I asked Mr. Thordsen if I could copy this and present it here for you and of course he said yes. This is very important for professionals and consumers alike.  Please read;

NO MATTER WHAT YOU HAVE BEEN HEARING, HUD STILL INTENDS TO ENFORCE USE OF THE NEW GFE AND HUD-1 IN JANUARY 2010. SO USE THEM OR ELSE.

HUD/RESPA SAYS WE WILL EXERCISE RESTRAINT IN ENFORCING THE NEW RULE FOR THE FIRST 120 DAYS BUT AND I DO MEAN BUT- - - IT IS STILL THE LAW

FACTS

On November 13, 2009 the U.S. Department of Housing and Urban Development (HUD) announced that for the first four months of 2010, the staff of the Mortgagee Review Board (MRB) will exercise restraint in enforcing new regulatory requirements under the Real Estate Settlement Procedures Act (RESPA), due to take full effect on January 1. The MRB instructed its staff to exercise such restraint in considering an action against FHA-approved lenders who have demonstrated that they are making a good faith effort to comply with RESPA’s new requirements.

HUD is also asking other federal and relevant state enforcement agencies to exercise the same 120-day restraint in enforcement for non-FHA originators and other settlement service providers who demonstrate the good faith effort to implement RESPA’s new rules.

In determining whether a mortgagee has made a good faith effort, MRB staff will consider whether the mortgagee has relied on the new RESPA rule and other written guidance issued by the Department, and the extent to which the mortgagee has made sufficient investment and commitment in technology, training, and quality control designed to comply with the new rule.

On January 1, 2010, HUD will require that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. Closing agents will also be required to provide borrowers a new HUD-1 Settlement Statement that clearly compares consumers’ final and estimated costs. The new RESPA rule became effective on January 16, 2009, but provided a one-year transition period for the mortgage industry to incorporate these changes. HUD will continue to work with the mortgage industry during this period, including providing a comprehensive set of frequently asked questions (FAQs) on its website. (hud no. 09-215, 11-13-09)

MORAL

Be very very careful here. HUD is not saying it will not enforce the new GFE and the new HUD-1. It is saying we will take into consideration your mistakes if you are attempting to comply in good faith. In other words you still have to do it - - - OR ELSE!

NOTICE THERE IS NOTHING IN THE ABOVE PRESS RELEASE FROM HUD THAT STATES IT WILL NOT ENFORCE THE NEW GFE AND HUD-1. IT ONLY SAYS THAT IF HUD WANTS TO DISCIPLINE YOU FOR NOT USING IT PROPERLY IT WILL CONSIDER WHETHER YOU ATTEMPTED TO USE THEM IN GOOD FAIITL.

USE THEM OR ELSE I WILL BE DEFENDING YOU BEFORE THE MORTGAGEE REVIEW BOARD TO KEEP YOUR LICENSE OR YOUR MONEY OR BOTH.

Herman Thordsen

Law Offices of Herman Thordsen

6 Hutton Centre Drive

Suite 1040

Santa Ana, CA 92707

(714) 662-4990

www.lendinglaw.com

Chris Miscellaneous

*Posted with permission*
Chris Sorensen, I was referred to you by ****, a fellow musician I meet on Craig’s List and he said you can possibly help me. Well I’ve had the worst year in my life starting July 2008. I quit my job not knowing that the economy would take a dump and I couldn’t find a job, so that means no unemployment monies. I was married at the time and my wife, who was working, was having to pay all the bills with her paycheck and what she put on her credit card. I found temp work for a short amount of time but nothing permanent. In April of 2009 my wife left me and walked out on the house and me because I was, “costing her too much money by not working” and took our daughter to live with her in an apartment. I do get to have my daughter on the weekends but my marriage is over and I have this house and utilities and just recently I have been working at a temporary agency at $**/hr with no permanent position offered. I’ve had to literately beg, borrow and steal to make it work, and I’m ashamed of some things I’ve had to do to get the money. I am not late on any mortgage payment, but I don’t know if I can do this any more, I’m at the end of my rope. My mortgage company is flaking on getting me a loan modification, they went bankrupt and the new mortgage company can’t get their act together. I am lost.
I don’t want to lose my house if I can help it. What kind of help can you offer me, or can you point me in the direction to see if owning a house is something I can do anymore without walking away from it. You can reach me at ***

This story underscores the need for quality professionals, both on the non-profit side, as well as the private sector, to get involved and help those in need.

Chris Miscellaneous

Financing Condo’s just got harder.  Be aware before you begin your search.

