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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (287458)	10/28/2010 10:18:50 AM
From: bentway	Read Replies (1) \| Respond to of 306849

Well, according to that link I posted, the NEW law, Prop 202, would overturn the 2007 law which REQUIRED E-verify, and go back to just requiring 2 valid forms of ( fake) ID. Sounds kind of hinky to me!

To: patron_anejo_por_favor who wrote (287458)	10/28/2010 1:41:42 PM
From: Broken_Clock	Respond to of 306849

Patron Something like 90% of short sales(according to the B of A VP i heard speak last week) are now requiring the seller to sign a promissory note at close of escrow. I believe CW's found the culprit. The second holders were getting hosed so GS has stepped in to quietly buy up the MI and 2nd market for pennies. Then use that sign off leverage at closing to indenture the seller even after the house is gone. What a deal! Lose your job, lose your house and sign over your soul to the Squid! And Warren doesn't want to put even a toe in that water. -ng- So much for Consumer Protection. J6P is being consumed with protection from the SEC, clowngress and Don Obama! ++++ Chris Whalen Welcomes Our New Tyrannical Overlords, Prepares For The Taxpayer Funded Mortgage Insurer Bailout Submitted by Tyler Durden on 10/27/2010 11:26 -0500 beforeitsnews.com Chris Whalen's latest Institutional Risk Analytics is a must read letter as it highlights yet another aspect of foreclosure fraud, one which finds various analogues in the way the MBS originating banks took advantage of AIG, knowing full well it was stuffed to the gills with worthless pieces of paper and taking out enough insurance on it to require a federal bailout when mark to fraud failed and mark to market finally worked for a very short period of time. Now, it seems, it is the mortgage insurers turn: "So today the MIs are still operating, though they are not providing insurance because they can't. Observers in the operational trenches tell The IRA that virtually no MI claims are being paid - even if the claim is legitimate. The MIs are very undercapitalized and still bleeding heavily. But they get continued business because the GSEs demand MI on high LTV loans. Lenders are forced to use the MIs and consumers are made to pay the premium. Thus the auditors of the GSE continue to respect the cover from the MIs, even though the entire industry is arguably insolvent." The question is how many CDS have Goldman et al purchased in bulk in anticipation of the imminent wholesale MI Event of Default, which will force Geithner to once again use the Mutual Assured Destruction wildcard and force taxpayers to bail out those holding MI insurance, especially if the originators and servicers end up being one and the same... From Whalen's latest: Several mortgage market observers describe the current private mortgagre insurance market in the U.S. as a regulatory artifice -- or more accurately regulatory arbitrage. MI was re-created expressly for the GSEs to provide cover for loans with an LTV greater than 80%. It was a simple business and, if the management of an MI underwriter was not too stupid, it could make a decent return. The problem is that management of the old line MIs typically did a lot of very stupid things, acts of idiocy that were encouraged by the GSEs and their allies in Congress. A handful of the more egregious lapses in judgment by the MIs and the GSE included risk management changes that come under the familiar story of "innovation," a familiar ruse that was a key part of the push by both political parties for affordable housing going back decades: (1) Eliminating independent risk management departments; line managers in the MIs were allowed to override corporate risk departments, particularly when insuring large bulk deals. (2) Signing fraud, and documentation (completion) waivers in order to land large bulk deals from the largest producers. (3) Insuring bulk deals without performing random inspections to (a) keep lenders honest and (b) assess underwriting quality. (4) Insuring subprime loans (non GSE loans) without proper credit models; and insuring production from lenders with questionable credentials. (5) Insuring large quantities mortgage product that was outside the knowledge base of the MIs. Remember that the MIs had almost 40 years of insuring plain vanilla F&F product. Now they were insuring 220's and every other kind of crappy paper the lenders threw at them. They had no clue how this stuff would perform. No attempt was made to model it properly. READ MORE HERE> >