Change or Die.. Seriously.. Do it or get over it. 06.15.10 | Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales

Nuke 'em Until They Glow and Shoot them In the Dark: (June 16, 2010 8:33am)

Umm Excuse me..... yes me here in the back of the room. We're ALREADY IN A DEPRESSION BY ALL MEASURES. Call it what it is and move on.

Evil Genius: (June 16, 2010 8:16am)

5Pence, are there no dark, corrupt ares with Fannie. I'm not suggesting a private Fannie. My plan calls for $1B mortgage pools at a time (manageable) each carries it's own prenegotiated interest rate (stability) as well as pre-negotiated risk factor acceptibility (some flexability). I'm not setting up a free-wheeling return to Alt A product, but a responsible "return to common sense" approach without government interference. Long term goal is to go public, which truly means returning some power to the taxpayer and consumer. You want to talk seiously? [email protected] I respect your comments. You're certainly as educated as anyone posting here. I do have answers for most any of your objections. No way to cover it here.

Robin in Reno: (June 15, 2010 11:31pm)

You guys slay me and I absolutely LOVE YOU BOTH! It is 11:25 at night and I am still working but you two characters make it all worth while. Frank thank you for your service to our country. Among other things I am a veteran's advocate. Check with me about registering your business as a Vet! Robin in Reno

5pence: (June 15, 2010 9:15pm)

It’s Official: Ron Paul Can Beat Obama in 2012 Ron Paul can beat Barack Obama in 2012, according to the latest Rasmussen poll: If the elections were held today, Obama would gain 42% of the vote compared to Paul’s 41% – statistical dead heat. Among independents, Paul has an astonishing 47% to 28% edge over the president. (Rasmussen Poll: Election 2012: Barack Obama 42%, Ron Paul 41%) The difficult part may be getting the GOP nomination: Only 66% of GOP voters say they would support Ron Paul even if he wins the nomination. But there’s still potential for improvement: 49% of GOP voters are still not sure whether Ron Paul shares the values of most Republicans throughout the nation. http://www.ronpaul.com/ronpaul2012/

jaded: (June 15, 2010 5:25pm)

If anyone thinks letting Fannie/Freddie go away would be a big disaster......Does anyone remember the Y2K thing?? If Fannie/Freddie were to just go away, maybe we could all get back to work so the economy and housing market could recover.

5pence: (June 15, 2010 4:17pm)

There is certainly nothing reasonable or typical or usual or customary about my fees. I make my bid for the job, depending on the scope of work, and since each job is different, you can accept my bid or someone elses. It is what it is and it's certainly not tied to terms of employment. We are individual, independent contractors dealing in a competitive environment - unlike the TBTF's that have no real competition. Employment under those terms takes away that independence. Brilliant on the AMC's part to come up with that, but I never thought our profession would buy into it like they have. See it for what it is - it's wordsmithing to take away our independence, and fees.

5pence: (June 15, 2010 3:50pm)

I certainly hope that any language related to our fees, "typical and usual" or "reasonable and customary" is not in there. We are independent contractors and our fees should never have been the topic of conversation. Employment under limiting terms, such as these, makes us employees without the benefits.

stevetimper: (June 15, 2010 3:43pm)

Please see http://www.reuters.com/article/idUSTRE65D4FW20100614 CCAP is preparing the final campaign to get Appraiser Independence into law.... your active participation will be an important part of this effort. To bring you up to date: All conferees from the Senate and House of Representatives have been appointed to the Conference Committee that will reconcile HR4173 and S3217. Two of the appointed members, Congresswoman Maxine Waters and Congressman Henry Waxman, are from California. CCAP is drafting a letter that can be used (in part or in whole) by all appraisers and appraiser groups, teachers, and publications to lobby these members to include the "Appraiser Independence Requirements" in the final bill as part of the financial reform legislation. A draft letter will be sent to CCAP members (posted on CCAP's website www.CaCAP.org) early next week. All state coalitions have targeted their efforts to work for the adoption of "Appraisal Independence Requirements" Call and Write NOW!

