Fall Meditation from Byron on Vimeo.
MBS- FNMA 4.5 price: 102-18 closed.
10-yr Treasury Yield: 3.20% closed.
I can hardly allow to go unmentioned this article about a report by a University of Arizona law professor who suggests that it is ultimately a cultural product of perhaps “shame” that prevents home owners from just walking away from their underwater mortgages. And in spite of the shame, he suggests it may probably be the best option for many homeowners. Perhaps it is a compliment to our general sense of fairplay, and to our values, that he suggests we would uphold our agreements and make all attempts possible to maintain our contractual obligations.
But… and it is a big BUT… it seems also worth recognizing how we are now becoming so full of disdain for the banking industry that reasonable people are considering the suggestions of this law professor more and more. Lending institutions have reaped what they have sown in so many unimaginable ways that I wonder how many Americans, if polled, would see the banking industry as possibly the biggest pariah in the nation.
Arguably, they are the cause of the meltdown we are experiencing. Arguably, they have squirreled away the funds handed over to them by taxpayers intended to help pull us out of the meltdown they created. And according to the TARP overseer, they are pretty unrepentant about their continuingly sluggish response to the consumers whose money they manage and service.
So, we have a change in the paradigm happening in our nation, one where we have developed some pretty harsh views of the banking industry’s exploits. And just as we view the behaviors of spoiled children as falling far short of admiration, perhaps we view the banks collectively the same way.
If it’s true that banks have had a far greater demonstration of support than they’ve earned, and if they do not find it within their own ranks to share the “haircut” that the American consumer has taken, then it’s my prediction that banks will soon find themselves somewhat brutally dismantled by a populist groundswell advocating consumer protections and industry regulations like perhaps has not been seen since the last time the American public wrestled its financiers into submission many decades ago.
It may be what is required. And today, perhaps some long-awaited muscle has been added to the wrestling team. Boy, we need it!
MBS- FNMA 4.5 price: 102-18
10-yr Treasury Yield: 3.22%
Week 4, November 2009
In the article below is an interesting court case judgment in Suffolk County New York’s Supreme Court where a judge evidently decided that the credibility of a bank was so egregiously eroded by its actions (and non-actions) in resolving a homeowner’s attempts to save ownership of her home through various good faith means (including modification, short sale, adding additional borrowers, etc.) that the judge in the end awarded 100% equity ownership of the home to the homeowner. While it perhaps sounds on its face like an activist judge took a bank to task for poorly responding to a homeowner’s earnest attempts to save her home, in reading into it, the offenses evidently admitted by the bank include inflating the amount owed to the bank by over 60% and also declaring the borrower defaulted on a forbearance agreement that “had not been sent to Defendant until after its stated first payment due date and hence, Defendant could not have consummated it under any circumstances…” I will not begin to suggest that I have enough knowledge to offer any comments on this case. I only wish to point it out to you readers so that you might further investigate for yourselves if you are interested. All I can say is that these battles include significant stakes where a broad consideration of the facts is surely necessary. And in this case, a harsh judgment was rendered for what was deemed a harsh offense by this bank.
See here for more about the Suffolk County case.
To contact me about financing your dream-home click here.
Weekend Wanderer’s Events
…finding the treasures in your town and beyond.
Two for This Weekend:
Lawrence Ferlinghetti: Evolution of a Painter in San Francisco: Exhibition of 60 years worth of paintings by San Francisco’s poet laureate. “Lawrence Ferlinghetti is not only a master of words and metaphors, but also a master of color and visual symbolism. He has been painting and drawing for as long as he has been writing. This solo exhibition is the first to take a retrospective view, giving insight into Ferlinghetti’s development as a visual artist over six decades.”
Kolo Festival in San Francisco: ”For an exciting weekend of Balkan and Greek dance, music, culture and food, come to the 58th annual Kolo Festival, Nov. 27 & 28. There will be dance and music classes, review sessions, live music, culture corners, and specialty food.” Come see another one of the many cultures that makes up the brilliant fabric of our community as they share their heritage in good food, music and dance.
Help Your Fellow Living Beings:
Project Homeless Connect: ”An estimated 6,000-12,000 people are homeless on any given night in San Francisco. Twenty-percent are chronically homeless. Widespread foreclosures, the demands of returning veterans, and the reduction of federal funding for affordable housing create constant challenges in a declining economy. Dealing with the vexing problem requires intervention not only by government but also the community at large.” Moving people from homelessness towards a restoration of home is what this is all about.
