One of the recurring themes I have written about is the elimination of loans for the group of folks who are struggling to get down payment or have credit issues. I think the article below is just more of the same. Fannie Mae and Freddie Mac have been criticized for eliminating affordable housing mortgages. I am not entirely sure of which programs were considered affordable housing mortgages. Each agency had a $0 down loan that did not have as many restrictions as their normal loan programs so I guess that is what the complaint is about. Those were eliminated in the recent flurry of changes that have taken place. I am not sure you would have called them affordable housing mortgages however.
No matter what the argument both Fannie Mae and Freddie Mac have eliminated programs that helped many buyers and are currently price fixing (my opinion of course) their rates on buyers with lower credit scores. Note the fact I said lower credit scores, not bad credit. I think the price gouge starts on anyone who has a credit score below 700. Maybe Fannie and Freddie should buy some oil company stock; I am sure the oil companies could give them a few more tips on how to take advantage of the consumer.
I don’t know if the criticism below is entirely warranted but believe me Fannie and Freddie should take a good look at their policies, I know the consumer is paying dearly to do business with them.
This article was taken from the Mortgage Banker News;
Fannie Reconsidering AH Changes April 24, 2008
In response to strong criticism from fair-lending groups, Fannie Mae has indicated that it is reconsidering recent moves to tighten underwriting standards on affordable housing mortgages and impose new fees. "We have met extensively with advocates, listened to their concerns, and are considering making some changes to our methodologies," Fannie spokesman Brian Faith said. Freddie Mac has also met with the fair-housing and civil rights organizations that have accused the two government-sponsored enterprises of abandoning their affordable housing mission. "While we disagree with their conclusions, we have had helpful discussions with the housing groups and take their concerns very seriously," a Freddie spokesman said. The GSEs can be found online at http://www.fanniemae.com/ and http://www.freddiemac.com./
Monday, April 28, 2008
Friday, April 25, 2008
MORE OF THE SAME STUFF
Well anyone who is checking into the Blog of late has not found a lot of activity. I have been looking for something different, perhaps a bit more interesting news, or perhaps some light at the end of the tunnel that might not be a continuation of the same train wreck. To tell you the truth the events and news of the day is just more of the same ole stuff.
Loan programs age going away, lenders are tightening up more and more. The average borrowers who don't have spotless credit are being charged more and more or have no loan funds available at all. Fannie Mae and Freddie Mac are profiteering any way they can, investors who buy FHA loans are charging more and more and not buying into the Government programs like the FHA Secure loan.
Politicians are still spouting and fantasizing about thinking some investors and lenders who own mortgage paper are going to reduce the amount owed on the mortgage so someone will refinance the loan that no investor will buy.
In the mean time someone from Countrywide called me yesterday, lied about wanting to refinance his loan and then tried to recruit me to go to work for them. I simply laughed out loud and told him he had to be crazy.
More non specifically the beat goes on, the tail continues to wag the dog and this thing is far from over. I wish I knew which round of the battle the industry was now in. We will see.
I am getting requests to do more blogging and I will be back at it hopefully.
More to come
Lonny
Loan programs age going away, lenders are tightening up more and more. The average borrowers who don't have spotless credit are being charged more and more or have no loan funds available at all. Fannie Mae and Freddie Mac are profiteering any way they can, investors who buy FHA loans are charging more and more and not buying into the Government programs like the FHA Secure loan.
Politicians are still spouting and fantasizing about thinking some investors and lenders who own mortgage paper are going to reduce the amount owed on the mortgage so someone will refinance the loan that no investor will buy.
In the mean time someone from Countrywide called me yesterday, lied about wanting to refinance his loan and then tried to recruit me to go to work for them. I simply laughed out loud and told him he had to be crazy.
More non specifically the beat goes on, the tail continues to wag the dog and this thing is far from over. I wish I knew which round of the battle the industry was now in. We will see.
I am getting requests to do more blogging and I will be back at it hopefully.
More to come
Lonny
Wednesday, April 2, 2008
CHEATS & TRICKS PART 2
Enjoy part 2 Cheats and Tricks
Exactly how deeply this attitude was in the business of making loans was revealed by this memo. It involves Zippy, Chase's in-house automated loan underwriting system.
The memo's title: "Zippy Cheats & Tricks."
It provides a rare glimpse into the corporate mentality that has been a key factor in the current mortgage crisis (a Chase spokesperson denied that Zippy Cheats & Tricks was official policy; thus we are reassured that this was only "unofficial policy").
Here's an excerpt from the Oregonian:
"During the boom, it was common for lenders and brokers to get paid more for risky subprime loans than for 30-year fixed-rate loans because the higher-interest loans fetched a higher price on Wall Street.
Chase, the nation's second-largest bank, originates mortgage loans itself but also operates a wholesale arm that underwrites and funds loans brought to them by a network of mortgage brokers. The "Cheats & Tricks" memo was instructing those brokers how to get difficult loans approved by Zippy.
"Never fear," the memo states. "Zippy can be adjusted (just ever so slightly)."
The Chase memo deals specifically with so-called stated-income asset loans, one of the most dangerous of the mortgage industry's innovations of recent years. Known as "liar loans" in some circles because lenders made little effort to verify information in the borrowers' loan application, they have defaulted in large number since the housing bust began in 2007...
The Chase memo is "a perfect example of one of the big five banks out and out telling mortgage brokers to commit fraud," said Todd Williams, a broker with Evergreen Ohana Group in Portland. "And this has been going on for years." Williams and other mortgage brokers gave a copy of the memo to Oregon financial regulators.
Three other facts make this story incredibly intriguing:
1. State regulators recognized signs of fraud early on, but attempts to curtail it were prevented. The White House asserted that it was the Feds -- and not states -- that have jurisdiction over federally chartered banks.
And the Feds? They did nothing until 2008.
2. Tammy Lish, a Portland, Oregon account representative for Chase, accidentally forwarded the memo by email. Chase fired her days after discovering this.
3. Chase no longer makes any stated-income loans; the bank wrote down $1.3 billion in nonperforming mortgages in 2007.
The entire episode is amazing. I expect that more and more of these smoking guns will be finding their way into public view. Perhaps we can ask the Oregonian to make the actual email available online.
Now of course Chase denies this, you decide, good grief.
More to come
Lonny
Exactly how deeply this attitude was in the business of making loans was revealed by this memo. It involves Zippy, Chase's in-house automated loan underwriting system.
The memo's title: "Zippy Cheats & Tricks."
It provides a rare glimpse into the corporate mentality that has been a key factor in the current mortgage crisis (a Chase spokesperson denied that Zippy Cheats & Tricks was official policy; thus we are reassured that this was only "unofficial policy").
Here's an excerpt from the Oregonian:
"During the boom, it was common for lenders and brokers to get paid more for risky subprime loans than for 30-year fixed-rate loans because the higher-interest loans fetched a higher price on Wall Street.
Chase, the nation's second-largest bank, originates mortgage loans itself but also operates a wholesale arm that underwrites and funds loans brought to them by a network of mortgage brokers. The "Cheats & Tricks" memo was instructing those brokers how to get difficult loans approved by Zippy.
"Never fear," the memo states. "Zippy can be adjusted (just ever so slightly)."
The Chase memo deals specifically with so-called stated-income asset loans, one of the most dangerous of the mortgage industry's innovations of recent years. Known as "liar loans" in some circles because lenders made little effort to verify information in the borrowers' loan application, they have defaulted in large number since the housing bust began in 2007...
The Chase memo is "a perfect example of one of the big five banks out and out telling mortgage brokers to commit fraud," said Todd Williams, a broker with Evergreen Ohana Group in Portland. "And this has been going on for years." Williams and other mortgage brokers gave a copy of the memo to Oregon financial regulators.
Three other facts make this story incredibly intriguing:
1. State regulators recognized signs of fraud early on, but attempts to curtail it were prevented. The White House asserted that it was the Feds -- and not states -- that have jurisdiction over federally chartered banks.
And the Feds? They did nothing until 2008.
2. Tammy Lish, a Portland, Oregon account representative for Chase, accidentally forwarded the memo by email. Chase fired her days after discovering this.
3. Chase no longer makes any stated-income loans; the bank wrote down $1.3 billion in nonperforming mortgages in 2007.
The entire episode is amazing. I expect that more and more of these smoking guns will be finding their way into public view. Perhaps we can ask the Oregonian to make the actual email available online.
Now of course Chase denies this, you decide, good grief.
More to come
Lonny
Tuesday, April 1, 2008
CHEATS & TRICKS PART 1
One of the things I have been sure was going to happen was how the big banks are going to be exposed during this time of upheaval in the business. The big boys will try to come off as innocent and not part of the problem but the reality will be once all the dust settles that they (in my opinion) were as much to blame if not more so than anyone else. Sure the originators are just as guilty but the greed motive by the big banks fueled the wreck in my opinion.
I ran across an article written by Barry Ritholtz who is Chief Market Strategist for Ritholtz Research, an independent institutional research firm. He “claims” that JP Morgan/Chase sent out a memo instructing their mortgage brokers on how to get questionable loans approved by their system.
Now if that is a fact it is pretty revealing about the tactics of at least this bank in contributing to the problem we have today. Think about it, a Federally Chartered Bank instructing originators on how to produce fraud in their system. I don’t acknowledge that this is factual but sure looks like it, you decide.
Enjoy part one of two:
3 "handy steps" for getting a questionable loan approved by JPM Chase's (JPM) automatic system:
1. Lump all of an applicant's compensation as the applicant's base income, rather than breaking out commissions, bonuses and tips.
2. Do not disclose use of gifts for down payments.
3. If all else fails, simply inflate the applicant's income. "Inch it up $500 to see if you can get the findings you want. Do the same for assets.
Thus reads an internal memo from Chase that accidentally found its way into the hands of journalist Jeff Manning of The Oregonian. It was the basis for an article titled; Chase mortgage memo pushes 'Cheats & Tricks'.
Fraud has been a frequent theme of ours regarding Housing during the Boom, circa 2001-06. From appraisal fraud to the payola of the Ratings agencies, the entire system has been corrupted. Some will act as apologists for the worst tendencies of the banking industry, and others may debate who is to blame. We long ago reached a verdict as to where the culpability lay.
Anyone with even a modicum of experience in the mortgage industry will confirm the rampant disregard for lending standards and the corner cutting and shortcuts that were all but official corporate policy during the boom years. There was headlong rush to originate, process and securitize mortgages -- and the ability to repay the loans be damned. (Predatory Borrowing my ass!)
Part 2 tomorrow,
More to come
Lonny
I ran across an article written by Barry Ritholtz who is Chief Market Strategist for Ritholtz Research, an independent institutional research firm. He “claims” that JP Morgan/Chase sent out a memo instructing their mortgage brokers on how to get questionable loans approved by their system.
Now if that is a fact it is pretty revealing about the tactics of at least this bank in contributing to the problem we have today. Think about it, a Federally Chartered Bank instructing originators on how to produce fraud in their system. I don’t acknowledge that this is factual but sure looks like it, you decide.
Enjoy part one of two:
3 "handy steps" for getting a questionable loan approved by JPM Chase's (JPM) automatic system:
1. Lump all of an applicant's compensation as the applicant's base income, rather than breaking out commissions, bonuses and tips.
2. Do not disclose use of gifts for down payments.
3. If all else fails, simply inflate the applicant's income. "Inch it up $500 to see if you can get the findings you want. Do the same for assets.
Thus reads an internal memo from Chase that accidentally found its way into the hands of journalist Jeff Manning of The Oregonian. It was the basis for an article titled; Chase mortgage memo pushes 'Cheats & Tricks'.
Fraud has been a frequent theme of ours regarding Housing during the Boom, circa 2001-06. From appraisal fraud to the payola of the Ratings agencies, the entire system has been corrupted. Some will act as apologists for the worst tendencies of the banking industry, and others may debate who is to blame. We long ago reached a verdict as to where the culpability lay.
Anyone with even a modicum of experience in the mortgage industry will confirm the rampant disregard for lending standards and the corner cutting and shortcuts that were all but official corporate policy during the boom years. There was headlong rush to originate, process and securitize mortgages -- and the ability to repay the loans be damned. (Predatory Borrowing my ass!)
Part 2 tomorrow,
More to come
Lonny
Monday, March 31, 2008
FHA Secure Loan Reality
I want to tell you a story about a recent loan I completed. You may recall part of the President’s economic stimulus package included provisions for a FHA loan called the Secure Loan. It gave a homeowner, who had an adjustable rate mortgage that had adjusted to a level that they could not pay, the opportunity to refinance it into a “safe” FHA loan. Among other things the loan required the borrower to be current when the loan adjusted, as I recall they had to be behind on their loan after the adjustment, and they had to have equity in their home to satisfy the current FHA down payment requirements.
I knew of one qualified borrower that could qualify if FHA raised the loan limits. Believe it or not they actually did raise the limits temporarily under the same stimulus bill. When the FHA loan limits went up I called the borrowers and told them to apply. Let’s call them the Smith’s to keep it simple. The Smith’s applied and met every facet of the requirements to get the Secure Loan in my opinion. There is always underwriting that has to take place but all in all they met the guidelines and we got them approved. They had equity in their home that made the loan solid with an 87% loan to value ratio and their payment was going down after the adjustment by some $800.00 per month. When the President announced the program he perfectly described the Smith’s and their need for help. To put it more simply if it had not been for this loan the Smith’s would have had to sell their home.
What I didn’t expect was that the investors that buy and service FHA loans for the most part would not buy the loan after we closed it. There was one investor that would finally buy the mortgage and so we did get to close it.
Here’s the problem, the President wants to help the people who have these bad loans but the market place does not want to buy the loan as it would be perceived to have more risk. The loan is almost impossible to qualify for and if you do then the capital markets don’t want it.
