The Indymac Slap in our Face. 02.08.10 | Peter Cefaratti : Greenwood Lending : Charlottesville, VA

ModernMiss: (June 13, 2010 2:13am)

P.S. It's been 5 mos and no more comments :( What gives? also see... http://onewestbankfail.com/join-class-action/ will it even matter if you did? IDK but check it out! APPLY for a CLASS ACTION AGAINST INDY MAC/ONE WEST BANK!

ModernMiss: (June 13, 2010 2:10am)

P.S. It's been 5 mos and no more comments :( What gives? also see... http://onewestbankfail.com/join-class-action/ will it even matter if you did? IDK but check it out! APPLY for a CLASS ACTION AGAINST INDY MAC/ONE WEST BANK!

ModernMiss: (June 13, 2010 1:02am)

I'm currently in my condo that I purchased for $95k (After it was bought by a realtor for $70 on foreclosure) now I owe $110k+ and have been unknowingly denied for TWO loan mods after I was told that the first application was LOST (not my check for the NEW, lower payment, JUST the papers that came along with it) and the second time when it was allegedly 'received past expiration date of loan mod offer'... (insert cricket chirp and gunshot) where the HELL does the gov't get off... It's going on a year and now I'm in short sale.. yes I've enjoyed 'free' rent for a while but now that I'm trying to KEEP my home I'm at my wits end (almost!) IF YOU GUYS can help ME a struggling, 25 year old gal in ATL- keep my lil apt conversion condo... I'd be so indebted to you (in the same way that One West is to the FDIC!) lol.. HOPE TO HEAR BACK! THANKS ~MM

vlsmith: (June 04, 2010 12:30pm)

I lost my home to indymac who sold it for 126,100.01 The purchaser was Robin Investment, Tustin, Ca. I believe thre might be a connection, but I don;t know how to find out. I enjoyed your video very much.

ChrisWestSac: (May 13, 2010 7:28am)

Interesting. This would explain some of the nonsensical pricing I see when I do an appraisal. Nice that we are required to include listing comparables in a market dominated by short sales and REOs.

konadok: (April 15, 2010 9:28am)

Great post! Now I am wondering if other lenders have a similar deal as OneWest. My suspicion is borne of the fact that EMC/Chase are making it almost impossible to get a loan modifications. They are actually encouraging foreclosure! To make matters worse, they report deliquencies to the credit agencies even though they tell the borrower they do not do that during the loan forebearance process. By trashing your credit they essentially take away the most important motivation a borrower has for staying out of foreclosure. You have to give the crooks credit. They figured out a way to convert "toxic" assets into delicacies!

TheFyouSay: (April 09, 2010 8:14am)

DOWN BY THE RIVER!

TheFyouSay: (April 09, 2010 8:14am)

DOWN BY THE RIVER!

Anonymous: (April 09, 2010 8:01am)

CJmiller: Is your offer close to 90-95% of the real value? If so it will probably go through.

Anonymous: (April 09, 2010 8:00am)

CJmiller: Is your offer close to 90-95% of the real value? If so it will probably go through.

cjmiller: (April 08, 2010 5:59am)

Im actually on the other side of this in trying to buy a short-sale home owned by OneWest. By all of my calculations, the offer Im making them they still stand to make over 35k. Anybody have any experience with them buying a short sale? I'm trying to see if they will just do calculations and make a decent profit from the governmment or will they try to drain me and the government. With the deal they have they can't lose! I don't get it? They should be pricing these homes to put people in them and to keep money circulating. They say its a buyers market, I will soon see hopefully.

Mako: (March 29, 2010 7:51am)

Great post guys but dig deeper it gets worse. As it reads, the FDIC deal with OneWest appears to reduce OneWest's purchase price below 70% of loan value for first mortgages, on a sliding scale,if the loan is delinquent at the time of purchase. As I recall it goes down to the neighborhood of 56-58% for 90+ days late. My loan was actually current when OneWest closed, except that they or the FDIC returned two of my previous three payments in March 2009 and, mis-allocated the third payment so that my loan as of March 2009 showed 90 days late as far as OneWest was concerned. I was told specifically that the 'investor', i.e. OneWest, cancelled my modification because ... are you ready? ... "the investor thinks they can get more for the property by other means." This case is a long way from being settled.

LoanLawMan: (March 12, 2010 3:02pm)

Anyone who is in a foreclosure situation, ESPECIALLY those involved with IndyMac or One West needs to contact me. Every story that I read on this discussion reaffirms that what my company is doing every day is very, very necessary. We STOP foreclosures! We have gotten homes back for our clients even AFTER they've been sold at auction! We continue to successfully negotiate settlements that result in fair terms to the borrower (principal reduction to Fair Market Value, par interest rate regardless of credit, etc.), up to and including reconveying title to the borrower...meaning they got the home FREE AND CLEAR~!!!!! We have one client who, through our process, hasn't paid their lender in 32 months!!!! If you are in a bad mortgage situation, if you've tried working with your bank, and got nowhere, if you are underwater and can't get a refi, if you believe that your rights have been violated, I CAN HELP YOU!!! tthissell@wcproperty.net I will respond.

: (March 11, 2010 11:18am)

I saw the story news 10. I am a victim of one west. My husband,I and our 2 kids built a house on 5.75 acres while living in a trailor. My husband is a framing contactor business is very slow. I lost my job as a phlebotomist. we fell behind on proerty taxes. we couldnt come up with the $11,550 for the 1yr of taxes plus they wanted next years taxes to be put in an escrow account so we needed $25,000. WE did not have it. hard enough to pay our mortgage of$3300. Indymac said they would add it to our payments making my mortgage $6600.00 per month. We tried everything to save our house. It took 7 years of our lives to achieve this goal. about $300,00 of our own money and the love and sweat of our family.after almost 8 months of calling sending paperwork only to have them loose it.a frustating game . I made a formal complaint. It pissed them off and i got a nasty letter saying We dont qulify for anything and it would be cheaper to foreclose than to modify us. they stole my house in Dec

nvrpc: (March 09, 2010 5:26pm)

Why isn't this on national news for all the people to see, the banks don't lose and the American tax payers are taking it in the shorts. To boot when you walk away , you get a 1099 for what every you took as a second leaving YOU with about a $70K tax bill. Have a good day. http://www.americagonestupid.com and cick on Grand Thieft Homes

ChaseSucks: (March 04, 2010 5:41am)

I recorded 7 phone calls I had with chase: 4 in loss mitigation, 2 in imement default and one in executive. We submitted 4 home modifications and got the runaround for over a year. Chase is programmed not to work with home owner because they will make more money by my wife and I losing our home then for them to modify our loan, thus keeping us in our home - it's a HUGE money making machine for them and they don't care about families losing there home. The recordings I made they all contradict each other leaving me to believe it's a total scam - and to top this off Jamie Dimon got a 17,000 share bonus at a strike price of $47 per share - Obama's plan has done nothing for good customers like my wife and I who paid our loan faithfully for 6 years - now we're renting it out and not paying Chase a dime - Chase, go fudge yourself.

JamieDimonKissMyA**: (March 04, 2010 5:19am)

Jay - kiss my a**, you probably work for Chase you dip sh*t.

Jay: (March 04, 2010 1:35am)

Wow, are you guys smoking crack? You will take any point and Faux Newsify it, won't you. Face it, you've got egg all over your face and you created a video based on phony made up facts from some struggling agents blog. The FDIC corrected all your inaccuracies so now you try to turn the actual terms of the agreement into another conspiracy theory. Wow, you guys really are desperate for attention.

Karen: (March 04, 2010 1:31am)

So I clicked on the FDIC response and read this: 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. NOW THEY ARE ASKING FOR ANOTHER $15.x billion from the fed/ treasury --are they not?

Mike: (March 02, 2010 3:26pm)

HANGTOWN FORECLOSURE THE TRUE FACTS ARE: YOU WILL NOT GET A LOAN MODIFICATION, AND, THE BANKS WILL TAKE YOUR HOME BECAUSE MOST OF OUR LEGAL SYSTEM IS CORRUPT AND WILLFULLY AIDING THE BANKS. This homemade film exposes the TRUE STORIES and interviews families who have been trying to get a loan modification only to find out that they are being set-up and lied to by the banks and mortgage companies. By alleging to lose your paperwork and many other tricks, homeowners are finding out they are already on the list of Pre-Fabricated Foreclosures. How could these supposed professionals lose your loan-modification documents over and over? SOMETHING STINKS IN AMERICA! See and hear first hand, stories of homeowners who are stressed out, broken and angry once they learn the truth. They are shocked and caught off guard when they find out these pretender lenders never intended to work with them as promised, and who are getting away with massive theft of homes they do not own – and destroying communities all over America. America is in the midst of a Foreclosure Crisis that is predicted to increase at the alarming rate of over 400&

Bob Hertzog: (February 27, 2010 11:39pm)

James, call me. I'd like to hear more about this. I wrote the blog that this video is based on, titled "Is The FDIC Killing OneWest IndyMac Short Sales?", and this type of information could be very useful in our efforts to get this to mainstream media. Thanks!

Bob Hertzog: (February 27, 2010 11:39pm)

James, call me. I'd like to hear more about this. I wrote the blog that this video is based on, titled "Is The FDIC Killing OneWest IndyMac Short Sales?", and this type of information could be very useful in our efforts to get this to mainstream media. Thanks!

James Donovan: (February 27, 2010 4:11pm)

Here’s the story and you make the decision. On July 11, 2008 the Office of Thrift Supervision seizes IndyMac Bank, FSB and strips the assets from IndyMac Bancorp Inc. (This, after knowingly and willfully allowing the Officers of IndyMac to commit fraud related to reserve requirements.) At the same moment FDIC is named “conservator” and establishes IndyMac Federal Bank, FSB. The shareholders of IndyMac Bancorp are wiped out in bankruptcy and can make no claim to the assets of the failed thrift although many were stake-holders in the notes and mortgages. The Federal Home Loan Bank is made whole on a 600 million dollar loan and nobody else can sue to recover damages, (little guy screwed again). The FDIC, as conservator operates this new bank for a period of nine months. (Never once goes to the actual mortgagors and offers to let them refinance out of the loan at a discount or purchase their own Note at a discount higher than what Dell, Soros Mnuchin and Paulson paid for them).

James Donovan: (February 27, 2010 4:09pm)

On March 06, 2009 the FDIV creates a new Company called IndyMac Venture, LLC. At the same time, Dell and the boys are creating IMB Holdco, LLC. (Now this next part is fun-because it all takes place on March 19, 2010 with some of the most expensive lawyers money can buy). Both sides are setting up the silo from different sides and they all meet in the middle with IndyMac Ventures, LLC being the center of the structure. FDIC names itself Receiver (no longer conservator) of IndyMac Federal Bank, FSB, they create a contribution agreement between IndyMac Federal Bank, FSB and IndyMac Venture, LLC in which they contribute substantially all of the assets of Indymac Federal Bank, FSB to IndyMac Venture, LLC and in return the FDIC receives a Participation Agreement from IndyMac Venture, LLC which allows them to share in the future interest of the mortgage loans. (They still get paid monies on the loans they financed for Dell & the boys). At the same time on the other end of the silo Dell and the boys deposit 1.4 billion dollars into IMB Holdco, LLC. (This is the holding company that actually benefits from the loans in the end). In turn they create the

James J. Donovan: (February 27, 2010 4:06pm)

Now this is where they get cute! On March 19, 2009 IMB Holdco transfers the 1.4 billion to intermediate holdco, or One West Venture Holdings, LLC and they do not purchase the loans from the FDIC – they purchase the interest that the FDIC had in IndyMac Venture, LLC. The loans have never left IndyMac Venture, LLC and the majority are still held on MERS under IndyMac Federal Bank, FSB and the FDIC still gets money from these loans daily. Sheila, tell the people who you are really protecting because some of us already know. As a closing note, when adding in the actual value of the deposits, servicing platforms securities owned, loan servicing rights, etc… The actual amount paid for the interest in IndyMac Ventures, LLC by Dell & the boys is forty nine cents on the dollar. Of which they only recapitilized with 1.4 billion in cash. The scariest part is the FDIC has many of these same scenarios and so does the Federal Reserve Corp. through entities like Maiden Lane, LLC, which also includes the likely candidates Goldman, Deutshe, JP Morgan Chase, Socieliete Generale, AIG. So ,are we protecting any group or the whole damn monetary structure. You make choice… I know the answer al

SETHCO: (February 27, 2010 9:10am)

I am a general contractor and we are working on a few deals with the GSA. These deals pay for themselves plus a very nice profit over the term of the lease signed by the federal govt, yet we are still having a very hard time finding financing for these deals. I agree with the fthebank about "Private Equity Approach", but where do I find the private equity?

fthebank: (February 26, 2010 9:24pm)

This is why Americans must take "The Private Equity Approach" to their personal finances. The New York guys would and have walked away from billions in loans because it doesn't make business sense to keep paying on them, but when a waitress with two jobs walks...she's a deadbeat. One set of rules for all! www.fthebank.com

GodBlessBANKofAmerica: (February 26, 2010 8:31pm)

As a licensed attorney who currently has more than 50 clients with active loan modifications or trial plans leading to actual modifications I must admit that this video does not surprise me one bit. For every client I have helped I have turned away dozens. The first question I ask prospective clients is "which bank is screwing you". Their answer determines if I can assist them or not. Most of the big banks will not even stop the foreclosure process while the attempt to modify the mortgage. Why would anyone be surprised that these bankers are making out like bandits. Anyone who truly beleives that ANY bank wants to help homeowners needs to put down the crack pipe. The simple truth: BANKS ONLY ACT IN THEIR BEST INTEREST. Let me repeat this so that everyone is clear.....BANKS ONLY ACT IN THEIR BEST INTEREST. We allowed our government to give away the store. We have been ripped off by our banks and now they are letting us pay them to fix the mess they created.

MrsMonEPenny: (February 26, 2010 2:38pm)

This goes to Mike..who is a "OneWest Bank"sympathizer...if we had 2.9 million foreclosures last year and a expected 4.5 million for 2010..how long do you think it takes to get to 2.5 BILLION DOLLARS..to get the payday on this deal? Do the math???...If the banks needed $500 billion dollars to help them get out of the hole..then 2.5 billion dollars is a drop in the bucket???...so does anyone have the figure and the TOTAL 1)Amount of foreclosures done by OneWest Bank since they bought IndyMac and 2)How much is the dollar amount of the foreclosures?...I BET YOU OneWest Bank has a group of accountants keeping down to the penny taps on how close they are to the golden egg!!

go4home: (February 25, 2010 9:11pm)

As a Realtor, this explains why when I had a full price offer on the table on one of my short sale listings, the lender (having turned down all offers over the course of a year) now can't decide if they want to take the full price offer I have had on the table for 3 months now. Hum, I couldn't see any logic in their indecision, but maybe now I can.

NOT HAPPY: (February 25, 2010 2:41pm)

HEY FOLKS HOW DO WE USE THE INFORMATION TO SAVE OUR HOMES. IS THIS SOMETHING A BANRUPCY ATTORNY COULD USE IN A CHAPTER 13 PROCEDEING?? hOW DO WE PREVENT A FORECLOSURE WITH THIS INFORMATION??

olbluetoo: (February 25, 2010 12:12pm)

After 14 months, we finally gave up and let the house go into forclosure (Merry Christmas!). The week before the auction, a freind in the mortgage industry found out the truth and told us about the OneWest golden handshake. Make sense now. What was most interesting, we had been accepted for a modification in February last year. We signed the agreement and sent the first payment. In March, we received a notice that we no longer qualified. Now we know why. At least the Feds were willing to do something when they owned it.

canesfan: (February 25, 2010 6:45am)

All my credit cards raised int rates to 22-25% in last 2 months even though never late on one of them EVER. WHy do they make it harder to pay them off if they are so worried about defaults? You would think they would make it easier for someone already paying them timely.

domino: (February 24, 2010 6:33pm)

we are filing BK7 ~ self employed/honestcompany / unable to stay in business due to all of industry (bldg) collapsing (made personal guarantees to all vendors) / owe state board 500G (paid emplyees instead of taxes)/ we have 3 homes (kids live in) / never missed a pmt in our lives (credit score 700) / no paycheck for 8 months / used all of savings / now atty tells us to stop making all payments on EVERYTHING / I'm just sick ~ I don't want to lose my home(s) / whre is OUR BAILOUT / WHO Protects US / the phone calls are making me crazy / any thoughts / how can we stop this THIEVERY?? * H * E * L * P *

MKWisaCHOAD: (February 24, 2010 3:21pm)

n layman's terms, the FDIC is in the hole by nearly $21 Billion, and it is very likely that they are tapping their $500 Billion credit agreement with the US.Treasury/taxpayers. The fact that tax payers are on the hook to the fdic is obvious MIKE MKW

ProHobo: (February 24, 2010 2:56pm)

Sheila Bair failed math 101 - not only has the FDIC kepth their reserve ratio at very low levels (below their own mandate) before the crisis, they continue to leverage up positions - assuming more risk. Of course they have the full back stop of the Treasury - but come on now. Last fall they DID run out of money and had to go to the Treasury. They are now asking for those banks to back-pay their insurance (why didn't they do that back in 2005, 2006, 2007?) It looks like they are about to go into the red again. With 1 in 11 banks (702) now on the default list - it is not looking good. Regardless how true this video is - now doubt the FDIC has done a horrible job managing their own risk.

LFK: (February 24, 2010 12:09pm)

As a Real EstateBroker/Agent for 24 years and a landlord in multiple states, I can tell you this.BEWARE THE LENDERS, they made the situation, they are making this situation and they are making more money now than then.They have power over our politicians at will and change the rules at will. Just take the credit card fiasco.As long as we elect these idiots to run our goverment the wall street finance guys will have their way with everybody.Not only are they getting paid off by them but its all LEGAL because they make the rules.Ethics its a joke.None of these theifs have gone to jail or lost their fortunes.Untill we let the real market work and people get forclosed on and debt turns into equity our housing market won't work.

Mike: (February 24, 2010 9:41am)

These guys are couple of fast talkers who play loose with the facts, and go straight to emotional manipulation; “Be sure to listen closely, because this is gonna git yer blood boilin”. Are they auditioning for Fox News? In their short sale example, they imply the FDIC has cut a check for $195,360 to cover the banks loss and then some. According to the FDIC, they have “yet to make a single loss share payment to OneWest”. Are they lying? Give us proof if they are. They also imply that the taxpayers are the ones who are paying for all of this. The fact is that every dime of the DIF has come from banking fees. This could change if things get much worse, but as of now no taxpayer money has gone into the FDIC’s DIF.

MKWisaCHOAD: (February 23, 2010 11:41pm)

MKW, seems to view these corporations through rose colored glasses. MKW fails to mention things like TOO BIG TO FAIL and TARP. MKW must be benefiting from zero interest loans and other free money scams. Sorry MKW, you seem to understand financial arrangements that the TOO BIG TO FAIL banks don't actually understand. Except for this principal: when all else fails, fleece the public. Enjoy your bonus MKW.

stressedout: (February 23, 2010 4:35pm)

well my nightmare is two years in the making i had indy mac .my house developed two sink holes and flooded house is not habital and been waiting for word from them have faxed,mailed,certifyed letters to legal department,customer service department and paid loss dept and to this day no responce and house has to be torn down .hired a lwyer to handle insurance and after that not enought to fix house or sink hole. can any one help please

lynn: (February 23, 2010 1:33pm)

Hi everyone: What do you do in this situation? the lender is the same on the first and second loans. they modify both 1 year ago. All paperwork in hand. They never record either of the modifications on the property. They sell the 2nd to an outside company that thinks they purchassed a charge off loan. It has been since 6-09 and the proposed new owner of the 2nd has not sent a statement out. When the original lender on the first and second is sent certified letters about all of this. They sign for the letters received. They never respond back. What do ya do in a case like this???

apple eater: (February 23, 2010 10:39am)

IndyMac and OneWest are far from the only ones who are involved in this scandal. There were sometimg like 50 danks who got TARP funds. BOA just refused to do mods until they gave the TARP funds back and are one of the worst to deal with. There is so much loan graud done by the banks with RESPA and TIL vilations they should all be shut down and made to pay respitution.

Diane: (February 23, 2010 5:09am)

What about theother big banks? B of A, Citi, Chase, Wells -- do they have similar agreements with FDIC?

RAJA: (February 22, 2010 9:27pm)

GREAT JOB, MAKING THESE THIEVES MORE NAKED. THE GOVERNMENT IS PART AND PARCEL OF THIS GAME

REagent: (February 22, 2010 3:58pm)

You guys also NEED TO add this vital part. Short Sale sellers get a 1099 on the difference from the original loan balance and the short sale offer. If what you are saying is correct.. that means sellers are getting taxed, when OneWest isn't actually losing that money... Very shady...

MKW: (February 22, 2010 3:07pm)

CaptainBK. I am sorry to hear of your client's circumstances. That said, whether or not One West negotiated in bad faith, or weather or not they were not doing mods is not pertenent to my post. My point was that the "sweetheart deal" story angle with the FDIC burdening the tax payer to help fat banking cats is just not true for many reasons. There is no need for outrage at the FDIC. The fact is that the FDIC is chartered with responsibilites that include making sure that depositers get their deposits back without tapping out the insurance funds of the FDIC. They need to find healthy banks to take the assets and liabilities of a failed banks, and this is risky business for healthy banks. It is hard to find banks to take these bad banks assets/liabilities unless the FDIC provides some combination of good pricing and risk reduction (in the form of insurance)for the new bank.

CaptainBK: (February 22, 2010 1:29pm)

MKW...sorry but, that's BS. I am a BK Attorney and been forced to file 4 Emergency BK's, (I REALLY hate doing so), because One West Scheduled a foreclosure sale in the middle of good-faith negotiations! They were requesting Docs....debtors submitting....then...w/out notice...we discover a sale has been set for the next day! Total Bad faith..............they are simply NOT doing mods................all 4 would easily qualify based on income.........

mkw: (February 22, 2010 1:00pm)

The audience submitting to this discussion seems comprised of both very sophisticated finance professionals mixed with others who's lives focus on things other than finance. For those who are outraged but have not dedicated thier lives to banking my below post attempts to explain in very very basic form the logic behind the FDIC's behavior. There are many other very good posts in the thread here from bankers and finance people. If you are neither and are upset read their posts as well, you will not feel so outraged after.

mkw: (February 22, 2010 12:38pm)

Presented as it is, this seems unsavory, but the real circumstnace is very very much more complicated. Super complicated in fact. Breifly, banks need a certain amount of reserve assets to avoid takover by the government. Taking over bad loans creates increased liabilities, and any bank purchasing a failed bank laden with bad loans would, at the time of aquisition of the bad loans, suddenly have many more liabilites and need many many more assets to cover the new liabilities caused by the bad loans. If new assets to cover the liabilites were not added to the balance sheet, BY LAW, the purcahsing bank would have to be taken over by the government too! The FDIC insurance IS the ADDED ASSET, offsetting the bad loan liability. If the FDIC didn't offer this, the FDIC could not find any bank to buy the bad loans, because the buying bank would have to be taken over too. Ideally, these new assets could come from private investment, decreasing FDIC's cost but good luck on that in this economy.

Suzanne: (February 22, 2010 11:04am)

Please watch this video on "You Tube" by Glynn & Coco Phelps--type Wells Fargo Home Fraud. Beware: If you're trying to get a loan modification (doesn't matter which lender), you just might find your home on the auction block; that is "after" you've made a number of modified payments!

48jaybird: (February 22, 2010 9:41am)

I have been trying to work with Welsfargo since July 2008 and I have only missed one payment in 2008. Around May of 2009 America Service Company told me I was under review and I didn't have to make a full payment. I have been through 2 and now going on my third trial period. I have documents and recordings. They keep asking for more information even after I have given them everything they have asked for. I am lost on what to do. Ohio is a judicial state.

GeneralTaylor: (February 22, 2010 9:35am)

These guys are morons. Get the real facts: http://www.ritholtz.com/blog/2010/02/why-the-indymac-slap-in-our-face-02-08-10-is-pure-baloney/

AttorneyDavidNelson.com: (February 21, 2010 10:52pm)

Here's a fun point: If you home is worth less than the balance on your first mortgage, you can file a bankruptcy and either discharge your personal obligation to pay the not or discharge your personal obligation to pay the note and strip lien off of your home at the same time. I see it all the time, people with a first of $300K and a second of $100K and a home worth only $200K. They file a chapter 7, quit paying the 2nd or Heloc and work on a loan mod on the first. The 2nd or Heloc could legally foreclose but in practical terms, when they be able to? It will be years and years before the home has enough value in it again to make it practical for the 2nd to foreclose.

AttorneyDavidNelson.com : (February 21, 2010 10:46pm)

@ Falling Dominoe, you can discharge certain taxes in Bankruptcy if you do it right. Ask your bankruptcy attorney for details. You do have to file your bankruptcy 3 years after your tax returns were due, if you got an extension, then they were due in August or October. I suggest you wait a while if you can. Again, do not take this as legal advice on my part, but as a point to discuss with your bankruptcy attorney. http://www.AttorneyDavidNelson.com

Mary Beth: (February 21, 2010 4:52pm)

Who owns One West Bank?

falling dominoe: (February 21, 2010 10:51am)

we have recently been forced to let our mortgage go~one payment behind~wellsfargo~no modification help~we are at the beginning of BK7 with CA Tax Board owed $500G~self employed trying to keep doors open~paid employees instead of taxes to keep food on many tables ~ any ideas? the phone calls are horrid~accountant told us we are TOO HONEST~always did everything by book. Any thoughts or suggestions would be greatly appreciated!

OldRTC: (February 21, 2010 8:00am)

Great video. I'm ex-RTC'r. L/S agreem'ts appear to be an effort by FDIC to not have another RTC for this crisis. Smart move. This is way bigger than early '90's. There is no way FDIC could deal with these assets from failed banks. Around 200 banks closed so far and probably 200 still to close this year. Recent article said 3,000 banks are in jeopardy due to commercial real estate loans. Loss-Share Agreements are a part of almost every bank closing and subsequent sale. These are mostly insolvent community banks being closed then purchased by other solvent community banks. From what I've seen, most of the assets are commercial, which includes residential land purchases for development, development loans and residential construction loans. The FDIC wants these assets in the hands of the private sector as quickly as possible, hence the profit incentive to take the loss and move on. Acquiring banks have 5-7 yrs to deal w/ these assets. They should work w/orig. borrowers on workouts.

PPY: (February 21, 2010 12:34am)

"OneWest bank profit: $1.6 billion As IndyMac, it sold last year for less than that. Investors win, but the FDIC could still lose nearly $11 billion on bad loans that the Pasadena institution made before its sale." http://articles.latimes.com/2010/feb/20/business/la-fi-onewest20-2010feb20?pg=2 *imho*

stan: (February 20, 2010 10:00am)

Wonder if we can get our law makers to make a law where no mortgage can be sold/assigned/transfered without both parties permission? Probably not because mortgages are packaged and sold as investments and the rich lenders would fight such a law tooth & nail. This would have stopped OneWest from stopping our remodification we were in the middle of doing with Indymac and because OneWest took over two months to let us know they had our mortgage OneWest then put our house in default while we were waiting thinking we were working with IndyMac!!

muskrat: (February 20, 2010 9:24am)

to Banker: where do you think the premiums banks pay the FDIC come from? the tax payer!

Bob: (February 20, 2010 7:24am)

Profanity is so rude and immature. I recently found another way around government failures in helping people. shoot me an email, I send over the info. Private funds love helping people! Boblee747@cox.net

I SEL DRT: (February 20, 2010 7:05am)

I am a Realtor in Florida and have been telling my customers short sales are worth the wait. But most agents run away from them. This info backs me up! As for some of you who post on this, did you know name calling is so very immature? I imagine you must have a broader vocabulary. Why not try using it so the rest of us can forward this on to our customers with fear of offending them with your vulgarity! GROW UP!

Sad Realtor: (February 19, 2010 6:48pm)

I know a seller that recieved a loan modification that allowed him to go without payments for 4 months due to a divorce and lost jobs. They understood that these missed payments would be tacked on to the end of the note. Instead, the full amount was called due the 5th month - devastating the seller and forcing them into short sale. This bank also threatened an expedited foreclosure. Now the seller's have both gotten new jobs and there seems to be no redemption. The tax credit time line is keeping buyer's from making offers because their agents don't believe it possible to get an answer from the bank in time to get their buyer's closed. It is February and the home must close by the end of June to recieve the tax credit - that is 4 months! It is very disturbing to have such a lack of confidence in these banks but, the reality is, in most cases they can't get it done!

en1swporter: (February 19, 2010 6:36pm)

Guys great infor. I'm buying a short sale condo and I thought I was getting it for a great deal. Actually the bank is making an additional 20k on the offer. At first the bank want the place to go into foreclosure but my agent talked to the selling agent and it looks ok, But i will be ware of these banks practices. My gf (loan officer) took 4 mths to get her client a loan modication. the banks don't want to give it to you.

Sad Realtor: (February 19, 2010 6:36pm)

I am a realtor and my experiance with short sales have been excrutiating. The lender claims to be taking short of what is owed and after a long drawn out process of feeling harrassed by a lack of communication from the short sale bank. Daily agonizing about sending seller requests of information to be released to agent - one day the bank has it, the next they don't! None of employees must be paid well enough to be competent, customer service is at it's lowest! If our government is so concerned about creating jobs and helping the American people - they could triple the employee base at the short sale divisions of banks and improve this process. Short sales should be titled Long Sales! In the end there is a small win for the losing seller, according to this information, a big win for the bank and the realtor takes it in the shorts! For some of the most frustrating work a realtor does with the intent of helping a desperate seller, there are deep commision cuts.

Sad Realtor: (February 19, 2010 6:35pm)

I am a realtor and my experiance with short sales have been excrutiating. The lender claims to be taking short of what is owed and after a long drawn out process of feeling harrassed by a lack of communication from the short sale bank. Daily agonizing about sending seller requests of information to be released to agent - one day the bank has it, the next they don't! None of employees must be paid well enough to be competent, customer service is at it's lowest! If our government is so concerned about creating jobs and helping the American people - they could triple the employee base at the short sale divisions of banks and improve this process. Short sales should be titled Long Sales! In the end there is a small win for the losing seller, according to this information, a big win for the bank and the realtor takes it in the shorts! For some of the most frustrating work a realtor does with the intent of helping a desperate seller, there are deep commision cuts.