Valuequestor: (June 15, 2010 3:37pm)

The S&L Crisis in the late 80's was not all commercial. It saw a good 20% decline in home values and lots of foreclosures. There was lots of house flipping going on and people with house payments they could not afford.

5pence: (June 15, 2010 3:29pm)

They're so big & complicated even they don't know what they're doing. Too big to manage, too big to understand their complicated schemes, too big to control, too big to prosecute, too big for competition & fair play, too big to apologize for ruining the worlds economies, too big to return the favors of taxpayer bailouts, too big to care about anything but profits, too big for remorse, too big for a social conscience, too big to stop feeding out of the public trough, too big to fail, too big to make a real market, too big for transparency, too big for non-proprietary trading (proprietary trading-what a joke to hide Ponzi crimes). Glass-Steagall worked very, very well for 70 yrs. A head of one of the big banks said in a town hall meeting - we can't help ourselves, you have to make us help ourselves and restrain us. No one listened. Dodd sure didn't. Too big to fail is being enshrined & entrenched with that bill that is really a TBTF protection bill ensuring everlasting bailouts. Bleech

5pence: (June 15, 2010 3:03pm)

Yeah BTM, whatever it take to make the banks make a REAL mortgage market, above board and transparent with no illegal policies that feed the overfed to bursting with our dough.

Valuequestor: (June 15, 2010 2:59pm)

Excellent BTM !! Back to the Future and the 80's. S&Ls and smaller banks....and lots of them. A little bit of Caveat Emptor instead of too much regulation and the market will take care of the rest. People with marginal credit will still have avenues to loans. The hand holding ultra left liberal democrats can help these people by counseling and with whistle-blowing groups that monitor the less reputable lenders....works for me.

GODLIKE: (June 15, 2010 2:56pm)

5pence I wasn't talking about subprime I was talking more about all the BS Mr. Clinton shoved down Fannie's throat in 1999 which is what is not performing now.

BTM: (June 15, 2010 2:32pm)

"OK for all the brain surgeons out there...if you eliminate Fannie and Freddie where do the loans come go???? 99% of all the loans have to be sold"----------------------- First - no they do not. Second - have you people so lost your minds that you cannot conceive of a free market any longer? Do you think we need tax payer subsidized monopolies to conduct business? If Fannie and Freddie disappear it would take 12 months tops for efficient systems to be created by the free market in their place. The only thing F & F do is allow marginal buyers to purchase properties. Tax money (your money) makes up for the losses. Take from the producers and give to the poor. Mae and Mac are welfare systems that puttered along until a socialist Congress started pushing for no underwriting guidelines at all. We can see how well that has worked out.

BTM: (June 15, 2010 2:22pm)

"Here's the solution. Phase out loan sales and the secondary market and foreign investors, and the whole system that sucks. Invent something called Savings and Loans. Restrict most of their lending activity to making home loans. Have thousands of them around the country. None would be too big to fail. Don't heavily regulate their loan products. If one came up with too creative a product, it would go out of business. No problem. There are thousands more. Of course, common sense underwriting and people that can think beyond a broken loan formula cost money. So, don't make them compete with Fannie/Freddie low borrowing costs. Have them add a 0.5% "subsidy payback fee" to their loan rates. Don't pass this on to the investors. Keep it to help Fannie/Freddie payback the govt, and then phase them out. (The old S&L bailout only cost 20 bil and was only because of commercial loans. Never a problem or bailout for good old fashioned common sense home loans)." ----------------------- - YES KKRIC!

5pence: (June 15, 2010 1:49pm)

Evil Genius : I have real concerns about a private Fannie Mae. Privately it can still operate in the dark and will still have a taxpayer backstop for risk. And you know risk will be part of the scenario with private investors controlling it. We need good stewards of such an important part of the economy and making them public will produce the transparency we all need for these dark trading corners of our economy. JMHO. Let me guess - the Chinese want to take it over? Why not - They own everything else (sarcasm).

