Posted on 04/21/2009 11:49:36 AM PDT by Oldeconomybuyer
WASHINGTON (Reuters) - The Treasury Department is considering giving banks and investors billions of dollars in fresh incentives to modify troubled mortgages and save homeowners from foreclosure, sources familiar with official deliberations said.
Under one scenario, investors in second liens would receive a cash payment if they agree to ease the terms of troubled loans and accept a smaller return on their mortgage investment, the sources said.
During the height of the housing boom, some borrowers were able to buy a home with no downpayment by adding a second lien and many of those loans are now failing as the economy and housing market struggle.
Officials also envision giving fresh subsidies to encourage 'short sales' in which the lender accepts a payment that does not cover the entire loan amount, according to the sources, who requested anonymity because they are not authorized to disclose details.
Fannie Mae and Freddie Mac, the mortgage finance companies, would administer the new program to resolve problems with second-liens under one plan being considered, they said. [snip]
(Excerpt) Read more at reuters.com ...
Like a dog to vomit.
What the economy needs to incentives to get new mortgages and create economic activity and get in good people into homes who can afford them...throwing money at these old mortgages is a lost cause. The homes are valued too high and the people can’t afford payments. Once the economy starts working again, that fixes a lot of problems.
lol but on to something serious just great add this to every other bailout like the insurers who bet your life insurance on the toxic mortgages we have to bail out now...
http://www.nytimes.com/2009/04/09/business/09insure.html?_r=1&ref=business
From the little bit I could find that is going to be huge too!
Jim Cramer of The Street who is known for his CNBC show “Mad Money” and stock market quotes and investment advice could drive someone Mad. Worse with the questionable advice and shoddy fact checking that takes place on The Street following that kind of advice could end with you living on “The Street”.
On April 3rd this was posted on his site.
The life insurance industry has $214 billion in commercial mortgage-backed securities, according to new data from SNL Financial, which tracks the portfolios of more than 800 life insurers. More than a third of that amount, or $86 billion, is invested in bonds rated A or less. The issuers of lower-rated bonds are more likely to default, Fitch says.
Fifteen of the top 20 life insurers had more commercial mortgage-backed securities than capital and reserves. Five of those companies held more of the riskier bonds, the ones rated A or less. They were Allianz Life Insurance; Allstate Life Insurance; Manulife’s John Hancock Life Insurance; Genworth Life Insurance, part of Genworth Financial(GNW Quote - Cramer on GNW - Stock Picks); and Hartford Life Insurance, a unit of Hartford Financial Services(HIG Quote - Cramer on HIG - Stock Picks).
Allianz Life Insurance, which holds three times more of the lower-rated securities than capital and reserves, might be the most vulnerable. The company had $2.1 billion of capital and reserves and $6.9 billion of the less-desirable issues at year end.
Prudential Insurance Company of America, the largest insurance unit of Prudential Financial(PRU Quote - Cramer on PRU - Stock Picks), is the largest holder of commercial mortgage-backed securities with $11.7 billion but almost all of that amount is invested in AA-rated or AAA-rated bonds.
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Today if you go to check you will see a correction has been issued and my suspicious mind being what it is I noticed no numbers in the correction leaving me to wonder if someone brought this to the attention of Allianz and they threatened suit, or if Cramer is involved in a cover up of $4.8 billion of less desirable issues or lastly if he just gives Bad Advice. I know Allianz has had more than its seemingly deserved share of lawsuits stemming from Consumer Fraud as Attorney Generals and Attorneys across the nation have sued them and they have been Spanked (slightly in my opinion based on the sheer number and Fraudulent practices used by Allianz and the Licensed Security Investment Brokers they employ to sell their products) so it makes me wonder did Allianz come up with $4.8 billion in 4 days to cover their bad assets, did they threaten Jim Cramer and The Street? I would like to see the data myself.
http://bluelori.blogspot.com/2009/04/following-jim-cramers-advice-may-leave.html
Huh? Who pays that to the lender? And with who's money?
She answered the question the same way his idol Barrack Obama answered the question. Perez thinks Obama is brilliant with a huge package, while he calls Miss California a dumb bitch.
If this bigot cost Carrie the pageant, she should sue the pageant.
sorry wrong thread....lol
Our money.
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