Just workin': (February 19, 2010 5:11pm)

I'm a RE broker who does a lot of Forclours, while I'm sorry that some hard working stiffs lose their job, then their home (It really does bother me)however............ The number of 2nd homes (mostly vacation) and properties bought as rentals is suprisingly high. These people bought when the market was booming planning to make a guick buck, but unfortunately did not get out in time (just like the people who bought Enron stock). Also the number of toys at some(no a lot) of these forclosures is finamimal! High end bikes, 4 wheelers, boats, sport cars, horses, you name it. When people live on the edge they should not complain if they fall off. You can't take a interest only loan, then buy a bigger home and plan on re-fi later. Nor is re-fiing, then taking the cash to buy an investment property or toys. For some, I truly feel bad, however most of what I see is greed, now they want everyone to feel sorry for them. Plan your life and be responsiable for your self. Spell check not used

indymac depositor: (February 19, 2010 4:15pm)

where did all my money go from indymac..i was one of the depositors who paid taxes and saved and lost any money i was trying to save so I can live on because of my disablity since i was over $100K and now all these people who bought stuff that they could not afford. You can go to indymacdepositors.com to get more info.

Zeke: (February 19, 2010 4:14pm)

I totally agree with dvsachitect. Easy to point the finger at all of someone else's problems. I can give example after example of instances where the USA has come to the aid of others. I say enough is enough. We want our money back now with interest. What is really sad is most countries are still recieving aid from our country and point the finger back at us like we are evil. Shame on your ignorance. For you are the pompous bag of hot wind from the backside!

Short sale agent: (February 19, 2010 3:29pm)

Hi Razors, you don't have to be late on your payment to do a short sale. Keep making your payments and your credit will only suffer minimum. Maybe just 30 points.

dvsarchitect: (February 19, 2010 3:22pm)

Funny how the limeys utilize that superior vocabulary at every opportunity! You know it's not really our fault that socialism doesn't work so excuse the callous attitude when discussing inferior policy forced upon our nation by those who wish the death of capitalism. The same capitalism that rescued all those poor helpless brits from Nazi Germany. You're absolutely right though, America is just a shell of what we once were and mostly due to the sick diseased incorporation of socialist policy and agenda that comes from helping sad degenerate nations like yours compete on the global scale. We've lost our way because people in this country felt sorry for your weak nations. We lost our way because people spent their money on aid. We lost our way because people implemented policy on spending money in your weak nations. We became politically correct to address other nations with open arms and while you take our food, money, and aid you spit in our face like the socialist cowards you are.

LoanLawMan: (February 19, 2010 12:45pm)

Hi Again! OK, so this post that I put up has generated quite a bit of interest, and I'm a bit overwhelmed at how many people are asking for more info. I'm not at liberty to put my organization's info on here, due to our internal policies and the fact that I'm not here to ruffle the moderators' feathers. I assure you, that as soon as I'm able to, I will tell the entire world how to get in touch with me!!! I am doing my due diligence to make sure that what I'm promoting is everything that I believe it to be. A true solution to the problem for the homeowner in these situations. We all agree that we hate the banks, and homeowners deserve to be treated fairly. What I do is make sure that the homeowner is aware of all of the options that the law provides them, and assist them on their decision. I break everything down to an easy to understand level, so everybody will comprehend what I'm saying...not just be able to recite it. I will educate you, and you make your decision. Tolan

Youknow: (February 19, 2010 12:26pm)

am very interested in what LoanLawMan is talking about. My only concern is how legit that it. I've heard people talk about the reducing the principal.

Delmy: (February 19, 2010 12:25pm)

I wonder If this is common practice that most of the banks in the secondary market are doing? getting paid by the FDIC for their deficient loans or even worst being that fanny may and freddy mac are not goverment banks but private banks and are the primary lending banks are doing this. I wonder why the whole economy is just mess up.

THE FACT MAN: (February 19, 2010 12:15pm)

To "Peeved Up": You are a moron. The FDIC is funded by the banks, indeed. But whose money just refinanced the banks' Ponzie Scheme that fell apart like the house of cards it was? It was our taxpayer money that the banks use to fund the FDIC. And let's just say that it isn't this way. The fix is in and selling at a loss gives One West Bank huge profits while continuing to destroy home values. They have no incentive to sell high when selling low is much easier and nets them the same or higher profits. Get a clue, Peeved Up. We're all getting raped by liberals, Republicans, Democrats and their sugar daddy lobbyists. Probably with a good dose of good old boy network too with a spice of "protect the oligarchy" at all costs to those outside the inner rung of the aristocracy. Isn't that what Joe Stark was really pissed about?

PEEVED UP INDYMAC HOMEOWNER: (February 19, 2010 11:04am)

<i>"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."</i> The Federal Deposit Insurance Corporation is "funded by the banking industry"????? No freaking wonder we the can't get anything done in fixing the economy!

saremzach: (February 19, 2010 10:33am)

...since the beginning of time, it's been the battle of "kings and peasants". why would you think it was going to change just because they're calling this one; America ?!?!?

Todd: (February 19, 2010 10:00am)

Where can I get a copy of this video to submit for evidence ?

Stanman: (February 19, 2010 9:45am)

Yes, Yes....so the banks stuck it to the American Working Class yet again. But guess what!!! We will show them who is boss by re-electing the same people who wrote and passed the laws in the first place!! I like to refer to this behavior as American Idiocy. So don't bad mouth the banks, or talk smack about that congressman riding around in a BMW paid for with your tax money BECAUSE WE PUT THEM THERE....AND WE KEEP DOING IT OVER AND OVER AGAIN. So who are the idiots, and who are the smart ones?

TahoeRealEstateTeam: (February 19, 2010 9:19am)

Thank you for such an informative video! Please keep them coming and I will be sure to pass them along!

TahoeRealEstateTeam: (February 19, 2010 9:16am)

Thank you very much for such an informative video. Please keep them coming and I will be sure to pass them on to friends and clients!

rayzors: (February 19, 2010 9:14am)

I am selling my house because I lost my job and had to move. Now Indymac/One West is calling this a short sale because I owe $246,000 and I have a buyer who is willing to pay $205,000. They probably didn't even buy the loan back for this price and they will get compensated for money they never lost. They will sure make substantial profit on this home. My wish is for them to call it even instead of damaging my credit with a "short sale". Is there anything I can do?

Silent_Ben_Franklin: (February 19, 2010 9:10am)

"I can help 99% of homeowners keep their homes..." This is statistically impossible. I will assert it is puffery but not supported by facts. Tolan may be able to do something for some distressed home owners, but don't send him any money until you've reviewed his proposal with your own attorney and CPA. This means you Triad.

Anonymous2: (February 19, 2010 9:05am)

LoanLawMan - can you provide the contact information for your organization?

LoanLawMan: (February 18, 2010 11:16pm)

email me at tobismaximus at hot mail and I will get back to you tomorrow..!

TRIAD: (February 18, 2010 10:55pm)

I would like to hear more from Tolan! How do I get a hold of you?

the one: (February 18, 2010 10:53pm)

Wilshire state bank got a much better deal when mirae bank when under. these were commercial loans. familes go hungry when people loose their business and people make money. BEST PART the person who made all the toxic loans has a twin in wilshire selling all the notes now at a discount!

LoanLawMan: (February 18, 2010 10:36pm)

Don't get angry...get even. I can help 99% of homeowners keep their homes and leave their bank with nothing, and I mean absolutely nothing! Not with a refinance, and not with a loan mod. This is no joke, scam, spam, hoax, etc. This is information that banks DO NOT WANT YOU TO KNOW. They have broken laws, and snubbed their noses at federal regulations...and they've gotten away with it. Until now. I am a sub-consultant for an organization that is successfully reducing loan balances to fair market value and securing them at 4% interest rates fixed for 30 years. No turndowns...period. Nearly every homeowner who purchased a mortgage within the past 10 years will be eligible to take advantage of this. Again, this is FAILSAFE. I hope that the site moderators allow me to post my contact info, so that I can help as many people take this opportunity before banks lobby congress to change something, because they will. I would like to hear from someone about posting more!!!!! Tolan

Nita: (February 18, 2010 8:56pm)

I would like to discuss the issues I had and still do on my Well Fargo Mortgage & Wells Fargo HELOC loan. Dealing with my GSM (Guaranteed Second Mortgage) w\\ my prior employer UPRR Union Pacific Railroad

Agliofiore: (February 18, 2010 8:27pm)

To David: Just noticed your post wondering how many 'government people own or who have family that owns a piece of One West'. Don't know about the rest of the government, but, for the record, employees of the FDIC and immediate family may not purchase or own bank stock. It's a conflict of interest and not allowed.

mels: (February 18, 2010 8:20pm)

FDIC is known for doing this. They say they are resolving problems in the economy but all they care about is making sure they don't have to pay out on insurance. Just think back to the FDIC approaching Citi knowing that they didn't have the money to buy Wachovia so of course WF heard about the tax deals and so on, so they stepped up to the plate and guess what?? they are closing all the Wachovia's and 21 of their own branches. The government hasn't quite got the idea that in order to make the economy better they need to stimulate consumer spending and crack down on bad business practice, and that's not done by giving businesses all kinds of perks because in the end all a busienss cares about at the end of the day is AM I IN THE BALCK OR IN THE RED? If it's still in the red after all the money that was given they are going to still lay off people and the gov't is going to have to support more unemployed people etc.. The cycle continues.

teleprompter: (February 18, 2010 8:06pm)

So Pengee You just want to shift the taxpayer subsidy from the banks to you and your health care. That makes me feel so much better.

Laborer: (February 18, 2010 6:38pm)

Raw Material=Comfort & Growth first who are you and the trouble with your comment is as misleading as the FDIC. Who's future labor pays for these crimes? The worst kind of of currency devalution or the devaluation of someone's labor is when a profit is made for doing nothing basically making a profit and producing nothing THINK ABOUT IT IS NOT A GAME, you must one of those Intellectuals Thomas Sowell wrote about in his new Book.

Raw Material = Comfort & Growth: (February 18, 2010 2:21pm)

Without a gaurantee, no investor will pull the trigger. The exchange is dollars for the buyers labor. If FDIC did not gaurantee the deal, they still have to insure the bank...so whats the difference. The banks off FDIC's shoulders, now its in the new buyers pocket but at the end of the day, its all about making things run as smoothly as possible. Money exist as an accounting system of ones labor. If FDIC insures and gives the house away, its only to generate more work since money really means nothing but a common way for people to exchange labor. The suffering we are going through is so we replenish raw materials and energy for another day. Humans wasted to much and consummed to much when things were good. The bank dealings mean nothing, its just a broken piece in a game we call Capitalism, FDIC just needed someone to fix it and they gauranteed money- ( big Deal ).

ewoj: (February 18, 2010 1:40pm)

Fight Organized Crime = Re-elect No One -Send Home All 544 of Them !!! Congress = 535, Senate = 100, Supreme Court Justices = 9 The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government. Thomas Jefferson

Pengee: (February 18, 2010 11:50am)

And we all wonder what is wrong with the Government. Just think of what they could do with our health care

IhateBofA: (February 18, 2010 11:17am)

Nice video. I think Bank of America has the same arrangement with their buyout of Countrywide. They sure have been making a lot of "profit" to pay the bonuses and "pay back" TARP... And they are so eager to foreclose on any mortgage they can.

Silent_Ben_Franklin: (February 18, 2010 9:27am)

David: (February 18, 2010 7:21am)David: (February 18, 2010 7:21am) I don't think you'll find these deals were encouraged by many family members, although with 535 members of congress odds are there are statistically going to be a few. It's not much different than a no-bid contract, except instead of making a jet fighter, they're getting discounted financial assets with guarantees. The financiers who do this are big campaign donors - and not in obvious ways that show up in campaign finance filings. Our current election system demands money to compete, so candidates and even elected officials spend 30-40% of their time dialing for dollars rather than working for us. The new ruling from the Supreme Court will make money even bigger and unlimited factor. The statistics show that it's cheap to make ads that frustrate voters so that they become apathetic and don't vote. People feel their vote doesn't make a difference. US voter turnout is already low. Sorry about your home.

runester: (February 18, 2010 9:25am)

Now that this has been brought to light, What is been done to correct it....or what can I do to correct this???? Seem that "our" politicans are doing things in "their" interest NOT ours !!! Greed will bring down this Great country of ours if something is not done. We need new people in government. Not politians.

Silent_Ben_Franklin: (February 18, 2010 9:10am)

James J. Donovan: (February 17, 2010 8:40pm), I have no dispute with your analysis. My question is what was the ACTUAL value of the assets? The face value of the notes was $30 billion, but how much of that was toxic debt, how much non-performing, how much had been supported with artificial documentation, etc.? In short, if IndyMac's portfolio was marked-to-market, what was the value? THEN how much of a discount did the new buyers obtain? I assert we'll still discover a sweetheart deal. The guys who ran Countrywide into the ground, and "retired" mere months before the crash, came back to acquire loans at steep discounts. I'll find link from a NY Times story. Keep following those Ben Franklins....

David: (February 18, 2010 8:24am)

It is worse than you might expect. Indymac has been trying to strong-arm me into signing the title of my house over to them. They started with denying my payments to force foreclosure. Which forced me to hire an attorney to force them into accepting payments. And since then they have continued to harrass me on a daily basis demanding that I sign the house over to them and stating that the mortgage is in serious default even though I have repeatedly sent them proof that the mortgage is current.

David: (February 18, 2010 7:21am)

I'VE GOT IT!!! "I wish" there would be an investigation into how many "government people" (FDIC emps, Reps, Senators, etc) own or who have family that owns a piece of One West. I don't know about you, but making over 50% profit is just not possible...in the free market. But when the "free" market (ha ha) is taken out of the picture... Greed...it's not just for breakfast anymore!

James J. Donovan: (February 17, 2010 8:58pm)

If the FDIC sold the 30 billion is assets for 13 billion and the true requirement for the FDIC to orderly liquidate the bank and reclaim the most for the assets of the bank, I need one question answered, wouldn't have been less costly to go to the very homeowner loans the FDIC serviced for a period of 9 months and asked one simple question in a monthly mortgage statement; "How many of you the customer with a vested interest in this proeprty would like to benefit from the fraud committed at OTC that caused this bank failure. You can not buy your loan for 70 cents on the dollar and go refinance elsewhere. They had the bank for nine months - never asked that question. The true evil in banking is the fractional leverage. That is why they want to foreclose.

ruffy: (February 17, 2010 8:47pm)

Thank you! I am subscribing, and passing on this video!

James J. Donovan: (February 17, 2010 8:40pm)

In actuality the way the silo structure is set up they paid 48 cents on the dollar for the residential portfolio which includes FDIC coughing up the 650 million repayment to FHL Bank. The scariest part is the public thinks one west bank bought IndyMac Bank FSB. The reality is Onewestbank did not buy anything. IMB holdco set up Onewest Bank FDIC, along with OneWest Venture LLC as an intermediate holding company to hold the assets for IMB Holdco, whcih is Dell, Soros, Paulson and Mnuchin. They only put up 1.3 billion dollars to acquire 30 billion is assets. Now this is the best, they didn't purchase the loans from FDIC. The loans went into IndyMac Ventures LLC and the intermediate holding company, OneWest Ventures LLC bought FDIC interest in that LLC. This way FDIC can still get paid on the loans as well. Part of the condition to them receiving this sweetheart deal from President Obama and Sheila Baird was that they would continue the FDIC NPV program, of which they do not follow

Lori O: (February 17, 2010 8:15pm)

The FDIC closed on a $1.02 billion "Multi-Bank Structured Transaction" with Colony Capital Acquisitions, LLC on January 07. Colony purchased a 40% interest for $90.5 million (cash, net of working capital). The math is fuzzy, but in the best case scenario Colony paid $.22 on the dollar for their equity interest. I have a commercial loan with a failed bank. I was not an "irresponsible" homeowner or business owner. The bank reneged on the financing after their contractor exceeded his construction budget by over 40 percent and partook in other extremely questionable activities. I worked with the FDIC for 18 months to settle our loan. My offer netted the FDIC $684,000 MORE than Colony's best case scenario. The only concession I received was, "Sorry. We ran out of time." (after 18 months). The FDIC has a statutory responsibility to maximize returns from the assets of the receivership. This is a disgrace to the other banks, borrowers, and taxpayers. omalleyll@yahoo.com

HRC: (February 17, 2010 7:23pm)

Anonymous: You are correct. The FDIC is funded by banking insurance premiums, not taxpayers. The banks are being forced to pay 3 years upfront premiums. The banks have to compensate for this additional expense. The charges are passed on to the consumer, i.e. the taxpayer. The FDIC requested a $100 billion credit line from the Department of Treasury in 2009. While they have not tapped it yet, they almost certainly will do so. Again, those are taxpayer dollars. Do you really believe that all of the irresponsible homeowners surfaced in the last year and a half? Read the audit reports on the Office of the Inspector General- FDIC website regarding reasons for bank failures. The reports note that the FDIC was aware of problems in the banks and ignored them for years. Many banks misbehaved. The FDIC is supposed to protect the depositors of banks by obtaining maximum recovery from the assets. They are not protecting anyone other than the third party financial interest groups.

Axis: (February 17, 2010 7:06pm)

Man this does hit the nail (Congress) with the hammer (Bankers). I have an Indy mac loan, we are up to date but having a hard time. My loan is at 7 plus and I have tried to revise loan with no success. I even called for help from outside party and they asked who my loan was with. When I said Indy the answer I got was good luck and that they have had less luck with them then anyone. Now I know why! This is how we get help, this is how we get relief in any form. Guess I should walk and come back and buy this same home for 40% value! Makes perfect sense! Sick in Colorado

rg: (February 17, 2010 7:05pm)

James J. Donavan: Finally, somebody has chosen to do some research on this! Thanks for the input.

Axis: (February 17, 2010 7:05pm)

Man this does hit the nail (Congress) with the hammer (Bankers). I have an Indy mac loan, we are up to date but having a hard time. My loan is at 7 plus and I have tried to revise loan with no success. I even called for help from outside party and they asked who my loan was with. When I said Indy the answer I got was good luck and that they have had less luck with them then anyone. Now I know why! This is how we get help, this is how we get relief in any form. Guess I should walk and come back and buy this same home for 40% value! Makes perfect sense! Sick in Colorado

Jeff: (February 17, 2010 6:52pm)

In addition to the profit for the banks as discussed, what happened to the proceeds from the Private Mortgage Insurance (PMI) the lenders required the homeowners to get? Who got that money, or did the insruance company simply deny the claim and pocket the premium, as usual?

Africa's ma: (February 17, 2010 6:06pm)

Wow this gets worse all the time. And, I thought the banks were just stringing the hopeful home owners along. The reduced payment covering the tax & insurance and have "the banks" property cared for by the tenants who keep it up to prove to the bank that they are worthy. Real estate market picks up... mods denied... the banks have well cared for property to sell at the best time for them.

bankhater: (February 17, 2010 5:56pm)

While Mr. REO wants to forget that it is the bank that encouraged the home owner to access the equity in their house, he also ignores the fact that the banks agent valued the houses over the market value. The problem always points back to the crooked banks.

gramavegas: (February 17, 2010 4:54pm)

Anyone, or any entity, who tries to rip people off, while they are at their lowest of low times, while they are at their most vulnerable and in an arena/industry they have little education in, should be shot. I've been a broker for 28 years ~ what's that got to do with right vs wrong? If the bank doesn't want to do loan mods for people, that's their prerogative. But likewise, if the banks don't do things by the book, if they mislead, lie, misrepresent, etc they need to be held accountable.

Over taxed: (February 17, 2010 4:21pm)

Tax payors are the big loser no matter how you look at it.

Mr. REO: (February 17, 2010 4:05pm)

One more thing. The video poll does not have "MY" answer. It's all one sided. I would say "yes, I know many people that were denied loan modifications from One West Bank (and many others) and THEY SHOULD HAVE BEEN DENIED because they probably won't pay it back either way. What a one-sided bunch of BS on here.

Mr. REO: (February 17, 2010 4:00pm)

Myself. Previously a banker for 15 years. Currently. R/E Broker & Appraiser. These guys are both right & wrong. Right in the content. Wrong in trying to make people mad about it. OneWest Bank does have risk, it's not all roses. Once again, I BELIEVE we should be upset with people that used their homes as bank accounts. They took, took, took, equity out in the form of cash. Then they spent like crazy on cars, boats, Harleys, electronics, etc. Now the market went back down. DUH. It typically does. Now you walk away from the debt YOU agreed to pay back. People in this country simply will not take any responsibility for their own actions. Banks are NOT "non-profit" operations. Wake up America. It's not all the banks fault.

weezy: (February 17, 2010 3:57pm)

Socialism had nothing to do with this wake up. This has been going on for years I am not a voter for the one we have in office But lets put the blame where it should really go. The system is broken lets do something about it. The wall street boys and the greedy banks , special interest groups, oil companies, pharmacutical companies and Plain damn greedy investors who support politicians who betray us.Big goverment has never been the answer but neither has been letting the loan shark banks run with out regulations.Let the banks fail the greedy bastards created this. Why do you think that they changed the BK laws before the big bubble burst. It was all a set up and we let it happen.

Vaskar: (February 17, 2010 2:31pm)

Socialism.. you idiot... go read a little about history.. in fact dont bother ... it's obvious your brainwashed and nothing but a sheep... baaaa God bless these guys for making the effort to expose this sick status of our country. It's socialist like you and our president that are causing this problem.. and yes Shelia Blair of the FDIC...

gramaVegas: (February 17, 2010 2:05pm)

If you want socialism, just move to an existing socialist country. Leave us out of it.

Anonymous: (February 17, 2010 1:50pm)

Further arguments for just strait Socialism

Anonymous: (February 17, 2010 1:50pm)

Further arguments for just strait Socialism

GramaVegas: (February 17, 2010 1:09pm)

From what I'm reading on ConsumerAffairs.com page, the FDIC is SUPPOSED to be funded by banks, HOWEVER "If FDIC were to run out of money, Congress would have no choice but to give the agency more funds, or face a possible insurrection on the part of individual bank depositors....." Um, since Congress has no means of creating this money it would have to give, guess where that money would come from????

Aplayeru: (February 17, 2010 1:01pm)

Not sure how you come up with par value vs real value of home(you don't). If home value is down 50% then your numbers are a cloaked illustration. Also the FDIC is fully funded by the banks that are members. I am a banker and not particularly fond of their methods but I would rather the public get accurate information rather than half truths.

Anonymous: (February 17, 2010 12:42pm)

value the quality of the loans in IndyMac's portfolio. Their whole propaganda math equations are ridiculous and based on flawed accounting and more Armageddon propaganda. Bottom line is that future losses from non-performing loans is an unknown. The loan portfolio will be valued as performing on OneWest's balance sheet unless a loan goes into default at which time OneWest will record a loss and yes the loss will be based on what the outstanding note was written for. Think of it this way, if 50% (5.5 Billion) of the 11 Billion in IndyMac held mortgages default and sell at only 60 cents on the dollar, OneWest will lose 2.2 Billion and the FDIC will not cover a penny of it because it did not exceed 2.5 Billion in losses. Like I said, I don't think the FDIC will have to shell out another penny for IndyMac. http://www.fdic.gov/news/news/press/2010/onewest_lossshare.html http://www.fdic.gov/news/news/press/2010/onewest_lossshareb.html

DK the Pontificator: (February 17, 2010 12:40pm)

I'll bet if I went to the Secretary of State's office and dug up the UCC-1 and UCC-3 statements on the property, I could find out whether the chain of title has been broken. I have 150+ attorneys who will agree with me on this. The lender ordering the short sale is not the TRUE CREDITOR! This is what homeowners DO NOT GET! The courts in Florida have already ruled that if a home note and mortgage has been split and securitized, then the servicing lender is NOT the LEGAL LENDER and has no authority to foreclose! PERIOD! If you order a home sold that you don't have the right to sell in the first place, what do you call that? I call it fraud! I don't care about the lien on the property ... I can sue and get past it. This is why there are only a smidgen of attorneys that "get it". Using Rules of Evidence, I can sift through your short sale and disconnect the lender from the home! Send me your homeowner's name and address and I'll prove it! airwave@airwavedave.com

Anonymous: (February 17, 2010 12:36pm)

THIS IS SUCH PROPAGANDA! First the FDIC is funded by all banks, not taxpayers. And if you look at the numbers the FDIC did a could job and the sale of IndyMac was competitively bid. I doubt OneWest will exceed 2.5 Billion from this loan portfolio given not all of IndyMac's loans will end up as non-performing. Plus OneWest is on the hook for the first 20% in loan portfolio losses so there is no incentive for them to lose more. OneWest paid 13.9 Billion to the FDIC for IndyMac's assets which yes is at a discount, no one in their right mind is going to pay full price. BY THE NUMBERS: •IndyMac's entire loan portfolio was 16 Billion of which 11 Billion was mortgages •IndyMac serviced 158 Billion in mortgages but only held the notes on 7% of those (roughly 11 Billion) •IndyMac loan portfolio losses: •OneWest is responsible for the first 20% •The next 10% the FDIC covers 80%, OneWest covers 20% •Any further losses below 70% the FDIC covers 95% All the FDIC did was basically create a backstop. It's the only way they could sell the assets because regulations got so loose in the housing boom that no one could va

Bobarama: (February 17, 2010 12:09pm)

No, going through a short sale is not transferring a property with a defective title to the new owner. The process is that the lender is to accept less than what is owed on the property, cutting their losses in order to avoid a foreclosure, which could have the bank lose even more money (See example). Title is cleared and insured at closing, thus the property does not have a defective title when it is transferred. Yes, the lender is not the holder of the property, but has a lien on the property. A short sale requires that the seller agree to sell the property, asking the bank to accept less than what is owed on the property, sometimes waiving/forgiving a certain amount of debt in order to give clear title to the new owner. Title insurance is issued. The seller, however, can have tax ramifications if the IRS deems the "Forgiven" amount of debt as income - talk to your tax advisor. Only if you fail to work the short sale process properly are you going to be open to liability.

Skippy: (February 17, 2010 11:59am)

What percentage of the FDIC's budget is made up from assessments to member banks? If the bulk of the IndyMac, etc. shenanigans are funded by other banks, then the costs of bad banking decisions are borne by healthier ones. Not a perfect solution, to be sure, but you'd think that the banking industry would be up in arms over this. Or are all trying to work this scam?

DK the Pontificator: (February 17, 2010 11:29am)

Valley Girl! [and any others of you that don't understand the fraud in the factum in the foreclosure crisis now occurring in America]: GO TO http://www.livinglies.wordpress.com and read up on the actual frauds and how they are perpetrated by the "pretender lender". Then insert yourself into the middle of the fraud as a player. If you are involved in the transaction and anything criminal is discovered during the process, you are risking indictment. More than likely however, if the homeowner your trying to short sell understands that the "pretender lender" is just the servicing lender and not the "true creditor", he can file bankruptcy, stop the foreclosure, sue the lender for fraud on the court when the lender comes with unclean hands because the true creditors are the investors who bought the securitized derivatives. You then can dump the entire foreclosure on the bankruptcy court. Read the new FLORIDA RULES on Neil's website!They are cracking down on foreclosure mills left and right!

believer: (February 17, 2010 9:38am)

Financial Ferret: The taxpayer fraud is most likely with HAMP funds from the treasury. The FDIC is still funded by member banks but they asked for a line of credit increase fromt the taxpayer last year from 100BB to 500BB. I can't believe they had the nerve in their response to suggest that they had not asked for money from the Treasury.

financial ferret: (February 17, 2010 9:37am)

Wow! I having some issues with our mortgage company, wondering if we can find out what other mortgage banks are involved in this FRAUD with the American TAX Payers money? Can we get this info through a Freedom of Information ACT?

financial ferret: (February 17, 2010 9:37am)

Wow! I having some issues with our mortgage company, wondering if we can find out what other mortgage banks are involved in this FRAUD with the American TAX Payers money? Can we get this info through a Freedom of Information ACT?

financal ferret: (February 17, 2010 9:36am)

Wow! I having some issues with our mortgage company, wondering if we can find out what other mortgage banks are involved in this FRAUD with the American TAX Payers money? Can we get this info through a Freedom of Information ACT?

Anonymous: (February 17, 2010 9:31am)

Accountant: -I suggest sobering up before grabbing your keyboard next time.

oohwha: (February 17, 2010 9:25am)

"if Americans stopped having to have everything 'right now on credit' we wouldn't be in this mess in the first place" Quoted for truth - and humanity's main financial problem since banking and credit were first established. However, all this debate over the mistakes of the PAST aside... shouldn't we all really be focusing on the plots being concocted RIGHT NOW for the future pillage and plunder of the working class? What's happening right now? What scheme is some uber wealthy con-man with a high IQ planning right now? What scheme will blow up in our faces 5 years from now? What fat cats will we be complaining about THEN? The key to "winning" this war on credit is not focusing on who's to blame now for the past... but rather LEARNING FROM THE PAST to combat and PREDICT what will happen in the next decade. Like it or not, there are more fraudulent schemes on the way - I just wish there were a public forum for thoughtful people to discuss these now and disarm them preemptively! :)

valley girl appraiser: (February 17, 2010 8:41am)

DK Pontificator: I don't understand your response to Boborama...could you please explain how it is fraud for a realtor to present the Loss Mitigation for the lien holder a cash offer. Had realtor who just went through the same situation with Wells. It's been listed for $215k for over 6mos, they got an offer of $195k & WF countered with $220k. They will foreclose in March...and probably not get more than $132k for it. Though it makes no sense for the rest of us, I think it's an accouting/tax write off thing. Let the losses offset the gains so they don't look like the greedy SOBs they are. Anyway.. DK...please explain.

Scarab: (February 17, 2010 8:21am)

Accountant - The missed payments do not add to the face value of the loan, but they do add to the payoff amount which is the amount used to calculate value for sale.

CA Consumer: (February 17, 2010 7:36am)

One west bank and loan mods, OneWest has approximately 112,000 borrowers that are potentially eligible for HAMP. Of these they have extended 48,500 trial modification offers and 30,000 borrowers have accepted trial modifications. The rest either did not accept the offer or have not yet responded. As of the end of January they had reported approximately 9,000 permanent modifications and 19,000 still on trial plans. As you may think One West Bank is not doing anything in the Loan Mod space again 112k borrowers with 9000 permanent. Figure that the video of foreclosures with tbws is right on the money. Good Job Guys

DK the Pontificator: (February 17, 2010 5:51am)

Bobarama ... honest Realtor or not ... are you aware you are selling a property with defective title and that you could get caught in the middle of a quiet title action by the new buyer if he finds out (and he will find out), despite the short sale. Short sales are frauds because the pretender lender (the new term attorneys are using) is not the holder in due course. That makes the whole short sale a fraud. The deficiency judgment can also be attacked and you can get sucked up on the back end as being an accessory to the fraud, which will result in your loss of license! Caveat emptor from a former Realtor!

