So much for “innovation” in lending

From HousingWire:

Freddie Mac economist: Exotic mortgages meant steepest declines in area values

In states where adjustable-rate or exotic mortgages were more prevalent than traditional loans, home values fell 39% on average, compared to a 5% decrease in more conservative states, according to Freddie Mac chief economist Amy Crews Cutts.

In a perspective published Monday, Crews Cutts said more traditional mortgages have saved many homes since foreclosures began mounting in 2007.

“The long-term, fixed-rate mortgage has emerged as an economic shock absorber for millions of households and thousands of neighborhoods during the current downturn,” Crews-Cutts said.

When subprime loans began to deteriorate and investors began pulling capital out of the market, many borrowers with adjustable-rate mortgages could not refinance and avoid the interest-rate resets. Subprime and ARMs accounted for nearly half, 47%, of all foreclosures started in the first half of 2010.

Crews Cutts went on to compare state home price indices vs. FRM totals for all 50 states and found that the states where home prices fell the most, fewer borrowers had prime FRMs, FHA or VA mortgages.

This entry was posted in Housing Bubble, National Real Estate, Risky Lending. Bookmark the permalink.

160 Responses to So much for “innovation” in lending

  1. Mr Hyde says:

    FRIST

  2. grim says:

    From the NY Times:

    A Foreclosure Tightrope for Democrats

    The swelling outcry over fast-and-loose foreclosures has thrust the Obama administration back into the uncomfortable position of sheltering the banking industry from the demands of an angry public.

    While senior Congressional Democrats join the calls for a national moratorium on foreclosures, the White House once again is arguing against punishing the industry, just as it did in 2009 amid the outcry over the unbreakable habit of paying large bonuses.

    “Irresponsible banks need to be held accountable, but if we have not found a problem with a bank’s process we do not believe that we should impose a moratorium where that can hurt the market and hurt individual buyers,” said Shaun Donovan, secretary of Housing and Urban Development.

    The administration’s basic logic has not changed since it took office in the depths of the financial crisis: Hitting the financial industry, officials argue in private and in public, hurts the broader economy. A moratorium on foreclosures may provide short-term political satisfaction in an overheated election climate, but the administration fears it will only delay the inevitable and necessary process of forcing many Americans out of homes they cannot afford.

  3. grim says:

    From the Washington Post:

    Foreclosure logjam threatens Fannie, Freddie

    A breakdown in the nation’s foreclosure process threatens to create billions of dollars in losses for federally controlled mortgage finance companies Fannie Mae and Freddie Mac, highlighting how improper actions by banks could impose new costs on taxpayers, said government officials and industry sources.

    To protect themselves from those losses, Fannie and Freddie have threatened to penalize thousands of lenders if they fail to rapidly fix the way they seize the homes of borrowers who missed their payments, according to letters sent by the firms to lenders.

    “The country’s housing finance system remains fragile, and we’re trying to work through this subject in a way that’s fair not just to delinquent householders but also servicers and mortgage investors and most of all is in the best interests of taxpayers and the housing market,” he said.

    Banks have said a remedy will take only a few months, but some Obama administration officials are unsure whether the system can be fixed that quickly. On Friday, Bank of America froze foreclosures nationwide, and many other banks have stopped them in dozens of states. Litton Loan Servicing, the mortgage servicing unit of Goldman Sachs, on Monday halted some foreclosures so that it could review its procedures, a spokeswoman said.

    If these freezes turn into a prolonged delay, Fannie and Freddie would face “billions” of dollars in losses, since the companies wouldn’t be able to sell off properties that have fallen into foreclosure, said Anthony B. Sanders, a professor of real estate finance at George Mason University.

    “Over the long term, a moratorium could cause financial harm to Fannie and Freddie if housing prices continue to fall,” said James B. Lockhart III, the companies’ former regulator.

  4. grim says:

    Nice commentary from out in Seattle.

    From SeattlePI:

    The Problem With Pending (Real Estate Pending Home Sales)

    Pending home sales, in the past, were an accurate indicator used in forecasting real estate sales in the U.S. We had a fairly standardized system of home sales, and while transaction closings could range between a couple of weeks and a couple of months, if a home was “Pending Sale”, it was highly likely that it would close.

    We’ve been predicting future home sales for years with great accuracy by planning for the vast majority of these pending sales to close in the next month–not anymore.

    With the new crops of distressed properties, short sales, and ever-changing lending guidelines, there’s no such thing as a sure sale these days. The percentage of pending sales that actually become closed sales has shrunk dramatically in recent years. Short sales, which can many times last up to 6 months, create a large lag between pending date and closing date. Even worse, my lastest research has shown that less than 20% of buyers who enter into a contract to buy a short sale are actually successful. This means that 80%+ of “pending sales” which are short sales will end up failing. Pending is actually nothing of the sort, in these cases.

    The unfortunate answer for the real estate profession is this:
    “Pending”is no longer “pending a closing”.

    Pending now means, “pending a decision on whether or not to close”. For now, we should really return to forecasting home sales with the old, less-exciting method. Last month’s closed sales are the only statistic that has the accuracy and validity necessary to base our estimates upon.

  5. grim says:

    Anyone mind if I comment on the idiocy of a redevelopment project?

    http://www.northjersey.com/news/104754704_Time_running_out_for__20M.html

    They are trying to renovate that “high-rise” in downtown Passaic (one called the “Pride of Passaic”) that has been rotting for years.

    Trinity Partners LLC proposes a $27.5 million project to convert a historic bank tower in Passaic, 663 Main Ave., into a hotel, café and place for retail shops and medical offices.

    Hotel? There is no parking at all, and anyone who wishes to visit needs to walk blocks in a downtown where a concealed weapon is damn near a requirement. Is this really a hotel? Or a crack house, brothel, or day rate motel for illegals (ala Rt 46 through Morris County). Is there even a reason to stay in Passaic overnight? Retail? The entire mile plus run of downtown is rock-bottom rate retail, I wonder what lease rates they modeled on.

    If I recall, there has already been one, if not two, failed redevelopment efforts.

    Sorry, but downtown Passaic just has nothing going for it. Nothing. I’ve gotten behind Paterson and Newark redevelopment, but I can’t here. Passaic is just a slum now. If it wasn’t for residents in the Passaic Park section, the entire city would have collapsed by now.

    Seems like a plan to bilk money out of government and investors and secure a year or two of solid paychecks for the developers.

  6. Shore Guy says:

    “In states where adjustable-rate or exotic mortgages were more prevalent than traditional loans, home values fell 39% on average, compared to a 5% decrease in more conservative states,”

    Of course this is the case. The exotic lending allowed more people to become buyers, thus increasing demand and, with it, prices.

  7. Lamar says:

    grim (2)-

    Bojangles needs that bankster money, or he’s certain toast in 2012. He will do their bidding until the day he leaves office.

  8. Lamar says:

    The daylight bank robbery continues.

    From Investment News Daily, October 10, 2010–

    “The disclosure that Mary Schapiro received nearly $9 million last year when she left her post as Finra’s chief executive to become chairman of the Securities and Exchange Commission was greeted with outrage by brokerage industry participants last week.

    “Nine million dollars? For a non-profit? That defies logic,” said John Busacca, owner of the Broker Dealer Exchange LLC and one of the founders of the Securities Industry Professional Association, which represents broker-dealer firms and registered representatives.

    “It’s absolutely obscene,” said Dan Roberts, founder of Roberts & Ryan Investments Inc. The payout shows that the Financial Industry Regulatory Authority Inc. is “out of touch” with its members, he said.

    Critics have hammered Finra for paying Ms. Schapiro and other managers a total of $35 million in salaries and bonuses in 2008 despite a stream of regulatory failures and $567 million in investment losses. Ms. Schapiro’s payout was $8.98 million and included $7.6 million in vested retirement benefits.

    “What company on earth loses $600 million and pays its CEO $9 million to leave?” Mr. Busacca said.

    “What has she done to deserve a $9 million payout?” said Steve Stahler, founder of the Stahler Group Inc., a brokerage firm which manages about $60 million for clients. “She’s done nothing for the investment community, and we have a worse reputation now than ever [before].”