Two Weekends from Now:
Todd Rundgren: A Wizard, A True Star at The Palace of Fine Arts Theatre: In response to audience demand, the great musician Todd Rundgren will perform his entire 1972 album A Wizard, A True Star live in the Palace of Fine Arts Theatre in San Francisco. Hear some of the background to the production idea here in a radio interview from Detroit prior to the Akron, Ohio show. If you know Todd Rundgren you’ll want to check this out; and if you don’t know him, you might want to take a moment to check him out!
Pic of the Week… from my phone camera:
Right out front, just the other day…
MBS- FNMA 4.5 price: 102-11
10-yr Treasury Yield: 3.23%
I participated in a neighborhood clean-up today in advance of the big Dimond Thanksgiving Dinner in Oakland. It was a nice feeling to join these good folks who truly are part of the solutions in our community. Publishing the Momentary Getaway early today so I can get on with some preparations of my own. Hope everyone has a great Thanksgiving!
Diverse Communities Team UP to Clean UP in San Francisco from Polidoc on Vimeo.
MBS- FNMA 4.5 price: 102-10
10-yr Treasury Yield: 3.32%
MBS- FNMA 4.5 price: 102-09 closed.
10-yr Treasury Yield: 3.30% closed.
We’ve definitely seen improving conditions for mortgage rates these last couple of days. Both the market for mortgage-backed securities AND for Treasuries have improved. It does help to keep hope alive for this beleaguered mortgage biz.
Some of the most significant challenges remain in the process of conditions for getting loans closed though. Consistently, we have challenges with appraisals that must now comply with the Home Valuation Code of Conduct— a well-meaning, but ill-conceived regulation that has placed an impenetrable wall between brokers and appraisers for loans intended for sale to Fannie or Freddie. While we have many in our industry who are trying to get those rules amended, or removed, it seems the HVCC is here to stay— at least for the foreseeable future.
On the much brighter side, we are seeing some of the efforts by members of Congress and regulators pan out in improving sales of homes. October showed signs of life, for sure. And with the extension, and improvement, of the home buyer’s tax credit coupled with a protracted period of low rates, we are in a good period for people to get those loan applications into process. The bumps along the way are just part of the ride, I guess.
But ultimately, the concept around which most of this industry revolves is the idea of your home being your castle. It’s yours, and it’s a place where you can hang up your hat, lie supine on the sofa in your living room (if you so choose), and exhale in an ever-so ephemeral moment of peace in this crazy world. Just don’t listen to that leaky faucet! 
As Turkey Day approaches…
MBS- FNMA 4.5 price: 102-01
10-yr Treasury Yield: 3.34%
Yosemite 5/28/08 from Chris Falkenstein on Vimeo.
MBS- FNMA 4.5 price: 102-01 closed.
10-yr Treasury Yield: 3.36% closed.
So here’s another one for you:
One of Fannie Mae’s new rules is that it will not purchase a loan file from a lender if it has a tradeline (credit account) that is “in dispute”. So, even if it’s been years since the dispute— and the creditor in question never bothered to report any updates to the three credit bureaus, such as that it’s no longer in dispute— the credit report must be cleared of this before a lender who intends to sell the file to Fannie Mae will fund the loan.
Sounds like it shouldn’t be so challenging, right? To clear something from a credit report you just need a written confirmation from the creditor expressing what should be cleared up and then you must send this confirmation to the three bureaus. In general it should take a month or so to get it cleared. If a rush is needed, most credit reporting companies offer an expedited option to get this done in a few days. BUT… to get the darn letter from the creditor they may take weeks depending upon who the creditor is.
My suggestion to you borrowers is to get involved in these situations. You have far more clout than anyone else in dealing with your creditor. Your loan officer and processor can bark all they want to a creditor and it may not mean a hill of beans to a bank or mortgage servicing company who may claim they have to “research” the situation before issuing the letter. If you as a borrower have either exhausted attempts to resolve a dispute or have no dispute with what is reported, it shouldn’t take days (let alone weeks) for that creditor to issue a written confirmation that there is no longer any dispute on the account.
If you find disputes on your credit report, contact the creditor right away and make the effort to obtain written confirmation. Get it off of the three credit bureaus records: Equifax, Trans Union, and Experian. You’ll be glad you did because it won’t come up on any more credit reports ONLY if you remove it from all three bureaus.
MBS- FNMA 4.5 price: 101-23
10-yr Treasury Yield: 3.39%
Travel Time Lapse Winter ’09 from Brad Kremer on Vimeo.