Okay.. Here is the darn Countrywide story! 09.02.10
Today's Poll: Is ending homelessness possible? (Answer the poll and talk in the blog)
Yes
No
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5pence: (September 02, 2010 5:20pm)
The Fair Elections Now Act (S. 752 and H.R. 1826) was introduced in the Senate by Sens. Dick Durbin (D-Ill.) and Arlen Specter (D-Pa.) and in the House of Representatives by Reps. John Larson (D-Conn.) and Walter Jones, Jr. (R-N.C.). The bill would allow federal candidates to choose to run for office without relying on large contributions, big money bundlers, or donations from lobbyists, and would be freed from the constant fundraising in order to focus on what people in their communities want. Summary of the bill is here : http://fairelectionsnow.org/sites/default/files/Fair%20Elections%20Now%20Act%20Summary.pdf
5pence: (September 02, 2010 5:16pm)
This is the bill proposed - looks REALLY good. http://fairelectionsnow.org/about-bill
5pence: (September 02, 2010 5:14pm)
Hey guys, support fair elections here http://fairelectionsnow.org/take-action
Daddio61: (September 02, 2010 4:43pm)
Lenders leverage borrowers capable of getting loans via appraisals. Like this: "..well, Mr Daddio61, your LTV does not qualify you for the Conventional Loan product you desire. Why dont we just have a look at these FHA products over here (bait & switch). ..hmm. Why yes! Great news, you do qualify! Heres your loan, and by the way, thank you for the up front fee (newly added debt collateralized from my former equity), and the 5 years of service (PMI/MI ADD about 6% to the cost of the loan for first 5 years). Oh yeah, isnt PMI/MI is the insurance premium for covering the lenders risk? When lenders are insured at 80% by the Federal Government (which is really the US Taxpayer), help me understand why borrowers have to pay 10 to 12% interest(APR+PMI)on their FHA mortgages? What is the real risk to the bank? When 1/3 of homeowners move within 5 yrs (a guess) should APR be redefined to include PMI or MI? Mortgage fraud should include when the banks are committing the theft.
W.R.Buchanan: (September 02, 2010 4:17pm)
frankgaray: Dude,,, Well done, on the -20LBS.I know what you are talking about with the gasping for air part. I guess I need to get really sick cuz it's the only way I can lose weight. I need to drop 40 to get back to svelt 160. Fruit and shredded wheat huh? Randy
5pence: (September 02, 2010 4:06pm)
Oil rises to over $75 a barrel after oil rig blast in the Gulf of Mexico. SEE?! Speculative greed. What's to stop individual people or investment banks from causing problems because they need a price to rise or fall? Nothing.
Silversky: (September 02, 2010 3:38pm)
This is another gift to the banks at our expense, FASB accounting to boost the books....who pays!
pogie: (September 02, 2010 3:06pm)
Funny how being thin makes people seem smarter & more reliable. Good for you! you look great!
frankgaray: (September 02, 2010 2:56pm)
Pogie - I got sick about 6 weeks ago and could only eat like... banana's and apples and shredded wheat and stuff like that. Just kind of stuck with it. Little shredded wheat in the morning, lunch is apples with peanut butter and maybe some grapes. Something lite for dinner or if it's regular dinner, I take a small portion. So basically... I'm starving myself to death. Lost a little over 20lbs. I'm digging it. Feels good to be able to tie my shoes without gasping for air.
W.R.Buchanan: (September 02, 2010 2:31pm)
Guys you're not getting what I'm saying! I'm saying the "RECORDED" price on public record should reflect the total front end and back end money on the deal. If a house sells for $250K and the banks snakes another $100K out of the Govt then the "recorded value" of that house sale should be $350K not $250K. There would be no addendums to fill out or explainations needed it would be how it is RECORDED! Also there would be more equity for the home onwers who are not selling short! This makes perfect sense, because the banks are currently stealing this equity directly from the existing homeowners left who have not sold short!!! Get it now? I don't find this concept "that" hard to comprehend. The Banksters certainly have it figured out. Randy
Valuequestor: (September 02, 2010 2:16pm)
APRAYZR.....Dude, as a field appraiser facing these choices everyday, I concur. I find that many of the REO sales being fixed up prior to listing at least in my area and sell at about market. Sometimes they are the only market. God I hope those buyers purchased their OWN "personal" title insurance policy. I avoid shorts as comps at all costs.
5pence: (September 02, 2010 1:55pm)
APRAYZR : We were discussing the market as it exists with AMC's controlling skippy appraisers and valuations and how discounted sales that are off-market could affect the market. I don't do AMC work. If they try to send me work I tell them to fk off and, funny thing, I never hear back from them.