5pence: (June 15, 2010 12:50pm)

“While the crash only took place 6 mnths ago, I am convinced we have now passed through the worst & with continued unity of effort we shall rapidly recover. There has been no significant bank/industrial failure. That danger, too, is behind us.” H. Hoover 5/1/1930. “…by May/June the spring recovery forecast in our letters of last December & November should clearly be apparent” Harvard Econ Soc. (HES) 5/17/30. “Gentleman, you have come 60 days too late. The depression is over.” Hoover, responding to a delegation requesting a public works program to help speed the recovery, 6/30. “irregular & conflicting movements of business should soon give way to a sustained recovery” HES 6/28/30. “We are now near the end of the declining phase of the depression.” HES 11/15/30. “Stabilization at [present] levels is is clearly possible.” HES 10/31/31. “All safe deposit boxes in banks or financial institutions have been sealed & may only be opened in the presence of an agent of the IRS." Pres. FDR 1933

HRKODAMA: (June 15, 2010 12:30pm)

Tsk*Tsk* Brian..I was kinda hoping you would put a light bulb in your mouth for me, But your complaining..so what do you do..Keep up the good work guys...HR

Evil Genius: (June 15, 2010 12:07pm)

Godlike, where do you think the investment dollars that originally backed fannie came from. Us, but we did it through institutional investors, using our pension money. So, now that Fannie has proven that you can only cut these notes up so many times before they stop paying and start costing us our own money. It seems to me that we need to back off on securitizing the securities into no value. Too many side bets on the "don't come line." A new start without the Govie, but with private investment that is structured to accept a reasonable return will work right now! Separate the note market from the bond market. There is a plan soon to be implemented that will chop away at Fannie's knees until....................DUST!

angel040574: (June 15, 2010 11:58am)

It's easy to criticize FNMA and FHLMC, but the time for critique is over. We need SOLUTIONS. Anything else is just sound and fury. Broken as they may be, we know a singular government run entity is not a solution (FHA was once the big daddy of the industry, but it was slow to change and adapt, opening the doors for the disaster that eventually happened). We know that the private market is not the solution (hello! This was the birthplace of sub-prime). So, perhaps, the solution is in a competitive environment of both public and private resources WITH safe guards and anti-fraud measures. Not paying taxes? Not mortgage for you. Wait, that attitude might solve more than one crisis . . .

Evil Genius: (June 15, 2010 11:50am)

abberduke, that's what I'm sayin'!

5pence: (June 15, 2010 11:47am)

Godlike - you've got it wrong. The GSE's have a mandate that they can only buy 80% LTV or higher loans. They had little to no part in the sub-prime meltdown. Their biggest mistake was getting way to greedy buying AAA rated MBS's and CDO's. They bought them because they knew if they failed the taxpayer would bail them out - the had and have a government guarantee and they took full advantage of it. They took bad risks because they knew there would be no consequences. The GSE's were rife with fraud before the meltdown and it's still there. We don't need to be quiet as any alternatives have not been seriously addressed by anyone! They are corrupt, a blight and a bottomless pit of corruption. Support the criminals if you will for your immediate self-serving needs, I don't and won't. Viable alternative is to make the GSE's public corporations and make the banks make a real market. People that say illegal and criminal activity is ok because they benefit from it, turn my stomach.

GODLIKE: (June 15, 2010 11:26am)

Until someone has a viable alternative to FNMA/FHLMC they need to be quiet and quit adding flames to the coals. If you get your wish then we'll all be out of business literally overnight. As many have mentioned Fannie did well until we got some good ol' gov'mt orders from on high to buy this and offer that. The baby in this bathwater is still very good. Just throw out the bathwater.

mdeery: (June 15, 2010 11:15am)

I think Brian looks like Dr Evil from Austin Powers hahah. I hope you kicked an Englishman in the balls on Saturday Brian after the US scored that lucky goal??