■Complexes must have 2 or more units

■No more than 25% of the complex’s total floor can be commercial

■No more than 10% of the units may be owned by one investor

■No more than 15% of the units can be delinquent in their fees

■At least 50% of the units must be sold for FHA Financing

■At least 70% of the units must be sold for Conventional Financing

■At least 51% of the units must be owner occupied

■The reserve study must be no more than one year old and must show complex is at least 60% funded

■Complex approvals will expire 2 years from the date it was placed on HUD’s list

■HOA Certification (“CERTS”) will be required to verify no material changes since complex was approved on all loans

Additional Approval Requirements for FHA Financing

■Complex’s with 3 or less units – No more than 1 unit encumbered by FHA financing

■Complex’s of 4 or more units – No more than 30% of the total units encumbered by FHA financing

Chris Miscellaneous

I have written on this before and it allows me to at least see that logic does in fact prevail. When I was unaware how it made sense to foreclose instead of offering a modification to a struggling homeowner, I was often frustrated and confused.
As it continues to become more clear to me how they make their money, I can at least teach all of you how to better set yourself up for a successful modification request and set your expectations better.
As a consumer advocate and teacher, I want to be able to better explain to you why your modification request is taking so long and why the lenders are truly offering “trial modifications” as opposed to permanent ones.
I have met some amazing people at Chase, BofA, Wells Fargo, HSBC, Fannie Mae, Freddie Mac, FHA, Springboard, Fair Housing and at local County government officials, along with many, many more, who all care so deeply about you that they are willing to volunteer their time and spend long hours doing their best to assist you in your time of need.
What I am personally challenged with, is some of the organizations that allow all of these great individuals to work so hard and then seemingly stack the odds against them, by not practicing full disclosure.
Modifications are loan request. Pure and simple. You are attempting to prove income and motivate the servicer and actual owner of the borrowed money to make a decision that may not be in their best interest, financially speaking.
This is a tough task and the abysmal number of permanent modifications by comparison to the serious need that all recognize is growing, is proof that something has to change.
I found the article below interesting and I hope this allows you to sleep a little better at night, knowing that things in the World do make sense, you just have to follow the money. Here is the article:

Servicers have four main sources of income, listed in descending order of importance:

* The monthly servicing fee, a fixed percentage of the unpaid
principal balance of the loans in the pool;
* Fees charged borrowers in default, including late fees and
“process management fees”;
* Float income, or interest income from the time between when
the servicer collects the payment from the borrower and when
it turns the payment over to the mortgage owner; and
* Income from investment interests in the pool of mortgage loans
that the servicer is servicing.

Overall, *these sources of income give servicers little incentive to
offer sustainable loan modifications, and some incentive to push
loans into foreclosure*. *The monthly fee* that the servicer
receives based on a percentage of the outstanding principal of the
loans in the pool provides some incentive to servicers to keep loans
in the pool rather than foreclosing on them, but also provides a
significant disincentive to offer principal reductions or other loan
modifications that are sustainable on the long term. In fact, this
fee *gives servicers an incentive to increase the loan principal by
adding delinquent amounts and junk fees*. Then the servicer receives
a higher monthly fee for a while, until the loan finally fails. Fees
that servicers charge borrowers in default reward servicers for
getting and keeping a borrower in default. As they grow, these fees
make a modification less and less feasible. The servicer may have to
waive them to make a loan modification feasible but is almost always
assured of collecting them if a foreclosure goes through. The other
two sources of servicer income are less significant.

If servicers’ income gives no incentive to modify and some incentive
to foreclose, through increased fees, what about servicers’
expenditures? Servicers’ largest expenses are the costs of financing
the advances they are required to make to investors of the principal
and interest payments on nonperforming loans. *Once a loan is
modified or the home foreclosed on and sold, the requirement to make
advances stops. Servicers will only want to modify if doing so stops
the clock on advances sooner than a foreclosure would*.

*Worse, under the rules promulgated by the credit rating agencies
and bond insurers, servicers are delayed in recovering the advances
when they do a modification, but not when they foreclose*. Servicers
lose no money from foreclosures because they recover all of their
expenses when a loan is foreclosed, before any of the investors get
paid. The rules for recovery of expenses in a modification are much
less clear and somewhat less generous.

In addition, *performing large numbers of loan modifications would
cost servicers upfront money in fixed overhead costs, including
staffing and physical infrastructure, plus out-of-pocket expenses*
such as property valuation and credit reports as well as financing
costs. *On the other hand, servicers lose no money from foreclosures*.

This is a very important document for anyone looking to do a loan modification. I strongly suggest you read it, download it and act upon it.

By the way, the largest servicers are :

* Bank of America: $2.1 trillion, up from $530 billion a year
earlier (via its acquisition of Countrywide – this is WHY bank of
America bought Countrywide)
* Wells Fargo: $1.8 trillion, up from $1.5 trillion a year earlier
* JPMorgan Chase: $1.5 trillion, up from $795 billion a year ago
(thanks in large part to its acquisition of Washington Mutual)
* CitiMortgage (a division of Citigroup): $792 billion, down from
$799 billion a year earlier. Citi is hurting i everywhere)
* ResCap: $391 billion, down from $449 billion in the first quarter
of 2008.

As you can see, consolidation has meant the big are getting bigger. Despite a recession, servicing fees are _increasing_, not decreasing.

This article was sent to me from a friend and she found it at: http://www.creditwritedowns.com/

Chris Miscellaneous

This article can be found at: http://www.creditwritedowns.com/

I read on this subject virtually every day and there are many opinions available. However, there seems to be a consistent theme and that is, more foreclosures are coming.

We must remind ourselves that we purchased our homes for more than investment purposes and that we are all in this together. If you’re neighbor is not doing well, you’re not doing well.   I share this not to cause fear, but to point out the white elephant in the room so those who are struggling, can make more informed decisions about their current property.

