FHFA Director Praises Principal Paydown Plan for Undersecured Mortgages

FHFA Director Praises Principal Paydown Plan as “Promising” and “Credible”

Pledges to Provide Members an Assessment in Two Weeks

Washington, DC (Oct. 26, 2011)—During a meeting today with 19 Members of Congress, Edward DeMarco, the Acting Director of the Federal Housing Finance Agency (FHFA), praised a principal reduction proposal by Rep. Zoe Lofgren and pledged to provide an assessment within two weeks of how it could be implemented.

Rep. Elijah E. Cummings, the Ranking Member of the House Committee on Oversight and Government Reform, hosted the meeting with Rep. Dennis Cardoza, Co-Chair of the Housing Stabilization Task Force, to discuss additional measures to address the foreclosure crisis.

Members lauded the latest move by FHFA.  In response to DeMarco’s comments, Cummings said, “If Mr. DeMarco actually works with us to implement this proposal, it would be an important step to address this crisis, especially on the heels of his announcement Monday that he will implement the President’s plan to help responsible American homeowners refinance at today’s historically low rates.”

Rep. Lofgren stated, “I am encouraged that the Federal Housing Finance Agency is considering a plan similar to the one I’ve long advocated. Allowing homeowners to pay down the principal balances on their mortgages more rapidly in conjunction with Chapter 13 filings is a sensible solution.  Linking this to the bankruptcy process will help those who truly need it and avoid the administrative failures that have plagued other modification initiatives. I believe this plan is entirely consistent with FHFA’s obligation to minimize taxpayer losses in Fannie Mae and Freddie Mac, and I look forward to Director DeMarco’s answer two weeks from now.”

Rep. Lofgren’s proposal would allow homeowners in Chapter 13 bankruptcy to pay down loan principal and reduce negative equity during a five-year period with no interest.  In exchange, homeowners would agree to settle claims against servicers, thereby avoiding litigation and reducing taxpayer liability.

During today’s meeting, Mr. DeMarco said his legal team had already begun reviewing the proposal.  “Based on initial feedback,” he said, the proposal “has a lot of promise,” “strikes me as being responsible,” and appears to be a “credible way” to address the crisis while recognizing various interests in mortgaged properties.  He committed to Members that he would provide a more detailed assessment of the proposal within two weeks.

Today’s meeting was a follow-up to a previous meeting Cummings and Cardoza hosted on October 6, 2011, during which Members pressed DeMarco to implement the President’s recent proposal to eliminate barriers faced by underwater homeowners seeking to refinance their mortgages at current market interest rates.  DeMarco announced on Monday that FHFA would be taking several steps to reduce these barriers.

Cummings issued a release on Monday stating, “I commend the President for proposing this idea in his speech to Congress, and I thank Mr. DeMarco for listening to the concerns of Members and their constituents.  The changes announced today will provide additional relief for middle-class Americans and an important boost for our economy.  But we must not stop here.  Economists warn that the housing crisis is ‘ground zero’ for the economy and jobs, and this is only one modest step towards addressing it.”

How the principal paydown proposal would work is detailed below…

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4closureFraud.org

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Principal Paydown Plan for Undersecured Mortgages

Comments
20 Responses to “FHFA Director Praises Principal Paydown Plan for Undersecured Mortgages”
  1. I vent…..Did you see this ? http://news.yahoo.com/vatican-stunned-irish-embassy-closure-131052801.html hmmmm….is this the start against the Holy See ??? Sex and money….the root of the evil….this was on the internet news today….

  2. COCO says:

    ONCE YOU SIGN PAPERWORK WITH THESE THIEVES, THEY WILL RE FORECLOSE ON YOU . DO NOT SIGN YOUR HO– USE AWAY. THEY CANNOT OFFER WHAT THEY DO NOT HAVE.

  3. COCO says:

    IT WILL NEVER HAPPEN. I AGREE IT IS A SMOKESCREEN TO CHEAT US EVEN MORE. GOOD THING WE ARE NOT STUPID . WE DO NOT OWE THEM(WHOVER THEY ARE) MONEY. THEY HAVE BEEN PAID FOR THE MORTGAGES AND HAVE RECEIVED BIG FEES IN THE PSA PROCESS. ANOTHER BOGUS ATTEMPT TO DEFRAUD US AND THE COURTS.