DK the Pontificator: (February 17, 2010 5:47am)

Hey numbers_wonk! Don't forget that once the collection agency purchases the promissory note, THEY now are faced with the task of proving the note. I have shut down these agencies with cease and desist orders specifically aiming at their lack of legal standing to enforce collection. Remember that when your loan officer said that the mortgage company was going to sell your note after you closed? A collection agency is NOT a servicing lender and if the promissory note was relative to this kind of activity, that's bait & switch and you can use your state's deceptive trade acts to counterattack in court if it goes that far. It's all FDCPA stuff! I have been cleaning up credit for people since 1993 and I get collection accounts off of people's reports all the time ... and besides, if Americans stopped having to have everything "right now on credit" we wouldn't be in this mess in the first place! The credit can be fixed! If the collector sues, counter with improper party! It's unsecured!

Accountant: (February 17, 2010 4:29am)

Who'se using "fuzzy math" here? In the video, you add the amount of "missed" payments to the amount of the original loan. "Missed" payments only fail to reduce the amount of the loan, not increase it's value.

Bobarama: (February 16, 2010 11:15pm)

Loan Modifications are so difficult to come by, and I have been wondering why. No Longer. I am a Realtor who helps some very honest people with their short sales due to the fact they bought at the peak of the market, the downturn in the economy has killed their income, they cannot pay their mortgage and we are trying to salvage as much equity as possible for the banks. The "Loss Mitigation Services" section fo the banks (Bank of A and Countrywide and a few others) seem to not have things set up to get anything done. Example - Had a short sale offer on a property that had a loan of $160,000. We had a cash offer at $149,800 as-is in June 2009. Bank would not even get back to us regarding offer, even though I called daily for 79 straight days in regard to offer. They ended up foreclosing instead of taking $149,800 cash offer. It just sold in January of 2010 as Bank Repo for (Get this) $102,000! Bank walked away from $47,800 because they wouldnt' pick up the phone. Gee, Why?

bobhertzog: (February 16, 2010 10:09pm)

This video was done using the information in my blog titled "Is The FDIC Killing OneWest Indymac Short Sales", and can be seen by going to this link: http://activerain.com/blogsview/1243528/is-the-fdic-killing-indymac-onewest-bank-short-sales- The numbers they are quoting in the video are real, and actually happened in one of my client cases. Since writing the blog, I have helped several others in the same position, by simply reminding OneWest of the profit they stood to make. In all cases, when reminded of this, OneWest capitulated, dropped their requirement for a promissory note, and approved the short sale. If the numbers aren't real, why do they give up so easily in every case?

Konatina: (February 16, 2010 8:25pm)

Mortgage Note Issues Help Debtors Avoid Foreclosure--this guy hasn't made a payment since 2002 because WA MU couldn't produce his original note. read on http://www2.tbo.com/content/2008/feb/23/222033/bz-mortgage-note-issues-help-debtors-avoid-foreclo/

konatina: (February 16, 2010 8:04pm)

Hey ALMOST DRUNK. Good job, but send it to your local newsreporters....link it to a human interest story about someone in your area getting foreclosed on by Indymac or Bank of America...If the small town papers and news start boiling, the big boys won't be far behind...There is so much to investigate. You can go look on your local county recorder's web site and see the "assignments of deeds" right before the "notice of TRUSTEE SALE" is recorded by Onewest. These Promissory Notes were endorsed in BLANK. Those folks need to ask the Onewest to PRODUCE THE NOTE. All Onewest can produce is a copy of the note when escrow sent it to Indymac. It's been shredded by MERS.

The Road Warrior: (February 16, 2010 7:19pm)

Care to see how easy it would be to turn the housing market around and get our economy on track for a real recovery? Visit: http://theroadwarrior-wakeupamerica.blogspot.com/ Hate to consider what's coming down the road if things don't turn around soon.

Want my money back!: (February 16, 2010 7:06pm)

SO this is great that Mr and Mrs Taxpayer helps to pay for Mr and Mrs Dumbo's status!

Garmo: (February 16, 2010 7:04pm)

Disgusting, but.... I doubt these self-righteous mouthy hot dogs were nearly as vocal when the government was "encouraging" banks to make the high risk home loans to otherwise ineligible buyers, or that they have ever been indignant that the tax code subsidizes home buyers at the expense of those who rent. As far as the "poor" foreclosed-upon homeowner, he probably bought thinking he would make out like a bandit on the federal mortgage tax breaks. As far as the housing market "recovering," it was bloated due to the government-induced bubble resulting from the mortgage tax subsidies and sub-prime loan inducements. Take a look the big shots in your local political machine. Ten-to-one most of them are involved in real estate.

dancer: (February 16, 2010 6:57pm)

revolt, revolt revolt it is time. I am so feed up, and I am gong to take it any more!!!!!!!!!!!!!!!!

dancer: (February 16, 2010 6:57pm)

revolt, revolt revolt it is time. I am so feed up, and I am gong to take it any more!!!!!!!!!!!!!!!!

Grant Ellis: (February 16, 2010 6:32pm)

This partially explains why the stock 9f the buying bank always goes up. Note that the FDIC now has the option of "participating" in the upside stock swing AFTER the sale. Some may see this as an advantage to the raxpayer....the problem is that the FDIC stands to gain from the sale of the bank it regulated and ultimately closed....a total conflict of interest.

Grant Ellis: (February 16, 2010 6:31pm)

This partially explains why the stock 9f the buying bank always goes up. Note that the FDIC now has the option of "participating" in the upside stock swing AFTER the sale. Some may see this as an advantage to the raxpayer....the problem is that the FDIC stands to gain from the sale of the bank it regulated and ultimately closed....a total conflict of interest.

Veteran: (February 16, 2010 5:21pm)

Numbers_wonk: points well taken, the Short Sale process as it was designed seems to be for the EXCEPTION, not the rule. in my example their financial status did not change, it was and is what appears to be the trend due to banks not willing to revalue the loan, thus it enforces "questionable" Family Short Sales amoungst the less than arm length person.

numbers_wonk: (February 16, 2010 5:10pm)

Ken the mortgage broker/realtor: (February 16, 2010 4:34pm) Another thing about the 75K promissory note. I was told by B of A that they would immediately sell that note to a collection agency. The collection agency would pay 30 or 40 cents on the dollar and B of A would collect the cash from the collection company. ..... You betcha. I met some former bankers who do this. In fact, they're buying CREDIT CARD accounts for 3-10 cents on the dollar, but then they negotiate a 36 month "credit cleansing" with card holders. You pay them 3% of the outstanding balance first month, at which point the bankers are even, and then every month pay balance which is gravy for the banksters. Next time a credit collection person calls offer them 10% of the face value of the card, they might bite. Note: your credit rating is screwed, but why throw good money after bad?

The Nattering Naybob: (February 16, 2010 4:48pm)

Your viewers need to know about how MERS and INDYMAC screwed a family for almost $1 million in fradulent loans, which the family never took out nor signed for. http://naybob.blogspot.com/2010/02/fdic-indymac-mers-or-is-it-one-west.html

numbers_wonk: (February 16, 2010 4:43pm)

Veteran: (February 16, 2010 3:08pm) People attempting to defraud via Short Sale is nothing new, I saw it 20 years ago when Bush 41 was president during Savings & Loan Crisis. You CAN blow the whistle if it's not an arm's length buyer - hey, it's your (and my) tax money they're stealing! That said, there are a lot of people who lost jobs or had severe reductions in income who have no way to make payments. A legitimate Short Sale is the best choice for all concerned - borrower, lender, buyer and yes, even the neighbors. A Short Sale is MUCH better than a foreclosure as banks literally allow a home to turn into a dump, further reducing property values and loan asset base, plus property taxes that support schools, public safety, etc.

MyMortgageFreedomPlan: (February 16, 2010 4:40pm)

Here is another article about loan modifications - Why won't lenders renegotiate delinguent home loans - http://bit.ly/aOlrkP - It may be of interest here. Fight back, here is a sight that can educate you on the entire process and what you can do about it: http://bit.ly/bNtwMN

Konatina: (February 16, 2010 4:36pm)

What is really strange is that I emailed the FDIC on Friday 2/10 asking them how Onewest Bank can call themselves a "division" of Indymac Mortgage Services......and got emails from 2 FDIC people on SUNDAY morning! (now I live in Kona, but I could swear it wasn't already Monday on the east coast at 8 AM in Kona on Sunday!) One email was their "press release" the other was stating that Indymac and Onewest are not the same from a rod.ennico@mmcgrp.com. I had asked him if Title 12, Section 2605 applied when Onewest bought Indymac loans (law stating that we must be notified properly of transfer of servicing) And these guys gettting paid overtime on Sunday at the FDIC? I think the FDIC needs more questions from the public, don't you?

Ken the mortgage broker/realtor: (February 16, 2010 4:34pm)

Another thing about the 75K promissory note. I was told by B of A that they would immediately sell that note to a collection agency. The collection agency would pay 30 or 40 cents on the dollar and B of A would collect the cash from the collection company. I will say that the 75K figure is not what B of A was charging. They gave my sellers an option to bring in 5% of the difference in cash OR 10% on the note. My sellers said screw it, we wont short sell...we foreclose. Why pay cash or a note?

konatina: (February 16, 2010 3:22pm)

Yes, Demoncrats AND Repiglicans are involved in this Ponzi game most likely schemed by the Bilderberg group. It's the Rothschild and Rockefeller influence that is behind all the money schemes and wars of the world. Anyone ever hear of the Rumor that Rothschild leaked in order to tweak his fortune? Google it. Dirty bastards all of them. Many people fal prey to greed and corruption-_judges being bought off by the lenders, attorneys representing borrowers bought off by the lenders. There may be no way to overcome this Money Loving Hyena created a long time ago--but knowledge is power. Keep talking, googling, reading, investigating on your own. Thanks to you TBWS guys! Thank God we live in a land where we can freely talk about this.

MJ: (February 16, 2010 3:10pm)

The $75,000 promissory note is going to be put on the inital borrower who got approval from bank to do a short sale. In this example the home owner had a loan of $478,000 but sold the home for $241,000. So the bank says we will allow you to sell your home for $237,000 less than you owe, but you have to pay us back $75,000 in a loan payment plan. Given all of the circumstances, it is horrifically unethical.

Veteran: (February 16, 2010 3:08pm)

i have this happening around me now, where the owners are letting go of their homes, and then having a friend or relative come in and offer to buy on a short sale. what a scam, then they BK to avoid the 1099. amazing obamaconomics

Bob The Realtor: (February 16, 2010 2:44pm)

It is just a basic note, just as if the seller of the home were to take out a 75k loan. The original owner, (seller) has lost his home and for the next several years, he agrees to pay the bank, over and above their already large profits, will get monthly payments from him until the 75k is paid in full

Anonymous: (February 16, 2010 2:30pm)

Can someone explain the 75k promissory note? Who is paying that, the original borrower, or the short-sale buyer? What's the story behind what that money is supposed to compensate for?

flying mane mad: (February 16, 2010 1:37pm)

It's not just FDIC and OneWest Bank ripping off the consumer - check out www.re-insider.com's latest post that shows that Freddie Mac is off shoring important jobs via its vendor First American! Wow! Shazzam Obama? Who looking here?

numbers_wonk: (February 16, 2010 1:29pm)

The story is getting more interesting, but I think there are still many more chapters to reveal. The FDIC's press release emphasizes, "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." The purchase was $13.9 billion. 7% of that is about $1 B. A loss of $2.5 B would result in claw back of $1b, netting a negative $1.5 B. A savvy deal maker is going to ask - "How is the value of owned assets calculated?" "Is it mark-to-market or face value?" "If it is mark-to-market, can OneWest take early losses and then mark down the value of the balance of the portfolio, even though those assets are not sold? And then OneWest can assert the $2.5 B in 'losses', claw back $1B, and hold the remaining assets for maturity at a later date with higher returns?" All of this is

numbers_wonk: (February 16, 2010 1:29pm)

The story is getting more interesting, but I think there are still many more chapters to reveal. The FDIC's press release emphasizes, "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." The purchase was $13.9 billion. 7% of that is about $1 B. A loss of $2.5 B would result in claw back of $1b, netting a negative $1.5 B. A savvy deal maker is going to ask - "How is the value of owned assets calculated?" "Is it mark-to-market or face value?" "If it is mark-to-market, can OneWest take early losses and then mark down the value of the balance of the portfolio, even though those assets are not sold? And then OneWest can assert the $2.5 B in 'losses', claw back $1B, and hold the remaining assets for maturity at a later date with higher returns?" All of this is

MM: (February 16, 2010 12:49pm)

I tried finding a long term solution through loan mods, considered bankruptcy, found out I was past the 3 year recission period that "Family Crusader" is referring to -- what was left was a lot of trust that something will show up to help me KEEP my home.... and it did. Please contact me at HearthforYou@gmail.com so I can share the info with you on how you can legally keep your home -- beyond all the ideas the banks have us believe are our only options.

Lori O: (February 16, 2010 12:41pm)

This scenario sounds familiar. We have an ACD note on a convenience store in MO. The bank forced us to employ their contractor, and he exceeded his budget by over $1 million. The bank reneged on the end loan and filed foreclosure. We pledged additional collateral and tried to work through matters with the bank to no avail. We filed suit and subsequently Chapter 11. The bank failed in August 2008. We have worked with the FDIC for 18 months to settle our loan and actions against the bank. The FDIC has continually backed out on every agreement they have made, citing they never received final approval in Washington. The FDIC sold our loan to Colony Capital Acquisitions, LLC on January 07. The math is fuzzy, but it's very clear that Colony paid SUBSTANTIALLY less than we offered to pay for our loan. The FDIC has a responsibility to bank depositors to maximize recovery of their assets. They need to be held accountable for their blatant disregard of the same. omalleyll@yahoo.com

Family Crusader: (February 16, 2010 12:18pm)

We are missing the MOST POWERFULL TOOL OF ALL to fight the banks. If you have done a refinance in the past THREE YEARS than you have the legal right to rescind the mortgage. No smoke and mirrors and no produce the note. Just the laws in black and white. The following are statues and laws so don't take my word for it. Consumer’s right to rescind. (1) In a credit transaction in which a security interest is or will be retained or acquired in a consumer’s principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction. The consumer may exercise the right to rescind until midnight of the third business day following consummation, delivery of the notice required by paragraph (b) of this section, or delivery of all material disclosures. If the required notice or material disclosures are not delivered the right to rescind shall expire 3 YEARS after consummation. Want to know more contact me.

Family Crusader: (February 16, 2010 12:17pm)

We are missing the MOST POWERFULL TOOL OF ALL to fight the banks. If you have done a refinance in the past THREE YEARS than you have the legal right to rescind the mortgage. No smoke and mirrors and no produce the note. Just the laws in black and white. The following are statues and laws so don't take my word for it. Consumer’s right to rescind. (1) In a credit transaction in which a security interest is or will be retained or acquired in a consumer’s principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction. The consumer may exercise the right to rescind until midnight of the third business day following consummation, delivery of the notice required by paragraph (b) of this section, or delivery of all material disclosures. If the required notice or material disclosures are not delivered the right to rescind shall expire 3 YEARS after consummation. Want to know more contact me.

Family Crusader: (February 16, 2010 12:17pm)

We are missing the MOST POWERFULL TOOL OF ALL to fight the banks. If you have done a refinance in the past THREE YEARS than you have the legal right to rescind the mortgage. No smoke and mirrors and no produce the note. Just the laws in black and white. The following are statues and laws so don't take my word for it. Consumer’s right to rescind. (1) In a credit transaction in which a security interest is or will be retained or acquired in a consumer’s principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction. The consumer may exercise the right to rescind until midnight of the third business day following consummation, delivery of the notice required by paragraph (b) of this section, or delivery of all material disclosures. If the required notice or material disclosures are not delivered the right to rescind shall expire 3 YEARS after consummation. Want to know more contact me.

deprogurself: (February 16, 2010 11:11am)

George Soros (One West investor), March 2009: "I’m having a very good crisis," says Soros as hedge fund managers make billions off recession George Soros said the current economic crisis has been "stimulating" and the culmination of his life’s work.

deprogurself: (February 16, 2010 11:02am)

We were holding large savings in Indy Mac when it collapsed and was seized by FDIC. When I found out One West was taking it over, and globalist George Soros was a primary investor, I pulled everthing out and sent a note to local branches with the article attached where Soros stated something to the tune of -- it's been a great recession for me! He had my blood boiling then and none of this is shocking to me, not even the government's role. After all, where do you think Obama got his funding? Soros, Goldman Sachs, etc. Nobody should be surprised by now, but outraged for sure.

GB: (February 16, 2010 10:49am)

I've personally read the Loss Sharing Agreement that outlines the terms for the Indymac acquisition (by Soros and other private equity groups) and this video is accurate. In my view this deal represents an outright theft from the taxpayers and and accomplishes the opposite of what Obama and other bureaucrats of both parties have promised us they would do with our money via their outrageous "stimulus" programs. If the popular press was more intelligent this would be front page news until the deal was re-cut and a few politicians lost their jobs.

Temeculalaw: (February 16, 2010 10:48am)

Not Pleased - you can file a bankruptcy or a lawsuit for an injunction based on causes of action such as violations of the truth in lending act, fraud, violations of business and professions code sections for unfair competition (CA) to name a few.

rudy: (February 16, 2010 10:30am)

sounds like it's time to buy one west stock! go capitalizm. sorry unconnected taxpayers.

La Lady: (February 16, 2010 9:59am)

From the FDIC Q&A-Only 7% of loans OneWest services are owned by OneWest and covered under loss share (agreement). Other institutions (investors) own the remaining 93% of loans OneWest services. These loans are required to be serviced in accordance with the owner institutions' agreements with OneWest. I used to work in the servicing of Mortgaged Backed Securities. I left the industry because of issues like the ones listed on this web site. I just want to point out that 93% of the loans are governed by "Servicing Agreements" that direct how to handle defaulted loans. Loan Modifications and other options are all allowed by these agreements. I don't understand why OneWest will not try to avoid losses using all the tools available to them, but this is the crux of why I left the industry, it is all about how much money can be made by the servicer and not doing what is right for the homeowner and the investor.

The dunbest Barney used to be a Purple Dinosour: (February 16, 2010 9:58am)

The posts by "any bank official can do te math" and "for the rest of the story" are the most intelligent posts on this blog. We have always had people who wanted bigger homes, mortgage brokers who wanted to orig more loans, banks making loans, investment banking houses who are in the business of packaging investment products, rating agencies that wanted to rate more,investors who want to buy mortgaged based product, greedy people that pick up the pieces with higher IQ's than the FDIC across the table. WHat is different? FH/FN which had been the aorta of cleaqn mtgs for 20 years getting into the subprime business. When every loan package that the biggest person involved has 12% subprime in it, every market participant must follow and it infects everyone. Thank you Barney Frank for leading the band and allowing prople that could not take financial risk the opportunity to participate in 100% LTV and now 125% LTV borrowings.

diceman: (February 16, 2010 9:56am)

SOROS, SOROS, SOROS, SOROS, SOROS

diceman: (February 16, 2010 9:56am)

SOROS, SOROS, SOROS, SOROS, SOROS

JacksonHoleSkeptic: (February 16, 2010 9:42am)

One West Bank assets: $24 billion ($32 billion at time of purchase) 7% of Assets time of purchase (amount One West eligible for compensation on losses): $2.24 billion Amount have to lose to get any reimbursement let alone full value: $2.5 billion Motivation to force people out of homes: dubious Conspiracy? Maybe somewhere but this doesn't look like it.

bobhertzog: (February 16, 2010 9:35am)

This video was done using the information in my blog titled "Is The FDIC Killing OneWest Indymac Short Sales", and can be seen by going to this link: http://activerain.com/blogsview/1243528/is-the-fdic-killing-indymac-onewest-bank-short-sales- The numbers they are quoting in the video are real, and actually happened in one of my client cases. Since writing the blog, I have helped several others in the same position, by simply reminding OneWest of the profit they stood to make. In all cases, when reminded of this, OneWest capitulated, dropped their requirement for a promissory note, and approved the short sale. If the numbers aren't real, why do they give up so easily in every case?

DK the Pontificator: (February 16, 2010 9:22am)

Jambo99 and anyone else having problems with lenders ... you can go to www.livinglies.wordpress.com and blog your info out there and myself and other attorneys will contact you if you post your info. I watch that blog more than any other, so if you write to me through there, I might be able to point you in the right direction ... I am not an attorney, just a paralegal.

Negotiator: (February 16, 2010 9:14am)

With Indymac, if you are under 21 days of the sale date, all arrears are required to stop the sale. I have stopped sales as close as 10 minutes before scheduled time, but with Indymac, this isn't going to happen. Although they are HAMP participants, they do not follow the guidelies. You can call Freddie Mac who is the overseer of compliance or try emailing terry.laughlin@imb.com (ceo). According to the new HAMP directive, all banks participating in HAMP are to use due diligence in programs outside of foreclosure. You can also try blair.abernathy@imb.com, but I have only received responses from Terry.

cubita: (February 16, 2010 9:07am)

this is exaclty what is happening to me right now with One West or Indymac. they send me a pre trial modification for 1579.00 much more than my original mortgage and my house is 140 in value and i owe 216

Betco: (February 16, 2010 9:02am)

All of this is due to our being complacent and allowing the corruption and arrogance in Washington to multiply and feed upon itself over the last quarter century. Our only salvation is to clean out Washington from the bottom up by starting with the House of Represenatives, replacing all 435 of them with common sense thinking citizens who's goal it is to not become career politicians, but to represent their districts in accordance with what their constituency has entrusted them to do. Only one organization is working towards that goal. It is non-partisan and from Tea Party to Liberal, is the only organization with a "workable" plan already in place to make it happen. Go to GOOOH.COM (pronounced GO). Members are growing rapidly with meetings taking place nationwide on a weekly basis. Be sure to click on the Media tab, for a list of interviews with founder Tim Cox. Only America's citizens can save her from these tyrants now, it's our duty, and maybe our last chance.

AndyJackson: (February 16, 2010 8:42am)

You can see lots of information on fighting the Banks here: http://www.scribd.com/AndyJackson Remember if you don't object, you agree. Watch this video: http://video.google.com/videoplay?docid=6989869784339234995#

NOT PLEASED: (February 16, 2010 8:25am)

Frusterated Broker in Lake Arrowhead. Does anyone know how to last minute stop a sale? Indymac has first, and there is also a second. I've been trying to negotiate with Indymac. We had an all cash offer submitted 2/3/10 they asked for lots of updating on the part of the seller/borrower, lots of information on the new buyer. We jumped through all the hoops. Then they said, no its to late. Can anything be done at this point? They suggested the Seller/Borrower bring the loan current (20k), then they might consider the short sale. No gaurentees. Doesn't sound smart to me.

Chainsaw: (February 16, 2010 8:03am)

Is anyone surprised by this? The scumbags in Washington D.C. are only out for themselves and their "buddies" and it is time the American voter remove them all from office. Tiem to vote ALL incumbent politicians out of office in the next election cycles, both Federal, State and local politicians, until WE the PEOPLE take back our Government!

jambo99: (February 16, 2010 7:26am)

DK the Pontificator: you seem very knowledgeable, I have a similar problem which I think is related to a similar travesty. I am a member in a LLC that was attempting to renegotiate a loan with Wachovia Bank which was acquired by Wells Fargo with Tarp funds. My partner was in weekly negotiations, for several months the dialog was ongoing about suspending payments until a acceptable solution could be arranged. Little did I know until I received a demand notice for 1.5M that anything was wrong. Now, the bankers will not return phone calls, emails, they simply do not respond. The demand letter came from their atty who told my partner "don't worry this is only a formality" I do not want this short sold or foreclosed on and could pay however, to do so would seriously impact me. Any suggestions?

Broker from Tacoma - : (February 16, 2010 6:55am)

Wow.., and ITS All true! I am a Real Estate Broker in Tacoma WA and with your permission I will add a link to this video and story to a couple of my websites. I think that our Government needs to clean this up NOW!

Tiredofem: (February 16, 2010 6:51am)

Most loan rates are illegal as it pertains to state usury laws which can be used to re-negotiate your interest rate....(Illegal in the sense of federal RICO laws referencing state usury laws as it's definition of an illegal loan.

DK the Pontificator: (February 16, 2010 6:34am)

OneWest Bank is NOT the original creditor. For $300 you can file a civil action in U.S. District Court under the Fair Debt Collection Practices Act, Section 807, for Misrepresentation of a Debt. Then, when OneWest's attorneys respond, you object to everything they say, because they do not have ORIGINAL paperwork or first-hand knowledge of the loan! They are like a collection agency that has no legal proof because the loan was securitized and it's the original investors that bought the securitized loan you need to be talking to, not OneWest. You have to use discovery to get to them, if you ever do. In the meantime, you get to stay in your house, unless you can motion for quiet title and get the judge to expunge the lien entirely. Then you live mortgage free!

oneofonewest'squickies: (February 16, 2010 4:30am)

We were told by IndyMac that a modification was being processed and that they would have a decision by 4/16/09 while at the same time they scheduled the trustees sale for 3/30/09. They also told our neighbor they were modifying their loan and completed their foreclosure before making a final decision. Neighbor owed $351K and OneWest sold the home in two weeks for $129K. They could have restructured the loan and been paid in full over a longer period but it makes sense with a promise of quicker money coming from the FDIC. It is disturbing that President Obama has said he wants to help families stay in their homes but is rewarding banks like OneWest for foreclosing and now today's Washington Post is reporting that the US is looking for overseas capital to back up the housing market, Lord help us.

Skitz and Bulldog: (February 16, 2010 2:41am)

I know of someone who didn't want to allow a foreclosure wanted to do the RIGHT THING and honor his committment. He lost his job and is trying to do a short sale. Indymac has not stopped calling. They call every day to harrass this person and now knowing what is going on, I know why. Do you think that we will be doing some good by complaining??? Will the people in the Big House be re-elected?

triedtomodifyandscrewed: (February 15, 2010 11:53pm)

I too was treated like crap by Indy Mac and One West....They kept asking for documentation over and over and finally sent me a letter stating that my note holder does not participate in the HAMP program and therefore does not modify...So they foreclosed. Screw them. Hope they love the upside down house that will remain empty cause so many of them are empty in my neighborhood.

Carlos Sutter: (February 15, 2010 11:00pm)

Again, the more One West "looses" when they sell, the bigger their Compensation. So, their incentive is to Foreclose, not to Short Sale, because they would loose more this way. And since foreclosures encourages more foreclosures, there is no end in sight to our recession.

DavidE: (February 15, 2010 8:19pm)

To make sense of all of this you have to start with the premise that this is all to assure that loses for the Us govt is so great that the country is put into bankruptcy. This in order to facilitate the North American Union in the long haul. Though many may ridicule this you will just I already know but those who are a little confused do not worry it will all be explained to you soon enough

Tk: (February 15, 2010 7:14pm)

The FDIC says they did not ask for money? Then how did they get a line bump to 500BB? Does this sort of thing magically happen? Do congressmen wake up and just automatically vote on these things? Give me a break FDIC!!!

goldwingguy: (February 15, 2010 7:04pm)

Fematt- We got that same run around.

goldwingguy: (February 15, 2010 7:02pm)

We tried for 1yr to get a mod from Indymac. We sent them EVERYTHING they wanted. Everytime we called to try and find the status of our application, we were told it has to go to a different department or that they never got it. Well Fedex tracking doesnt lie. after a year we were told we didnt qualify for a mod. We put the house up for short sale and quit making pmnts. after 3 months of being delinquent, they offered us a mod. but said they "didn't have the details for us but would after signing a contract and making 3 months pmnts. Ya right, why would i agree to something i don't know anything about? We sold the house and close the end of this week.

FEMATT: (February 15, 2010 6:51pm)

This explains why we were just denied our loan modification, though we complied with all the terms and made the payments on time. One West/IndyMac argues (or at least the "operators" at their call centers argue) that they did not receive all of our information (which is a not correct- and we have written proof). They claim that we were denied the modification (because supposedly, they didn't receive all of our info)- and that once denied, we were no longer eligible for the govenrment program. Any suggestions? I'll be happy to explain in more detail, its pretty sad what they are doing...Does anyone have suggestions to get past the "pawns" and get to a decision maker, or someone who can think independently and not just read call notes?

believer: (February 15, 2010 6:49pm)

Terrys: If that were true why didn't the FDIC comment accordingly. They commented on several other nitpicky things while ignoring the math altogether. All the press on this shows the loans were bought for 58-70% - a HUGE discount.

bh: (February 15, 2010 6:13pm)

John, I have often asked this question... The problem is, while there are loss share agreements in place for both of these deals, there is mysteriously no documents on the FDIC website for the general public to see. Despite numerous efforts, I just can't find them. Makes you wonder, doesn't it?

John: (February 15, 2010 5:56pm)

Do you have similar math breakdown that you have for Indymac of the deals that exist with the loans purchased made by Wells Fargo Bank or Bank of America from Countrywide, WaMu...etc?????

John: (February 15, 2010 5:56pm)

Do you have similar math breakdown that you have for Indymac of the deals that exist with the loans purchased made by Wells Fargo Bank or Bank of America from Countrywide, WaMu...etc?????

floatingeagle: (February 15, 2010 5:36pm)

You all should really read this link http://www.fdic.gov/bank/individual/failed/IndyMac.html it explains the entire deal.

RuthieB: (February 15, 2010 5:29pm)

GALPAL - you should take a look at the actual FDIC Share Loss Agreement w OneWest, instead of taking the FDIC statement as fact...

InteractiveLawCenter.com: (February 15, 2010 4:00pm)

My law article was just published on JD Supra and appears at: http://www.jdsupra.com/post/documentViewer.aspx?fid=aba6bcf2-b696-451b-b4ea-5652b088bc8e Mostly this deals with extraction of the contract principles that might matter and assessment of the business proposition. There is some discussion of comments that appeared on this blog. The sum and substance of what the video says, particularly as supplemented in response to the FDIC, is true and correct. My brief conclusion, from a legal standpoint, is that people affected by mishandling of their loan mods should consider other legal options.

