« The "Man" & his SubPrime Plan | Main | My decision on disseminating research »

December 07, 2007

Comments

harlynman

The American Securitization Forum wrote the rate freeze presented to the public by the President and the Treasury Secretary.
I found it on americansecuritization.com.

The framework allows servicers to modify loans without borrower signatures

Source: American Securitization Forum, Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans, Executive Summary, December 6, 2007, page 13, third paragraph from bottom of page


According to the American Securitization Forum's Framework for the rate freeze, borrowers will not have to document current income to be eligible for refinancing, even if they received initial loans with embellished incomes

Source: American Securitization Forum, Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans, Executive Summary, December 6, 2007, page 3, FICO test


Counseling and modification expenses are to be charged to securitized trust cash flows, so service providers, like Countrywide, which has a representative on the board of the American Securitization Forum, will profit from the process.

Source: American Securitization Forum, Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans, Executive Summary, December 6, 2007, page 7, first full paragraph

Appraised value for modifications are based on the date of origination, even if the current value is much less.
Source: American Securitization Forum, Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans, Executive Summary, December 6, 2007, page 2, second bullet

Some of the firms that may profit from the rate freeze are members of the industry group that authored the plan, including Countrywide Home Loans, Ameriquest Mortgage Company, Capital One, Citi Global Markets Inc., Fannie Mae, Freddie Mac, GMAC, JPMorgan Chase, Thornburg Mortgage, Inc., Washington Mutual Bank, MetLife

DBRS, Fitch Ratings, Moody’s Investors Service, and Standard & Poor’s

ABN AMRO, Inc., Banc of America Securities LLC, Barclays Capital Inc., Bear, Stearns & Co. Inc., Countrywide Securities, Credit Suisse, Deutsche Bank Securities Inc., Goldman, Sachs & Co., HSBC Securities (USA) Inc., Lehman Brothers Inc., Merrill Lynch & Co., Morgan Stanley, UBS Investment Bank, PIMCO etc…

Mario

Reggie, if the government's mortgage rescue plan is in your opinion a non event, should I take my DHI loss of 18% over the last week being short the stock is a signal to short even more?

Thanks,
Mario

Chuck

Reggie - Thank You for sharing your analysis with the public. The curious investor & citizen absolutely does not get this from Main-Stream Media.

This is primarialy a political move, wich is unfortunate because the policy guys actually had a chance to help someone.

My feeling is that this is an attempt to forestall a taxpayer-financed bailout that could end up costing several times (i.e. trillions) the S&L crisis. I'm not sure there's a need to make Federal cases out of mortgage fraud. States can certainly go after the fraudsters without any help from the Feds. From a political standpoint, the Federal government's primary role in this is probably to bail out the losers in this housing bust. And Bush is trying to keep that role minimal. This is probably just a bid for headlines just to show something is being done. Would he prefer to do nothing? Probably. I suspect this is as close to nothing as he can get away with.

Johnson

Thanks for letting me know about First mortgagees and the new prime. thanks for your information.

Avoid Foreclosure

This site may be useful to some of you guys and gals.
It has some practical information on how to avoid foreclosure.

http://www.howtoavoidforeclosure.org/

Good Luck

ferragamo shoes


the information of this post is very relevant
for what i am looking for, thank you so much for sharing this one

The comments to this entry are closed.

Your email address:


Powered by FeedBlitz

December 2007

Sun Mon Tue Wed Thu Fri Sat
            1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31