APRAYZR: (September 02, 2010 1:12pm)
charlotehousehunter knows all the angles plus there are many more creative approaches that we will not reveal. An appraiser is not, among other things, a private detective. The appraiser is not expected to ferret out all the details of every sale transaction in the market area. A little advice: if a sale arrangement appears out of the ordinary it should be dropped immediately as a comp. If your appraisal report appears a little out of the ordinary (even though the current market is) you can bet that the lender will drop the loan. So don't spin your wheels fitting square pegs into round holes. In the end, you lose and so does the customer.
pogie: (September 02, 2010 1:09pm)
Frank what are you doing? You are looking great! Exersize? A diet? How much weight have you lost???
APRAYZR: (September 02, 2010 12:48pm)
To WR and 5pence: You're asking for more liability and requests for more (free) extraneous addendums when making such adjustments . Also, think of how you would have to justify them in court at a later date. None of that is worth an AMC fee. This would be a different game were it not for the marginally qualified, jellyfish, residential appraisers.
Evil Genius: (September 02, 2010 11:36am)
Thanks Frank. BITE BACK baby!
Daggone: (September 02, 2010 11:24am)
Foreclosures and short sales are having a huge impact on values. Add to that the home buyer credit that just ended when home owners were forced to sell lower to beat the clock. Equity is very precarious these days to say the least. I'm really concerned about short sales, as has been mentioned here, even if the lender sells at a reduced cost, they get something on the back. That does not get reported on the actual sale and appraisers are going to use the foreclosures and short sales all the time; I do not believe l0% of the appraisals I'm getting today actually reflect the value of the property. It is a shame home owners who are making their payments are getting the shaft because they cannot refi with falling values. As my mom used to say "mark my words" In hindsight short sales are not going to be that beneficial to the overall recovery of housing.
frankgaray: (September 02, 2010 10:50am)
Evil - YES Marbles is moving on from Beta.. Thinking maybe tomorrow.
5pence: (September 02, 2010 10:24am)
W.R. If you have to use that sale by force, like an AMC stipulation, then you'd have to adjust up for the non-market sale. Those back-side of the transaction payment are made outside of the deal under threat of civil liability. That's my take anyway.
BobbyC: (September 02, 2010 10:10am)
Frank and Brian,so they say we will recover in 2012, I wonder if that is before or after the Mayan calander expires? Say we recover in August 2012 that only gives us a few months before who knows what. Maybe you can do a show on this for kicks.
W.R.Buchanan: (September 02, 2010 10:05am)
Frank and Brian: Here's the deal guys. And I have broached this subject several times here recently with no response. Today's show told of a 20% discount to non profits that buy distressed properties. Well my earlier point was "if a bank receives bailout or compensation on the back side of a short sale, such as what One West (IndyMac)gets, Shouldn't the 'recorded price' of of that sale include all of the boot too?" It's exactly the same as a sales concession? Please answer this question?
falcon1: (September 02, 2010 10:01am)
Frank, must say that last bit with the hillbilly was very funny and quiet worth a belly laugh! It seems to fit right in with the website concept and you got that guy down. You should expand on that little character and make it a regular of your routine wherever you can. lol
5pence: (September 02, 2010 9:50am)
Short sale fraud could be seen as fraud or not depending on the experience of the realtor. Banks are using BPO's to list & sell-they love risk, or, is there risk when the FDIC covers their losses? Win/win for them. Just has a BPO done privately the BPO was only off by $70k. That Chase software and the Moody's ratings are based on quants, mathematical models that work until they don't, but the banks will keep using them until they don't as long as they're making money. They all blew up during the meltdown. They are only as good as the input of the programmers and don't include extreme failure as part of the scenario. They think the models are perfect. Idiots. It's the same deal with using AMC appraisers, their models are saying the potential risks of poor valuations are off-set by total profits, again it's cost effective over-ruling safe and sane. Brian, off-market sales will not affect market values unless the bankster AMC's force appraisers to include them in their reports & they do
yerout: (September 02, 2010 9:46am)
@Evil - yeah, too bad for age and responibility, however, a little more age and I'll be there for medicinal purposes :)
Evil Genius: (September 02, 2010 9:37am)
yerout: You're missing out! There's some good sh1t out there now. Just kidding!
Evil Genius: (September 02, 2010 9:36am)
F & B: Did I miss something? Is Marbles changing over from Beta. I can only access my page. Thanks EG
yerout: (September 02, 2010 9:30am)
@Slim - I haven't smoked anything in the last 20 years. You obviously are confused. I was refering to BILT post stating bulk purchases and courthouse step sales (purchased by investment companies) being used as comparables in an appraisal, not REO's or Short sales which are being used and typically not adjusted. I probably confused you with "arms length transaction"....my bad.
mike: (September 02, 2010 9:07am)
If all roads lead to Texas, Why is Frank wearing a sombrero. :-)
GaryP: (September 02, 2010 8:59am)
I'm old enough to remember that the government has been trying to reduce homelessness since the 60's. Those programs have been just as successful as their war on drugs. Just remember that a lot of these programs are being financed by HUD with funds siphoned from our borrower's MI payments. Is it any surprise that they are raising MI rates? How is this any different than homes being sold by HUD at significant discounts? I have a deal now where they are buying a home at 62% of the appraised value. What do you think that will do to comps in that neighborhood?