    Ms. Schapiro’s payout was disclosed last week for the first time in a 100-page report by an investigative committee of the Finra board, which conducted a seven-month inquiry in response to a request from Amerivet Securities Inc. Amerivet asked that the regulator commence legal action against Finra officers, board members, legal advisers and consultants to recover investment losses and allegedly excessive pay.

    Amerivet maintains that Finra managers didn’t deserve their pay after failing to detect Bernard Madoff’s Ponzi scheme and overseeing collapsed investment banks such as The Bear Stearns Cos. Inc. and Lehman Brothers Holdings Inc.

    The report absolved Finra officials of any wrongdoing.”

  9. Lamar says:

    Fcuk up and move up. It’s the American Way.

    “What company on earth loses $600 million and pays its CEO $9 million to leave?” Mr. Busacca said.”

  10. Mike says:

    Grim No. 4 Not only is pending no longer pending, I think the same goes for the appraisal process that’s way off course when they take 3-4 similar homes that sold in recent months and not taking into account the government gift and the similar houses that have been for sale in the same price range for 11 months and just not selling. Usually I would just browse MLS on the major realtors web site. Now I have an agent that sends me an automatic email everday for the towns that I chose providing there’s some kind of change. Usually while browsing I would only pick up on the newer listings and not paying attention to anything else. It’s amazing now because with this daily email I’m picking up on all the reductions right away. OMG three this morning dropped by average of 30K. Pretty scary

  11. Lamar says:

    Anarchy now!!!! Fight the power!!!! Overthrow the criminal gubmint!!!!

  12. Shore Guy says:

    Falling prices, isn’t that what America craves?

  13. Shore Guy says:

    Clot,

    Perhaps you should change your blog name to Robespierre, or even Danton.

  14. DoughBoy says:

    Crews-Cutts? Really? That’s gotta be a bogus name, right?

  15. about says:

    i thought crewcuts was the jcrew line for kids….
    -longtime stalker of NJRER

  16. toomuchchange says:

    SG = #112 from last night:

    From what you quoted:

    “According to Shierholz’s analysis, the economy is down about 8.1 million jobs from where it was when the recession began, in December 2007. Considering population growth, the economy should have added 3.4 million jobs during the recession, Shierholz notes. To fully recover, the country would need to add 11.5 million jobs.

    That’s a huge number, and population growth continues to make it bigger. To fully recover in five years, Shierholz says, the country would need to add 300,000 jobs “every month for that entire period.”

    300,000 jobs per month for the next five years? In what universe is that achievable?

    It happened after prior recessions, yes. But now we’re continuing to outsource jobs overseas and add over a million new legal work visa holders a year. As many of you know, the majority of these work visas go to people based on family ties alone. Why do we feel obliged at this time to hand out hundreds of thousands of work visas to people who’s only reason for being admitted here is that they’re the parent or sibling of someone already here?

    Why isn’t anyone getting that fewer jobs + more workers (many with HS degrees or less) is a recipe for continued disaster?

    Do we never want to recover? Do we never intend for our long term unemployed to earn a living wage again?

  17. Shore Guy says:

    Once upon a time, when this nation was resource rich, and largly empty, we encourageed the wold to send us hard workers to help fill-up the empty spaces and to serve as cogs in the wheels of a developing industrial machine. Education levels of imigrants meeant little compared to a willingness to work hard and, if necessary, to get chewed up (often literally) and spit out by industry — as a way of improving one’s children’s and grandchildreen’s prospects.

    We have long since passed the point of needing new bodies fro. the outside and we have allowed our own history to hamstring our ability to take resonable actions to regulate the flow of bodiees into this nation. Sure, we establish quotas, but what good are they when 20M people circumvent them by crossing over dusty unguarded, or under-guarded, border?

    Past needs should not dictate current behavior.

  18. Mr Wantanapolous says:

    “In a perspective published Monday, Crews Cutts said more traditional mortgages have saved many homes since foreclosures began mounting in 2007.”

    Didn’t Greenspan question whether American homeowners were well served by traditional, fixed rate mortgages? Didn’t he tout that that new assortment of options offered the homeowner much more flexibility. Wasn’t this the same guy that praised derivatives, for dispersing risk? Why is this guy not locked up?

  19. Dissident HEHEHE says:

    “Nine million dollars? For a non-profit? That defies logic,”

    She needs the Fuld treatment.

  20. Dissident HEHEHE says:

    A Fascination With Hunting
    According to KTVB.com, one industry seems to be holding up rather better than others:

    “Hunting Sales Soar Amid Recession”

    http://www.financialarmageddon.com/2010/10/a-fascination-with-hunting.html

    %$#*! PETA fill the fridge!!!

  21. willwork4beer says:

    Housing glut blamed on drop in people forming households

    By Alan J. Heavens
    Inquirer Real Estate Writer

    U.S. household formations are at their lowest since 1947, data from the Census Bureau show. And that’s helping to keep the supply of unsold homes at near-record levels nationwide, even though relatively few houses are being added to the inventory.

    Between March 2009 and March 2010, the number of households rose just 357,000, according to the census data. In the previous 12 months, the number increased only 398,000, the third-smallest increase on record since World War II.

    http://www.philly.com/philly/business/20101012_Housing_glut_blamed_on_drop_in_people_forming_households.html

  22. Mr Wantanapolous says:

    ww4b,

    Did you make the River Horse on Sat? It was a great time. We went to the Triumph on Sat night.

  23. firestormik says:

    Re:16
    Over a million visa workers a year?? It’s never been that many. 250k in 1999-2001. After that as far as I remember the cap was 65k a year

  24. yo'me says:

    Legal immigrants are leaving the country.Newcomers don’t want to come,hard to find jobs.Probably a good time to start cutting visa quota.

  25. Confused In NJ says:

    Their is very little functional difference between Alan Greenspan and Bernie Madolff. They both ran Ponzi schemes and screwed the American Public, while getting rich. Madolff went to jail because he lacked a Government job.

  26. Dissident HEHEHE says:

    I saw that from Faber. Funny thing is two weeks ago he said sell in September and buy in beginning of the year. He’s changing his story week to week now.

  27. Dissident HEHEHE says:


    Investment guru and author of the Gloom, Boom and Doom report, Marc Faber, says go away in October and November, and come back after the selling reaches “oversold” levels in the coming weeks. Stocks, Faber says, should be bought after the sell off, as he expects a rally from there and through the remainder of the year.”

    Read more: http://www.beaconequity.com/which-way-will-stocks-go-in-october-marc-faber-weighs-in-2010-10-05/#ixzz129PPVLaW

    Get interviewed enough and you successfully predict everything.

  28. make money says:

    toomuchchange(16),

    The only way to get out of this huge hole we dug ourselves is economic growth. We need to increase our population to 365-380M over the next 5 years. Educated immigrants and entreprenuors need to be given tax brakes and shields to bring in their capital and start small business here. Just think what this will do to housing, retail, tax revenu, etc.

    The only problem is that this is not politically feasible because you’ll have a lazy, unskilled American worker competing with an educated, skilled foreigner who has tons of savings. Can you picture a US union worker going to work for an Asian entreprenuer?

  29. Dissident HEHEHE says:

    And another thing, if the US dollar rallies as Faber is saying it will not be good for US stocks.

  30. 30 year realtor says:

    Mike #10: Appraisals, just put an REO on the market that was previously listed as a short sale. Property had 6 months market time @ $799,000 and never went under contract. Seller uses 3 opinions of value, mine, another agent and an appraiser. The appraiser and other agent give values over $800,000. My value was $625,000.

    My question becomes, didn’t these morons do their research? They have access to the same information that I have!

    Today is day 8 on the market. Just got an offer of $525,000 cash.

  31. Comrade Nom Deplume says:

    [24] yo’me

    Expatriation is not for everyone. In fact, it is really for very few. But if you think you fit the profile of someone that would benefit from expatriation, and if you are serious about building the lifeboat, we should talk.

