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Posts Tagged ‘principal reduction on mortgages’

Where is Wall Street Hiding Hundred Plus Billion in Lo$$es?

Posted by Larry Doyle on March 8th, 2010 11:24 AM |

U.S. Rep. Barney Frank (D-MA)

Banks are increasingly healthy, right? Our nation’s accounting rules promote real transparency and integrity in our financial reporting, right? Housing is bottoming, right? No, no, and no!

Why so pessimistic, you may ask? I am not pessimistic at all. I am merely searching for the truth in the midst of the smoke and mirrors on Wall Street and in Washington.

Thank you to our friends at 12th Street Capital for sharing a recently released letter from Congressman Barney Frank imploring the four largest banks involved in mortgage originations to write off second liens they are holding on their books at inflated values.

Why does Congressman Frank believe these loans need to be written off? (more…)

Mortgage Cram-Downs Revisited

Posted by Larry Doyle on December 11th, 2009 2:03 PM |

Having broached the topic of mortgage cram-downs this morning, Bloomberg reports that an amendment adding this capability to pending legislation was voted down today. Mortgage ‘Cram-Down’ Bankruptcy Amendment Fails in U.S. House:

Republican lawmakers defeated a mortgage “cram-down” amendment that would have given federal judges the power to lengthen mortgage terms, cut interest rates and reduce loan balances for homeowners in bankruptcy court.

The U.S. House of Representatives voted 241-188 today, stripping the amendment from a broader package of proposed laws to rein in excess on Wall Street. The cram-down provision was identical to legislation that passed the House in March and then failed in the Senate amid opposition from the banking industry.

This vote against mortgage cram-downs is the second time it has been struck down. As the dynamics within the mortgage crisis linger well into 2010, I fully expect this proposed piece of legislation will be back up in front of Congress again.


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