PERSONAL VIEWS by MAHER SOLIMAN
for Immediate Released April 15th 2008// Los Anglels, CA
NLS & BORROWERHOTLINE.COM
THE SECTOR AND BEARISH VIEWS
I take great pride in knonwing I sat out the 36 month leading to the end of th e sub prime madness. My views are offered as an inustry analyst for NLS Advisors and 20 year secondary underwriter who sat out the last 5 years. Then , i was candid about the enevitable as I am now in hindsight. My view was explained over again to earnngs driven fund managers and the capital markets derivatives traders, who also were growing in skeptimism. Sub prime securities and orginations volume, perfroamnce and ample liquidity - - -cannot last.
No chance this deal would sustain itself beyond Q3 06. You see, there was so much capital committed to the “beast” called ABS, MBA when the market commenced to flatten out by 4th quarter 06. The market sector breadth and depth measured by originations (receivables) offset by asset impairment were unacceptable. But it was somewhat manageable and within the algorithmic tolerances for a worst case scenario pursuant to over collateralization and defaults.
Therein, you had a run in home sales activitiy and artifically stimulated refiances over the next 18 months consisting of this pain staking and exhausting attempt to resurrect a dead market.
Again, the push for stimulating originations was pursuant to commitments totaling billions of dollars for delivery of future mortgage pools needed to fulfill demand for asset back‘s (securities) Home sales were flat and rates unable to generate any interest. You have a dead market.
According to web site www. bororwerhotline.com, a consumer advocacy for Predatory lending, Wall Street is the culprit or mastermind. It was mortgage banking and commercial banks who carried out their orders. Wall Street securities and investment houses were releasing bulletin after bulletin and credit program matrix advisements as to new “LOWER” credit standards to qualify high risk borrowers and that lead to a sudden downward ratcheting for layered risk.
The phenomena were derelict in accordance with ensuring minimum thresholds for integrity and establishing any level of quality earnings from future securities income streams. In translation, what that all means is you now could grant credit acceptance to a immigrant part time maid, a 21 year old Gardner, a shoe salesman and other county employees who fit the $20,000 a month profile using no verification “Stated Income Stated Assets” borrower profiles. Each of the professions I just mentioned play a necessary role in our economy but these wage earners are easy to scale along a profession and education earnings spectrum. And now the dream offered to them is no longer there as they cannot afford these $600 to $850K homes they acquired at 100% financing using shadow income.
They are not the blame but the victims. But the ability of the street to use the bottom scale of labor and blue collar sector of the economy is insane but did in fact support resurgence in housing activity 18 months longer than expected. These comments are made in reference to home sales activity and maintaining volume originations. But, somehow I just don’t get why the likes of Countrywide’s, Wells and WaMu’s went along with it. By Soliman M. // Mortgage Securities Analyst www.borrowerhotline.com
POLITICS AND MORTGAGE CRISIS
The mortgage discussion by McCain loses much credibility for the man. No way can FHA, HUD The Fed or even a reunion of MASH figure out a way to bail this mess out? Housing will not come into line with a stable market until every American can own the home they currently are in. therefore prices will continue to plummet and mortgagors will lose out as foreclosures skyrocket. It’s called a flush out or carving up of the piece of the market that lacked integrity and never could be sustained under any type of rational modeling.
Thank Wall Street for your No Income No Asset Just Make something Up No verification 100% the loan that tacks on the added interest and principal to the balance of the loan….the program that made no sense…remember? According to Maher Soliman, an analyst with www.borrowerhotline.com unfortunately, the horizon is not bright with so many American homeowner casualties from delinquency and foreclosures, lender REO’s and plummeting banks earnings and dropping share prices. Great for election year politicking however. Well, McCain, the Street did give American’s a shot at the dream … owning a $ million dollar first home. Even if it was only for a short brief glimpse …that is before facing these homeowners’ face foreclosure, and lender harassment, the burden of threats of deficiency losses taxed as ordinary income and other forms of humiliation.
So, outside of private sector incentives for getting involved, McCain should really let this deal sort itself out.