Ryan N.- Miami: (February 15, 2010 3:56pm)

...and in regards to fixing our mortgage crisis i think this agreement does help because it provides some kind of safety net at the bottom of the pit for banks to accept short sales instead of keeping an iron fist on all loans and allowing them to go into foreclosure. one benefit of shortselling is that it does not kill your credit as bad as a foreclosures do. a friend of mine just shortsold their home in November for $78k when the original loan was for $217k, and when they pulled his credit last weekend it was surprisingly at 620. also keep in mind the value of surrounding properties are usually calculated by the cost of what similar homes in the area are selling for. and since most of the time shortsales sell for more than foreclosures do, it helps existing homeowners maintain a little more value for their own place.

Ryan N.- Miami: (February 15, 2010 3:54pm)

according to the FDIC "OneWest must first take more than $2.5 billion in losses before it can make a loss-share claim on owned assets"- and nowhere did it say the bank would be paid retroactively for all prior losses once they reach this mark. so why would the bank purposely do shortsales when there is no guarantee they will make it all back, nevertheless gain ADDITIONAL profit? if we use the example in the video of the bank profiting $100k from each deal, this means they would have to process 50,000 shortsales before they begin seeing any profit (25,000 to incur the $2.5B loss, and another 25,000 to regain the profit and break even). and keep in mind this ONLY applies to the mortgages they specifically acquired from Indymack, not their own. i understand the concern from the guys making this video, but i honestly think they are misinterpreting this deal. otherwise please show me figures proving this bank has that many Indymack shortsales already lined up to prove this conspiracy theory

Robll: (February 15, 2010 3:51pm)

You may be interested in taking a look at Cenlar also. (google "Cenlar Thieves") This agency was appointed by FHA to take over the payment processes of Taylor, Been & Whitaker. (My own home loan) The money is gone, they have no skin in the game, no one will talk to anyone. They just don't care. Horrific story after story. We couldn't get a loan modification if we were made of gold. And we want to let these folks manage healthcare, really?

GalPal: (February 15, 2010 3:08pm)

Did anyone bother to read the FDIC response?? Things are never as 'simple' as video-makers or sound-byters want you to think. Also, you can thank deregulation of the financial industry for most of this mess...

valley girl appraiser: (February 15, 2010 2:56pm)

Hey ABBS...why not actually going to some of the links provided and look it up, instead of making snarky comments? most of us HAVE forwarded this to our congressman... no one is waiting...except maybe YOU.

abbs: (February 15, 2010 2:32pm)

are you saying that the bank assumes absolutely no risk in taking on all these loans, or is it at all possible, that as good as your story is, it may have left out a few salient details? and, I'm not quite sure what your point is. That we are all screwed, yes. Of course. That's always the story. But, while you say you haven't heard anything about your math, and you're waiting for someone with more resources than you to bring it to someones attention...? Why don't you take it to your congressman or senator.Thats free. Your video thing surely isn't. I'm sure they'd like to hear from you. Instead of making smarmy, yet highly produced videos, why not actually take it to something else we all payfor... our government. Or, sorry, is it that because of the present administration they wouldn't be interested in hearing anything like that.

Myra: (February 15, 2010 2:22pm)

This is great work on your part. But why did you fail to mention that Obama's campaign was partially funded by George Soros? Aside from his connection with One West Bank, he's the billionaire and international socialist who also wrote a book calling for an international government. Hmmmmmmm.

Don B: (February 15, 2010 2:13pm)

I have worked in the Modification industry for the last 3 years. This story only highlights one bank. This same senario is repeated with every bank that has gone under and another bank buys the assets. The banks/people buying the banks that failed are buying these BK banks for a fraction of there actual worth. The FDIC then covers a large portion of the loses from the bad mortgages the new owners just got through the purchase of the bank. Take what the video perfectly shows and anyone should see what is really happening within the banking industry. I would furter bet that the people who lost the original banks are now involved with buying new banks. I dont have the resources to verify that claim, but I'm sure someone out there does.

Anonymous: (February 15, 2010 1:42pm)

My house was purchased for 339k. Current market value of my home is 150k. After my 2nd (BofA home loans) rejected a short sale offer, I was offered a modification from my 1st (Indymac). What they fail to tell you until after you do it is that your modification will be approved after you make 3 consecutive payments of the modified amount. So, all this waiting they make you do is only to see how many people will make payments while they wait. I have now received a letter signed by the vice-president of Indymac stating that my modification is permanent. I am also filing bankruptcy to get rid of my 2nd since my house is so far undervalued.

MaryT: (February 15, 2010 1:37pm)

J.T.: The government is itself to blame--its policies led directly to underwriting standards being thrown out the door--with banks then bailed out by us taxpayers for going along with this bad public policy. (See "It’s the Flexible Lending Standards, Stupid:" http://tinyurl.com/ycnm3pf) As this video shows, the government is only continuing to reward banks' acting against the interests of us taxpayers. Get government bailouts out of the picture and banks will have to return to making money by serving--working with--its customers, not by making bad bets paid for with our money.

Steve: (February 15, 2010 1:14pm)

While I did not read every post, those I did make no mention of the impact of these events on our credit scores. AND IF YOU THINK THE FINANCIAL SYSTEM DID NOT HELP WRITE THE RULES FOR GENERATING YOUR CREDITS SCORE I have some land I want to sell you. The goal seems to be to see how long we can be kept in debt during our lifetime.

J.T.: (February 15, 2010 12:43pm)

I went through the same process twice trying for a remod of my mortgage. Once before the Obama plan and once after. I was involved with both CCO Mortgage and Citi bank. Neither of these tried to help me at all and I've since lost my house to forclosure and filed for bankrupcy. I actually had one of the ladies at CCO tell me they'd rather forclose on my house than work with me so I could keep it. The government should find the ones to blame for all of this and hang them in a public display as a warning to the things that we will no longer tolerate.

MyMortgageFreedomPlan: (February 15, 2010 12:33pm)

It is a crying shame what the bank can do to us. I just posted an update to my facebook page about B of A foreclosing on the wrong home. The home owners owned it free and clear (http://bit.ly/cuUBFB). A friend of mine was telling me about his buddy that was making all the payments on his new "loan modification" when he had when some one knocked on his door and told him he bought this house at auction and to get out. The bank foreclosed on it anyway! For those that may be in need of direction, try this mortgage education site (http://bit.ly/bNtwMN) perhaps you learn how to put the breaks on the bank. Doesn't hurt to get educated a bit.

MadInPVBFL: (February 15, 2010 12:27pm)

Garrison..I am in the same sitch as you were...they have added all these fees which make it impossible to pay back! This just came out today on the Florida Realtor site...Looks like there may be some help on the way for Florida residents when the bank can't produce the note! Read here: http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=232914

RR: (February 15, 2010 12:26pm)

The part that you quickly went over is that in most state those who are forced to short sell or get foreclosed still owe the difference between the loan value and what the bank gets from the lost house. The banks are collecting and/or keeping that as leverage to make sure that those folks with the debt to the bank can't buy a different house. All the information in the video and what I stated is correct and with the blessing of the Obama administration. Soros mentioned is also a big time Obama contributor.

RR: (February 15, 2010 12:26pm)

The part that you quickly went over is that in most state those who are forced to short sell or get foreclosed still owe the difference between the loan value and what the bank gets from the lost house. The banks are collecting and/or keeping that as leverage to make sure that those folks with the debt to the bank can't buy a different house. All the information in the video and what I stated is correct and with the blessing of the Obama administration. Soros mentioned is also a big time Obama contributor.

Look a little closer: (February 15, 2010 12:15pm)

http://www.fdic.gov/news/news/press/2010/onewest_lossshare.html 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).

Yes it's all my fault: (February 15, 2010 11:36am)

Here's the agreement from the FDIC's website: http://www.fdic.gov/about/freedom/IndyMacSharedLossAgrmt.pdf I can't find any reference to the claim that the FDIC response made: "One West must first lose $2.5B"..... hmmm

Garrison: (February 15, 2010 11:33am)

I lost my job in Jan of 2009 and our loan was with One West. Prior to this we had never been late on our mortgage for 7 years. We fell behind on our mortgage that was $5200 a month on a $989,000 loan. I was lucky enough to get a new job but because we were in discussion with one west to modify our loan and the house was $300,000 upside down we continued not to make payments. Six months later one west told us the house was going to auction and they refused any type of modification. We asked to short sell and they refused. We then offered to pay them back the $5200 times six months we were behind ( $31,200). They said we also owed foreclosure fees, and attorney fees from the foreclosure action. So they wanted us to pay them $62,000 when we owed $31,000. Then they told us becuase we fell behind our taxes would be impound and our payment was going up to $7200 mo. They forced us out so they could foreclose! The house sold at auction for 700K

DK the Pontificator: (February 15, 2010 11:17am)

Howdy all! Despite the fact I'm living mortgage free at the moment, I'm a paralegal that is helping homeowners who feel they are victims of predatory lending foreclose on their lenders! What a thought? Foreclose on your lender BEFORE they foreclose on you? OneWest Bank holders have a real advantage because virtually ALL of their loans were securitized and turned into derivatives and sold to outside investors, thus disrupting the chain of title and creating fatal flaws in your home's title! Think about it! If the loan was sold and securitized, the original lender no longer owns your note! This is where the fraud starts! There are at least 6 ways you can sue the lender as a Plaintiff and make them actually PROVE IN COURT that they own your loan! When they can't, you ask the Court to quiet the title to your home, thus extinguishing the lien the mortgage company has on your home! For more info, go to http://www.livinglies.wordpress.com!

Mike: (February 15, 2010 11:11am)

the tripple topper here is for poeple that have Mortgage Insurance on thier Indy Mac loan's. What are they paying for ? I called Republic Mtg Ins, on the loan I had at 90% and asked them what my MTG insurance was now for...they said that even though I'm paying for it they can't talk about it.

Grizz: (February 15, 2010 11:03am)

Yall’s concern and effort is applauded. If all working Americans (not government employees) actually did something about what to me is an inevitable end of this once great nation, then maby it could still be salvaged. But, I do not see the scales of balance being tilted back to ethics, work based morals, nor production based ideals. The gooberment has now fixed/rigged the scales of power to suite the banks and select other elitist industries and of course certain individuals. Personally, I fear revolution and or civil chaos. After some things are broken, they can not be fixed. If unfixable, one must procure a new one and trash the broken one or do without. I propose resurrecting the original constitution and the constitutional amendments up to 1860.

mal: (February 15, 2010 10:54am)

If you think all that is bad, wait until the banks totally take over...When the new licensing requierments come due this summer and half the mortgage brokers with bad credit (due to the economy)won't be able to get their license=more power to the banks=total monopoly. They already momopolise everything now. The new appraisal mechanism allows them to control that process. the new HVCC is a sham and before long the banks and brokerage houses that brought down the world ecomnomy will control EVERTYTHING with no new regualtions since the crash of the economy! Bank Lobbies have infiltrated Washington and HUD! UNtil someone like 60 minutes does something no one will care, until it is too late...

Carl: (February 15, 2010 10:53am)

I'm a very experience real estate broker who was denied a loan mod on my Indymac loan. Had they granted the mod, the tenant's rent would have covered the mortgage. I thought they were simply idiots. Now I know they are criminal conspirators bilking the American Tax Payer.

Carl: (February 15, 2010 10:50am)

to Big Adam --- If you're aware that Loss Mitigation Departments are being operated as you describe the one you work for,...and you KNOW that this is how it's done, I have questions for you: 1) Are you doing anything to try and change it so that you're really helping the people that need help? 2) If your answer to #1 is 'no', then how in the hell do you sleep at night?

Geoff: (February 15, 2010 10:38am)

I've been trying to get a loan modification since December 2008.I lost my job in 9/08, which reduced family income by 65%. We've repeatedly been turned down by a host of lenders with regard to a straight refinance. Last week I was told by our lender that we don't qualify for the HAMP program because our debt-to-income ratio is too high. Well, duh! We've lost 65% of our income! And HAMP is the very program that is supposedly on offer to help people who lost their jobs. Oh....I was also told by our lender that should they offer us a modified loan, the first four payments would be reported as delinquent to all credit agencies, EVEN THOUGH they offered the lower payments, EVEN THOUGH they sign the loan papers (which in effect is a contract), and EVEN IF we make the lower payments in full and on time! I'm not sure if this is legal, but it sure seems to be in the realm of a character defamation. To say that I am pissed about all this is an understatement!

At a loss for words: (February 15, 2010 10:36am)

I got behind on our Mortgage payments due to a loss of job. Notified my Morgage Co. they proceeded to put my house on a Forclosure status. Although the house was NOT sold and we are STILL living in it.It took from May 2009 until December of 2009 to finally get a loan modification approved.During this time they sent back my mortgage payments because it was not enough to cover the past amounts due. Also during this time I called them every week, sent doodooloads of paperwork that they lost or gosh it did't get faxed properly. First they said we didn't qualify for the Obama Plan because we were already 31-38% of our ADJUSTED gross income in our current payments. Finally after EIGHT months we were approved got the new amt. and it was MORE than our original mort. pmt. Desperate to get this taken care of we sent the first payment in of the new plan, and less than 2weeks later we were informed they had sold our mortgage to Bank of America. Haven't heard from them yet!

bruised4life: (February 15, 2010 10:30am)

Big Adam- I believe you completely! I was told in July that if they didn't receive 2 years of tax records, 1 month worth of pay stubs, 3 months bank statements AND a hardship letter within 48 hours of my phone call/application, that I would be disqualified!! I was assured untol number of times that it was only a matter of getting through the paperwork and that NOT qualifying was NOT an option! I escallated to a supervisor twice, and the last guy INSISTED that I ABSOLUTELY would get a modification, and that he would call me within 5 days with a resolution to my escalation. THREE HOURS LATER I got a call from a drone telling me I was not approved and my case was closed!!!

AvgJoe: (February 15, 2010 10:29am)

You finger pointing idiots, this is not a Dem or Rep issue, it is a GREED issue pure and simple. This kind of information is what people ignore and then it continues. We have to let our leaders know that enough is enough! Stop doing what is best for your party and yourself. Do what is best for the people you represent. Unfortunately, we need a major overhaul in our government, because 1 or 2 good politicians will get quickly squashed by the rest.

wordsman: (February 15, 2010 10:26am)

The government HAS TO sell to the banks. The banks get to set the terms. Unless the government takes over the banks, that's the way this has to play out. Consider the marketplace of free speech: how strongly were loans sold? Who and how loud was the caution? How clear, indeed, were the contracts and the consequences?

mort: (February 15, 2010 10:24am)

It is no use to blame Obama, Bush, Paulson, Barney Frank, etc. This whole mess began because of greed and "house lust". People knowingly borrowed beyond their means, was unable to meet their obligations. Now these cry-baby "victims" want to blame everyone for their own foolishness.

Big Adam: (February 15, 2010 10:03am)

The Loss Mitigation department is managed with the intent to purposely delay the process of the loan modifications. I work directly with a manager who get's incentives to keep the volume down and as a reality paperwork is thrown away or missplaced in an effor to keep the numbers down. There is no confuaion loan modfications will only be awarded 1 out of 30 when handled by an experienced attorney or mortgage audit company with constant pursuit. All of your threads should be able to attest that they were told they sent it to the "Wron Fax" or "No one received it as of yet". Very sad that this is what is being done and the CEO's are making millions still!

0a: (February 15, 2010 10:02am)

Borrower is also responsible for the loss as a positive on their taxes. You short sell your home and you are taxed on the money you lost as if you made money. Thank IRS.

Worried Veteran: (February 15, 2010 9:54am)

The sooner we all stop fighting each other Red/Blue, the sooner something MIGHT change. That conflict masks the real conflict. BofA is on on this somehow and has forced at least two deals to fall apart, here. That's two of two I know of. Gotta love the spin in their new ads about participating in America's recovery. Unsaid is HOW they are participating. Can you say 'cashing a taxpayer check'? It is past time when everyday Americans move their money and all other accounts from these alleged offending banks.

bruised4life: (February 15, 2010 9:49am)

My normal, 30 yr, fixed rate, 20% down, no games mortgage was with Countrywide, who is now Bank of America and I sent in my hardship docs in July 2009! After months of calling, begging, getting hung up on, misdirected,transferred and blatantly lied to, I finally was told on Feburary 4th, 2010,that I DON'T qualify because they were not allowed to lower the interest rate below 2% and that's what would be needed to make my payment affordable! Now my credit is ruined and I CAN'T move! Lifetime of perfect credit flushed away. They told me I might qualify in a different department now that I am finally at risk of default. Appears that's what they wanted all along!!

Larry: (February 15, 2010 9:44am)

Thanks for the video. Those of us who have been trying to refinance our loans now have a better understanding of why we cannot refinance. I have been battling with J.P. Morgan/Chase since September 2, 2009. Still no refinance.

anonymous: (February 15, 2010 9:25am)

No one says the republican had nothing to do with this. What is going is that the POLITICAL CLASS is out of control. Don't bring partisanship into this discussion either - it has notm ore place than race does. The issue is out of control politicians of both parties - that's what the tea party is all about.

anonymous: (February 15, 2010 9:23am)

Cite your reference to race. I listened to the entire video and saw none.

INVESTMENT BANKER: (February 15, 2010 9:16am)

Republicans have a BIG BIG hand in this mess. The constant spin about tea parties and deficit is tiring. Americans are not that stupid. We know our government has been running at a deficit for the last nine years and we know many of the policies endorsed and promoted by BOTH houses, got us here. So, regardless of the blame game -- REPUBLICANS can't hide behind Obama or the Democrats.

Anonymous: (February 15, 2010 8:59am)

Frank - Why did you work race into this? Is it because someone doesn't agree with the President's decisions. If that's the case I hate everybody....I don't blinly agree with everything someone says. I'm not a robot

loanpro: (February 15, 2010 8:56am)

thinks again susie2. Geo Soros besides championing every communist dictator, was a backer of Obama.

stix: (February 15, 2010 8:55am)

I don't have a loan through One West but I do have one through B of A and I asked to get info and see what could be done and they said nothing. Told me that the only way I would be able to lower my payments is to refinance and bring money to the table. Bunch of CRAP!!!! Just truly tired of Government special interest and crap that comes from their mouth!!!!!1

susie2: (February 15, 2010 8:47am)

This is why I do not vote for president. These gentleman must be a couple of the 52 power delegates that put the president in office. Think about it. Neither time did Bush win the peoples vote. The delegates that put our reps in office are all important people that can be bought. I say we the people should vote for them like we vote for an american idol. really make the work for our vote. Truly our rights as voters do not count. No one ever asked me to be part of the decision as to where our money as a tax payer goes.

Not A Sheep: (February 15, 2010 8:43am)

OK Big D Every one seems to forget....NO ONE held a gun to any ones head to make loans. There where "guidelines" in place BUT the banks DID NOT have to make the loans. There was no solid business sens in place. If a small business owner ran their business this way they would have gone under long ago, without any bail out $$$. This is all another scam on people on how to make money. Not one ounce of common sense, which by the way does not appear to exsist any more. It is not about politics because there really is not difference between the Reps or Dems. The American people need to get off the fence, throw away the texing and distractions and pay attetion to what is really going on.

Wisdomseeker: (February 15, 2010 8:40am)

You forget that the DEM were in power during the last two years of the BUSH admin.

Ron: (February 15, 2010 8:37am)

TBW screwed us too. BOA told us we were $2200 short on our Escrow which is BS. We told them we wanted an investigation, then they said $940 short which is still BS. We paid Escrow the entire time. SOMEONE stole my money now my mortgage went up to cover the shortage. What a buch of crooks and WE get to pay for it. Any class actioin lawsuits on this yet?? ronb525i@hotmail dot com

Le Truth Hurts: (February 15, 2010 8:25am)

This is why we all need to VOTE OUT EVERY INCUMBENT in the HOUSe and the SENATE--this will stop all that "good 'ol boy network" including party switching to keep their jobs, bi-partisan negotiations, etc. If no one up there has has current relationships and "farmer Bob" is new it will at least take years to form those cozy relationships that exist today ---have you ever looked into the finances of these people--very interesting--most go to Washington with negative net worth and only a few years there are multi-millionaires--all on a $85,000 salary---weird huh??? You go verify what I just said if you don't believe it..........

getitright: (February 15, 2010 8:20am)

To all you Obama bashers....this started under Paulson.......July 2008.....Obama wasn't in office yet.....so let Fox News broadcast this information.....most of the info they provide are mistruths anyway.

asillyrabbit: (February 15, 2010 8:14am)

the only solution is to forward this to your senators and congressmen and let them know that you will not be giving them your vote next time around. I say we get all the incumbents out of office, much the same way that the Ma. voters let Hussein know that they, the blue of the bluest states, have had enough.

Paul Smith: (February 15, 2010 8:10am)

Hi guys! I am holding a Townhall meeting Tuesday the 16th and would like to show this video or make a Powepoint presentation of it. Can you get a hold of me and help me out? Paul Smith. Paul Smith for Congress. Sacramento Ca. 916-600-4516

Big D: (February 15, 2010 8:06am)

Frank - where do you people come from??? Are you so party-centric that you can not take take a realistic and enlightened look at a situation without throwing out a race card or blame the war's. I suppose you want to blame the over 3,000 people killed in 9/11 that the attack was their fault for going to work! Wake up and realize that Bush-Blaming and finger pointing are the only tricks you Lib's have left. The rest of us realize that the Dem's had control of the Congress since 2006. Things have gotten WORSE not better. The cries of finacial reform in the Fannie Mae and Freddy Mac were made back in early 2005 and Barney Frank and his fellow dem's said there was nothing to worry about. Well...guess what! The chickens have come home to roast and we all have to clean up the crap now!

MiddleClassRIP: (February 15, 2010 8:06am)

Great reporting guys. Another sad chapter in ripping off America's middle class. But I hate to disappoint you, it is not by accident or coincidence at all. If you read "Rule by Secrecy" by Jim Marrs, you will get factual data about the historical and current plans to change everything American. You tube has lots of interviews on the subjects and don't miss the Federal Reserve's starring role.

jruzicka: (February 15, 2010 8:02am)

You guys are exactly right. We have been doing short sales for a handful of years and we blog about the processes and the banks we are working with and amazingly IndyMac/One West is a bank we have had issues with. LOL. Find more on our Blog at: http://www.capitalonemitigation.com/blog/ In think the FDIC is really the current party to blame if they weren't able to run wild and run under the radar with out consequences about their decisions they wouldn't be making these horrible decisions with tax payers money. End THE FED, is a movement that I stand behind 100% of Ron Paul who is one of the few great leaders we have in Washington!!

Jaime: (February 15, 2010 8:02am)

I have 1 friend in Florida and 2 friends in California that have stopped paying their mortgages. My opinion is this......First, shame on the "appraisers" who ever led anyone to believe that a 1,000 sq ft house in San Mateo was worth over $700,000! Second, shame on the banks who told people with no money to put down, and not enough income to pay a mortgage, that they were qualified to purchase an $800,000 home (that was really worth no more than $375,00). Third, shame on the banks that offered interest only loans, and my favorite, the "minimum payment" option that unbeknownst to the buyer...didn't even pay the interest amount due! And people wonder why we are in this boat. Go back to the old days where you had to have money down, earn enough to pay the bills, and have good credit. You bankers,lenders,etc.....dug your own greedy grave! Now go lie in it!!!

Jill: (February 15, 2010 7:43am)

What's even worse is when some of the under water consumers recover financially 5 to 10 years down the road, guess who's going to be knocking at their door? The banks that have just dug out from under their paperwork of foreclosures, requesting their money for the financial obligations that were never released along with the property releases. Remember thre are two parts to a mortgage, the obligation to pay and the actual property title. These banks will be like opportunistic hawks. Bankruptcy lawyers get ready.

jan: (February 15, 2010 7:42am)

Read the Case Management Summary of Taylor, Bean, & Whitaker. They had to file bankruptcy after they were closed down by FBI last Aug. They had 450000 loans and none of us knew who to pay. They feds froze all of our escrows and we all lost August payments. BOA and Cenlar took over servicing and demand another payment.

Frank: (February 15, 2010 7:37am)

welder702--it's obvious that big words and complex phrases upset and agitate you. I feel bad for you and your racist ideas and behaviors. Actually, I feel bad for all of the racists and bigots on here blaming the president for the mess we have been faced with. This is not just the banking industry's fault, but the uneducated and easily-taken advantage of consumer's fault for trying to purchase a mortgage that was WAY out of their means. The lenders did lie to them and unethically put them into a mortgage they couldn't afford, but it didn't matter to them--they wanted their profit. I'm not going to say that President Obama's completely free of guilt in this, but him and his advisers made the best decision (a very educated one albeit) and of course not everyone is going to be happy. It nonetheless saved us from entering another Great Depression..... But I'm sure Welder and the like that you obviously support the 2 wars that are crippling the US's $$!! ZEUS BLESS AMERICA!!!

mike: (February 15, 2010 7:29am)

You left out the most important part... Paulson channeled this need for the IndyMac purchase by first snuffing out Goldmans competition. Remember Bear Sterns and Lehman Brothers? Well now there's very limited competion in the investment banking space. The economy as a whole didn't start to improve until Paulson and Bush were cut out of government like a bad tumor.

jan: (February 15, 2010 7:15am)

Wouldn't it be nice if all of us mortgagees stopped paying at the same time? What could these crooks do? Could it even be organized? We have a lot more power than we realize. We only need to stick together.

Kirk @EASTeam: (February 15, 2010 7:00am)

I love you guys... Keep on Rockin' in the (semi) Free World... You can bet I'll let my extensive network know all about your video & site.

BD: (February 15, 2010 6:57am)

I was denied a loan modification by Bank of America. I am living off of the last few dollars of my IRA, for which I am paying a 10% penalty and 25% taxes (35%.) So when I finally deplete my only source of income, then I will qualify for a lower mortgage payment for which I will NOT be able to pay because I have no more money left. I'd say that is government thinking at it's best... I can't wait unit Obama leaves office and the Republicans regain control of Congress.

For "Rest of the Story": (February 15, 2010 6:37am)

1) FDIC never having lost a penny while factually true is a joke to the market implications and cost to taxpayer. Any reasonable college student could write a paper on the "true tangential cost to taxpayer" 2) Competitive bidding is also a joke. The way the government is handling this is minimizing the value of what is going on versus at least an attempt to maximizing the value as we have handled banking crisis's in the past (rtc, accounting relief, etc all are not perfect but all which have given time to resolve in more normal markets). There is no growth or aquisition minded Bank executive in his right mind incented to pay market price for anything when the FDIC is monetarily incenting them to wait for the splat and be handed a bagful of gifts.

TwoEdgedSword: (February 15, 2010 6:32am)

KR; Are you suggesting that only Fox News would carry this story? Well that may be true. If so, I think it's high time to get past this "Fox News is the enemy" crap and understand that politician on both sides of the isle are the focus. If the media is complicit by NOT doing their jobs, then let's run 'em ot. But first it's time to run the pols out. We need to change their minds in DC. Get the minds that are there now out and get some new minds in.

EC: (February 15, 2010 6:28am)

ED, If they would have done what I suggested to my congressman and senator we'd have no recession. At one time the bailout money from the tax payer equaled that of everyone full morgage payoff in the USA. If they would have paid off everyone's mortage we'd have had our entire mortgage payment every month to put back into the econony to BUY goods, therefore making jobs for everyone. With that they would have had to put an end to any easy loans or credit cards keeping people in the mode of "living within your mean" which means pay cash fro about 99% of all your wishes and never be in the red. But know they elected socialist Obama who's goal is to assure the freeloaders are taken acre of at the tax payers expense. It is time for ALL these type of people to be removed from office across the entire country.<a href="http://www.americagonestupid.com">America Gone Stupid</a>

CommonMan: (February 15, 2010 6:28am)

I would like to actually see the acceleration rate of foreclosures AND sales/closures of "bad loans" on One West's books, since their acquisition of Indy Mac's loans. This would conclusively put to rest what is motivating One West's behavoir regarding the refusal to: 1) workout current underperforming loans and 2) issue new loans. WHY CAN'T THE GOVERNMENT RELEASE THIS INFORMATION? OUR MONEY IS INSURING THIS PROGRAM!!

Ed: (February 15, 2010 6:26am)

EC: You are correct, any settlement on any debt you will receive a 1099 from that finacial lender and must be claimed as an income. Another way the government is helping big business stick it to the consumer.

TwoEdgedSword: (February 15, 2010 6:24am)

DOGFACE! How transparent. First of all, the bulk of your "argument" is name calling which should be unnecessary. The next argument is wordsmithing the pronunciation of a name? Well that's earth shattering material - thanks. Now as far as some poor allusion to the idea that this is nothing but capitalism is laughable in a blow to the head kind of way. What's the first letter in FDIC mean? FEDERAL. Bailout money most certainly came from our pockets. The idea that it's being paid back is a joke. Once money goes into the system, it will not come back whole. Besides, here's the best case I'd love for you Mr taxpayer to lend me some investment capital for a couple years. You can send me a check - but I prefer cash. So I am hearing that taxpayers pay none of this because FDIC insurance is Bank funded? LO-freakin-L. So BANKS pay for this eh? And bank gets there money from......? Worse than government mismanagement and theft is the shills that excuse it.

jan: (February 15, 2010 6:24am)

TBW was forced into bankruptcy by FBI raid last Aug. TBW was 3rd largest mortgage co. and did not take a bailout. All of their accounts were froze and they had to take Aug payments from 400000 homeowners. All escrow accts are frozen in bk court. Servicing rights have been redistributed to BOA, Cenlar, and AHMSI. Please read the Case Management Summary, US BK CT, Middle District of Fl, Jacksonville Division, Case No. 3:09-bk-07047-JAF. They took our payments for June & July and then reported us late, then just kept the money in an overage acct. How long before they shut down this site?

Any Bank Official and the market can do the math: (February 15, 2010 6:24am)

It is hard to evaluate the valuation of a high risk set of assets from 10,000 feet. But you are much much closer to right than wrong and encourage you to continue to pressure and not let the poor job govt officials are doing go unnoticed. Let the market do the talking for you. BBT (200bil) similarly was gifted anything of worth of Colonial Bank (50bil) and BBT got all the branches (something that banks normally pay a premium for) and loans (30bil plus guarantees at the expense of everyone but FDIC with a claim). BBT stock jumped 10% on the announcement. If you calculated the value of a 10% jump in market cap of BBT you would get the markets impartial valuation of the misprice of the Colonial bank sale (to BBT's benefit). Comparing 30 bil of the Colonial bank loans that moved to that market cap jump plus a number that approximates a tradition value of the premium on bank assets leads you to a number that this deal is mispriced from 5 to 10 times the amount of assets moved.

