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FDIC Cracks Down On Video Claiming Collusion With One West Bank.

February 13, 2010 – 1:42 pm | 2 Comments

Popularity: 3% [?]

Over the last week or so we have received literally hundreds of emails from Harris Real Estate University about this video

The premise of the video is that there is deep seeded collusion between the FDIC and One West Bank. Well, as you can imagine there is a big stink brewing as to the claims the video creators proposed.

We contacted the FDIC and spoke with one of our contacts… In short order they pointed out the flaws and false claims, so we decided to not re-post the video. Until today. So, watch the video…and then read the this post.

Let us know what you think, share your comments.

These comments were from ZeroHedge.com

A few days ago we posted “The Great Highway Robbery Continues: How the FDIC is Legally Transferring Billions in Taxpayer Money to Hedge Funds” which presented a clip by Think Big Work Small, highlighting what was seemingly a grand scheme to defraud taxpayers with the FDIC’s complicity. Today, the FDIC strikes back, issuing a Press Release claiming the video contains “blatantly false claims“, “perpetrates other falsehoods“ and has “no credibility.” The counterargument which is supposed to render all allegations of impropriety false: “OneWest must first take more than $2.5 billion in losses before it can make a loss-share claim on owned assets” and that “in order to be paid through loss share, OneWest must have adhered to HAMP.” Unfortunately, reading between the lines of the response indicates that not only are the falsehoods actually truehoods, but the video is still, sorry Shila, quite credible.

So to make sure we get this straight. OneWest could have an accrued loss balance of $2.499 billion as of today, and just one more loss will be enough to force the FDIC to make a lump sum payment instead of linear payments? And somehow we are supposed to be comforted by this? A cursory public filing search for OneWest bank reveals no such organization. Maybe while it is denying the validity of the video the FDIC can advise taxpayers where they can get some information on what the correct reserve or loss accrual at OneWest is? Courtesy of the most opaque accounting rules in the history of America, OneWest could have already gotten way beyond the $2.5 billion threshold and is simply waiting for the proper time to spring this to the unwitting FDIC.

And as for adhering to HAMP? Would that be the same program that will ultimately benefit less than 1% of US first mortgages due to ridiculous constrains that make the vast majority of participants ineligible? Aside from scoring one for the stupidity of the administration, does the FDIC actually believe that Americans will find this to be a relevant gating issue?

Sorry FDIC, but not only did your press release not refute the video’s claims in the least, but you just dug yourself an even deeper grave as every aspiring blogger and investigative reporter will now do everything in their power to find comparable examples of blatant “slap in the face” fraud expecting you to retort to any and all allegations, ensuring 15 minutes of fame for all implicated.

This is the actual statement from the FDIC:

FDIC Provides Additional Information on its Loss Share Agreement With OneWest Bank

February 12, 2010

FDIC Director of Public Affairs Andrew Gray said, “It is unfortunate but necessary to respond to blatantly false claims in a web video that is being circulated about the loss-sharing agreement between the FDIC and OneWest Bank. Here are the facts: OneWest has not been paid one penny by the FDIC in loss-share claims. The loss-share agreement is limited to 7% of the total assets that OneWest services, and OneWest must first take more than $2.5 billion in losses before it can make a loss-share claim on owned assets. In order to be paid through loss share, OneWest must have adhered to the Home Affordable Modification Program (HAMP).

The producers of this video perpetuate other falsehoods. The FDIC has not requested to borrow money from the Treasury Department. Indeed, we continue to be funded by the banking industry through assessments, not by taxpayers as claimed in the video.

This video has no credibility. Regardless of the personal or professional motivations behind its production, there is always a responsibility to be factually correct and transparent. The FDIC made available a fact sheet on the day that the sale of IndyMac was announced that details the terms of the contract. It’s too bad that the creators of this video opted to premise it on falsehoods.”

And this is from the Wall Street Journal:

WASHINGTON (Dow Jones)–The Federal Deposit Insurance Corp., defensively responding to a viral video on YouTube.com about an agreement the agency made with OneWest Bank, provided more details Friday on its loss-share agreement with the firm.