Showing posts with label Foreclosures. Show all posts
Showing posts with label Foreclosures. Show all posts
Saturday, April 19, 2008
Monday, March 17, 2008
DELINQUENT BORROWERS ARE VICTIMS OF PREDATORY LENDING! SAYS INDUSTRY ANALYST
MAJORITY OF DELINQUENT BORROWERS ARE VICTIMS OF PREDATORY LENDING! MOST UNAWARE OF THEIR VICTIM STATUS, SAYS INDUSTRY ANALYST
Fraud Caused by Lenders and Borrower Lack of Awareness Is An Unknown Market Problem
Los Angeles, CA – Despite a surge in news reports about mortgage delinquencies, foreclosure rates and loan modifications, over 80 percent of the late-paying borrowers don't know their lenders may be guilty of originating a predatory loan against them. The implications could make for a much different set of alternatives for the borrowers seeking alternatives to help them avoid foreclosure, says Maher Soliman, an industry expert to legal professionals and founder of the consumer advocacy website www.borrowerhotline.com
According to the governments Department of Housing and Urban Development, or HUD, instances of predatory lending are very specific and necessitate the consumer filing an investigative report request against the lender. HUD's mission is to increase homeownership, support community development and increase access to affordable housing free from lender unlawful practices and discrimination. To fulfill this mission, HUD will embrace high standards of ethics, management and accountability and forge new partnerships--particularly with faith-based and community organizations--that leverage resources and improve HUD's ability to be effective on the community level.
A study conducted on a sampling of incoming inquiry calls to the website posted an alarming discovery as borrowers had no idea, for the most part, of what constitutes a predatory loan.
The survey was even more shocking when considering the overwhelming number of minorities with delinquent loans who failed to negotiate a workout plan with their lender. This finding was in complete contrast to the findings of the agencies, such as Freddie Mac, that found 61 percent of delinquent borrowers didn't know their mortgage lender offered workout options. This is more lender hype and an attempt to confuse the facts according to Soliman. He believes the lenders of America are trying to dodge and deflect the reality of the situation.
I won’t deny the increase in the percentages of delinquent borrowers who understand their lender is appearing to reach out to them. Those versus recent reports that suggest the borrowers are reaching out to their lender to discuss workout options.
Soliman is referring to the 2007 Freddie Mac/Roper survey results based on responses from 2400 plus adult homeowners, including 1,004 delinquent borrowers more than one month late. Roper conducted the survey by telephone from October 23 through November 14. The survey has a three percent margin of error. The new Freddie Mac/Roper poll also says the percentage of delinquent borrowers aware there are housing counselors they can talk to about their mortgage has increased from 36 percent in 2005 to 44 percent today. "This new survey shows efforts to get borrowers to call counselors are starting to work, but that too many at-risk borrowers are still unaware their servicers routinely provide alternatives that can help them stay in their homes," said Ingrid Beckles, Freddie Mac's Vice President of Servicing and Asset Management. "This fact underscores the importance of convincing borrowers to pick up the phone, call their servicer, and find out whether they can avoid foreclosure." Servicers are firms that collect monthly mortgage payments on behalf of investors such as Freddie Mac.
The truth, from Soliman’s perspective, is too many borrower’s are not willing to fight through the multiple telephone “road blocks” that come with seeking help and enduring the often dropped calls. They start to believe almost immediately that the effort is nothing more than adding additional frustration to an already sad situation. Soliman notes, “They (borrowers) often give up after a few hours of effort and resign themselves to the reality that they cannot save their home”.
The majorities of the borrowerhotline.com web visitors are either facing foreclosure or are in the late stages of the process leading up to a trustee sale. Viewers are somewhat shocked to realize for the first time that they are part of an unsettling high number of all delinquent loans whereby one or more examples of lender fraud exists in their file. These instances include fraudulent activity where Soliman believes the borrower was induced to do something unethical at closing. For example, he cites something simple as where the borrower unknowingly misrepresented income on a stated income loan application or was told to exaggerate the amount of total savings in the borrower’s bank account with the lender waiving the need for a verification of deposit. These types of unlawful activities are beyond the borrower’s comprehension say Soliman, as people do not understand the underwriting process or implications of these and other specific secondary mortgage market requirements. The secondary mortgage market is the market for the sale of securities or bonds collateralized by the value of mortgage loans. The mortgage lender /commercial banks/or specialized firm will use specific criteria to qualify borrowers and then group together many similar loans and sell grouped loans as securities called collateralized mortgage obligations (CMOs). In theory, the risk of the individual loan is reduced by the aggregation process. In hindsight it was such a loser situation set up in part due to Wall Street “algorithmic” assumptions and other technical “inside” nonsense determined to eventually come toppling down. And as Soliman puts it, “the pyramid came toppling down with American homeowners receiving the brunt of the responsibility whereby they now are losing their homes”.
