Naked Capitalism | Obama Pressing for a “Shock and Awe” Mortgage Mod Program, 3 Million in 6 Months

Obama Pressing for a “Shock and Awe” Mortgage Mod Program, 3 Million in 6 Months

Given how well “shock and awe” worked in the Iraq war, I’d see the Administration’s use of that expression in the context of the mortgage mess as a Freudian slip.

I must confess to being surprised at the report by Shahien Nasiripour of Huffington Post, namely that the Administration is pushing for an even more aggressive-looking mortgage modification program than has been rumored. The reason I’m surprised is that this effort, even though it appears misguided on several fronts and falls far short of what is needed, represents an upping of the demands being made against banks. That is contrary to both the Obama Administration’s past behavior of making great sounding promises and walk them so far back as to wind up in a different country, and of inconveniencing the banks terribly much. But Shahien is an able reporter, so I’m sure he has the facts right.

The scorecard thus far appeared to be that the state attorneys general were the only group moving forward against the foreclosure fraud, but the bold promises of criminal prosecutions were quickly recanted. Instead, a 27 page outline of their settlement demands was leaked. As we discussed, it was a disappointment. Virtually all of it merely insisted that banks obey existing law. It has only two new requirements. One was ending dual track (if a bank is entering into a modification discussion or program with a borrower, it cannot keep moving forward in parallel with a foreclosure). The other was “single point of contact,” meaning having one person at the bank serve as case manager and be the interface with the borrower. We deemed that to be operationally unworkable even if the banks had their records and systems working well. And if they got those in order, borrowers would not need a designated person to make sure a modification request was handled properly.

There was also a rumor, which was connected to the AG negotiations, that the banks would be asked to make mortgage modifications at their own expense, and the number $20 billion was bandied about. The AGs and the Federal regulators seemed to be collaborating closely, which we also objected to; the state and Federal issues are very different. The idea that the banks would be pressured to make mods has gotten a huge amount of pushback in the media and from Republican legislators; there appears to be a full bore PR salvo underway.

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24 Responses to “Naked Capitalism | Obama Pressing for a “Shock and Awe” Mortgage Mod Program, 3 Million in 6 Months”
  1. QNY81 says:

    Send a Qualified Written Request/RESPA/TILA letter via certified mail to your lender/servicer. Copy the Office of the Comptroller of the Currency. The lender must answer the questions and put your account in dispute while they answer. If they do not, it is a violation of the Fair Debt Collection Practices Act since the servicer is a third party, not the owner of the note. Do not get a mod, it will just create a new note and then they can foreclose. Get an attorney that knows what they are doing.

  2. I don’t even like the name of this..whatever it is…” Shock and Awe “….a Mortgage Mod Program. Is there a message in that ‘ title ‘ ? OK…shock..a sudden powerful blow….awe…a mixed feeling of reverence, fear and wonder. Why would they put that name on a mortgage mod program.? Maybe I vent can answer this one….
    Another thing…Three million mods in 6 months…another rushed deal…just as the banks did at the closing…everything was a rushed job after they got your signature on the doted line in blue ink….rushed so fast there was no underwriting done..just pass the mortgages on…money, money, money….
    Beware folks….with this ‘ title ‘ and a rushed job…to get all done in a 6 month span…. sure don’t sound like this is the answer we are looking for. In fact…it sounds like something to avoid. I believe my daughter will choose court over this offer….in fact, I know she will.

    • l vent says:

      Shock and Awe sounds like a New World Order threat. That is what they called the begining of the Iraq war, The shock and awe campaign. No mistake in the wording I do not believe, they are very adept at mind games. What a bunch of Nazi propagandaists. I would like to see how they can force a pretender lender, a mortgage servicer who is really just a debt collector, to give the struggling homeowner a loan mod. What are these servicers doing with these mortgage payments? We do not even know where the money is going or who we owe the money to. The bank who held my loan is now a so called “failed” bank and is in FDIC receivership (very deceptive I would say). A forced fraudulent loan mod is just more fraud to cover up for past fraud. They want you to establish a new debt/clear chain of title so they can fraudclose. They are very deceptive and they are all liars. They always have something very deceptive up their sleeve. Alex Jones show had on a guest who is some elite insider and he said we are all going to be paying our mortgages through our property taxes whithin in the next 2 years. Sounds like a sneaky way to sneak in communism. they are very deceptive and this was a strategic plan I believe for them to gain complete control of our property rights. One of the New World Order’s Marxist Communist Manifesto goals Is the Abolition of private property. They also want to abolish sovereign nations. ordered governments and patriotism. They are trying damned heart to make us hate our Country, but is not our country that is to blame, it is the treasonists who have been running it. The only way they can acheive their evil plans is through lies and deception. Their cover is blown and so are all of their lies they want to have us believe. The New World Order is hiding behind the U.N.. and the Federal Gov. They are fooling no one. They are out to protect no one but themselves and they are all up to no good. They remind me of a coven of witches, you never know what they are brewing up next. God Bless America, National Sovereignty and the free will of the people will prevail over all of these highly destructive evil doers. The New World Order/vatican assassins are thieves of freedom and wealth. That is no way to live.

