Home On The Range…..The Mortgage Mess Gets Bigger By The Day
Posted By thestatedtruth.com on October 4, 2010
The Mortgage Mess as it affectionately is called seems to be getting new names with each passing day – the latest one is, quite appropriately RoboSigning Scandal During today’s CNBC Kudlow segment Diana Ollick confirms various so far unfounded rumors that the government is planning to institute a 90 day foreclosure moratorium as it deals with the realization of just how big and pervasive the mortgage problem is, and even worse will soon be. Larry Kudlow noted that this is the “housing equivalent of the credit financial meltdown” and that “this is going to go on for ever.” The biggest issue that is now developing is the fact that title insurers (firms such as Fidelity National, First American, Stewart Info and Old Republic) are refusing to insure mortgages in foreclosure or otherwise, uncertain as to who actually owns the title. And for all those who believe this will merely keep prices artificially high,  there is very bad news – the problem with the title insurers walking away on fears of lawsuits is that no lender will be willing to write a mortgage without title insurance, meaning that suddenly the up-front component of home purchases will either have to surge, or home prices will have to fall by a like amount as there is simply not enough equity (money) to cover the resulting debt deficiency.
Kudlow: “We’re not talking just a few weeks, or a few months. This sounds like a long, drawn-out, bureaucratic, robotic process with lawyers, and oh my gosh.” Another implication: a veritable bonanza for both lawyers and defaulters, the former of whom will end up making billions in legal fees while the latter will be able to live mortgage free for years, while continuing to be the ultimate consumer.
Another important topic discussed is the fact that due to decades of faulty securitizations, suddenly no bank knows who owns what. Courtesy of several trillion in now title-undefined mortgages, which in turn form the basis for thousands of CDOs, which in turn are split up into millions of tranches, and includes the complicity of Fannie, Freddie and private label, it is the banks and their clients that have shot themselves in the foot: as other have noted, very soon, the entire MBS process can and very may grind to a halt.
As mentioned earlier, Ollick confirms that according to rumors, the government is going to impose “some kind of 90 day foreclosure moratorium on the banks which would melt down the housing market.” In fact Congressman Merkley already indicated he is for a foreclosure moratorium.
At the end of the day: the one true loser, is the law-abiding, conscientious, tax and mortgage paying middle class American, who is now preparing for TARP 2 as the banks will all almost definitely need to run to another bailout because of this catastrophe.
Must watch 10 minute discussion of this important story.
More at: www.zerohedge.com
… [Trackback]
[…] Find More here|Find More|Find More Infos here|Here you will find 32827 additional Infos|Infos to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More on|Read More|Find More Informations here|There you will find 82192 more Informations|Informations on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More here|Read More|Read More Infos here|Here you can find 67284 additional Infos|Informations on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More here|Read More|Find More Informations here|There you will find 60702 additional Informations|Informations on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More here|Find More|Read More Infos here|Here you will find 44544 more Infos|Infos to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More on|Read More|Read More Infos here|Here you will find 74321 additional Infos|Informations on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More on|Find More|Find More Infos here|There you will find 22948 more Infos|Infos to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More on|Find More|Read More Informations here|Here you can find 17754 more Informations|Informations to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More here|Find More|Read More Infos here|Here you can find 81562 more Infos|Informations on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More on|Read More|Read More Infos here|There you can find 96841 more Infos|Informations on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] There you can find 58120 additional Information on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Here you can find 16184 additional Information to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More here on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] There you can find 91442 more Information on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Info on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More Info here to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Information on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More Info here on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Info to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More on on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More Info here on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] There you will find 16986 additional Info on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More here on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More here on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More Info here on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More here on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More on on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Here you can find 69958 more Information to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Info to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More on to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More on to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Read More Information here to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More Information here on that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Here you will find 82366 additional Information to that Topic: thestatedtruth.com/?p=10733 […]
… [Trackback]
[…] Find More on that Topic: thestatedtruth.com/?p=10733 […]