Agency spokesman Andrew Gray said he is hoping to set the record straight regarding several “falsehoods” perpetuated in the video.

“OneWest has not been paid one penny by the FDIC in loss-share claims. The loss-share agreement is limited to 7% of the total assets that OneWest services, and OneWest must first take more than $2.5 billion in losses before it can make a loss-share claim on owned assets,” Gray said. He later added, in “order to be paid through loss-share, OneWest must have adhered to the Home Affordable Modification Program.”

Other statements Gray clarified includes an accusation that FDIC has requested to borrow money from the Treasury Department.

That’s not true, Gray said.

“Indeed, we continue to be funded by the banking industry through assessments, not by taxpayers as claimed in the video,” he said.

Gray criticized the producers of the video for not being responsible enough to get accurate information and said the video has “no credibility.”

“It’s too bad that the creators of this video opted to premise it on falsehoods,” Gray said.

Popularity: 3% [?]

Where Are All The REOs? | FREE Real Estate REO Training

November 17, 2009 – 9:30 am | No Comment

Popularity: 1% [?]

Foreclosure Firestorm Ahead.

Where are all the REOs?

You know there are literally millions of ‘bank controlled…soon to be REO’ homes in your market. Yet, they aren’t for sale…

Why?

It should surprise no one that the Bank-sters are doing that is best for them. Bank-sters have demonstrated their unlimited ability to work exclusively for their own self-interest.

NOTICE: If you are ready to become a REO Listing Agent…join us for this weeks FREE Agent REO Secrets teleconference. 90 Minutes of the must-have…how-to information you must know to be a REO Listing Agent. There IS still time for you…its not too late. Here is the information you need to attend this Thursdays FREE event. Agent REO Secrets teleconference (or webinar) info.

Here is an interesting article that a student sent to me to share with you….

There was a time when processing the few bad residential real estate loans was routine. Federal and state regulations require bad loans to be passed through three “cauldrons.”

Troubled loans went first into a “30-89 past due” cauldron, where they cooked for up to 89 days. Many healed themselves. Unemployed borrowers found jobs, warring spouses finalized divorce papers or scatterbrained professors returned from sabbaticals.

For many years, that group never rose above the $20 billion mark for any one quarter — a small percentage of all outstanding loans.

The mortgages that made it to the “90-day past due” pot generally were written down to reflect the underlying real estate, minus holding, selling and foreclosure costs. This holding vat generally was reduced to about 25 percent of the first group.

Finally, while a bank-owned home awaited liquidation, it could be placed in the final cauldron, the “nonaccrual” pot.

Now, fast-forward to the quarter ending in June. The 30-89 past due pot, according to FDIC data, was around $68 billion nationwide. The second pot has almost $65 billion. The third pot, about $83 billion.

The loans are not being reappraised. Many “zombie loans” represent homes in which borrowers are living, in essence, free of charge or perhaps sending a few dollars in interest to draw out the process.

This benefits the banks because they can postpone writing down toxic mortgages, which would force them to show losses and to add money to a reserve fund called a loan loss allowance, which could throw some banks into insolvency.

Final charge-offs for residential mortgages were 1.7 percent of total past due and nonaccruals in December 2004. By September 2008, they hit 14.5 percent. The rise was likely because fewer loans were healing themselves as the subprime crisis swung into high gear.

By the quarter ending in June, it had fallen to 6.4 percent. The decrease only can be due to loans not being revaluated. Our calculations put this at the equivalent of nearly 400,000 “zombie mortgages.” If each accounts for one dwelling, that’s 400,000 homes with borrowers being subsidized by banks.

Interesting side note….a recent report estimated the total number of homes that will head for foreclosure (or short sale if the sellers are smart) is…13,000,000. That number included homes expected to be lost due to mortgage resets etc. Bottom line, this market IS the new normal. Learn how to become a REO listing Agent…join us for this weeks FREE Agent REO Secrets teleconference or webinar. Learn NOW how to be a REO Listing Agent (its not too late for you….but, next spring may be!)