If the government is going to do any good and stop playing politics they are going to have to change the way HUD does business by giving some incentive for investors to take the added risk on these type loans. As mortgage funds dry up for the people who need loans and who would be good borrower’s things have got to change. An aggressive posture by HUD through FHA would work if it was well thought out and implemented.
Instead we read the news that the secretary of HUD Alphonso Jackson will probably resign today for multiple reasons. Politics as usual is the name of the game….as usual.
More to come
Lonny
I knew of one qualified borrower that could qualify if FHA raised the loan limits. Believe it or not they actually did raise the limits temporarily under the same stimulus bill. When the FHA loan limits went up I called the borrowers and told them to apply. Let’s call them the Smith’s to keep it simple. The Smith’s applied and met every facet of the requirements to get the Secure Loan in my opinion. There is always underwriting that has to take place but all in all they met the guidelines and we got them approved. They had equity in their home that made the loan solid with an 87% loan to value ratio and their payment was going down after the adjustment by some $800.00 per month. When the President announced the program he perfectly described the Smith’s and their need for help. To put it more simply if it had not been for this loan the Smith’s would have had to sell their home.
What I didn’t expect was that the investors that buy and service FHA loans for the most part would not buy the loan after we closed it. There was one investor that would finally buy the mortgage and so we did get to close it.
Here’s the problem, the President wants to help the people who have these bad loans but the market place does not want to buy the loan as it would be perceived to have more risk. The loan is almost impossible to qualify for and if you do then the capital markets don’t want it.
If the government is going to do any good and stop playing politics they are going to have to change the way HUD does business by giving some incentive for investors to take the added risk on these type loans. As mortgage funds dry up for the people who need loans and who would be good borrower’s things have got to change. An aggressive posture by HUD through FHA would work if it was well thought out and implemented.
Instead we read the news that the secretary of HUD Alphonso Jackson will probably resign today for multiple reasons. Politics as usual is the name of the game….as usual.
More to come
Lonny
Friday, March 21, 2008
ADIOS AMIGO
Well you might have noticed I have been off for a few days. I have been in Minnesota at a training. It snowed 6 inches while I was there. Just doesn't seem right somehow. I was doing much contemplation and thinking and must admit I did not take care of my Blog very well. I will get back with the program I am confident.
I ran across this article in Mortgage Banker News and thought is was interesting. I was wondering how Countrywide was going to do this. Now we know. Can you say, Adios Amigo???
Robinson Offers Update on BoA Countrywide Deal:
Bank of America has a rigid transition process it uses for any of the acquisitions it has done or is doing, said its president for consumer real estate Floyd Robinson. He was asked during a panel session at the Regional Conference of Mortgage Bankers Associations in Atlantic City to provide an update on BofA's acquisition of Countrywide Financial Corp., Calabasas, Calif. The Charlotte, N.C.-based bank is assigning "hundreds" of associates to the transition process. There has been a 30-day look at the practices of both companies, Mr. Robinson said, and one of the items that resonated with him is the disparity in the two companies' respective direct-to-consumer businesses. BoA has done $168 billion in this channel while Countrywide has $113 billion. Much of Countrywide's production comes from the correspondent and wholesale channels, areas that BoA does not do business in, leading Mr. Robinson to point out Countrywide has a very different business model than BoA does. The different approaches and attitudes between the two, he added, could make this one of the most challenging acquisition integrations for BoA. One business the combination will not do is subprime, an area BoA has not been in for several years. The company will not take an inappropriate risk to its reputation, Mr. Robinson said.
More to come
Lonny
I ran across this article in Mortgage Banker News and thought is was interesting. I was wondering how Countrywide was going to do this. Now we know. Can you say, Adios Amigo???
Robinson Offers Update on BoA Countrywide Deal:
Bank of America has a rigid transition process it uses for any of the acquisitions it has done or is doing, said its president for consumer real estate Floyd Robinson. He was asked during a panel session at the Regional Conference of Mortgage Bankers Associations in Atlantic City to provide an update on BofA's acquisition of Countrywide Financial Corp., Calabasas, Calif. The Charlotte, N.C.-based bank is assigning "hundreds" of associates to the transition process. There has been a 30-day look at the practices of both companies, Mr. Robinson said, and one of the items that resonated with him is the disparity in the two companies' respective direct-to-consumer businesses. BoA has done $168 billion in this channel while Countrywide has $113 billion. Much of Countrywide's production comes from the correspondent and wholesale channels, areas that BoA does not do business in, leading Mr. Robinson to point out Countrywide has a very different business model than BoA does. The different approaches and attitudes between the two, he added, could make this one of the most challenging acquisition integrations for BoA. One business the combination will not do is subprime, an area BoA has not been in for several years. The company will not take an inappropriate risk to its reputation, Mr. Robinson said.
More to come
Lonny
Monday, March 17, 2008
MORE NEWS MORE COMMENTARY
I read a couple of interesting articles over the past few days. The first has to do with Countrywide’s continued problems with their loan portfolio. It talks about the impending purchase by Bank of America at what I assume is still near twice the stock value. Bank of America is overpaying for problems that have not even completely surfaced yet. Now I am no fool but why would you do that for any cost?
http://www.fool.com/investing/dividends-income/2008/03/14/countrywides-future-is-anyones-guess.aspx
A second article is talking about an announced buyout of Bear Stearns, who went in the tank (so to speak) late last week, by JP Morgan Chase. Unlike B of A deal, J P Morgan Chase is paying a small percentage of the stock value for Bear Stearns. As I recall the value paid is mainly for the value of the assets and no doubt some blue sky value. Now that makes sense to me. Take advantage of a good deal when it presents itself and get a real value in the process.
http://news.yahoo.com/s/ap/20080317/ap_on_bi_st_ma_re/wall_street
The first article talks about why B of A might still be in the deal and suggests it could just be for press, grandstanding etc. I have made no secret that I have a huge problem with the loan origination tactics of Bank of America. They sell you on the fact they have no closing costs and then charge you a high interest rate so they make their money “on the back side”. My opinion is that this is the purest form of deception and false advertising. A consumer may find this is a good choice but only after understanding all the options they have. I hope they get their deal done with Countrywide for the sake of the employees there but I will assure you if I have to put my money in my mattress they will be the last bank I will ever do business with.
Enjoy the articles and take a deep seat for the ride is really going to be interesting for awhile as the mortgage market and other markets continue to adjust to wherever all this is going to finally land.
More to come
Lonny
http://www.fool.com/investing/dividends-income/2008/03/14/countrywides-future-is-anyones-guess.aspx
A second article is talking about an announced buyout of Bear Stearns, who went in the tank (so to speak) late last week, by JP Morgan Chase. Unlike B of A deal, J P Morgan Chase is paying a small percentage of the stock value for Bear Stearns. As I recall the value paid is mainly for the value of the assets and no doubt some blue sky value. Now that makes sense to me. Take advantage of a good deal when it presents itself and get a real value in the process.
http://news.yahoo.com/s/ap/20080317/ap_on_bi_st_ma_re/wall_street
The first article talks about why B of A might still be in the deal and suggests it could just be for press, grandstanding etc. I have made no secret that I have a huge problem with the loan origination tactics of Bank of America. They sell you on the fact they have no closing costs and then charge you a high interest rate so they make their money “on the back side”. My opinion is that this is the purest form of deception and false advertising. A consumer may find this is a good choice but only after understanding all the options they have. I hope they get their deal done with Countrywide for the sake of the employees there but I will assure you if I have to put my money in my mattress they will be the last bank I will ever do business with.
Enjoy the articles and take a deep seat for the ride is really going to be interesting for awhile as the mortgage market and other markets continue to adjust to wherever all this is going to finally land.
More to come
Lonny
Friday, March 14, 2008
NEWS NEWS AND MORE NEWS
There was just so much news today I just couldn’t resist the chance to do a little of my own commentary. Remember about my opinions, they are not based in fact or intellectual validity. For the record:
Inman news reported that Fitch (who is a rating agency) cut Countrywide’s debt rating to near junk. I am not sure if that is a technical term or just Inman’s opinion. The actual rating they imposed was BBB- which stands for Bad Bad Bad I think. Bank of America’s deal is still on even though good ole B of A has a Rating Watch which is Negative. They may get a rating out of this as DDD. (You decide). Full steam ahead B of A, I am rooting for you.
In other news Henry Paulson (he has something to do with the Treasury Dept and is a forgettable politician for sure) has suggested that all mortgage brokers should be licensed and should be held to strict licensing standards. He must not know that most states already have these standards and they are pretty much worthless as are his suggestions. So here are some questions for Mr. Paulson, what is going to be different than the current laws that were supposed to regulate bad mortgage people? Also who’s going to enforce these great new laws, and do you think it will really do any good when it hasn’t so far. Do you think the crooks are going to stand down? Paulson is typical saying to much way to late with no concept of why things got the way they got. Mr. Paulson, go get oil prices reduced if you want to work on something. With leaders like this no wonder we are in the shape we are in.
Mortgage Fraud is worse than believed. (Are you kidding) (Who would have thunk it) A leader of a company who deals with Mortgage Fraud detection found 42,000 mortgages that had fraud in them and these are the ones they detected. The report said they hoped these loans were not made. (Exquise me) I think Mortgage Fraud being worse than believed is the understatement of the century. Good report however maybe you should send it to Mr. Paulson so he would have something else to talk about.
Now this; FHA reform hopeful of being passed. Problem is the politicians are fighting (among other things) over the maximum loan limits. I will believe the bill will get passed when I see it. This legislation has been in the works since 2006 and I will be shocked if it ever gets passed in the first place and short of loan amounts being increased it will do very little to help us dig out of the hole the industy is in. This is a wonderful commentary on just how worthless the political process can be. My guess it will never get passed, I hope I am wrong on this one.
On the good news it is reported by MARI that Fraud is spread more evenly among the states. We should all be relieved, shouldn’t we? These guys ought to be the opening act for Lewis Black. (He is a comic if you don't know) Lewis could really sink his teeth into this type of dribble.
Enough for now! Good Grief!
More to come
Lonny
Inman news reported that Fitch (who is a rating agency) cut Countrywide’s debt rating to near junk. I am not sure if that is a technical term or just Inman’s opinion. The actual rating they imposed was BBB- which stands for Bad Bad Bad I think. Bank of America’s deal is still on even though good ole B of A has a Rating Watch which is Negative. They may get a rating out of this as DDD. (You decide). Full steam ahead B of A, I am rooting for you.
In other news Henry Paulson (he has something to do with the Treasury Dept and is a forgettable politician for sure) has suggested that all mortgage brokers should be licensed and should be held to strict licensing standards. He must not know that most states already have these standards and they are pretty much worthless as are his suggestions. So here are some questions for Mr. Paulson, what is going to be different than the current laws that were supposed to regulate bad mortgage people? Also who’s going to enforce these great new laws, and do you think it will really do any good when it hasn’t so far. Do you think the crooks are going to stand down? Paulson is typical saying to much way to late with no concept of why things got the way they got. Mr. Paulson, go get oil prices reduced if you want to work on something. With leaders like this no wonder we are in the shape we are in.
Mortgage Fraud is worse than believed. (Are you kidding) (Who would have thunk it) A leader of a company who deals with Mortgage Fraud detection found 42,000 mortgages that had fraud in them and these are the ones they detected. The report said they hoped these loans were not made. (Exquise me) I think Mortgage Fraud being worse than believed is the understatement of the century. Good report however maybe you should send it to Mr. Paulson so he would have something else to talk about.
Now this; FHA reform hopeful of being passed. Problem is the politicians are fighting (among other things) over the maximum loan limits. I will believe the bill will get passed when I see it. This legislation has been in the works since 2006 and I will be shocked if it ever gets passed in the first place and short of loan amounts being increased it will do very little to help us dig out of the hole the industy is in. This is a wonderful commentary on just how worthless the political process can be. My guess it will never get passed, I hope I am wrong on this one.
On the good news it is reported by MARI that Fraud is spread more evenly among the states. We should all be relieved, shouldn’t we? These guys ought to be the opening act for Lewis Black. (He is a comic if you don't know) Lewis could really sink his teeth into this type of dribble.
Enough for now! Good Grief!
More to come
Lonny
Wednesday, March 12, 2008
BLOG BLOG
One of the definitions of a Blog might be a bunch of stuff written by a non writer that really has not much to do with anything except an opinion that falls on the ears of few and matters in fact to fewer. So a Blog Blog would be a multiple of that definition if you were into defining things. Some would say a Blog is like a diary of ones happenings and goings on so today you can choose one of the above definitions or choose anything else you like.
I was sitting in The Rail Head Restaurant at Montgomery and I30 yesterday and I was shaken out of my chair when a large explosion rocked the place. I thought something in the kitchen had blown up but actually an older gentleman had backed his car through the wall (I think it was a Town Car) and into the serving line. No one was hurt and if you saw the piece on the news it was reported that several people had to dive for their lives. No one was hurt luckily and from my perspective my day got less exciting after that. The old gentleman looked dazed after the accident and my guess he was dazed before the accident.
I was regrettably out of gas yesterday (in more ways than one I admit) and had the real pleasure of getting hosed at the gas pump. I will tell you I think we are in for a long line of getting hosed with the current trend of the speculators of oil. I keep looking for the upside for the consumer. The traders drive the price up and we have to buy the stuff no matter what. To me this seems like the perfect crime. I asked my X oil buddy Tommy what he thought about it and he theorized it was an attempt by one political party to overthrow the sentiment of the public so they would blame the other party so the vote would go the first groups’ way. Another theory is that the world is using oil like a currency now and with the declining value of the dollar so goes oil prices. I guess choose whatever theory you want and while you do don’t forget to bend over.