    BTW, still no 2nd quarter expat report. Cannot remember who was castigating me about being the only one that cared about this report, but it begs the following question (if the lurker cares to take up this challenge): If no one cares about this report, why is the administration suppressing it?

    Bueller? Bueller?

  32. Comrade Nom Deplume says:

    [16] toomuch

    “Do we never want to recover? Do we never intend for our long term unemployed to earn a living wage again?”

    I can make a pretty credible argument (I think) that this is, in part, by design, and is expected to inure to the long term benefit of the democrats (for those who would say I am partisan (schab, fab), I can make an argument that it also inures to the long term benefit of the GOP).

  33. yo'me says:

    Is it feasible to educate and train our own,without being called a socialist gov’t? There is immigration rules for foreign entrepreneur.

    Eb(5) Immigrant Investors.

    Individual invests $500,000 in a high unemployment area (150% of national unemployment rate) or $1,000,000 elsewhere and hires 10 persons within 2 years, or invests in a Regional Center and may use job multiplier studies instead of direct employment. Because this category has been controversial INS processing times are slow and unpredictable.
    None of the investor categories have language, education or business experience requirements

  34. Comrade Nom Deplume says:

    [20] hehehe

    An uptick in sales at Cabelas, along with mixed data on hunting licenses, tells me that it isn’t really hunting that is up, it is buying for home defense and armageddon.

    The only telling stat. is the uptick in licenses to locals. That tells me that there are folks filling the freezer. But if, for example, Cabelas sells 100K more rifles this year, but licenses only uptick 20K, where are all those guns going?

  35. yo'me says:

    Nom

    I am a dual citizen. I don’t have to renounce US citizenship to live in the other country.

  36. Comrade Nom Deplume says:

    [34] yo’me

    Contrast that to Canada’s investor and entrepreneur categories for PR status, where there are clear standards and predicted processing times.

    Those times are long, and if anyone is interested in PR status in Canada, they would do well to get started now. There is an application fee that can make a dent in one’s beer money, but it is a lot less than what you will pay to grease some carribean official’s palm.

    Also, it may make sense to look beyond the normal western and carribean countries, especially if one expects to be an “investor” and a non-dom. This would be the coveted 3rd passport, which factors into a scheme to allow one to be here part-time almost tax free, and to continue to shelter investment income from western tax authorities. As part of my expat practice, I am exploiting diplo contacts I have in Ghana and Romania for this purpose. Weird selections but neither is unstable or seeing a big increase in immigration. Depends on thier tax regimes and investment requirements though.

  37. Comrade Nom Deplume says:

    [36] yo’me

    Sounds like you are already partially covered, especially if your other passport is to a stable country that offers tax benefits versus the US.

    There are still tax implications to renouncing (e.g., HEART Act exit tax), but unless you are Bill Gates, that tax can be greatly reduced if one knows how.

  38. Mr Hyde says:

    Two Faces: Demystifying the Mortgage Electronic Registration System’s Land Title Theory

    Christopher Lewis Peterson
    University of Utah – S.J. Quinney College of Law

    Hundreds of thousands of home foreclosure lawsuits have focused judicial scrutiny on the Mortgage Electronic Registration System (“MERS”). This Article updates and expands upon an earlier piece by exploring the implications of state Supreme Court decisions holding that MERS is not a mortgagee in security agreements that list it as such. In particular this Article looks at: (1) the consequences on land title records of recording mortgages in the name of a purported mortgagee that is not actually mortgagee as a matter of law; (2) whether a security agreement that fails to name an actual mortgagee can successfully convey a property interest; and (3) whether county governments may be entitled to reimbursement of recording fees avoided through the use of false statements associated with the MERS system. This Article concludes with a discussion of steps needed to rebuild trustworthy real property ownership records.
    …..Both the MERS-as-an-agent and the MERS-as-an-actual mortgagee theories have significant legal problems. If MERS is merely an agent of the actual lender, it is extremely unclear that it has the authority to list itself as a mortgagee or deed of trust beneficiary under state land title recording acts. These statutes do not have provisions authorizing financial institutions to use the name of a shell company, nominee, or some other form of an agent instead of the actual owner of the interest in the land. After all the point of these statutes is to provide a transparent, reliable, record of actual—as opposed to nominal—land ownership.

    Conversely, if MERS is actually a mortgagee, then while it may have authority to record mortgages in its own name, both MERS and financial institutions investing in MERS-recorded mortgages run afoul of longstanding precedent on the inseparability of promissory notes and mortgages.

    …..As a practical matter, the incoherence of MERS’ legal position is exacerbated by a corporate structure that is so unorthodox as to arguably be considered fraudulent. Because MERSCORP is a company of relatively modest size, it does not have the personnel to deal with legal problems created by its purported ownership of millions of home mortgages. To accommodate the massive amount of paperwork and litigation involved with its business model, MERSCORP simply farms out the MERS, Inc. identity to employees of mortgage servicers, originators, debt collectors, and foreclosure law firms.22 Instead, MERS invites financial companies to enter names of their own employees into a MERS webpage which then automatically regurgitates boilerplate “corporate resolutions” that purport to name the employees of other companies as “certifying officers” of MERS.23 These certifying officers also take job titles from MERS stylizing themselves as either assistant secretaries or vice presidents of the MERS, rather than the company that actually employs them. These employees of the servicers, debt collectors, and law firms sign documents pretending to be vice presidents or assistant secretaries of MERS, Inc. even though neither MERSCORP, Inc. nor MERS, Inc. pays any compensation or provides benefits to them. Astonishingly, MERS “vice presidents” are simply paralegals, customer service representatives, and foreclosure attorneys employed by other companies. MERS even sells its corporate seal to non-employees on its internet web page for $25.00 each.24 Ironically, MERS, Inc.—a company that pretends to own 60% of the nation’s residential mortgages—does not have any of its own employees but still purports to have “thousands” of assistant secretaries and vice presidents.25

    …..Typically, the same person holds both the note and the deed of trust. In the event that the note and the deed of trust are split, the note, as a practical matter becomes unsecured. Restatement (Third) of Property (Mortgages) § 5.4. Comment. The practical effect of splitting the deed of trust from the promissory note is to make it impossible for the holder of the note to foreclose, unless the holder of the deed of trust is the agent of the holder of the note. Id. Without the agency relationship, the person holding only the note lacks the power to foreclose in the event of default. The person holding only the deed of trust will never experience default because only the holder of the note is entitled to payment of the underlying obligation. Id. The mortgage loan became ineffectual when the note holder did not also hold the deed of trust.41

    http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1684729

  39. Mr Hyde says:

    The good news is that we can all purchase an official MERS Corporate Seal for $25 and start recording our own documents with MESR authority!!! We can all record our own Release of Mortgage!!!!

  40. Mr Hyde says:

    Make 29

    The only way to get out of this huge hole we dug ourselves is economic growth. We need to increase our population to 365-380M over the next 5 years.

    I have to disagree with you on that point. Growth only works when you have readily available excess resources. We are at or past the point of decreasing returns (i.e. EROEI) for most resources. The only long term solution would be a steady state economy.

  41. Mr Hyde says:

    From the same link

    If the growing line of cases asserting that MERS is neither a mortgagee nor a deed of trust beneficiary is correct, then courts must soon confront profound questions about the very enforceability of MERS’ security agreements. … There is a compelling legal argument that loans originated through the MERS system fail to create enforceable liens.