The victim? Ultimately, the taxpayer (but more directly, purchasers of real estate and bank shareholders). Reanimated corpses are hard to kill.

Popularity: 1% [?]

How To List FDIC REO Homes | Real Estate Coaching

October 20, 2009 – 8:56 am | 2 Comments

Popularity: 2% [?]

Breaking News….

Across the country the FDIC quietly and quickly ‘takes-over’ banks every Friday. Like a team of highly trained Navy Seals the FDIC swoops in and literally takes control of the lending institution. The FDIC’s process is so seamless that literally the next day…Saturday…they re-open the bank and from the clients perspectives its business as usual.

Now, what happens to the taken over banks ‘Assets’. What happens to all of their ‘distressed properties’….more importantly, how can YOU get those listings.

Realtors, the best opportunities of your career are starting TODAY. Its NOT too late for you to become a REO Listing Agent. There are up to 13,000,000 bank controlled homes that must be sold. Learn now EXACTLY how you can become a highly paid, market dominating REO Listing Agent. Watch the FREE Agent REO Secrets video and grab your FREE Agent REO Secrets book.

Here is an email that I just received from one of our Agent REO Secrets coaching students:

Hey Tim,

Great tip for you…picked this up at the REOMAC conference. Regarding
FDIC assets: The FDIC takes over banks almost every week on Friday
evening and then announcing the take-over the following Saturday.
They always issue a press-release here:

http://www.fdic.gov/news/news/press/2009/index.html

There are two FDIC outsources. Prescient and CBRE.

These two companies receive all the FDIC foreclosed assets (residential and
commercial). So, I was told by an asset manager for Prescient that if
I watch the FDIC list every Saturday and I can find out what banks go
under. Then call him. It usually takes about 3-months from when the
bank is taken over to the assignment of the assets. The process is
extremely paperwork heavy but is certainly an opportuntiy.

Popularity: 2% [?]

Loan Mod Training | FDIC Mortgage Loan Modifications

May 8, 2009 – 9:49 am | No Comment

Popularity: 1% [?]

Sheila Bair, FDIC

We have been long time supporters of Sheila Bair…she seems to cut through politics and focuses on getting the job done. She was in discussing ways to solve the housing crisis back with others were insisting that there was no housing crisis. Great news on the Loan Mod front….mods are working!

CHICAGO, May 7 (Reuters) – Efforts at mortgage loan modification are having positive results, but their ultimate success will depend on the trajectory of the economy, Sheila Bair, chairman of the Federal Deposit Corp., said on Thursday.

“My sense is that it’s having an impact,” Bair said in answering questions after a speech to the Chicago Federal Reserve Bank’s annual bank structure conference.

But, “there’s obviously still distress in the mortgage market,” Bair said.

She added that most mortgage holders will stick to their commitments if monthly payments are brought down to affordable levels, even if they are still “under water” on the size of their mortgage versus their home.

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But loan workouts are more difficult if the credit distress is driven by a life event such as the loss of a job rather than structural problems with the loan itself.

Bair said she would like to see the secondary mortgage market, a casualty of the financial crisis that hit in 2007, “come back in the right way” with “the right incentive structure.”

Commenting on the FDIC’s workload given the recent spate of bank failures, Bair said the agency had added 1,000 staff in the past and is still hiring.

Popularity: 1% [?]

FDIC Bank Failure Watchlist | Is Your Bank On The List?

April 20, 2009 – 12:06 pm | 2 Comments

Popularity: 11% [?]

Bank Failure FDIC Watchlist

Popularity: 11% [?]

Principle Reduction Loan Mods..Obama’s Loan Mod Plan.

February 15, 2009 – 11:18 am | No Comment

Popularity: 1% [?]

Found this on NYPost. Great advanced info on the soon to be announced Obama Mortgage Loan Mod Program….

A cornerstone of the economic recovery plan that President Barack Obama is expected to unveil Monday will be modifying problem mortgages….

In other words, as we have been predicting for almost a year on this blog Loan Modifications with principle reductions were inevitable.