According to other news the FBI is investigating 14 other lenders along with Countrywide. This will probably turn into the mass incrimination of anyone associated with the sub prime melt down. I am glad I am not Countrywide. All the big banks will be exposed along with a lot of others before this is over.
Enough for today, I think I will head off to The Rail Head for Coffee this morning and see if I can get my day started off correctly.
More to come
Lonny
I was sitting in The Rail Head Restaurant at Montgomery and I30 yesterday and I was shaken out of my chair when a large explosion rocked the place. I thought something in the kitchen had blown up but actually an older gentleman had backed his car through the wall (I think it was a Town Car) and into the serving line. No one was hurt and if you saw the piece on the news it was reported that several people had to dive for their lives. No one was hurt luckily and from my perspective my day got less exciting after that. The old gentleman looked dazed after the accident and my guess he was dazed before the accident.
I was regrettably out of gas yesterday (in more ways than one I admit) and had the real pleasure of getting hosed at the gas pump. I will tell you I think we are in for a long line of getting hosed with the current trend of the speculators of oil. I keep looking for the upside for the consumer. The traders drive the price up and we have to buy the stuff no matter what. To me this seems like the perfect crime. I asked my X oil buddy Tommy what he thought about it and he theorized it was an attempt by one political party to overthrow the sentiment of the public so they would blame the other party so the vote would go the first groups’ way. Another theory is that the world is using oil like a currency now and with the declining value of the dollar so goes oil prices. I guess choose whatever theory you want and while you do don’t forget to bend over.
According to other news the FBI is investigating 14 other lenders along with Countrywide. This will probably turn into the mass incrimination of anyone associated with the sub prime melt down. I am glad I am not Countrywide. All the big banks will be exposed along with a lot of others before this is over.
Enough for today, I think I will head off to The Rail Head for Coffee this morning and see if I can get my day started off correctly.
More to come
Lonny
Monday, March 10, 2008
MORE NEWS OF THE DAY
It looks like mortgage originators will be able to make FHA loans up to the new maximums starting as early as this week. The new maximum loan amounts have been posted on the HUD web site and GMNA has agreed to include them in their mortgage backed securities. The thing I am still interested in seeing is if somehow the rates on these loans will be higher. My bet is they will have a higher interest rate. Just a guess but no one gets any breaks these days for sure.
It may not be so bad as both Fannie Mae and Freddie Mac have defined their next level of price fixing, I mean price gouging, oh my gosh another slip of the tongue. You know I have an opinion about most things. Both Fannie and Freddie have started to increase what they will charge originating lenders based on a combination of down payment and credit scores. That simply stated translates into higher rates and fees for the consumer. Now keep in mind this does not mean you have credit problems, just lower credit scores. Some people with perfect credit have low credit scores that will certainly be in this group of price gouges. Oops said it again, sorry!! It does not mean that you will get to pay less for mortgage insurance, nor does it mean that the groups that have to pay more are among those that spin off more risk to Fannie and Freddie. In my opinion since they can get more they are going to take this opportunity to do so.
What Fannie and Freddie will have to ask themselves (when people like me start using FHA anytime I can rather than even selling conventional loans) is where did all our business go. I guess they think we are all stupid and will just give them their excess profits because we like them. Better guess again. I think the combination of the price gouging, (gosh there I go again) and the increased FHA loan limit is going to kick their collective behinds. I for one am going to send them as few loans as I can.
Oh Countrywide and Mr. Mozolio, their chairman (I think that is the way you spell it) (actually I don't) are in the news again. Something about the FBI opening an investigation into insider trading and securities fraud. Something about Mozolio selling his stock in anticipation of the loans they originated going into the tank. I wonder what they will find out that everyone does not already know. Not to worry Bank of America still is planning on buying Countrywide for 200% of their current stock value. I think B of A is just the group to pull it off too. I bet they won't charge them any closing costs at the closing. Countrywide better watch the rate they get that is all I can tell them.
Things continue to get more interesting and we will see a lot more before all this is finished.
More to come
Lonny
It may not be so bad as both Fannie Mae and Freddie Mac have defined their next level of price fixing, I mean price gouging, oh my gosh another slip of the tongue. You know I have an opinion about most things. Both Fannie and Freddie have started to increase what they will charge originating lenders based on a combination of down payment and credit scores. That simply stated translates into higher rates and fees for the consumer. Now keep in mind this does not mean you have credit problems, just lower credit scores. Some people with perfect credit have low credit scores that will certainly be in this group of price gouges. Oops said it again, sorry!! It does not mean that you will get to pay less for mortgage insurance, nor does it mean that the groups that have to pay more are among those that spin off more risk to Fannie and Freddie. In my opinion since they can get more they are going to take this opportunity to do so.
What Fannie and Freddie will have to ask themselves (when people like me start using FHA anytime I can rather than even selling conventional loans) is where did all our business go. I guess they think we are all stupid and will just give them their excess profits because we like them. Better guess again. I think the combination of the price gouging, (gosh there I go again) and the increased FHA loan limit is going to kick their collective behinds. I for one am going to send them as few loans as I can.
Oh Countrywide and Mr. Mozolio, their chairman (I think that is the way you spell it) (actually I don't) are in the news again. Something about the FBI opening an investigation into insider trading and securities fraud. Something about Mozolio selling his stock in anticipation of the loans they originated going into the tank. I wonder what they will find out that everyone does not already know. Not to worry Bank of America still is planning on buying Countrywide for 200% of their current stock value. I think B of A is just the group to pull it off too. I bet they won't charge them any closing costs at the closing. Countrywide better watch the rate they get that is all I can tell them.
Things continue to get more interesting and we will see a lot more before all this is finished.
More to come
Lonny
Friday, March 7, 2008
WHY NOT
I must admit I have spent a lot of time wondering why a plan would not work that would simply give people the ability to buy a home who would agree to do certain things. Namely, as you recall; pay their bills on time for a period of 6 months, agree to counseling/training once a month for 6 months, not take on any more debt, and be otherwise qualified in earnings and employment.
Here is why, (my opinion as usual):
No one sees the magnitude of the problem. A large part of the population can’t buy and that is adding to more foreclosures and bigger inventories. Fewer people can buy homes for sale because they can’t qualify and qualification for mortgages is getting harder every day for a number of reasons. Loan programs are going away and unless I am imagining things more and more errors are on credit reports which in themselves ruin the ability for most to qualify.
It would just make common sense in this day and time to take a chance on people and let them buy a home to help dig housing out of the hole it is in. Problem is Government and common sense is an oxymoron. Most politicians are about themselves and the system is not set up to work it is set up to fail in matters such as these. To many self interests to ever agree on something that is so simple.
Credit scores are taken as gospel. Credit scores are an indicator of the past but are not in themselves an indicator of the future. Credit grantors report credit in error. A credit score can be ruined over night and not fixed for months if at all. Credit scores in many cases are arbitrary and not a good indicator. The credit reporting system is corrupt and riddled with errors.
Politicians think they know best. The two sides of the isle can’t agree on what is best for the consumer but would not bother asking the consumer what they would like to do. A consumer would gladly pay a higher FHA premium to get the chance to buy but politicians think that is bad. Consumers would gladly earn the ability to buy a home but politicians think that is discrimination. Everything is about free, now, and no consequences and no one has the courage to change it.
My plan would work and work well. VA has proved 100% loans work. HUD approved counselors will give you absolute statistics to show counseling does work and works well. Masses of people would jump at the chance to enter the program because their alternative is to live in overpriced rental units.
The reality is this; any program like this it is not likely to happen for the above reasons and a sin of others and that is truly unfortunate.
More to come
Lonny
Here is why, (my opinion as usual):
No one sees the magnitude of the problem. A large part of the population can’t buy and that is adding to more foreclosures and bigger inventories. Fewer people can buy homes for sale because they can’t qualify and qualification for mortgages is getting harder every day for a number of reasons. Loan programs are going away and unless I am imagining things more and more errors are on credit reports which in themselves ruin the ability for most to qualify.
It would just make common sense in this day and time to take a chance on people and let them buy a home to help dig housing out of the hole it is in. Problem is Government and common sense is an oxymoron. Most politicians are about themselves and the system is not set up to work it is set up to fail in matters such as these. To many self interests to ever agree on something that is so simple.
Credit scores are taken as gospel. Credit scores are an indicator of the past but are not in themselves an indicator of the future. Credit grantors report credit in error. A credit score can be ruined over night and not fixed for months if at all. Credit scores in many cases are arbitrary and not a good indicator. The credit reporting system is corrupt and riddled with errors.
Politicians think they know best. The two sides of the isle can’t agree on what is best for the consumer but would not bother asking the consumer what they would like to do. A consumer would gladly pay a higher FHA premium to get the chance to buy but politicians think that is bad. Consumers would gladly earn the ability to buy a home but politicians think that is discrimination. Everything is about free, now, and no consequences and no one has the courage to change it.
My plan would work and work well. VA has proved 100% loans work. HUD approved counselors will give you absolute statistics to show counseling does work and works well. Masses of people would jump at the chance to enter the program because their alternative is to live in overpriced rental units.
The reality is this; any program like this it is not likely to happen for the above reasons and a sin of others and that is truly unfortunate.
More to come
Lonny
Thursday, March 6, 2008
THE PROBLEM, THE SOLUTION
The problem with Down Payment Assistance is that HUD does not like it. They blame DPA for creating bad loans that borrowers can’t repay or choose not to repay. There is a higher incidence of default when there is not an investment in the property by the buyer I don’t doubt that, however; it must not be completely valid because VA loans have always been $0 down and have always performed very well.
The solution is to allow $0 down FHA loans and then set up a plan that insures a higher level of success by making the buyer earn the ability to get the 100% loan. This is accomplished through mandatory education and proper discipline during a 6 month period prior to buying the home. That is correct the buyer who wants the 100% financing must earn the ability to get it, it is not a give away and everyone can’t get it.
If the potential buyer wants a 100% loan then they must complete a 6 months training course where they learn such things as budgeting, credit basics, why making their mortgage payment on time is not a choice. At the end of 6 months if they have paid all their bills on time, have taken on no more debt and are otherwise qualified they get to apply for the 100% loan. Credit score would not matter; past credit history does not matter as long as they are not in bankruptcy or had a foreclosure. Sorry this is not for those who have had a foreclosure in the past 3 years. This would also teach the attendees how to stay out of the path of predatory lenders and those sellers who will take advantage of them.
The buyer pays a little higher insurance premium to FHA to offset the additional risk and is encouraged to put together a down payment during the 6 months they are in the training. Buyers would flock to the program to just get the chance to buy a home and there would be a high level of success with the program. Only the people that were serious would go through the program, the folks who want something for nothing or think they are entitled would not apply.
A good plan, I think so, will it ever become reality, I doubt it.
Why tomorrow:
More to come
Lonny
The solution is to allow $0 down FHA loans and then set up a plan that insures a higher level of success by making the buyer earn the ability to get the 100% loan. This is accomplished through mandatory education and proper discipline during a 6 month period prior to buying the home. That is correct the buyer who wants the 100% financing must earn the ability to get it, it is not a give away and everyone can’t get it.
If the potential buyer wants a 100% loan then they must complete a 6 months training course where they learn such things as budgeting, credit basics, why making their mortgage payment on time is not a choice. At the end of 6 months if they have paid all their bills on time, have taken on no more debt and are otherwise qualified they get to apply for the 100% loan. Credit score would not matter; past credit history does not matter as long as they are not in bankruptcy or had a foreclosure. Sorry this is not for those who have had a foreclosure in the past 3 years. This would also teach the attendees how to stay out of the path of predatory lenders and those sellers who will take advantage of them.
The buyer pays a little higher insurance premium to FHA to offset the additional risk and is encouraged to put together a down payment during the 6 months they are in the training. Buyers would flock to the program to just get the chance to buy a home and there would be a high level of success with the program. Only the people that were serious would go through the program, the folks who want something for nothing or think they are entitled would not apply.
A good plan, I think so, will it ever become reality, I doubt it.
Why tomorrow:
More to come
Lonny
Wednesday, March 5, 2008
APPRAISALS AND DOWN PAYMENT ASSISTANCE
Concerning the new appraisal restrictions imposed by FNMA and FHLMC, the Mortgage Brokers Association is considering legal action to stop the impending implementation of the new standards. If you recall this would take the appraisal selection process out of the hands of the brokers. The MBA maintains that the action by Andrew Cuomo amount to “de facto regulatory action” that avoids the proper regulatory process. I am not sure I agree or disagree not being the lawyer type but I will tell you I don’t blame the MBA for taking such action.
Among other things it will put honest and ethical honest mortgage brokers at a competitive disadvantage and will not in itself make the appraisal selection process fool proof. If you have a lender/wholesaler who does not mind breaking the rules it will be easy to create a network of like minded brokers, lenders and appraisers and beat the intent of the regulation anyway. This is just another play by those who would like to see brokers go away when there is still plenty of room for the good ones in the market. It keeps the big boys more competitive and that is good.
In other news, the U.S District Court for the Eastern District of California has ruled against the Department of Housing and Urban Development’s ban on seller funded down payment assistance. A little background if you don’t know. DPA companies who are “non profit” by definition started providing down payment assistance funds by getting the funds from the seller, sending then through their companies charging a fee in the middle and then sending the money to the buyer of the home. It really just makes 100% financing available on FHA loans which HUD does not like. HUD tried to get rid of it, Nehemiah Corp. sued HUD, won the suit and they among otherS sued HUD again this last round and have won again.
In the HUD reform legislation currently pending HUD is once again trying to disallow DPA programs by regulation so the DPA companies will have another battle on their hands. I personally don’t ever think DPA will go away because it makes home loans available to consumers who can’t get the down payment and who would be good homeowners. (That is very politically correct and that is what matters these days as you know). If you take the abuse out of the system, control those who can inflate appraisals because they control or own the appraisers and underwrite the loans properly DPA can and does work. Our problem is not the program it is the fact that HUD does not regulate the bad guys and the bad guys get away with whatever they want. Of course that would be my opinion wouldn’t it!!!