  42. Mr Hyde says:

    ….The mortgage industry has premised its proxy recording strategy on this separation despite the U.S. Supreme Court’s holding that “the note and the mortgage are inseparable.”66 If today’s courts take the Carpenter decision at its word, then what do we make of a document purporting to create a mortgage entirely independent of an obligation to pay? If the Supreme court is right that a “mortgage can have no separate existence”67 from a promissory note, then a security agreement that purports to grant a mortgage independent of the promissory note attempts to convey something that cannot exist.68

    While this argument will surely strike a discordant note with the mortgage bankers that invested billions of dollars in loans originated with this simple flaw, the position is consistent with a long and hitherto uncontroversial line of cases. Many courts have held that a document attempting to convey an interest in realty fails to convey that interest when an eligible grantee is not named.69 Courts all around the country have long held: “there must be, in every grant, a grantor, a grantee and a thing granted, and a deed wanting in either essential is absolutely void.”70
    ….Nonetheless, in Chauncey, the trial court, intermediate appellate court and New York’s highest court all agreed that the attempt to convey an “in blank” mortgage failed.78 The Court of Appeals explained, “No mortgagee or obligee was named in [the security agreement], and no right to maintain an action thereon, or to enforce the same, was given therein to the plaintiff or any other person. It was, per se, of no more legal force than a simple piece of blank paper.”79

  43. Orion says:

    Why is El-Erian whoreing himself with multiple appearances on cnbc?

  44. toomuchchange says:

    So it seems several of you agree with the plan to give American jobs to replacements — some to immigrants coming here to work and some jobs going overseas.

    Do you think that can work over time?

    What will become of the 300 million Americans here? And how will America stay a first world country, if there’s a veneer of rich owners at the top, a small middle class and the rest of the US is left to fight over scraps?

    If Americans consumers can’t afford to buy anything, how does business succeed?

    How can we survive without jobs?

  45. Comrade Nom Deplume says:

    When even your fans say you aren’t the right person, that has got to be bad:

    “David recently offered $1 million to anyone who could streak in front of Obama with Battlecam.com, the name of David’s competition Web site, written on his or her chest and shout “Battlecam” six times. . . .

    Asked why he chose Obama as the target, David had earlier told CNBC that although he is an Obama fan, it’s because of the president’s global reach.

    “I have nothing against him, I think he’s an awesome human being, I really do. He just happens to be the wrong president at the wrong time,” David said.

    The wrong president at the wrong time. Couldn’t have said it better myself.

  46. willwork4beer says:

    #22 Mr. Wanta

    Didn’t make it out to RiverHorse on Saturday, went to Triumph instead. Did you try the Imperial Stout while you were there? I thought it was outstanding.

  47. It is amazing to hear all of the debate that surrounds these issues. What a good time to be a first time home buyer.

  48. toomuchchange says:

    #23 Firestomik

    I was referring not just to people granted temporary work visas but to green card holders as well.

    There were over a million green cards issued in 2009.

  49. JJ says:

    OK totally off topic question. Why are people crazy?

    I had a neighbor yesterday who runs an at home CPA practice, which he is not allowed that brings clients in 16 hours a day for four months a year with cars all over and in front of my house which I ignore because he is a nice guy. Out of blue goes to me this week I want to talk to you about you pool pump you run it ever day around 3pm and I like to sit out and relax at that time can you run it in middle of night so as not to disturb me

    I then answer, you want me to get up in middle of night to run pool pump? He goes don’t you have a timer I say no, then he goes why don’t you hire an electrician and install one. I said that is expensive. Then he goes why don’t you buy a new pool pump and maybe it is a little quieter, I go that is like $500 bucks and my pool pump is two years old.

    Then I finally go to guy and say look I can’t set up any pump to run on auto and reason pool pump runs at three pm is you tree fills my pool up with pine needles as it hangs above pool and if it runs on auto and no one is there you needles jams my filter and will burn out motor, I need to empty basket.

    Then he goes why don’t you skin pool first before swimming I said we do but your little needles fall in pool constantly. Then he goes why don’t you get a solar cover to catch needles and take off before use. I say sounds great I am at work at 3pm weekdays so when my little kids want to go swimming while you are sitting home relaxing can they call you to come over and take the solar cover off? Then he goes maybe we can think of alternative solutions. Finally, I go if you trim tree the issue is solved, then he goes no I mean your alternative solutions.

    OK, I can make a single phone call and have his whole business stopped as he is operating a commerrical business in a residential zone. Meanwhile I don’t want WWIII as he is on top of me. What the heck is with these people?

    My wife said I should have just said considering your home business I don’t think you want to go there. Little does he know pump is only on when kids are in pool, the drone of the pump at 3pm would be replaced with the screams of kids.

  50. toomuchchange says:

    Let’s have some humor from fafblog:

    Wednesday, September 15, 2010

    mistakes were made

    “If you had to do it all over again what would you do different?” says me.
    “Nothing!” says Giblets. “Giblets has no regrets!”
    “I think I’d travel more or go back to art school or maybe not drive the car off that cliff back when you said ‘Hey Fafnir let’s drive this car off that cliff’,” says me.
    “Oh, so we’re back to this again!” says Giblets. “That was like, eight whole seconds ago. Let it go already! You’re livin in the past!”
    “Or at least maybe I’d pick a smaller cliff,” says me.”This’s been a really long cliff.”
    “Y’know what your problem is?” says Giblets. “You’re always looking back. ‘Oh boo hoo, remember the Good Ol’ Days, back when we lived on the ground and we weren’t on fire.’ Well Giblets lives for today, and we’re air people now! We live in the air! At least for the next several seconds.”

    “Of course when you think about it I guess you can’t really blame this on any one decision,” says me. “Driving off the cliff, running off the cliff, falling off the cliff – it’s a pretty complicated tangle of factors there.”
    “I mean if we made any mistake it was not falling enough,” says Giblets. “Because obviously we should’ve started out falling sideways, where there’s just a ton more room. Giblets assumes future generations will develop the relevant technology.”
    “Maybe I just shoulda stayed home today,” says me. “Maybe I shoulda stayed in last year. Last year wasn’t a bad year, I coulda stayed in last year for a couple more years.”

    “In the meantime Giblets proposes a system whereby we fall out ahead of ourselves, and then dig a hole in the ground ahead of us for us to fall into to maintain our fall,” says Giblets. “That way we preserve the fall – not just for us, but for the children.”
    “But I’m not real sure why I moved into last year in the first place,” says me. “I mean I was pretty happy in the year before that, and the year before that was even nicer. And now that I think about it I really coulda spent the last twenty years or so living in that day in third grade when I kicked the winning ball in kickball and went on to win the school spelling bee.”

    “Years from now man will have left the earth to assume his rightful place falling repeatedly to the earth,” says Giblets, “with great buildings and cities built in the sky itself, to defy the very laws of gravity with humanity’s unconquerable zeal for life!”
    “Really, what I think it is, is I never shoulda grown arms and legs,” says me. “I woulda made a great clam.”
    “Countless millions will die,” says Giblets. “It’s really going to be pretty terrible.”
    “Oh well,” says me. “Maybe next time.”
    “This ground’s gonna swerve first,” says Giblets. “You can see it in its eyes.”

    http://fafblog.blogspot.com/

  51. still_looking says:

    You don’t know crazy til you hear the bullshit Mr&Mrs. still_looking have just been through. With a family member, no less. Every day is a new lesson.

    sl

  52. Juice Box says:

    re: #50 JJ – start playing Jimmy Buffett music at a decent volume at 3PM. That will shut him up.

  53. Mr Hyde says:

    SL

    What was the date for the SL GTG?

  54. Mr Wantanapolous says:

    ww4b [47],

    I may have just missed you at Triumph. Only had the Amber Ale there. Great place.

  55. still_looking says:

    Hyde, 23rd Oct

    sl

  56. Anon E. Moose says:

    Hyde [39];

    I’m gonna have to read that paper after lunch. Those quotes already ruined my morning.

  57. still_looking says:

    packing is fun
    packing is fun
    packing is fun
    packing is fun….

    say it enough times, right? Feh.

    sl

  58. JJ says:

    Funny stupid guy loves 70’s music so Buffet might make him happy. He just pissed me off. I was already pissed off as I have Jets tickets that with PSL cost me an arm and a leg but my section has a very low ticket price if you don’t count the PSL fee.

