Comments on: Prime Borrower ‘HELP’ Requests Surge

By: upthecreek

upthecreek — Sun, 02 Nov 2008 04:08:26 +0000

Let’s see…

1) In California car sales are down approx 30 %
2) Have you been out to a resturant lately.. most of their sales are down 20-30%
3) The malls are very quite or shall I say you see many people hanging out ..not to many holding shopping bags.
4) Commercial property for lease sign are popping up like wilflowers after a desert shower.
5) if you are in the construction Biz…Well not much I can say about that can we?
6) and the state of california is in the hole by 26 billion or is that 30 Billion I lost track it changes by the minute.
7) We are screwed… and who can we thank???….

By: dacounselor

dacounselor — Fri, 31 Oct 2008 17:59:30 +0000

Is there even any question that Alt-A and Prime defaults are going to be slamming ashore over the next several years? Likewise, is there any question that the only solution is principal write-down mods? I have not heard a single alternative solution that sounds feasible. Anyone?

Face it, the Alt-A and Prime crowd are going to default en masse, due to either job loss, income reduction or pure ruthless default to wipe out massive negative equity and reduce monthly outflow. IT IS GOING TO HAPPEN.

By: Art Vandeley

Art Vandeley — Fri, 31 Oct 2008 17:36:04 +0000

And every astute Defense Attorney will give their client a videotape of Alberto Gonzalez before Congress, not able to recall any conversation or decision he made during the last 2 years.

“If the governments highest ranking attorney can play dumb and get away with it, so can you Mr. Broker.”

By: admin

admin — Fri, 31 Oct 2008 12:25:42 +0000

‘What your Honor?’ That is not my signature or my asset statement, the bank or broker must have put that in there in order to sell the loan on the back side.

By: BertDilbert

BertDilbert — Fri, 31 Oct 2008 12:25:18 +0000

Art, I disagree, this nation is far too lax on white collar crime. Unfortunately government supported the housing bubble rather than regulate the industry. High asset prices were good. Heck as I recall, the state of CA even came up with a program to put up down payments for state employees.

The state is still behind funding of home purchases.

Down Payment Assistance

Affordable Housing Partnership Program (AHPP)
A joint effort by CalHFA and cities, counties, redevelopment agencies and housing authorities whereby a deferred payment subordinate loan from a locality is utilized by the first-time homebuyer to assist them with down payment and/or closing costs.

CalHFA Housing Assistance Program (CHAP)
Offers a deferred-payment second loan of an amount up to the lesser of two percent (2%) of the purchase price or appraised value.

California Homebuyer’s Downpayment Assistance Program (CHDAP)
Offers a deferred-payment junior loan of an amount up to the lesser of three percent (3%) of the purchase price or appraised value.
Extra Credit Teacher Home Purchase Program (ECTP)
A low interest rate CalHFA first loan, together with a forgivable interest CalHFA junior loan to assist eligible teachers, administrators, staff members and classified employees to purchase their first home.

High Cost Area Home Purchase Assistance Program (HiCAP)
Designed to assist first-time homebuyers in the highest housing cost areas of the state.

School Facility Fee Down Payment Assistance Program (SFF)
A conditional grant program that provides assistance to buyers of newly constructed homes throughout California. CSHLP program did Governor or Governor Schwarzenegger launch Community Stabilization Home Loan Program name of forclosure program in california loan program in my community stabilization program its special for distressed CalFHA CDAP AHPP CHAP ECTP HiCAP SFF SMART Program CalFHA loans 5.5% rate

CalHFA SMART Program

This conventional or government insured/guaranteed first mortgage loan program features a below market, 30-year, fixed interest rate, fully amortized loan reserved for CalHFA REO properties as selected by CalHFA. It has a maximum LTV limit of 100% and may be used with CalHFA’s down payment assistance and/or CalHFA-approved subordinate financing programs for a total CLTV of 102%.

Features: 100% Financing on select CalFHA REO properties with a special 4.00% 30 year fixed rate for the life of the loan.

By: Art Vandeley

Art Vandeley — Fri, 31 Oct 2008 05:22:18 +0000

Auggie,

That would be something the banks would like to do, for publicity purposes only. Even for the gullible, glue-sniffing, American Idol watching public, it would be hard to believe anything bankers say after seeing their jobs lost at the hands of the bankers.

Since homeowners desperately wanted to keep their homes, the only solution was a SISA loan (after suggesting selling and renting a home in the neighborhood at half the cost).

Many homeowners bought in the 70′s for $40,000 and owed $575,000, while only earning $80,000/yr. Forensically, could the investigators ask the homeowners, “What the hell did you do with all that money?” Or, ask the Broker “Why’d you inflate the income so high when you knew they couldn’t afford it?” Or, the lender or Wall Street bundler, “Why didn’t you pull an IRS 4506 on Stated Loans? Did you not want any physical evidence this guy only earned $80,000 when the application said he made $160,000?”

The Feds could send 1,000,000 mortgage professionals to jail and homeowners to debtors prison after 30 years of negligent equity stripping. But it’s not going to solve anything. The big blowup is still around the corner as Mr M predicts, and it’s probably got something to do with $1,000 Trillion in Derivatives or hyper-inflation.

By: Auggie

Auggie — Fri, 31 Oct 2008 01:17:33 +0000

What will be interesting to see is the lenders start performing forensic document reviews on all of the loans that they are modifying and how many LO’s and mortgage brokers find themselves with interesting letters in their mailboxes from the legal departments of these banks. I personally feel that wholesale mortgage origination is on it’s way out. Mr. M, care to share your thoughts on this subject? Once a lender agrees to modify the loan, doesn’t it seem logical that they find out why the borrower was only able to afford the loan that was done as a SISA, SIVA, No Doc, NINA, NIVA type of loan for a short period of time? The banks will then get to publicly announce that they have cut the problems off at the limbs by investigating all of the bad loans and prosecuting LO’s and brokers and then get to tell everyone all of the great measures they are taking by keeping people in their homes.

By: peterb

peterb — Fri, 31 Oct 2008 00:19:05 +0000

Interestingly, I have been reading a few economic forecasts for 2009. They all are talking about auto loan, credit card and commercial property defaults starting to ramp up. This next wave of home loan defaults from the “good paper” loans is going to really put some gas on this growing confligration!!

By: BertDilbert

BertDilbert — Thu, 30 Oct 2008 21:55:38 +0000

Those prime numbers are climbing at an alarming rate. Anybody have a time machine so we can go back and redo this decade? Looks set up for prime foreclosures to overtake subprimes fourth quarter.

Foreclosure, Not just for subprime anymore… Looks like 700 billion x 3 or 4 at least.

By: linda

linda — Thu, 30 Oct 2008 20:19:20 +0000

ncb, I wouldn’t swear to it but I think Congress extended the tax relief a couple of years out for that kind of forgiven debt. Like right around the time of the $700B bailout, or maybe in the bailout?
There was a bunch of stuff expiring that they renewed at the last minute.

As for the state(s), I am not really sure.