Ivy Zelman: “Home prices are going back down”Posted by Edward Harrison on 20 November 2009 at 1:22 am

The Mortgage Bankers Association is reporting that nearly one in ten households with mortgages are at least one payment behind. That is a record, my friends. And it certainly means we cannot believe house prices have permanently stabilized.

The New York Times says:

“The delinquency figure, and a corresponding rise in the number of those losing their homes to foreclosure, was expected to be bad. Nevertheless, the figures underlined the level of stress on a large segment of the country, a situation that could snuff out the modest recovery in home prices over the last few months and impede any economic rebound.

Unless foreclosure modification efforts begin succeeding on a permanent basis — which many analysts say they think is unlikely — millions more foreclosed homes will come to market.”

Translation: there are a lot writedowns in residential real estate still coming. This is one reason bank credit is not going up significantly despite zero interest rates. Remember when I wrote about “extend and pretend?” This is the kind of thing that is holding up bank balance sheets. The article I wrote in October on short sales in North County San Diego highlights the issues involved. But at some point banks will have to take the hit (unless house prices magically go up to near previous levels – what everyone except renters wants).

Ivy Zelman has the same sinking feeling I do here; we don’t think house prices are necessarily heading up permanently. She even throws in a mixed metaphor to get her point across. She says:

I’ve been pretty bearish on this big ugly pig stuck in the python and this cements my view that home prices are going back down.

Look, the fake recovery is now in full swing. But I expect the recovery to hit a brick wall by 2011, if not earlier. While the proximate cause of my concern is the likelihood of increased taxes and/or reduced spending by the Obama Administration, it is jobs that concern me. See Calculated Risk’s post showing the correlation between unemployment and mortgage delinquency and you see the connection. The fact is we have a record number of foreclosures and that is a direct result of rising unemployment. Unemployed people don’t have any money, so they don’t pay mortgages. It’s as simple as that.

The interesting bit about the New York Times article was this:

The number of loans insured by the Federal Housing Administration that are at least one month past due rose to 14.4 percent in the third quarter, from 12.9 percent last year. An additional 3.3 percent of F.H.A. loans are in foreclosure.

The fact is the F.H.A is the next Fannie Mae. If you’re looking and wondering where the next bailout will be, take a good look at the F.H.A. Not only is this agency guaranteeing hugely delinquent loans, but the Economic Stimulus Act of 2008 doubled the maximum loan that it could insure to $729,750 in order to cover jumbo mortgages common in cities like New York, San Francisco or D.C.. The purpose was to give liquidity to the frozen jumbo market in high-cost cities. However, the net effect is that the F.H.A was expanding at exactly the time when loan quality was falling. There will be significantly more losses as delinquencies mount.

To make matters worse, the F.H.A. has an abysmally low 0.53% insurance reserve ratio – that’s the lowest ever. Yes, this ratio includes expected future losses, but you don’t have to be a rocket scientist to know any downside wipes these guys out. And that means more taxpayer money will be forthcoming.

Is this a pretty picture? No. But, is this what is going to happen? Of course it is. So when the bailouts come because the foreclosures begin again in earnest and politicians start saying, “who could have known?” you will have every right to be disgusted

Chris Miscellaneous

A Non-Profit Corporation
www.freehomeownershiphelp.org

November Housing Report

In Riverside County:
Notice of Defaults-Over the last 120 days=13296 / For Oct. 3872
Notice of Trustee Sales Currently Scheduled=15578 / For Oct. 4377
Actual Trustee Sale-Over the last 120 days=6600 / For Oct. 1997 Sold to 3rd party= 496

In San Bernardino County:
Notice of Defaults-Over the last 120 days=10282 / For Oct. 3167
Notice of Trustee Sales Currently Scheduled=12618 / For Oct. 3416
Actual Trustee Sale-Over the last 120 days=5404 / For Oct. 1633 Sold to 3rd party= 300

Commercial, Apartments, Industrial, Agriculture & Land/ last 120 days
Riv. NOD=407 NOS=242 Sale=267 (The largest number is land)
SB. NOD=319 NOS=188 Sale=211 (The largest number is land)Source, Foreclosure Radar

Foreclosure Radar reports;
Banks increased their Bank Owned (REO) inventory slightly, by taking back 22.24 percent more properties than the preceding month, while REO resale’s declined. The decline in REO resale’s is not unexpected as REO inventories have declined to a point that is insufficient to meet market demand.
The majority of loans foreclosed on in October 2009 were originally made between January 2005 and
December 2007.