    I said to a few buddies I am looking for someone to go with to two games, face value of ticket I eat PSL fee. Two buddies go great, meanwhile two very borderline people I know go if you can’t make Dolphins or Packers game I will take your tickets. So finally I tell the guy look I go to games but if I can’t make one I may sell you mine for what I pay $425 a pair. Now guy is like huffy . People are weird. I even threw guy a bone saying I also have great UD seats as a back up on 35 yard line I can give you at face, guy is like but I want to sit in your downstairs seats, finally I was like whatever I will get back to you. People are so pushy today, neighbor wants me to spend a few hundred so he can read his paper a little more quiet, guys want me to sell them tickets for around 400 hundred less than stubhub.

  59. Mikeinwaiting says:

    SL Bull it s*cks, starting that joyous task next week if my new rental goes ok , we are still negotiating on price. No buying dumped that idea for now, maybe next year. Prices only have 1 way to go , no hurry.

  60. still_looking says:

    Lucky you! I am packing best as I can, but still trying to reconcile the ‘eff’d up family member who must be having a midlife crisis or something… it’s sickening to watch.

    She has no idea how sickeningly pathetic she appears. Other folks see it pretty clearly but are too kind and well-mannered to drag her back to reality.

    sl

  61. Mr Hyde says:

    Mikeinwaiting, Wag

    Kroghs tomorrow night????

  62. Mr Hyde says:

    Moose,

    Just trying ot keep you on your toes :)

    If the Supreme court is right that a “mortgage can have no separate existence”67 from a promissory note, then a security agreement that purports to grant a mortgage independent of the promissory note attempts to convey something that cannot exist.68

  63. Al Gore says:

    Hyde,

    “If the growing line of cases asserting that MERS is neither a mortgagee nor a deed of trust beneficiary is correct, then courts must soon confront profound questions about the very enforceability of MERS’ security agreements. … There is a compelling legal argument that loans originated through the MERS system fail to create enforceable liens.”

    Whoah. As you know I have a MERS security agreement. The Texas hedge becomes more appetizing. I could HELOC out all my equity and then if and when the SHTF not just walk away but live for free for years. Its just a waiting game now to see how this comes together. This is a big deal.

  64. JJ says:

    http://www.maltzauctions.com/auction_detail.php?id=146121

    wow is that a big expensive home up for auction

  65. Lamar says:

    30 year (31)-

    I think you know as well as I that the experience you related in your post is prima facie evidence of a market that is completely broken and dominated by fraud and other sundry misrepresentations.

  66. Mr Hyde says:

    How much do the banks owe all of the various counties that their RE transactions took place in? Virtually every country requires transaction fee’s when a note is recorded. One of MERS primary selling points was the ability to circumvent these fees. I wonder if the states could form a class action suit against the banks to collect what is probably a large chunk of change, especially now that town and state incomes are dwindling.

  67. Lamar says:

    The real estate industry right now is in essentially a Black Hawk Down/Mogadishu-type rathole.

  68. Lamar says:

    plume (32)-

    The easy answer is because the gubmint’s singled you out and is now targeting you.

    “Cannot remember who was castigating me about being the only one that cared about this report, but it begs the following question (if the lurker cares to take up this challenge): If no one cares about this report, why is the administration suppressing it?”

  69. Mr Hyde says:

    Al 64

    Its all very tangled at this point, but its more likely that one of the parties involved in the chain related to your mortgage would end up with an unsecured loan against you and be able to sue you. Of course you could just as easily wind up with the ability to sue the bank for fraudulent conveyance or something similar.

    In the end its a Faustian victory at a minimum and very likely a Pyrrhic victory on top of that.

  70. Mr Hyde says:

    Clot/lamar,

    Then 2 of the most valuble things to hold at the moment are rifles and body armor. Got kevlar?

  71. Mr Hyde says:

    Nom, Clot

    We should chat at the next GTG. I have recently learned a few things which you would both find interesting.

  72. Lamar says:

    orion (44)-

    Because he is a whore. As are all the bags of human gristle at PIMPCO.

  73. Mr Hyde says:

    No problems here:

    The municipal pension crisis is like the social security crisis but worse: Unlike the federal government, cities cannot legally go into debt.

    This imminent disaster is described in a new paper out by Robert Novy-Marx and Joshua Rauh [PDF].

    Novy-Marx and Rauh say most cities are burdened with unfunded liabilities, which are ignored by common accounting methods (see chart). Unfunded liabilities equal around $15,000 per household nationally, and up to $41,000 per household in some cities.

    NYC:
    Unfunded liability: $122.2 billion
    Unfunded liability per household: $38,886
    Solvency horizon: 2021

    Boston:
    Unfunded liability: $7.5 billion
    Unfunded liability per household: $30,901
    Solvency horizon: 2019

    Chicago:
    Unfunded liability: $44.8 billion
    Unfunded liability per household: $41,966
    Solvency horizon: 2019

    Philadelphia:
    Unfunded liability: $9 billion
    Unfunded liability per household: $16,690
    Solvency horizon: 2015

    By the way, Philly is #1 on the list of the first 10 cities to run out of money.

    http://www.businessinsider.com/city-pensions-run-out-of-money-2010-10#ixzz12AAyCbum

  74. Lamar says:

    jj (59)-

    Now might be an excellent time for you to become a professional ticket scalper.

  75. Lamar says:

    hyde (72)-

    If it has anything to do with straw man redemption schemes, count me out. :)

  76. Al Gore says:

    “Many now claim that government deficits and Fed easing prevented a repeat of the Great Depression. From my perspective, calamity was not averted but merely delayed. The price for the reprieve will be a far more severe downturn, which I now think will surpass the Great Depression.”

    Peter Schiff today.

    Thats a bold statement.

  77. Mr Hyde says:

    Moose

    A transfer for land must have a Grantor, Grantee, and beneficial interest. Per MERS own claims they have no beneficial interest and no economic interest. As such it cannot be a Grantee. A defective trust assignment is void ab-initio and hence legally, it is a blank piece of paper .

    Of course this is just my lay understanding, although i did start the day off with a rather nice Bloody Mary

  78. Mr Hyde says:

    Clot,

    Nope, Its not a scheme of any sort just some obscure info i came across but is relevant.

  79. Lamar says:

    What happened to the good old days, when you could win the trust deed to someone’s home in a poker game?

    Bring back frontier justice!

  80. JJ says:

    My biggest ticket scalp ever was in the 1980s, I bought a bunch of Billy Joel tickets for various nights at a Garden tour and sold them all. Billy was living with Christie in that house from the “Glass Houses” album, yup that was his real house and back was all glass and they just took a picture in his back yard pretending to throw a brick. My buddy was his next door neighbor so I got the hook and always bought as much as I could cause he always hooked me up with a wrist band. Anyhow on way to concert bro realizes I got yesterdays tickets. I mixed them up cause I had like 20. So here I am no show no money. So plan is to get to penn have dumb tourist looks on a face and for me to wander around with two tickets and wait for sleezy scalpers. Well this sleezy scalper with a got tickets sign goes to me what up with tickets I go my two friends missed their train and now I have two extra tickets, guy goes how much do you want so slowly I look at tickets and go well it says (whatever amount on tickets) is that ok? Scalpers eyes lit up and he shoved the money in my hand as if to do it before I changed my mind, I slowly walked towards exit and took off like crazy, saw a great band at the bitter end and drank till we were out of money and walked back to penn, I wonder if scalper ever realized it or if he just sold it and next person got suckered, that was before bar codes so who know they may have worked. OK, so money involved was peanuts, but selling expired tickets to a sleezy scalper in Pen in the 1980’s involved a lot of balls and good luck.

    Afterwards I go to bro why did I have to be bait, goes you are younger and less suspecious plus I told you to run my way in case something went wrong and I had to stand like 50 feet back as I had the switchblade in case the guy tried to chase you and shoot or stab you. Hey good thing I ran track. Funny how in 1980s it was normal for law abiding 18-20 year olds to carry switchblades to city. Tell you the story later about the willding incident on new years eve 1980 in times square. That wilding stuff was sick and if you were about to get “wilded” on in a 30 on two cornering. you need to go all bernie goetz gettho nuts to turn the odds. Well that story for later.

