"In the midst of the worst surge in mortgage defaults in seven decades, foreclosures in U.S. towns where soldiers live are increasing at a pace almost four times the national average, according to data compiled by research firm RealtyTrac Inc. in Irvine, California. As military families like the VerSteeghs signed up for the initial lower rates and easier terms of subprime mortgages, the number of people taking out Veterans Administration loans fell to the lowest in at least 12 years."Alright, I'm going to dissect this piece by piece, and probably gore everyone's Ox, including the brass - that is, commanding officers and above.
What have I been saying? That these fraudulent loans were intentionally packaged up and sold to investors. It was not so simple as "ignorance", it was in fact knowing misrepresentation, that is, fraud.
"Warren thinks her supervisors didn't want her to do her job. She says that when she would reject, or kick out, a loan, they usually would overrule her and approve it.
"The QC reviewer who reviewed our kicks would say, 'Well, I thought it had merit.' And it was like 'What?' Their credit score was below 580. And if it was an income verification, a lot of times they weren't making the income. And it was like, 'What kind of merit could you have determined?' And they were like, 'Oh, it's fine. Don't worry about it.'""
Aha! Now we see the truth of what I've been hollering about for a very long time.
"For the past several months as the credit crunch has pummeled mortgages and other forms of debt, a lot of collateral used to form CDOs has triggered defaults due to rating agency downgrades. As a result, if the banks begin dumping these problem securities, financial guarantors would be forced to pay default claims almost immediately - a tall order for companies whose financial future is already murky.
Typically, monolines pay out claims on losses over a period of 20 or 30 years, but the types of sales that the banks are looking to score would accelerate those payments and further hammer companies already hurting.
The banks appear to recognize that the insurers are unlikely to be able to cough up the cash needed to pay off these losses."
"'Countdown with Keith Olbermann' reported Tuesday night that lobbying disclosure forms, filed by the giant Swiss bank UBS, list McCain's campaign co-chair, former Texas Sen. Phil Gramm, as a lobbyist dealing specifically with legislation regarding the mortgage crisis as recently as Dec. 31, 2007."But my outrage isn't just directed at the fact that UBS had Mr. Gramm lobbying on the housing bailouts (specifically, against for homeowners and one would assume "for" the banks), although perhaps it should be, given that Mr. Gramm worked tirelessly to (successfully) kill the bill that would have allowed bankruptcy judges to "cram down" modifications on delinquent mortgages - a right that judges used to have before bankruptcy "reform" removed it.
What's this about? Oh, its rather quite simple. You see, UBS is alleged to have helped some very rich clients of the bank evade (illegally, it would appear) the Internal Revenue Service. You know, tax evasion?
"UBS has told members of its former private banking team responsible for rich US clients not to travel to America.
The Swiss bank has also made lawyers available to the more than 50 bankers involved, many of whom have left UBS since it decided last November to wind down its cross-border private banking business for US customers."
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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