Commentary

As a stakeholder in the non-profit collaborative HOCIE (Housing Opportunity Collaborative of the Inland Empire), I have enjoyed the opportunity to attend several training sessions recently with Treasury, Fannie Mae & Freddie Mac. In addition, through several other reports, I have come to the conclusion that much of the challenges in the approval process of the Presidents HAMP modification program have a lot to do with consumers not being properly prepared prior to the submission of all of their paperwork. This fact, further underscores the necessity to encourage and promote consumer education in this arena and the promotion of the non-profit community which is available to serve this need.
It is extremely evident the Banks do not wish to foreclose. Since this is the case, we must assist them in preparing their borrowers to submit the most complete and detailed modification application possible using high quality origination practices known by many in the banking industry.
In my opinion, until this issue is aggressively addressed and the public is better prepared when dealing with their servicer, we will be delayed in the desired outcome of the program. Far too many are asking for help and their request must be reviewed regardless of its merit. This is placing those who are in need and who actually qualify for the available programs, in jeopardy.
The collaboration is made up of hard working dedicated individuals who are having to encounter a lack of trained professionals on the lenders side and in turn the lenders are having to deal with a consumer base who is contacting their lender directly without the assistance of a trained non-profit counselor, or otherwise. This was the common concern expressed at a recent training in Costa Mesa, CA. put on by the GSE’s and NeighborWorks.

Fraud Lowlights

An Orange County man has been sentenced to 11 years in prison for orchestrating two identity theft schemes in which he obtained personal information from hundreds of consumers and used the data in an attempt to fraudulently obtain $1.5 million from home-equity lines of credit and credit card accounts.
According to George S. Cardona, U.S. attorney for the Central District of California, Martin Quoc Pham of Garden Grove, Calif., was sentenced to 132 months in federal prison and ordered to pay $540,000 in restitution.

Home Staging

With foreclosures and the number of vacant homes on the market for sale on the rise, homeowners are becoming more vulnerable to fraudsters and scam artists. As a means of protecting homeowners from being exploited by fraudsters, a national home staging company is employing live-in caretakers.
According to Showhomes, with 56 franchises in 23 states, the company is seeing dramatic results with its method of employing qualified people as live-in caretakers to keep homes in show condition. The practice, according to the company, prevents squatting or taking possession and mitigates the potential for scams.

Training in all areas, especially fraud prevention is needed

Fraud continues to flourish in unstable metro areas in Arizona, Nevada, Southern California and Florida and is popping up in surprise locations like Bend, Ore., according to panelists at the SourceMedia Loan Modification Conference in Dallas.Ann Fulmer, vice president of business relations at Interthinx, said fraud is increasing in these markets among distressed borrowers through foreclosure rescue and loan mod scams. The industry is seeing illegal flipping of REO properties, false appraisals, tarnished broker price opinions and loan reductions in short sales. “There is no training in fraud recognition for servicers. They are pressed for time,” she told conference attendees.

Countrywide in the News

A federal judge rejected a request by Angelo Mozilo, the former CEO and founder of Countrywide Financial Corp., to dismiss a Securities and Exchange Commission lawsuit accusing him of securities fraud and insider trading. Mr. Mozilo’s lawyer David Siegel called the court’s order “disappointing”.
Two years ago CFC’s shares were trading in the $40 range. By the time Bank of America bought the firm in the summer of 2008, its stock was trading as low as $3. Investors lost billions on CFC.

Sign of Things To Come?

Ohio’s attorney general is suing American Home Mortgage Servicing — a business controlled by vulture fund investor Wilbur Ross — accusing the company of what the state calls “incompetent and inadequate customer service

Bernanke Feels Pretty Good About the Signals
The recent pickup in the economy “reflects more than purely temporary factors” and continued moderate growth is likely, Fed Chairman Ben Bernanke said in a speech Monday, though constrained lending and weak labor market remain headwinds to robust growth. Inflation expectations haven’t responded to upward or downward pressures, he said, noting plenty of resource slack. Bernanke pledged that low-interest, loose monetary policies would continue for an extended period. In a follow-up Q&A, Bernanke said it’s “not obvious” that asset prices are out of line, at least inside the U.S., and that “we can never say never” on using interest rates to deflate bubbles, adding we won’t have a “real market-based financial system until it’s safe to let a financial firm fail.”

The Financial Services Forum Is At It Again

The idea of breaking up these large firms is gaining in popularity on the Hill. So much so, the powerful lobbying group of 18 of the World’s largest financial firms was at Barney Frank’s door asking him to reconsider this idea.
If history truly repeats itself, this idea that proved a useful tool after the Great Depression to reign in some of the power controlled by a few, will fall to the side, along with the once popular “cram down” legislation” idea.
In brief, the lenders position, is that size does not matter; it was the concentration in a particular segment of the market that mattered most and with their large size comes the ability to make major loans to customers. Their position claims that breaking them up into smaller firms means damage to the US economy in the long term.
Some on the Hill are asking how much more damage could possibly come beyond that which they have already created.

HUD ANNOUNCES RESTRAINT IN RESPA ENFORCEMENT FOR FIRST FOUR MONTHS OF NEW RULE

WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced that for the first four months of 2010, the staff of the Mortgagee Review Board (MRB) will exercise restraint in enforcing new regulatory requirements under the Real Estate Settlement Procedures Act (RESPA), due to take full effect on January 1. The MRB instructed its staff to exercise such restraint in considering an action against FHA-approved lenders who have demonstrated that they are making a good faith effort to comply with RESPA’s new requirements.
Here is the new HUD-1: http://www.hud.gov/offices/hsg/ramh/res/hud1.pdf
Here is the new Good Faith: http://www.hud.gov/content/releases/goodfaithestimate.pdf
Please note, this does not mean it does not go into effect on Jan. 1 2010. It simply means they are going to give the industry time to get used to it before they take aggressive action against those who fail to adhere to the new rules.
GMAC Say’s; “Hold On!”
GMAC Financial Services, while in the midst of talks with the Treasury Department regarding possible taxpayer bail out number three, relieved its current CEO and requested that no funds be issued until its new CEO was able to create his own financial plan.