A better solution tomorrow:
More to come,
Lonny
Among other things it will put honest and ethical honest mortgage brokers at a competitive disadvantage and will not in itself make the appraisal selection process fool proof. If you have a lender/wholesaler who does not mind breaking the rules it will be easy to create a network of like minded brokers, lenders and appraisers and beat the intent of the regulation anyway. This is just another play by those who would like to see brokers go away when there is still plenty of room for the good ones in the market. It keeps the big boys more competitive and that is good.
In other news, the U.S District Court for the Eastern District of California has ruled against the Department of Housing and Urban Development’s ban on seller funded down payment assistance. A little background if you don’t know. DPA companies who are “non profit” by definition started providing down payment assistance funds by getting the funds from the seller, sending then through their companies charging a fee in the middle and then sending the money to the buyer of the home. It really just makes 100% financing available on FHA loans which HUD does not like. HUD tried to get rid of it, Nehemiah Corp. sued HUD, won the suit and they among otherS sued HUD again this last round and have won again.
In the HUD reform legislation currently pending HUD is once again trying to disallow DPA programs by regulation so the DPA companies will have another battle on their hands. I personally don’t ever think DPA will go away because it makes home loans available to consumers who can’t get the down payment and who would be good homeowners. (That is very politically correct and that is what matters these days as you know). If you take the abuse out of the system, control those who can inflate appraisals because they control or own the appraisers and underwrite the loans properly DPA can and does work. Our problem is not the program it is the fact that HUD does not regulate the bad guys and the bad guys get away with whatever they want. Of course that would be my opinion wouldn’t it!!!
A better solution tomorrow:
More to come,
Lonny
Monday, March 3, 2008
IMPENDING APPRAISAL LAW
In the fraud infested recent past of the mortgage industry there have been plenty of appraisers who have inflated values and were responsible for creating a lot of the problems we are having today. There has been plenty of talk of creating a system that would make the appraisals less controlled by the loan originators and I saw an article that has done just that.
In New York, (and I guess it is only in New York) Fannie Mae and Freddie Mac have signed a settlement with New York Attorney General Andrew Cuomo which implements new appraisal standards which go into effect in Jan. 2009. It says basically that anyone selling loans to Fannie or Freddie can’t use in house or affiliated appraisal firms which Cuomo suggests are pressured into hitting the value by the institutions. Countywide for one owns their own appraisal firm as I recall. Mr. Cuomo said the settlement will transform appraisal practices by state and federally regulated banks that had pressured appraisers to inflate appraisals.
It also requires lenders on brokered loans to certify that the mortgage broker did not select the appraiser. I am a bit confused here, if the originating lender can't pick the appraiser then who does. I guess that suggests that the lender who is closing the loan must select the appraiser or God forbid maybe some government agency appraisal system is set up.
"Now national banks have a clear choice: immediately adopt the new code and clean up fraud in the mortgage industry or stop doing business with Fannie Mae and Freddie Mac," Mr. Cuomo said.
"For the banking regulators, this is kind of tough to swallow because the practices that they had permitted are prohibited by this agreement," mortgage banking consultant Howard Glaser said.
When I was in the banking business a while back, (what a nightmare) the regulators wanted appraisers chosen on a completely random basis to keep there from being any pressure put on the appraiser by the lender or the loan officer. At that time it was suggested that banks should choose the appraiser from a random list. On the surface this does not sound like a bad idea but it does not address the quality of the appraisal itself or service levels competitive pricing etc. No doubt there are a lot of appraisers who don't mind inflating values but that could still happen in any plan. I fear, however, the reality of this is too allow to many appraisers the ability to control the market rather than the market controlling the market. The market has always existed with a borrower and seller agreeing on the price of the home and that set the market value. Appraisals were ordered so the lender would feel comfortable with the amount of loan given. Appraisers always were aware of the value and did not try to jeopardize the deal if the sales price hit in a comfortable range of value. There have always been those appraisers who thought they were smarter than or above the market and should set the values themselves regardless of what the buyer and seller wanted. These guys are as dangerous in my opinion today as those who would inflate the value.
If the law that was agreed to in New York is not administered properly and then is duplicated in other states I fear it will just worsen the problem of deflating values and that is just what we don’t need.
Honest lenders should be able to hire honest appraisers and those appraisers should regulate themselves and be professional in their practices. If they don't want to loose their independence they better get busy.
This one will be interesting to watch for sure.
More to come
Lonny
In New York, (and I guess it is only in New York) Fannie Mae and Freddie Mac have signed a settlement with New York Attorney General Andrew Cuomo which implements new appraisal standards which go into effect in Jan. 2009. It says basically that anyone selling loans to Fannie or Freddie can’t use in house or affiliated appraisal firms which Cuomo suggests are pressured into hitting the value by the institutions. Countywide for one owns their own appraisal firm as I recall. Mr. Cuomo said the settlement will transform appraisal practices by state and federally regulated banks that had pressured appraisers to inflate appraisals.
It also requires lenders on brokered loans to certify that the mortgage broker did not select the appraiser. I am a bit confused here, if the originating lender can't pick the appraiser then who does. I guess that suggests that the lender who is closing the loan must select the appraiser or God forbid maybe some government agency appraisal system is set up.
"Now national banks have a clear choice: immediately adopt the new code and clean up fraud in the mortgage industry or stop doing business with Fannie Mae and Freddie Mac," Mr. Cuomo said.
"For the banking regulators, this is kind of tough to swallow because the practices that they had permitted are prohibited by this agreement," mortgage banking consultant Howard Glaser said.
When I was in the banking business a while back, (what a nightmare) the regulators wanted appraisers chosen on a completely random basis to keep there from being any pressure put on the appraiser by the lender or the loan officer. At that time it was suggested that banks should choose the appraiser from a random list. On the surface this does not sound like a bad idea but it does not address the quality of the appraisal itself or service levels competitive pricing etc. No doubt there are a lot of appraisers who don't mind inflating values but that could still happen in any plan. I fear, however, the reality of this is too allow to many appraisers the ability to control the market rather than the market controlling the market. The market has always existed with a borrower and seller agreeing on the price of the home and that set the market value. Appraisals were ordered so the lender would feel comfortable with the amount of loan given. Appraisers always were aware of the value and did not try to jeopardize the deal if the sales price hit in a comfortable range of value. There have always been those appraisers who thought they were smarter than or above the market and should set the values themselves regardless of what the buyer and seller wanted. These guys are as dangerous in my opinion today as those who would inflate the value.
If the law that was agreed to in New York is not administered properly and then is duplicated in other states I fear it will just worsen the problem of deflating values and that is just what we don’t need.
Honest lenders should be able to hire honest appraisers and those appraisers should regulate themselves and be professional in their practices. If they don't want to loose their independence they better get busy.
This one will be interesting to watch for sure.
More to come
Lonny
Sunday, March 2, 2008
WHAT'S UP / WHAT HAPPENED
The title of today's Blog are the words that were sent to me, (well I changed just a little bit) from my friend Paul who is a reader of the Blog. I actually have two Paul's, not one, that read the Blog regularly. Actually 3 if you count my son who's middle name is Paul. I think the last Blog posting was on Feb. 18th or so. I must admit not much seems to be happening different in the things I tend to watch. I admire reporters who find a way to restate the same thing day in and day out and make it sound different.
Just a quick side bar, I was watching a Hillary ad this morning and I actually liked what it said. No worries, I have taped my mouth shut and my counselor has agreed to see me at 6 AM in the morning. She is concerned, very concerned!!!
Since the last posting rates started going up every day for what at least I think was no good reason and now they have started coming down again for the same no good reason they went up. Oh don't get me wrong there were plenty of reasons, I just don't understand what the relevance is in the reason as it relates to the real problem. Rates should be low in my opinion as oil prices and energy costs continue to gut the consumer from spending their money on things they would rather have. To me that creates inflation of the worst kind because the consumer can't make a choice not to buy. We may see that before long however. Rates today are just about where they were before the Fed. made the initial rate cut. All that flap hoop and holler so a lot of people could trade a lot of interest rate paper to make or lose a lot of money. Far be it from me to understand all that.
The stimulus bill made it possible to make a higher loan limit FHA loan which would help the ailing mortgage industry and a lot of want to be home buyers who have been underwritten out of the ability to own a home or who have been priced gouged because their good credit and average credit score have made it hard to make the inflated payment. But about the limit, mortgage loans are not available yet because of all the wrangling by all the politicians and greedy people trying to see how much profit can be made instead of just making the loans. Just my opinion of course.
I read where the FHA Reform bill was close to passage but a compromise by the Mortgage Bankers is to not challenge allowing Down Payment Assistance programs. That is fine but more buyers will lose the ability too buy a home. Why, 100% loans are becoming available for only the best credit buyers and FHA does not and if I can see the current trend will not allow for a 100% loan. 100% loans can be a reality if FHA would just be careful about it and offer an incentive not to get one. Fat chance if you ask me for that. If you don't think it will work just look at the VA model it has worked very well since day 1. Could FHA be the problem and not 100% loans. DUH!!!
Countrywide is being sued for loan fraud, I am sure the lawyers are licking their chops over that. Merrill Lynch finally dumped First Franklin which was their sub prime company nightmare. RIP sub prime loans, as least as we knew them. Lots of politicians trying to create lots of Predatory Lending laws to make people be ethical and responsible to the customer. Just as well go golfing boys, ain't gonna happen.
Well how bout that, everything is just about the same, or at least so it seems.
More to come
Lonny
Just a quick side bar, I was watching a Hillary ad this morning and I actually liked what it said. No worries, I have taped my mouth shut and my counselor has agreed to see me at 6 AM in the morning. She is concerned, very concerned!!!
Since the last posting rates started going up every day for what at least I think was no good reason and now they have started coming down again for the same no good reason they went up. Oh don't get me wrong there were plenty of reasons, I just don't understand what the relevance is in the reason as it relates to the real problem. Rates should be low in my opinion as oil prices and energy costs continue to gut the consumer from spending their money on things they would rather have. To me that creates inflation of the worst kind because the consumer can't make a choice not to buy. We may see that before long however. Rates today are just about where they were before the Fed. made the initial rate cut. All that flap hoop and holler so a lot of people could trade a lot of interest rate paper to make or lose a lot of money. Far be it from me to understand all that.
The stimulus bill made it possible to make a higher loan limit FHA loan which would help the ailing mortgage industry and a lot of want to be home buyers who have been underwritten out of the ability to own a home or who have been priced gouged because their good credit and average credit score have made it hard to make the inflated payment. But about the limit, mortgage loans are not available yet because of all the wrangling by all the politicians and greedy people trying to see how much profit can be made instead of just making the loans. Just my opinion of course.
I read where the FHA Reform bill was close to passage but a compromise by the Mortgage Bankers is to not challenge allowing Down Payment Assistance programs. That is fine but more buyers will lose the ability too buy a home. Why, 100% loans are becoming available for only the best credit buyers and FHA does not and if I can see the current trend will not allow for a 100% loan. 100% loans can be a reality if FHA would just be careful about it and offer an incentive not to get one. Fat chance if you ask me for that. If you don't think it will work just look at the VA model it has worked very well since day 1. Could FHA be the problem and not 100% loans. DUH!!!
Countrywide is being sued for loan fraud, I am sure the lawyers are licking their chops over that. Merrill Lynch finally dumped First Franklin which was their sub prime company nightmare. RIP sub prime loans, as least as we knew them. Lots of politicians trying to create lots of Predatory Lending laws to make people be ethical and responsible to the customer. Just as well go golfing boys, ain't gonna happen.
Well how bout that, everything is just about the same, or at least so it seems.
More to come
Lonny
Saturday, February 16, 2008
WHAT'S NEW
HMMMM well lets see. I read that Countrywide is posting record foreclosures in fact they were twice as high as January last year. Who said you reap what you sew? I don’t think I have read recently that Bank of America is just so excited to buy Countrywide but I am sure they are. I know I would be if I was the biggest ego bank of the world. Watch out for that reaper!!!!
A lot of big lenders have put a moratorium on foreclosures for 30 days to see if some of the folks who are going to foreclosure could work out some options. I didn’t know you could get a call returned in 30 days. All kidding aside I think the industry sees the benefit of doing whatever it can to slow down the foreclosure snowball. I know a young man who works in that area for CW and tells me that most buyers don’t trust their mortgage company enough to even talk to them. Imagine that?????
The president did sign the economic stimulus bill which is good, I still am not sure how much money I am going to get but I am checking the mailbox everyday for sure. I can’t decide what I am going to do with my money. I think Karren wants a new sink for the kitchen she is fixing to remodel. Maybe she will find the check and spend it before I get the chance. I was thinking about putting it back into the economy where I knew it counted and buying as much beer as I could. I hope my Govt. check is big; I am going to need it if I reach my economic dreams.
One thing the economic stimulus bill did was to raise the maximum loan amounts for regular conventional loans. That won’t be for the Dallas Fort Worth area since we are not a high cost area. Pity!!! Also the FHA limit was raised to just over $271,000.00. Now that would be great for this area and would help plenty with our market but guess what. We can’t make the loans yet because all the greedy folks are now trying to figure out how to make a bigger profit ON them. I am not sure who all oF “them” are but you can bet the politicians and Wall Street is in there for sure. Instead of just saying yes lets do something that makes total sense and could help, “them” is trying to decide that these loans need to be in a different kind of security and all kind of other things so guess what, the price of loans, (the interest rate) will be higher and more profit will be made. Greed all the way baby.
