Government Finds New Ways to Perpetuate the Bailouts of Fannie & Freddie

    Government Finds New Ways to Perpetuate the Bailouts of Fannie & Freddie

    The cost of the bailouts seems never-ending and more of the mounting evidence that it didn’t work, like a bailout recipient laying off 16,000 workers this year, continue to make the news. Tied to the root cause of the financial meltdown of 2007-2008, are mortgage giants Freddie Mac & Fannie Mae in light of their penchant for bundling sub-prime mortgage securities in the years preceding | Read More »

    This WSJ article on deficiency lawsuits leaves me curiously unsympathetic.

    I mean, the basic concept behind the practice is worrisome enough: banks foreclose on a property when it goes into default, discover that the foreclosure sale doesn’t recoup their losses, so they get a ‘deficiency judgment’ to try to get the rest from the original borrower. So far, such is life – but where it gets worrisome is where they resell the judgments to third | Read More »

    This WSJ article on deficiency lawsuits leaves me curiously unsympathetic.

    I mean, the basic concept behind the practice is worrisome enough: banks foreclose on a property when it goes into default, discover that the foreclosure sale doesn’t recoup their losses, so they get a ‘deficiency judgment’ to try to get the rest from the original borrower. So far, such is life – but where it gets worrisome is where they resell the judgments to third | Read More »

    28.4% of mortgages underwater.

    Note that this article doesn’t quite get the original report right, sort-of kind-of thank goodness; it confuses mortgage holders with homeowners when reporting the percentage of underwater mortgages (mortgages where the holders owe more on a piece of real estate than the real estate is actually worth).  In other words, 28.4% of homeowners with mortgages have underwater ones, not 28.4% of all homes. This should | Read More »

    28.4% of mortgages underwater.

    Note that this article doesn’t quite get the original report right, sort-of kind-of thank goodness; it confuses mortgage holders with homeowners when reporting the percentage of underwater mortgages (mortgages where the holders owe more on a piece of real estate than the real estate is actually worth).  In other words, 28.4% of homeowners with mortgages have underwater ones, not 28.4% of all homes. This should | Read More »

    Just Who Is The SEIU Threatening These Days?

    It seems The SEIU is making rediculous threats for a change. They will get their way – NOW! Otherwise, they intend to get the banksters by crashing Wall Street. They intend to end capitalism as we now know it and redistribute the proceeds fairly. Silly me. I always thought you could do that by voting for Democrats. So just how does one get the banksters? | Read More »

    Just Who Is The SEIU Threatening These Days?

    It seems The SEIU is making rediculous threats for a change. They will get their way – NOW! Otherwise, they intend to get the banksters by crashing Wall Street. They intend to end capitalism as we now know it and redistribute the proceeds fairly. Silly me. I always thought you could do that by voting for Democrats. So just how does one get the banksters? | Read More »

    White House to bailout underwater mortgages?

    Today’s hot rumor comes from James Pethokoukis: essentially, the White House (which is becoming increasingly frantic about the way that their Super Magical Unicorn Genius economic plans  aren’t working) is scheming to partially bail out people with underwater mortgages.  I know, I know: the government was not supposed to acquire Fannie/Freddie just to completely rewrite their balance sheets, but the existing scheme to let the | Read More »

    White House to bailout underwater mortgages?

    Today’s hot rumor comes from James Pethokoukis: essentially, the White House (which is becoming increasingly frantic about the way that their Super Magical Unicorn Genius economic plans  aren’t working) is scheming to partially bail out people with underwater mortgages.  I know, I know: the government was not supposed to acquire Fannie/Freddie just to completely rewrite their balance sheets, but the existing scheme to let the | Read More »

    Hi, federal government. Pay my mortgage, please.

    Hey, is this not Freddie Mac’s strategy? Freddie Mac is asking for $10.6 billion in additional federal aid after posting a big loss in the first three months of the year. It’s another sign that the taxpayer bill for stabilizing the housing market will keep mounting. Asking the government to keep you afloat as an alternative to actually operate under sound fiscal principles, that is.  | Read More »

    Hi, federal government. Pay my mortgage, please.

    Hey, is this not Freddie Mac’s strategy? Freddie Mac is asking for $10.6 billion in additional federal aid after posting a big loss in the first three months of the year. It’s another sign that the taxpayer bill for stabilizing the housing market will keep mounting. Asking the government to keep you afloat as an alternative to actually operate under sound fiscal principles, that is.  | Read More »

    Cramer’s Remorse, XX: “Are You Kidding Me?”

    Jim Cramer proves time and time again to be such a tease. Every time it looks like he’s going to crack in his lifelong support of the Democrats, he always finds a way to rationalize and/or ignore his way out of the issue. Last night’s tirade may well similarly come to nothing in the end, but it’s worth munching a bag of popcorn over. The | Read More »

    Taking A Walk On The Sanctity of Contract

    Our recent recession has had a profoundly pernicious byproduct. People have convinced themselves that nobody in banking or real estate can be trusted. In and of itself, this would be evil. Combined with conveniently self-serving moral relativism, it could lethally undermine the system of credit upon which much of our property ownership rests as a basis. Brent T. White, of the University of Arizona, has | Read More »

    Foreclosure follies

    When I take a break from blogging, I’m a real estate title abstractor. I’m….in-between…. employers at the moment. Why? Nope. Not because of the foreclosures. If every house on the market that should be foreclosed was being sold, I would have a job. My industry depends upon the transaction, the sale, of homes. And responsible banks and buyers get titles checked before they buy. And | Read More »

    Obama And The Hypocrisy Of Blame

    Funny how Obama and the democrats blame the financial institutions for creating an opportunity for uncredit worthy customers to get a homes they could not afford but blame the drug addicts, the  customers, for the actions of the drug cartels.  In other words, Obama blames the mortgage companys for lending money and thus the customers who freely entered into those contracts are not responsible for them. However, while in Trinidad, Obama blames | Read More »