Very telling info here, good or bad, you decide...
Started by Sunday
almost 16 years ago
Posts: 1607
Member since: Sep 2009
Discussion about
Loan Modification Program report: metro area / state specific info: http://www.makinghomeaffordable.gov/docs/Feb%20Report%20031210.pdf Page 10 (By metro area): New York-Northern New Jersey-Long Island, NY-NJ-PA Active Trials: 52,375 Permanent Mods: 8,660 Page 9: Mods By State and also info in mortgage delinquency rate The numbers of trail mods will increase and so will the number that will drop... [more]
Loan Modification Program report: metro area / state specific info:
http://www.makinghomeaffordable.gov/docs/Feb%20Report%20031210.pdf
Page 10 (By metro area):
New York-Northern New Jersey-Long Island, NY-NJ-PA
Active Trials: 52,375
Permanent Mods: 8,660
Page 9: Mods By State and also info in mortgage delinquency rate
The numbers of trail mods will increase and so will the number that will drop out...
Don't worry, it won't effect you because:
No one in NYC is in that program...
Ok, maybe in the outer boroughs, but not in Manhattan...
Ok, ok, maybe in cheaper neighborhoods in Manhattan...
Alright, maybe below x-th Street, but not on that street...
Alright, maybe on that street, but not this building...
Ok, Ok, maybe in this building too, but not that apartment...
[less]
Dear Secretary Geithner:
We are writing to express our deepest concern with regard to the Home Affordable Foreclosure Alternatives (HAFA) program, specifically, ongoing encouragements to conduct “short sales” without minimum safeguards to protect against conflicts of interests, waste and abuse. We understand the Administration is seeking ways to enhance short sales as a foreclosure alternative. However, we strongly believe continuing to allow “broker price opinions” (BPOs) in the property valuation component will not adequately protect the public interest (consumer, borrowers, etc.) or the interests of the various parties to the loan (lenders, loan servicers, etc.) and is likely to exacerbate mortgage fraud. To restore investor confidence around the world and dig out from the current financial crisis, we must end the culture of corruption that has permeated all levels of real estate finance. We urge the Department to reestablish independence in the valuation process to protect the safety and soundness of financial institutions, improve transparency, and safeguard the public trust.
As a preface to our concerns, we note that loan modification fraud (including short sales), has been highlighted as a new form of mortgage fraud by law enforcement officials in recent weeks. According to an independent fraud investigation firm, bank-owned fraud attributed directly to schemes involving shorts sales and REO inventories has increased by nearly 50 percent over the past year and 100 percent over the past two years.1 The Financial Crimes Enforcement Network and other major law enforcement officials have also issued advisories and notices highlighting fraud scenarios involving loan modification, which oftentimes include short sales2. Further, we also note a related trend called “property flopping,” which is similar to property flipping, but in reverse3. In this arrangement, the property is artificially deflated below its actual market value (using a BPO) and sold as a REO property to a related party of the real estate agent, who quickly sells the property at its market value for a profit.
Generally speaking, real estate agents and brokers are not independent or properly trained valuation specialists. They have an inherent bias towards quick results and action which produces a fee for themselves irrespective of whether the lender/services/investor/property owner/borrower gets a fair return on the short sale.
We believe that such conflicts can and should be mitigated by implementing basic requirements reestablishing independence and competency in the valuation process. Specifically, any arrangements to encourage short sales must require competent appraisals prepared in accordance with the Uniform Standards of Professional Appraisal Practice. Such a requirement is a minimum safeguard to enhance the fiduciary responsibility of lenders, eliminate conflicts of interests, and ensure independence and objectivity in the short sale process.
We have expressed our previous concern with the acceptability of BPOs with the Administration’s loan modification programs. Under the Home Affordable Modification Program guidelines released last year, BPOs were allowed to assist in establishing net present value calculations and valuing large numbers of properties held in portfolio. The BPO allowance was carried over in the HAFA program guidelines issued in November 20094. Our concerns for this acceptance remain, but are deepened by the aforementioned reports of escalation in mortgage fraud involving short sales.
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Response by maly
almost 16 years ago
Posts: 1377
Member since: Jan 2009
Sunday, it doesn't really bring any fact to help the bears or the bulls. So there are 50,000+ files open in NY metro, NJ and PA. What does it mean for NYC?
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Response by NYCMatt
almost 16 years ago
Posts: 7523
Member since: May 2009
LOLOLOL.
No, Virginia -- Secretary Geithner, despite being in "public service", is not really interested in protecting the public.
It's time you grew up and learned the truth, old girl.
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Response by Riversider
almost 16 years ago
Posts: 13572
Member since: Apr 2009
When the public learns of fraud with regard to short sales because Timmy agreed to broker price opinions. I'm sure he'll say.. "I'm shocked, shocked to find that gambling is going on in here!"
maly, I personally find that information to support my view that housing price will continue to drop.
