Mr. Mortgage
I am infuriated. You will not believe this story. This sure looks as though Countrywide/BofA has conspired to deceive a homeowner and shareholders. They are getting these borrowers at their weakest moment with a plan that is portrayed as ‘help’ but will ultimately lead to disaster. This is much worse than stated income, no doc and no appraisal loans were in the first place. WHERE ARE THE REGULATORS! If you can’t see this train coming down the line in 5-years you are blind.
For those of you who do not believe the housing and mortgage implosion will be around for years, here ya go. I can talk about subprime being the proverbial ‘canary in the coal mine’, default rates, loan loss reserves, max-neg caps, Pay Option ARMs, cure rates, capital ratios, write-downs, Alt-A, Jumbo Prime and the GSE’s faulty underwriting systems until I am blue in the face, but none of these things seem as overwhelming as this story. I understand and can quantify the prior list of threats. Countrywide has taken this to an entirely different level.
Meet The New Game in Loss Mitigation - Put it off for 5-years with 2% rates and 200% LTV workouts; make the borrower sign away their life waiving all future claims; then tell the shareholders it is ‘performing’. In 5-years this will bury the borrower beyond all recognition and force them into bankruptcy, but until then ‘problem solved’. WHERE ARE THE REGULATORS! More
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