeownership is lower and home equity serves as the main source of wealth in black families.

Subprime lending has been a mechanism for African-Americans to become homeowners. This was one way for African-Americans to gain some access to wealth,” McCarthy said. “Now the reverse is going to happen.”

Cora Fulmore sees it every day now as middle-class blacks — managers, executives, business owners, accountants and educators — seek help from her Mortgage and Credit Counseling Center in Winter Garden to save their homes.

Read the rest of the Orlando Sentinel article here

Direct grants and investments part of companies’ efforts to preserve
               neighborhoods and help families stay in homes

    CHARLOTTE, N.C., May 1 /PRNewswire/ — Bank of America and Countrywide
Financial Corporation today provided additional details regarding the $35
million neighborhood preservation and foreclosure prevention package
announced last week in Chicago. The commitment includes foreclosure
prevention efforts by both financial institutions.

    (Logo: http://www.newscom.com/cgi-bin/prnh/20050720/CLW086LOGO-b )

    The package, which is comprised of both grants and low-cost loan/
investments in nonprofit organizations, addresses the nation’s ongoing
mortgage foreclosure crisis and will complement efforts undertaken by the
U.S. government and other housing agencies, such as the $180 million
allocation from U.S. Department of Housing and Urban Development (HUD) to
NeighborWorks(R) America to boost the capacity of both national and local
nonprofits engaged in foreclosure prevention and mitigation activities.

    “Foreclosures have devastating social and economic consequences on
families and communities,” said Andrew D. Plepler, president, Bank of
America Charitable Foundation. “Both Bank of America and Countrywide
recognize that we have a shared responsibility to strengthen our
neighborhoods by helping individuals and families keep their homes. We are
pleased to do our part to address this ongoing crisis.”

    The Bank of America neighborhood preservation and foreclosure
prevention package includes:

     - $10 million in direct grants from the Bank of America Charitable
       Foundation to enhance the capabilities of national and local nonprofit
       organizations focused on foreclosure prevention counseling and
       mitigation.  Estimates indicate at least 40,500 people will receive
       counseling or other support services as a result of these grants.
     - $15 million in program related investments (PRI), a long-term,
       repayable  loan/investment offered at below-market interest rates to
       help nonprofit organizations preserve affordable housing and rental
       units in deeply impacted cities by acquiring and redeploying foreclosed
       properties.
     - $5 million in unallocated grants to address future needs, including
       counseling and property disposition efforts.

    Countrywide, in conjunction with its community partners, has allocated
$5 million for neighborhood stabilization and foreclosure prevention
through 2008.

    Under the program, the Bank of America Charitable Foundation has
already allocated $10 million in direct grants. National grant recipients
will utilize funds to support their local affiliates in cities across the
U.S., as well as develop and expand programs to further assist their
constituents. The funding will be used to help these organizations conduct
outreach to distressed homeowners through the creation of hotlines,
foreclosure prevention and mitigation training for counselors, expanded
community outreach and staffing increases.

    National grant recipients include:
     - ACORN Housing Corporation (Chicago) - $2 million
     - Consumer Credit Counseling Service of Greater Atlanta (Atlanta) -
       $500,000
     - Housing Partnership Network (Boston) - $200,000
     - National Community Reinvestment Coalition (Washington, DC) - $500,000
     - National Foundation for Credit Counseling (Silver Spring, MD) -
       $250,000
     - Homeownership Preservation Foundation (Minneapolis) - $250,000
     - National Urban League (New York) - $300,000
     - NeighborWorks(R) America (Washington, DC) - $1 million

    More than $4 million in local grants have been allocated to nonprofit
organizations in states that have been disproportionately impacted by the
foreclosure crisis. Those states include Arizona, California, Florida,
Illinois, Nevada, New York and Texas.

    “Bank of America and Countrywide are taking a strong leadership role in
addressing this ongoing crisis, and I commend them for contributing to the
solution,” said Ken Wade, CEO, NeighborWorks(R) America. “Homeowners facing
foreclosure often have to turn to nonprofit organizations, like
NeighborWorks(R) and our partners, for assistance. I am pleased so many
groups will have additional resources to perform their critical work thanks
to the generous contributions of Bank of America and Countrywide.”