    BTW not scalping Jets tickets, just people don’t realize for Jets/Giants there are only 10 games, two wasted preseason game and the last two games of year is also usually worthless do to weather or team is already in it or out of it. The six money games you need to sell if you can’t make it for double or triple face to break even. Everyone on stubhub understands this. Friends don’t which is why I sell the six big games to strangers if I can’t make it. Last night’s game I sold for $800 for the pair and they cost me $400, meanwhile that is zero profit as it just made up for one of the preseason games I had to eat. Guy who bought them got wet as shit.

    Lamar says:
    October 12, 2010 at 12:40 pm

    jj (59)-

    Now might be an excellent time for you to become a professional ticket scalper.

  81. leftwing says:

    JJ

    People are idiots. I can’t stand this ‘it takes a village’ attitude in the suburbs.

    I’ve been pushed too far by neighbors who think they have a vote in everything that occurs in my household while blatantly disregarding the bright line ordinances they are breaking. Maybe it’s sociopathic but my responsibilites to them start after my property line.

    Re: the tree, I like your wife’s approach. You can also check the codes in your town. My town gives ‘joint ownership’ of a tree to neighbors if more than 50% of the dripline is in another’s yard. In this case you can shave every branch off top to bottom at the property line. Just to pi$$ him off and bring him back to reality.

    Or call your insurance company and get a letter that in their opinion the tree represents a hazard to your property or family. Insurance cos are more than willing to do that (it protects their backside) and it can be fun to watch his reaction when you cover letter it to your neighbor putting all the liability on him.

  82. Lamar says:

    (82)-

    Ladies and gentlemen, meet the Captain Stubing of Financial Ship America.

    “Scalpers eyes lit up and he shoved the money in my hand as if to do it before I changed my mind, I slowly walked towards exit and took off like crazy, saw a great band at the bitter end and drank till we were out of money and walked back to penn, I wonder if scalper ever realized it or if he just sold it and next person got suckered, that was before bar codes so who know they may have worked.”

  83. Mr Hyde says:

    The Crisis in Local Government Pensions in the United States*
    ROBERT NOVY‐MARX, UNIVERSITY OF ROCHESTER AND NBER
    JOSHUA RAUH, KELLOGG SCHOOL OF MANAGEMENT AND NBER
    October 2010
    Abstract

    We calculate the present value of local government employee pension liabilities as of June 2009 for approximately 2/3rds of the universe of local government employees. Using local government accounting methods, the total unfunded liability in these areas is $190 billion or over $7,000 per municipal household. When government accounting is corrected by discounting already‐promised benefits at zerocoupon
    Treasury yields, the total unfunded obligation is $383 billion or over $14,000 per local
    household. If on a per‐member basis the unfunded liability is the same for the 1/3rd of workers covered by municipal plans not in our sample, the total unfunded liability for all municipal plans in the U.S. is $574 billion. This unfunded promise is above and beyond the roughly $3 trillion (or almost $27,000 per household) unfunded liability of all state‐sponsored pension plans in the U.S. Many U.S. cities are therefore carrying substantial off‐balance‐sheet debt in the form of unfunded pension obligations. We also identify 6 major municipalities whose current pension assets would only be sufficient to pay already‐promised benefits through 2020, and 20 whose current pension assets would only be sufficient to pay already‐promised benefits through 2025.

    http://www.kellogg.northwestern.edu/faculty/rauh/research/NMRLocal20101011.pdf

  84. leftwing says:

    “The long-term, fixed-rate mortgage has emerged as an economic shock absorber for millions of households and thousands of neighborhoods during the current downturn”

    Uh, no.

    The mortgage isn’t the shock absorber, it is the common sense of the borrower to demonstrate adequate savings, liquidity, and income to afford the house in question.

    Any, ANY, fixed rate traditional mortgage holder could have gone the ARM or option ARM route.

    They didn’t.

    Likewise, the chimpanzees who purchsed houses they could not afford caused the bubble and subsequent deflation, not the mortgages they took.

    Mortgages are inanimate pieces of paper. Grey matter matters.

  85. 1987 Condo Buyer says:

    JJ,

    I’d hold the threatened town action until the start of the tax season. If you indicate it now he has time to figure a defense or alternate plan/action. If you wait till mid season, I think your leverage is optimized. I’d play that card, big time.

  86. Pat says:

    sl, I know you don’t get questions like this often, ‘cept from me, and it seems like you need a nice peaceful kind of respite from packing. So here goes.

    Friends of mine have a teen who took a handful of aspirin and tylenol a week ago. Mom was picking up Grandpa at the airport, kid called and said come home I’m puking. Teen says she regretted it immediately, was on phone with boyfriend who’s away at college all night and now has no clue why in the hell she did it and yada yada what a horrible mistake it was.

    ER admitted her, hospital had her put in pysch-at risk ward since then (almost a week) with some scary, scary types. Mom has no written eval or diagnosis, and personnel constantly ask kid if she wants meds. Kid refuses, parents are not consulted.

    Mom wants kid out to get second opinion at better hospital in DC re meds. Place refuses to discharge.

    Is this common?

  87. leftwing says:

    “Past needs should not dictate current behavior.”

    Shore:

    “It’s a poor sort of memory that only works backward”
    -The Red Queen, Alice in Wonderland.

  88. Mr Hyde says:

    Just for fun, go to the following website (Morris county public records):
    http://mcclerkweb.co.morris.nj.us/or_wb1/or_sch_1.asp

    In the “Enter Party Name ” field enter “MERS”

  89. dan says:

    You can always find the right combo for selling tickets. For Yankees game 3 Saturday, I bought 2 tix on EBAY for $349 including shipping. Sold them on Stubhub 4 hours before gametime for $349 each. One hour later, I go back on and buy 2 tix on Stubhubfor $150 each in section I wanted to sit in the first place..

  90. Al Gore says:

    Re: the recess hearings of the Democrat plan for 401ks.

    testimony from the hearing…

    All jobs must come with benefits that provide a steady retirement income for life. As currently
    structured, Social Security is not enough. Relying primarily on tax incentives to encourage employers to
    provide benefits or individuals to save is ineffective and helps those who least need it.
    • Investment and longevity risks must be spread, not just shifted from employers to workers. Here too,
    government can play a role, and so can multiple-employer plans.
    • Responsibilities must be shared. A do-it-yourself system does not work, but neither does a system that
    places the entire burden on employers. Government must also be involved, especially to offset the cost of
    contributions for lower-income workers.
    • Finally, the key to achieving adequacy is maintaining steady contributions and preserving funds for
    retirement by preventing pre-retirement loans and withdrawals and by limiting fees.

    Its a brave new world.

  91. Juice Box says:

    Hyde- according to the CEO of MERS all is fine and dandy, and there is nothing to see.

    http://www.kansascity.com/2010/10/09/2293504/statement-by-ceo-of-mortgage-electronic.html

  92. Mike says:

    30 Year No. 31 Lamar No. 66 Maybe appraisals should be based on what previous offers were made now that would be more realistic, only if they were made public

  93. JJ says:

    I agree, first car of his clients that parks in front of my house I think I will have an issue he needs to resolve that involves tree trimming his stupid tree. Maybe 1/31 the day W2s are mailed so he had other issues to deal with.

    Dan stubhub now has an alert feature, you can put in super low prices for tickets and when it gets hit you are notified. People don’t know or use declining prices without monitoring and get screwed and you can snatch them up.

    1987 Condo Buyer says:
    October 12, 2010 at 1:16 pm

    JJ,

    I’d hold the threatened town action until the start of the tax season. If you indicate it now he has time to figure a defense or alternate plan/action. If you wait till mid season, I think your leverage is optimized. I’d play that card, big time.

  94. Poltroon says:

    mike (94)-

    Not a good idea.

  95. Poltroon says:

    Why base appraisals on unaccepted offers? Offers are non-binding and there’s no vetting procedure. The whole process would be wide open to the influence of those submitting offers solely for the purpose of influencing comps.

  96. Al Gore says:

    In case anyone is wondering if they have a MERS mortgage they can check the database here.

