by William Hudson
When borrower credit requirements are lowered, housing prices rise in response. Flat wages and an employment market composed of part-time jobs paying minimum wage should inhibit home ownership- but, alas, Wells Fargo has a solution! In fact- it’s the same solution they had back in the early 200s when they gave out loans to unqualified buyers, knowing the loans would fail, and then bet against their own investments- while knowing future government (tax payer) subsidies would fund any claims of “loss”. It was one of the most perfectly orchestrated criminal schemes ever perpetuated on the American public- that continues to this day.
The second wave of the market crash has now appeared on the horizon and with a slow down in the real estate market- the Fed and the Banks must again resort to drastic measures to incentivize prospective buyers into the market. The nation’s largest lender, Wells Fargo, is offering a low down payment mortgages, and is claiming the risk of offering low down-payment loans is safe, in part, because they are partnering with Fannie Mae. That would be absolutely correct- Fannie Mae’s guarantee passes the risk on to unsuspecting investors and the American taxpayer- all the bank has to do is sign up the victim.
The banks are still originating loans, concealing the true creditor from the homeowner, failing to transfer the Notes to the Trusts, and kicking the risk down the road. Not a thing has changed in the last decade. The Truth in Lending Act isn’t worth the paper it was written on when there is no enforcement.
“We are fully underwriting the borrowers, we are partnering with Fannie Mae to originate and sell these loans, we are insuring the borrowers have an ability to repay and that they’re qualified for home ownership, but we’re simplifying things for the homebuyer,” said Brad Blackwell, executive vice president and portfolio business manager at Wells Fargo.
How do you ensure a homeowner has the ability to repay when there are a record number of business defaults, layoffs and stagnant wages that don’t keep up with inflation? You don’t. You aim for plausible deniability and simply assign the note over and over, fleece the investors, take out insurance and hope the government and judiciary will continue to look the other way. It also helps to originate notes with other people’s money who have no idea that they are purchasing an investment backed by a fabricated illusion. It is 8-years post-bubble and NOTHING has CHANGED. What could go wrong?
http://www.cnbc.com/2016/05/26/wells-fargo-launches-3-down-payment-mortgage.html
Record numbers of people are buying homes at all time high prices as the economy shows a repeat performance of the recession. The cheap money is inflating home prices beyond their value, while people leverage to borrow as much as they can. Meanwhile the Too-Big-To-Fail banks are preparing to short the markets with the knowledge that the Oligarchy is untouchable.
Looking at housing, which normally historically rises 1.5% per YEAR:
http://www.dianomi.com/smartads.epl?id=2259
From 2008 to 2016 property values have soared way above 1.5% a year.
As we know, the year 2008 brought record housing prices and then allegations of fraud triggered a housing crash. Eight years later, prices are higher than they were in 2008 and yet the economy never recovered.
No doubt the banks will be pushing 3% down adjustable rate mortgages and laughing all the way to the bank and eventually thousands of pensions and investment accounts will fail.
Americans Bought The Most New Homes In 8 Years Just As The Median Price Hit An All Time High
Fasten your seat belts. But don’t worry- the Federal Reserve, Federal government and World Banks are prepared for this eventuality and may introduce a bank holiday, a new currency and step in to take care of the nation’s elderly when the pensions and social security fail.
Despite being in the midst of a so-called recovery, the global economy is still in a recession and American workers aren’t benefiting from the long-in-the-tooth bull market, underemployment remains high, inflation is much higher than the U.S. government’s official tally, and a third of Americans have no emergency savings.
This is all after the Feds spent trillions of dollars and years of meddling from the Federal Reserve and other central banks around the world. As a result, the U.S. could experience an economic collapse if the same practices are repeated.
Interestingly, according to a recent survey, 2018 is the year most economists believe the next downturn will hit the U.S. If not 2018, 2020 is the next date on the calendar before the U.S. economy falters. I think they’re both wrong-and the 3% down on an inflated home is the onset of the fall. (Source: Bloomberg.com, last accessed May 22, 2016.) Buyer beware.