In a nod to Main Street over Wall Street, sources familiar with the plan say Treasury Secretary Tim Geithner plans to allocate almost half of the remaining $350 billion in funds from the Trouble Asset Relief Program to the so-called “Mo Mod,” or mortgage modification, platform.

“Mo Mod” is an algorithmic mortgage processing program that can rewrite up to 500,000 loans a month, and will be a major part of Treasury’s plan to help repair tattered bank balance sheets.

The 21-day “Mo Mod” program works by structuring a new mortgage that more accurately reflects a home’s worth so that a troubled borrower no longer owes more on their home than the property is worth.

The process then enables a lender to pool these new mortgages together into securities that reflect more accurately a home’s value, which makes them less risky for investors.

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As outlined, this plan will be much broader in scope than the Federal Deposit Insurance Corp.’s plan with IndyMac, which was initiated by FDIC Chairman Sheila Bair and has only been able to rework about 5,000 mortgages since last summer.

But it will also bail out borrowers who helped trigger the housing crisis by taking out loans they were unable to pay back from the outset, something that has drawn criticism because it effectively rewards the bad behavior of rogue borrowers and lenders.

The “Mo Mod” platform relies on proprietary technology developed by a Ponte Vedra Beach, Fla.-based real-estate appraisal firm Smithfield & Wainwright, which built the system over 20 years and uses it for banking clients looking to liquidate mortgage holdings.

A spokesperson for Smithfield & Wainwright declined to comment on the plan. The Treasury Department did not return calls.

Stopping the slide in housing prices is a priority for the Obama administration, which is also considering providing government guarantees for home loans that have been modified by their servicers in order to stem a surge of foreclosures that’s hammering property values.

The “Mo Mod” plan comes as a record 19 million US houses stood empty at the end of 2008, and, according to real-estate Web site Zillow.com, US homeowners lost a record $3.3 trillion in equity last year.

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About one-third of owners whose home values drop 20 percent or more below their loan principal will “hand the keys back to the bank,” said Norm Miller, director of real estate programs for the School of Business Administration at the University of San Diego.

“When you’re underwater and prices continue to fall, you tend to walk,” Miller said in an interview. “It’s a downward spiral that’s tough to stop because it feeds on itself. Foreclosures encourage other foreclosures and falling prices discourage buying.”

Popularity: 1% [?]

Loan Mod Secrets…Learn How-To Modify Mortgage Loans. Loan Mod FAQs…

February 12, 2009 – 5:22 am | No Comment

Popularity: 1% [?]

www.AgentLoanModSecrets.com

Loan Modification FAQs continued…

Why Would a Bank Modify My Mortgage Loan?

Simply because it is in the best interest of the bank. As you attempt to inquire about a loan modification do not confuse this transaction with an altruistic act of kindness. It is fundamentally a transaction that makes more business sense than the alternative–you defaulting on the entire mortgage and costly foreclosure proceedings.

It is also a product of the current economic conditions. There are so many homeowners that have been pinched by the simultaneous collapse of the housing market and the economy. This creates a unique circumstance–modifying your mortgage, to keep you in your home, benefits the bigger economic picture.
Loan Modification Programs

As mentioned before, loan modification programs are just becoming mainstream and therefore there is little standardization. The details of loan modification programs that you qualify for will start at your lender or a loan modification counselor that can guide you.

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Here are a few of the most prevalent loan modification programs and resources:
IndyMac Federal Bank Loan Modification Program

IndyMac Bank was one of the first financial institutions to broadly offer loan modifications to their mortgage customers. When the FDIC took over IndyMac it became the first test bed for an extensive loan modification policy. You are eligible for this loan modification program if IndyMac Federal Bank holds or services your mortgage.

You can learn more about this program at: FDIC Loan Modification Program for Distressed IndyMac Mortgages.
Federal Housing Finance Agency Loan Modification Program

The most recent of the loan modification programs was the one offered by the Federal Housing Finance Agency (FHFA), the supervisory regulator of Fannie Mae and Freddie Mac. This loan modification program applies to any mortgage held or serviced by Fannie Mae or Freddie Mac.

Popularity: 1% [?]