If the “The Root Cause Of Our Economic Problems Is The Housing Foreclosure Crisis” as Senator Dodd States, then all the bad mortgages and the $700 Billion Bailout is not necessary.

Or maybe he is ass backwards and it was Wall Street with their aggressive mortgages and the Federal Reserve who encouraged folks to go out and get adjustable rate mortgages and did not do their jobs anyway regardless of Wall Street.

Remember it is the Federal Reserve that monitors and controls the financial markets in the United States!

For anyone that watches ESPN’s Jim Rome, this is my burn. I am going to talk politics here, but I am not going to give away my party preference. It is not necessary. This is a commentary against both Democrats and Republicans, and the way that the people’s business is conducted.

The reality, unfortunately highlighted by Freddie Mac and Fannie Mae, is that our business is always secondary to the business at hand. That business is the never ending cycle of re-election. The tough decisions are never addressed until we reach crisis mode. Once that point is reached, it turns into a game of partisan finger pointing leading to a decision made out of desperation.

It has been known for some time that there were problems brewing. Accounting irregularities were announced on a fairly regular basis. Fortunately for these two companies, they had a strong and extremely effective lobbying and political contributions team that kept both parties at bay.

By doing nothing to address the problems, these political contributions remained safe, and the end result is what it usually is. You and I are going to bail it all out, there will be a couple of fall guys with beautiful golden parachutes, and no one in government will be held responsible.

Let’s hope that this government takeover will relieve the situation, rekindle mortgage liquidity, save the banks and brokers and stabilize housing prices. Without costing the taxpayers a fortune. Watching trading today in some financial’s leads me to believe there may still be some issues. We’ll all keep our fingers crossed on this one.

What could our next big problem be that our politicians will have to “deal” with after this one is “resolved”? Cast a glance over to the partisan bickering that is going on with drilling for oil and our foreign dependency, and get a front row seat to the self serving rhetoric by people who say that they understand the pain at the pump that you and I are going through, but who I suspect have absolutely no idea. It could be a long cold winter.

http://commercialmortgagehotline.blogspot.com

Build it and they will come….Mr. "Senate Banking Committee"

We have all heard this and very similar statements. Lets take a look at the strategies Charles Schumer is utilizing to help our economy.

Our credit markets are in turmoil, it is harder to get a mortgage, it is more difficult to get credit cards, homes are depreciating in value, jobs are being out sourced to other countries, in fact, even the banks are having a hard time believing in each other. This is probably even the correct psychology seeing how the capitalistic markets trusted each other too much in years past.

So now that we cannot access money no matter what direction we turn.

But wait, look up in the sky, it a bird…no, is it a plane…NO, it is a big mouth named Charles Schumer. A man with "credibility"? A responsible man"? I think not. Or would you think it was a good economic move for our country "In the following 11 business days (since Schumers irresponsible remarks), depositors withdrew more than $1.3 billion from their accounts," the OTS said in a statement announcing the California-based lender’s takeover on Friday.

How can a man that carries the clout of, Senate Banking Committee, chairman of Congress’ Joint Economic Committee and the third-ranking Democrat in the Senate say such horrendous things? What did he think would happen when he stated, now remember he is an authority and on the Senate Banking Committee, "IndyMac was one of the most poorly run and reckless of all the banks," he said. "It was a spin off from the old Countrywide, and like Countrywide, it did all kinds of profligate activities that it never should have. Both IndyMac and Countrywide helped cause the housing crisis we’re now in" . See this article too. CNN

Despite the fact that most of the staff at Consumer Mortgage Reports may agree with his statement, as irresponsible as they were, this was completely uncalled for and the impact of his statement has set the financial recovery back 6 months or more. His statements have lead to the loss of 7,200 jobs, his remarks have put a major damper on the stocks of IndyMac and everyone who had owned them!

Someone else does not agree with Schumer, John Bovenzi, the FDIC COO says, "there’s probably no bank in the country that has access to greater capital and liquidity than Indymac Federal Bank".

Here is a nonrelated news clip from today, Jul. 14, 2008, with someone who obviously disagrees with Schumer.

Schumer, this is your idea of leadership? Take down the boat to teach them a lesson? Did you pick up your philosophies from Adolph Hitler.

If you did your research, IndyMac and all the other lenders have tightened up their guidelines and they could have recovered without these costs put on the American public. It has been said that you would like everyone making $10.00/hour. Well now lets get rid any good paying jobs that are left in America by flapping your mouth like it is Hurricane Katrina.