  4. lvent says:

    Pay down what principle? They never lent us any money…Not only do these crooks owe the U.S. TAXPAYERS TRILLIONS they are insolvent on paper…their books are cooked…they have accumulated so much debt for themselves….600 trillion dollars in mortgage derivatives alone..CHASE HOLDS 60 TRILLION OF THAT COLLATERAL MORTGAGE FRAUD DEBT…Wall Streets debt is UNSUSTAINABLE….This is the same thing MF GLOBAL did to their investors except what the whole of Wall Street did to the 99% is MF Global on steroids…EXPONENTIAL COLLATERAL MORTGAGE FRAUD….WALL STREET and their investors were all buying, selling and trading off of thin air….backed by ZERO..WE THE PEOPLE will make NO MORE payments to the crooks that robbed us to keep their Ponzi Scheme with mortgages going..Throw all of these crooks in prison…Interesting article in Zero Hedge..entitled: MF GLOBAL THEFT ESTIMATED DOUBLED TO $1.5 BILLION.
    http://www.zerohedge.com/news/mf-global-client-theft-estimate-doubled-15-billion

    • lvent says:

      The FHFA…finances their perps with U.S. TAXPAYER MONEY….who do they think they are fooling…?? Lousy crooks, all of them.!..MAKE WALL STREET PAY THEIR OWN BILLS…! THE U.S. TAXPAYERS REF– USE TO PAY FOR ANOTHER DIME OF WALL STREETS $600 TRILLION IN MORTGAGE FRAUD DEBT..THE U.S. TAXPAYERS WANT ACCOUNTABILITY FOR WHAT THEY DID WITH ALL OF OUR MONEY…! WE THE PEOPLE WANT OUR MONEY BACK AND THE CROOKS THROWN IN PRISON..STARTING WITH THE POLITICIANS…!!!..WALL STREET OWES EVERY ONE ON THE PLANET BECA– USE THEY ARE CROOKS!!!….

  5. Prosecute the fraud says:

    Pretty amazing, this whole program is proof that the Fed Gov is in cahooots with all the big banks to fix all the crappy loans they made fraudulently.

    Anyone who does this program is a fool, it amounts to a personal bailout for the banks to fix the mess they created.

    No bailouts for the banks that made fraudulent loans, fraudulently securitized those loans, sold them in bundles and fractionalized the deposits that they made with your equity on your home and failed to disclose to the homeowner what they did with your equity, the banks created this mess, let them pay to get out of it, including criminal charges for all the fraud.

    I say Rocket Docket Quiet Title actions and let people have their homes and lives back. Enough of this crap.

    Bank of America deserves to go bankrupt and be broken up. Put the banksters and all MERS members in jail.

    The economy may be bumpy for a bit, but with our homes with clear title, hope is around the corner for cleaning this mess up and moving forward.

    • lvent says:

      There is no bailing out these crooks…they are insolvent on paper…THIS IS ALL ABOUT BANKRUPTING THE AMERICAN PEOPLE..AND THE GOVERNMENT(S) ARE ALL IN ON THE HITLER PLAN…. they will steal as much of our money from us as they can to spread our wealth around the world to their FOREIGN INVESTOR FRIENDS AROUND THE GLOBE…AND EXCHANGE OUR WEALTH OVERSEAS TO PURCHASE OTHER FOREIGN INVESTMENTS…DONT SEND THEM ANOTHER DIME….NATIONWIDE MORTGAGE REVOLT AND PROPERTY TAX REVOLT…!!! SHUT DOWN THESE CRIMINAL INSTITUTIONS, PUT THEM IN RECEIVERSHIP AND PAY THE U.S. TAXPAYERS BACK THEIR STOLEN MONEY!!!!! THEN THROW THESE CROOKS IN PRISON!!!!!

      • lvent says:

        INDIVISIBLE…STOP PAYING THESE CROOKS AMERICA…THEY ARE STEALING YOUR WEALTH AND STEALING YOUR COUNTRY…..!!!! THIS IS ALL ABOUT BANKRUPTING AMERICA…TO PAY FOR WALL STREETS CRIMES….WALL STREETS DEBT IS UNSUSTAINABLE.WAKE UP AMERICA!!!!..STOP PAYING THESE CROOKS WHO ARE STEALING YOUR COUNTRY!!!!!

    • As said all along…these rats are running in all directions…like in a cage and can’t get out…They are trapped and they know it….finding every which way that they can….to try and fool the people… it will not work…the game is over Mr. Evil Bankster… and the paid for and bought corrupted polititicans can expect us..they played the enemies game with them and now the politicians must pay for that crime…..
      A paydown plan ON WHAT?….we owe the banks NOTHING……We the People are owed trillions….we are owed all mortgage payments made to the criminal banksters…every single payment…the Notes were deposited and cashed right after the closing….DO NOT SIGN ANYTHING….IT IS ANOTHER TRAP SET UP….The evil banks and the evil corrputed government know the people are way past their evil schemes…we are ahead of their games….we are winning….and they know it….they are sinking and fast……DO NOT PAY ANY MORE TO THE BANKS…NOT ONE DIME….THE IRS IS ANOTHER FRAUD THAT HAS ROBBED THE PEOPLE…THE FEDERAL RESERVE OWN’S THE IRS….AND THE LIST GOES ON….INCLUDING OUR SOCIAL SECURITY THAT WE HAVE PAID INTO….WE HAVE BEEN ROBBED OF ALL OF OUR WEALTH….WAKE UP AMERICA AND TELL THEM ALL TO GO TO HELL….WE WILL NO LONGER BE VICTIMS OF THE EVIL ROME / VATICAN…..YOU NOW SEE THE WORLD HAS ALSO REALIZED WHO HAS ROBBED EVERYONE AND WEAKENED THE COUNTRIES….