    Both Bank of America and Countrywide are founding members of HOPE NOW,
an alliance between counselors, mortgage market participants and mortgage
servicers to create a unified, coordinated plan to reach and help as many
homeowners as possible. Data from HOPE NOW indicates that from July 2007
through February 2008, mortgage servicers provided loan workouts that
enabled about 1.2 million individuals to retain their homes.

    Earlier this week, Bank of America made several announcements further
demonstrating the company’s commitment to support vibrant and healthy
communities. Beginning in 2009, Bank of America will embark on a new $1.5
trillion community development lending and investing goal over the next ten
years. The goal is the largest in U.S. history. Also beginning in 2009, the
company will begin a new ten-year, $2 billion corporate philanthropy goal,
continuing its tradition of being one of the most generous financial
institutions in the world.

    Additionally, the Office of the Comptroller of the Currency (OCC)
notified Bank of America last week that it had received a sixth-consecutive
‘outstanding’ rating during its most recent Community Reinvestment Act
(CRA) exam. This is the highest possible acknowledgement from the OCC, and
covered a 3-year assessment period between 2004 - 2006.

    Bank of America Corporate Philanthropy

    Building on a long-standing tradition of investing in the communities
it serves, Bank of America will embark in 2009 on a new, ten-year goal to
donate $2 billion to nonprofit organizations engaged in improving the
health and vitality of their neighborhoods. Funded by Bank of America, the
Bank of America Charitable Foundation gave more than $200 million in 2007,
making the bank the most generous financial institution in the world and
the second largest donor of all U.S. corporations in cash contributions.
Bank of America approaches giving through a national strategy called
“neighborhood excellence” under which it works with local leaders to
identify and meet the most pressing needs of individual communities.
Through Team Bank of America, bank associate volunteers contributed more
than 650,000 hours in 2007 to enhance the quality of life in their
communities nationwide. For more information about Bank of America
Corporate Philanthropy, please visit
http://www.bankofamerica.com/foundation.

    About Countrywide

    Founded in 1969, Countrywide Financial Corporation (NYSE: CFC) is a
diversified financial services provider. Through its family of companies,
Countrywide originates, purchases, securitizes, sells, and services
residential and commercial loans; provides loan closing services such as
credit reports, appraisals and flood determinations; offers banking
services which include depository and home loan products; conducts fixed
income securities underwriting and trading activities; provides property,
life and casualty insurance; and manages a captive mortgage reinsurance
company.

                         http://www.bankofamerica.com

Forbes:

Committee Chairman Barney Frank of Massachusetts has said the bill, the Housing Stabilization and Homeownership Retention Act, could be up for a vote by the House as early as next week.

Under the bill approved today, a voluntary program would be created that would allow the Federal Housing Administration (FHA) to insure up to 300 bln usd worth of refinanced mortgages. Mortgages eligible under the program would be those that mortgage holders are willing to write down so struggling borrowers can avoid foreclosure and instead make smaller mortgage payments.

Wall Street Journal Blog:

The program would hinge on the willingness of mortgage servicers and investors to agree to restructure troubled loans, as well as to pay the financing cost of making the federal loans.

“Only the federal government is in a position to help arrest the downward cycle in housing markets by facilitating temporary aid to borrowers facing financial difficulty and encouraging widespread restructuring of unaffordable mortgages,” the FDIC said in a document outlining the plan.

FDIC Chairman Sheila Bair, in a conference call with reporters, acknowledged that servicing firms would receive some benefit through the program. She noted, however, that those firms would be required to cover the financing costs and would have to subordinate their claims to the federal government if they choose to take part in the program.

More from Forbes:

Democratic senators have said they support this type of legislation, and Senate Banking Committee Chairman Christopher Dodd of Connecticut has said he would like to see a 400 bln usd program.

Treasury Spokeswoman Brookly McLaughlin this week declined to say if Treasury supports or opposes Bair’s suggestion, but did say there are other housing priorities right now.

‘We’ll take a look at any proposals, but we think the focus right now should be on getting FHA modernization and GSE reform legislation across the finish line,’ McLaughlin said.

Washington, DC - {The House Financial Services Committee today approved H.R. 5830, the FHA Housing and Homeowner Retention Act, by a bipartisan vote of 46 to 21.  The legislation, authored by Committee Chairman Barney Frank, will expand the FHA program to help refinance at-risk borrowers into viable mortgages.  The bill also requires the Federal Reserve Board to conduct a study on the need for an auction or bulk refinancing mechanism.  The legislation now moves to the full House for consideration.