The Fed’s Are Making It Mandatory, Temporarily, to Disclose Who Owns Your Mortgage
The Federal Reserve Board approved a temporary rule requiring that consumers be notified within 30 days when their mortgage loan has been sold or transferred to a new investor.
If the loan is purchased and Title is transferred, this rule applies, if only a partial interest is obtained, it does not. In example would be a partial interest in a mortgage backed security pool.
This information is critical to a borrower who is attempting to save their home through the modification process.
Trans Union Reports Delinquencies
Residential delinquencies increased for the 11th straight quarter, hitting an all-time high of 6.25% for the period ending Sept. 30, according to new figures released by TransUnion. Basing its findings on a random sample of 27 million credit files, the company found that Nevada leads the nation in delinquencies (14.5%) with Florida a somewhat close second with 13.3%. Year-over-year, mortgage delinquencies are up 58% and are expected to continue rising until the national job picture improves. The credit report agency defines delinquent as any loan where the borrower is 60 or more days past due. The Mortgage Bankers Association, which releases its delinquency figures on Thursday, defines delinquent as 30 days past due or more. According to National Mortgage News and the Quarterly Data Report, there are 60.5 million outstanding residential loans in the U.S. with a face value of $9.86 trillion.
Banks are simply not recording notices of default, the beginning of the foreclosure process and the reason are many.
Congressional Budget Office Executive Director Is Worried
“Federal debt held by the public will equal about 60 percent of GDP by the end of this fiscal year, the highest level since the early 1950s. As a result, further large deficits and increases in the debt will raise serious economic risks.” http://www.cbo.gov/aboutcbo/organization/od.htm
Most economist who follow history and support the current decisions, point to the fact we have had large deficits before in order to take care of our needs during a down turn in the economy. Those who express concern over the current decisions being made point out that we have become dependent on federal spending, even in good times and this is the key difference. Political will to say no, does not seem possible and therefore, the rate at which our deficit continues to grow is exceeding all previous estimates.
A Tale Of Two Cities
While no self sacrificing love story, this is a story of contrast and the Federal Reserve Presidents and Chiefs, differing opinions on how to deal with our apparent two economies. Many in the Federal Reserve feel strongly that our recovery is underway and will be well underway by mid 2010. Because of this they have become increasingly vocal in their concern over our artificially low interest rates. The main message is that we should not allow the pockets (The pockets, by and large, are the “Sand States,” or NV, FL, CA & AZ ) and their housing challenges to dictate policy for all.
In direct contrast to what Chairman of the Board Ben Bernanke had to say, Cleveland President, Sandra Pianalto, who moves into a voting slot on the Fed panel next year, told a group attending a conference in Ohio;
“Though we have seen some signs that the worst may be over, the housing industry is not out of the woods yet, nor is the broader economy,”
One cannot help but feel at a loss when so many of our most intelligent economic minds differ in their opinion and approach to today’s conditions. Recently, it was pointed out to me in a telephone conversation with Martin Andelman, a behavioral economist and well respected consultant, that the same headlines we are reading today about the economy occurred before, IN 1930!
The market crashed in 1929 and then rebounded over 50% in about a five month period. Sound familiar? We then went from a little over 8% unemployment to 25% and the market went down 86% by July of 1932.
Here are just three headlines from the year 1929 as printed in The Wall Street journal, that are eerily similar to what we are reading today;
K. Hogate, VP Dow, Jones & Co., decries “fetish of a corporation surplus” leading to current accumulation of billions of cash on corporate balance sheets which are “passively at work, but have no velocity.” Questions idea that large surpluses increase safety, suggesting they may instead lead to speculation and sloth. Calls for substantial distributions of “frozen” surplus cash to shareholders as means of helping to restore prosperity. J. Fayne of Hornblower & Weeks hails proposal.
R. Graham, VP Graham-Paige Motor, believes industrial depression has reached its end; belief is based on record savings banks deposits, low commodity inventories, and perception that “mental attitude of the general public is changing … people are becoming more optimistic and willing to spend money.”
A. Reynolds, Cont’l. Ill. Bank & Trust Chair., criticizes Fed. Reserve easy-money policy as ineffective in reviving business, says it may cause banks to buy bonds that have “not always turned out fortunately” in the past; “it is a serious question as to whether a commercial bank should be a large purchaser of such bonds.”
Disclaimer; I am not an economist and I am not attempting to capitalize on fear. I do find it fascinating to read our leaders points of view and draw comparisons to what was being stated in 1929 through 1930. Many highly intelligent individuals are widely reporting the economy is in full recovery and the same groups have others within their ranks that are not so sure. From the Federal Reserve, to the Office of the Comptroller, The Congressional Budget Office and many of our Economic Professors teaching our next round of leaders, we are hearing from them just how difficult it is to predict and control an economy that is so intertwined with the rest of the World.
Overspending no matter who is writing the checks cannot be sustained. The current economic numbers that are positive, are being reported that they are in direct correlation to the stimulus money infused. With zero political appetite to foreclose and the disconnect between what the American population expects from their leaders vs. the recognition of the origins of the financial resources required to provide said expectation, we seem to be on a fast track to additional correction.
Below is Lou Holtz Opinion, today it seems harsh, but I loved the fact that he believed in his players so much and offered no excuses for them;
“You aren’t entitled to anything. You don’t inherit anything. You get what
you earn – your position on the team. You’re treated like everybody else. You’re held
accountable for your actions. You understand that your decisions affect other people on
that team…There’s winners, there’s losers, and there’s competitiveness.”
Lou Holtz http://www.irishlegends.com/loubears/louholtzbio.htm
Good News! Goldman Sachs CEO is Sorry!
NEW YORK (Reuters) - Goldman Sachs Group Inc. facing criticism over its outsized profits and bonuses, will contribute $500 million to programs that help small businesses, the company said on Tuesday November 17. GS’s CEO Blankfein apologized for Goldman’s role in the financial crisis while speaking at an event in New York, according to Bloomberg News.
This seems to be Goldmans advisors (Including Buffet) way of attempting to do damage control after GS appeared less than sympathetic to the plight of the economy. Blankfein was quoted in London’s Sunday Times newspaper earlier this month as saying he is just a banker doing “God’s work” — stoking public anger even more.
Seriously Good News. Retail Results For Q3 Better Than Expected For Three Retailers
Target, TJ Max, and Saks Fifth Ave, all posted solid Q3 results Tuesday, a sign consumers have begun spending. TJMaxx parent TJX had the strongest results, with quarterly profit up 32% year-on-year. Target’s profits rose 18%, and Saks surprised analysts by earning a small profit after more than a year of straight losses. Meanwhile, credit card researchers Synovate Mail Monitor and Credit Karma said average credit-card balances increased during October. The average consumer carried $7,573 of credit-card debt, a 14% increase from $6,641 a month earlier. The numbers indicate the holiday spend may not be as disappointing as was originally expected. From NPR story. http://www.npr.org/
New York Times Reports Top Wall Street Firms Earning Record Profits
Goldman Sachs, Merrill Lynch, Morgan Stanley and JP Morgan Chase are making record profits according to Thomas P. DiNapoli, the Comptroller of the State of New York. In fact, if the profits continue, bonuses at the six banks could exceed the $162 billion paid 2007 — the year before the financial crisis hit stock markets.
In a demonstration of rare restraint, I will refrain from comment and simply offer a link to the story;
http://www.nytimes.com/2009/11/18/business/18wall.html?_r=1