  6. leapfrog says:

    I wouldn’t even bother to get up in arms about this plan. Its a smokescreen. The banksters have absolutely NO INTENTION of reducing anyone’s principle. They are just too greedy and think they can still “have it all.” That’s why Oblablah is trying to force that shitty AG deal through – reward his banksters and punish the 99%

  7. Jeff Barnes says:

    “In exchange, homeowners would agree to settle claims against servicers, thereby avoiding litigation and reducing taxpayer liability.” NO!

    • lvent says:

      THEN WE WILL SUE THE TITLE COMPANIES……!!!!

      • lvent says:

        AND THE NOTARIES!!!

      • I VENT..ALOT OF THE TITLE COMPANIES HAVE SHUT THEIR DOORS……but I have said before…the title co. that did my daughter’s closing was in on the fraud….the bank took the Note and the Title Co. did the recording of the mortgage in county records….and on the recording it states that the recorded mortgage is NOT TO BE SENT BACK TO THE BANK………IT REQUESTED FOR THE RECORDED MORTGAGE TO BE SENT BACK TO TITLE CO AND IT GAVE THE ADDRESS WHERE THE CLOSING WAS HELD. that was the red flag I saw waving to get my attention real fast…. the ‘ bank ‘ took the Note… the mortgage would be put with the Note to secure the note….but the bank did not get the recorded mortgage according to the title co….and the second copy of the note we have…has the stamp of endorsement ..without recourse and signed by ‘ someone ‘ at WAMU…..that person who signed the endorsement was NOT at the closing…that person lived in California and was connected to WAMU and the closing was in Florida….and the notes do not need to be notarized or dated……where the original mortgage… that was recorded went or who even has it remains a mystery…Tttle Co said it falls under the privacy act and only a subpoena would get that information. But we do know by the endorsement the Note was cashed or sold…the bank lent no money…and the mortgage is somewhere in mid air….so I agree with I vent…the Title Co’s were in on the fraud….

      • lvent says:

        Marilyn, it was most definitely the title companies who did all of the covering up for the banksters…and they were all getting rich off of the fraud…An attorney told me a while ago…who do I think altered these documents? I said I’m no sure…he said not the title company? He was trying to tell me something…He also told me that none of them thought they would get caught…and their debt is unsustainable..don’t sign or agree to anything…Everyone should just sue all of the dirty bastards..!

    • I VENT…AT THE END OF THE CLOSING MY DAUGHTER CAME HOME WITH COPIES WITH NO SIGNATURES…..they signed many many copies while there…and was told by title co that signed copies would be sent…never sent them…BUT ALL WERE FILLED IN TYPED BY THE TITLE CO…THEY DID TYPE THEIR NAME ON ALL OF THEM…( the copies she got) ..BUT THAT WAS IT…NO CLOSING SHEET..JUST COPIES OF WHAT WAS IN THE MORTGAGE…The title company said to get a copy of the closing costs that would have to be in the subpoena….that tells me they are hiding the facts…but as it stands the ‘ plaintiff ‘ has already screwed themselves…..the plaintiff is nothing but the servicer…and the original ‘ bank ‘ never lent any money and they were paid for something they never owned…..we have the stamp on the Note without recourse…….they were paid…fraud….There is nothing in this mortgage as you have…yours is a nightmare…..I would be foaming at the mouth….one can certainly understand your anger….WAMU was so crooked and into fraud…I would say they destroyed alot of the documents…trying to leave no trail…..

  8. abs says:

    we dont negotiate with terrorist.

  9. Mrs Doughtfire says:

    kinda re secure loans that they never owned to begin with. So they can forclose on us without any recourse or question on who ownes it.
    How about this: take all of our payments we have made throughout the loan, add that to the principle, now take the amount left and eat it since they made so much money to begin with on all of us. We own our homes free and clear.

  10. Mrs Doughtfire says:

    Im not so sure about this plan? something is missing here. Something is not right.

    • Sal Graziano says:

      You’re right on that Mrs Doughtfire – something’s not right – it’s not a ‘cram-down’ – it’s a ‘scam-down’!

      Banksters will love this – sure – let them hyperinflate the market so they can burst the bubble and steal our ‘equity’ (that never really existed like the ‘loans’ they never really made) through fraudclosure (after they collected the insurance and got paid) then let them screw us once more by now getting the families left in the upside down mortages to pay the shysters the ‘negative equity’ (read value that does not exist) and then get us into a real equity position so they can manufacture some other contrivance to screw us again by now fraudclosing on homes that are no longer upside down!

      And they wonder why there are OWS around the country!

      They really do have a conceit that is unmatched.

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