If you bring up the reports from previous months (google the title of the report, but change the month), you'll see that delinquency and modifications are increasing. As many of those begin to drop out of the temp trials and perms, those will add to inventory as "have to sell/forced to sell" since they are out of options. The reports also show that the lost of income (unemployed/under-employed) as being one of the major reason for the loan mods. NYC's unemployment rate is at 10.4% as of Jan 2010. http://www.labor.state.ny.us/stats/nyc/nyclfsa.xls If you compare the unemployment rate chart on the second sheet against historical NYC RE prices, it shows that when NYC RE does not like unemployment rate that is over 8%... How long do you think it will take for NYC's unemployment rate to fall below 8% again?
As I noted in my OP, you don't have to worry if you own or looking to buy "that apartment" in that particular building on that special block, in that part of the neighborhood in Manhattan...
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I wonder why nobody picked up on this ....
http://www.appraisalinstitute.org/newsadvocacy/downloads/ltrs_tstmny/2010/AI-ASA-ASFMRA-NAIFA_ShortSales.pdf
Dear Secretary Geithner:
We are writing to express our deepest concern with regard to the Home Affordable Foreclosure Alternatives (HAFA) program, specifically, ongoing encouragements to conduct “short sales” without minimum safeguards to protect against conflicts of interests, waste and abuse. We understand the Administration is seeking ways to enhance short sales as a foreclosure alternative. However, we strongly believe continuing to allow “broker price opinions” (BPOs) in the property valuation component will not adequately protect the public interest (consumer, borrowers, etc.) or the interests of the various parties to the loan (lenders, loan servicers, etc.) and is likely to exacerbate mortgage fraud. To restore investor confidence around the world and dig out from the current financial crisis, we must end the culture of corruption that has permeated all levels of real estate finance. We urge the Department to reestablish independence in the valuation process to protect the safety and soundness of financial institutions, improve transparency, and safeguard the public trust.
As a preface to our concerns, we note that loan modification fraud (including short sales), has been highlighted as a new form of mortgage fraud by law enforcement officials in recent weeks. According to an independent fraud investigation firm, bank-owned fraud attributed directly to schemes involving shorts sales and REO inventories has increased by nearly 50 percent over the past year and 100 percent over the past two years.1 The Financial Crimes Enforcement Network and other major law enforcement officials have also issued advisories and notices highlighting fraud scenarios involving loan modification, which oftentimes include short sales2. Further, we also note a related trend called “property flopping,” which is similar to property flipping, but in reverse3. In this arrangement, the property is artificially deflated below its actual market value (using a BPO) and sold as a REO property to a related party of the real estate agent, who quickly sells the property at its market value for a profit.
Generally speaking, real estate agents and brokers are not independent or properly trained valuation specialists. They have an inherent bias towards quick results and action which produces a fee for themselves irrespective of whether the lender/services/investor/property owner/borrower gets a fair return on the short sale.
We believe that such conflicts can and should be mitigated by implementing basic requirements reestablishing independence and competency in the valuation process. Specifically, any arrangements to encourage short sales must require competent appraisals prepared in accordance with the Uniform Standards of Professional Appraisal Practice. Such a requirement is a minimum safeguard to enhance the fiduciary responsibility of lenders, eliminate conflicts of interests, and ensure independence and objectivity in the short sale process.
We have expressed our previous concern with the acceptability of BPOs with the Administration’s loan modification programs. Under the Home Affordable Modification Program guidelines released last year, BPOs were allowed to assist in establishing net present value calculations and valuing large numbers of properties held in portfolio. The BPO allowance was carried over in the HAFA program guidelines issued in November 20094. Our concerns for this acceptance remain, but are deepened by the aforementioned reports of escalation in mortgage fraud involving short sales.
Sunday, it doesn't really bring any fact to help the bears or the bulls. So there are 50,000+ files open in NY metro, NJ and PA. What does it mean for NYC?
LOLOLOL.
No, Virginia -- Secretary Geithner, despite being in "public service", is not really interested in protecting the public.
It's time you grew up and learned the truth, old girl.
When the public learns of fraud with regard to short sales because Timmy agreed to broker price opinions. I'm sure he'll say.. "I'm shocked, shocked to find that gambling is going on in here!"
http://www.youtube.com/watch?v=AIX_0nMlIBU
maly, I personally find that information to support my view that housing price will continue to drop.
If you bring up the reports from previous months (google the title of the report, but change the month), you'll see that delinquency and modifications are increasing. As many of those begin to drop out of the temp trials and perms, those will add to inventory as "have to sell/forced to sell" since they are out of options. The reports also show that the lost of income (unemployed/under-employed) as being one of the major reason for the loan mods. NYC's unemployment rate is at 10.4% as of Jan 2010. http://www.labor.state.ny.us/stats/nyc/nyclfsa.xls
If you compare the unemployment rate chart on the second sheet against historical NYC RE prices, it shows that when NYC RE does not like unemployment rate that is over 8%... How long do you think it will take for NYC's unemployment rate to fall below 8% again?
As I noted in my OP, you don't have to worry if you own or looking to buy "that apartment" in that particular building on that special block, in that part of the neighborhood in Manhattan...