This is interview required viewing for anyone connected with real estate and mortgages. Here are a few choice snippets:
“We’ve made fraud and perjury just a business expense.”
“Felony, fraud, perjury on a mass scale.”
“It wasn’t Jamie Dimon…or the $8 burger flippers…the process was too institutionalized…what we don’t know is who the mid-level bank execu who said too hell with 700 years of property law…just rubber stamp it and get it through…”
“It’s the Ford Pinto approach…eh some will burn to death, we’ll write a check later.”
Spoken with amazing clarity – always love Barry’s insights and delivery of his views.
From my perspective, the $26B was a nominal rounding error despite the trillions in mortgage related fraud that occurred during the credit/housing boom. For essential context and the stunning lack of fairness to “Main Street” the agreement speaks volumes about why we can’t fight our way out of a paper bag (housing crisis).
Posted by Jonathan J. Miller -Thursday, February 16, 2012, 9:31 AM 1 Comment
After a reprieve in 2011, and a key reason why prognostications of a US housing market bottom is misguided, RealtyTrac reported that foreclosure filings were up 3% in January, month-over-month. Notice of defaults, however, are still depressed, down 22% from a year ago and unchanged from the prior month.
The 3% is statistically insignificant and I am not being an alarmist, but it represents the beginning of the distressed sale ramp-up now that the mortgage servicing settlement has finally been hammered out (actually the increase occurred before the agreement was final).
Daren Blomquist with RealtyTrac said increased foreclosure activity in key judicial foreclosure states is the likely result of lenders gaining some certainty over foreclosure processing issues, court decisions and regulations impacting the default process. He also points to the $25 billion mortgage servicing settlement that financial firms reached with state attorneys general over robo-signing and foreclosure issues.
On the surface, filings are still 19% below year ago levels, but the year ago level was artificially low just after the “robo-signing” scandal at the end of 2010.
“It’s a bit surprising that we are seeing this increase in January before the settlement was even announced,” Blomquist said. “It may be that lenders were ramping up (foreclosure activity) with the expectation of the settlement happening.”
RealtyTrac reports foreclosure filings rise 3% in January [Housingwire]
I’m not quite ready to use the word “haunted” in my housing language, but I had a nice chat with Brian Sullivan and Mandy Drury of CNBC TV’s ‘Street Signs’ – 30 Rock is always quick walk from my office... Read More