"And now they are doing what the Bush administration always does: Blame the fire on the person who calls 911.", Schumer states…so where was it your position to call the fire department?

…and if your words do not carry weight, then we request you step down. Quit. Resign. If you claim your words are meaningless, then you are not a leader of the United States!

A little FYI for those who oppose. Indymac and Countrywide were not the only problems. As much as we all love making money, the REAL problem was the excessive greed from Wall Street. If Wall street did not buy all those risky loans NO BANK could sell them!

Oh by the way Mr Senate Banking Committee, chairman of Congress’ Joint Economic Committee and the third-ranking Democrat in the Senate, where you are the Senate Banking Committee when all this Wall Street crap was going on a few years ago? How many of these banking institutions that are now slamming, how much have they given you for your political campaigns? How many banking lobbyists are in your back pocket?

No wonder more and more people are coming out and speaking against your continual irresponsibility. Once again, where was your influence the last few years Mr Senate Banking Committee?

Wise up!

The tumultuous stock market has dealt heavy blows to families across the nation. One family talks about how they plan to make ends meet.

How does this subprime mortgage mess affect your family?

Jim Bianco, President of Bianco Research, says a quarter-point cut is not enough and that it’s time for the Federal Reserve to “take action.”

Warren Buffett’s sister Doris helps him give away his money. With her friends she goes through thousands of letters from individuals in need and responds to those she can help. Harry Smith reports.

The Mortgage Bailout Stinks

What kind of industry leader does not follow their own lead? WAMU, that is who.

In a desperate attempt to recapture a massively declining mortgage portfolio, WAMU has single handedly put all the mortgage industry blame on mortgage brokers and called themselves a “leader” in the process.

WAMU has decided not to mention when they, as a direct to consumer mortgage lender, offer a mortgage to a homeowner, they disclose ABSOLUTELY NONE of their own up-front, but hidden from you, consumer costs. These are the very same fees they say mortgage brokers have to disclose BUT already do.

As a ‘national lender’, WAMU is given a free pass under their Federal Banking Charter to “HIDE” all the upfront money they make on a mortgage transaction.

Did you know that WAMU offers EVERY mortgage client their business plan absolutely free? Yes, absolutely free. In fact it is given to every homeowner at the time of closing and it is called the “Truth In Lending”.

This document shows both you and WAMU how much of your money they are going to take from you, month after month and year after year - at your expense. In fact they have documented they have taken so much of your money that they brag below, “WaMu and its subsidiaries had assets of $312.22 billion”.

So if WAMU and all banks are so confident that the mortgage problem is exclusively the fault of mortgage brokers and lack of consumer disclosure, where is their press releases, like the one below blaming mortgage professionals.

They should be bragging about how they are now going to disclose to all of the American homeowners how much money they are making in ‘hidden up-front fees’ when they do a mortgage - just like the press release we are so happy to publicize for them.

I know that they are a ‘well respected’ for-profit, publicly traded company, so we will be monitoring them for these, so to be released announcements.

My dad use to tell me, “if you are not part of the answer - your part of the problem”.

                    Strengthening Mortgage Industry

    --  key terms of the loan requested by the broker such as loan
        amount, loan term, whether the interest rate and mortgage
        payments may change, and whether the borrower's pricing
        package carries a prepayment fee, and  

    --  the amount of all compensation the borrower will pay the
        broker for their services, including broker points, or
        administrative or processing fees, and whether the broker has
        requested a yield spread premium.

So When Is This Man Going To Shut Up?

Is he trying to be in the spot light or is running a company that serves the consumers and the fiduciary interests of his stock holders?

Last we looked his stocks were down drastically.

Countrywide FinancialLoans chief Angelo Mozilo said Thursday morning that the subprime mortgage industry is “damaged for the foreseeable future.”

In an interview with National Mortgage News Mr. Mozilo said consumers that will be hurt the most from the subprime fallout are low-income minorities, and even middle-class home buyers, especially in California where Countrywide is the largest residential lender.

The CFC chairman and CEO also called on the Office of Federal Housing Enterprise Oversight to increase the loan limit cap for Fannie Mae and Freddie Mac, a move, he said, that would help troubled jumbo borrowers refinance their loans. The current cap is $417,000.

Special Report: Just Another Weekend in the Hampton’s. Traders on Wall Street Seek R&R in the Hampton’s After a Tumultuous Week in the Markets.