Calvin the Airedale: (September 02, 2010 8:41am)
No less an authority than Jesus Christ has already weighed in on the issue of homelessness (poverty): "The poor will always be with you."
jamiebasinger: (September 02, 2010 8:38am)
If the banks are giving a 20% discount to non-profits...don't they get to claim that discount as a charitable donation? And if so, why would that reduce the home values on those particular neighborhoods?
RandomActs: (September 02, 2010 8:36am)
There are at least 2 types of homelessness. The type that loses their house and is forced to live in the car and the crazy type that choses to be homeless. The 1st type wants a home. The 2nd won't even go to shelter because there are "too many rules" like sobriety, accountability etc. Government has a lot of work to do to figure this one out. Best of luck with that.
Slims: (September 02, 2010 8:14am)
yerout: What substance are you smoking? Appraisers are not adjusting for ANY transactions. Values are getting trashed because of it. You've forgotten what to do with your 'arms length transactions'.
charlottehousehunter: (September 02, 2010 8:11am)
That's great the Corelogic launched this software but many of these guys are "paying cash." Some actually have money while others used a hard money loan and few still are using the b-c buyer's payment as their funding. I have yet to run across a short sale flipper that is applying for a loan. I have heard that some lenders, specifically Wells, that is denying the b-c buyer's loan if the seller on the contract doesn't hold the title on the property.
Mike V: (September 02, 2010 8:05am)
Many people choose to be homeless. You can't eliminate it all. Reduce it? Probably but for government to take meaniful steps in reducing homelessness, there will have to be some great political advantage. Private charity has a better chance at reduction.
yerout: (September 02, 2010 7:56am)
@bild - appraisers using data (sales) from the assessor records can see that a transaction was purchased by an investment company and not a arms length transaction, as it'll state the type of deed used to transfer ownership. In most cases it will say Trustee's Deed, and not a Grant Deed. So the appraiser either shouldn't use it or make the necessary adjustments.
austinmtgpro: (September 02, 2010 7:43am)
You guys might like it so much in Austin you won't want to leave (I left Nor Cal 14 years ago an never went back). You should stick around through Saturday and check out the Texas Football home opener, it's an awesome college football experience.
amylee1115: (September 02, 2010 7:32am)
With that attitude (about homelessness-see poll)we won't!
jcollins: (September 02, 2010 7:19am)
Brian: the CW story is old news :)
Bono Vox: (September 02, 2010 7:13am)
3 thoughts: RONBO- Four years ago, you could dismiss REOs as comps because distressed sales were rare. Now they are the market. HOMELESSNESS - really took off when state hospitals were emptied. GIVING AWAY HOMES - it's easier for Big Bank to earn market share by lobbying than by providing customer service, innovation and price. So the Senator's favorite charity gets some free houses and Big Bank and the Senator get a photo op. Just look at the millions BofA pumped into ACORN, then Google "ACORN, fraud". By the way, no foreclosure in Nancy Pelosi's neighborhood is going to a homeless family.
VICKEY: (September 02, 2010 7:12am)
Come on guys, those foreclosures will not make any difference in the value of your home next year but a empty house and all the problems that go with it can cause serious damage to your property value...better to have someone in them than not!! Tax wise it can be a benefit to home owners this year!!
susiedarlin: (September 02, 2010 7:08am)
Glad to see y'all are reading some good books. LONESOME DOVE has to be one of the best westerns ever written. The movie wasn't bad either!!
CyndiRomano: (September 02, 2010 7:02am)
Someone at Countrywide stole my personal informtion also, Countrywide paid for credit montitoring for two year that just expired. They also sent me a claim form for the class action lawsuit allowing me to claim my losses not to exceed my actual losses. Since I had none, the was nothing to gain. On a more important matter, it is crazy to give homes at a discount in this ecomony, I don't want my home value to drop. And give away a few homes isn't going to end homelessness. Creating more jobs will help, but until we live in a perfect world with no drugs or insanity, there will always be homelessness.
frankgaray: (September 02, 2010 6:41am)
Utah Mortgage - I hope you're right.
BILD: (September 02, 2010 6:36am)
Appraisers in Iowa get their comps not only from the MLS, but the County Assessor's Office as well ... so it would be a factor in neighborhood values.
