Will the HVCC ever see the light of day?

[ghrousseau]

What do lawsuits have to do with market responsibility?

Getting you *** handed to you in court and loosing a large chunk of money has a way of changing corporate behavior. The problem has been the 800lb gorilla's like CW are originating such a huge part of Fannie Mae's business, that they are more or less in cohorts with each other. If the company I work for pulled the same kind of crap as Wa Mu or CW we would loose our servicing contract with Fannie Mae in a heartbeat. In the past this was the way Fannie and Freddie could enforce and police the marketplace. Unfortunately Fannie is at the very center of the problem.

 

[ghrousseau]

PE the only problem with your solution is that you assume that people want to pay off their homes. Some people in foreclosure are in it because a home is no longer a + equity producing asset and not because they can't afford to pay for it. Aside from that, what you propose can work for many.

My home has loss most of the equity position I had. But I still need a place to live and a tax write off. Now if some idiot in DC decides we no longer need the IRS interest deduction on home loans, then you will see more people saying come and get the keys.

 

[PL1957]

Getting you *** handed to you in court and loosing a large chunk of money has a way of changing corporate behavior.

Sure, look at what happened to Arthur Andersen. Company shut down, tens of thousands of employees displaced, all charged dismissed on appeal. I guess that changed a lot of corporate behavior, especially for the lower level workers at the company.

Getting courts involved would be the worst of all worlds.

 

[panappr]

My home has loss most of the equity position I had. But I still need a place to live and a tax write off. Now if some idiot in DC decides we no longer need the IRS interest deduction on home loans, then you will see more people saying come and get the keys.

Not funny that's probably next, along with the expulsion of other things like Prop 13 in California, they've been trying for years to amend and bend this little property tax code, further putting all homeowners at greater risk. State taxes are becoming another main detriment to the real estate markets. Most State and Federal agencies are self serving, and are operating on budget projections that are exceeding far beyond reasonable expectations. I have an uncle who worked for the State and has a retirement package that would make most of us choke. Don't ask him for any relief.

 

[Tudor]

Convert all the 30 year loans to 40 years, put all arrears payments on the end of the loan, have a 10 year call to refinance or pay off. Convert all arm products to fixed rates at face plus 2%. Crisis averted.

Lenders don't like this, this doesn't allow them to make money on new loans.

They need (want) new loans to help (squeeze more money) out of the unfortunate (some victims, some criminals) homeowners that had taken advantage of the system, or were taken advantage of the system that is now bailing them out.

Screw the people that were responsible, we will reward them with higher taxes and unemployment.

 

[ghrousseau]

Not funny that's probably next, along with the expulsion of other things like Prop 13 in California, they've been trying for years to amend and bend this little property tax code, further putting all homeowners at greater risk. State taxes are becoming another main detriment to the real estate markets. Most State and Federal agencies are self serving, and are operating on budget projections that are exceeding far beyond reasonable expectations. I have an uncle who worked for the State and has a retirement package that would make most of us choke. Don't ask him for any relief.

You don't have to explain CA to me. I was born and raised there and left in 2006. I've been telling people for years CA will eventually crush under it's own weight. Everyone I know with young children who absolutely did not have to be there has left the state. If you roll back prop 13 you will see millions of Boomers heading out of state. My Mom is still working, but if prop 13 got rolled back and she was assesed at the current value her property tax bill wold go from $150 a month to $1000 a month. She would have to sell her house.

 

[Lloyd Bonafide]

Republicans Considering Challenge to GSE Appraisal Pact

http://www.housingwire.com/2008/05/21/republicans-considering-challenge-to-gse-appraisal-pact/

A March agreement between Fannie Mae, Freddie Mac, and New York Attorney General Andrew Cuomo on appraisal practices is coming under fire by Senate Republicans, sources told Housing Wire Wednesday afternoon.

Cuomo has characterized the agreement as an attempt to “clean up appraisal fraud in the mortgage industry,” but banking representatives said the agreement will instead have unintended consequences for borrowers and the industry alike. Both Bank of America Corp. and Wachovia Corp. in particular, have said they oppose the current HVCC agreement.

Terry Franscisco, a spokesman for BofA, has said in published reports that the HVCC is “overly broad” and would have “unintended consequences” for borrowers — namely higher mortgage costs — as currently constructed. (The bank does support the spirit behind the agreement, however.) For its part, Wachovia has suggested that it already has policies and procedures in place to ensure independent appraisals, and argued that the agreement would have the effect of pushing good appraisers out of the business.

I don't think the politicians know what to make of this.

 

[sbb04]

I don't Cuomo realized what a backlash he was going to get. Probably he thought he could slip it is with little notice. I'm sure that's what his AMC cronies were telling him.

 

[rcsone]

....not convinced of the victors yet...................rs

 

[Tudor]

Terry Franscisco, a spokesman for BofA, has said in published reports that the HVCC is “overly broad” and would have “unintended consequences” for borrowers — namely higher mortgage costs — as currently constructed. (The bank does support the spirit behind the agreement, however.) For its part, Wachovia has suggested that it already has policies and procedures in place to ensure independent appraisals, and argued that the agreement would have the effect of pushing good appraisers out of the business.

Higher mortgage costs to the consumer???? Pfftttt!!!! they are worried about their bottom line, period. What they have been doing has cost billions. I bet those consumers are wishing they paid an extra $300 to $400 to have a second appraisal done, would have cost them a lot less in the long run.