Oh yes if you don't think Hillary is a big enough screw up already, read the following article:
http://www.chicagotribune.com/news/columnists/chi-080217chapman-column,1,4589006.column
Enough for this addition, good grief!!!
More to come
Lonny
A lot of big lenders have put a moratorium on foreclosures for 30 days to see if some of the folks who are going to foreclosure could work out some options. I didn’t know you could get a call returned in 30 days. All kidding aside I think the industry sees the benefit of doing whatever it can to slow down the foreclosure snowball. I know a young man who works in that area for CW and tells me that most buyers don’t trust their mortgage company enough to even talk to them. Imagine that?????
The president did sign the economic stimulus bill which is good, I still am not sure how much money I am going to get but I am checking the mailbox everyday for sure. I can’t decide what I am going to do with my money. I think Karren wants a new sink for the kitchen she is fixing to remodel. Maybe she will find the check and spend it before I get the chance. I was thinking about putting it back into the economy where I knew it counted and buying as much beer as I could. I hope my Govt. check is big; I am going to need it if I reach my economic dreams.
One thing the economic stimulus bill did was to raise the maximum loan amounts for regular conventional loans. That won’t be for the Dallas Fort Worth area since we are not a high cost area. Pity!!! Also the FHA limit was raised to just over $271,000.00. Now that would be great for this area and would help plenty with our market but guess what. We can’t make the loans yet because all the greedy folks are now trying to figure out how to make a bigger profit ON them. I am not sure who all oF “them” are but you can bet the politicians and Wall Street is in there for sure. Instead of just saying yes lets do something that makes total sense and could help, “them” is trying to decide that these loans need to be in a different kind of security and all kind of other things so guess what, the price of loans, (the interest rate) will be higher and more profit will be made. Greed all the way baby.
Oh yes if you don't think Hillary is a big enough screw up already, read the following article:
http://www.chicagotribune.com/news/columnists/chi-080217chapman-column,1,4589006.column
Enough for this addition, good grief!!!
More to come
Lonny
Tuesday, February 12, 2008
CURRENT LEGISLATION
There has been a lot of legislation of late. Some has past and some has not. I will focus a bit on those that would seem to affect our business and the current issues we are facing.
Mortgage Fraud: The only piece of legislation that seems to have been made into law is that which makes mortgage fraud illegal. The problem is that mortgage fraud was already illegal and there are not enough cops to enforce the current laws we have. There are a lot of people going to jail and there will be a lot more but to simply pass more laws to expand or redefine the definition is not likely to help with the problem. Those criminals who perpetrate mortgage fraud are here to stay just like car thieves and drug dealers.
Predatory Lending: Many well meaning politicians have come to the rescue to try to pass legislation dealing with Predatory Lending. The problem is today as it has been for the last decade is simply you can’t define Predatory Lending to the point that any law would make sense. What is predatory to one group is a business model to another and short of price fixing there will never be any middle ground on this that can be put into an enforceable law. Buyer beware is today and in the future will be the buzz word for anyone entering into the mortgage lending arena. The lawmakers would love to pass laws that would require lenders to all be ethical but it just won’t happen. Most politicians need to understand it themselves in my opinion.
Mortgage Reform: Now this hits on a broad base for sure. Let's take an example dealing with FHA loans. FHA reform was a hot topic and well it should be. FHA was created to help the regular guy get a loan when regular sources were not available and FHA sure needs a new look. The current reform package needs to raise the FHA loan limit, allow for risk based pricing, and redefine what it takes to get an FHA loan. When FHA loans were created people had the ability to get money for down payment and for the most part had good credit or could at least access a system that would help them get it corrected. The politicians have killed anything that might help people buy homes because they just don’t get it, won’t listen, and really don’t care. FHA reform as goes with most smart legislation is gone with the wind.
There is certainly more legislation out there currently and more to come but a focus should be how to get more buyers qualified to buy the glut of homes on the market and those to come. From the looks of things, that just won’t happen.
More to come
Lonny
Mortgage Fraud: The only piece of legislation that seems to have been made into law is that which makes mortgage fraud illegal. The problem is that mortgage fraud was already illegal and there are not enough cops to enforce the current laws we have. There are a lot of people going to jail and there will be a lot more but to simply pass more laws to expand or redefine the definition is not likely to help with the problem. Those criminals who perpetrate mortgage fraud are here to stay just like car thieves and drug dealers.
Predatory Lending: Many well meaning politicians have come to the rescue to try to pass legislation dealing with Predatory Lending. The problem is today as it has been for the last decade is simply you can’t define Predatory Lending to the point that any law would make sense. What is predatory to one group is a business model to another and short of price fixing there will never be any middle ground on this that can be put into an enforceable law. Buyer beware is today and in the future will be the buzz word for anyone entering into the mortgage lending arena. The lawmakers would love to pass laws that would require lenders to all be ethical but it just won’t happen. Most politicians need to understand it themselves in my opinion.
Mortgage Reform: Now this hits on a broad base for sure. Let's take an example dealing with FHA loans. FHA reform was a hot topic and well it should be. FHA was created to help the regular guy get a loan when regular sources were not available and FHA sure needs a new look. The current reform package needs to raise the FHA loan limit, allow for risk based pricing, and redefine what it takes to get an FHA loan. When FHA loans were created people had the ability to get money for down payment and for the most part had good credit or could at least access a system that would help them get it corrected. The politicians have killed anything that might help people buy homes because they just don’t get it, won’t listen, and really don’t care. FHA reform as goes with most smart legislation is gone with the wind.
There is certainly more legislation out there currently and more to come but a focus should be how to get more buyers qualified to buy the glut of homes on the market and those to come. From the looks of things, that just won’t happen.
More to come
Lonny
Monday, February 11, 2008
RATES
As promised today starts a series of Blogs dealing with what is happening in the mortgage world today. Now don’t confuse this with anything other than what my opinion might be. For instance I know little about interest rates and what makes them do the things they do on a daily basis. My comments will be more directed to how rate changes apply to a borrower who is trying to make sense out of what he or she hears on a daily basis. The one thing I do advise my customers to do is this: If you hear me say rates will go one way or the other then do the opposite of the thing I tell you to do because I am usually wrong.
So what is happening with interest rates? The first thing you need to know is that what the Federal Reserve does has no guaranteed effect on what mortgage rates do. I did ask one person who writes an article to explain it to me one day and in his arrogant way he explained that. If the market perceives a Fed interest rate cut to be non necessary then mortgage interest rates will go up. If the market thinks the Fed made a good decision based on the state of the economy then mortgage rates will come down. Maybe he is correct and maybe not, nothing happens the same in all cases.
Now this is a fact, the rates at my company were lower before the Fed cut the interest rates than they are today. Now remember the Fed has cut rates twice in the recent past. Everyone that I talked to who was trying to make a decision on their loan immediately thought interest rates on mortgages would come down. Not so, and if you ask me what rates will do in the near future I will tell you they may go up, or they may come down, or they may stay the same. Now the smart people tell me that rates could really come down or really go up based on some kind of formula that I don’t really understand.
Remember this, mortgage rates are fairly stable and have been for a long time within a narrow range. Some time ago I thought rates would stay within 1% of 6.5% on the up side and down side and I think if you will look it has been that way for a long time. Maybe just a safe guess, but still accurate all the same. Now is a great time to buy a home, rates are on the low side of the average that I think we will continue to have and home prices are on the low side currently based on the current situation.
More to come
Lonny
So what is happening with interest rates? The first thing you need to know is that what the Federal Reserve does has no guaranteed effect on what mortgage rates do. I did ask one person who writes an article to explain it to me one day and in his arrogant way he explained that. If the market perceives a Fed interest rate cut to be non necessary then mortgage interest rates will go up. If the market thinks the Fed made a good decision based on the state of the economy then mortgage rates will come down. Maybe he is correct and maybe not, nothing happens the same in all cases.
Now this is a fact, the rates at my company were lower before the Fed cut the interest rates than they are today. Now remember the Fed has cut rates twice in the recent past. Everyone that I talked to who was trying to make a decision on their loan immediately thought interest rates on mortgages would come down. Not so, and if you ask me what rates will do in the near future I will tell you they may go up, or they may come down, or they may stay the same. Now the smart people tell me that rates could really come down or really go up based on some kind of formula that I don’t really understand.
Remember this, mortgage rates are fairly stable and have been for a long time within a narrow range. Some time ago I thought rates would stay within 1% of 6.5% on the up side and down side and I think if you will look it has been that way for a long time. Maybe just a safe guess, but still accurate all the same. Now is a great time to buy a home, rates are on the low side of the average that I think we will continue to have and home prices are on the low side currently based on the current situation.
More to come
Lonny
Friday, February 8, 2008
NEXT WEEK
Well I am up to speed technically so to speak and getting fired up again to post more regular blogs. Next Monday I will start a series on where I think the mortgage loan industry is today and where it is headed tomorrow. I can sense the anticipation in you already!!
More to come, I promise
Lonny
More to come, I promise
Lonny
Tuesday, February 5, 2008
HAPPY BIRTHDAY
My aunt Myrna asked me this morning when I was going to get back to posting my blogs on a regular basis. I must admit I called to tell her happy birthday one day late. I made up a rather lame excuse but as luck would have it she forgave me. As I recall last year I asked her to go to lunch, she did and then I had forgotten my credit card. I can never remember doing that in my life. She paid the bill, (it was a great lunch as I recall). She forgave me for forgetting my card.
The story gets even worse, I told her I would pay it back and I don't remember ever doing that. I hope she forgot so I don't have to be forgiven once again. With all that going against me, today I called a day late to wish her happy birthday. Man I better get with it pretty fast. My luck may be running low. I am not sure how forgivable I am at this stage.
Anyway back to the blog, she encouraged me to keep going with it as she enjoys reading it. May be something to do with the fact that she really is quite supportive of the things I do now and have done in my life.
And for that, this one is for Myrna!!!
With love
More to come
Lonny
The story gets even worse, I told her I would pay it back and I don't remember ever doing that. I hope she forgot so I don't have to be forgiven once again. With all that going against me, today I called a day late to wish her happy birthday. Man I better get with it pretty fast. My luck may be running low. I am not sure how forgivable I am at this stage.
Anyway back to the blog, she encouraged me to keep going with it as she enjoys reading it. May be something to do with the fact that she really is quite supportive of the things I do now and have done in my life.
And for that, this one is for Myrna!!!
With love
More to come
Lonny
Monday, February 4, 2008
WHERE HAVE I BEEN
You may have noticed that I have been a little non consistent in my posts of late. Really short of turning this into a diary I am looking for something different in the mortgage news or in my personal travels that might be worth blogging about. I am not finding much of late except the status quo seems to be the status quo. My home computer died and we did not ever back it up. Don't make that mistake as I did. My hard drive with years of stuff is gone and can't be recovered for less than $2000.00. OUCH!!
I had a nightmare the other night that Bill Clinton was in fact our new first lady. I woke up with a knife in my hand pressed against my neck screaming it can't be so!!! I guess something could be worse but I can't imagine what. That would be my opinion of course.
I listened to a conservative radio talk show host in the metroplex the other morning go on and on about us part time bloggers who thought we were writers and without really having a clue. That certainly hit close to home.
With all that said be patient, I am convinced there is:
More to come
Lonny
I had a nightmare the other night that Bill Clinton was in fact our new first lady. I woke up with a knife in my hand pressed against my neck screaming it can't be so!!! I guess something could be worse but I can't imagine what. That would be my opinion of course.
I listened to a conservative radio talk show host in the metroplex the other morning go on and on about us part time bloggers who thought we were writers and without really having a clue. That certainly hit close to home.
With all that said be patient, I am convinced there is:
More to come
Lonny
Wednesday, January 30, 2008
UNFORTUNATE REALITY PART 2
Part 2, thanks Paul for the contibution,
Nikita Bailey, an activist with the non-profit Center for Responsible Lending, warned that the mortgage crisis could empty the pockets of African-Americans.
"Today the subprime market is poised to bring about the greatest drain of wealth the African-American community has ever experienced," Bailey told AFP. "It is a financial apartheid no doubt about it."
For Cleveland Plain Dealer columnist Phillip Morris, the extent of the devastation is comparable to that wrought by Hurricane Katrina, which devastated New Orleans in 2005.
In the hardest-hit suburb of Cleveland, "nearly 24,000 people have lost their homes to Cleveland's Katrina," he told AFP.
"Families left behind furniture, clothing even family photos."
In the hardest-hit district of New Orleans, the real Katrina destroyed about 13,700 houses, displacing some 35,000 people, Morris said.
"More than two years later, 6,000 homeowners (in St. Bernard Parish) have each received an average 65,000 dollars in government funds to rebuild their American Dreams. But in Cleveland and its suburbs, there is no disaster relief, no presidential visits, no good Samaritans to helps us."
"It would have been better if it was an earthquake or a hurricane, we respond better to natural disasters than to men in suits disasters," said city councilor Zach Reid.
In the streets, shops, suburbs and restaurants, resentment against the government and the Washington elite flourishes.
"People in Washington -- George Bush, the US Senate, the US Congress -- witnessed it, they stood by and they didn't do nothing to stop it," said Cleveland resident John Brett.
"It was almost like they were on the Titanic, and they could see the iceberg coming and they did nothing about it," he said sitting at the counter of the Velvet Dog Bar.
"They wrecked our American dreams, the willingness to own a home," he said. "Even during the Great Depression we did not see the number of homes and properties abandoned like we are seeing now."
More to come
Lonny
Nikita Bailey, an activist with the non-profit Center for Responsible Lending, warned that the mortgage crisis could empty the pockets of African-Americans.
"Today the subprime market is poised to bring about the greatest drain of wealth the African-American community has ever experienced," Bailey told AFP. "It is a financial apartheid no doubt about it."
For Cleveland Plain Dealer columnist Phillip Morris, the extent of the devastation is comparable to that wrought by Hurricane Katrina, which devastated New Orleans in 2005.