      • l vent says:

        Keep an eye on the G-7. They are the financial arm of the NWO. Japan is in there. Notice the stock market numbers with the exception of today. They dictate world monetary policy.

  3. l vent says:

    I am not aiding and abetting the criminal financial terrorist network, the New World Order. I am not a treasonist, I love my country too much. The dirty, filthy, power hungry, greedy politicians have sold out enough of our country to the foreigners. The U.N. might own all of the land in America in fee simple because of treason by our own corrupt, greedy, power hungry politicians who are in cahoots with the New World Order but, they do not own our homes. We own our homes because the banksters screwed up. Not paying another dime to the hidden theives SMOM/VATICAN/JESUIT U.N./New World Order. F— them. I would rather watch it burn.

  4. Henri Jordan says:

    If they say, Come with us, let us lay wait for blood,let us lurk privily for the innocent without cause: Proverbs 1:11 Ocwen sent me a payoff statement contract releasing me of the right to file for the class action lawsuit against them when filed.

  5. B Anderson says:

    …add to this: Every mortgage contract that was based on fraud is null and void, pursuant to the law.
    Same with every faulty assignment, foreclosure, etc. Every time I look through our file – with initials that aren’t mine, a disclosure form that has no signature and the “interview” form showing the most inflated fictional assets beyond imagination — I could scream.

    Yep, I’m ready to share this file with the law firm that’s filed a class action suit against Chase for securities fraud…and our supposed “trust” is listed in their case. I’m sure the investors would love to see the kind of “slop” Chase was up to….

    Sorry to ramble — but it just fries my a$# !!

    • You don’t need to feel you are rambling….you are expressing your anger….we all are…just some of us pour our anger out big time but also try to get info to others that may help them to find fraud or to help them understand why and how all this massive crime of fraud began and why. History and knowledge play a big part right along with the fraud. What caused the massive frauds and millions of home lost in foreclosure is the history and knowledge others try to pass on. Trick is to look for key words and the puzzle will start to be complete.

    • losing my home in florida says:

      @b anderson the mortgage broker for wells fargo also lied on my application. did not know about a “stated income loan” i sent he rpay check stubs and the mortgage application is not given to until closing when the loan is already approved and you are signing documents. when i go to court that will be one of my key defenses. one of the questions was how can i prove i sent her my financial info. i have emails that transpired between us in 2006 that prove. the emails are date and timed stamped.

      i tried to watch the inside job years a go when this 1st happened in 2009 but did not uderstand CDO’s and deritivitives nowi do please everyione watch the in side job. we learn that #1 all the guys responsible fo rthis ponzi scheme are all in the government right now, we learn that derivitives are insurance policies betttting on our loan failing. insdie job even metions the big clincher t othis whole mess THE FRAUDULENT APPRAISALS.

      maybe winning the academy award for best documentayr gives it clout in the court of law. i wonder why this movie has not been supenea’d to prove to the judges that fraud was committed against us without our knoowledge and our loans are ll insured betting on our foreclosures.

  6. Jason Werner says:

    The devil loves to talk about what he “wants” to do tomorrow. He is a master deceiver with great PR to try to make it look like borrowers are being “helped” while there is a massive front being operated to conceal and hide the banks’ absolute and outright fraud.

    Jesus Christ says, “Now is the day of salvation.” The fraud must stop now. The banks’ crimes must stop now. Real restitution (adjusted for inflation too) must be delivered NOW to the victims (borrowers and investors).

    • l vent says:

      The people may find out the truth by going to visit their friendly, neighborhood foreclosure defense attorney. Pick one, any one. They do not want to go up against the revived roman empire. They will try to make you think you are crazy, there is no fraud in the mortgages, that is what the banksters did, my friend, the banksters, they can do not wrong. They will tell you there are no laws or rules for the banks. One attorney even went as far as to tell me, the U.S. Constitution protects the banks from the U.S. Government.The FDIC is the fricken U.N. and so are all Federal Government agencies that are posing as Americans protecting the American people, HA!!! Where do you really think your Federal property tax and income tax money goes? You might be surprised to find out, it does not stay here in America. S.S. checks and tax refunds, they do not come from here either, that all comes from across the pond. These are not even AMERICAN OWNED BANKS, THEY ARE OWNED BY THE MULTINATIONAL BANKSTERS, THE FOREIGNERS. The vatican assassins and their elite cabal of financial terrorist network own and control BofA, Chase, none of them are American institutions, that as an evil and deceptive fraud and a sham. BofA does not even pay tax here in this country, they have over 100 overseas tax havens to hide what they make to avoid paying tax in our Country. They received the ginormous U.S. tax-payer funded bail out and they are not even American Banks and the do not pay tax yet they robbed us blind in the biggest Ponzi Scheme Heist of our wealth known to man. I have learned that everything has two faces and nothing is as it seems. It is all meant to be incredibly deceptive. That is how you know you are up against this New World Order. The crazier something seems, the more true it probably is and that is what they do. Order out of Chaos is their motto. F— them.