Spending Trillions by the Feds, Can’t Go On…

The mortgage/housing market is being supported by the Fed’s continuing to purchase mortgage backed securities. The question many are asking is; “What happens when they stop?” The obvious answer is that we will all have to begin to pay this money back together and the first thing that will have to occur to attract investors back into the mortgage backed security market will be higher rates. Much higher.
Can it continue and should it continue? Is deficit spending since the 1970’s sustainable? If our apparent fix of a weak economy, that is a result over overspending, is to simply spend more in the hopes it will stimulate growth, I believe we need to reconsider our position.
The above graph illustrates a growth that began as fairly normal then accelerated with the advent of investment vehicles and advice of brilliant minds that allowed the top Wall Street investment firms to sell a mortgage more than once. Are we at the bottom? Many who report on this data, say no.
Demand for homes is high as is the affordability index. In fact, Dr. Husing (http://www.johnhusing.com/) reports the affordability index is at its highest point on record in the Inland Empire.
The unknown variable that will be interesting to witness, is how many will continue to pay on mortgages that are 100K to 400K upside down? Especially, as the reports of homebuyers around them begin to circulate that their new neighbors are in the same or superior home for half of their existing mortgage. And, these new neighbors report that they themselves had lost their home just two to three years earlier in a short sale.
The servicers are calling this potential decision to stop paying ones mortgage, the “moral hazard fear” and the bloggers and advocates of the consumer call this “just desert” for those who took a 100K mortgage instrument and leveraged it 40 to 1.
See: http://en.wikipedia.org/wiki/Lehman_Brothers,_Kuhn,_Loeb_Inc.#Subprime_mortgage_crisis
In conclusion
Things seem to be in a holding pattern. Foreclosures that do occur are being absorbed by a healthy appetite for well valued homes. Many are bracing for the now infamous Option-Arm market to hit over the next two and half years and we will see how the Feds react to it.
Deficit spending during times of crisis is not necessarily a bad thing and therefore I believe the Feds will continue to buy mortgage backed securities. The challenge is, that most agree this action should not be coming on the heels of deficit spending during what all considered to be good times.
The homeowner today needs to be aware of the exact rules of the modification plans available, so false hope will no longer be the norm and our communities will stop being placed on hold while inappropriate expectations rule the day. Teaching the public about all of their options and how to navigate through this complicated maze of rules and tax issues is the number one way to offer hope for the future and get our economy moving.
Regardless of your position or opinion of the current market conditions, the one thing I believe all of us share is the observation that the need for adult financial literacy, is a need that will be with us for the foreseeable future and to ignore this social need, will come at great cost to our communities.
Chris Sorensen
Founder, USA HELP, Inc. info [at] freehomeownershiphelp [dot] org
P.S. We’re available
The HELP program is available to speak to your group or business on the topics of home ownership and the impact of the current market conditions. How we got here, what’s next and what are the exact rules of the Make Home Affordable program. Understanding short sales and all of the subtleties that can affect the outcome, as well as the tax implications associated with debt cancellation.
Our buyer’s class takes a holistic approach and is extremely detailed and timely. A major benefit to our training is the clear understanding of the current underwriting guidelines for all programs available including, all Federal, State, County and Municipal programs currently available for public benefit.
Our class is lively and engaging and has received rave reviews from both the public and professionals alike.