In the hardest-hit suburb of Cleveland, "nearly 24,000 people have lost their homes to Cleveland's Katrina," he told AFP.
"Families left behind furniture, clothing even family photos."
In the hardest-hit district of New Orleans, the real Katrina destroyed about 13,700 houses, displacing some 35,000 people, Morris said.
"More than two years later, 6,000 homeowners (in St. Bernard Parish) have each received an average 65,000 dollars in government funds to rebuild their American Dreams. But in Cleveland and its suburbs, there is no disaster relief, no presidential visits, no good Samaritans to helps us."
"It would have been better if it was an earthquake or a hurricane, we respond better to natural disasters than to men in suits disasters," said city councilor Zach Reid.
In the streets, shops, suburbs and restaurants, resentment against the government and the Washington elite flourishes.
"People in Washington -- George Bush, the US Senate, the US Congress -- witnessed it, they stood by and they didn't do nothing to stop it," said Cleveland resident John Brett.
"It was almost like they were on the Titanic, and they could see the iceberg coming and they did nothing about it," he said sitting at the counter of the Velvet Dog Bar.
"They wrecked our American dreams, the willingness to own a home," he said. "Even during the Great Depression we did not see the number of homes and properties abandoned like we are seeing now."
More to come
Lonny
UNFORTUNATE REALITY
Paul who has become a avid reader of the blog asked that you consider this today and tomorrow, it is an unfortunate reality.
US blacks see 'financial apartheid' in subprime crisis
Jan 27 02:19 PM US/Eastern
They had small means and big hopes of owning a house. But African-Americans snared in the US mortgage crisis have seen the American dream turn into a nightmare many call "financial apartheid."
The storm triggered by risky "subprime" loans has left many in ruins, forced out of their modest homes and furious at falling victim to financial dealings that have taken a particular toll on minority families.
"People of color are more than three times more likely to have subprime loans," concluded the organization United for a Fair Economy in a recent report which estimated that minorities have seen between 163 billion and 278 billion dollars of their equity go up in smoke since 2000.
With its weakened economy and a large black population more used to renting, Cleveland has become a poster child of the subprime crisis in a country where some 2.1 million borrowers are behind on their mortgage payments.
City officials estimate that foreclosures have swallowed some 70,000 homes and turned entire neighborhoods into ghost towns.
The city has responded by suing lenders, accusing them of targeting black borrowers and steering them to the loans granted with few formalities and at hefty interest rates to people with poor credit histories.
In this city where nearly 27 percent of the population lives under the poverty line -- about 20,000 dollars a year for a family of four -- many have a friend, a cousin, a brother, a co-worker or a neighbor who lost a home because they could no longer make their monthly payments once their adjustable rates jumped.
"Cleveland, Detroit, Baltimore (are) cities where lots of people of color live and what do they have in common? They are hit by the foreclosures meltdown. Is it a coincidence?" said Jesse Tinsley, who lives in the low-income Mount Pleasant neighborhood.
"When the wave of foreclosures blighted our neighborhood, members of our community rang the alarm. Nobody did anything. Now that white suburbs are hit, the city hall discovered foreclosures," he said.
"The mayor didn't do anything for our community for four years, they said 'they deserved it.' Now everybody noticed that we have been targeted by greedy people."
Second part tomorrow
More to come
Lonny
US blacks see 'financial apartheid' in subprime crisis
Jan 27 02:19 PM US/Eastern
They had small means and big hopes of owning a house. But African-Americans snared in the US mortgage crisis have seen the American dream turn into a nightmare many call "financial apartheid."
The storm triggered by risky "subprime" loans has left many in ruins, forced out of their modest homes and furious at falling victim to financial dealings that have taken a particular toll on minority families.
"People of color are more than three times more likely to have subprime loans," concluded the organization United for a Fair Economy in a recent report which estimated that minorities have seen between 163 billion and 278 billion dollars of their equity go up in smoke since 2000.
With its weakened economy and a large black population more used to renting, Cleveland has become a poster child of the subprime crisis in a country where some 2.1 million borrowers are behind on their mortgage payments.
City officials estimate that foreclosures have swallowed some 70,000 homes and turned entire neighborhoods into ghost towns.
The city has responded by suing lenders, accusing them of targeting black borrowers and steering them to the loans granted with few formalities and at hefty interest rates to people with poor credit histories.
In this city where nearly 27 percent of the population lives under the poverty line -- about 20,000 dollars a year for a family of four -- many have a friend, a cousin, a brother, a co-worker or a neighbor who lost a home because they could no longer make their monthly payments once their adjustable rates jumped.
"Cleveland, Detroit, Baltimore (are) cities where lots of people of color live and what do they have in common? They are hit by the foreclosures meltdown. Is it a coincidence?" said Jesse Tinsley, who lives in the low-income Mount Pleasant neighborhood.
"When the wave of foreclosures blighted our neighborhood, members of our community rang the alarm. Nobody did anything. Now that white suburbs are hit, the city hall discovered foreclosures," he said.
"The mayor didn't do anything for our community for four years, they said 'they deserved it.' Now everybody noticed that we have been targeted by greedy people."
Second part tomorrow
More to come
Lonny
Monday, January 28, 2008
COULD IT BE TRUE
One of the things I have been continuing to say as the mortgage crisis deepens is what will be found out about what the real predators do and who the bad lenders really are. Everyone has a stake in the game that is in the game but are the biggest predators of all the commercial banks who have been the people who you really should be able to trust? The article below is just one article of many I read on a daily basis but this one is a little different. Its author details what he believes to be the truth about one certain big bank and their tactics and the profits and the opportunity for profits gained by their predatory practices. If one big bank is doing it can the others be far behind them? What do you think????
http://www.americanchronicle.com/articles/50345
The thing I noticed not in the article itself but outside the article were the ads for mortgage companies. The article slams and accuses mortgage lenders and still mortgage lenders advertise in the midst of it. One company listed at the bottom of the article could be seen as one of the largest predatory sub prime lenders who has been a leader in the types of mortgages discussed in the article. The irony is that even when people are subject to all the scams and tactics of the predatory lenders, lenders still can advertise anything they want to anyone they want with little or no consequences. Buyer beware is still the name of the game in the mortgage world. Make no mistake about it loss of business ethics and greed are here to stay.
More to come
Lonny
http://www.americanchronicle.com/articles/50345
The thing I noticed not in the article itself but outside the article were the ads for mortgage companies. The article slams and accuses mortgage lenders and still mortgage lenders advertise in the midst of it. One company listed at the bottom of the article could be seen as one of the largest predatory sub prime lenders who has been a leader in the types of mortgages discussed in the article. The irony is that even when people are subject to all the scams and tactics of the predatory lenders, lenders still can advertise anything they want to anyone they want with little or no consequences. Buyer beware is still the name of the game in the mortgage world. Make no mistake about it loss of business ethics and greed are here to stay.
More to come
Lonny
Friday, January 25, 2008
WHATS NEW
Well lets see whats new. It could be the...., no, that is really the same ole crap, and oh yes there is......, no that isn't really that new. Well surely there must be something I have another remarkable opinion on. Lets see, the government is solving the immigration problem, no that's not it, well the mortgage market crash is reversing itself, I am not sure about that but all the politicians have really done some wonderful things to fix the probelm. I can't believe I even said that. Oh yes and there are the politicians that have quit campaigning and telling us what they think we are dumb enough to believe and have started telling us the truth. Well that sure as hell ain't happening. Gosh then whats new???
Oh my God I just heard on the news that the New York Times have picked Hillary as the Democrats choice for President. Someone quick take the knife from my hand this may be more than I can take, death would be a better alternative I think. 4 to 8 more years of Bill God help us all.
Whew I think I am ok now. Where was I? Oh yes. Is it just me or is the news a bit of a so what these days? The media predicted the stock market crash the other day and it didn't happen. What it did do is to convince the fed to lower rates by .75%. I guess that is why they did it, I really am not sure. What else it did was to put the financial markets in a spin that have wreaked havoc for the past two days in about everything. For the record mortgage rates yesterday were higher than they were when the fed lowered the rates. Oh yes, the oil markets decided to convince us a couple of weeks ago that oil prices were headed no where but up and allowed the oil companies to steal more of our money. A couple of days ago I heard the supplies were up and that oil should be at 75 per barrel in the near future. You don't have to wonder who's full of BS cause everyone is on that issue at least. Don't worry our political leaders will figure it out. Whatever.
There is an economic stimulus package being discussed that would send most of us some money. Oh boy some free money to pay for more energy increases, I'm pumped. It includes some higher loan amounts for mortgages which make sense but should have been done a long time ago because it makes sense to do that anyway. I would bet at least even money that still does not get passed and that could really help some people. The mortgage mess is somewhere in the middle of fixing itself I think. It is still and will be bad for a mass of people. Hillary wants to freeze rates on sub prime loans and must not have a clue that the government should really not supersede contracts on existing debt. I am sure she might have a clue, but she is trying to get elected and has big Bill to overcome. She will say or do anything to get elected in my opinion. Don't you just want to puke when you have to look at Bill?
So whats happening??? Same ole crap looks to me like!!!
More to come
Lonny
Oh my God I just heard on the news that the New York Times have picked Hillary as the Democrats choice for President. Someone quick take the knife from my hand this may be more than I can take, death would be a better alternative I think. 4 to 8 more years of Bill God help us all.
Whew I think I am ok now. Where was I? Oh yes. Is it just me or is the news a bit of a so what these days? The media predicted the stock market crash the other day and it didn't happen. What it did do is to convince the fed to lower rates by .75%. I guess that is why they did it, I really am not sure. What else it did was to put the financial markets in a spin that have wreaked havoc for the past two days in about everything. For the record mortgage rates yesterday were higher than they were when the fed lowered the rates. Oh yes, the oil markets decided to convince us a couple of weeks ago that oil prices were headed no where but up and allowed the oil companies to steal more of our money. A couple of days ago I heard the supplies were up and that oil should be at 75 per barrel in the near future. You don't have to wonder who's full of BS cause everyone is on that issue at least. Don't worry our political leaders will figure it out. Whatever.
There is an economic stimulus package being discussed that would send most of us some money. Oh boy some free money to pay for more energy increases, I'm pumped. It includes some higher loan amounts for mortgages which make sense but should have been done a long time ago because it makes sense to do that anyway. I would bet at least even money that still does not get passed and that could really help some people. The mortgage mess is somewhere in the middle of fixing itself I think. It is still and will be bad for a mass of people. Hillary wants to freeze rates on sub prime loans and must not have a clue that the government should really not supersede contracts on existing debt. I am sure she might have a clue, but she is trying to get elected and has big Bill to overcome. She will say or do anything to get elected in my opinion. Don't you just want to puke when you have to look at Bill?
So whats happening??? Same ole crap looks to me like!!!
More to come
Lonny
Saturday, January 19, 2008
WILL ANYONE LISTEN PART 2
Part 2 enjoy:
Communist Russia was comprised of Russians who just wanted to live in peace, yet the Russian Communists were responsible for the murder of about 20 million people. The peaceful majority were irrelevant.
China's huge population was peaceful as well, but Chinese Communists managed to kill a staggering 70 million people.
The average Japanese individual prior to World War ll was not a warmongering sadist. Yet, Japan murdered and slaughtered its way across South East Asia in an orgy of killing that included the systematic murder of 12 million Chinese civilians; most killed by sword, shovel, and bayonet.
And, who can forget Rwanda, which collapsed into butchery. Could it not be said that the majority of Rwandans were 'peace loving'? History lessons are often incredibly simple and blunt, yet for all ourpowers of reason we often miss the most basic and uncomplicated of points:
Peace-loving Muslims have been made irrelevant by their silence. Peace-loving Muslims will become our enemy if they don't speak up, because like my friend from Germany, they will awaken one day and find that the fanatics own them, and the end of their world will have begun.
Peace-loving Germans, Japanese, Chinese, Russians, Rwandans, Serbs, Afghanis, Iraqis, Palestinians, Somalis, Nigerians, Algerians, and many others have died because the peaceful majority did not speak up until it was too late. As for us who watch it all unfold, we must pay attention to the only group that counts: the fanatics who threaten our way of life.
Lastly, at the risk of offending, anyone who doubts that the issue is serious and just deletes this email without sending it on, is contributing to the passiveness that allows the problems of expand. So, extend yourself a bit and send this on and on and on! Let us hope that thousands, world wide, read this - think about it - and send it on.
Emanuel Tanay, M.D.Ann Arbor, MI
More to come
Lonny
Communist Russia was comprised of Russians who just wanted to live in peace, yet the Russian Communists were responsible for the murder of about 20 million people. The peaceful majority were irrelevant.
China's huge population was peaceful as well, but Chinese Communists managed to kill a staggering 70 million people.
The average Japanese individual prior to World War ll was not a warmongering sadist. Yet, Japan murdered and slaughtered its way across South East Asia in an orgy of killing that included the systematic murder of 12 million Chinese civilians; most killed by sword, shovel, and bayonet.
And, who can forget Rwanda, which collapsed into butchery. Could it not be said that the majority of Rwandans were 'peace loving'? History lessons are often incredibly simple and blunt, yet for all ourpowers of reason we often miss the most basic and uncomplicated of points:
Peace-loving Muslims have been made irrelevant by their silence. Peace-loving Muslims will become our enemy if they don't speak up, because like my friend from Germany, they will awaken one day and find that the fanatics own them, and the end of their world will have begun.
Peace-loving Germans, Japanese, Chinese, Russians, Rwandans, Serbs, Afghanis, Iraqis, Palestinians, Somalis, Nigerians, Algerians, and many others have died because the peaceful majority did not speak up until it was too late. As for us who watch it all unfold, we must pay attention to the only group that counts: the fanatics who threaten our way of life.