“It is important that we reduce the number of foreclosures both as a matter of alleviating the pain for some individuals and stabilizing some neighborhoods. It is my hope that this legislation will restore some stability to the housing market, put liquidity back in the market, and not interfere with the market, but help restore it,” said Chairman Frank.

“Servicers should put a pause in some foreclosures until they can wait to see exact details of this as it moves forward.  If after this we continue to get very little participation by servicers, I can guarantee you that the servicer industry will look very different a year from now than they do today.  If after everything we do in this cooperative way falls short, then you are going to see legislation that puts some very real restrictions on the role of servicers and give many more rights to the borrowers,” Frank continued.

The following is a revised summary of H.R. 5830, as amended:

FHA Housing Stabilization and Homeownership Retention Act

Summary of H.R. 5830 (May 1, 2008)

Summary of the Expanded FHA Refinance Program.  This voluntary program would permit FHA to provide up to $300 billion in new guarantees to help refinance at-risk borrowers into viable mortgages.  This $300 billion is the total amount of outstanding loans that may be insured under the program.  The government would only have liability if a borrower defaults and the amount recovered in foreclosure is below the outstanding principal. 

In exchange for the acceptance of a substantial write-down of principal, the existing lender or mortgage holder who chooses to participate would receive a “short payment” (i.e. a payment for less than the outstanding balance as payment in full) from the proceeds of a new FHA-guaranteed loan if the new loan would have terms that the borrower can reasonably be expected to pay and the borrower agrees to share future home appreciation with the government.  In short, the program would provide refinancing assistance to allow families to stay in their homes, protect neighborhoods and help stabilize the housing market.

Under the program, a borrower or existing loan servicer of an eligible loan would contact an FHA-approved lender, who would determine the size of a loan that would be consistent with the requirements of the program and that the borrower could reasonably repay.  If the current lender or mortgage holder agrees to a write-down that is sufficient to meet the requirements of the program and make the new loan affordable, the FHA-lender will pay off the discounted existing mortgage.

In addition to a first lien, the government will retain a share of future home-price appreciation to help defray the government’s costs and prevent unjust enrichment (e.g., borrower flipping).  When the borrower sells the home or refinances the loan, the borrower will pay from any profits the higher of (1) an ongoing exit fee equal to 3 percent of the original FHA loan balance; or (2) a declining percentage of any net proceeds attributable to home appreciation (i.e., from 100 percent in year one to 50 percent in year four and thereafter minus the fees the borrower has paid into FHA).
Eligibility Requirements for Existing Loans (Requires All of the Following):

• Owner-occupied principal residences only (no investors, speculators or second homes), and borrowers must certify that they do not own any other homes;
   
• Existing senior loan being refinanced must have been originated on or before December 31, 2007; 
   
• To remove any incentive for borrowers to “purposely default,” the borrower must have had a mortgage debt-to-income ratio of no less than 35 percent as of March 1, 2008, and must certify that he/she has not intentionally defaulted on existing mortgage(s) and did not obtain the existing loan fraudulently;
   
• Participating mortgage holders/investors must waive any penalties or fees on the existing mortgage and must accept proceeds of the new loan as payment in full; and
   
• Existing mortgage holders/investors must accept their losses – taking substantial write-downs sufficient to: (1) establish a 3 percent loan loss reserve for the FHA; (2) pay the origination and closing costs for the new loan up to 2 percent; and (3) bring the loan-to-value ratio on the new FHA-guaranteed loan down to no greater than 90 percent of property’s current appraised value, resulting in a substantial reduction in debt service to the borrower.  Accordingly, to qualify mortgage holders would need to accept a substantial write-down, accepting as payment in full no more than 85 percent of the property’s current appraised value.

