The great debate facing our nation is over loan modifications and what lenders are doing to truly help struggling homeowners.

Bottom Line: The American people simply cannot trust their lenders, mortgage servicers and Hope Now to do the right thing and it looks like our government has had about enough lip service.

I am going to start this with two simple issues that will make sure that any efforts by Washington will not work unless they are addressed and handled properly. #1, Loan modifications without massive principle reductions will not work in the long term and #2, 100% lender and mortgage servicer cooperation will NEVER happen!

Recent JPMorgan Chase CEO, Jamie Dimon quote, “As If you are not fearful, you are crazy.”

Please also keep in mind that the CEO of Chase and member of Hope Now, Jamie Dimond is quoted in Fortune Magazine has dodging the subprime bullet and saying that he saw this coming over 2 years ago.

One red flag came from the mortgage servicing business, the branch that sends out statements, handles escrow, and collects payments on $800 billion in home loans, its own and others’. During a regular monthly business review for the retail bank in October 2006, the chief of servicing said that late payments on subprime loans were rising at an alarming rate. The data showed that loans originated by competitors like First Franklin and American Home were performing three times worse than J.P. Morgan’s subprime mortgages. “We concluded that underwriting standards were deteriorating across the industry,” says Dimon.

OK folks, this is the CEO of one of the largest banking institutions in the world, yet he let his company, investors and the American people run blind for 2 whole years and now he sits on the very committees to help solve the mortgage and housing crisis.

This just seems counter intuitive and ludicrous to me. It’s like when I watch CNBC’s Squawk Box with these slimy investment advisors that just lost their investors billions and now they are out giving new advice and debating if there is a recession or not. Barf…

I don’t know about you all, but my mother taught me at a very young age that it’s not what you say, it’s what you do that determines who you are as a person. Obviously, CEO Dimon didn’t get that life lesson and his inaction in light of his expert CEO knowledge must play a huge part in where we are now. In fact it does and if you believe otherwise, then you’ve been drinking from Mr. Dimon’s highly intoxicating cool aid stand.

So, why should anyone trust or listen to these banking CEO’s and executives anymore? Why should we trust Hope Now’s numbers when they are self serving and is ran by the same perpetrators who brought our nation to our economic knees?

Maybe Thomas Jefferson will help you understand exactly what these banks and bankers have done to our economy and our nation. President Jefferson, arguably one of the greatest President of ALL time warned us all over 200 years ago. Yet, we sit here scratching our heads going, “What happened?” error…

“I sincerely believe… that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.” –Thomas Jefferson to John Taylor, 1816. ME 15:23

 

“The system of banking [I] have… ever reprobated. I contemplate it as a blot left in all our Constitutions, which, if not covered, will end in their destruction, which is already hit by the gamblers in corruption, and is sweeping away in its progress the fortunes and morals of our citizens.” –Thomas Jefferson to John Taylor, 1816. ME 15:18

“The banks… have the regulation of the safety-valves of our fortunes, and… condense and explode them at their will.” –Thomas Jefferson to John Adams, 1819. ME 15:224

“The States should be urged to concede to the General Government, with a saving of chartered rights, the exclusive power of establishing banks of discount for paper.” –Thomas Jefferson to John W. Eppes, 1813. ME 13:431

Come on America! Stop listening to these damn banks and fat bankers! If you think Moe and his blog is little kooky, are you saying President Jefferson was a “crack pot?”

Please take a look at my long list of failed CEO’s and lenders that I call the Economic Cartel – The Mortgage Unit. On that list you’ll see many of Mr. Dimon’s cronies and partners in this debacle.

The facts are that when these lenders like Chase announce $70 billion dollar loan modification plans and Citi quickly follows with a $20 billion press release, the media and the American people think, “Wow, that’s a lot of billions, they must be doing a lot!”

But modifying $70 billion of Chase’s estimated trillion dollar mortgage servicing portfolio (keep in mind, Chase just recently purchased WAMU and their HUGE toxic pay option ARM’s and also inherited EMC’s highly toxic subprime portfolio as part of the Bear Stearns debacle) and $20 billion of Citi’s $646.5 billion is really chump change folks!

To us normal people on Main Street, when we hear billions of dollars it seems so big and so large, but in reality, it’s just a tiny drop in the foreclosure bucket when comparing it to the size of their mortgage servicing portfolios and the scope of the crisis.

Let’s take a look at JP Morgan Chases loan modification smoke and mirrors and let me help you ALL see the light.

Chases Trillion Dollar Mortgage Servicing Problem’s:

 

<!–[if !supportLists]–> Recent reports do not adequately reflect the actual number of home mortgages serviced by JP Morgan Chase. With the recent acquisitions of EMC and Washington Mutual (WAMU). We estimate this number to be well over $1 trillion in home mortgages. The bank had more than $395 billion in consumer loans, with the largest chunk in home equity mortgages before acquiring WAMU and EMC. Chase inherited toxic pay-option ARMs when it acquired WaMu’s $695 billion mortgage portfolio.

<!–[if !supportLists]–>The $58 trillion Elephant in the room – Portfolio- JPMorgan deemed to be so safe that it snagged two of the victims of the financial-system collapse, Bear Stearns and Washington Mutual—is still swimming in credit derivatives, far more than any other firm on Wall Street, though the bank says it’s hedged. As of the second quarter of 2008, the bank had written derivatives contracts backing credit valued at $10.2 trillion, roughly three-quarters the size of the U.S. economy.

<!–[if !supportLists]–> <!–[endif]–>Chase acquires EMC’s portfolio earlier this year as part of the Bear Stearns acquisition. Bad news: FTC - Bear Stearns and EMC Mortgage to Pay $28 Million to Settle FTC Charges of Unlawful Mortgage Servicing and Debt Collection Practices: Allegedly paid inadequate attention to the integrity of consumers’ loan information and to sound servicing practices. As a result, in servicing consumers’ loans, they neglected to obtain timely and accurate information on consumers’ loans, made inaccurate claims to consumers, and engaged in unlawful collection and servicing practices.

This is really getting ridiculous! How many American’s need to be foreclosed on in order for our government to realize that lenders and mortgage servicers are truly not helping in an adequate fashion and that these billion dollar loan modification plans are nothing but more smoke and mirrors from the very same people who had HUGE parts in creating the crisis and have a vested interest in covering it up.

LoanWorkout.org was founded in July 2007 with little fanfare has the only website on the internet for consumers dedicated to loan workouts and in particular loan modifications. I knew on that hot July day when I registered LoanWorkout.org and LoanSafe.org that loan modifications were going to be the only way out of this mortgage and housing crisis and I have not wavered in spreading the word to Main Street.

For new visitors to this websites, I wanted to let you know that this blog and my forum at www.LoanSafe.org are dedicated to telling the truth, uncovering the lies and helping struggling homeowners/Americans in this difficult time.

This is a Main Street blog and my dedication and blogging loyalty are to homeowners losing their homes.

Quick Disclosure: My name is Moe Bedard and I am president of Loan Safe Solutions, a loan modification processing and predatory lending investigation firm for attorneys in Southern California. My company has processed well over 1,000 loan modifications and our not for profit forum has helped save over 200 homes for free.

What started has just me, a lap top and an idea has tuned into over 70,000 visitors a day, a 6,000 square foot office in Corona, Ca., 30 employees and I am involved in the biggest national debate in modern history and my blog is my podium.

Media Contacts for the Truth About Loan Modifications:

Moe Bedard

(951) 531-0148