      • Bank of America was a bank from Italy…I believe about 1905 the bank opened in California. Over years headed east. It probably was called Bank of Italy before that, not sure.
        JP Morgan was a bank in France at the time of Hitler was setting up his shit. Cause in history it told that the bank backed Hilter with funds…and the bank kept all the Jews money from accounts. If the bank was in other countries, that I don’t know. I think it was after the war, JP morgan Bank came to America..again not sure.
        Not to sure on this…But a group of well known names here in America, along with some Nazis opened a bank here also. This group of men were in Germany also backing Hitler, all wealthy and some owned corporations here in America.
        I won’t name names but everyone would certainly know them. I also believe some were even in the government. Google it……

      • l vent says:

        Right on Marilyn! Everything is a sneaky little majik trick. They are evil incarnate. They are up to nothing good. I would wager a bet that at least half of the American people do not even know this. Imagine the outrage if those people knew the money stolen from the tax-payer funded bailouts were not even American Institutions. That are all a giant fraud and have infiltrated everything. They will not fly under the radar anymore in order to destroy us if we keep on spreading the truth. The truth will set us free. They want to try and make us believe lies are truth and all of the criminals are saints. That is satanic. The American people will eventually all find out who is lurking and well hidden behind the scenes of everything bad in the world. They are all in legion with satan.

  7. They had 4 years to “mod.” They can stick the “mod” up their ***!

    I fully intend to sue civilly – and then start pressing CRIMINAL charges against every soon-to-be felon I can catch. So far I have a very long list of culprits.

    About 1/10th of my life has been destroyed, has caused great loss, and somebody will pay me back.

    • Rob…If anyone can do it, you are the man who has the smarts to do it. Julie and I ( from Sarasota ) know only part of what you have been through but hearing the rest would just send us into orbit. Anger runs very deep with us also, and how deep time will only tell. Keep your chin up Rob…your ahead of the ‘ game ‘… this point I feel the banks are against the wall…..offers and changes coming from all directions….a bit too late. And these all are government backed fraud…. who are they fooling? Or should I say trying to trick?

    • l vent says:

      @Rob Harrington: I’m with you. They destroyed countless lives and countless communities. I personally know of 3 suicides(one was a father with triplet daughters and they were just starting high school) because of these gross injustices OF THE MORTGAGE FRAUD PONZI SCHEM HEIST OF OUR WEALTH that has been SHOVED DOWN THE THROATS OF THE HARD WORKING American people and America in general. How dare these foreigners think they can come into our country and destroy it like a thief in the night. Our own politicians because of nothing more than power hungry greed acted as treasonists of their own country and almost completely sold out and nearly destroyed America.Some of the richest pigs and treasonist Politicians in this country are a part of the Secret Societies evil plan for a New World Order complete takeover of America and the world. The skull and bones, the Freemasons, all have the NWO agenda on their plate. Every President has stolen and chipped away at our National Soveriegnty. OUR FREEDOM and OUR COUNTRY. They are all a national disgrace. The 2 party system is completely broken down and corrupted, the entire CONgress is owned by the U.N./NWO as well as OUR EXECUTIVE BRANCH, FEDERAL BRANCH and our JUDICIAL BRANCH, COMPLETELY OWNED AND THEREFORE CORRUPTED.. Even the ATTORNEYS are all working for them. We The People demand our National Sovereignty from the U.N./NEW WORLD ORDER. THESE ARE OUR HOMES AND THIS IS OUR COUNTRY. GOD BLESS AMERICA.. WE WANT THEIR ASSETS FROZEN AND THE MONEY RETURNED TO THE PEOPLE. THEY ARE ALL FASCIST U.N./NWO FINANCIAL TERRORISTS. SEND THEM ALL PACKING AMERICA, THIS IS OUR PATRIOTIC DUTY.

  8. Eugene Villarreal says:

    I wouldn’t let Obama shine my shoes even if he could pull them out of his a** because they would be in so far deep that there wouldn’t be enough shoe polish to make them shine again. This is from someone who was a diehard Democrat who shined shoes as a young kid.