Requirements for New FHA-Insured Loans:
 

• New FHA loans must be properly underwritten and must be based on current appraised value of the house and borrower’s documented income (borrowers with higher – but not disqualifying – debt levels would need to make six months of timely payments at the new payment level to qualify for the guarantee);
   
• New FHA loan must extinguish all existing liens and substantially reduce the borrower’s mortgage debt service;
   
• New FHA loans under this program must be within the FHA loan limits now in effect under the stimulus for the duration of this program;
   
• Oversight Board will set reasonable limits on loan fees and interest rates; and
   
• To reduce costs to the government – and avoid inappropriate enrichment to the borrower – the government will retain a share of the borrower’s future profits.  When the borrower sells the home or refinances the loan, the borrower will pay from any profits the higher of (1) an ongoing exit fee equal to 3 percent of the original FHA loan balance; or (2) a declining percentage of any net proceeds attributable to home appreciation (i.e., from 100 percent in year one to 50 percent in year four and thereafter minus the fees the borrower has paid into FHA). 

Oversight Board.  The program will be overseen by a “Refinance Program Oversight Board” consisting of the Secretary of Treasury, the Secretary of HUD, and Chairman of the Federal Reserve.  

Coordination of Existing Lien-Holders.  The Oversight Board will be authorized to take action to facilitate coordination among different existing lien-holders; and shall be empowered to establish a formula for compensating and a mechanism for obtaining the voluntary waiver of all lien holders.

Separate FHA Fund.  To protect the FHA Mutual Mortgage Insurance Fund, these new loans will exist in a separate fund in FHA – and will be permitted to be resold through GNMA.

Improving FHA Capacity.  The Oversight Board will take actions as necessary to increase FHA’s capacity, including:

• Treasury, Federal Reserve and HUD may sharing employees to improve FHA capacity;
   
• Contracting for the establishment of underwriting criteria, pricing standards, and other factors relating to eligibility;
   
• Contracting for independent quality reviews of the underwriting of these mortgages; and
   
• Increasing HUD personnel.

Auction or Bulk Refinance Study.  The Federal Reserve Board will be required to conduct a study of the need for, and efficacy of, an auction or bulk refinancing mechanism and submit a report to Congress within 60 days of enactment.

• Increased Fraud Prevention/Oversight.
   
• Independent quality reviews will be established to determine underwriter compliance, and rates of delinquency, claims and losses;
   
• Monthly reports will be submitted to Congress; and
   
• Annual audit of the program will be conducted.

Sunset.  The program will run for 2 years (with flexibility for additional 6 month extensions not to exceed 2 more years). 

Authorization for Foreclosure Counseling & Legal Aid.  The bill would authorize $210 million dollars for foreclosure counseling, including to veterans recently returning from active duty in the armed forces, with at least $30 million targeted to low-income and minority homeowners and $35 million to assist with legal aid.

Office of Housing Counseling.  Establishes within HUD an Office of Housing Counseling that will conduct activities relating to homeownership and rental housing counseling.
 

• Requires HUD to provide for the certification of various computer software programs for consumers to use in evaluating different residential mortgage loan proposals.
   
• Authorizes appropriation not to exceed $3 million for national public service multimedia campaigns for homeownership counseling services for fiscal years 2008, 2009, and 2010.
   
• Requires HUD to provide financial and technical assistance to States, local governments, and nonprofit organization regarding the establishment and operation of related educational programs, and authorizes appropriation of $45 million for each of fiscal years 2008 through 2011.
   
• Directs HUD to study and report to Congress on the root causes of the default and foreclosure of home loans.

Mortgage Fraud.  Authorizes appropriations of $31,250,000 to hire additional FBI agents and Department of Justice prosecutors to combat mortgage fraud, and $750,000 to support FBI interagency task forces in the areas with the 15 highest concentrations of mortgage fraud. 

VA Loans.  Increases conforming loan limits for VA loans.

House Press Release

Appraisals.  Requires enhanced appraisal standards and appraiser independence

Further evidence of the crisis came last week, with the second report published by the State Foreclosure Prevention Working Group, which also found that industry efforts to avoid unnecessary foreclosures are not keeping pace with the rising rate of homeowners in trouble. The report provides analysis of data from October 2007 through January 2008, and found that seven out of 10 seriously delinquent borrowers in the United States are still on track to lose their homes to bank foreclosure, despite widely-publicized campaigns to encourage homeowners in trouble to seek help and for servicers to fast-track loan modifications. (The full Report is available online at http://www.banking.state.ny.us/pr080422.pdf).

