Treasury seeks to prevent foreclosures
Details revealed on how it plans to buy MBS, loans
By Inman News, Monday, October 13, 2008.The Treasury Department "will look for every opportunity possible" to help troubled borrowers avoid foreclosure when it begins buying mortgages and mortgage-backed securities from banks and financial institutions under the Troubled Asset Relief Program.
Assistant Secretary for Financial Stability Neel Kashkari today revealed some of the particulars of how the $700 billion TARP program, passed by Congress and signed into law by President Bush Oct. 3, will be implemented.
Kashkari said a Treasury policy team -- one of seven created after the TARP legislation was passed -- is in the process of drawing up rules for the reverse auctions the government will use to buy mortgage-backed securities at competitive prices. Another Treasury team is working with bank regulators to identify which types of whole mortgage loans to purchase first and how to value them.
"When we purchase mortgages and mortgage-backed securities, we will look for every opportunity possible to help homeowners" avoid foreclosure, Kashkari said.
Treasury will employ measures like those used by the HOPE NOW coalition of loan servicers, which is engaging in workouts, loan modifications, short sales and refinancings with some borrowers facing foreclosure. Critics have said efforts by HOPE NOW loan servicers haven't kept pace with the increase in delinquencies and foreclosures (see Inman News story).
Kashkari said Treasury is working with the Department of Housing and Urban Development "to maximize these opportunities to help as many homeowners as possible, while also protecting taxpayers."
In another initiative to stimulate lending, Treasury will establish a program to insure troubled assets, including mortgage-backed securities and whole loans, Kashkari said.
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Submitted by Michael LittleBig on October 14, 2008 - 7:44am.
The Hope for the Dope(homeowner)Program
Maybe it is better to be a nation of HOPE than a Nation of Laws.
As I read there are 4 millions foreclosures at present, there are 2 million more projected as reported by the Brooking Institute for year 2009, and 7.5 million facing foreclosure and 5 million that are under water (value to mortgage balance) (as reported by CNN 10-4-08).
This article mentions the State Banking authorities, the OCC, FHA insured mortgages but never refers to the Office of Thrift Supervision. Here is the federal regulator of Federally Chartered Savings Banks of which you know some of them, Washington Mutual,Indy Mac, Countrywide Bank,Am Trust Bank and so on.
You should be aware that these FCSB’s short for federally chartered savings banks operate with absolute impunity and answer to no one.
These banks have no fear of the mortgage borrower since by design Congress has never passed any federal consumer banking regulations. This means that the borrower has no rights to question, contest or object to their foreclosure in the same regulatory system that these FCSB's lend their mortgage money. The federal government does not, will not, and can not tell these banks how to lend their mortgage money or how treat their mortgage borrower. One should also note, the regulator, the OTS does not and will not enforce what few lending regulations that involve these banks. The OTS although responsible for supervising and enforcing the Equal Credit Opportunity Act, The Truth in Lending Act, the Fair Credit Reporting Act does not answer questions, interpret, administer,investigate or enforce any part of these consumer regulations. This large government regulator does not have the staff, the time the knowledge or the expertise to supervise these savings banks. The OTS is a like a bear without claws and teeth. Their job basically is to protect the system, the wealthy and powerful banks if you will.
These savings banks to not have to use mitigation, counseling or even talk with the borrower. The FCSB’s operate under the “Lynch Mob” theory. They foreclose the mortgage and hang the borrower. The Borrower can’t afford an attorney so he loses the house.
Out of 4 million foreclosures how many people fought their foreclosure? How many people won? Regardless if the borrower defaulted he was entitled to be heard at foreclosure. In our country it is a facade, the borrower hence forth has no voice. Congress does not protect the borrower and never has, Congress protects their own, the wealthy and powerful banks, wall street, investment and brokerage banks. Senate Majority Leader Harry Reid stated within the past week that Congress is trying to protect the banks from the bad loans. If Senator Reid were there for the American people, he would have stated that the Congress is here to protect the citizens from the bad banks that made the bad loans. There are Banks who operated unethically, with malice and violated the covenants of safe and sound banking practices. This Congress will never punish nor will they hold those responsible, accountable for the horrific financial pain and suffering of millions of Americans.
That’s why the HOPE program is nothing more than a feel good game. The name should be Hope for the Dope (borrower) The reality is that the financial rape of the mortgage borrowers by these banks was never bought the public’s attention until the rich and famous in their quest for power and money started to unravel which we now refer to as the housing meltdown.
This financial pillage will go on until regulations are legislated and enforced to make the playing field level between the borrower and the lender. I believe the word here “to be fair”.
To do this, we as a society have to make a change. That change is Congress.
Until we elect citizens who serve the peoples interest instead of their own interest nothing will change.
HOPE, yeah lets all HOPE the 6 million foreclosure victims stay warm this winter and that Congress ups the food stamp allocations.
These 6 million foreclosure victims have no voice. Their silence is deafening. I can’t speak for them, because I am one of them. My thought and prayers are then, always.
Michael LittleBig
POBox 16588
Rocky River OH 44116-0588
10-14-08