Lastly, at the risk of offending, anyone who doubts that the issue is serious and just deletes this email without sending it on, is contributing to the passiveness that allows the problems of expand. So, extend yourself a bit and send this on and on and on! Let us hope that thousands, world wide, read this - think about it - and send it on.
Emanuel Tanay, M.D.Ann Arbor, MI
More to come
Lonny
WILL ANYONE LISTEN? PART 1
My friend Paul sent this too me and it will make you think for sure. Thanks Paul, Enjoy
Interesting wake up call. Will anyone listen? Act?
Subject: FW: A German's Point Of View On Islam
By Dr. Emanual Tanay, Psychiatrist A man whose family was German aristocracy prior to World War ll owned a number of large industries and estates. When asked how many German people were true Nazis, the answer he gave can guide our attitude toward fanaticism.
'Very few people were true Nazis 'he said,' but many enjoyed the return of German pride, and many more were too busy to care. I was oneof those who just thought the Nazis were a bunch of fools. So, the majority just sat back and let it all happen. Then, before we knew it,they owned us, and we had lost control, and the end of the world had come. My family lost everything. I ended up in a concentration camp and the Allies destroyed my factories.
'We are told again and again by 'experts' and 'talking heads' that Islam is the religion of peace, and that the vast majority of Muslims just want to live in peace. Although this unqualified assertion may betrue, it is entirely irrelevant. It is meaningless fluff, meant to make us feel better, and meant to somehow diminish the spectra of fanatics rampaging across the globe in the name of Islam. The fact is that the fanatics rule Islam at this moment in history.
It is the fanatics who march.
It is the fanatics who wage any one of 50 shooting wars worldwide.
It is the fanatics who systematically slaughter Christian or tribal groups throughout Africa and are gradually taking over the entire continent in an Islamic wave.
It is the fanatics who bomb, behead, murder, or honor kill. It is the fanatics who take over mosque after mosque.
It is the fanatics who zealously spread the stoning and hanging of rape victims and homosexuals.
The hard quantifiable fact is that the 'peaceful majority', the 'silent majority', is cowed and extraneous.
Part 2 tomorrow:
More to come
Lonny
Interesting wake up call. Will anyone listen? Act?
Subject: FW: A German's Point Of View On Islam
By Dr. Emanual Tanay, Psychiatrist A man whose family was German aristocracy prior to World War ll owned a number of large industries and estates. When asked how many German people were true Nazis, the answer he gave can guide our attitude toward fanaticism.
'Very few people were true Nazis 'he said,' but many enjoyed the return of German pride, and many more were too busy to care. I was oneof those who just thought the Nazis were a bunch of fools. So, the majority just sat back and let it all happen. Then, before we knew it,they owned us, and we had lost control, and the end of the world had come. My family lost everything. I ended up in a concentration camp and the Allies destroyed my factories.
'We are told again and again by 'experts' and 'talking heads' that Islam is the religion of peace, and that the vast majority of Muslims just want to live in peace. Although this unqualified assertion may betrue, it is entirely irrelevant. It is meaningless fluff, meant to make us feel better, and meant to somehow diminish the spectra of fanatics rampaging across the globe in the name of Islam. The fact is that the fanatics rule Islam at this moment in history.
It is the fanatics who march.
It is the fanatics who wage any one of 50 shooting wars worldwide.
It is the fanatics who systematically slaughter Christian or tribal groups throughout Africa and are gradually taking over the entire continent in an Islamic wave.
It is the fanatics who bomb, behead, murder, or honor kill. It is the fanatics who take over mosque after mosque.
It is the fanatics who zealously spread the stoning and hanging of rape victims and homosexuals.
The hard quantifiable fact is that the 'peaceful majority', the 'silent majority', is cowed and extraneous.
Part 2 tomorrow:
More to come
Lonny
CREDIT REPAIR
One of the things people are faced with is bad credit. It comes from several things, people don't pay their bills on time. (Now there is a revelation for you). Consumers get more credit then they can pay for as the creditors simply take their chances that people who probably won't pay will pay. Consumers are victimized by creditors who simply will not communicate with them concerning legitimate complaints and problems. Creditors can put things on your report and have no risk of any legitimate discipline even if the item is wrong. Creditors see mortgage lenders as collectors and will keep bad trade lines current so they may get paid. And finally medical bills that are unpaid go on reports quickly against the consumer even if the insurance company was supposed to pay. There are a lot more trust me.
Recently we made a loan to a builder friend of mine and required him to pay off some medical collections that he said were in fact his. He had been given no notice of the ourstanding bills and was happy to pay them. The problem was he could not find the people to pay. The item had been factored (sold) to a collection agency who could not be found. Think about it we required him to pay, he said he would but could not even though he wanted too. Pretty stupid stuff if you think about it.
In our something for nothing culture many so called credit repair companies have cropped up. They offer a fix to your credit woes by a number of legitimate or not so legitimate solutions. They charge plenty and may be a fraud or may not be. If you pay one that is a fraud you will not see them, hear from them or get your money back. To my knowledge there is no enforced law that would prohibit them from false advertising so guess what you are the victim. It is hard to tell the difference. We have a company that is not affiliated with us that we refer people too and they seem to be honest and get results when employeed. It takes a long time, form 6 to 12 months and it is not easy or cheap. They have to fight the creditors to remove the items that are in error or they can't prove were reported correctly. Creditors have no real interest in helping you fix your credit even if they are wrong. Back to the no ethics in business I talk so much about.
Below is a fairly good article that talks about credit repair that is worth looking at. Now that all the loans are pretty much gone that will allow bad credit this seems to be coming on as the new thing even though it has been around for awhile now. It is a new type of fraud in the wrong hands so watch out.
http://www.nytimes.com/2008/01/19/business/yourmoney/19money.html?ref=yourmoney
If you are going to pay someone to fix your credit beware there are plenty of bad people out there ready to extract your money from you and deliver nothing.
More to come
Lonny
Recently we made a loan to a builder friend of mine and required him to pay off some medical collections that he said were in fact his. He had been given no notice of the ourstanding bills and was happy to pay them. The problem was he could not find the people to pay. The item had been factored (sold) to a collection agency who could not be found. Think about it we required him to pay, he said he would but could not even though he wanted too. Pretty stupid stuff if you think about it.
In our something for nothing culture many so called credit repair companies have cropped up. They offer a fix to your credit woes by a number of legitimate or not so legitimate solutions. They charge plenty and may be a fraud or may not be. If you pay one that is a fraud you will not see them, hear from them or get your money back. To my knowledge there is no enforced law that would prohibit them from false advertising so guess what you are the victim. It is hard to tell the difference. We have a company that is not affiliated with us that we refer people too and they seem to be honest and get results when employeed. It takes a long time, form 6 to 12 months and it is not easy or cheap. They have to fight the creditors to remove the items that are in error or they can't prove were reported correctly. Creditors have no real interest in helping you fix your credit even if they are wrong. Back to the no ethics in business I talk so much about.
Below is a fairly good article that talks about credit repair that is worth looking at. Now that all the loans are pretty much gone that will allow bad credit this seems to be coming on as the new thing even though it has been around for awhile now. It is a new type of fraud in the wrong hands so watch out.
http://www.nytimes.com/2008/01/19/business/yourmoney/19money.html?ref=yourmoney
If you are going to pay someone to fix your credit beware there are plenty of bad people out there ready to extract your money from you and deliver nothing.
More to come
Lonny
Wednesday, January 16, 2008
A LOOK AHEAD
For some time now I have been eluding to the fact that there was more to come regarding all the people and companies who would be exposed in the mortgage crisis we are currently in. I ran across an article in the Denver Post that tells of a law suit filed by the City of Cleveland. It is certainly worth reading if you are interested in what still remains to be the largest and most extensive financial wreck this country has yet to see. I still believe we haven’t seen the worst of the foreclosures and as regrettable as it may seem the ball rolling down hill is picking up steam.
If the City of Cleveland is successful with their suit then many others will follow. The cities and the citizens of those cities are truly the victims. The author of the article tells a story of what may become what’s next in the mortgage mess.
http://www.denverpost.com/business/ci_7971836
More to come
Lonny
If the City of Cleveland is successful with their suit then many others will follow. The cities and the citizens of those cities are truly the victims. The author of the article tells a story of what may become what’s next in the mortgage mess.
http://www.denverpost.com/business/ci_7971836
More to come
Lonny
Tuesday, January 15, 2008
READ THIS ONE
I was doing some light reading this morning and ran across an article in the LA Times. I think it is a good read as it describes the results of industries allowed to run wild with no supervision. I am in no way in favor of more or bigger government but as the mortgage crisis deepens and the extent of the predatory lender becomes more evident, you have to wonder. Bigger government no, more effective government yes. Big business has run over the consumer, greed and no ethics are the root cause and the extent of the carnage is still to be discovered.
The article is good, read this one.
http://www.latimes.com/news/printedition/asection/la-oe-meyerhoff14jan14,1,7284065.story?coll=la-news-a_section
If you do or don't agree let me hear from you.
More to come
Lonny
The article is good, read this one.
http://www.latimes.com/news/printedition/asection/la-oe-meyerhoff14jan14,1,7284065.story?coll=la-news-a_section
If you do or don't agree let me hear from you.
More to come
Lonny
Monday, January 14, 2008
WHAT ARE THEY THINKING
Well the news seems to reflect that indeed Bank of America is going to attempt to buy Countrywide Mortgage. The only thing that comes to my mind is what in the world is B of A thinking? Countrywide is the nation’s largest mortgage lender with the nation’s largest mortgage company problems which have all not surfaced as yet. The extent of Countrywide’s problems is far from over or even yet to be determined. Their portfolio of loans going bad is gaining speed and does not seem to have an end in site. B of A has the same type problems with their mortgage portfolio and they are by no means out of the woods yet either. As I recall B of A already loaned Countrywide some 2 billion dollars. I wonder where that money went. Seems to me the loan was going to fix the problems at Countrywide when it was made. Could the reason of the purchase be that B of A is already in too deeply?
The industry seems to think it is a good thing for the sale to happen. Countrywide simply going out of business could shake up the mortgage world way too much at the present time according to the experts. I was one that said Countrywide was way too big to ever go out of business when all this mess started. If they can go broke is anyone safe? I don’t think so. The mortgage mess this country is facing seems to have a mind of its own with a quick end no where in site. Bankruptcy for Countrywide according to the same experts does not seem to be the best alternative either for some reason. That seems to be a bit safer to me (I am no expert here for sure) as that at least keeps Countrywide’s problems in their court to be solved. Bank of America is the largest bank in the country but I fear they are not big enough to take on Countrywide’s problems and tackle their own as they continue to surface. The country sure doesn't need B of A in deep trouble now as well. I am not even close to sure the regulators will allow it either. If they do there is probably more to the story than we know.
All in all I hope if the deal goes through it somehow works but I for one have plenty of doubts. I just don’t get why B of A would take on that much liability that they still can’t define. There is still plenty to surface about both these lenders and their mortgage companies. If I were B of A I might just opt to take a seat and be a looker rather than a buyer.
Finally I still see the fellow on the TV all the time telling me about the no cost refi for us homeowners. Countrywide might save some money by taking those adds off the TV. I am not sure anyone is buying that pitch anymore.
More to come
Lonny
The industry seems to think it is a good thing for the sale to happen. Countrywide simply going out of business could shake up the mortgage world way too much at the present time according to the experts. I was one that said Countrywide was way too big to ever go out of business when all this mess started. If they can go broke is anyone safe? I don’t think so. The mortgage mess this country is facing seems to have a mind of its own with a quick end no where in site. Bankruptcy for Countrywide according to the same experts does not seem to be the best alternative either for some reason. That seems to be a bit safer to me (I am no expert here for sure) as that at least keeps Countrywide’s problems in their court to be solved. Bank of America is the largest bank in the country but I fear they are not big enough to take on Countrywide’s problems and tackle their own as they continue to surface. The country sure doesn't need B of A in deep trouble now as well. I am not even close to sure the regulators will allow it either. If they do there is probably more to the story than we know.
All in all I hope if the deal goes through it somehow works but I for one have plenty of doubts. I just don’t get why B of A would take on that much liability that they still can’t define. There is still plenty to surface about both these lenders and their mortgage companies. If I were B of A I might just opt to take a seat and be a looker rather than a buyer.
Finally I still see the fellow on the TV all the time telling me about the no cost refi for us homeowners. Countrywide might save some money by taking those adds off the TV. I am not sure anyone is buying that pitch anymore.
More to come
Lonny
Friday, January 11, 2008
GAS PRICES
Is there anyone among us who believes that gasoline prices are purely market driven? I wonder from time to time whether they are or not. I really think that oil companies conspire to price fix, and the oil traders are just like other traders, and they use most anything to run up gasoline prices. For instance I am not sure I heard it but I am sure the fact that some Iranian speed boats charged our navy a few days ago made oil prices go up. Does Iran even produce oil?
The profits of the oil companies are insane as the gut the middle class of our country. We are soon to see what the price of energy is going to do to the economy and in my opinion it has already started, there is plenty of talk of recession in the news of late. Now those purest would say, it is a free market and if the oil companies don’t sell the gas to us they can simply send it to China or India there is plenty of demand there. Is there; I certainly don’t know but I sure don’t want to not have enough gas either. I have no choice I have to buy the stuff to get where I am going so I can try to make enough money to buy more gas so the oil companies can price fix and make more money.
Here is a thought to consider. What if everyone who could would simply use 25% less gas? No way you say! Well I know I could if I just put my mind too it. I could check my mileage in a normal week and then make a real plan to drive 25% less miles. Maybe I won’t go. Maybe I will ride to work 3 days a week with a co-worker, maybe Karren and I could combine trips etc. I am not sure how I would do it but I bet most of us could use 25% less.