As the data clearly shows, this is a situation where we need to take immediate action. We can’t delay any longer,” said Paterson. “It was a lack of action that helped get us here, and more inaction is inexcusable. Forecasts show that the worst is yet to come, so we must move now to save the tens of thousands of New Yorkers impacted by the crisis.”“I am encouraged by the Congressional attention and recent funding initiatives at the Federal level aimed at stemming the tide of foreclosures,” said Paterson. “But there is still a great deal of work that needs to be done at the Federal level. Helping people keep their homes should continue to be a top national priority and is certainly one of mine as Governor of New York.”

Read more of the North County Gazette story here

KANSAS CITY, Mo. – H&R Block Inc. (NYSE: HRB) today announced that it closed the sale of the mortgage loan servicing business of its Option One Mortgage Corporation (“OOMC”) subsidiary effective April 30, 2008.  As previously announced, the purchaser was American Home Mortgage Servicing, Inc. (“American Home”), an affiliate of WL Ross & Co. LLC.  Proceeds of the transaction at closing were approximately $1.3 billion. 

“The closing of the Option One sale is a significant milestone in the transformation and refocusing of H&R Block,” said Richard C. Breeden, H&R Block’s Chairman.  “We are pleased to safely transfer the servicing responsibilities of Option One into the hands of a respected and responsible purchaser.  More importantly, we delivered on the promise we made to shareholders to change the future course of our company.  Today’s transaction reduces risks and distractions from doing what we do best, which is serving the tax preparation needs of tens of millions of clients.”

At closing, the Company utilized the proceeds in part to repay more than $980 million on its servicing advance facility, representing the entire outstanding balance of this facility.   After repayment of servicing advances, the Company realized net cash proceeds of slightly more than $230 million, and also retained a receivable relating to certain servicing assets of approximately $100 million.  The Company anticipates that it will realize approximately $57 million of this receivable over the next 60 days, with the balance representing a long-term receivable.  As previously announced, the Company does not believe that the transaction will result in a significant increase or decrease in reported income, although the impact of the transaction on reported income will not be known definitively until the completion of all post-closing adjustments.

In addition, the Company also announced that it completed repayment of the entire outstanding balance under its revolving committed line of credit (“CLOC”) from a syndicate of lending banks.  With the repayment of the entire outstanding balance of both its servicing advance facility and its CLOC, the Company’s outstanding short-term indebtedness has been reduced to zero. 

H&R Block’s financial advisor in connection with the transaction was Lazard and legal advisors included the law firms of Jones Day and Manatt, Phelps & Phillips.

Forward Looking Statements

This announcement may contain forward-looking statements, which are any statements that are not historical facts. These forward-looking statements are based upon the current expectations of the company and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties and speak only as of the date on which they are made, the company’s actual results could differ materially from these statements. These risks and uncertainties relate to, among other things, uncertainties in the subprime mortgage industry and its impact on any operations of Option One Mortgage Corporation that continue to be operated by H&R Block; potential litigation and other contingent liabilities arising from Option One Mortgage Corporation’s historical and ongoing operations; uncertainties pertaining to the commercial debt market; competitive factors; regulatory capital requirements; the company’s effective income tax rate; litigation; uncertainties associated with engaging a new auditor; and changes in market, economic, political or regulatory conditions. Information concerning these risks and uncertainties is contained in Item 1A of the company’s 2007 annual report on Form 10-K and in other filings by the company with the Securities and Exchange Commission.

About H&R Block

H&R Block Inc. (NYSE: HRB) is the world’s preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4 billion in fiscal year 2007.  H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut® online and software solutions.  The company also provides business services through RSM McGladrey and certain consumer financial services.   For more information visit our Online Press Center at www.hrblock.com.

Smart businessmen, like those in California, have turned the weak market into an entrepreneurial opportunity by buying units about to be foreclosed at rock bottom prices from the lender and repackaging the loan to help the distressed homeowner retain his home.

But the scheme has caught the attention of the state legislature as some companies and individuals had used it to dupe instead the debt-ridden homeowner. To protect Florida residents, state Sen. Mike Fasano filed a bill requiring more transparency in foreclosure rescue businesses.