K2: (February 15, 2010 6:20am)

You should forward this to Fox News.... I'm sure that they would be more than happy to discuss this and get it out to all the folks! The more exposure this gets the better opportunity it can be changed.

Ed: (February 15, 2010 6:19am)

I am in the Mortgage industry, well what is left of it. This is not just from this bank, after the "fall" on the industry and after the bomb of Obama payouts and bailouts, every bank tightened their vaults and lending has come to a near end stand still. The idea of my, and everyone’s tax monies going to companies that continue their bad behavior of business and bonuses for failure is just obscene. I had hoped the government would have made the right deal and given the money to every person who paid into the system to pay off loans, credit cards and spend back into the economy. If we all received $150,000 or more, home, car, credit card debt would have been satisfied (look the banks still got their money). Any remaining cash go and buy, or save. Even if they taxed us over a gradual time, they get it all back and the economy is boosted. THAT IS A REAL STIMULUS PACKAGE!!! It frightens me to think the banks are benefitting from our loss instead of helping, "kick the guy when he is down".

EC: (February 15, 2010 6:18am)

Okay its my understanding if a person bought a house in 2002 for $310K and then took a second for $200K and is now in forclosure, which is now selling for $250K the seller will get a 1099 for taxes owed on the on the $200K second. Thta $200K will be added to that years income. Looks like again the government gets back a lot of doe.

Wondering: (February 15, 2010 6:04am)

Hmmmm. So did a similar sweet deal happen for Bank of America with their buy-out of Countrywide???

election 2010: (February 15, 2010 5:58am)

And again, there appears a name: GEORGE SOROS!!!! this guy wants to destroy the America we know and love! And his puppets do their best to help him! Vote them out in November!!! ALL OF THEM! Put people in the offices who REALLY represent we the people! Get informed who voted against America and the (true) Americans in crucial issues, that can make or break this great country (it's not only the FDIC-issue!!!): http://www.anno2010.com

WeHaveBeenDeceived: (February 15, 2010 5:49am)

@ Banker... Ummm... ok so bankers are having to pay larger FDIC premiums... and bankers get their money from banking customers... so 1 and 1 equals 2? It is the customer who inevitably eats the premiums through increased fees and decreased intrest rate returns on customer investments / accounts. Your a banker and are in business to profit off of a fiat usury monetary system. Gemme a break, your sure not going to take the hit. LOL

Mogdar: (February 15, 2010 5:43am)

Dogface, this has absolutely NOTHING to do with capatilism. If it did, it would never have happened in the first place and the bank would have failed instead of being bailed out with OUR money with has nothing to do with the private sector. Failure is good, not matter how big the company is. It weeds out the weak, poorly run companies so the strong ones can proper and new ones that are better managed can take their place. I'm more than happy to go through the "pain" stage to get to the profitable stage again rather than have the government do anything except what they are given the power to do by the Constitution. I believe we would be mostly rid of all the problems we are still facing had things been allowed to run their course as they would in a tru capitalist society, which we no longer are.

Rest of the Story: (February 15, 2010 4:56am)

The math on the loan example is correct. Failed bank buyers are getting GREAT deals with the loss share protection offered by the FDIC, but there’s a little more to the story…the FDIC loss share protection essentially limits the maximum credit losses for a buyer to about 10% of the loan principal amount. In order to buy a failed bank, the FDIC must go though a competitive bidding process. Bids have been averaging about 85% of par, thus “locking” in a “profit” of 5% of the loan balance on average. Some buyers have been successful bidding 70 or 75%, thus locking in an even bigger “profit.” BUT…TWO key parts of the puzzle the video doesn’t address are: (1) the buyer must pay for servicing and collecting the loans–many of which are defaulted–which takes a lot of manpower and money; and (2) the FDIC avoids having to do #1 – which saves the FDIC lots of money - this was a huge lesson learned from the S&L crisis. Lastly, the FDIC has NEVER relied on taxpayer money to pay for bank failures.

Saryl: (February 14, 2010 11:02pm)

Great work. I think they also get all kind of fees for going through the foreclosure process. Also the people buying are in a tight syndicate that is difficult to break into. And the bigger banks that are buying the smaller failing banks are buying with our bailout tax money. Also they get a hugh tax credit for doing the buyout so they will not be paying any taxes on this ripoff.

Ronald: (February 14, 2010 10:18pm)

This should piss off every American. Demicrat, Republican, Independant, etc...

Chris: (February 14, 2010 9:33pm)

MM...the same thing happened to my son...they just finished a short sale and less than 3 weeks later they got a 1099 for the dificit amount...they only had one lender "Everhome Mortgage"...may I please email you as well to get help for them?

pissed: (February 14, 2010 8:32pm)

The whole thing is for the bankers, by the bankers and funded by us... democrat or republican, they're all bought and paid for by Banks... Follow the money. Wish I could buy a French citizenship right now.

ProAmerica: (February 14, 2010 7:41pm)

it's NRC@nrcsaveshomes.org not mrc@ Adolph looks good compared where all of this BS is going to go...

Pro American: (February 14, 2010 7:39pm)

you have only part of the TRUE agenda... "redistribution of wealth" imcludes YOUR property and LIFE! nrcsaveshomes.org mrc@nrcsavehomes.org

Welder702: (February 14, 2010 7:34pm)

Dogface: I read your comment and I can see you live under Obama's desk. You have no idea what you are talking about and we are all now dumber for reading what you wrote.

BH: (February 14, 2010 7:31pm)

Please see the NY Times article that was just released minutes ago, regarding the FDIC's "Unusual Response" to the video. http://www.nytimes.com/2010/02/15/business/15fdic.html Please notice that OneWest had no comment before the story ran.. Hmmmmmmm... Methinks things might get interesting this week...

MM: (February 14, 2010 7:11pm)

Junie... if that 1099 was for your first mortgage, you shouldn't have gotten one. There's a law in place that is supposed to protect short salers from the deficit tax. If it's your second mortgage, they do have a right to tax. Email me at HearthforYou@gmail.com for a source that can provide reliable help for your options.

Mac10: (February 14, 2010 6:54pm)

Dogface 13 is an idiot!

Natter: (February 14, 2010 5:17pm)

DogFace, February 13, is a typical right wing nut. First thing he does is attack the commentators calling them "doughnut eaters". Second attack is on the way the commentator pronounced a name!? Thirdly, and most importantly, he misses the point completely when he refutes that "the new mortgage holders sell it for whatever they want". He says "They sell it for whatever a new buyer IS WILLING TO PAY, which depends on the value of the underlying collateral" HE MISSES THE POINT which is that REGARDLESS OF THE AMOUNT PAID, under the corrupt sweetheart deal given to the One West conspirators, they can't loose - only us tax payers get to do that. Lastly he goes into a neo-con rant about letting the pvt sector manage the money: the same unregulated pvt sector that got us into this mess in the first place. The real problem is the revolving door the fat cats use: one day pvt sector, next day they're sitting in a vital govnmt seat - case in point: Paulson, who gives deals to pals.

Junie: (February 14, 2010 4:40pm)

We had a short sale in September 09 and received a 1099 for the amount of the mortgage minus what the lender received at closing. Now we have to pay taxes on money we didn't get!! Where is the justice in this?

"Sass": (February 14, 2010 4:37pm)

If the FDIC is correct, and the 'Bad-Boyz' in the video were wrong, . . . Then why is the FIDC going broke, despite subsidies/contributions by member banks?

AK-71: (February 14, 2010 4:16pm)

Interesting response from FDIC. They talk of not having paid one penny (in the past tense although the video is about future losses). They also claim that the loss covers 7% of total assets of OneWest. What percent of IndyMac's assets would that be? And they also claim that they have not requested any money from the Treasury Department and that they are not funded by the taxpayers but by the banking industry. That last part is technically true as noted by the person who posted the first comment, but to believe that if FDIC collapses, taxpayers won't be in the picture is a fairy tale.

KdB: (February 14, 2010 3:52pm)

The last report I saw on the FDIC financial status was that they were down to $10 Billion as of Sep 09 as reported by the FDIC Chairman Bair and looking to triple healthy bank premiums. Though they have the $500 Billion option with the U.S. Treasury, the FDIC was not planning to exercise that option as of last year. However, with this year already seeing more bank closures in the same period of 2010 (16) vs 2009 (8), they may have no choice but to go to the Treasury for "virtual money". The year 2009 saw the largest number of bank closures since the Great Depression and much of that was due to the home mortgage debacle. Now the commercial loan debacle is setting in and the number of closures may set a new record.

Anonymous: (February 14, 2010 3:22pm)

The FDIC is insolvent. Why did the FDIC require an increase in its credit limit with the U.S. Treasury to $500 Billion? http://www.calculatedriskblog.com/2009/05/senate-passes-expanded-fdic-credit-line.html The FDIC is just as insolvent as the banks that it insures. It borrows money from the Treasury to pay off depositors and take over the bank. Where does the Treasury get the money? The Treasury sells Treasury notes and bonds to the Federal Reserve Bank (FED). Where does the FED get the money? The FED digitally prints the money via computer. Think I'm misinforming? It's straight from Ben Bernanke's mouth during one of his numerous testimonies before Congress and the Senate. The FED prints the digital money at the speed of light, and then issues orders to the U.S. Mint to print and delivery the physical paper money to one of the FED branches. It's a house of cards waiting for the next puff to blow it all down.

Old Ducker: (February 14, 2010 3:18pm)

Banker, that's ridiculous. Ultimately the FDIC is funded by bank customers.

gr: (February 14, 2010 3:16pm)

Banker, it is sad that smaller, well-run banks have to pay for these idiotic deals. I think the majority of Americans understand, however, that banks make money from their customers, which in most cases, are taxpayers. The basic premise is that when the banks have to pay more for FDIC premiums, they turn around and charge their customers to make up for the added expense. Hence, in the end, the taxpayer will be footing the bill for this.

Banker: (February 14, 2010 3:05pm)

There is just one glaring error in your story. You keep refering to the FDIC payments as coming from taxpayers - which is 100% wrong. The FDIC insurance fund is created from insurance premiums paid by banks, so its the banks who pay their ever increasing FDIC insurance premiums that are getting hosed on these deals. As a banker whose watched his annual FDIC insurance premiums go up from $300,000 in 2008 to $1.2 million in 2009, banks are paying the money into the FDIC insurance fund that is going back out to cover these insane deals. Stop mis-informing the taxpayer, these stupid deals cost them NOTHING!! If anyone should be upset it should be the well run banks out there who are being made to shoulder the burden of stupid deals as you've described. This is a non event for the taxpayer.

LaSoup: (February 14, 2010 1:23pm)

I think we all need to start working together against these banks, mortgage lenders and creditors. The creditor banks (JP Morgan, Citibank, etc.) are doing the exact same thing with credit card debt as others are with mortgages. I'm up against Citibank, and I invite anyone who would like to join me fighting this to please contact me at suse2001-at-yahoo-dot-com. I am not a lawyer or a Fed; just a private individual who cannot sit back and allow this injustice to continue.

Rod: (February 14, 2010 12:17pm)

What are the possibilities of filing a class action suit against these banks? In particular, those who are supposed to be working with customers on loan modifications but continue to delay, mislead, or just ignore requests. Have tried for loan modification on three different occasions, one by a "loan modification help firm", one by me personally contacting the bank, and currently, one by a HUD affiliated, non-profit organization, and constantly, in all 3 cases, hearing "you're qualified", "you're not qualified", "we don't have your paperwork", or "you'll need to refile". Isn't this "delaying tactic, the bank's attempt to make more money, at least against the intention of the President's plan, if not just totally illegal?

ILoveTreker: (February 14, 2010 10:54am)

"Think big work small" Great Job exposing the scheme! I would love to see you expose the deal how JP Morgan Chase STOLE Washington Mutual. For years JPM tried to buy Wamu but it didn't work out. Wamu had a very profitable branch network that JPM wanted bad. I understand that the FDIC hurried the sale by prematurely bringing Wamu down and selling it withing 1 hour to JPM Chase. FDIC owed several favors to JPM CEO DIMON for taking losses off their hands. If Wamu was helped with tarp money and restructuring like CITI and B of A I think they would still be around. I understand that Jamie Dimon is very powerful in high places and very ruthless. JPM has posted lots of profits which is fine with me however, not at the indirect expense of the public. It is almost impossible to get a loan with them. They have a credit card monopoly and if you try to deal with them for help on loans and credit cards they are arrogant and ruthless as their top management.

GerryG: (February 14, 2010 10:48am)

The problem here is the FDIC that sets up this scenario. And we think the government can run health care!

bh: (February 14, 2010 10:09am)

When was the last time you saw the FDIC take the time to release an official press release over a "video gone viral"? A video that wasn't put out by the mainstream media... Has this ever happened to anyone's knowledge? Perhaps there is more to this story than we thought? I mean, come on.... One of the biggest money machines in the world took the time to respond to this video. Just think about it!

oceansu: (February 14, 2010 10:03am)

Isn't it still the post homeowner who has to pay the taxes on the money saved through the short sale?

mthiker: (February 14, 2010 9:09am)

It is too obvious what is going on in the US - an insidious unearned transfer, through the "financial system" and the "health care/insurance system," of assets from those who have less to those who already have much more and control the government more than most can imagine. Pity the grandchildren of the middle and lower classes.

Frank: (February 13, 2010 10:53pm)

As the Wall Street Journal reports this morning, in what are called a "loss-share" agreements, buyers of failed banks are getting billions of dollars in government guarantees to snatch up the bank's bad assets. To entice buyers, the Federal Deposit Insurance Corporation is offering to cover around 80 percent of the losses associated with buying a bank. The result, the WSJ points out, is a massive subsidy to the private equity industry, and a huge risk to the American taxpayer. As bank failures have mounted this year, much has been made of the FDIC's dwindling Deposit Insurance Fund. But, as the WSJ reports, the FDIC's potential risk through loss-share agreements "is about six times the amount remaining in its fund that guarantees consumers' deposits." Though the WSJ doesn't go so far as to say the enormous guarantees are, in fact, sweetheart deals, it's hard to imagine a better scenario for bank buyers. (Except maybe the FDIC offering to guarantee 100 percent of the total losses associated with buying a failed bank.) "The FDIC, assuming its traditional role, brokered a sale of the bank's deposits to BB&T Co

househunter: (February 13, 2010 9:58pm)

@BOB, please share with me what how we can learn more about the Share Loss Agreement and Article 2c. This is crucial information. I'm an agent doing short sales. I just closed one with One West after 14 months. They were transitioning at the time apparently from IndyMac. I will definitely like to use your information for the next deal. You're the only one I've heard of that seemed to have a solution for negotiating similar short sale transactions with them. Please reply to revelations2u@gmail.com I value your advice on this.

FortuneTeller: (February 13, 2010 9:54pm)

Well, it looks like the FDIC press release has quieted the masses, once again. The sheep have all gone back to hiding their head in the head in the sand, now that the master has spoken. Sad, but true. Never mind the fact that the response was less than adequate... It was a response, and should now be taken as the gospel... Keep hiding your head in the sand folks... But remember this video a year from now, when things get even worse than they are today...

DC23: (February 13, 2010 3:00pm)

We were foreclosed on, which took 3-4 years to complete. During that time we tried everything possible to get them to work with us, but they were determined they wanted that house back! Plus, I actually went to the courthouse and pulled the leanholder's paperwork and it was not the same as the people that foreclosed on the home. We knew they had no right to foreclose, but there was little we could do without $30,000 or more. We had already given them $13,000. They would not even give us a payoff!

janielaurel: (February 13, 2010 2:55pm)

having been on the "receiving" end of a foreclosure (illegal), I know how it feels to be screwed. I'm sure they made a ton of $, and if I could figure out a way to get even, I would. thanks for bringing this to the attention of the public at large. the more people who know about this, the happier I will be.

ppbankruptcy atty: (February 13, 2010 1:19pm)

i am a bankruptcy atty in sacto. in my cases, the debtors have 1st dot, fail behind on pymts, file ch 13 to cure arrears, post-petition excrow advances are put into proof of claim to pay over 12 mos, and then they do a escrow analysis and use the same pre-petition escrow advances, this results in a post-petition mortgage payment, debtor cannot afford the increased pymt and gives up resulting in conversion to ch7 and foreclosure...which equals profit

Bob Chapman: (February 13, 2010 1:01pm)

If this is not posted on YuTube - can you do so.

Natter: (February 13, 2010 12:20pm)

I work exclusively in the short sale arena. There's a lot of screwy stuff happening right now. Just closed a deal where, to get the deal done, the first lien-holder COMPELLED buyer to pay it less he had offered! I wish you guys would look at Greentree lending and figure out what's behind their refusal to accept less than 5% of the sale price when they're in 2nd position.

Anonymous: (February 13, 2010 11:35am)

Hey one giant pain, I will be awaiting your continued blog about OneWest and the FDIC lawyers. Who can help in the regulation of all these big banks? What can we do?

Ultra: (February 13, 2010 11:21am)

The couple could not be reached for comment. They have an unlisted phone at the suburban South Euclid address listed on the summons issued to them. Jonathan Entin, a Case Western Reserve University law professor, said the Boyko ruling reflected the increasingly complex nature of mortgages. Entin said the case would send the message that lenders must be better prepared when they go to court to show they have a well defined interest in a property. "It does not mean borrowers are necessarily going to have an out, and I don't think Judge Boyko wrote his order in a way that can fairly be read that way," he said. The pooling of home loans into securities has been a long-standing practice. Some $6.5 trillion of securitized mortgage debt was outstanding at the end of 2006. When a loan goes into a securitization, the note is not sent to the trust and instead shows up as a data transfer. The actual note typically is kept at a separate document repository company. Larry Platt, who specializes in mortgage lending issues at the K&L Gates law firm in New York, downplayed the importance of the ruling. "I think it's scaring more lenders than it needs to. It is

Ultra: (February 13, 2010 11:20am)

In the often complex arena of the sale and pooling of mortgage loans, proof of just who holds a debt can become clouded. Boyko warned Deutsche Bank National Trust on Oct. 10 that he would dismiss the 14 foreclosures it was seeking through his court if proper mortgage ownership documents weren't produced. The judge said the documents filed with the court by the trust only indicated plans to turn over the documentation. Three weeks later, foreclosure actions were dismissed without prejudice, meaning they could be refiled. Boyko noted that institutions seeking foreclosures without proof of ownership "seem to adopt the attitude that since they have been doing this for so long, unchallenged, this practice equates with legal compliance. Finally, put to the test, their weak legal arguments compel the court to stop them at the gate." John Gallagher, a Deutsche Bank spokesman in New York, said the Frankfurt, Germany-based Deutsche Bank would not comment in detail on the ruling involving its trust arm, which had depended on a separate servicer to litigate the foreclosures. "The function of the trustee is largely an administrative one; the trust company has no own

Ultra: (February 13, 2010 11:17am)

Federal judge tells trust to show clear mortgage documentation in foreclosures By Thomas J. Sheeran ASSOCIATED PRESS CLEVELAND - A financial company serving as a trustee for securitized mortgages has been rebuffed in its attempt to foreclose on 14 homes. A federal court judge ruled the company didn't provide clear proof of mortgage ownership, questioning a practice that usually goes unchallenged. U.S. District Court Judge Christopher A. Boyko's decision on Oct. 31 in a foreclosure case brought by Los Angeles-based trustee Deutsche Bank National Trust Co. places more responsibilities on players in the secondary mortgage market, where investors acquire and pool mortgages for the investment return. It was unclear what, if any, effect the ruling may have on the increasing pace of foreclosures nationwide. The judge noted that people about to lose a home through a foreclosure typically want to remain in the home or quickly find a new place to live. Boyko said they usually don't challenge the institution to show proof of its right to foreclose. In the often complex arena of the sale and pooling of mortgage loans, proof of just who holds a debt can become cloud

Ultra: (February 13, 2010 11:15am)

There's an organization who claims it has the ability to help you get rid off your mortgage...How legite do you think their claim may be? I have included their website link (Learn more about what you can do about settling/correcting your mortgage at http://livingfreeandclear.com)

One giant pain in the: (February 13, 2010 11:09am)

I am a lawyer in RI. IndyMac, One West and is attorneys try to rape mortgagors in this state everyday. Loan Modifications with this company are impossible unless a lawsuit is filed. The funny part is that if the FDIC is named, it sends a team of lawyers trying to intimidate folks trying to save their homes. I will add more to this after I review my 16 One West files on Monday.

Angel: (February 13, 2010 10:55am)

It's my understanding that any good lawyer can avoid a foreclosure proceeding by simply demanding that the original mortgages and doucuments be produced at trial. It seems that most of these mortgages were sold over and over and that the original paper work is very difficult if not impossible to retrieve

TrainWreckWatcher: (February 13, 2010 10:13am)

Great example of the theft enabled by the FDIC. You should follow this up with the story of how IndyMac failed. NY Senator Schumer wrote an open letter about IndyMac's tenuous financial position sparking a Friday/Saturday run on NY branches. That run spread the following week and then the bank was siezed. Due to the RUN. The interesting this is this ~ an LA hedge fund had access to IndyMacs books because they were considering purchasing the bank. That same hedge fund is alledged to have ties to NY City and important Schumer supporters. The questions: Was Schumer's letter meant to break the camel's back? Did the hedge funds use Schumer? Did Schumer break any state or federal banking laws with his open letter?

solarc60: (February 13, 2010 10:08am)

My brother just had to short sell his house due to lossing his job. After signing the note for part of the difference for the short sell,he now owes income tax on the part the bank did right off.

DogFace: (February 13, 2010 10:05am)

These two bloated, donut eating hosts don't know what they're talking about. First, the guy's name is "Menuchin" not "Munchin" as they pronouced it. If you aren't doing your homework on the names of the players, how can we trust the rest of your facts? Second, they say the new mortgage holders "sell it for whatever they want". WRONG!They sell it for whatever a new buyer IS WILLING TO PAY, which depends on the value of the underlying collateral which some bone-headed banker loaned against at 100% loan-to-value in the first place. Third, why would you want the FDIC or any government agency to be managing mortgages and collections?? You want it in the private sector; buying the mortgage back from the FDIC gets money back to the government for what they paid to bail out the failed bank in the first place. They make money on the investment , which is:PRIVATE SECTOR injecting capital, also known as CAPITALISM.It's this kind of partially informed, populist ranting that is slowing the recovery

letsenjoy53: (February 13, 2010 9:32am)

Let me also say that in order to fully understand how things are, a great deal of research is required. The power elite as many of you refer to them as, have systematic plan to unite the world under one economic system. One World, One Monetary system is the goal. The method of getting there is really pissing me off. The are utilizing deceit, misdirection and feeding us imprecise information to redirect our attention away from their agendas. In essence we have been swept along by events which we should have had the ability to control. Unfortunately those before us forfeited that power to a select few in 1913 when we gave up control of our monetary system. I will try to change that. My name is Sir William L. Calder at letsenjoy53@yahoo.com. Thank you Author, Michael Lindsay for revealing the light at the end of the tunnel.

txmoto: (February 13, 2010 9:14am)

www.daveramsey.com Thanks guys. When is the US taxpayer gonna WAKE THE HELL up? and thrown the bums out?

letsenjoy53: (February 13, 2010 9:13am)

Ladies and Gentlemen, the video definitely explains what the technocrats are doing with their authority, granted by all of us unwittingly, to maintain the monetary system in the hands of those who feel they know what is best. There is only one solution to the problem and Author Michael Lindsay is slowly educating everyone step by step. I've read his book "A Throne Awaits" and was floored. The messages hidden in the story are fabulous, simple and very realistic. His blog www.michaellindsayblog.com leaves no stones unturned. My investigation of the facts shows that removing the authority to create interest debt by the Fed out of thin air stops all the crap that is going on, plus levels the playing field, so this will never happen again.

professor: (February 13, 2010 9:07am)

Do you really think the time will come when the public does not get screwed? We could be here all day discussing " sweetheart deals" This video should be sent to every realtor and short sale lawyer in the country

FDIC Strikes Back "cont - 2": (February 13, 2010 8:58am)

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.

FDIC Strikes Back "cont.": (February 13, 2010 8:57am)

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&q

FDIC Strikes Back!: (February 13, 2010 8:55am)

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 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 a

Anonymous: (February 13, 2010 8:52am)

Willow - that's true but they do have a 500 Billion dollar credit line with the treasury, and recently, in late 2009 the FDIC did say that they may have to tap into it. They haven't done it yet, but it's there.

Willow: (February 13, 2010 8:41am)

It is possible that in this long thread someone already made this comment; however, the video stated that the funds for the FDIC come from the taxpayers. That is not purely correct. The FDIC is an insurance fund into which premiums are paid by the member banks. Of course, ultimately businesses and consumers pay.

Wisteria01: (February 13, 2010 8:39am)

We're dealing with Indymac/One West now. After trying to modify they started foreclosure. After giving us a "reinstatement figure" to get current we paid it. But then they cashed the check andd wouldn't apply it. After we complained to the "Office of Thrift Supervision, Dept of the Treasury, Consumer aaAffairs Division," and they started a case file IndyMac said they applied it and we were current. Treasury closed the case. 2 months later, we've stayed current, back fees (from 2008) and additional lawyer fees appear on the statement. These were all supposed to be covered in the "reinstatement." Now we're trying to reopen the case (have to call it a "rebuttal). How long do you think before they will start foreclosure again, because our payments aren't being applied correctly?

Missy: (February 13, 2010 8:29am)

heyNo smarts, I feel for you dude. Get yourself a good realtor who can drag out the foreclosure as long as possible and live for free, but do not take it out on the home. I am an agent and they are starting to go after people who destroy their homes. As I said below, while everyone is bickering about what is true or not, the bottom line is thehomeowner. You do not ask a homeowner who is distressed and losing wife and home to sign a $75000 promissory note. These bankers and many of them are doing this, have cold hearts.We can only hope to see them in jail where their billions of $$$$ will do them no good. I believe in KARMA. You can not be a nasty cold hearted person and even like yourself. It is more important to take the HIGHROAD and watch the Bernie Madeoffs go to jail.I do have a hard time with those who took out money, 2nds and 3rds and then let the home go to foreclosure AND they take it out on the home.ARE THERE NO MORALS ANYMORE?

BOB : (February 13, 2010 8:10am)

Another thing to think about... I have been involved with 9 or 10 OneWest Short Sales. In each case, they demanded a promissory note, just as they did in this video. In 100% of the cases, when we produced the loss share agreement, along with Article 2C (short sale formula sheet), plugging in the numbers of the deal into the worksheet, OneWest immediately agreed to waive the promissory note, and approved the short sale. So, the question that begs to be asked is.... Why, when faced with the reality of the shared-loss agreement, does OneWest capitulate and agree to waive the prom note and proceed with the short sale? Could there possibly more to this deal that we don't know about? Me thinks so....

bob : (February 13, 2010 8:03am)

Please take note of the play on words by Mr. Gray in the Press Release.."The Loss-share agreement is limited to 7% of the total assets that OneWest SERVICES. Who cares about the loans that they service? The video talks about the loans that they OWN, and the loss share agreement that is associated with these loans.

Hawaii Mom: (February 13, 2010 7:53am)

I've been in the midst of this "financial" devil for nearly 2.5 years now. Couldn't get a loan modification, finally got frustrated enough to walk out the door and leave the keys, with notice to the bank of course...I have more class than that, however, now that the foreclosure sale is complete ($300,000 loan was bought back by Citi for a whopping $87,750 - and this is a condo in Hawaii, not a realistic buy back at all for here), I am being sued for the "balance" of the loan. Hence, bankruptcy was my only alternative, not an easy pill to swallow for someone who has always worked, paid their taxes, contributed to society all of their lives. I don't quite understand where the "help" and/or justice is in the banking business. I have lost all faith.

ab: (February 13, 2010 7:42am)

Hey Gizmo - you might think the video is not an accurate representation - BUT what happened to us is absolutely true (scroll down and look at my "ab" entry about 5 or 6 below). Turns out the people that stole the house to the tune of 60k of taxpayer dollars were working for related Banks in the deal. So if the video is not 100% accurate, the greed and fraud perpetrated on the taxpayers is spot on. AB

Gizmo Williams: (February 13, 2010 7:33am)

Also, remember that most of this is done at a portfolio and not on a loan by loan basis. In most instances...especially foreclosure. The loss is realized in one month and the recovery can occur several months later. So there is a lot of accounting and administration that takes place with a Loss Sharing Arrangement that is glossed over or ignored here. This video is a very poor representation and is not at all what happens in the real world. BTW...I am no fan of the FDIC. Their actions resulted in a personal job loss and a considerable loss of wealth in 2008.

Gizmo Williams: (February 13, 2010 7:21am)

The calculation of the loss and recovery are done independently since they do not happen concurrently. Schedule 2-C is where the loss is calculated. The loss is entered in to Part 1 of Exhibit 1 A. When the assets are disposed of through short sale or auction...the proceeds of the sale are part of Exhibit 1B. At the end of the day, 80% of the short sale price goes to the FDIC and 20% goes to the purchasing bank. This is totally ignored in the video and completely changes the outcome. Further, the use of original loan amount as the basis for calculating the loss is not some sinister plan, either. The purchasing bank pays 70% for 100% of the book value of the asset. The $100K note is still worth $100K. What the bank pays does not change the underlying value of the asset. This video is full of holes and half truths it is ridiculous.

elizabeth: (February 13, 2010 6:44am)

We're trying to refi with ING because we are underwater. Their CFO wrote editorial in WSJ saying they were going to drag their feet because they don't like the federal policy. This really bites!

Q$: (February 13, 2010 6:41am)

great insight....is this scenario true for all lenders? even like wells purchasing wachovia, ect? this scenario true and same with the FDIC for all lenders?

Love my home: (February 13, 2010 6:38am)

C.Schmidt- I totally believe this video. I was turned down for the home loan modification. I've gone thru all my savings trying to stay current, and after 14 years of owning my home and never missing a payment, last month I fell short. I'm now on my way to forclosure. . . REALLY what is the solution to the problem? Voting NO next time will not save me/us now!

