FAIL | Edward DeMarco Rejects Gov’t Mortgage Write-Down Plan

Regulator rejects gov’t mortgage write-down plan

WASHINGTON (Reuters) – The top U.S. housing regulator rebuffed the offer of taxpayer funds to reduce mortgages held by struggling homeowners on Tuesday, a blow to the Obama administration which is keen to show voters it can help fix the housing market.

Calling it a challenging decision, the regulator for Fannie Mae and Freddie Mac said using funds from the Troubled Asset Relief Program would not make a meaningful improvement in reducing foreclosures in a cost-effective way for taxpayers.

“The anticipated benefits do not outweigh the costs and risks,” the Federal Housing Finance Agency’s head Edward DeMarco told reporters.

The administration has been pressuring DeMarco to allow the government-controlled mortgage financers to do more principal writedowns. But DeMarco has maintained that this would needlessly drive up the costs of their taxpayer bailout, which has already reached more than $150 billion.

Rest here…

Copy of Geithner’s letter below…



Letter to FHFA

5 Responses to “FAIL | Edward DeMarco Rejects Gov’t Mortgage Write-Down Plan”
  1. Mark Bowen says:

    I for one refuse to negotiate with someone who has no beneficial right to ownership in my loan. As in the vast majority of cases, the “lenders” never lent any money; rather they pretended to make the loans, and in return received commissions in the form of ‘yield spread premiums’ paid by the banks the Fed ended up pumping trillions into (after these same banks scammed trillions from investors). Anyone that believes that it is a failure of government not to force mortgage write-downs is missing most of the truth about Securitization through that massive Ponzi scheme, and are missing the much bigger picture which is what has been called “the great 21st century land grab”.

  2. Mystify says:

    Demarco should be ashamed! If he doesn’t want to write down my mortgage to what it is worth in today’s market than he leaves me no choice than to BK! Figure it out demarco…Bk Will cost the banks and tax payers more. Do you really think I am dumb enough to keep paying on a toxic asset? Think again…

  3. Mario Kenny says:

    like if, in the end the bank would not be begging to write down the debt.

  4. talktotennessee says:

    Help for banks, help for investors or purchasers, everyone receives help but those who were defrauded and still suffering from banking’s predatory practices. While servicers sell short 20-30-40% reductions on defaulting mortgages or REOs 50%+ to allow investors to buy, nothing is done for those who were so egregiously treated in the housing crash and find no relief in the bankruptcy courts either. Fees, penalties, all are heaped on to punish the homeowner who has already lost equity value in his home or is losing his home because he can’t sell it underwater. This is a great travesty. .
    It makes one sick at the injustice that allows banks to continue abuse of those they raped in the beginning. One day history will look back and wonder why we sat and did so little, as a government, to protect the citizens.
    Capitalism isn’t all its cracked up to be folks!

    • charley rice says:

      Alright Everyone, Enough with these Deceptions! Those Prime Banks where bailed out from the busted securitization of the Subprime Banks back in July 2008 & the debt was 4given.

      Now It look like the Prime Banks Servicer Banks, Wells Fargo Bank, Bank of America & others has brought Servicer Fraud on ALL THE Homeowners DEAD SUBPRIME BANKS Deed of Trust account numbers by creating another bogus account number to tie into your Subprime Lender dead Deed of Trust that was originated between you & your lender. Your DOT of trust contract has a your number on the left side that ALL the banks suppose to have. They are Not to Change your account number to extort payments. That’s Fraud…

      These mortgages was sold to Wall Street. So there was No way that the Prime banks could get a VALID CHAIN of ASSIGNMENTS from the Subprime banks. CHECK your DOT number b/c it is tied to your check stub of your tax return & your social security number. Also check if the prime bank sent you a tax return then check and see if their number is the same number as your DOT. Most likely it’s NOT. Countrywide Bank securitized 86 tranches of mortgages before BOA came along and there’s NO way that they could have CW mortgages assigned to them either.

      Look at your past papers, because this is what the banks are doing starting bogus accounts and linking it to your out of business Subprime Lenders’ Dead of Trust which they didn’t a valid assignment on.

      Check & see if pretender Servicer Banks replaced your out of business banks with their letterhead to extort more payments from you by using backdating history.

      The Prime Banks have to have a valid chain of assignment of the debt, and only the original lender has the right to foreclose. Third party banks have NO right to foreclose because it’s impossible b/c the Subprime sold the mortgage to Wall Street.

      This is a BREECH OF CONTRACT on the your DEAD DEED of TRUST and FRAUD upon the your DEAD DEED of TRUST by the prime banks BOA, Wells Fargo etc

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