5pence: (June 15, 2010 11:05am)

Exactly Valueboy. With Fannie and Freddie and the goverment guarantee of OUR unlimited (no less) taxpayer funds, we are mooching off all our neighbors for every unwisely obtained (through AMC's) mortgaged loan. The banks refuse to make a real market and the government is imprudently pandering to the banks with OUR money. The Consumer protection bill does not address the GSE's at all!? That tells me banksters wrote it. The status quo is way too profitable for them, the status quo being leeching off of every single working class American citizen till we are all broke. A trillion dollars could have paid for free health care for all and free college. Instead of being spent in improving all our lives, it goes right into the banksters pockets for all manner of immoral activity. What else do you think they're doing with all that (our) money? When Glass-Steagal was instituted we went 70 years with only one small financial crisis. Since the repeal of Glass-Steagal in 1999 we've had 5 crashes

Bryan/MortgageFinanceGroup: (June 15, 2010 10:57am)

The fact that the GSE's are not part of finreg shows you that they need to die once and for all.

rlittlefield: (June 15, 2010 10:56am)

Well maybe I should have used a blown head gasket instead of a flat tire as an example. The fact remains if you close down FNMA and Freddie, you pretty much close down the whole mortgage market and kill the economy the rest of the way. The stimulas plan might have worked if they had not handed out money without any accountabilty. If they just hand the money to FNMA and Freddie then like the AIG bailout, it will go for huge bonuses for the people who caused the mess. The money has to be earmarked to go to fixing the problme.

abberduke: (June 15, 2010 10:45am)

The old addage has always been, "don't throw good money after bad," why would we continue to throw good after bad..what lesson does this teach anyone?? Now, in saying that...I agree we need an outlet for Secondary Market loans. We can't afford to go back to 20% down only, FHA and VA. Here is an idea, how about taking the $160 BILLION - $1 TRILLION and allowing the Companies who have PROVEN TO BE SUCCESSFUL create a program that they would administor...not sell to Fannie and Freddie. Maybe Fannie and Freddie need a dose of reality, that we don't HAVE to bail THEM out...we can help other SUCCESSFUL Financial Institutions provide solutions for customers...IF we are going to throw money, let's throw money to those who are successful, and will help US taxpayers be successful!

Valueboy: (June 15, 2010 10:08am)

Rlittlefield, you are underplaying the condition and effect of Fannie/Freddie. The car doesn't just have a flat tire, the car's transmission is broke, the engine caught fire, and the wheels melted off the car. But worse than that, you make all your neighbors pay to fix the piece of junk so you can ride around it a crappy old car that was poorly designed and built. It's time to scrap that piece of junk and stop soaking your neighbors to the tune of $1.6 billion. Get your own ride, don't mooch off your neighbors.

5pence: (June 15, 2010 10:08am)

I like Roosevelt and Fannie Mae being a public corporation with high principles and standards instead of the bottom less pit slut junkie it is today. Re-hab

mark: (June 15, 2010 10:07am)

5pence - Corelogic/Chase - I just needed a laugh and this had me rolling. I didn't know we were employees either. If so, then I would expect a raise and benefits as well

5pence: (June 15, 2010 10:03am)

the temptation to obtain money at any sacrifice will become stronger and stronger, and inevitably lead to corruption, which will find its way into your public councils and destroy at no distant day the purity of your Government.

5pence: (June 15, 2010 10:03am)

The banks by this means save themselves, and the mischievous consequences of their imprudence or cupidity are visited upon the public. Nor does the evil stop here. These ebbs and flows in the currency and these indiscreet extensions of credit naturally engender a spirit of speculation injurious to the habits and character of the people. We have already seen its effects in the wild spirit of speculation in the public lands and various kinds of stock which within the last year or two seized upon such a multitude of our citizens and threatened to pervade all classes of society and to withdraw their attention from the sober pursuits of honest industry. It is not by encouraging this spirit that we shall best preserve public virtue and promote the true interests of our country; but if your currency continues as exclusively paper as it now is, it will foster this eager desire to amass wealth without labor; it will multiply the number of dependents on bank accommodations and bank favors;

5pence: (June 15, 2010 10:02am)

Andrew Jackson in his 1837 farewell address: The paper system being founded on public confidence and having of itself no intrinsic value, it is liable to great and sudden fluctuations, thereby rendering property insecure and the wages of labor unsteady and uncertain. The corporations which create the paper money can not be relied upon to keep the circulating medium uniform in amount. In times of prosperity, when confidence is high, they are tempted by the prospect of gain or by the influence of those who hope to profit by it to extend their issues of paper beyond the bounds of discretion and the reasonable demands of business; and when these issues have been pushed on from day to day, until public confidence is at length shaken, then a reaction takes place, and they immediately withdraw the credits they have given, suddenly curtail their issues, and produce an unexpected and ruinous contraction of the circulating medium, which is felt by the whole community.

bern2surf: (June 15, 2010 9:58am)

Great reporting as always Kojak, did you lose your sucker?