Now consider a national effort to do the same for the next 6 months. If the oil companies reserves increased by 25% overnight I bet they might just start competing to rid themselves of them and use a little of that big profit to keep their refineries running and their employees busy. Never work you say? I ask why not. I am no one who can get that message out nationally but my bet is that it would work like a charm. It may not be a pure supply and demand market but you decrease demand and increase supply by 25% and you might just be surprised.
Any thoughts?
More to come
Lonny
The profits of the oil companies are insane as the gut the middle class of our country. We are soon to see what the price of energy is going to do to the economy and in my opinion it has already started, there is plenty of talk of recession in the news of late. Now those purest would say, it is a free market and if the oil companies don’t sell the gas to us they can simply send it to China or India there is plenty of demand there. Is there; I certainly don’t know but I sure don’t want to not have enough gas either. I have no choice I have to buy the stuff to get where I am going so I can try to make enough money to buy more gas so the oil companies can price fix and make more money.
Here is a thought to consider. What if everyone who could would simply use 25% less gas? No way you say! Well I know I could if I just put my mind too it. I could check my mileage in a normal week and then make a real plan to drive 25% less miles. Maybe I won’t go. Maybe I will ride to work 3 days a week with a co-worker, maybe Karren and I could combine trips etc. I am not sure how I would do it but I bet most of us could use 25% less.
Now consider a national effort to do the same for the next 6 months. If the oil companies reserves increased by 25% overnight I bet they might just start competing to rid themselves of them and use a little of that big profit to keep their refineries running and their employees busy. Never work you say? I ask why not. I am no one who can get that message out nationally but my bet is that it would work like a charm. It may not be a pure supply and demand market but you decrease demand and increase supply by 25% and you might just be surprised.
Any thoughts?
More to come
Lonny
Wednesday, January 9, 2008
HAPPY DAY
Karren and I celebrated our 36th anniversary yesterday and I my 56th birthday. I can't believe she has been married to me this long and hasn't killed me. She is a patient woman no doubt. She sent me these little tidbits yesterday. Oh by the way it is not too late to send your birthday presents to me. I'm in the book.
Enjoy:
1. My husband and I divorced over religious differences. He thought he was God and I didn't.
2. I don't suffer from insanity; I enjoy every minute of it.
3. Some people are alive only because it's illegal to kill them.
4. I used to have a handle on life, but it broke.
5. Don't take life too seriously; No one gets out alive.
6. You're just jealous because the voices only talk to me
7. Beauty is in the eye of the beer holder.
8. Earth is the insane asylum for the universe.
9. I'm not a complete idiot -- Some parts are just missing.
10. Out of my mind. Back in five minutes.
11. NyQuil, the stuffy, sneezy, why-the-heck-is-the-room-spinning medicine.
12. God must love stupid people; He made so many.
13. The gene pool could use a little chlorine.
14. Consciousness: That annoying time between naps.
15. Ever stop to think, and forget to start again?
16. Being "over the hill" is much better than being under it!
17. Wrinkled Was Not One of the Things I Wanted to Be When I Grew up.
18. Procrastinate Now!
19. I Have a Degree in Liberal Arts; Do You Want Fries With That?
20. A hangover is the wrath of grapes.
21.. A journey of a thousand miles begins with a cash advance
22. Stupidity is not a handicap. Park elsewhere!
23. They call it PMS because Mad Cow Disease was already taken.
24. He who dies with the most toys is nonetheless DEAD.
25. A picture is worth a thousand words, but it uses up three thousand times the memory.
26. Ham and eggs.A day's work for a chicken, a lifetime commitment for a pig.
27. The trouble with life is there's no background music.
28. The original point and click interface was a Smith & Wesson.
29. I smile because I don't know what the hell is going on. Appreciate every single thing you have, especially your friends! Life is too short and friends are too few
More to come
Lonny
Enjoy:
1. My husband and I divorced over religious differences. He thought he was God and I didn't.
2. I don't suffer from insanity; I enjoy every minute of it.
3. Some people are alive only because it's illegal to kill them.
4. I used to have a handle on life, but it broke.
5. Don't take life too seriously; No one gets out alive.
6. You're just jealous because the voices only talk to me
7. Beauty is in the eye of the beer holder.
8. Earth is the insane asylum for the universe.
9. I'm not a complete idiot -- Some parts are just missing.
10. Out of my mind. Back in five minutes.
11. NyQuil, the stuffy, sneezy, why-the-heck-is-the-room-spinning medicine.
12. God must love stupid people; He made so many.
13. The gene pool could use a little chlorine.
14. Consciousness: That annoying time between naps.
15. Ever stop to think, and forget to start again?
16. Being "over the hill" is much better than being under it!
17. Wrinkled Was Not One of the Things I Wanted to Be When I Grew up.
18. Procrastinate Now!
19. I Have a Degree in Liberal Arts; Do You Want Fries With That?
20. A hangover is the wrath of grapes.
21.. A journey of a thousand miles begins with a cash advance
22. Stupidity is not a handicap. Park elsewhere!
23. They call it PMS because Mad Cow Disease was already taken.
24. He who dies with the most toys is nonetheless DEAD.
25. A picture is worth a thousand words, but it uses up three thousand times the memory.
26. Ham and eggs.A day's work for a chicken, a lifetime commitment for a pig.
27. The trouble with life is there's no background music.
28. The original point and click interface was a Smith & Wesson.
29. I smile because I don't know what the hell is going on. Appreciate every single thing you have, especially your friends! Life is too short and friends are too few
More to come
Lonny
Tuesday, January 8, 2008
THE POWER OF THE CONSUMER
A couple of weeks ago I was listening to a popular radio talk show in the Phoenix area. This particular host had visited the border to get a first hand look at how bad the illegal crossing problem was. He described a well orchestrated scene which existed in Mexico that provided transportation and safe passage across the border. He also described how he was treated when he was apprehended crossing the border into Mexico. To say the least it is a business and not one that has any intervention by the Mexican government.
Why would Mexico care if their people came to the US to get free services and send the money they made back? Well obviously they don’t and have no incentive to do anything about it. It is painfully obvious that our government will not do anything to stop illegal immigration. I would like to believe that whoever gets elected the new President will really get something done but that is pretty unlikely if history tells us anything at all. For me someone is getting paid off somewhere to keep things status quo and my guess all this political talk is just talk. Our government has convinced me nothing will happen now or in the future that can solve the immigration problem.
If Mexico would help secure the border it would probably happen. You would have two countries instead of one trying to solve the problem. Why would Mexico secure the border? If they had something to loose they might have some incentive to do it. Now you will say it can’t be done but what if the US consumer simply said, until Mexico secures their border we aren’t coming to Mexico. What if every hotel in Cabo and Cancun all of the sudden had no American tourist dollars? Do you think the government of Mexico just might have to do something, and do you think the money in the resorts could pay off the correct government folks to get the job done?
I was visiting with some friends a few days back and the conversation turned to a trip to Cabo in early summer for a group of us. There was not talk of anything other than we should go, no thought of the problems that Mexico causes us. It is almost like there are two societies there. I asked when do we stop supporting a country that is helping destroy our infrastructure and perhaps the whole culture of our country. The few of us friends can hardly make a difference but all of us consumers could turn Mexico and their policies about securing the border on a dime.
Think about it and then think about what we as consumers could do with the oil companies if we put our minds to it.
More to come
Lonny
Why would Mexico care if their people came to the US to get free services and send the money they made back? Well obviously they don’t and have no incentive to do anything about it. It is painfully obvious that our government will not do anything to stop illegal immigration. I would like to believe that whoever gets elected the new President will really get something done but that is pretty unlikely if history tells us anything at all. For me someone is getting paid off somewhere to keep things status quo and my guess all this political talk is just talk. Our government has convinced me nothing will happen now or in the future that can solve the immigration problem.
If Mexico would help secure the border it would probably happen. You would have two countries instead of one trying to solve the problem. Why would Mexico secure the border? If they had something to loose they might have some incentive to do it. Now you will say it can’t be done but what if the US consumer simply said, until Mexico secures their border we aren’t coming to Mexico. What if every hotel in Cabo and Cancun all of the sudden had no American tourist dollars? Do you think the government of Mexico just might have to do something, and do you think the money in the resorts could pay off the correct government folks to get the job done?
I was visiting with some friends a few days back and the conversation turned to a trip to Cabo in early summer for a group of us. There was not talk of anything other than we should go, no thought of the problems that Mexico causes us. It is almost like there are two societies there. I asked when do we stop supporting a country that is helping destroy our infrastructure and perhaps the whole culture of our country. The few of us friends can hardly make a difference but all of us consumers could turn Mexico and their policies about securing the border on a dime.
Think about it and then think about what we as consumers could do with the oil companies if we put our minds to it.
More to come
Lonny
Friday, January 4, 2008
GOOD STUFF
I must admit I have been a bit inconsistent with the Blog of late. Wanting to make sure the dribble is not dribble has become a bit of a chanllenge I must admit. I was going to do something very profound today but Shae who is one of my new customers sent me this and it was too good to pass up. Thanks Shae!!!
Enjoy:
http://users.gazinter.net/melan/Warn/Warnenu.htm
More to come
Lonny
Enjoy:
http://users.gazinter.net/melan/Warn/Warnenu.htm
More to come
Lonny
Thursday, January 3, 2008
WHAT A SURPRISE
My friend Paul sent this to me, and as the political season heats up I thought it was worth a hard look, thanks Paul. Remember if you want to e-mail the Blog hit the envelope at the bottom and you can send it along.
Enjoy:
Your Social Security
Just in case some of you young whippersnappers (and some older ones) didn't know this. It's easy to check out, if you don't believe it. Be sure and show it to your kids. They need a little history lesson on what's what.
Our Social Security program was introduced by Franklin Roosevelt, a Democrat.
Promises he made at the time were:
1.) That participation in the Program would be Completely voluntary,
2.) That the participants would only have to pay 1% of the first $1,400 of their annual incomes into the Program,
3.) That the money the participants elected to put Into the Program would be deductible from Their income for tax purposes each year,
4.) That the money the participants put into the independent "Trust Fund" rather than into the General Operating Fund, and therefore, would only be used to fund the Social Security Retirement Program, and no other government program, and,
5.) That the annuity payments to the retirees would never be taxed as income. Since many of us have paid into FICA for years and are now receiving a Social Security check every month -- and then finding that we are getting taxed on 85% of the money we paid to the Federal Government to "put away" -- you may be interested in the following:
Q : Which Political Party took Social Security from the independent "Trust Fund" and put it into the General Fund so that Congress could spend it?
A: It was Lyndon Johnson and the democratically Controlled House and Senate.
Q: Which Political Party eliminated the income tax deduction for Social Security (FICA) withholding?
A: The Democratic Party.
Q: Which Political Party started taxing Social Security annuities?
A: The Democratic Party, with Al Gore casting the "tie-breaking" deciding vote as President of the Senate, while he was Vice President of the US.
Q: Which Political Party decided to start giving annuity payments to immigrants? AND MY FAVORITE:
A: That's right! Jimmy Carter and the Democratic Party. Immigrants moved into this country, and at age 65, began to receive Social Security payments! The Democratic Party gave these payments to them, even though they never paid a dime into it!
Then, after violating the original contract (FICA), the Democrats turn around and tell you that the Republicans want to take your Social Security away! And the worst part about it is, uninformed citizens believe it!
If enough people receive this, maybe a seed of awareness will be planted and maybe changes will evolve. Maybe not, some Democrats are awfully sure of what isn't so. But it's worth a try. How many people can YOU send this to?
Actions speak louder than bumper stickers.
More to come
Lonny
Enjoy:
Your Social Security
Just in case some of you young whippersnappers (and some older ones) didn't know this. It's easy to check out, if you don't believe it. Be sure and show it to your kids. They need a little history lesson on what's what.
Our Social Security program was introduced by Franklin Roosevelt, a Democrat.
Promises he made at the time were:
1.) That participation in the Program would be Completely voluntary,
2.) That the participants would only have to pay 1% of the first $1,400 of their annual incomes into the Program,
3.) That the money the participants elected to put Into the Program would be deductible from Their income for tax purposes each year,
4.) That the money the participants put into the independent "Trust Fund" rather than into the General Operating Fund, and therefore, would only be used to fund the Social Security Retirement Program, and no other government program, and,
5.) That the annuity payments to the retirees would never be taxed as income. Since many of us have paid into FICA for years and are now receiving a Social Security check every month -- and then finding that we are getting taxed on 85% of the money we paid to the Federal Government to "put away" -- you may be interested in the following:
Q : Which Political Party took Social Security from the independent "Trust Fund" and put it into the General Fund so that Congress could spend it?
A: It was Lyndon Johnson and the democratically Controlled House and Senate.
Q: Which Political Party eliminated the income tax deduction for Social Security (FICA) withholding?
A: The Democratic Party.
Q: Which Political Party started taxing Social Security annuities?
A: The Democratic Party, with Al Gore casting the "tie-breaking" deciding vote as President of the Senate, while he was Vice President of the US.
Q: Which Political Party decided to start giving annuity payments to immigrants? AND MY FAVORITE:
A: That's right! Jimmy Carter and the Democratic Party. Immigrants moved into this country, and at age 65, began to receive Social Security payments! The Democratic Party gave these payments to them, even though they never paid a dime into it!
Then, after violating the original contract (FICA), the Democrats turn around and tell you that the Republicans want to take your Social Security away! And the worst part about it is, uninformed citizens believe it!
If enough people receive this, maybe a seed of awareness will be planted and maybe changes will evolve. Maybe not, some Democrats are awfully sure of what isn't so. But it's worth a try. How many people can YOU send this to?
Actions speak louder than bumper stickers.
More to come
Lonny
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