I read the most outrageous headline “Citigroup’s $306 Billion Bailout Fueled by Pizza.” Citigroup has been in trouble for months. I compared my Citi statements and offerings to my Chase statements and concluded that Chase was in a stronger position. I didn’t comment on it because I am concerned speculation may contribute to Citi’s problem.
Archive for » November, 2008 «
The bailout of Citigroup, which put the government at risk of hundreds of billions of dollars in losses, was finalized on Sunday. The following Tuesday my wife and I received a notice of change in terms from Citigroup. Take it or leave it, or pay off the account. Millions of credit card holders in the United States received similar notices. I cannot speak for anyone but me, but the timing angers me. The government continues to bail out credit card companies and banks that strongly oppose any credit card customer bill of rights.
Category: Government Positions
Leave a Comment
Mortgage brokers are out and direct lending is in. Many of the major mortgage lenders that brokers dealt with nationwide have either gone out of business, been acquired or pulled back. Some are under indictment for mortgage fraud, while others – both mortgage brokers and mortgage wholesalers – are telling about sex, drugs, parties, and a general attitude of “mortgage whores.” The degree to which that describes the industry is unknown, but local mortgage brokers in our area disappeared like Jimmy Hoffa. Federal and state prosecutors are picking through the industry’s wreckage in search of criminal activity.
Category: Editorial
Leave a Comment
Aline van Duyn of FT.com wrote a great article that explains a few things about mortgage modifications. I quote part of van Duyn’s article below. But that is not the real shocker. While approximately 35 percent of people are struggling with mortgages, what really drives me wild is what happens when the neighbor gets $100,00 knocked off of the mortage balance while others in the neighborhood keep paying on time like they should.
Category: Lawsuits
Leave a Comment
Today, about 80 percent of the $1.8 trillion in troubled mortgage loans belong to investors, according to Deutsche Bank. The rest are considered “whole loans,” held by banks or government-run mortgage giants Fannie Mae and Freddie Mac. Some people might not feel sorry for the investors, but others think investors were mislead about the safety of such loans. Either way, why are mortgage companies reluctant to help troubled homeowners? The fault lies with investors. It is a simple matter of contract law.
Category: Foreclosure
One Comment
