New nortgage scam, greater than ever, sponsored by Goldman Sachs & their ilk

Discussion in 'Wall St. News' started by ByLoSellHi, Nov 22, 2009.

  1. Investment funds are buying billions of dollars’ worth of home loans, discounted from the loans’ original value. Then, in what might seem an act of charity, the funds are helping homeowners by reducing the size of the loans.

    But as part of these deals, the mortgages are being refinanced through lenders that work with government agencies like the Federal Housing Administration. This enables the funds to pocket sizable profits by reselling new, government-insured loans to other federal agencies, which then bundle the mortgages into securities for sale to investors.

    While homeowners save money, the arrangement shifts nearly all the risk for the loans to the federal government — and, ultimately, taxpayers — at a time when Americans are falling behind on their mortgage payments in record numbers.

    For instance, a fund might offer to pay $40 million for a $100 million block of mortgages from a bank in distress. Then the fund could arrange to have some of those loans refinanced into mortgages backed by an agency like the F.H.A. and then sold to an agency like Ginnie Mae. The trick is to persuade the homeowners to refinance those mortgages, by offering to reduce the amounts the homeowners owe.
  2. Which begs the question.

    Why aren't the dumb banks doing the re-fi and flip to the taxpayer?

    Reminds me of the SnL bailout. Shit dumb idiots should not be given banking licenses.
  3. sprstpd


    The same reason they oppose mark-to-market pricing? Because they like to live in la-la-land?
  4. jem


    thank you for that post.

    It was incredibly timely for my business.
  5. Even "better" is the refinancing of the US tax burden by willingly foreign investors like foreign central banks et al...China holds how much ? 800-900 bn USD in US Treasury Bonds ? :D :D :D
  6. The cycle begins again. Deja vu.

    p.s. Bylo, where are you?
  7. spinn


    was bylosellhi assassinated by a crazed Goldman Sachs trader who was denied his bonus?????
  8. > Re: New mortgage scam, greater than ever, sponsored by Goldman Sachs & their ilk

    IMO it's glassclear: they try to bring the new US administration under their control.
    They already have their people in key positions. WIth the election of the new president they lost some power,
    but they will continue their efforts to bring chaos to the world, and especially to the US.
    Who they are?
    Everybody knows it, nobody wants to talk...
    They are not human, though they look like... They are evil.
    Wherever they have been they always caused chaos, mass unemployment, hyper inflation, even world wars...
    They try it until they get world domination. If the US falls then good bye good old Earth,

    Some like it hot... :)
  9. nicuss


    I'm not sure I would call this a scam. If the banks are selling their loan bundles at 40% face value they are eating a 60% loss which is quite a significant (and proper) punishment for their errors. If the government takes on the risk for the remaining 40% of the loans that's not really such a bad deal if it helps stabilize the financial sector.
  10. ByLoSellHi, where are you now? Stock just crashed like you said it would. LOL
    #10     Feb 5, 2010