    It may also be prudent to print the documentation found on the MERS database for your records because banks have a funny way of losing information and the burden of proof would be yours in court.

    Heres the link: https://www.mers-servicerid.org/sis/

  97. Comrade Nom Deplume says:

    [92] al gore

    “testimony from the hearing…

    All jobs must come with benefits that provide a steady retirement income for life. As currently structured, Social Security is not enough. Relying primarily on tax incentives to encourage employers to provide benefits or individuals to save is ineffective and helps those who least need it. . . .”

    Yeah, this is going to end well. As I have said many times before, none of this works without protectionism, and I don’t mean just QE or other nibbling at the edges measures. For this to fly and not be a complete jobkiller, you have to seal the borders.

    Of course, nothing getting in means nothing getting out.

  98. 30 year realtor says:

    #94-Comps are all about verification. The offer I have is not representitive of market value, it has not even been counter offered.

    My earlier comment was about incompetence in valuation from the average Realtor or appraiser.

  99. Comrade Nom Deplume says:

    [69] lamar

    That explains the 30 day letter I got.

  100. Poltroon says:

    plume (101)-

    If they try to take you down, take as many of them with you as you can.

  101. Poltroon says:

    Note to self: remove Gadsden flag from front porch.

  102. Comrade Nom Deplume says:

    [50] jj

    Now you have some appreciation about why people in the rest of the nation hate people from the greater metropolitan NYC area.

    If your neighbor took that attitude into some other parts of the country, he’d find life very uncomfortable before long.

  103. Caveman says:

    Hey guys, question about MERS.

    What does this mean for houses which were already sold? I searched for the house we sold and it has a MERS listing. Our bank is a small bank that apparently never got involved with this MERS debacle, but the buyers bank apparently went that route.

    Are we in any danger of having the house being forced back upon on us? Can the transaction be “undone”? Are we on the hook for anything?

  104. Mr Hyde says:

    Well look at this, things are getting a little more “mainstream” now.

    So with the chain of documentation now in question, and trustee ownership in question, here is one legal scenario, according to Prof. Levitin:

    The mortgage is still owed, but there’s going to be a problem figuring out who actually holds the mortgage, and they would be the ones bringing the foreclosure. You have a trust that has been getting payments from borrowers for years that it has no right to receive. So you might see borrowers suing the trusts saying give me my money back, you’re stealing my money. You’re going to then have trusts that don’t have any assets that have been issuing securities that say they’re backed by a whole bunch of assets, and you’re going to have investors suing the trustees for failing to inspect the collateral files, which the trustees say they’re going to do, and you’re going to have trustees suing the securitization sponsors for violating their representations and warrantees about what they were transferring.

    Josh Rosner, of Graham-Fisher, put the following out in a note today, claiming violations of pooling and servicing agreements on mortgages could dwarf the Lehman weekend:

    Nearly all Pooling and Servicing Agreements require that “On the Closing Date, the Purchaser will assign to the Trustee pursuant to the Pooling and Servicing Agreement all of its right, title and interest in and to the Mortgage Loans and its rights under this Agreement (to the extent set forth in Section 15), and the Trustee shall succeed to such right, title and interest in and to the Mortgage Loans and the Purchaser’s rights under this Agreement (to the extent set forth in Section 15)”. Also, an Assignment of Mortgage must accompany each note and this almost never happens.

    We believe nearly every single loan transferred was transferred to the Trust in “blank” name. That is to say the actual loans were apparently not, as of either the cut-off or closing dates, assigned to the Trust as required by the PSA.

    Rather than continue to fight for the “put-back” of individual loans the investors may be able to sue for and argue that the “true sale” was never achieved.

    Quite the can of worms. Anyone who says that the banks will fix all this in a few months is seriously delusional.

    http://www.cnbc.com/id/39634568

  105. Mr Hyde says:

    Al, CLot

    Even better then being foreclosure proof!!! The Trusts owe you your money back!!!

    The mortgage is still owed, but there’s going to be a problem figuring out who actually holds the mortgage, and they would be the ones bringing the foreclosure. You have a trust that has been getting payments from borrowers for years that it has no right to receive. So you might see borrowers suing the trusts saying give me my money back, you’re stealing my money.

  106. nj escapee says:

    Hyde 107, Is that the type of paradox Christopher Lloyd spoke of in Back to the Future?

  107. Mr Hyde says:

    NJ escapee

    All i know is that I am one hell of a sucker for not levering up for a fancy pad during RE mania! :(

  108. nj escapee says:

    son of a gun

  109. Anon E. Moose says:

    Hyde [109];

    Tell me about it…

  110. Al Gore says:

    Looks like France has 3.5 million hitting the streets on strike. Cant wait until the US shuts down like this. Should make for good tv.

  111. Poltroon says:

    Equities now pricing for absolute perfection, as FOMC minutes reveal 1 quadrillion in QE is no big deal to Bergabe and his committee of shysters.

  112. Poltroon says:

    11/3- sell the news. Then, sell some more.

  113. chifi in denver says:

    Out here at the Sheraton in Denver. The little things give such joy.

    They have a green initiative where they give you a $5 voucher for skipping housecleaning for a day….I grab the voucher and go down the pub…the have pints of Guiness for $5.95 that are upsized to 20 oz……..$0.95 for 20 oz of well poured Guiness….fcuking classic….aint NYC….

  114. chifi in denver says:

    I disagree……that said….earnings are coming out over the next 3 weeks and I may eat those words…..plus the banks are pure shite…

    Poltroon says:
    October 12, 2010 at 3:39 pm
    Equities now pricing for absolute perfection

  115. Lamar says:

    chi (115)-

    Anybody try to sell you meth or invite you to a donkey show yet?

  116. Mr Hyde says:

    Nom, any other legal beagles

    My understanding is that the majority of the trusts fall under NY State Trust law. Is that accurate and would that preclude federal intervention?

  117. Lamar says:

    Chi (116)-

    Since when do stock prices have anything to do with earnings?

    Haven’t you got the memo? A quadrillion in QE, coming soon. Bergabe and Co. are going to buy all the handwritten IOUs I’m still holding from backgammon debts people owe me from college.

  118. Lamar says:

    These dolts don’t realize they’re already stimming inflation in all the wrong things. They also don’t realize that the economy is dead, and the dead can’t be brought back to life.

    WASHINGTON (Reuters) – Federal Reserve officials believed in September the struggling recovery might soon need more help, and they discussed several ways to provide support, including the possible adoption of a price-level target.

  119. Comrade Nom Deplume says:

    [118] hyde

    Not my area. I can research it, but I don’t know off the top of my head.

  120. Lamar says:

    Brilliant. So you have to pay 52K to some Bolshevist rat nest like Princeton to have their Econ dept. fill your head full of shit like this?:

    “In minutes of the its last policy-setting session held September 21, the Fed said officials discussed several approaches to aiding the economy but focused on buying additional longer-term Treasury securities and ways to nudge the public into expecting higher levels of inflation in the future.”

  121. Lamar says:

    Congress should simply rewrite FedCo’s mandate to simply state that its purpose is to simultaneously promote and ignore the formation of asset bubbles.

  122. Anon E. Moose says:

    Lamar [122];

    Fed to plebes: BOHICA. New career path – learn to fly helicopters for Ben. I’d look good in a black one; very slimming.

  123. JJ says:

    I would be the richest kid in the world if my Mom paid me $5 bucks for every day my room was dirty. If you piss on the floor in your room do you get a second voucher?

    chifi in denver says:
    October 12, 2010 at 3:43 pm

    Out here at the Sheraton in Denver. The little things give such joy.

    They have a green initiative where they give you a $5 voucher for skipping housecleaning for a day….I grab the voucher and go down the pub…the have pints of Guiness for $5.95 that are upsized to 20 oz……..$0.95 for 20 oz of well poured Guiness….fcuking classic….aint NYC….

  124. Al Gore says:

    Im really thinking hard about dumping my IRA.

  125. Sterling Grey Matters says:

    Proof that JJ still lives with his mom.

    (Sorry JJ – I just couldn’t help myself – nothing personal – it’s just that the barn doors were left wide open).