Utah Mortgage&Real Estate Guy: (September 02, 2010 6:31am)
Agreeing with REORealtor1: This post has hit it right on the nose. If there are Real Estate Agents posting incorrect data on their local MLS, REPORT IT. The misrepresentation by these agents needs to be stopped. Does anyone want these unscrupulous agents to keep working in the Real Estate business: if they have the balls to report misinformation on a public database can you imagine what they are willing to do to the unsuspecting client/customer.
lnangel1: (September 02, 2010 6:24am)
My Idenity was breached by Countrywide almost 2 years ago. They paid and have supplied credit monitoring for the last two years which expires soon............Now my question is now what??? Since you guys just brought up this story are the bad guys gonna be waiting in the shadows to pounce as soon as the monitoring is lifted???? Scary.........Keep up the good work
Utah Mortgage&Real Estate Guy: (September 02, 2010 6:23am)
Bulk sales example: In September 2009 a British REIT purchased 26,450 HOMES in the SOUTHEAST region of the United States. The purchase covered homes in Arkansas, Mississippi, Alabama, Georgia, Florida, North Carolina, South Carolina, and Virginia. They purchased these properties at 21 cents on the dollar of percieved current value. Yes 21%. To date, I believe this is the biggest real estate transaction in the US, ever. I would not believe, although I do not know for sure, that any of these sales were MLS sales that would affect over value of the communitites these homes resided in at the time of purchase. Realistically, if the discount of this transaction was reported to the MLS data to be used by appraisers. There would have been enough complaints that this probably would have made national news. If and when these properties are put back on the market (MLS) at significant discounts to normal market value, you could see an average price drop in these neighborhoods.
Utah Mortgage&Real Estate Guy: (September 02, 2010 6:11am)
Frank & Brian: You arguement against the Non-Profits purchasing a block of homes at 80% makes sense to a point, but there is a flaw in the thought process. Most sales outside of the normal MLS route: IE, auction, bulk or mutiple property sales, etc. will never be used as comparables by an appraiser. The most reliable way for an appraiser to gather comparable to subject data is to use the local MLS the subject property resides in. Very few, if any of these bulk sale transactions will show on the MLS. So in the near term, none of these sales should affect the value of homes. Longer term, if the Non-Profits put the home back on the market after rehab and general cleaning up, and their list price for these homes is significnatly less than market because they received a significant discount; this intern would cause the overall values to drop. Although, I would beleive that many of the homes would not see the MLS for a significant period of time, if at all. See example next post...
frankgaray: (September 02, 2010 5:40am)
Ronbo - The key words in your post are "should not". But with current appraisal situation, I doubt what should be done, is being done.
REORealtor1: (September 02, 2010 5:28am)
If you are finding in your area that a Realtor has mis-reported values all you need to do is call the local board and ask for the MLS servicer for that board. Call the servicer and let them know the agent has mis-reported the price. It will be corrected- this is a serious MLS code and ethics violation and there are fines etc for those who habitually violate these issues. All my experience with properties that went to auction is that we take it OFF the MLS as it is no longer "OUR" listing about 75% of the time. Those listings should be cancelled for the most part. The agents reporting it as a sold are putting it up to improve their numbers which would be used in their marketing. Drop a dime! This hurts everybody.
l.pillard: (September 02, 2010 5:08am)
Great question... simply answer. Homeless will never go away. Many of them love their life on the streets and really don't want the change. Why should they? Obama will spread our wealth to them one way or another. I also want to know why our Government bailed out the banks and many car industries and not the people who need it the most...the distressed home owner. What's your take.. I want to know..
Silversky: (September 02, 2010 5:03am)
A reader writes in with some troubling observations on what could potentially be a pretty substantial scheme to artificially "boost" existing home prices by up to 40%, putting all the NAR data, and all other relevant public housing data materially into question. Since trick is painfully simplistic, and all too easy to spot, we wish to open it up to our readers for verification, as this could be a huge hit to the credibility of all existing home price metrics, and put into question all transitory upticks in home prices, such as the backward looking Case-Shiller index indicated yesterday. From the email: Realtors are not reporting the true sold prices on homes. Here are 2 examples. If a home is listed on the MLS and then sells at a auction like Hudson & Marshal or RealtyBid, you can see the sold price online or if you attend the live auctions, see the house sell at open outcry auction. The next day the houses are reported sold on the MLS but always at full price. The example below sold for $115,000 at Realtybid but is listed as sold for $159,500 on the MLS. Also, homes are listed on the MLS and sold on the HUD site. You can see the sold area on HUD and t
Ronbo: (September 02, 2010 4:33am)
If a resent sale of a REO property has to used in setting an appraised value of a property that it not a REO the under market value (in the case of the 20% below market for the homeless program)should be added. REO's should not be considered "Like Properties" if not being used to value a REO.
baldo: (September 02, 2010 4:03am)
2012 that sounds familar..... Oh I remember, They got it from the Mayan Calendar