5pence: (June 15, 2010 9:58am)

That's great you're helping out the consumer Chris. It'd be nice if there was a place to complain to to get some action - but with the HVCC there is none, so I feel the consumers plight. Non-portability of appraisals, costly AMC delays and engineered low values are just a few of the problems that the consumer has no recourse in. See guys, there is good in the world - they might be in the minority, for now (just like Democracy in retreat) but they will win as they are on the side of righteousness. "It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds." -Samuel Adams (The "Father" of the American Revolution)

Evil Genius: (June 15, 2010 9:50am)

Well Boyz you are now singing my song! rockypaulsen.blogspot.com Read it! Now take action. New foundation, new architecture. Too much Government. This is still a free market country, for now! Finally Brian, OK Unc Fester was harsh, but the shave lent itself to abuse, due to the shock factor! Frank, Brian, read the blog. You want Revolution?

ChrisSorensen: (June 15, 2010 9:41am)

Frank and Brian, thank you as always for the inspirational comments today. I couldn’t agree more. One idea that we came up with was to have professionals align themselves with our non-profit (www.freehomeownershiphelp.org) which educates the consumer, for free, on the professionals behalf. You see, most consumers have grown very cynical and can tune out when approached by a professional. It is hard for consumer, being inexperienced, to decipher the good guys from others. Our free Webinars and live community outreach events are unique in the sense that we do not simply restate what Treasury teaches us in the Make Home Affordable training. We focus on what is truly in the client’s best interest, even if it means teaching them how to bow out gracefully and position themselves to buy earlier in the future rather than later. We teach consumers how and why to choose a professional and why they need to be loyal. We are the consumers and the professional’s best friend and we’re funded by City, County and State agencies. One can get certified to help fund our efforts, but it is not required to use our free services.

5pence: (June 15, 2010 9:41am)

Mark : I don't work for Chase/Corelogic and haven't done a job for themin almost 2 years - but they keep sending me updates and they crack me up! LOL!!

5pence: (June 15, 2010 9:33am)

Robert Kuttner : "Fannie Mae, which over-reached and went broke as a private company with a government guarantee, is now a ward of the federal government. It should be restored to its original form under Roosevelt, as a public corporation with high principles and high standards." The GSE's are bailout central for the banksters and will continue to be as long as the banks refuse to make a "real" market instead of siphoning off taxpayer funds.

5pence: (June 15, 2010 9:24am)

Personally I kind of like China's way of dealing with corporate looters & financial criminals, they execute them, hence very little to no financial crimes there. That is why our banksters won't pull this crap in China through their subs and why America is the chief benefactor of TBTF's - because, insanely & self-destructively, we leave those that created the problem to fix it. Just like leaving the fox to guard the henhouse. Call your Senators and tell them to stand with Main St, not Wall St! Call (866) 544-7573 to be connected to your own state Senators. It's toll-free and only takes a second! When you call you can ask to be transferred to your House rep too. We need to flood them with calls with our concerns!! They start the vote today and will be voting Title by Title until the final bill is done in 6-7 days. It's going to be broadcast on C-SPAN. This is our last chance to be heard before they shove the Too Big To Fail protection bill down our throats or up some other orifice.

GODLIKE: (June 15, 2010 9:18am)

INTERESTING most of the votes on the poll say let Fannie and Freddie die, but most of the comments on the blog talk about the necessity for Fannie and Freddie. For those of you too young to remember a time before the secondary markets of Fannie/Freddie let me tell you that it wasn't pretty! Not only did the S&L's require 20% down and wouldn't approve most people, they also ran out of money quite often. As a RE Broker back then we used to count on our buyers applying to 3-5 lenders before we got one that actually could close the loan.