Read the rest of the All Headline News story here

Please watch the MSN Video here

Watch the MSN video here

By Fran Sweet

To Elizabeth from April 4:

I’m the Fran Sweet mentioned in the article. Elizabeth apparently you are a very gullible Obamaite. You believe Penny Pritzker? Wow what world do you live in!?

Please see the Chicago Sun Times article dated Aperil 28, 2008, titled: Obama’s Subprime Pal which provides proof (a letter signed by Penny) that Penny Pritzker was actively involved in the management of the privately owned Superior Bank as late as May 31, 2001.

Penny has never been accused of any wrong doing? Why do you suppose that is? Check out the unpaid loan the bank made to one of the bank’s owners.

Note: Bear Stern bought some of the Superior Bank subprime loans after the bank’s failure. In addition, less than one year after Penny Pritzker stole $42 million dollars from the depositors of Superior Bank (not to mention the loan shark interest rates charged the subprime mortgage and auto borrowers)she had the audacity to give a philanthropical gift of $30 million to the University of Chicago.

The same elitist university Barack Obama happens to have worked for as a professor of law and at which Michelle Obama worked at in a high level position. I suggest, Elizabeth that you continue your research on the Pritzker sweetheart deals with the government. How is they were able to obtain the Naval base land which closed near Orlando Florida for so little money? How is it the Ernst & Young accounting firm settlement resulting from the Superior Bank failure gave the Pritzkers 25% of the settlement and none to the stiffed depositors? Check into the relationship between Ernst & Young and other Pritzker businesses. (Smell like Enron does it?)

They agreed to pay the FDIC $460 Million over 15 years at no interest and at an escalating devaluation of the dollars owed. The Superior Bank failure will cost the FDIC over $700+ million. Does Penny mean to say she’s proud she was able to get away with stiffing the government for over $250 Million and the Superior Bank depositors of the remaining $15 Million she still owes them?

To John Jason and Elizabeth: Unfortunately for Barack Obama we are judged by the company we keep, i.e Jerimiah Wright, Penny Pritzker, Tony Rezko. Like Jerimiah Wright, Penny Pritzker is more than a casual acquaintance of the Obamas, see the Wall Street Journal article Money Maven. When candidates have political positions that are the same or very similar, wise people judge them by their character.

One of the factors in judging character is the company a person keeps.

Investors — including big fish like former Countrywide Financial Corp. President Stanford Kurland as well as smaller fry like Gentry — are buying loans on the cheap from lenders who want them off their books. By paying less than face value for the mortgages, the new holders can modify loan terms, including shrinking the amount owed, and still make money.

With some economists projecting 2 million foreclosures this year, legislators and regulators are hoping to encourage wide use of this model. They want lenders and investors in mortgage bonds to mark down what borrowers owe and then provide them with lower-cost loans. It’s a tricky business: No one wants to be seen as bailing out speculative buyers or imprudent lenders, but they also don’t want mass foreclosures to devastate neighborhoods and the economy.

More from the LA Times

CHARLOTTE, N.C., April 28 /PRNewswire/ — Bank of America today announced key initiatives to reduce the impact and number of foreclosures on communities as well as new goals in corporate philanthropy and community development and investment. Bank of America also said it will locate the combined national consumer mortgage headquarters in Calabasas, California, once it completes the purchase of Countrywide Financial Corp.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050720/CLW086LOGO-b )

Bank of America, which expects to close on the acquisition in the third quarter subject to Countrywide shareholder and regulatory approval, will operate the consumer mortgage business under the Bank of America brand.

“We believe the financial strength, security and stability of the combined company will allow us to enable people to buy homes and stay in homes, and to assist many of those affected by the current mortgage troubles,” said Bank of America Global Consumer and Small Business Banking President Liam McGee during testimony at a Federal Reserve hearing in Los Angeles regarding the Countrywide transaction.

The combined company expects to modify or workout at least $40 billion in troubled mortgage loans in the next two years and estimates these efforts will keep at least 265,000 customers in their homes.

In addition to foreclosure prevention efforts, the combined company will continue Bank of America’s policy of permitting tenants to continue living in properties subject to foreclosure for 60 days after the completion of foreclosure proceedings. If the tenant voluntarily leaves the property within 30 days of the completion of foreclosure proceedings, they will receive a $2,000 cash-for-keys payment to help defray moving expenses.