Liz: (February 13, 2010 4:22am)

"Is anyone listening out there? ANYONE!!!! Like the people who are supposed to watch out for the average joe one the street!!!" the answer is a resounding NOOOOOOOOOOOOOOOO!!!!!!!!!!!

ab: (February 13, 2010 1:14am)

Think this video is crazy? My indymac story: spring 2008 we are one of several sealed offers on a foreclosed home. We offer asking price at $630.We're told that we lost out - we were 2nd in line. 4 months later, still house hunting, we check the comps on the same neighborhood to see that the house sold/closed for $570!! Yes, folks, we were second to an offer $60K less than we would have Paid (PS, we had $400k to put down, credit scores in high 700's, and pre-qual'd for >$800k mortgage). Now I get why it didn't matter to the bank that they were taking a 60k bath to sell I'm sure to a buyer with "connections". The bank: IndyMac. My letters to every state and federal investigative and enforcement agency: Ignored with "not my jurisdiction" responses. No BS, true story. PS:no regrets, the same house is now worth about $500, but the corruption and greed is unbelievable.

rg: (February 12, 2010 10:23pm)

It's actually quite simple. Just plug the numbers from the video into Exhibit 2c. The numbers don't lie.

rg: (February 12, 2010 10:20pm)

Gizmo, by the way...80% of the recoveries are not netted out. 20% of the recoveries are netted out, as OWB covers 20%, until they reach 2.5 billion (according to the FDIC response tonight). The remaining 80% falls under the 80-95% reimbursement, depending on if they have reached the "threshold". So, this video is not garbage, as you say it is. Plus, please remember that OneWest bought these loans at 70% of Par, and are reimbursed at 80-95% of Par-Sales Price. Not only can they not lose, but they stand to make HUGE profits.

rg: (February 12, 2010 10:09pm)

Gizmo, I'm looking at the same documents, and I'm not coming to the same conclusion as you are. Where do you see a "share" in the loss? Please go to Exhibit 2c and tell us where this theory comes into play.

Gizmo Williams: (February 12, 2010 9:44pm)

The video totally misses some major provisions of loss sharing arrangements which make its conclusions complete garbage. Most notably that the purchasing bank must share recoveries with the FDIC at the same rate as the loss sharing rate. The proceeds from the sale of the property would be filed in the monthly certificate and the 80% of the recoveries would be netted out. While loss sharing is not really down on a loan by loan basis....in this example though 80% of the proceeds from the sale need to be calculated and netted out of the payment to the bank. So OneWest ends up losing money on this particular loan and not making money as the video misrepresent. They lose less than if there was not a loss share in place...but they still lose and not make money. If you look up the loss sharing arrangement at the FDIC website, Exhibit 1B is where the recoveries are calculated and subtracted from the Monthly Loss in Exhibit 1A.

p: (February 12, 2010 9:27pm)

******YOU CAN ALSO READ ALL THE DETAILS,INCLUDING FDIC's RESPONSES TO THIS HUFFINGTON POST INVESTIGATION AND DECIDE FOR YOURSELF WHAT THE TRUTH IS********* "FDIC Chief Got Bank of America Loans While Working On Its Rescue Agency Grants Sheila Bair Retroactive Ethics Waiver on Mortgages" http://huffpostfund.org/stories/2010/01/fdic-chief-got-bank-america-loans-while-working-its-rescue#ixzz0fOHfNayu Under Creative Commons License: Attribution No Derivatives *imho*

p: (February 12, 2010 9:22pm)

YOU MUST READ THIS FROM NEW YORK TIMES ABOUT FDIC's misleading claim to justify their actions in PPIP, offering no-interest, non-recourse loans to private investors at the expense of the actual property or home owners. *******http://www.nytimes.com/2009/04/07/business/07sorkin.html?partner=rss&emc=rss****** There is also TLGP, where the FDIC is backing over $300 billion of bank bonds for Goldman Sachs, JP Morgan, etc and they are claiming it is a money-maker for them because it collected fees. It argues that because none of these banks have failed yet it has NOT COST the FDIC and the implicit tax dollar guarantee A PENNY. It is morally irresponsible to trick average consumers into believing whatever they are doing is justified!*imho*

p: (February 12, 2010 9:20pm)

YOU MUST READ THIS FROM NEW YORK TIMES ABOUT FDIC's misleading claim to justify their actions in PPIP, offering no-interest, non-recourse loans to private investors at the expense of the actual property or home owners. *******http://www.nytimes.com/2009/04/07/business/07sorkin.html?partner=rss&emc=rss****** There is also TLGP, where the FDIC is backing over $300 billion of bank bonds for Goldman Sachs, JP Morgan, etc and they are claiming it is a money-maker for them because it collected fees. It argues that because none of these banks have failed yet it has NOT COST the FDIC and the implicit tax dollar guarantee A PENNY. It is morally irresponsible to trick average consumers into believing whatever they are doing is justified!*imho*

p: (February 12, 2010 9:19pm)

YOU MUST READ THIS FROM NEW YORK TIMES ABOUT FDIC's misleading claim to justify their actions in PPIP, offering no-interest, non-recourse loans to private investors at the expense of the actual property or home owners. *******http://www.nytimes.com/2009/04/07/business/07sorkin.html?partner=rss&emc=rss****** There is also TLGP, where the FDIC is backing over $300 billion of bank bonds for Goldman Sachs, JP Morgan, etc and they are claiming it is a money-maker for them because it collected fees. It argues that because none of these banks have failed yet it has NOT COST the FDIC and the implicit tax dollar guarantee A PENNY. It is morally irresponsible to trick average consumers into believing whatever they are doing is justified!*imho*

Frank Garay: (February 12, 2010 7:28pm)

Rebuttal to FDIC rebuttal: 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 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.

Frank Garay: (February 12, 2010 7:23pm)

Rebuttal to FDIC rebuttal: 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 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.

no smarts: (February 12, 2010 7:22pm)

to Missy- Thank you for the warning. Believe me I would love nothing more than to stay in my home. This idea is out of anger based on how hard I worked for what I have. I have looked at this in a retaliation vs the banking system who received bailout money instead of the people receiving it - then turning around and keeping it for themselves instead of helping us like they were supposed to. And if I have nothing left, what can they take away from me? Give ME prison time for something they can't prove? The bank shareholders should be in prison along with many politicians. An 8th grader could have solved the economy problems better than Obama. I don't want to get started on him because it sounds like you know what that guy is worth.

san juan steve: (February 12, 2010 7:22pm)

your right fred. this whole thing seems to make so much sense. i wish i lived in your world. really?

fred: (February 12, 2010 7:18pm)

Get a life, peeps. The FDIC has nothing to do with taking over banks. Do your homework, only the Federal Reserve can do that, and when they do, bank management and shareholders in the company walk away with diddley-zip-point zero in their pockets.

Missy: (February 12, 2010 7:15pm)

Mike in Alaska; What do you think the bankers would say? Go to the FDIC website and they lay out the FORMULA exactly as the mortgage bankers on the video did. And to the woman criticizing the pronunciation of one of the investor's name. yes you showed us how much smarter you are than the rest of us. That does not make what they were saying wrong OOOPs heaven forbide I would misspell something, that make make it factually wrong

Bob : (February 12, 2010 7:07pm)

Let them come Brian. The fact that they felt compelled to respond, and leave out 90% of the facts in the video is very telling.

brian tbws: (February 12, 2010 6:56pm)

well i guess its happened. they're coming out to attack us.

PF: (February 12, 2010 6:50pm)

Last year there were two attempts in Congress to put foreclosures into the hands of bankruptcy court judges, giving those judges the power to reduce both interest rates and principal. This would have given homeowners the power to negotiate with the banks rather than leave homeowners at the mercy of their lenders. The two bills were voted down thanks to the power of the banking lobby. You should check to see how your Congressperson voted on those bills. If they voted against them then come November vote your Congressperson into retirement.

Missy: (February 12, 2010 6:37pm)

Obama said he will be coming down on the banks. RIGHT, I suppose he will keep that promise just like all his other failed promises. Yes, where did all the idiots come from? I am amazed when people said, "the government will pay for it". You are MORONS and must not pay taxes. You must think money grows on trees, like the Obama administration. VOTE THEM ALL OUT. B.O. is as crooked as the political scene he came from Chicago.

Mike in Alaska: (February 12, 2010 6:31pm)

The American Banker daily newspaper is reporting Friday night that the FDIC is saying this video is factually wrong.

DudeSickle: (February 12, 2010 6:18pm)

Hey Hu Flung Pu, You are an idiot. "Yeah, the taxpayers aren't paying for anything... the government is!" Where the he!! do you think the government gets the money? Oh yeah, the FDIC isn't the government I suppose you will say, too. That explains why all of the idiots in this country like you voted for Obama! DUH!!!

Missy: (February 12, 2010 5:52pm)

hey No Smarts- better think twice about destroying that home. They are coming after people for just that. You will live to regret it

mortgagedatanow.com: (February 12, 2010 5:34pm)

With America, we have watched unfolding events that are threatening to engulf the middle class in a protracted repeat of the Great Depression and effect a massive shift of wealth from property and home-owners to other segments of the economy. We believe this to be a major challenge to the concepts of individual rights and property upon which this country was founded, and something that needs to be opposed by concerted action on the part of property owners whose assets have been, are being, and will otherwise be, stripped from them. The price of freedom is eternal vigilance. What to do? Knowledge is power. How much is the price on your head? We can tell you roughly how much your government will reward your lender to get you out of your house. You need this to know how to deal with your lender effectively, and later your government. If you don't get it from us … get it from someone!

Appraiser67: (February 12, 2010 5:21pm)

Frugalone: As an appraiser for 25 years I would like to say your an idiot. Are you saying that no realtor told their clients to bid more in the boom so they could get the house? What happens when the sale price went up? Did you get paid more commision? Realtors are as bad as the rest of the prople you are blaming. Stop trying to be hollier than thou

Ruthieb: (February 12, 2010 5:08pm)

From FDIC website How does loss sharing work? The FDIC uses two forms of loss sharing. The first is for commercial assets and the other is for residential mortgages. For commercial assets, the agreements typically cover an eight-year period with the first five years for losses and recoveries and the final 3 years for recoveries only. FDIC will reimburse 80 percent of losses incurred by acquirer on covered assets up to a stated threshold amount (generally FDIC's dollar estimate of the total projected losses on loss share assets), with the assuming bank picking up 20 percent. Any losses above the stated threshold amount will be reimbursed at 95 percent of the losses booked by the acquirer. For single family mortgages, the length of the agreements tend to run for 10 years and have the same 80/20 and 95/5 split as the commercial assets. The FDIC provides coverage for four basic loss events: modification, short sale, foreclosure, and charge-off for some second liens.

Sean: (February 12, 2010 5:04pm)

Well, that's not entirely true. FDIC will very soon be taking hundreds of billions of dollars from the taxpayer. Hu Flung Pu, you sound like Paulson and Bernanke and Chris Dodd when they were arguing that Fannie and Freddie should take on a lot more loans and at one point Paulson said that the residential conforming loan cap should be $1 million. They said it was because Fannie and Freddie were solid. In reality, they knew Fannie and Freddie would be bankrupt within a year and there would be a federal bailout -- I bet you could get documents proving that. The same thing is going to happen with FDIC. And yes, if they own default swaps on some of the loans in these trusts, they can make additional money (probably from AIG, ha ha ha) on the insurance payouts. And all of that is secret.

GotDOCG: (February 12, 2010 5:03pm)

I wrote congress and blogged that this resurrection of the RTC would occur TWO YEARS AGO!!!

rg: (February 12, 2010 4:59pm)

Before all you FDIC & George Soros Lovers get all "giddy", please take a look at the "response to the response" at zerohedge.com http://www.zerohedge.com/article/fdic-responds-indymaconewest-video-alleging-sheila-bair-transferred-billions-taxpayer-funds-?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+zerohedge%2Ffeed+(zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero)

Hu Flung Pu: (February 12, 2010 4:49pm)

This video is so riddled with errors it's ridiculous. A couple of issues off the top of my head... First of all, the taxpayers aren't subsidizing these "losses" - banks are. This is coming from the FDIC and the FDIC insurance fund. Second, any "gain" on these residential RE transactions are accounted for (or "tracked") over 10 years and shared with the FDIC. The video makes is look as though One West gets to keep the entire gain. Wrong. I'm not saying that One West didn't get a deal. Perhaps they did. But it's nowhere near as sweet as the video insinuates, nor does it have anything to do with taxpayers. If anything, it's the OTHER banks paying into the FDIC insurance fund that should be upset. I don't think the folks who made the video understand the mechanics of the loss-share arrangements.

Warmane: (February 12, 2010 4:41pm)

Hey guys, you left out the best part. Paulson, Soros, and Goldman Sachs were among the biggest purchasers of CREDIT DEFAULT SWAPS. These were insurance policies that paid off 40 to 1 when a mortgage defaulted. Gee, with a pay-0ff like that, do you think there was any incentive for Wall Street to destroy the housing market?

CA Consumer: (February 12, 2010 4:36pm)

Where in the agreements listed does it say the FDIC has to only pay 7% and Indymac Bank has to incur a 2.5 billion dollar loss before that loss share kicks in? That FDIC press release is full of falsehoods as they claim about the tbws video. Sounds like a federal cover is going on now.

The Truth: (February 12, 2010 4:13pm)

Press Release 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...

Larry: (February 12, 2010 4:05pm)

Have all you People complaining seen the FDIC press release!!!

no smarts: (February 12, 2010 3:49pm)

to Anonymous: I'm glad you think the economy is humorous. By the way... My ancestors had to fight in WWII in order to become a citizen of MY country. And my ancestors have always paid taxes in MY country. And true, I feel that if you are not a tax paying citizen, you should get out of MY country. And as funny as you think it is RIGHT NOW - I've brought in over $300k the last 2 years in a row (not much for some) and yet out of nowhere, I'll still lose my home. So don't think that you are safe because the Lord has told me that I'll be okay - but I'm no so sure for you.

Missy: (February 12, 2010 3:47pm)

First off, Stop blogging and write your Senators instead. Bombard them with letters. I have a fax and am VERY busy sending out letters about this. I think what some of you are missing here is that people are coming to sign closing documents and are being held hostage by the banks. They are being asked,by OneWest to sign a promissory note for $75000. One individual had lost his job,was going through a divorce and losing his home. The greedy bank said if he did not sign, that they would let his home to to foreclosure. Now he will not get to buy a home for 7 years and his credit is shot. AND, the banks will take advantage of him AGAIN, when they charge astronomical rates on anything he might want to purchase in the future. Poor guy is screwed again. If they would let him short sale, he would be able to purchase again in about 3 years. How greedy and nasty can this bank be?. Most other banks are doing exactly the same. Why is there no government oversight? Because they do not care us.

Scoot in AH: (February 12, 2010 3:44pm)

I just received a letter of denial for a short sale from IndyMac. The 1st is $1,000,000, the 2nd (different lender) is $350,000. The offer is $1,074,000. IndyMac wants full payoff on the 1st of $1,000,000. Obviously after costs Indy will net less than the loan and that leaves nothing for the 2nd. According to your video that means that One West Bank could stand to make more than $300,000.

Dude!: (February 12, 2010 3:40pm)

If you really want someones opinion about stuff like this go to google and type in "the guy from Boston"

Dude!: (February 12, 2010 3:33pm)

Here is what is really funny. We can watch videos all we want but no 1 knows what to do about the problems we have with this damn goverment we voted into office. The rich get rich and the poor just keep getting poorer. Do a video about who to contact and what to do about getting rid of all the dirty politions in office. We vote them in on promises and when they don't live up to their promises we just sit by and watch. Everyone needs to get off of their duff and start taking control of our own country again.

Madasyell: (February 12, 2010 2:47pm)

I have some banking stories that would make your head swim. I am so mad. I knew there was a reason they wouldn't work with small homebuilding companies to work out loans. We have lost everything we worked for the last 30 years to the banks. We were good paying customers and slapped in the face.

shamrock: (February 12, 2010 1:26pm)

bought a short sale in AZ last year for 50 cents on the dollar AND the stupid bank paid a realtor full commish. I thought they were crazy but figured there had to be some other incentive for them from the gov't. Unreal that media isn't hammering them on this.

Smarter than Most: (February 12, 2010 1:02pm)

Investigate Indy Mac even further...especially what the former CEO Frank Sillman & another former IndyMac executive Richard Wohl are doing today....the irony is that they created a company called Fortace LLC (http://www.facebook.com/l/d0540;www.fortace.com/) which...gets this....is a company that does post audits on loan files. For example "Repurchase Audits A top four bank retained Fortace to audit approximately 2000 defaulted mortgage loans per month and determine whether material fraud or misrepresentation had occurred." -- really?? I find this interesting that 2 execs from one of the worst mtg companies are now getting paid to audit defaulted loan files.... Think about it.

Joanne: (February 12, 2010 12:41pm)

Realtor who handles short sales says- From my experience, most of this information appears true. How this is being handled by the banks, should be illegal. These are the same banks who can not come up with a sensible loan modification for distressed home owners. The people & banks that got us into this mess are benifiting from property owners hardship! The way the loan amounts, sales & defiencies are calculated makes no sense- I'm sure someone is getting a big bonus for that math equation. Did you know that if the property is not a primary residence, in most cases a short sale IS NOT in the owners best financial interest - most are better off letting the bank foreclose. Does that make sense? A MI company can require sellers to sign promisary note for tens of thousands of dollars or forbid the short sale to go through. Property owners doing what they think is the RIGHT thing are finding that instead they are taking on more financial burden. For Who Does that make cents?

valley girl appraiser: (February 12, 2010 12:18pm)

Ok, peeps! The anger is palpable & rightly so. Bob H. sorry if someone tried to take credit for something you 'broke'. Bernando...glad you put it on your website. I did forward this to Glenn Beck [thanks to whomever posted the correct email address] as well as my current Congressman and the person who will be running against him. I am trying to get my nephew to upload it to YouTube...so if anyone [FRANK & BRIAN] are opposed to it, please notify me now. The more people outside of our industry know about what is REALLY going on...then we become empowered. And isn't THAT the goal here?

Bill: (February 12, 2010 11:55am)

Nicely produced piece... very slick. A couple things: 1) Any healthy bank can bid on these deals. The auction process is very open... no need to be a Goldman banker to get in on the action. 2) The FDIC makes payments to banks like OneWest out of their deposit insurance fund. That insurance fund is funded entirely by other banks. Not a nickel of government money has gone into the FDIC -- at least to date. So to the extent these deals are "sweetheart" deals, they are subsidized by other banks. 3) Any bank taking on a loss sharing arrangement covering single family mortgages is subject to the FDIC's loan modification program -- they can't just force short sales indiscriminately (at least not legally)

ashton: (February 12, 2010 11:49am)

@SnowJob > This needs to be exposed on mainstream media. > Passing it along to a friend at Fox. Was that a Joke?

NaNa: (February 12, 2010 11:15am)

What happens with the Mortgage Insurance Premiums that are paid each month?

Angry Citizen: (February 12, 2010 11:14am)

RE:anonymous. Guess what Sparky? You can't dispute the negetive economic impact that illegals and deadbeats have on our economy! Pull your head out Scooter, and own it!

Murphy: (February 12, 2010 11:04am)

BANK of (not) America....stinks

miami: (February 12, 2010 10:56am)

First off - you're going to be more believable if you learn how to pronounce Steve Mnuchin's name properly. Secondly, the FDIC organized this sale - run by Sheila Bair, someone with no GS links at all. George Soros is not affiliated with GS. He trades with them and every other large trading bank in the world - like JPM, Morgan Stanley, UBS, et al. John Paulson is ex- Bear Stearns. Blaming the ex- Sec'y of the Treasury for this deal is mega-retarded.

Nick : (February 12, 2010 10:56am)

@Bob Hertzog - blam! I can't stand it when people steal content!

aleskip: (February 12, 2010 10:54am)

If there is that much incentive for a bank to do short sales, why do they take months to process? Insufficient staff to handle them? There are plenty of unemployed Americans who could fill the slots and plenty of dollars to pay them if what you say is true...

Negotiator: (February 12, 2010 10:53am)

This is rather disturbing news, but it certainly explains in a nutshell why Indymac is so difficult to deal with, especially with foreclosures. I agree with loanlady, we all need to stand up. The worst bank by far is Bank of America, more the Countrywide legacy side of the bank. I don't know if a class action has been filed against them, but one needs to be. If anyone has any info regrading any class actions, I would be interested to know where my clients can start.

Nick : (February 12, 2010 10:50am)

@Bob Hertzog - blam! I can't stand it when people steal content!

Negotiator: (February 12, 2010 10:47am)

This is rather disturbing news, but it certainly explains in a nutshell why Indymac is so difficult to deal with, especially with foreclosures. I agree with loanlady, we all need to stand up. The worst bank by far is Bank of America, more the Countrywide legacy side of the bank. I don't know if a class action has been filed against them, but one needs to be. If anyone has any info regrading any class actions, I would be interested to know where my clients can start.

Anonymous: (February 12, 2010 10:45am)

Ohhhh, you poor pathetic "citizens". I'm pretty sure, if you aren't a decendent from an "American Indian" tribe, your ancestors were illegal immigrants and foreigners!! It is easy to blame someone else "No Smarts". Exactly Sparky, "No Smarts"!!!

Negotiator: (February 12, 2010 10:42am)

This is rather disturbing news, but it certainly explains in a nutshell why Indymac is so difficult to deal with, especially with foreclosures. I agree with loanlady, we all need to stand up. The worst bank by far is Bank of America, more the Countrywide legacy side of the bank. I don't know if a class action has been filed against them, but one needs to be. If anyone has any info regrading any class actions, I would be interested to know where my clients can start.

no smarts: (February 12, 2010 10:34am)

to BobR: Although the topic has gotten off track, i'll have to agree with r u kiddin. Unless one of us are a billionaire controlling the economy (which we are not), we should be on the same side 'helping each other'. The banks are not helping. True I haven't paid for my home in full but that is not a 'shattered American Dream'. If it weren't for our pathetic government who is only interested in people who can make them more money, we wouldn't be a country filled with illegal immigrants and foreigners whom take our jobs for less because they are not paying taxes, not spending money in this country, but yet they own everything and have utilization of our medical treatment and schools, it cost the hard working citizen too much to survive. If a TRUE American worked at a bank that doesn't help people, they should ALL quit and see what happens to the economy. But the BANKERS are just as greedy as the billionaires who really don't care about them. So they can have my home for little worth

pissedd: (February 12, 2010 10:01am)

in your video you forgot to add the fact that they can carry the gross loss over to the corporate tax return and offset net profits which will increase actual cash retained by about 39%

r u kiddin: (February 12, 2010 9:43am)

to Joann-sorry that I generalized Realtors and that you took it personal. I am a Black collar worker who owns his own business. I too know what it is like to work hard. (Hence "Black" collar) I come home every day with a "black" ring around my collar. I'm in construction and get ridiculed all the time about how much we charge. Although if it weren't for people like me, all those doctors, lawyers, insurance companies and worse yet BANKERS (BeeGee & RonB) and Government as a whole, wouldn't have a place to attend school to get a degree, work to earn a living, or home live in but yet they control this country and feel dominant above all others. I would be embarrassed to admit working for the government or banking. In fact I would be watching my back, losing sleep, be in fear for my life if I weren't making every effort to HELP my fellow mankind.

r u kiddin: (February 12, 2010 9:38am)

to Joann-sorry that I generalized Realtors and that you took it personal. I am a Black collar worker who owns his own business. I too know what it is like to work hard. (Hence "Black" collar) I come home every day with a "black" ring around my collar. I'm in construction and get ridiculed all the time about how much we charge. Although if it weren't for people like me, all those doctors, lawyers, insurance companies and worse yet BANKERS (BeeGee & RonB) and Government as a whole, wouldn't have a place to attend school to get a degree, work to earn a living, or home live in but yet they control this country and feel dominant above all others. I would be embarrassed to admit working for the government or banking. In fact I would be watching my back, losing sleep, be in fear for my life if I weren't making every effort to HELP my fellow mankind.

loanlady: (February 12, 2010 9:35am)

Rise up people, get mad as hell and fight for change in our government. If we don't, we all deserve what we get!

BobR: (February 12, 2010 9:14am)

To BeeGee from yesterday that the general public is not being harmed and that the FDIC is increasing assesments to the banks to cover these costs. BeeGee, do you really think that an assesment on the bank won't be passed on to the consumer? You would fit in very well with all these people trying to dig into my pocket.

Bob Hertzog: (February 12, 2010 9:10am)

Frank Bernardo: You have a lot of guts to come into this forum and claim this as being your blog, even going as far as to be upset that you didn't credit for "your blog". Please go to Active Rain and see my blog entitled "Is The FDIC Killing Short Sales?", dated September 19, 2009 (a month before you copied it and posted it on your blog site). This video was based on my original blog post, not the copy you made of it. Nice Try!

twitter.com/RealEstateDays: (February 12, 2010 9:09am)

This is very good information to share with all realtors and consumers... thank you guys... i will be be posting your link at my twitter account... http://twitter.com/RealEstateDays... hope everyone does the same.

Joann B. in PTC: (February 12, 2010 9:05am)

As a Realtor with our country's largest brand name co., I am dealing with both sides - Seller in Short sale and Buyers trying to qualify for loans. The mortgage industry leaders need to be regulated somehow for greed has had devastating consequences to our country's economy and many individual families. No need to cry for the banks with that video senario

Lynne : (February 12, 2010 9:01am)

what can we in the industry to get this changed.

RonB: (February 12, 2010 8:56am)

Question for "no smarts"...why do you call it "your home" if you never paid for it? So you somehow feel entitled to wreck the property because you can't have it for nothing? You're the victim of another shattered American dream, right? I guess you are right...you have "no smarts"

Frank Bernardo: (February 12, 2010 8:56am)

This came directly from my blog that I brok months ago. Michael dell is also an owner www.realestateandthings.blogspot.com Wished they would have given me a little credit one west is still buying banks and getting these deals. we are all standing by and letting this happen.

Lynne : (February 12, 2010 8:53am)

what can we in the industry to get this changed.

BeeGee: (February 12, 2010 8:52am)

The only one making any sense is ClayP. While the arrangement is absurd, it is not hurting the general public. The FDIC has just increased its assessments against banks to cover this. The FDIC has not taken a dime from taxpayers to cover these costs. Still, these arrangements are absurd and as a banker I'd like to know how I can get one of these sweet deals.

Brady: (February 12, 2010 8:51am)

I sold my house for over a million, and took back a second for 300K. When "recession" started the buyers walked away, leaving me with their new unassumable First mortgage with Wells Fargo. Wells has consistently refused to recognize my returned ownership, won't allow me (with great credit)to take over loan, and is foreclosing - auction next month. Four lawyers and a great short sale offer - all refused by Wells Fargo! Too many people think only people who spent more than they could afford are being foreclosed on - they should listen closer to individual stories of the victims of these bank thieves!

Frank Bernardo: (February 12, 2010 8:50am)

This came directly from my blog that I brok months ago. Michael dell is also an owner www.realestateandthings.blogspot.com Wished they would have given me a little credit one west is still buying banks and getting these deals. we are all standing by and letting this happen.

frugalone: (February 12, 2010 8:44am)

to ru kiddin.....try being a realtor and running your "own company" as a sole proprietor and then you will redefine what it actually means to work hard.....we didn;t create this mess, govt, bank, lenders and appraisers created it.....we don't set prices on homes OR lend money...get a clue

r u kiddin: (February 12, 2010 8:21am)

you're correct Joann but isn't that like the pot calling the kettle black? Realtor and greedy industry leaders...

im ready: (February 12, 2010 8:11am)

What these multi-Billionaires are not smart enough to figure out - is that they will no longer have the money when they are DEAD. Civil War anyone???

Wakeup: (February 12, 2010 8:07am)

Clay P - you are a tool. FDIC has enough money on hand to cover less than .5% of the deposits it is "insuring". FDIC as with the rest of government is a sham. Do you really think people in places of power use it to protect your interests? Keep drinking the koolaid.

Wakeup: (February 12, 2010 8:01am)

Clay P - you are a tool. FDIC has enough money on hand to cover less than .5% of the deposits it is "insuring". FDIC as with the rest of government is a sham. Do you really think people in places of power use it to protect your interests? Keep drinking the koolaid.

Anonymous: (February 12, 2010 8:00am)

I DON'T JUST SMELL A RAT... REEKS OF A WHOLE NEST! FOLLOW THE DROPPINGS http://cjintx.wordpress.com/2010/02/08/i-dont-just-smell-a-rat-reeks-of-a-whole-nest-follow-the-droppings/

no smarts: (February 12, 2010 7:50am)

All I know is that if my bank wont help me out - when they come to take my home, it wont be worth a dime when I am through with it.

becca: (February 12, 2010 7:42am)

Can you YouTube this for more exposure? I want to embed this video in a few thousand places!

snowbound: (February 12, 2010 7:27am)

Deliquent homeowners who are left with the option of "short sale" versus a traditional home sale are NOT necessarily left owing a deficiency balance. The lender has the option to pursue collecting a deficiency balance. This fact is usually based on the documents submitted to the lender at a short sale request i.e, bank statements, employment verification and tax forms, hardships letters etc. substantiating current income. This video is very misleading and before passing on, please do yourself a favor and invest a few minutes of your time in researching "short sale". This is how "panic" and "non-truths" get distributed through the internet. NOT everything you see or read is fact worthy!

snowbound: (February 12, 2010 7:22am)

Deliquent homeowners who are left with the option of "short sale" versus a traditional home sale are NOT necessarily left owing a deficiency balance. The lender has the option to pursue collecting a deficiency balance. This fact is usually based on the documents submitted to the lender at a short sale request i.e, bank statements, employment verification and tax forms, hardships letters etc. substantiating current income. This video is very misleading and before passing on, please do yourself a favor and invest a few minutes of your time in researching "short sale". This is how "panic" and "non-truths" get distributed through the internet. NOT everything you see or read is fact worthy!

snowbound: (February 12, 2010 7:17am)

Deliquent homeowners who are left with the option of "short sale" versus a traditional home sale are NOT necessarily left owing a deficiency balance. The lender has the option to pursue collecting a deficiency balance. This fact is usually based on the documents submitted to the lender at a short sale request i.e, bank statements, employment verification and tax forms, hardships letters etc. substantiating current income. This video is very misleading and before passing on, please do yourself a favor and invest a few minutes of your time in researching "short sale". This is how "panic" and "non-truths" get distributed through the internet. NOT everything you see or read is fact worthy!

bobbyb: (February 12, 2010 7:11am)

Everyone talking about how the FDIC is funded with bank fees is missing the whole point here. Its like saying "It really didn't cost us anything to get screwed". This video is correct when it points out that the banks have NO INCENTIVE to refinance mortgages & don't care at what price a property is sold. It is also correct in pointing out that the original homeowner still has a debt even though the bank made out like a bandit. Oh, and those loan guarantees DO come from us, the taxpayers, through Fannie and Freddie. This is just one more case of orchastrated bank robbery going on in full daylight right in front of us yet again. Did we learn from the S&L bailout? No. Are we learning now? No. We are being ripped off by the same people again. Do not be fooled. Nobody in Washington or Wall Street cares about you, your home, or your family.

no"smarts": (February 12, 2010 7:07am)

Well then I'm looking for advice since I don't have the "smarts". I'm in a position of needing a modification, but I don't qualify (because nobody does), so do I let the mortgage company repo my home or is there another card to play?

envguy: (February 12, 2010 6:48am)

Why does anyone think that fees paid by a bank do not come from bank customers. Banks do not create money. Yes FDIC is supported by bank fees but those come from bank customers. So yes we are subsidizing this effort. If the banks did not have to subsidize so much of the effort perhaps various banking fees consumers are subject to would not be so high.