Filed under: foreclosure |
Reblogged this on California Freelance Paralegal.
Heyhey everybody: Does anybody around here know how to do a “Securitization Report” ?? Obviously searching MERS does not work, suggestions?
Thanks and Make it a Great Day.
“Appellants next contend the trial court erred when it granted
summary judgment in favor of appellees Alvin and Mark Friedman on
the breach of fiduciary duty issue. A trustee of deeds has the
fiduciary obligation to comply with the powers and duties of the
trust instrument, as well as the applicable statute under the
District of Columbia Code. Perry v. Virginia Mortgage & Inv. Co.,
412 A.2d 1194, 1197 (D.C. 1980) (citations omitted). This court
has long recognized that trustees owe fiduciary duties to both the
noteholder and the borrower. S&G Inv., Inc. v. Home Fed. Sav. &
Loan Ass’n, 164 U.S. App. D.C. 263, 270-71 n. 21, 505 F.2d 370,
377-78 n. 21 (1974) (citations
omitted). Where it is shown that a fiduciary has conflicting interests,
the burden is on the fiduciary to prove that he has been faithful to his
duties. Sheridan v. Perpetual Bldg. Ass’n, 112 U.S. App. D.C. 82,
84, 299 F.2d 463, 465 (1962) (en banc). Absent fraud, misrepresentation, or self-dealing, we do not impose any additional duties upon the trustee. Perry, supra, 412 A.2d at 1198.
A conflict of interest existed for appellees Alvin Friedman
and Mark Friedman by virtue of their role as appellants’
substitute trustees and counsel for GMAC. See id. at 1197
(substitute trustee, who was also counsel for mortgagee,
“obviously had conflicting interests”); Johnson v. Inter-City
Mortgage Corp., 366 A.2d 435 (D.C. 1976) (trustee also counsel for
mortgagee); Har-Rich Realty Corp. v. American Consumer Indus.,
Inc., 122 U.S. App. D.C. 88, 351 F.2d 785 (1965) (“close
relationship” as trustee and counsel for mortgagee was “beyond
doubt”). Appellees, therefore, bear the burden of proving
compliance with their fiduciary obligations. Sheridan, supra,
112 U.S. App. D.C. at 84, 299 F.2d at 465.
People say that the next economic downturn is coming and it could be worse than the recession. This is unbelievable and hard to imagine the impact on the unresolved mortgage crisis.
If this possibility is real, home owners affected by the bank’s fraudulent assignments and fabricated Promissory Notes must get free homes as a question of principle and practicality to move forward. The nation must put people first – not the banks.
People in America need to have homes to have jobs, families and send their kids to school. Without these, the future of America may be at a great risk by the wrong doings of the unscrupulous greedy banks.
To my knowledge, dot trustees use a quit claim deed when transferring real property to a foreclosure buyer. Some (most? all?) cases when confronted with the issue hold that a grantee of a quit claim deed is not an “innocent purchaser”. In fact, even though qc deeds have been used for certain legitimate purposes in the past, when there was still some law to rely on, a quit claim deed was viewed as a blemish on title.
The next downturn is right around the corner. Many cycles are coming due together that make it certain a collapse is close by. The stars are telling you to beware and major changes are in the wind. Most of all, the same terrible things that we going on in the housing market in 2007 are with us again.
Reblogged this on Deadly Clear and commented:
The banks won’t stop until the computer systems and their patents are confiscated and destroyed. It is a “seamless automation” system of corruption. Although there are minions viewing computer screens, it is really the computer system that processes the applicant. Although the system was designed with safeguards and fraud detection, it can be and has been relaxed. The homeowner enters the rabbit hole and becomes part of the system that is designed to force default in order to keep the banks liquid…afloat.
Why are we surprised that they are continuing the same process? If we want them to stop – fines, settlements and sanctions – even prison – won’t kill the computer system. Our war is with corrupt technology. You have to completely eradicate it first before we will see any real change.
This is phase 3. The system started before the S&L crisis; and ramped up again after 2002 (RTC vs. KeyFinancial). Now the system is pushed again…very little change but same intent and outcome.