    JJ says:
    October 12, 2010 at 4:21 pm
    I would be the richest kid in the world if my Mom paid me $5 bucks for every day my room was dirty. If you piss on the floor in your room do you get a second voucher?

    chifi in denver says:
    October 12, 2010 at 3:43 pm

    Out here at the Sheraton in Denver. The little things give such joy.

    They have a green initiative where they give you a $5 voucher for skipping housecleaning for a day….I grab the voucher and go down the pub…the have pints of Guiness for $5.95 that are upsized to 20 oz……..$0.95 for 20 oz of well poured Guiness….fcuking classic….aint NYC….

  126. Yikes says:

    clot, have you seen this hooligan video from today?

    Serbia/Italy

    oh my

    http://www.youtube.com/watch?v=tO2aA0HtKsE

  127. Essex says:

    129. Someone should be like. OK cut the crap moron and take the dude out with a rubber bullet or two. He’s holding up play. Assh*le.

  128. Essex says:

    129. They’d taser his as if he did that crap over here. What a douche.

  129. Yikes says:

    now this is some justice:

    http://www.redlandsdailyfacts.com/news/ci_16309764

    A Victorville man who broke into a home Sunday was shot and killed by the homeowner.

    Jordan Smith, 24, died at Arrowhead Regional Medical Center in Colton, San Bernardino County sheriff’s officials said.

    Deputies received a call about 3 a.m. about a burglary alarm at a home in the 14100 block of Calle Contesa. They found Smith suffering from gunshot wounds inside the home.

    Deputies discovered Smith broke into the home while the residents were sleeping. The residents woke up when they heard their dogs barking.

    A man in the home confronted the burglar. Sheriff’s officials say Smith attacked the homeowner with a caustic material.

    The homeowner feared for his safety and the safety of his family, so he shot Smith.

  130. freedy says:

    Where is our Gov. and AG on this Foreclosure problem?

  131. Fast Eddie says:

    Post #31,

    Kids, go back and read that post. Do you believe me or not? Buyers, trust me when I say that you should feel almost embarrassed when you make an offer. You should have the feeling as though you’re trying to steal the f*cking house. If the realtor doesn’t want to put in the offer out of fear of offending someone, find one that will. You’re offer is on the table for 48 hours and is the best and final.

    If they write a nasty letter in response telling you how insulted they are, tell them the other two houses you bid on are much nicer at a lower price, no less, and doesn’t reek of cabbage and cat ur1ne. Just because the place is listed at $749,000 doesn’t mean you should feel satisfied and excited because the sellers accepted an offer $724,000. At that price, you overpaid and have an anchor tied to your leg for at least a decade barring a personal disaster. If the house is listed at $749,000, you should feel satisfied coming out of attorney review with a sale price of around 600K. Again, who you gonna believe, id1ots who do nothing but talk or a 15 year two time homeowner who can burn the m’fing mortgage note by this weekend?

  132. Al Gore says:

    I just sent a letter to Wells Fargo requesting the contact information for bank or investor that holds the note on my mortgage.

    Check this site out. They make it simple.

    http://action.seiu.org/page/speakout/wheresthenote

  133. Lamar says:

    yikes (129)-

    This is why you have to love soccer.

    England can’t even beat Montenegro. What a bunch of degenerate inbreeds.

  134. Lamar says:

    sx (130)-

    Hell, they abandoned the game. Hooligans win.

  135. Lamar says:

    sx (131)-

    That guy probably did “special projects” for Milosevic.

  136. Lamar says:

    US v. Colombia tonight. I’m not willing to torture myself watching it.

  137. still_looking says:

    Pat, 88

    They can hold her for 72 hours as this was a suicide attempt. If parents trying to have kid released, I would tell them to contact a doc from the hospital that they want her to go to and attempt to transfer her there.

    The simplest, albeit harsh method would be to contact the hospital administrator (or call the president of the hospital ) and explain that you (she) would prefer to have the child transferred and not have to involve lawyers and media.

    The key is to have an accepting physician (psychiatrist) at the other facility.

    Hope this helps.

    sl

  138. Fabius Maximus says:

    #20 HEHEHE

    I have a deal with a buddy, he hunts it and I smoke it.

    We are trying to get a pheasant Smoke going this weekend with some trout and vension.

  139. Mike says:

    Fast Eddie No. 134 YOU ARE ABSOLUTELY RIGHT!

  140. borat obama says:

    Last

  141. Fabius Maximus says:

    #136 Clot

    For me, thats a result. As for the Italy it reminds me of this one.

    http://www.youtube.com/watch?v=PcdnzeoBJT4

    The back-story here is that the r1ot police came and corralled the English and emptied the stadium of the Irish. Now its funny that the television feeds were cut as they were emptying, the stadium. Word has it, the r1ot squad lined up at the half way line. They opened the gates to the pitch for the hooligans and the back gates for the real fans trying to get out. Anyone who had a go on the pitch took a beating. Anyone arrested that night, instead of going to the local holding cells, were sent to the local prison because of the “numbers”. Now those populations were a little bit p1ssed as their soccer game was spoiled, and there were a few cellmates in there who were there, for their objections of all things English, (if you know what I mean). It was a long night for a few.

    Word is that C0mbat one eight will not be back to Dublin.

  142. nj escapee says:

    Google Plans Alternative Inflation Index Using Web Data

    http://www.cnbc.com/id/39626164

  143. Comrade Nom Deplume says:

    [141] fabius,

    My big concern with venison is disease. Admittedly, I know nothing except that there are diseased deer, so the idea of eating something that may have been dying of disease gives me pause (and yes, I am aware of the inconsistency of this reasoning vis a vis beef. Let’s skip that).

    Here’s your chance to educate me on something for a change. Is my concern a real issue, and if so, how do you deal with it?

  144. Comrade Nom Deplume says:

    [132] yikes

    “A Victorville man who broke into a home Sunday was shot and killed by the homeowner. . .”

    In NJ, Downstate NY, MA, or DC, it’s the homeowner that would be prosecuted.

    Everywhere else, reason prevails.

  145. Shore Guy says:

    Real estate in NJ is mostly terefah — unclean and unfit to be consumed.

  146. Shore Guy says:

    Some interesting stats about college cost ROI:

    http://www.payscale.com/education/average-cost-for-college-ROI

  147. Pat says:

    thx, sl

    good luck with the packing. get rid of anything that doesn’t make you happy when you look at it.

  148. Shore Guy says:

    ” get rid of anything that doesn’t make you happy when you look at it.”

    Indeed. Also, paint, refinish, or otherwise fix anything tha you can before moving in, otherwise one fac es the danger of growing used to it and not doing it.

  149. Shore Guy says:

    Hss anyone heard of this? I had not until tonight:

    http://nfl.fanhouse.com/2010/10/08/brett-favres-explicit-photos-unleash-legal-storm/

    Allegations of Brett Favre Explicit Photos Unleash Legal Storm

  150. Comrade Nom Deplume says:

    First of the Chilean miners steps onto the surface.

  151. Shore Guy says:

    Amazing.

  152. me@work says:

    Nom,

    You’ve got mail.

    sl

  153. me@work says:

    Shore, Pat,

    Thanks! Trying to ….. If you knew what we were dealing with you’d understand… what does a person do when their relative who professes to “love you like a daughter” then proceeds to stab us (me and spouse) in the back?

    Said stabbing comes in the form of verbal and email disparaging us on every imaginable level to family member and close friends,/i> that we would be seeing fairly regularly?

    sl

  154. me@work says:

    italic off

  155. Essex says:

    Hey did you hear, they rescued the Chilean miners!

    and this chick resigned.

    http://www.washingtonpost.com/wp-dyn/content/article/2010/10/12/AR2010101205658.html

  156. Outofstater says:

    #157 You set up boundaries to protect yourself and your spouse from the abuse. I think I would just shut down and not have anything to do with that person anymore and trust that the other family members and friends will consider the source of the disparagement and ignore it. Family member or not, you have rights too.

Comments are closed.