this is a great Discussion on blogtalkradio

blogtalkradio

David Dayen Virtually Speaking with Jay Ackroyd

http://virtuallyspeaking.ning.com/opensocial/ningapps/show?appUrl=http%3A%2F%2Fwww.blogtalkradio.com%2Fning%2FBTRNingProd.xml%3Fning-app-status%3Dnetwork&owner=2fjqf23hkcvxb
He says they need to reset the housing market by not foreclosing.


HAMP WAS BASICALLY CREATED BY THE BANKS SO THAT THE GOVERMENT WOULDN'T FORCE THEM TO WRITE DOWN THE MORTGAGE LOANS~

IT WAS WATERED DOWN.

ONE YEAR AND 8 MONTHS LATER, ONLY UNDER 500,000.  ANOTHER 700,000 WERE DENIED AND GIVEN A DEMAND PAYMENT (THAT'S ME:( )

FOR THE 700,000 PEOPLE IT MADE THEIR SITUATION WORSE!  THE FIRST TRIAL MOD READ AS A DEFAULT. 

BANKS WERE SUPPOSED TO TAKE 3 MONTHS, BUT THEY STRUNG PEOPLE ALONG A YEAR OR MORE AND THEN DENY WITHOUT EXPLANATION...

ASKING FOR DOC ABOVE AND BEYOND, VIOLATION OF HAMP RULES.

NOT ONE SERVICER HAS BEEN SANCTIONED FOR THIS! 

THEY GAVE PEOPLE FALSE HOPE!

THE INCENTIVES ARE TO FORECLOSURE.

BANKS DO NOTHING MORE THAN MODIFY A TOKEN AMOUNT OF LOANS AND CANCEL EVERYONE ELSE OUT.

PROMISES WERE MADE.  ITS HURTING LIBERALISM.  ITS NOT A LIBERAL PROGRAM BUT IT IS PERCEIVED AS ONE.

THEY ARE ALLOWING THE BANKS TO EXTRACT A FEW MORE PAYMENTS OUT OF PEOPLE,
THEN FORECLOSE TO CREATE SHADOW INVENTORY!

ITS A NICE MONEY MAKING SCHEME!

Its caught up in this foreclosure fraud.

SOLUTIONS:

THINGS BEING DONE.
AFTER THE NOTORIETY
1. BANKS VOLUNTARILY INSTITUTED MORATORIUMS

2. JUDGES ARE STARTING TO TAKE NOTICE

3. STATE ATTORNEYS GENERAL INVESTIGATION

4. INVESTORS WANT BANKS TO REPURCHASE LOANS


AT WHAT POINT DOES THE THREAT OF CRIMINAL SANCTIONS CAUSE THEM TO MODIFY LOANS.

FIX THE HAMP PROGRAM

LOOKING FOR A MANDATORY MODIFICATIONS