dagblog - Comments for "Obama's Big Chance"

Ok Aunt Sam, what are you

erica20 — Thu, 12 Jan 2012 05:06:32 +0000

In reply to Hmmmm. You're kinda getting

Ok Aunt Sam, what are you driving at? Huge unreported losses? An attempt by the banks/fed to own all the houses? Giant public/private sellouts of the losses?

I would be very interested in

Aunt Sam — Thu, 12 Jan 2012 04:27:45 +0000

In reply to I think you are, of course,

I would be very interested in seeing the factoring they utilized to arrive at that figure and to know specifics on the charge offs, et al. Forgive me, but I have little faith in how they computed their 'figures'. What's set aside in reserves and what/to who were fees paid are just a couple of my interests.

I think you are, of course,

jollyroger — Thu, 12 Jan 2012 04:14:46 +0000

In reply to I don't have the data for

I think you are, of course, correct, it can only be retrospective.

Shit! Does that mean that the 400 billion figure for fan fred is just for paper where the file is completely closed, including deficiency judgements?

Yikes!

I sure hope that half a trillion is what they decided to reserve the loss at, rather than the finally booked losses so far, which would lag real time by years.

The Supreme Court! Oh, sorry.

erica20 — Thu, 12 Jan 2012 03:14:31 +0000

In reply to Hmmmm. You're kinda getting

The Supreme Court!

Oh, sorry. I got a little overescited there....:^D

I don't have the data for

Aunt Sam — Thu, 12 Jan 2012 02:57:55 +0000

In reply to Wow! That would cover (as I

I don't have the data for that, but.....

Claims on repossessed/foreclosed properties cannot be paid out until all the steps are complete. With houses, these steps are:

The property must be cleaned, etc. put on market

The property sold.

The person(s) who held the original loan billed and/or sued for any deficiency balances, including any fees/costs, including legal, realtor, etc.

Only after all this do most insurers accept and process the claims. They (are supposed to) do complete review of the original loan processes/documents and so on......

The majority of properties are still not sold. (Hmmmm.)

Wow! That would cover (as I

jollyroger — Thu, 12 Jan 2012 02:40:00 +0000

In reply to I know that it used to be

Wow! That would cover (as I understand it) 90% of the loans that went south, but the numbers that are being thrown around (I think its like 4-500 billion for fan/fred thus far sound like any piece of shit mortgage is being indemnified.

I wonder if Fan/Fred are making a fuss over any of them? Is that the gravamen of the claim for the right to "put" the mortgages back to the bank? I thought that was an action by the investing pools against the originators and the trustees for the pooling and servicing agreements.

Have the actual insurance coverage issues been litigated under the standard you reference?

Hmmmm. You're kinda getting

Aunt Sam — Thu, 12 Jan 2012 02:33:59 +0000

In reply to Who wins: Banks/investment

Hmmmm. You're kinda getting there.....the underlings are not the principals.

Consider bigger and long term rewards. And what entity has the resources/power to manipulate all the parts?

I know that it used to be

Aunt Sam — Thu, 12 Jan 2012 02:28:41 +0000

In reply to Some of the losses would be

I know that it used to be (have no reason that it has changed) that 'bad faith' loans - loans that were provided without adhering to the criteria in place that delivers the 'rules' for loan approvals - the insurance of course would not cover the losses. i.e. many loans were (not fixed rates) done knowing that when rates increased the borrower would most likely not be able to maintain payments.

There are many instances, usually to do with some form of malfeasance on behalf of the lender, when losses are not reimbursed. It's just good practice to put these caveats in place.

Who wins: Banks/investment

erica20 — Thu, 12 Jan 2012 02:27:43 +0000

In reply to As we all know, when one

Who wins:

Banks/investment houses--who made big money selling, reselling, and doing derivatives on the backs of regular people who thought they were getting in on the new wave.

Foreign investors and big investors who saw their returns "saved" by the Paulson Tarp--at the expense of regular people who got sliced out of the deal.

Politicians--who managed to make it through the crisis without ever having to actually represent the people who voted them into office.

Did I miss anybody?

Some of the losses would be

jollyroger — Thu, 12 Jan 2012 02:18:42 +0000

In reply to erica, too funny! Some of the

Some of the losses would be covered by their insurance carriers, but definitely not most,

I'm unclear about that--I wonder whether they don't collect all their appropriate indemnification for missed principal and interest, etc, and also the fees for their wrongful foreclosure, even the duplications from having to go back and start again, etc.

I haven't a clue where in the insurance agreement between fan/fred and the bank the distribution of losses, (if any) is spelled out.