5pence: (June 15, 2010 9:16am)

Hahahaaa, Mark, I got that too and this was my response: I'm sorry but I am not your employee so you can't tell me how to dress or how to act. When you pay my unemployment and my data sources, then and only then can you tell me how to do my job.

5pence: (June 15, 2010 9:14am)

Actually the GSE's already have $5 trillion in debt so add on the "unlimited" funds from the Treasury. Banks are able to get 0% $$ from the Fed that they can invest in bond funds & get 3%. The banks don't have to create a "real" market for their MBS/CDO's as the taxpayer is unwillingly obliged to, through the GSE's, buy any crap the banksters can write/loan on. If the GSE's want a bank to buy back bad loans the banks at first laugh & then offer much less than dollar 4 dollar to settle. Meanwhile bad loans & fraud are rising. Ohh, but the GSE CEO's must have million $$$ bonuses for failing us all! I mean, that's fair, right? The GSE's are low life crack dealers dealing in impurity with impunity. The addicted are the banksters. The ones picking up the tab are the taxpayers. The GSE's are just a continuation of the bailouts. I thought the banks were fine? Multi-million $$ bonuses would suggest that, yes? Reality needs to sink in. The banks need to make a "real" market without the GSE's!!!

mark: (June 15, 2010 9:13am)

Dress Code Appropriate and professional dress is required. Please use discretion, but note the following attire is not permitted at any time: • Shorts • Non-collar shirts, such as t-shirts (Polo shirts are fine) • Sandals / Flip-flops • Wrinkled, stained, tattered, torn, or unclean clothing • Athletic clothing, warm-ups, workout wear, beach wear and sweats • Clothing which contains inappropriate comments or pictures Conversations to Avoid • Comparable Selection-do not discuss comparable selection • Driving distance - how long it took you to get there, etc. • Value -even if the homeowner asks for your “best guess”, you cannot discuss value with the homeowner • Current interest rates and other lender’s business practices • Personal conversation- keep all conversations professional and appraisal related Courtesy Items • With respect to the homeowners, please be mindful to wipe your feet, especially in inclement weather. You may be asked to remove your shoes

mark: (June 15, 2010 9:12am)

GEt a load of this: As a member of the CoreLogic Quantrix Panel, you are a pivotal piece of the service we provide our clients. With that in mind, we would like to clarify and remind you of our professional expectations. Professionalism is important in the way our Clients perceive our service. As such, we have selected a few important points to emphasize. Introductions When setting inspection dates and arriving to the subject property, please introduce yourself properly. If you have an appraiser assistant please introduce them appropriately as well. Other non-appraiser individuals should not accompany you on an inspection. Please provide a business card and have your id ready, should you be asked for it. Punctuality If you are going to be late, please call and notify the borrower/contact prior to the inspection time. It is imperative to let them know as soon as you know. Dress Code Appropriate and professional dress is required. Please use discretion, but note the following attire is not permitted at any time: • Shorts • Non-collar shirts, such as t-shirts (Polo shirts are fine) • Sandals / Flip-flops • Wrinkled, stained, tattered, torn, or un

GODLIKE: (June 15, 2010 9:09am)

TOUGH LOVE? Get rid of Fannie and Freddie and you've basically shut down the whole mortgage industry. Remember Gary Stevens said FHA is only for the underserved so we need a Fannie/Freddie.

Freedom Fighter: (June 15, 2010 9:03am)

Chris Todd and Barney Frank helped create this mess, The Repulicans should demand a full investigation.

5pence: (June 15, 2010 8:52am)

As an Ex-democrat (now independent), I will say this. "The truth has no political party".

Realist 1: (June 15, 2010 8:47am)

As an Ex-republican (now independent), I will say this. "The truth has no political party".

rlittlefield: (June 15, 2010 8:44am)

As a loyal Republican and big TBWS fan, I have to disagree. It may sound glib to say we should let FNMA and Freddie die, but that would be like junking your car over a flat tire when you do not have any way to get another car. The fact is that securitizing mortgages is how the busieness works and FNMA and Freddie are a big part of that. Get rid of them and we will no longer have mortgages of any sort accept maybe FHA.