Clay P: (February 12, 2010 6:40am)

Quite disturbing on the face of it. But the video has one very important fact wrong, which really makes its whole point wrong. The taxpayers do not bail out banks taken over by FDIC. FDIC is financed by premiums paid by member banks, not by taxpayers. Its purpose is to insure depositors and thereby avoid panics that cause runs on banks and destabilize the banking system. The premiums give FDIC a fund with which to take over failing banks and make their depositors whole, if necessary, up to $100,000 (temporarily raised to $250,000). FDIC's usual practice when it takes over a failed bank is to sell its assets and liabilities to another bank, which then takes care of the depositors. Usually, the depositors just keep banking with the acquiring bank, but they don't have to do it. They can, if they wish, withdraw their deposits up to $100,000 or $250,000, as the case may be.

Clay P: (February 12, 2010 6:35am)

Quite disturbing on the face of it. But the video has one very important fact wrong, which really makes its whole point wrong. The taxpayers do not bail out banks taken over by FDIC. FDIC is financed by premiums paid by member banks, not by taxpayers. Its purpose is to insure depositors and thereby avoid panics that cause runs on banks and destabilize the banking system. The premiums give FDIC a fund with which to take over failing banks and make their depositors whole, if necessary, up to $100,000 (temporarily raised to $250,000). FDIC's usual practice when it takes over a failed bank is to sell its assets and liabilities to another bank, which then takes care of the depositors. Usually, the depositors just keep banking with the acquiring bank, but they don't have to do it. They can, if they wish, withdraw their deposits up to $100,000 or $250,000, as the case may be.

Clay P: (February 12, 2010 6:30am)

Quite disturbing on the face of it. But the video has one very important fact wrong, which really makes its whole point wrong. The taxpayers do not bail out banks taken over by FDIC. FDIC is financed by premiums paid by member banks, not by taxpayers. Its purpose is to insure depositors and thereby avoid panics that cause runs on banks and destabilize the banking system. The premiums give FDIC a fund with which to take over failing banks and make their depositors whole, if necessary, up to $100,000 (temporarily raised to $250,000). FDIC's usual practice when it takes over a failed bank is to sell its assets and liabilities to another bank, which then takes care of the depositors. Usually, the depositors just keep banking with the acquiring bank, but they don't have to do it. They can, if they wish, withdraw their deposits up to $100,000 or $250,000, as the case may be.

MadInPVBFL: (February 12, 2010 6:02am)

Shut Up Former Lo! If you're going to knock people for their poor grammer and spelling, start checking your own work and learn how to spell "professionsals"! Dumb Ass!

p: (February 12, 2010 3:19am)

The FDIC, with -$8 billion in balance in Q3 2009, is offering millions of ZERO interest NON-RECOURSE loans to private investors. Where does it get the money and how does this help protect trillions of our deposits? "Lennar Pays $243M for $3B of Distressed Commercial and Residential Loans from FDIC... The FDIC is retaining the remaining 60% equity interest and is providing $627 million of non-recourse financing at zero % interest for seven years." http://www.realestatechannel.com/us-markets/residential-real-estate-1/real-estate-news-lennar-corporation-fdic-loan-sales-bank-reo-properties-rialto-capital-advisors-stuart-miller-jeffrey-krasnoff-2009.php *imho*

p: (February 12, 2010 2:03am)

The FDIC is not just an insurer, it is also a federal regulator for Class NM banks that also failed. The Office of Inspector General has issued many reports criticizing OCC, OTS, the Fed, and the FDIC for poor supervision. The FDIC ended Q3 2009 with -$8 billion in balance. It is currently backing at least $3 trillion in deposits, $13 trillion in total assets, over $300 billion of bank bonds for Goldman Sachs, Citigroup, JP Morgan, etc through TLGP, and offering millions of non-recourse financing for private investors buying loan portfolios at dirt cheap price (eg the FDIC is loaning millions to Lennar at 0% interest for 7 years). This agency has failed its most important mandate: deposit protection. It is being run like AIG, except the agency is able to do whatever it wants, for instance, picking whom to save and whom to sacrifice, using the implicit guarantee of unlimited amount of our tax dollars. There is no transparency or consistency in its bank seizures and sales. *imho*

p: (February 12, 2010 1:58am)

The FDIC is not just an insurer, it is also a federal regulator for Class NM banks that also failed. The Office of Inspector General has issued many reports criticizing OCC, OTS, the Fed, and the FDIC for poor supervision. The FDIC ended Q3 2009 with -$8 billion in balance. It is currently backing at least $3 trillion in deposits, $13 trillion in total assets, over $300 billion of bank bonds for Goldman Sachs, Citigroup, JP Morgan, etc through TLGP, and offering millions of non-recourse financing for private investors buying loan portfolios at dirt cheap price (eg the FDIC is loaning millions to Lennar at 0% interest for 7 years). This agency has failed its most important mandate: deposit protection. It is being run like AIG, except the agency is able to do whatever it wants, for instance, picking whom to save and whom to sacrifice, using the implicit guarantee of unlimited amount of our tax dollars. There is no transparency or consistency in its bank seizures and sales. *imho*

awakened_soul: (February 12, 2010 1:55am)

Who knows if Michael Moore will get this but maybe if enough people send the same message,,, http://www.michaelmoore.com/submit

awakened_soul: (February 12, 2010 1:09am)

ATTENTION EMAIL ADDRESS UPDATE: LESLIE OR THATCHER and fellow bloggers The stu@glennbeck.com email isnt going thru,,,so please send to me@glennbeck.com

just another pee-on but one with some brains: (February 11, 2010 11:32pm)

First of all, these is some missunderstanding here, the FDIC is an insurance company providing all the little people like us with a guarantee that our money deposit in the bank will be there when they want it. The premium is paid by the banks not the tax payers. I was under the impression it was tax dollars too, and now that I work for the FDIC indirectly, I realized I was not finally getting back some of my tax dollars but instead some of the Banks insurance premiums. The FDIC liquidates what ever assets are seized at the closing and they do not close banks the supervising agencies do and then appoint them as a receiver. Inorder to continue to insure deposits they must liquidate. Otherwise kiss your money in the bank good bye. Do a little more research yourself by going to FDIC.gov and reading up on what they do and why they are in existance.

just another pee-on but one with some brains: (February 11, 2010 11:27pm)

First of all, these is some missunderstanding here, the FDIC is an insurance company providing all the little people like us with a guarantee that our money deposit in the bank will be there when they want it. The premium is paid by the banks not the tax payers. I was under the impression it was tax dollars too, and now that I work for the FDIC indirectly, I realized I was not finally getting back some of my tax dollars but instead some of the Banks insurance premiums. The FDIC liquidates what ever assets are seized at the closing and they do not close banks the supervising agencies do and then appoint them as a receiver. Inorder to continue to insure deposits they must liquidate. Otherwise kiss your money in the bank good bye. Do a little more research yourself by going to FDIC.gov and reading up on what they do and why they are in existance.

just another pee-on but one with some brains: (February 11, 2010 11:23pm)

First of all, these is some missunderstanding here, the FDIC is an insurance company providing all the little people like us with a guarantee that our money deposit in the bank will be there when they want it. The premium is paid by the banks not the tax payers. I was under the impression it was tax dollars too, and now that I work for the FDIC indirectly, I realized I was not finally getting back some of my tax dollars but instead some of the Banks insurance premiums. The FDIC liquidates what ever assets are seized at the closing and they do not close banks the supervising agencies do and then appoint them as a receiver. Inorder to continue to insure deposits they must liquidate. Otherwise kiss your money in the bank good bye. Do a little more research yourself by going to FDIC.gov and reading up on what they do and why they are in existance.

just another pee-on but one with some brains: (February 11, 2010 11:17pm)

First of all, these is some missunderstanding here, the FDIC is an insurance company providing all the little people like us with a guarantee that our money deposit in the bank will be there when they want it. The premium is paid by the banks not the tax payers. I was under the impression it was tax dollars too, and now that I work for the FDIC indirectly, I realized I was not finally getting back some of my tax dollars but instead some of the Banks insurance premiums. The FDIC liquidates what ever assets are seized at the closing and they do not close banks the supervising agencies do and then appoint them as a receiver. Inorder to continue to insure deposits they must liquidate. Otherwise kiss your money in the bank good bye. Do a little more research yourself by going to FDIC.gov and reading up on what they do and why they are in existance.

CAJeffO: (February 11, 2010 11:11pm)

Leslie from Denver -- The email you posted? stu@glennbeck.com THAT EMAIL has been "Temporarily Suspended" give me another one

bunkermunk: (February 11, 2010 10:59pm)

You guys could really leverage up your impact by starting a Youtube channel for your videos.

Billy: (February 11, 2010 10:33pm)

Fire them all... Vote

Billy: (February 11, 2010 10:28pm)

Fire them all... Vote

Billy: (February 11, 2010 10:24pm)

Fire them all... Vote

Billy: (February 11, 2010 10:19pm)

Fire them all... Vote

Billy: (February 11, 2010 10:15pm)

Fire them all... Vote

Billy: (February 11, 2010 10:10pm)

Fire them all... Vote

Billy: (February 11, 2010 10:05pm)

Fire them all... Vote

Billy: (February 11, 2010 10:01pm)

Fire them all... Vote

Billy: (February 11, 2010 9:56pm)

Fire them all... Vote

Billy: (February 11, 2010 9:52pm)

Fire them all... Vote

Billy: (February 11, 2010 9:47pm)

Fire them all... Vote

Jon: (February 11, 2010 9:28pm)

I received an approval for a OWB on 2/8/10, and pulled one from November of 09. Let's see if I did the math right... 1.) $175,000 owed - ss net $80,000 = "loss" of $95,000, *.8 = $76,000 FDIC check to OWB. So $76,000 + $80,000 - $122,500 = $33,500 to OWB. 2.) $360,000 owed - ss net $317,000 = "loss" of $43,000, *.8 = $34,400 FDIC check to OWB. So $34,400 + $317,000 - $252,000 = $99,400 to OWB. Well...at least on neither of these did the bank ask for contribution from the homeowner, and both were exempt from paying taxes on the forgiven debt. Guess I facilitated over $100k of FDIC money to OWB, but I did have a fiduciary responsibility to the homeowners who were over a year behind on each, and do not to any of you...sorry guys! Those homeowners did make out like bandits though, living in a house they can't afford, a good amount with no rent, and won't have to pay back a dime for it, other than in taxes like the rest of us. I guess I can relate to Nick Nailer in Thank You for Smoking.

Anansi: (February 11, 2010 9:15pm)

Someone please send this to Michael Moore !!! I wish I knew how to get a hold of him !!

jambo99: (February 11, 2010 9:04pm)

Ladies and gentlemen I think the guys who did this video should send 535 copies to congress and 5 to the administration. Great work guys... I hate to be the bearer of bad news but this has happened at many banks. Bank America, Citi and a substantial number of those who took tarp funds. The TARP funds were to be used to prop up the balance sheets of many banks with toxic assets. Where did the TARP funds come from? The tax payer dollars! Now many of these banks, bought other banks just as depicted in the video instead of lending money to deserving businesses and folks with good credit. We had a mortgage lender with 5 billion in assets and about 200M in toxic loans. The Feds came in, seized the company and within 3 days had Bank of America own the remaining assets. My former bank Regions took 5B in tarp funds and stopped lending. I think all of DC is so ignorant or corrupt we should replace them all except possibly Scott Brown, he has not had time to become corrupt as he hasn't been there

Clay_Kime: (February 11, 2010 8:56pm)

Dear tender hearted DBW: Could I suggest Colossians 1:15. It's already done, before we were ever here to consider it.

Leslie in Denver: (February 11, 2010 8:49pm)

I am the one who sent this info to TBWS. I have gotten over 1,000 emails with this continuing discussion. I sent this info to 15 of 23 members of the Senate Banking & Finance Committee - AND, to our fearless leader, Pres. Obama. And to all the major media outlets (ABC, NBC, CBS, CNN, FOX and all the local affiliates.)Not even Beck has replied. I have not gotten a single, solitary reply! NOT ONE! Do you think there's a conspiracy going on? Ya think? Maybe? Hah! THE FLEECING OF AMERICA IS ALIVE AND WELL. I am so disgusted I could vomit.

Thatcher's Journal: (February 11, 2010 8:31pm)

In response to Leslie in Denver's post: I sent your post and the link to this video to Stu, the Executive Producer and Head Writer for the Glenn Beck Program. EVERYONE ELSE DO THE SAME - USE THE SUBJECT LINE: "this woman's voice should be heard - expose this please!!!" Email addy: stu@glennbeck.com They get a lot of emails but the Beck program wants to showcase stories like this. If they get 100 emails with the same subject they'll respond; 100 is more than a coincidence and none of them will be forwards. If you want to help, copy Leslie's post, use the same subject line, and urge them to watch the video and make this voice heard (in 2 sentences, they won't read more than that). Freedom + Internet = ability....but only if we use it.

Clay_Kiime: (February 11, 2010 8:15pm)

Go Jambo99, Leslie and Anonomal! YourDeadMeat69 failed the math test. You missed the fraud. The servicer/investor was "made-whole" . . . they experienced no loss. Aside from the questionable profit from the transaction, the $75K note was little more than a scam on theh homeowner that put the homeowner in high risk of future default. Do note payments received go to the investor (owner of the loan)? That remains unclear. The American public is being "scammed" plain and simple. If that's acceptable to you, then OK, for the rest of us, we have work to do. Leslie has made a great start. You go girl! Let's follow up. I have already forwaded this to senior hill staffers that I know. Helps to be in the capital's suburbs, I hope.

alan riot: (February 11, 2010 8:13pm)

When do the riots start?

Clay_Kime: (February 11, 2010 7:47pm)

Jon, if you had taken a bit more time to do your research, you would also know that I also own www.NoForeclosureFor.Me and www.PlanToMove.com. Your conclusions are false. IndyMac/OWB is not a client. They have been the subject of numerous short sale transactions. I am enlightened by the video, not you or your inuendos. I find your comments offensive and basically uninformed. Have a good life!

Jon: (February 11, 2010 7:34pm)

I am just shocked that everyone else is so shocked by this, not condoning it. This happens all of the time, none is acceptable! Don't we have no-bid contracts, closed door auctions, pallets of billions of dollars of tax payer cash that went missing in Iraq, the repeal of Glass-Steagall, bail-out of AIG, elected officials that do not believe in evolution, etc. etc. to ad nauseum? I thought what was worse was in 2008 when Indymac charged people non-refundable ILLEGAL (in MA anyhow) upfront short sale fees. How is it to your shareholder/investor's benefit to risk mitigating thousands of dollars of loss to pocket an extra $300 on the side. And, Clay, your site is ownedbythebanks.com. You get more business if the banks foreclose as opposed to short sale or chapter 7, is that right? You get paid with tax-payer dollars from the sweetheart deal! "No missed incentives/bonuses for our clients - ever . . . Personally guaranteed?" OWB/Indymac ever one of your clients? People in glass houses, Clay.

Anonomal: (February 11, 2010 7:27pm)

The FDIC cut the exact same deal with Compass Bank (BBVA Compass). The FDIC shut down Guaranty Bank and sold the assets to Compass in 2009. The FDIC agreed to reimburse Compass up to 80% any mortgage losses Compass incurs--and the agreement is in effect for 10 years!!!!!!

yourdeadmeat69@yahoo.com: (February 11, 2010 7:18pm)

The mortgage holder still made out like a bandit even at owing $75K. The deal allowed him to be forgiven 140K that was given to the bank by the FDIC. I don't think it has been discussed, but many banks in recourse states, when you do a short sale, can come after you years later for the difference. What was that--$486K-$241 or $245 the guy still "owed" in recourse states hanging over his head? And that $170K the mortgage holder "made" on the deal isn't taxable to him. No no, explain ALL of it before you get all starry eyed, the homeowner made out pretty good. Maybe he could have done better than $75K with negotiation, but, hey, he did pretty damn good.

Anonomal: (February 11, 2010 7:17pm)

I happen to know Compass Bank (BBVA Compass) got the exact same deal when they bought Guaranty Bank from the FDIC. The FDIC will reimburse Compass up to 80% of any mortgage losses they incur.

DBW: (February 11, 2010 7:15pm)

I knew that Henry Paulson robbed the taxpayes of America. However, I did not know all of the players or the reason behind the deal. How many elected representatives in Congress has stock in these banks? And did President Barack Hussein Obama know when he raised the FDIC insurance to protect the banks? So now "we the people" are governed by the best and slick of thieves. Only the Lord Jesus Christ can change the direction of this global thief against the middle class all around the world. Let us all pray on one accord to the Lord Jesus Christ that "He will judge these thieves hard and quick for the world sake." AMEN! The last time I checked this world belonged to the Lord not to the wicked. Thank God it is written "Thou shall not commit murder."

DBW: (February 11, 2010 7:09pm)

I knew that Henry Paulson robbed the taxpayes of America. However, I did not know all of the players or the reason behind the deal. How many elected representatives in Congress has stock in these banks? And did President Barack Hussein Obama know when he raised the FDIC insurance to protect the banks? So now "we the people" are governed by the best and slick of thieves. Only the Lord Jesus Christ can change the direction of this global thief against the middle class all around the world. Let us all pray on one accord to the Lord Jesus Christ that "He will judge these thieves hard and quick for the world sake." AMEN! The last time I checked this world belonged to the Lord not to the wicked. Thank God it is written "Thou shall not commit murder."

BOB: (February 11, 2010 7:05pm)

Hi Leslie! I'm the guy who wrote the original blog on this back in September/2009, and I'm so glad that you sent it to these guys. When I wrote the blog, it started to pick up traction, then slowly died out. I sent it to every major media outlet, government leader, etc. that I could think of, but to no avail. Business Week magazine actually ran an article in October/2009 on it, but failed to get into the details that these guys did. This video has brought it back to life, and hopefully the mainstream media will take it to the next level this time around. I can't tell you how many emails I've received from people all over the country, expressing thanks (and frustration). I just wanted to take a moment and thank you as well. Keep up the fight!

DBW: (February 11, 2010 7:04pm)

I thank God for raising you two Americans up to tell the truth to the American Citizens. You see I knew that Henry Paulson robbed the taxpayes of America. However, I did not know all of the players or the reason behind the deal. How many elected representatives in Congress has stock in these banks? And did President Barack Hussein Obama know when he raised the FDIC insurance to protect the banks? So now "we the people" are governed by the best and slick of thieves. Only the Lord Jesus Christ can change the direction of this global thief against the middle class all around the world. Let us all pray on one accord to the Lord Jesus Christ that "He will judge these thieves hard and quick for the world sake." AMEN! The last time I checked this world belonged to the Lord not to the wicked. Thank God it is written "Thou shall not commit murder."

Clay_Kime: (February 11, 2010 6:53pm)

Go Leslie! And thanks RG. I was feeling a bit lonely. Let's rock! Clay

rg: (February 11, 2010 6:47pm)

Clay: As a Broker myself, your your post is the first I've seen (and I've been following this for a couple of days) that make total sense! Some choose to not only hide their head in the sand, but defend the actions of these scumbags that are in charge of our economic future (without understanding the video and/or not taking the time to look through the FDIC documents). Finally, someone gets it!

Clay_Kime: (February 11, 2010 6:38pm)

Thanks for the expose'. The rest of you don't seem to understand a word of what this means. Jon, I truly hope you are NOT a realtor. An if you are, I will relish your prosecution for incompetnence and unworthiness. This has noting to do with understanding short sales, about which I am an expert. This is about corruption at the highest levels, with ourt clients and theh american taxpayers as the only true victims. Wake up and smell the coffee.

Jon: (February 11, 2010 6:23pm)

http://www.irs.gov/individuals/article/0,,id=179414,00.html

top5ray: (February 11, 2010 6:17pm)

The federal government is also having the bank approving the short sale issue a 1099 to the defaulting homeowner for the delta between the original loan amount and the short sale price. Have a friend that just got one for $400K as that was the difference between the $900k loan and the $500k short sale price.

top5ray: (February 11, 2010 6:12pm)

The federal government is also having the bank approving the short sale issue a 1099 to the defaulting homeowner for the delta between the original loan amount and the short sale price. Have a friend that just got one for $400K as that was the difference between the $900k loan and the $500k short sale price.

Destiny Real Estate: (February 11, 2010 6:09pm)

Thanks for making this crystal clear, this is going to help me negotiate a short-sale that is stalled.

otter: (February 11, 2010 6:05pm)

Jon...I LOVE your post this afternoon. Because it's EXACTLY what has happened to me, today as a matter of fact. Foreclosure yesterday, living rent free for the past 10 mos. and filing bankruptcy in the next two weeks because NO ONE WOULD MODIFY MY LOAN because of job loss. wow, what a great country we live in.

Jon: (February 11, 2010 5:59pm)

Clay, you do not understand shorts. A short sale can have your debt "paid settled" with you walking away clean (no prom note) or leave you with an unsecured note that is negotiable (saw Chase HELOC offer 25% of note for lien & deficiency release, GMAC 20% without conveyance) and does not preclude you from filing chapter 7 bankruptcy. Also, the terms of the deal between OWB and the FDIC is only for the mortgages that Indymac was the "investor" as opposed to the "servicer." Short sales and loan mods are not law, they are negotiations. The people you talk to at the bank are not well trained, and are usually given guidelines or script to go by. I had a guy in OWB's foreclosure department not know that chapter 7 means you do not owe the deficiency. http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html. Is OWB's loss calculated on the auction price or REO sale price? What the video shows is "bad" but there's worse! Any word on AMTrust->FDIC->BofNY yet? Bueller? Bueller?

PapaBear: (February 11, 2010 5:42pm)

Small wonder that IndyMac/OneWest Bank has the most efficient short sale approval process in the country...I am a RE "Broke"r working the short sale inventory and this AhhHA does not make me feel warm & fuzzy in the least

jpys: (February 11, 2010 5:36pm)

Are we ready to get rid of the Federal Reserve, Freddy Mac, Fannie Mae, FDIC and lop off the hands of all other banksters among us yet?

Sam: (February 11, 2010 5:19pm)

That explains why Indy Mac won't talk to me about refinancing my loan...and I'll probably lose my property

Clay_Kime: (February 11, 2010 5:09pm)

I haven't read to the beginning of the thread, but those commenting of late have clearly missed the point of this video/report. This is one of the most outrageous corruption schemes ever concocted and exposed. Go back and watch the video, take notes if you must until you get it, again and again. If you are doing short sales and don't get the implication of this, you have the moral obligation to resign from real estate, because you must also fail to understand "fiduciary responsibility" to your clients. Please, every one of you . . . send this link to every Federal, State and Local legislator you have in your jurisdiction. Don't forget our fearless leader, president Obama. Regards, Clay

Jon: (February 11, 2010 3:38pm)

Being one of the "professionsals" I would like to take the time to point out the irony... My opinion, as concise as I can make it: Approach this like the banks do: look at your options in terms of cold, hard, math. If the house (house, not home) is worth less than what is owed on it perhaps keeping it is not the best option. Perhaps not making your mortgage payment, living "rent free" until the bank forecloses, make them offer you cash for keys, file chapter 7 bankruptcy to avoid deficiency if applicable, then rent until you can get a loan again is a better option. That is exactly what the banks would do in your shoes. Married with only your name on the mortgage? Guess which lucky spouse will be on the next mortgage before your bankruptcy clears up! The market will correct when we're on a level playing field. Folk can invest in gold, or widgets, or wherever they need to park their wealth when the dollar tanks. T-bills to the Chinese then inflation sounds okay to me! Fight back.

valley girl appraiser: (February 11, 2010 2:44pm)

I watch y'all daily...duh. Imagine my shock & surprise when this webcast showed up in my email...after having been forwarded by at least a few dozen people around the great state of Texas. Great job, guys! To former LO: obviously u havent been on the bloggosphere very long to know that most peeps that blog with NE regularity use shorthnd & completely disregard grammar etc. It's not englsh class....it's a forum.. don't like..then leave. BYE NOW!

InteractiveLawCenter.com: (February 11, 2010 2:36pm)

MadlnPBVFL - You did a great job getting contact information for actual people at OWB. I would like to learn more about your experience. Please submit an inquiry form at: http://www.CaliforniaForeclosureDefense.com

former lo: (February 11, 2010 2:22pm)

You people are, for the most part, professionsals. You have knowledge about this industry. Do any of you have any public speaking/writing skills? Trying to follow this discussion is unbelievably difficult...did you people deal with "average joe" and/or his family? If you did, you must have failed miserably. I can spit out the jargon as well as anyone, but reading these posts is something that should be on a late-night show......if you have a point, make the effort to get it across in a way that others can "wade" through....having to try and figure out your bad spelling, poor grammar and use of unfamiliar terms only complicates whatever point you're trying to make. Did any of you people ever have to take BASIC English in school?

former lo: (February 11, 2010 2:18pm)

You people are, for the most part, professionsals. You have knowledge about this industry. Do any of you have any public speaking/writing skills? Trying to follow this discussion is unbelievably difficult...did you people deal with "average joe" and/or his family? If you did, you must have failed miserably. I can spit out the jargon as well as anyone, but reading these posts is something that should be on a late-night show......if you have a point, make the effort to get it across in a way that others can "wade" through....having to try and figure out your bad spelling, poor grammar and use of unfamiliar terms only complicates whatever point you're trying to make. Did any of you people ever have to take BASIC English in school?

former lo: (February 11, 2010 2:14pm)

You people are, for the most part, professionsals. You have knowledge about this industry. Do any of you have any public speaking/writing skills? Trying to follow this discussion is unbelievably difficult...did you people deal with "average joe" and/or his family? If you did, you must have failed miserably. I can spit out the jargon as well as anyone, but reading these posts is something that should be on a late-night show......if you have a point, make the effort to get it across in a way that others can "wade" through....having to try and figure out your bad spelling, poor grammar and use of unfamiliar terms only complicates whatever point you're trying to make. Did any of you people ever have to take BASIC English in school?

former lo: (February 11, 2010 2:10pm)

You people are, for the most part, professionsals. You have knowledge about this industry. Do any of you have any public speaking/writing skills? Trying to follow this discussion is unbelievably difficult...did you people deal with "average joe" and/or his family? If you did, you must have failed miserably. I can spit out the jargon as well as anyone, but reading these posts is something that should be on a late-night show......if you have a point, make the effort to get it across in a way that others can "wade" through....having to try and figure out your bad spelling, poor grammar and use of unfamiliar terms only complicates whatever point you're trying to make. Did any of you people ever have to take BASIC English in school?

tomshup: (February 11, 2010 2:10pm)

Anyone who relies on wikipedia for the innerworkings of the FDIC is a frigging moron! Pay attention to the banking pros whose comments are here and you may learn something! TAXPAYERS are on the hook for the FDIC and all the shenanigans between NYC and the Beltway buffoons (Congress). TARP, GM, CHRYSLER, AIG, etc.

Jon: (February 11, 2010 2:07pm)

Emotion has no place in this equation. I remember hearing a piece on NPR between a bank exec and an investigative journalist, and the bank exec said something to the effect of "don't blame a shark for being a shark." We all had a choice; a dollar is a vote. By doing business with a company you are condoning/supporting their practices. It is all well and good to complain on some blog, but supporting only "good" businesses would be a better use of time! If you have a problem with your representive voting on legislation they do not understand, what are you doing about it? We already know that less regulation is not the answer, as evinced by The Jungle, sugar barons, and banks being able to leverage well above $12 of liability to $1 of asset. Three phrases I can think of are fitting: 1.) if you can't beat them (wealthy elite), join them; 2.) Caveat Emptor; 3.) if you look around the table and don't know who the sucker is...

LORGRDOTCOM: (February 11, 2010 1:55pm)

OMG that is TRULY messed up!

Jon: (February 11, 2010 1:40pm)

Redhot, The 1099 for "phantom profits" is only applicable, for the time being, to refi's where the cash didn't go back into the house, greater than 4 unit multi-s, and not primary residences (I think). As an honest question, how many people were upset in 2004 when loans came easy and the wine flowed like water? This current situation is the hangover. Banks are businesses. Who is at fault, the banks who offered dangerous products, or the person who "sign on the line that is dotted?" We incarcerate drug dealers as well as drug users, if that is a clue. Have no illusions (delusions?), loss mitigation is the name of the game. Loan mods and short sales are only on the table because sometimes they can recoup more money...helping people would be a PR fringe benefit. When values were still (artificially) increasing short sales were even less often approved, and loan mods were limited to you paying 1/3 total arrears with the rest added to your principal balance.