Chris Miscellaneous

I am in a bit of trouble. Chris, I spoke with you last night in Moreno Valley and really enjoyed your seminar, and was hoping to get a little more advice. To remind you, I purchased a condo conversation in Riverside for 195k October 2006. I aquired a private loan that I was to refi in 3 yrs. I have never been late on a payment. Now the 3 yrs is up. I have paid additional to my loan in hopes of lowering the principal that would need to be refinanced, but the market as we all know went way down. I was assesssed at 78k and owe 165k. The mortgage company acted like they didn’t care what I did, but if I want to stay, I would need to give them 5k that would go towards the principal and they would extend the loan for 2 yrs. What would you suggest? How long would it take to even recover, probably years. If worse comes to worse, what are the steps to short sale? What if no one will purchase my condo? Thanks.

Chris Miscellaneous

A representative of my mortgage service provider contacted me to work out an arrangement where it (might) be possible to keep my home. I was asked to come up with a (reasonable) restructuring plan / workout plan that might be acceptable to the Loss Mitigation Department. Provided is my proposal; please evaluate and provide comments / feedback: (1) reduce the current interest rate to 2%; (2) extend the current 30 year fixed rate to a 40 year fixed rate and set 30% of the principal balance in a deferment account so. The deferment would lie in abeyance and would never accumulate interest, so basically I would making payments on 70% of the current principal balance. If in the future, I should ever sell the property, I would be “required” to pay that current balance PLUS the 30% in the deferment account. Please provide a response.

Chris Miscellaneous

Hello, H.E.L.P. I’m in the process of modifing my personal home that I bought in 12/2009, for 1.4 Million. My home is now valued at 900K. I have a 950k 1st. I also have a 240K 2nd with Chase bank that I thought I was working on a modication, however, for one reason or another Chase said that they went ahead and charged it off, as a charge off? I finally got a return call from Chase and was told that I could settle today for 65 cent on the dollar that is around 155k. Chase will sell this debt to a collection agency in January if I don’t find a settlement with them in this time. I do need to mention that I did get cash out on the 2nd which most of it was used to keep my business afloat, which did not do good in this bad economy. My question is, do you think they wil offer me a better settlement offer before they sell the debt to a creditor? Would I be better off dealing with the new collecion agency to get a better settlement? Finally, what happens if i do successfully get a loan modification with the 1st, and do nothing with the 2nd? Thank you,

Chris Miscellaneous

*Copied and posted with permission*

CONSUMER e-ALERT
(November 9, 2009)

“Knowledge is Power-The mort knowledge you have, the more powerful you are.”

COLLECTION AGENCIES AND HOW TO STOP THE CALLS

FACTS

There are two different Fair Debt Collection Practice Acts. One is federal and does not apply to the original credito.. The other is the California State Rosenthal Fair Debt Collection Practices Act and applies to the original creditor as well. It is important when you object to the debt you cite the name of the act and the code sections. This creates the impression (which in this case is true) that you are in communication with an attorney and should make them comply. The code sections are: 1. Federal Fair Debt Collection Practices Act. 15 U.S.C. Sections 1692-1692p; and 2. California Rosenthal Fair Debt Collection Practices Act. California Civil Code Sections 1788-1788.33.

To stop the calls just tell the person pursuant to the above acts (cite them) please do not telephone me again. That should stop all calls. That leaves the person with the alternative to write or sue.

If the collector writes, the letter usually states if you dispute the debt you must do so in 30 days. I recommend within ten days. You address the letter in a business type fashion and you can state:

The debt listed in the letter you sent me dated (insert date) is disputed. A copy of your letter is enclosed herein. Proof of the debt in detail is demanded pursuant to the Federal Fair Debt Collection Practices Act (15 U.S.C. Sections 1692-1692p) and pursuant to the California Rosenthal Fair Debt Collection Practices Act (Civil Code Sections 1788-1788.33). Then sign and send letter certified mail return receipt requested to prove delivery and to show the collection agency you can prove they received it. To the left of the name and address in the letter put “certified mail, return receipt requested, receipt no. (insert the number of the ceritified mail receipt).