“We will continue to work with distressed borrowers to match the customer’s repayment ability with the appropriate loss mitigation option, including loan modifications, forbearances, repayment plans, lower rates and principal reductions,” McGee said. “We will not assess new late charges for customers in foreclosure and we will waive certain other associated fees, when permitted.”

CRA Rating, Community Development

McGee announced Bank of America was notified last week by the Office of the Comptroller of the Currency that for the sixth-consecutive period the bank has achieved an “outstanding” rating on its recently completed Community Reinvestment Act (CRA) exam.

Bank of America has been a national leader in community development since the passage of the CRA 30 years ago, McGee said. The latest “outstanding” rating reflects the company’s continuing commitment to serve the needs of low- and moderate-income individuals, businesses and neighborhoods.

“Our commitment to communities is ingrained in the Bank of America culture that holds all our associates accountable for doing the right thing for customers, shareholders, communities and one another,” said McGee.

To further demonstrate that ongoing commitment, McGee also announced that beginning in 2009, Bank of America will pursue a new goal to lend and invest $1.5 trillion for community development over the next 10 years. The goal, the largest in U.S. history, replaces existing community development goals of both Bank of America and Countrywide.

Areas of focus will include affordable housing, economic development and consumer and small business lending. More details about the goal will be released once the purchase is complete and the company has met with community groups and other stakeholders. This new level for community development lending and investments is double Bank of America’s existing $750 billion goal set in 2004.

“This new goal raises the bar and is certain to enhance quality of life for millions of Americans in need,” McGee said.

Finally, Bank of America announced a new 10-year, $2 billion national corporate philanthropy goal.

“Through our Neighborhood Excellence strategy we work with communities to identify the most critical local issues and deploy our resources to support community leaders and organizations to help confront those challenges,” said Andrew D. Plepler, president of the Bank of America Charitable Foundation. “Ultimately, we hope to enhance the quality of life in diverse neighborhoods throughout the country.”

Lending Guidelines

As previously announced in April 22 testimony before the Federal Reserve in Chicago, Bank of America unveiled new mortgage lending guidelines. Following the purchase, the combined mortgage business plans to continue to offer retail customers the following types of first lien mortgages:

  -- Conforming loans underwritten to standard guidelines of the government      and government-sponsored enterprises, including Expanded Approval      guidelines and FHA/VA guidelines designed for low- and moderate-income      borrowers.    -- Non-conforming loans with terms expected to produce no greater risk of      default than conforming loans.    -- Interest-only, fixed-rate and adjustable-rate mortgage products,      subject to a 10-year minimum interest-only period that removes the      possibility of short-term payment shock.    -- Fixed-period ARMs that provide borrowers low initial rates with the      security of fixed payments, subject to protections against severe      step-ups in payment amounts.

The company also said in previous testimony it expects to continue its long-established policy of not originating subprime mortgages. Following the purchase, Bank of America expects to make the following changes to certain home loan products offered by the combined mortgage business.

  -- Discontinue certain nontraditional mortgages -- including so-called      "option-ARM loans" -- in which payments may not cover accrued interest      and cause negative amortization.    -- Significantly curtail some other nontraditional mortgages, such as      certain "low documentation" loans.    -- Implement enhanced borrower protections soon after completion of the      Countrywide purchase, including limits on prepayment penalties and      protections on non-traditional loans such as interest-only and hybrid      ARMs, which limit the risk of future payment shock and provide      long-term affordability.     Bank of America

Bank of America is one of the world’s largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, nearly 18,500 ATMs and award-winning online banking with nearly 25 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in more than 150 countries and has relationships with 99 percent of the U.S. Fortune 500 companies and 83 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.

Bank of America Corporate Philanthropy

Building on a long-standing tradition of investing in the communities it serves, Bank of America is in its fourth year of achieving an unprecedented 10-year goal to donate $1.5 billion to nonprofit organizations engaged in improving the health and vitality of their neighborhoods. Funded by Bank of America, the Bank of America Charitable Foundation is one of the most generous financial institutions in the world and the second largest donor of all U.S. corporations in cash contributions. Bank of America approaches giving through a national strategy called “neighborhood excellence” under which it works with local leaders to identify and meet the most pressing needs of individual communities. Through Team Bank of America, bank associate volunteers contributed more than 650,000 hours in 2007 to enhance the quality of life in their communities nationwide.