  9. l vent says:

    Why didn’t we get the first loan mod? That tax-payer funded bail out money dissapeared into thin air and was never accounted for like the 401K money and other pension money and other Wall Street investments by us, “the little guy”. Where is the money going to come from to do this? Who is going to cure the deficiency for the payments already missed by the homeowner’s because the first loan mod package, the HAMP/Obama plan failed? Are the American people going to be expected to take on that debt in addition to a fraudulently created loan modification. With no clear chain of title, because the pretender lenders avoided following proper public land recordation to protect and secure our property rights and secure and perfect their “collateral lien,” and then of course there was MERS, now that really destroyed chain of title. How can we be forced to pay a mortgage that no one, any where can prove they are owed this money? To simply say that we owe money to someone is not proof of who the money is owed. The reason the banks/servicers did not give us the first loan mod was because LEGALLY they COULD NOT. They would have had to fraudulently induce a mortgage because they are PRETENDER LENDERS/BILL COLLECTORS. That would have been more MORTGAGE FRAUD. Alot of the banks involved in Foreclosuregate are now failed banks. How can a BILL COLLECTOR give a loan mod? They are not owed this money. They know they cannot prove who is owed the money. That America, is more mortgage fraud and another crime. Someone needs to explain this to President Obama.

    • l vent says:

      The pretender lenders, the banks/servicers, are just a FRONT for Fannie/Freddie. Geithner said yesterday that this flawed business model that is Fannie/Freddie needs to be wound down. He also said that mortgage lending needs to be left to the private sector. Fannie/Freddie DOES NOT own these loans either, they only “back” these shit loans. They are no more than a bill collector as well. The banks/servicers are just an extension of their bill collecting arm, FANNIE/FREDDIE’S name is NOT in the CHAIN OF TITLE.. That is GOVERNMENT SPONSERED FRAUD.

    • I have said this forever….all this mod crap…they cannot prove who is owed the money, they are not owed the money, so how can they, the banks, servicers or anyone, give any mods……this just takes the fraud deeper. They don’t own shit. Giving a modification to a borrower, principal or other wise, is basically underwriting a new loan. How can they even write a new loan when they don’t own the old loan? I read an article on the scam of the mods. It went thru all the stages of a modification. Explaining what lies ahead for the borrower who is sitting at the table with the same bank that screwed them on the exact mortgage they are seeking help to get out of….he felt no pity for the borrower due to ignorance…jumping right back into the boiling pot of hot water. Also, with this new mod set up…something has to be fishy…I just sense it…a new loan will void out the old loan…so will that ‘erase’ all the frauds? Clearing the banks of all frauds? I bet the borrowers will have to sign to waive the rights to litigate……cause if there is a time set to get millions modified and done…this has to have something to do with trying to stop lawsuites….I feel they are backed up to the wall….I wonder if the cards tell of a Nationwide Lawsuit…hmmmmm

    • I vent….You are so silly…..explain what to President Obama? He is to busy playing and partying….I was reading Naked Capitolism…article of Shock and Awe…below that are other topics to read…these are in red letters…go down to the 4th one…AS THE WORLD LITERALLY BURNS…. this will tell you what he actually does…. I have been asking..’Where is Obama…Does he not know this country needs help? Is he not the president?’ Now I know…living the life of Reilly…having a damn good time all while the world is spinning with troubles…including America…everyone has got to read this…..this fries me beyond words can express…….I am beginning to believe the fraud does not end with just foreclosures…….

      • l vent says:

        I am no fan of Obama. They ARE NOT FOOLING US. They are testing us to see if we are going to take the bait. I am not naive. I know there are well laid plans here. They are playing us to see what we know, that is obvious. Donald Trump called Obama out the other day about his golfing while japan is in nuclear meltdown. I kinda like Donald. Michael Savage on his nightly radio show calls Obama and his wife the imposters in the White House and talks about his Motown party at the Wite Huse while the middle east is burning.. I am not voting for any of the bastards in 2012. They all just want to help destroy us. They are all liars.

  10. MARIO KENNY says:

    Sure I am lining up for some MOD, after they caused me all this suffering and now I know they cannot prove anything, do you think I can be happy with a mod?

  11. losing my home in florida says:

    another report with out sollutions

    how can we be approved for hamp if this (above ) is happening i am sickened by all this. fix (above link) and maybe it will work but most likely when that happens i will be out of my house already. succumbed to the fraud of wells fargo “to big to fail” the fraud, abuse being perpetrated goes beyond human nature. so sorry we all have to be going through this. my 760 credit score shows aperson of good faith and pays on time not a defualting deadd beat that doesnt read and know how to send paper work on time . oh help us all please

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