This should give you relief until the send the proof. You want the itemized list.

Some collectors request postdated checks. Do not do it. Debts at this stage are highly negotiable. Since you are emotionally involved in the problem let someone else (if you can) negotiate for you. In some cases the debt collector goes away but it may be assigned or sold to another collector. Repeat the process if a different collector is trying to collect the same debt.

Debts by law are only allowed to remain on a credit report for seven years from the original date.

MORAL

This is a summary only and should not be totally relied upon and is definitely not legal advice because each case differs on the facts. This is a starting point and helps relieve stress by demanding proof of the debt. The code sections can be reviewed on line by using Google among other search engines. I trust this is of some use to the consumer.

UNEMPLOYMENT RATE AT END OF OCTOBER 2009 WAS 10.2% HOWEVER PEOPLE CAN STILL PROTECT THEIR ASSETS LEGALLY FROM CREDITORS

FACTS

The unemployment rate in the U.S. soared to a 26-year high of 10.2 percent in October and employers cut more jobs than forecast. Payrolls fell by 190,000 workers in October 2009 compared with a 175,000 drop anticipated by the median forecast of economists surveyed by Bloomberg News, figures from the Labor Department published on November 6, 2009. The jobless rate gained from 9.8 percent in September and exceeded 10 percent for the first time since 1983. (azrep11609)

MORAL

Notwithstanding the unemployment people can still protect assets from creditors. In filing bankruptcy, assets up to a little over $20,000 can be protected for you the consumer when you have no real property and if you own a home, assets can be protected to over $150,000 if you are eligible. Bankruptcy is a way to relieve stress and remove a lot of credit card debts so you can get a fresh start in life. But you should not cash in your retirement or 401k retirement. This is protection for you and your family. If you have any questions contact me or Jozef Magyar at the office at 714-667-8529.

THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.
AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE

SEMINARS
DATE: None scheduled at this time. If you have a particular area you are interested in let us know and if enough people would like to attend we can arrange the seminar. There will be no cost to you.
SUBJECT:
TIME:
LOCATION:
CONTACT; Loretta Lee-Toll Free 667-6529

Areas that may interest you are:
1. Estate Planning for your family and/or protection of your assets. Wills, Trusts and Health Care Directives. Family trusts
2. Personal Injury. What are your rights? How do attorneys determine their fees? What are the risks when you sue or are sued for personal injury?
3. Dissolution of Marriage or Legal Separation. Advantages and disadvantages of each. How to protect your assets for your children in the event of remarriage.
4. Real Estate- Do you really have to list your property for 6 months with one real estate broker. How to change the listing agreement. How to “hedge your bets when making or accepting an offer on Real Estate so that you have an escape clause.
These and other subjects are available. Just le me know at 888-667-8524

BANKRUPTCY

Remember: If your home is oversecured, a Chapter 13 bankruptcy may be able to remove that second and even third mortgage by making it unsecured. Taxes under certain circumstances are dischargeable in bankruptcy. Bankruptcy can give you a fresh start. If you have questions give us a call.

CURRICULUM VITAE

Our firm has been practicing law for over 37 years, the last 19 of which are at the exact same location in Hutton Centre, Santa Ana California where the 405 and 55 freeways meet. The firm attorneys represent numerous clients in California and nationally in personally injury, bankruptcy, estate planning and creditor litigation and negotiation. During the course of the firm’s history Mr. Thordsen has served as a pro tem judge in Traffic Court in West Los Angeles, Small Claims and Traffic in West Court in Orange County and Family Law Court in Los Angeles.

We have available personal injury attorneys including “super lawyers” who have obtained multi-million dollar verdicts and settlements as a matter of course where people are unfortunately catastrophically injured. We are counsel to numerous trade groups including the Arizona Association of Mortgage Broker (AAMB), Central Coast Chapter-(CAMB), Central Valley Chapter-(CAMB), East Bay Chapter-(CAMB), Inland Empire Chapter-(CAMB), Monterey Bay Chapter-(CAMB), North Bay Chapter-(CAMB), North San Diego Chapter-(CAMB), Orange County Chapter (CAMB), San Diego Chapter-(CAMB), San Francisco Peninsula Chapter-(CAMB). Silicon Valley Chapter-(CAMB), South Los Angeles Chapter-(CAMB) and the San Fernando-Santa Clarita Chapter of NAHREP. Mr. Thordsen has been a member of the Advisory Board of the Mortgage Banking and Real Estate Appraisal Programs at California State University, Fullerton. Mr. Thordsen has been a member of the California Department of Real Estate Solicitation Task Force Committee and the California Department of Motor Vehicles Anti-Fraud Task Force.

He is a panel member of the Los Angeles Police Department Protective League

We represent clients in wage and overtime violation cases and personal injury cases on a contingency fee basis and d wage disputes before various labor boards including minimum wage, overtime and unemployment compensation issues.
If we may be of service in these areas or estate planning and asset protection, please contact us, and one of our attorneys will discuss the matter with you.

Remember- - - You are the client. You come first and you are in effect our boss. You can terminate our relationship at any time for any reason or no reason at all. As attorneys we are here to serve you.

Chris Miscellaneous