For more information about Bank of America Corporate Philanthropy, please visit http://www.bankofamerica.com/foundation .

http://www.bankofamerica.com/

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AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

SOURCE: Bank of America

CONTACT: Scott Silvestri of Bank of America, +1-980-388-9921,
scott.silvestri@bankofamerica.com

Web site: http://www.bankofamerica.com/foundation
http://www.bankofamerica.com/

Press Release

The plan, which needs Congress approval, would permit new government loans so borrowers can repay up to 20 percent of the principal they owe on their mortgage, the report said, citing a confidential draft of the proposal.

Though borrowers would not have to make any payments on the Treasury loan for the first five years, they would still be required to pay off the mortgage and loan, the report said.

More from Reuters

Bank of America is in the process of finalizing the deal in acquiring Countrywide Financial. Along with the Countrywide deal, B of A stands to inherit all of Countrywide’s baggage and this is no carry on bag for your favorite weekend getaway.

It’s a super duper, toxic sludge bag of mortgages with sprinkles of good loans here and there.

Yes, there are quite a few good loans in their trillion dollar mortgage pool. But let me tell you all something folks, good loans do not go bad and a lot of loans are going bad in Countrywide’s servicing bag of tricks.

So, when Bank of America announced that they were acquiring Countrywide, I cringed in disbelief.

My thoughts went like this. Do they truly have an idea of the sleeping monster that they have just invited in bed with them? Do they have any idea how much baggage and crap that they are getting in this deal? 

Then I said to myself, these guys are bankers and they make tons of money, wear nice suits and live in glass houses, as the rest of us in main street America are choking on the very loans that they sold us. They must be smart, right? Or sick……………….

When I look at Countrywide’s massive $1.48 trillion servicing portfolio and the amount of delinquent mortgages, I get scared. It’s literally frightening to look at it.

Inman:

Foreclosures pending continued a relentless rise, however, growing 16 basis points in February to 1.64 percent when expressed as a percentage of unpaid principal balance — more than double the 0.8 percent rate a year ago.

Foreclosures pending as a percentage of loans serviced increased 8 basis points, to 1.13 percent — or roughly 102,000 loans.

All told, 9.1 percent of Countrywide’s $1.48 trillion servicing portfolio — 724,000 loans totaling $134.5 billion — is either delinquent or in foreclosure.

All told, 9.1 percent of Countrywide’s $1.48 trillion servicing portfolio — 724,000 loans totaling $134.5 billion — is either delinquent or in foreclosure.

That is $134.5 billion dollars of loans going bad folks. Moe doesn’t sugar coat nothing. It is what it is. $134.5 of potential foreclosures, write downs and misery.

A lot of people are behind those mortgages. Not just homes and loans. Real people, like you and me.

Families and children that are scared of what the future holds. Parents so stressed out that they can’t properly care for their children or perform well at work. Some are drowning their sorrows with alcohol and numbing their fears with drugs. Depression and anxiety go hand and hand with foreclosure.

This isn’t just about money. It’s about people who are suffering at the mercy of these loans.

Yes, some are dead beat debtors. Some may deserve to lose their homes. But most truly do not deserve what they are going through.

Bank of America just announced that it plans to work-out approximately $40 billion of loans in trouble at Countrywide as part of it’s acquisition of the failed mortgage lender.

Bank of America estimates that the $40 billion will result in a little over a quarter-million homeowners keeping their homes instead of losing them to foreclosure.

This is a bold statement by Bank of America and I plan to take this statement very seriously. I will follow this closely and I plan to report the facts as they come.

Here are some more claims from Bank of America.

In addition to foreclosure prevention efforts, the combined company will continue Bank of America’s policy of permitting tenants to continue living in properties subject to foreclosure for 60 days after the completion of foreclosure proceedings. If the tenant voluntarily leaves the property within 30 days of the completion of foreclosure proceedings, they will receive a $2,000 cash-for-keys payment to help defray moving expenses.

“We will continue to work with distressed borrowers to match the customer’s repayment ability with the appropriate loss mitigation option, including loan modifications, forbearance’s, repayment plans, lower rates and principal reductions,” McGee said. “We will not assess new late charges for customers in foreclosure and we will waive certain other associated fees, when permitted.”