CNBC Video: Diana Olick on the JPM developments
Aired today. Story from Yves Smith. And detail on a new and massive, mortgage-modification bill introduced in Congress.
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From Yves Smith:
More shoes are dropping on the foreclosure improprieties front. Let’s not forget the throughline: the parties in the securitization pipeline were so keen to rip out fees and maximize profits that they allotted too little in the way of expense dollars to executing tasks required both by statue and contractual requirements. The result was that they cut corners to such a degree (explained longer form here) that the trusts (the securitization entity) appear not to have been properly conveyed the notes (the borrower IOU which in 45 states is necessary for them to possess to be able to foreclose) on a widespread, if not pervasive basis. I’ve had attorneys tell me that when they have uncovered serious document shortcoming, the trustee’s response to the judge has been, “You can’t expect us to do that. We aren’t paid enough.” Funny, they apparently didn’t raise this issue when they signed up for the job.
Related: New story from Reuters
(Reuters) - As many as 30 million U.S. homeowners would be able to refinance their mortgage at record low interest rates regardless of their credit situation under a plan unveiled on Tuesday by a Democratic lawmaker.
The legislation would allow for blanket 30-year, fixed-rate mortgages at the prevailing market rate, now around 4.3 percent, for anyone seeking to refinance a government-backed loan, Representative Dennis Cardoza told Reuters on Tuesday. Homeowners could refinance irrespective of their income, credit history or loan-to-value ratio. The plan, which faces an uphill battle in Congress, would help a wide swath of borrowers and is more comprehensive than the narrowly targeted efforts President Barack Obama has tried to date.
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