Esquire: (February 11, 2010 1:20pm)

The only thing that this video (below) does not include is that when the FDIC sold all of the assets to OneWest Bank it retained all of the liabilities. What this means is that if Indy Mac had any obligations to homeowners for Truth in Lending Act Violations Fraud, or otherwise, then those are wiped clean by the FDIC because Congress withdrew jurisdiction from all courts to restrain or affect the FDIC as Receiver from exercising its statutory powers and functions 12 U.S.C. § 1821(j). The FDIC’s powers as a receiver are sufficiently broad so it can take all actions necessary to resolve the problems of a failed financial institution. Sahni v. American Diversified Partners, 83 F. 3d 1054, 1058 (9th Cir. 1996). Ten U.S. Courts of Appeals, in at least 25 separate decisions, have held that section 1821(j) means that courts lack jurisdiction to grant any form of relief that would restrain or affect the Receiver’s exercise of its statutory powers and functions. Bottom Line no Homeowner redres

Esquire: (February 11, 2010 1:13pm)

The only thing that this video (below) does not include is that when the FDIC sold all of the assets to OneWest Bank it retained all of the liabilities. What this means is that if Indy Mac had any obligations to homeowners for Truth in Lending Act Violations Fraud, or otherwise, then those are wiped clean by the FDIC because Congress withdrew jurisdiction from all courts to restrain or affect the FDIC as Receiver from exercising its statutory powers and functions 12 U.S.C. § 1821(j). The FDIC’s powers as a receiver are sufficiently broad so it can take all actions necessary to resolve the problems of a failed financial institution. Sahni v. American Diversified Partners, 83 F. 3d 1054, 1058 (9th Cir. 1996). Ten U.S. Courts of Appeals, in at least 25 separate decisions, have held that section 1821(j) means that courts lack jurisdiction to grant any form of relief that would restrain or affect the Receiver’s exercise of its statutory powers and functions. See. E.g., Tri-State Hot

Redhot: (February 11, 2010 11:47am)

And the short sale seller, the previous owner of the home has to paid taxes on a 1099 they will get from the short sale. Thats crap

Benny: (February 11, 2010 11:44am)

You can sum up what's wrong with this country in just a few words...greedy corporate executives, corrupt politicians, thieving bankers, and Wall Street whores!

Clows to the left Jokers to the Rigth: (February 11, 2010 11:33am)

I think you have a very uninformed view of illegal immigration, most 'illegal' immigrants are in possession of fradulent documents get paid pay checks from which the same taxes you and I have withdrawn. If you want to stop illegal immigrants stop the people hiring them...if you're all about the 'free market' illegal immigration is the ultimate free market solution. And ACTUALLY and FACTUALLY the most effective deterent to illegal immigration has been the Recession.

Read Wikipedia: (February 11, 2010 11:26am)

The Truth and Esquire are about the only people right on this issue. Being a 'taxpayer' is a function you fufil when you PAY TAXES. It's not a title like citizen. When you put money in a bank this is you acting individually and privately. The Banks then pay an insurance premimum, true like most insurance it is a rip off in the short run. However, if your bank fails, which few do, but THEY DO. You're going to be happy the FDIC is there to safeguard your money, yes with money from an insurance pool. Just like if you get in an accident or get sick, yes your expenses will be covered by an insurance pool, ie a bunch of people who aren't you! To the extreme you people are taking it, then even private insurance is socialized medicine! Do yourselves a favor and read a wikipedia arcticle before you spout off what you thought up on the john this morning. Of all the sh#t going down in this country right you dumb***es are worried about the Godd*amn FDIC!!!!!!!!!!!!!!!!!!!!

sremains: (February 11, 2010 11:15am)

Hatnem, couldn't agree more. Check out the FairTax.org--it tackles many of our problems head on. It calls for the elimination of all personal, inheritance, corporate, and capital gains taxes--essentially all taxes--and its stead, a national sales tax. All illegal aliens will be paying into the system under this design, and if they want their poverty level equalizer, they'll have to become legal to get it. Check it out. It's worth getting behind. There are very few good ideas circulating in Washington right now, but this is one of them.

Esquire: (February 11, 2010 11:02am)

This is why the public (& government) needs to stay out of banking and insurance. Neither understands what they are talking about. FDIC is a QUASI-GOVERNMENT agency. If it goes under then it does so on its own UNLESS some idiot president bails them out. FDIC is an insurance company. NO INSURER can survive by putting premiums in a bag. Yes they invest in treasuries which is the same as handing the money over to the government in exchange for an IOU. But, if they buy stocks, you people will say they are in bed with Wall Street. They need investments w/ suitable returns & low risk. The so called sweetheart deal is what the FDIC does. Banks rarely "go under." FDIC negotiates sales of the bank or its assets & deposits. Unless the purchasing bank fails this shouldn't be a problem & will be a lot cheaper than paying depositors. People need to quit LOOKING for conspiracies under every rock and either learn & understand what they are talking about or keep silent.

Esquire: (February 11, 2010 10:58am)

This is why the public (& government) needs to stay out of banking and insurance. Neither understands what they are talking about. FDIC is a QUASI-GOVERNMENT agency. If it goes under then it does so on its own UNLESS some idiot president bails them out. FDIC is an insurance company. NO INSURER can survive by putting premiums in a bag. Yes they invest in treasuries which is the same as handing the money over to the government in exchange for an IOU. But, if they buy stocks, you people will say they are in bed with Wall Street. They need investments w/ suitable returns & low risk. The so called sweetheart deal is what the FDIC does. Banks rarely "go under." FDIC negotiates sales of the bank or its assets & deposits. Unless the purchasing bank fails this shouldn't be a problem & will be a lot cheaper than paying depositors. People need to quit LOOKING for conspiracies under every rock and either learn & understand what they are talking about or keep silent.

hatnem: (February 11, 2010 10:26am)

We all need to take a breath here. Washington is broke, and nothing will change until WE affect a change. The Madwoman (Pelosi) wants to give ILLEGAL ALLIENS free healthcare, education, and now Social Security benefits. Even though they are here ILLEGALLY and have never paid into the system. And who's footing that bill? And while they are here, we're likely paying for there comfy life with welfare, food stamps, medical benefits, fuel assistance, unemployment benefits, etc. While Middleclass Joe Taxpayer works hard, pays for everything and still tries to make ends meet for himself. It's time we take back America. We can start by cleaning house in the beltway.

clark: (February 11, 2010 10:19am)

I insure a small regional bank in Wisconsin. They told me their FDIC premium was going from $35,000 in 09 to $$700,000! That's a 2000% increase! And you're right, we all pay.

Get It Right: (February 11, 2010 10:15am)

To'The Truth'. When FDIC head Shelia Bair says her agency might have to bolster the FDIC's insurance fund with Treasury borrowings to pay for the new spate of bank failures, a lot of us, this 40-year banking veteran included, assumed there's an actual FDIC fund in need of bolstering. We were wrong. As a former FDIC chairman, Bill Isaac, points out here, the FDIC Insurance Fund is an accounting fiction. It takes in premiums from banks, then turns those premiums over to the Treasury, which adds the money to the government's general coffers for "spending . . . on missiles, school lunches, water projects, and the like." The insurance premiums aren't really premiums at all, therefore. They're a tax by another name. http://seekingalpha.com/article/95129-fdic-insurance-fund-it-doesn-t-actually-exist

Anonymous: (February 11, 2010 10:09am)

To the COMPLETE IDIOT at 9:44 am....... Where do you think the funds come from that the banks PAY into the FDIC so that there is a pool of money to "cover losses"......ever thought that those "FEES" YOU and everyone else pay on your bank statements would ever go towards the any of the "COSTS" that banks incur (such as the nifty FDIC insurance premiums they pay out)? Get a clue, the end consumer ALWAYS pays the bill no matter WHAT the issue, ALL costs are ALWAYS passed on to the consuder including all TAXES businesses are "charged". Business don't PAY taxes expenses or "fees", they COLLECT them from you. Wise up and understand how things work in your evey day life and just MAYBE you might get educated enough to understand why people are so ANGRY at our state of financial affairs in this country!

gravey: (February 11, 2010 10:05am)

"The Truth" you are mistaken. if you knew the history of the Federal Reserve and the FDIC then you would know the burden falls onto the taxpayer. The Treasury has no money. so the treasury goes down to the federal reserve and takes out a loan and who pays that off? you and me numbnutz. do a little research + diligence and maybe you will find the truth.

Get It right: (February 11, 2010 10:01am)

A Reply to 'The Truth'. When FDIC head Shelia Bair says her agency might have to bolster the FDIC's insurance fund with Treasury borrowings to pay for the new spate of bank failures, a lot of us, this 40-year banking veteran included, assumed there's an actual FDIC fund in need of bolstering. We were wrong. As a former FDIC chairman, Bill Isaac, points out here, the FDIC Insurance Fund is an accounting fiction. It takes in premiums from banks, then turns those premiums over to the Treasury, which adds the money to the government's general coffers for "spending . . . on missiles, school lunches, water projects, and the like." The insurance premiums aren't really premiums at all, therefore. They're a tax by another name. http://seekingalpha.com/article/95129-fdic-insurance-fund-it-doesn-t-actually-exist

Hammered in SouthWest Florida: (February 11, 2010 10:00am)

i have the ability to pay my mortgage now and i cant get INDYMAC to agree to anything. i was not making any money before but i am making enough now and they just keep saying No to me.

hatnem: (February 11, 2010 9:56am)

boxsox fan.....please, get a clue. Obviously like me you're from Boston. You just put a black mark on the city with your comments. The banks have a very sweet deal here thanks to the FDIC, Fed guarantees, and Joe Taxpayer. The banks were pumped with cash from TARP funds to sell their MBS paper and promote lending, but are not lending to push the economy forward. And now the Feds are trying to encourage them to continue to hold more money in reserves rather than lend by increasing the excess reserves interest rate it (WE) pay the banks. The MBS market is a mess. The banks will take some up-front losses. A lot of people will be forced into a foreclosure and lose their homes. And the taxpayer has to foot the bill for all of it. In the end banks will PROFIT from all this, not suffer any losses.

MT Chair: (February 11, 2010 9:56am)

.... Add into the math per se the upfront closing costs on the original loan, the number of years of amortized payments BEFORE the shortsale/foreclosure... money, money, money!! The oldest rule in real estate - lend on a property, take back the property then lend on it again. - $$$$

The Truth: (February 11, 2010 9:50am)

Why don’t you, nut jobs read the FDIC’s Shared Loss Agreement with OneWest and the Master Agreement? You’ll find that OneWest assumes the first 20% of losses. Even if the FDIC does eventually share losses, they are based on the portfolio, and not on individual loans. So, the agreement does not affect OneWest’s decision on a loan by loan basis. OneWest has no incentive to pass up any cost-saving opportunities. As of today, the FDIC has not paid a penny to cover Shared Losses from this deal with OneWest. Get well, soon.

The Truth: (February 11, 2010 9:44am)

These two s*#t stirrers in the video are wrong. The taxpayer does not pay for FDIC losses, and the FDIC is not funded by the public. FDIC is an insurance pool - it’s collects premiums from its member banks. The FDIC pays for its own losses with their own funds collected from their members. The insurer (FDIC) covers losses when something bad happens. When the FDIC needs to BORROW money, they borrow from the US Treasury. Over time, they pay the Treasury back from the fees they collect.

Paula: (February 11, 2010 9:41am)

Is this really "new" news? http://preview.tinyurl.com/yk99gy4

James: (February 11, 2010 8:08am)

In addition to the corruption in the housing loan market, look at the corruption in the commercial market and how it has impacted the construction industry employment statistics. The flow-down from every corrupt decision by these banks is tremendous, and has impacts that most bankers and attorneys are either ignorant of, don't care, or are benefiting from. See the recent case of Reger Development v. National City Bank (another unethical bank) and others that reek of corruption an insider bank fraud.

MadInPVBFL: (February 11, 2010 8:05am)

bk: Thanks for the response. I live in Florida and I purchased the home in Jan 2005 for $165K with a conventional loan with 20% down. I refi'd in 2007 into an ARM to take cash out to pay off credit cards. I have put more than $60K of my own money into the house since then. On Dec 3rd, OWB sent me a letter to validate my debt. It says "If you dispute the debt in writing....the law requires us to stop our collection efforts (through litigation or otherwise) until we mail the info to you". I responded in writing in the timeframe permitted but they still foreclosed on Dec 24th! This is when their attorneys got involved which caused the additional fees. I'm not an attorney but I understood that to mean that I would have some time to get my repayment plan together.

bk: (February 11, 2010 7:10am)

Re:MadInPVBFL. Depending on the state you live in and the loan purpose (purchase, refi, cash-out) the lender may be able to foreclose and sue under the note. I'd suggest that you try to make up the full amount for reinstatement and then talk to an attorney. In most states, lenders need to demonstrate that late fees, attorney fees, etc are "reasonable."

jambo99: (February 11, 2010 7:07am)

bosoxfan, taxedtodeath has it right, you are so far off base you should be sent to the loony house. Like TTD, I am a small businessman that is TTD. Last year I paid nearly $750K on Fed Income tax. And over 100K in local tax. Guess what, some portion of my hard earned tax dollars went to bail out the banks and the failed stimulus that created no jobs but may have saved a few. I have a group of physicians who want to build a new building, they need in addition to the construction loan a $500K loan to operate on while the government holds their money for 120-150 days. That is 40K each to personally guarantee. Guess what, they cannot get a loan. There are no loans for small business, with small business creating 90% of the jobs and paying 70% of the taxes how do you propose to get the economy going again? Your comment, We have have put China's financial system on the brink of collapse is nonsense. China owns us. While a great amt of $$ the US is not a drop in the bucket to China.

Anonymous: (February 11, 2010 6:59am)

I had no choice this year but raise my deductions so high nothing gets taken out of my paycheck for Federal Income Tax. I qualify for Making Home Affordable, Tarp.. but I have been turned down by my mortgage lender 4 times so far. I get varied excuses like we need to deal with people who are 30, 60, and 90 days past due.. I am current.. Next excuse was I didn't have sufficient income to afford my payments even with a modification. But I have been current all along. Our household income dropped about $30,000 last year. I have did everything possible to cut wherever I can. I have refinanced by cars for lower payments. The only option left for me was to cut my deductions with taxes. I should be in a much better situation next year. If I owe a few grand.. That's what its going to have to be. When I owed money to the IRS, they were always good with setting up payments. I get nothing from my mortgage lender. It takes 3 to 6 months to receive an answer when you ask the lender for a mod.

JPL: (February 11, 2010 6:36am)

This is a shocking video. I'm surprised that we haven't seen this story in mainstream news, but I'm sure it's only a matter of time.

TaxedToDeath: (February 11, 2010 5:58am)

bosoxfan, You have lost your mind. I have not paid less than 20K in taxes in a single quarter since 1998 at an effective rate of 50% by the time phased out deductions, state taxes and laws that punish small business owners are factored in, and I resent every damn penny of it! I don't care how much the banks make as long as the government doesn't use my money to bail them out, at the same time those same banks refuse to loan money to small businesses while simultaneously sticking it to people in a tight spot like MadInPVBL. And before you start championing the efforts of US Banks over the European banks, you need to go investigate to whom the lion's share of the 180 billion that went AIG was dolled out. The European banks are laughing hard at people like you who do not have a clue.

bosoxfan: (February 11, 2010 5:45am)

Who cares what these US banks do anyway? This is all China's money that we're never going to pay back. Most people who complain about "taxpayer's money" probably never paid more than 20 grand in taxes in any year of their life. If it bothers you, make believe all your tax money goes to something you support, like body armor and new weapons for the military for some, windmills and new schools for others, whatever cause you feel good about your money going toward. Did you ever notice people who make LOTS of money never seem to be squawking about what their tax money is spent on? They spend their time trying to make more money so it won't matter. 50 years ago all the big banks were German, Dutch or Swiss. Now in just a short 20-30 years these enormous US banks have turned the Europeans into also-rans, while at the same time borrowing so much money from China that we have put their financial system on the brink of collapse. Not a bad days work. And these greedy bankers live and spend here!

nxid: (February 11, 2010 5:44am)

UMM you guys are silly. We had two choices: give "incentives" to healthy banks to spend and buy those bad debts or get used to living in a madmax type of world. I agree with everyone that decided to bail out the banks!

MadInPVBFL: (February 11, 2010 5:15am)

I missed my Oct payment with OWB. On Nov 17th they told me to pay up by Dec 18th or else. I wrote to them and said I wouldn't be able to pay until after the new year. On Jan 15th I called to make the late payments. I owed them $4564 for 4 payments. They told me my reinstatement amount was now $11,332 because they added Attorney fees, etc!! I owe them $153K and my house is worth about $230K. They refuse to remove the attorney fees and won't accept anything less than the full amount of $11K! I spoke to Brenda.Diaz@owb.com and she referred me to escalation specialist Daniel.Mandick@owb.com who offered me a repayment plan but the plan still included the additional fees which I can't afford to pay! OWB cannot find my original note because it has been lost or destroyed. If they foreclose on me, is it true that someone can come along later with the original note and sue me again?

mike in bakersfield: (February 11, 2010 4:30am)

subscribe to the show. these guys do great stuff everyday and its free.

overwhelmed: (February 11, 2010 4:12am)

I agree Indy reversed there dicission but only because this client had someone on top of it. How many other people have they done this too? That didnt have someone fighting for tem. HSBC conacted me and offered me a loan mod and then out of the blue 7 months later told me they no longer do loan mods I would have to go through AAcorn. I then sent all the paper work in to AAcorn and they said I did not qualify because I made to much money..I thought it was a good thing to be over qualified.. that way I could actally make the payments. Well we all know how AAcorn turned out. I did not vote for Obahma, yet honestly I do not believe he knew how dishonest and greedy the banks really are. I think he got a good dose of politics and educated very quickly on this one. I dont think he likes the egg on his face, he skirts the issue now. But it is still here! Lets get that CHANGE going!

DD: (February 11, 2010 2:44am)

SAS, IM WITH YOU, WE AS THE PEOPLE AND NEED TO FIGHT BACK, ABOUT A YEAR OR 18 MO AGO THEIR WAS SOME INFORMATION ONT HE WEB ABOUT HOW THE GOVERNMENT WORKS AND WHAT HAPPENS WHEN WE THE PEOPLE PURCHASE A HOME,,AND I CANT REMEMBER THEOTHER GUYS NAME I READ THE POST OF TONIGHT. aNY WAY I'LL GO BACK AND ADDRESS THAT LATER.. THE INFORMATION HAS DISAPEARED FROM ALL SITES,, i DO HAVE A COPY I REC RECENTLY FROM A GOOD FRIEND.. yOU WHO REALLY CARE AND WANT TO DO SOMETHING FOR YOURSELF OR THOES CLOSE TO YOU I HAVETHE DOCUMENTS THAT ARE NO LONGER AVAILABLE TO THE PUBLIC.. aLSO THE GUY WHO STATES THAT THEIR IS A WAY TO FIGHT TO KEEP YPUR HOME.. I WILL BE CONTACTING YOUR EMAIL THAT YOU HAVE DISCLOSED.. AND YOU THE ONE THWO SOULDS GREEDY AS HELL AND HAS NOTHING BETTER TO SATE THAN REMARKS ABOUT PEOPPELAS SPELLING,,, WELL NONE OF WHAT MAKES SENSE IT'S NOT YOUR BUSINESS SO STAY OUT..MY EMAIL ADDRESS IS FINANCIALWELLNESS@YAHOO.COM.. LETS TALK AND COMPARE NOTES,,d

DD: (February 11, 2010 2:41am)

SAS, IM WITH YOU, WE AS THE PEOPLE AND NEED TO FIGHT BACK, ABOUT A YEAR OR 18 MO AGO THEIR WAS SOME INFORMATION ONT HE WEB ABOUT HOW THE GOVERNMENT WORKS AND WHAT HAPPENS WHEN WE THE PEOPLE PURCHASE A HOME,,AND I CANT REMEMBER THEOTHER GUYS NAME I READ THE POST OF TONIGHT. aNY WAY I'LL GO BACK AND ADDRESS THAT LATER.. THE INFORMATION HAS DISAPEARED FROM ALL SITES,, i DO HAVE A COPY I REC RECENTLY FROM A GOOD FRIEND.. yOU WHO REALLY CARE AND WANT TO DO SOMETHING FOR YOURSELF OR THOES CLOSE TO YOU I HAVETHE DOCUMENTS THAT ARE NO LONGER AVAILABLE TO THE PUBLIC.. aLSO THE GUY WHO STATES THAT THEIR IS A WAY TO FIGHT TO KEEP YPUR HOME.. I WILL BE CONTACTING YOUR EMAIL THAT YOU HAVE DISCLOSED.. AND YOU THE ONE THWO SOULDS GREEDY AS HELL AND HAS NOTHING BETTER TO SATE THAN REMARKS ABOUT PEOPPELAS SPELLING,,, WELL NONE OF WHAT MAKES SENSE IT'S NOT YOUR BUSINESS SO STAY OUT..MY EMAIL ADDRESS IS FINANCIALWELLNESS@YAHOO.COM.. LETS TALK AND COMPARE NOTES,,d

DD: (February 11, 2010 2:38am)

SAS, IM WITH YOU, WE AS THE PEOPLE AND NEED TO FIGHT BACK, ABOUT A YEAR OR 18 MO AGO THEIR WAS SOME INFORMATION ONT HE WEB ABOUT HOW THE GOVERNMENT WORKS AND WHAT HAPPENS WHEN WE THE PEOPLE PURCHASE A HOME,,AND I CANT REMEMBER THEOTHER GUYS NAME I READ THE POST OF TONIGHT. aNY WAY I'LL GO BACK AND ADDRESS THAT LATER.. THE INFORMATION HAS DISAPEARED FROM ALL SITES,, i DO HAVE A COPY I REC RECENTLY FROM A GOOD FRIEND.. yOU WHO REALLY CARE AND WANT TO DO SOMETHING FOR YOURSELF OR THOES CLOSE TO YOU I HAVETHE DOCUMENTS THAT ARE NO LONGER AVAILABLE TO THE PUBLIC.. aLSO THE GUY WHO STATES THAT THEIR IS A WAY TO FIGHT TO KEEP YPUR HOME.. I WILL BE CONTACTING YOUR EMAIL THAT YOU HAVE DISCLOSED.. AND YOU THE ONE THWO SOULDS GREEDY AS HELL AND HAS NOTHING BETTER TO SATE THAN REMARKS ABOUT PEOPPELAS SPELLING,,, WELL NONE OF WHAT MAKES SENSE IT'S NOT YOUR BUSINESS SO STAY OUT..MY EMAIL ADDRESS IS FINANCIALWELLNESS@YAHOO.COM.. LETS TALK AND COMPARE NOTES,,d

DD: (February 11, 2010 2:36am)

SAS, IM WITH YOU, WE AS THE PEOPLE AND NEED TO FIGHT BACK, ABOUT A YEAR OR 18 MO AGO THEIR WAS SOME INFORMATION ONT HE WEB ABOUT HOW THE GOVERNMENT WORKS AND WHAT HAPPENS WHEN WE THE PEOPLE PURCHASE A HOME,,AND I CANT REMEMBER THEOTHER GUYS NAME I READ THE POST OF TONIGHT. aNY WAY I'LL GO BACK AND ADDRESS THAT LATER.. THE INFORMATION HAS DISAPEARED FROM ALL SITES,, i DO HAVE A COPY I REC RECENTLY FROM A GOOD FRIEND.. yOU WHO REALLY CARE AND WANT TO DO SOMETHING FOR YOURSELF OR THOES CLOSE TO YOU I HAVETHE DOCUMENTS THAT ARE NO LONGER AVAILABLE TO THE PUBLIC.. aLSO THE GUY WHO STATES THAT THEIR IS A WAY TO FIGHT TO KEEP YPUR HOME.. I WILL BE CONTACTING YOUR EMAIL THAT YOU HAVE DISCLOSED.. AND YOU THE ONE THWO SOULDS GREEDY AS HELL AND HAS NOTHING BETTER TO SATE THAN REMARKS ABOUT PEOPPELAS SPELLING,,, WELL NONE OF WHAT MAKES SENSE IT'S NOT YOUR BUSINESS SO STAY OUT..MY EMAIL ADDRESS IS FINANCIALWELLNESS@YAHOO.COM.. LETS TALK AND COMPARE NOTES,,d

DD: (February 11, 2010 2:33am)

SAS, IM WITH YOU, WE AS THE PEOPLE AND NEED TO FIGHT BACK, ABOUT A YEAR OR 18 MO AGO THEIR WAS SOME INFORMATION ONT HE WEB ABOUT HOW THE GOVERNMENT WORKS AND WHAT HAPPENS WHEN WE THE PEOPLE PURCHASE A HOME,,AND I CANT REMEMBER THEOTHER GUYS NAME I READ THE POST OF TONIGHT. aNY WAY I'LL GO BACK AND ADDRESS THAT LATER.. THE INFORMATION HAS DISAPEARED FROM ALL SITES,, i DO HAVE A COPY I REC RECENTLY FROM A GOOD FRIEND.. yOU WHO REALLY CARE AND WANT TO DO SOMETHING FOR YOURSELF OR THOES CLOSE TO YOU I HAVETHE DOCUMENTS THAT ARE NO LONGER AVAILABLE TO THE PUBLIC.. aLSO THE GUY WHO STATES THAT THEIR IS A WAY TO FIGHT TO KEEP YPUR HOME.. I WILL BE CONTACTING YOUR EMAIL THAT YOU HAVE DISCLOSED.. AND YOU THE ONE THWO SOULDS GREEDY AS HELL AND HAS NOTHING BETTER TO SATE THAN REMARKS ABOUT PEOPPELAS SPELLING,,, WELL NONE OF WHAT MAKES SENSE IT'S NOT YOUR BUSINESS SO STAY OUT..MY EMAIL ADDRESS IS FINANCIALWELLNESS@YAHOO.COM.. LETS TALK AND COMPARE NOTES,,d

DD: (February 11, 2010 2:30am)

SAS, IM WITH YOU, WE AS THE PEOPLE AND NEED TO FIGHT BACK, ABOUT A YEAR OR 18 MO AGO THEIR WAS SOME INFORMATION ONT HE WEB ABOUT HOW THE GOVERNMENT WORKS AND WHAT HAPPENS WHEN WE THE PEOPLE PURCHASE A HOME,,AND I CANT REMEMBER THEOTHER GUYS NAME I READ THE POST OF TONIGHT. aNY WAY I'LL GO BACK AND ADDRESS THAT LATER.. THE INFORMATION HAS DISAPEARED FROM ALL SITES,, i DO HAVE A COPY I REC RECENTLY FROM A GOOD FRIEND.. yOU WHO REALLY CARE AND WANT TO DO SOMETHING FOR YOURSELF OR THOES CLOSE TO YOU I HAVETHE DOCUMENTS THAT ARE NO LONGER AVAILABLE TO THE PUBLIC.. aLSO THE GUY WHO STATES THAT THEIR IS A WAY TO FIGHT TO KEEP YPUR HOME.. I WILL BE CONTACTING YOUR EMAIL THAT YOU HAVE DISCLOSED.. AND YOU THE ONE THWO SOULDS GREEDY AS HELL AND HAS NOTHING BETTER TO SATE THAN REMARKS ABOUT PEOPPELAS SPELLING,,, WELL NONE OF WHAT MAKES SENSE IT'S NOT YOUR BUSINESS SO STAY OUT..MY EMAIL ADDRESS IS FINANCIALWELLNESS@YAHOO.COM.. LETS TALK AND COMPARE NOTES,,d

DD: (February 11, 2010 2:28am)

SAS, IM WITH YOU, WE AS THE PEOPLE AND NEED TO FIGHT BACK, ABOUT A YEAR OR 18 MO AGO THEIR WAS SOME INFORMATION ONT HE WEB ABOUT HOW THE GOVERNMENT WORKS AND WHAT HAPPENS WHEN WE THE PEOPLE PURCHASE A HOME,,AND I CANT REMEMBER THEOTHER GUYS NAME I READ THE POST OF TONIGHT. aNY WAY I'LL GO BACK AND ADDRESS THAT LATER.. THE INFORMATION HAS DISAPEARED FROM ALL SITES,, i DO HAVE A COPY I REC RECENTLY FROM A GOOD FRIEND.. yOU WHO REALLY CARE AND WANT TO DO SOMETHING FOR YOURSELF OR THOES CLOSE TO YOU I HAVETHE DOCUMENTS THAT ARE NO LONGER AVAILABLE TO THE PUBLIC.. aLSO THE GUY WHO STATES THAT THEIR IS A WAY TO FIGHT TO KEEP YPUR HOME.. I WILL BE CONTACTING YOUR EMAIL THAT YOU HAVE DISCLOSED.. AND YOU THE ONE THWO SOULDS GREEDY AS HELL AND HAS NOTHING BETTER TO SATE THAN REMARKS ABOUT PEOPPELAS SPELLING,,, WELL NONE OF WHAT MAKES SENSE IT'S NOT YOUR BUSINESS SO STAY OUT..MY EMAIL ADDRESS IS FINANCIALWELLNESS@YAHOO.COM.. LETS TALK AND COMPARE NOTES,,d

The Truth: (February 11, 2010 1:22am)

These two s*#t stirrers in the video are wrong. The taxpayer does not pay for FDIC losses, and the FDIC is not funded by the public. FDIC is an insurance pool - it’s collects premiums from its member banks. The FDIC pays for its own losses with their own funds collected from their members. The insurer (FDIC) covers losses when something bad happens. When the FDIC needs to BORROW money, they borrow from the US Treasury. Over time, they pay the Treasury back from the fees they collect.

Bad Shot : (February 10, 2010 11:34pm)

Bullets are cheap... Real cheap. 40 cents a solution... Get my meaning?

assetback: (February 10, 2010 9:53pm)

One thing you have to confirm is whether the loans are owned by One West or by a securitization trust. The money from the short sale would then go to the trust, as the owner of the loan, not to One West. There are other dynamics to the agreement that do protect One West.

Mikal: (February 10, 2010 9:27pm)

It's even worse. Indy never loaned anything to anyone. The money came from investors like pension funds. It and OneWest are "pretender lenders" literally stealing the money.

Mikal: (February 10, 2010 9:25pm)

It's even worse. Indy never loaned anything to anyone. The money came from investors like pension funds. It and OneWest are "pretender lenders" literally stealing the money.

Anonymous: (February 10, 2010 8:38pm)

What the Government should have done was temporarily suspended arms.. People in arms would have to immediately move to a fixed rate. Those who are in default or foreclosure, should start back from scratch with fixed rates. I agree these people signed a contract to buy those homes on an ARM.. But it is a crisis.. No different than bailing out banks for careless lending policies.. No different than bailing out GM and Chrysler for making stupid decisions.. at least we the people would have got the break.. There is another wave of ARMS about to reset.. and some economists are saying this could affect 2 million homes.

spbxn: (February 10, 2010 8:22pm)

Yes, we the tax payers are left holding the bag. There does need to be some policy change for sure. Hmmm. .. follow the money, particularily George Soros' campaign contributions.

Just Saying: (February 10, 2010 7:58pm)