General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsFire sale of distressed mortgages to hedge funds- Banks still stealing homes, Nothing has changed!
The senator called on the Department of Housing and Urban Development and the Federal Housing Fianance Agency, the overseer of Freddie Mac and Fannie Mae, to make it easier for nonprofit organizations to bid for the bundles of distressed mortgages put up for auction.
The sale of distressed mortgages by HUD and the government-sponsored mortgage finance firms has been drawing growing criticism from housing advocates and lawyers in recent months. The critics are concerned that private buyers of distressed mortgages are moving too quickly to put borrowers into foreclosure instead of modifying the loan terms as housing officials had hoped.
The investors are buying loans at a discount, often as much as 30 percent.
In a statement, Ms. Warren accused HUD and the F.H.F.A of “lining up with the Wall Street speculators.”
“Wall Street is interested in profits, not in working out a way for people to stay in their homes,” she said.
http://www.nytimes.com/2015/10/01/business/dealbook/senator-warren-to-join-call-to-alter-sales-of-distressed-loans.html?_r=0
Comments from another thread on this which was posted in primaries and did not get the attention it deserved,,,,
http://www.democraticunderground.com/1251637781
9. WE the PUBLIC were all told................2008.................
the banks would help the home owners if they were in distressed to help pay for there 800 Billion + bailout of criminality for homeowners and the taxpayers---------------------------that there would be loan modifications-------------------------that has not happened, it was a big FAT LIE, and if it has happened it has been years and sometimes just a means to foreclose on the property after the facts where represented to help those in distressed.
This is why this present system is rigged----------------it was devised not to help----------------but hurt
Enough is Enough
Honk-------------------for a political revolution Bernie 2016
Star Member LovingA2andMI (1,511 posts)
10. This is a LIE...
As in Loan Modification. Noting of the sort is going on. We're recently told in a state that suppose to be one of the hardest hit, that, the bank would not do a loan modification period (now mind you, this was what is one of the available opinion on this groups website). Instead, the "Best" recourse was payment of the past due payments, with a house STILL massively underwater and taking on a 5 year "lien" for that BS. Seriously!
We're moving on and that whole "bailout" of the mortgage companies and "Helping Homes Affordable Program" is straight up a BS lie were the banks got paid, taxpayers got screwed and folks are STILL losing their homes.
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Cal Carpenter
(4,959 posts)"Making Home Affordable (MHA) is designed to help you get mortgage help and avoid foreclosure." This, according to the .gov site for it.
My personal anecdote - several years ago, I needed to refinance my mortgage to get my ex's name off of it. I had great credit, plenty of equity in the home, a decent salary and was in no way in danger of losing my home. The only reason for the refi was so it would only be in my name.
Anyone who has been through a refi knows it takes several weeks of mailing and faxing documents and waiting for the closing date. So I got through all of that without any issues, until 2 days before closing when I had to go to the bank (a pretty well-regarded smallish local bank) for last minute signatures or maybe a good faith payment or something, I forget. Anyway, I got to see the final paperwork and realized that the terms of the refi required I pay into escrow for taxes/insurance which I hadn't been expecting and didn't really want to do it that way.
The banker explained to me that this was required under the Making Home Affordable act. I asked why was my loan being refinanced via that program? She said because it gave me the best terms as far as interest rate and closing fees. I didn't really know much about it and decided I could be flexible about the escrow thing and didn't want to have to start the whole process over so we went ahead and closed as scheduled.
Come to find out that the MHA was the federal effort to save people from foreclosure by making payments lower or whatever. I WAS NEVER AT RISK FOR FORECLOSURE, I had plenty of equity - was nowhere near underwater, yet I am counted in those statistics that are used to make the program look like a success.
What bullshit. I felt used. It was symbolic bullshit, like cash for clunkers and much of ARRA (don't even get me started about my ARRA anecdote, LOL).
My take-away is BE SKEPTICAL of all of these programs. They don't help the people who need it most, but they give the gov't an opportunity to claim all this success. And many politically active people are just one or two steps removed from needing these sort of desperate-times programs personally, so they see the stats and press releases and assume things are working as the rhetoric implies, but they aren't working. They aren't changing things, they aren't fixing the problems.