Realist 1: (June 15, 2010 8:39am)

To put the bailouts (actually on-going transfusion) it in perspective the entire cost of WW2 was $288 billion. http://wiki.answers.com/Q/How_much_did_World_War_2_cost Does that make sense that bailouts of AIG and Fannie and Freddie should cost more than all of WW2? We are on the road to hyper-inflation.

Clever21: (June 15, 2010 8:31am)

OK....just a quick "Excellent Content" and an hour WELL SPENT on the Sales Training Summit with Jennifer Cummings. Regardless of Fannie/Freddie and other regs you have to know what the heck you are doing and that was GREAT!!!

QCEdward: (June 15, 2010 7:46am)

Boys, could you lose the moody background music? When talking about the death of Freddie and Fannie, having brooding ambient backdrops really grinds, you know? Brilliant!

CVBroker: (June 15, 2010 7:38am)

Higgi - I have done a couple HomePath loans with our real estate side handling the sale. It's been a win-win for the buyers and us. Very efficient. Now Freddie half-a**ed gets into the game with HomeSteps. Just the website is weak and ineffective and now that I hear your story, ripe for these thieves. Is it illegal? Maybe not and maybe there are a bunch of readers thinking, "Why didn't I think of that?", but who do you take this to? The foxes are in the henhouse.

MTM327: (June 15, 2010 7:35am)

John, You would have to eliminate those that are in bed with the Government crooks.... That would in itself eliminate Wall Street & BP.

CVBroker: (June 15, 2010 7:33am)

I have floated this before - two years ago which would have made our reality very different today. But it's not too late - Mandatory reduction of interest rates to 2% across the board - period - for all existing mortgage loans. No. Exceptions. Homeowners can't rent for that cheap so there is no benefit to default. If there must be a concession, make it 10 years with it being assumable during that period to allow for job moves, illness, etc. Simple, effective. Banks will now be able to make long term plans. Our mbs become marketable again - homeowners stay in their homes and the market recovers.

donloyd: (June 15, 2010 7:22am)

Here’s a novel idea: Why not re-think the whole lending process as it has evolved. I wasn’t there when Moses parted the Red Sea, but I do remember my local bank holding my mortgageloans in their bank portfolio. Of course, it was not one of the “too big to fail” banks. They simply made loans that made since to THEIR INVESTORS. There is risk in buying a home if you have a mortgage attached, but investors understand risk if a lender offers full disclosure. The market will dictate rate of returns. I realize that a person making $7 per hour will not qualify under normal conditions, but maybe they don’t need the personal liability anyway. Lets get some sanity back to the industry I love and to which I have given my life’s work. Fannie and Freddie need to take a long, long vacation. Can’t trust the crooks in DC to keep their fingers out of the pie.

Higgi: (June 15, 2010 6:49am)

I am fired up about Freddie Mac. The Freddie Mac REO department is losing millions. No due diligence on their REO properties. The local KW Real Estate that is listing the Freddie Mac properties intentionally turns in super low BPO on the foreclosures. They Broker and his agents then buy the properties for .10 to .15 on the dollar. They then do a same day close and make four to five times what they paid for it. If these properties ever actually hit the market they would go for 5 and 6 times what the KW Broker and his agents are paying for it. If Freddie morons are letting it happen here. They are letting it happen all over the country. On the other hand Fannie Mae does not let investors purchase the property during the first 3 days. So home buyers who plan to actually live there bid on the properties and drive up the price close to market value. Freddie Mac is losing millions in our market because they let crooked people take advantage of them. How do we get this info to Congress?

Ancient Appraiser (Retired): (June 15, 2010 6:44am)

Freddie and Fannie would have a more marketable product if they would allow the housing industry to recover. With the advent of the AMC's I have seen markets that have been stabilizing get the rug pulled out from under them by shi**y appraisals making the next round of homes worth considerably less. Until lenders start using "QUALIFIED" appraisers and underwriters the housing industry will continue to decline and the resulting loan paper worthless.