Maher Soliman, Managing Director for www.Borrowerhotline.com
Fraud Caused by Lenders and Borrower Lack of Awareness Is An Unknown Market Problem
Los Angeles, CA – Despite a surge in news reports about mortgage delinquencies, foreclosure rates and loan modifications, over 80 percent of the late-paying borrowers don't know their lenders may be guilty of originating a predatory loan against them. The implications could make for a much different set of alternatives for the borrowers seeking alternatives to help them avoid foreclosure, says Maher Soliman, an industry expert to legal professionals and founder of the consumer advocacy website www.borrowerhotline.com
According to the governments Department of Housing and Urban Development, or HUD, instances of predatory lending are very specific and necessitate the consumer filing an investigative report request against the lender. HUD's mission is to increase homeownership, support community development and increase access to affordable housing free from lender unlawful practices and discrimination. To fulfill this mission, HUD will embrace high standards of ethics, management and accountability and forge new partnerships--particularly with faith-based and community organizations--that leverage resources and improve HUD's ability to be effective on the community level.
A study conducted on a sampling of incoming inquiry calls to the website posted an alarming discovery as borrowers had no idea, for the most part, of what constitutes a predatory loan.
The survey was even more shocking when considering the overwhelming number of minorities with delinquent loans who failed to negotiate a workout plan with their lender. This finding was in complete contrast to the findings of the agencies, such as Freddie Mac, that found 61 percent of delinquent borrowers didn't know their mortgage lender offered workout options. This is more lender hype and an attempt to confuse the facts according to Soliman. He believes the lenders of America are trying to dodge and deflect the reality of the situation.
I won’t deny the increase in the percentages of delinquent borrowers who understand their lender is appearing to reach out to them. Those versus recent reports that suggest the borrowers are reaching out to their lender to discuss workout options.
Soliman is referring to the 2007 Freddie Mac/Roper survey results based on responses from 2400 plus adult homeowners, including 1,004 delinquent borrowers more than one month late. Roper conducted the survey by telephone from October 23 through November 14. The survey has a three percent margin of error. The new Freddie Mac/Roper poll also says the percentage of delinquent borrowers aware there are housing counselors they can talk to about their mortgage has increased from 36 percent in 2005 to 44 percent today. "This new survey shows efforts to get borrowers to call counselors are starting to work, but that too many at-risk borrowers are still unaware their servicers routinely provide alternatives that can help them stay in their homes," said Ingrid Beckles, Freddie Mac's Vice President of Servicing and Asset Management. "This fact underscores the importance of convincing borrowers to pick up the phone, call their servicer, and find out whether they can avoid foreclosure." Servicers are firms that collect monthly mortgage payments on behalf of investors such as Freddie Mac.
The truth, from Soliman’s perspective, is too many borrower’s are not willing to fight through the multiple telephone “road blocks” that come with seeking help and enduring the often dropped calls. They start to believe almost immediately that the effort is nothing more than adding additional frustration to an already sad situation. Soliman notes, “They (borrowers) often give up after a few hours of effort and resign themselves to the reality that they cannot save their home”.
The majorities of the borrowerhotline.com web visitors are either facing foreclosure or are in the late stages of the process leading up to a trustee sale. Viewers are somewhat shocked to realize for the first time that they are part of an unsettling high number of all delinquent loans whereby one or more examples of lender fraud exists in their file. These instances include fraudulent activity where Soliman believes the borrower was induced to do something unethical at closing. For example, he cites something simple as where the borrower unknowingly misrepresented income on a stated income loan application or was told to exaggerate the amount of total savings in the borrower’s bank account with the lender waiving the need for a verification of deposit. These types of unlawful activities are beyond the borrower’s comprehension say Soliman, as people do not understand the underwriting process or implications of these and other specific secondary mortgage market requirements. The secondary mortgage market is the market for the sale of securities or bonds collateralized by the value of mortgage loans. The mortgage lender /commercial banks/or specialized firm will use specific criteria to qualify borrowers and then group together many similar loans and sell grouped loans as securities called collateralized mortgage obligations (CMOs). In theory, the risk of the individual loan is reduced by the aggregation process. In hindsight it was such a loser situation set up in part due to Wall Street “algorithmic” assumptions and other technical “inside” nonsense determined to eventually come toppling down. And as Soliman puts it, “the pyramid came toppling down with American homeowners receiving the brunt of the responsibility whereby they now are losing their homes”.
Maher Soliman, Managing Director for www.Borrowerhotline.com
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