GaryP: (June 15, 2010 6:37am)

kkric, what you are talking about is the system that was in place before the creation of the secondary market system and the creation of the agencies. No bank, no matter how small, is going to have the kind of liquidity needed to continue lending if there is not a secondary market. There has to be some sort of investor behind them to buy the loans. Besides, what happens to all of the mortgage brokers and bankers out there. They would be shut down by your suggestion and the mortgage industry as we know it would no longer exist. They exist for a reason, they filled a niche that the banks (or savings and loans) couldn't fill. I guess you're not old enough to remember the last financial crises that hit the US that involved small savings and loan banks back in the 80's. Whoever is doing the loans, they will still be vulnerable if the same lending practices occur that got us here. Does it really matter if a big bank, or hundreds of small banks, fail. The result is the same.

TS: (June 15, 2010 6:30am)

OK for all the brain surgeons out there...if you eliminate Fannie and Freddie where do the loans come go???? 99% of all the loans have to be sold sooooo where are they going to be sold if Fannie and Freddie are gone? Hey lets make another few entities to do what they do. Wow think of that nightmare enduring new guidelines and products. Or maybe we already have the new entities... the big four Citi, BofA, Wells, Chase? But problem is they have to sell their loans somewhere so the are still liquid banks?

GaryP: (June 15, 2010 6:27am)

OK, here is te question, what do we replace FNMA and FHLMC with? A new version of the same old thing. Besides the Treasury had the agencies buying up a lot of bad loans in 08 & 09 so that they are concentrated in one place and not scattered across the entire financial industry. I think the losses are artificially high as a result of this policy. The losses won't go away if the agencies shut down, they'll just go somewhere else, like the Treasury dept. Who do you tink can do a better job of managing them, the agencies or the Treasury? With UW guidelines as tight as they are now, the agencies will eventually work through this and be back on firm financial footing. My suggestion is to not fall prey to the knee jerk political reaction that is taking place right now, and in stead think of a better alternative. What would that alternative be? At least with the current tighter UW guidelines, there is at least some good, profitable loans to offset the losses.

SBWitmer: (June 15, 2010 5:05am)

Sad to say, the future probably holds one sole government agency housing Fannie, Freddie and FHA. Theres just no way we can continue to fund their loses. ** I've created a Facebook page for all mortgage professionals called "MORTGAGE PROFESSIONALS UNITE" and its meant as a meeting place to discuss ideas and scenarios. Please join. **

jim-appraiser: (June 15, 2010 4:55am)

The way I see it, the Sub-prime loans have infected the whole pool of loans held by FNMA and Freddie Mac making all the pools unsanitary and of little interest to investors. One needs to cleans all these "turd" loans out of the pools so that investors will return to the pools as safe environments for their funds. Then put the "turd" loans in their own septic system and deal with them separately.

JOHN135: (June 15, 2010 4:42am)

MTM, WHERE YOU WANT TO GET THESE SMART PEOPLE FROM? WALL STREET OR MAYBE BP.

Hammer: (June 15, 2010 4:29am)

$160B, $1T - who cares? We just borrower it anyway, it's not like we have to have the money...... ;-)

MTM327: (June 15, 2010 4:02am)

Let's just face the fact that anything the Government has it's hands on either is, or it becomes a failure! Let the private market work this out... There are allot more smart people that DON'T work for the Government out there!!!

kkric: (June 15, 2010 3:36am)

Here's the solution. Phase out loan sales and the secondary market and foreign investors, and the whole system that sucks. Invent something called Savings and Loans. Restrict most of their lending activity to making home loans. Have thousands of them around the country. None would be too big to fail. Don't heavily regulate their loan products. If one came up with too creative a product, it would go out of business. No problem. There are thousands more. Of course, common sense underwriting and people that can think beyond a broken loan formula cost money. So, don't make them compete with Fannie/Freddie low borrowing costs. Have them add a 0.5% "subsidy payback fee" to their loan rates. Don't pass this on to the investors. Keep it to help Fannie/Freddie payback the govt, and then phase them out. (The old S&L bailout only cost 20 bil and was only because of commercial loans. Never a problem or bailout for good old fashioned common sense home loans).