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Posts Tagged ‘predatory lending’

HAMP = Foreclosure

Iconic Houses

Yesterday’s article "Is 103 Months to Clear Housing Inventory Too Optimistic?" included an excerpt from the WSJ’s "Number of the Week: 103 Months to Clear Housing Inventory," suggesting there were at least 103 months of housing inventory yet to hit the market. Patrick Pulatie, CEO of Loan Fraud Investigations, wrote to me that he believed the 103 estimate was far too low.  

One of Pat’s reasons was that "the HAMP modifications will have a failure rate of at least 75%.  That is due to the Debt Ratios that the mods are approved at. In Feb, the mean ratio was 59.8%.  In Mar, it was 62.7%, which to increase that much, most every Mar approval was far above the 62.7 number."

In this article, Pat discusses the HAMP loan modification program in more detail. 

HAMP = Foreclosure

Courtesy of Patrick Pulatie (originally published at Implode-O-Meter Blog)

Foreclosure Filings Spike Upward Nationwide

Over the last year, I have been watching the HAMP modification program with great interest. I have wanted to believe that the Federal Government would actually put into place a loan modification program that would help homeowners, though I knew that this was likely false hope. The results are now in, at least in my opinion.

HAMP is a fraud. Nothing else can be said otherwise. The Government has once again put into place a program that will not help homeowners. Instead, HAMP modifications will end up postponing homes foreclosures for a period of time for modified loans, but, most will end up losing the home in the end, except for a “very” lucky few who actually make it. I cannot believe that the Government expected anything other than the HAMP program would end up being a failure. To understand what to expect, we must look inside the numbers.

In March, the February results for HAMP were released. Key points of the update were:

Foreclosed Homes Sold At Denver Auction

* 1.3 million total trial modification offers.
* Almost 1.1 million trial modifications have begun since the program began.
* 72,000 new trial modifications started in February.
* More than 170,000 permanent modifications granted to date.
* 91,800 other permanent modifications offered and awaiting acceptance.
* 0.9% permanent modifications cancelled
* 8.8% total modifications cancelled, 88,663 total

If one looks at these numbers and compares the…
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Welcome Our New Sponsor – The Predatory Lending Association

Philstockworld is very proud to announce we have sold out and will now be sponsored by the Predatory Lending Association.

As it says in their mission statement – the PLA is dedicated to extracting maximum profit from the working poor by increasing payday loan fees and debt traps. The working poor are an exciting, fast growing demographic that includes: military personnel, minorities, and most of the middle class.  In 2006, American families spent one in seven of their take home dollars on debt payments. The Predatory Lending Association is the only organization dedicated to helping you, the top 10% investors, capture these dollars.


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Credit Suisse Deemed “Predatory” Lender, Gets The Equitable Subordination Axe

Courtesy of Tyler at Zero Hedge

Credit Suisse Deemed "Predatory" Lender, Gets The Equitable Subordination Axe

In the latest twist of the Yellowstone Club bankruptcy saga, presiding Judge Kirscher ruled that investment bank Credit Suisse which had lent $375 million in first lien debt to the bankrupt club had engaged in predatory lending, and the resulting lien backing the loan would become subordinated equitably subordinated to virtually everyone including unsecured creditors. Can’t be good for those recovery prospects. According to court filings, the smart CS lending syndicate had lent the money to Yellowstone without even requesting audited financials, among other "curious" decisions, all in the pursuit of the $7.5 million lender fee.

Here is what Kirscher had to say about this rare precedent:

"The only plausible explanation for Credit Suisse’s actions is that it was simply driven by the fees it was extracting from the loans it was selling, and letting the chips fall where they may. The only equitable remedy to compensate for Credit Suisse’s overreaching and predatory lending practices in this instance is to subordinate Credit Suisse’s first lien position to that of CrossHarbor’s super-priority debtor-in-possession financing and to subordinate such lien to that of the allowed claims of unsecured creditors."

What is hilarious is the disclosure of how CS determined the transaction fee in YC case: turns out the ultimate fee depended, literally, on a coin toss: CS had asked for a 3% transaction fee, while Timmy Blixseth wanted 2%, and the two settled the matter by flipping a coin to decide the final rate (Tim won). It will be interesting, as many more comparable criminal cases emerge and like disclosure swims to the surface, just how underwriters sat down with issuers in the current market squeeze to determine not only what the fees should be (roll of the die? tea leaves?), but how to skrew the shorts as much as possible. We will be waiting and watching.


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Zero Hedge

Two More Cops Shot After Yesterday's Brutal New York "Execution"

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Just a day after the premeditated execution of two NYPD officers in New York by a deranged, suicidal psychopath, two more police officers have been shot in America today. In St.Louis, an off-duty officer was shot multiple times and remains in critical condition while in Tarpon Springs, Florida, 45-year-old officer Charles Kondek - a 17-year-veteran and father of 5 children - was shot and killed early Sunday morning.

As Fox Boston reports,

Florida authorities say a police officer was shot and killed in Tarpon Springs early Sunday.

 

...



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Phil's Favorites

OPEC Blames Speculators, Non-OPEC Countries, US Frackers for Oil Price Crash

Courtesy of Mish.

OPEC is pointing the finger at speculators as well as Non-OPEC countries, but especially US shale producers for the crude price crash.

Let's explore that idea in a series of charts. But first let's take a look at the allegation.

The Wall Street Journal reports Gulf Oil Exporters Blame Non-OPEC Producers for Glut.
Gulf oil officials on Sunday defended OPEC’s decision last month to keep its production ceiling intact, blaming producers outside of the group for the glut of oil on the market that has depressed prices.

Speaking at an energy conference in Abu Dhabi, Saudi Oil Minister Ali al-Naimi blamed a lack of coordination from producers outside the Organization of the Petroleum Exporting Countries&#...



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Pharmboy

2015 - Biotech Fever

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

PSW Members - well, what a year for biotechs!   The Biotech Index (IBB) is up a whopping 40%, beating the S&P hands down!  The healthcare sector has had a number of high flying IPOs, and beat the Tech Sector in total nubmer of IPOs in the past 12 months.  What could go wrong?

Phil has given his Secret Santa Inflation Hedges for 2015, and since I have been trying to keep my head above water between work, PSW, and baseball with my boys...it is time that something is put together for PSW on biotechs in 2015.

Cancer and fibrosis remain two of the hottest areas for VC backed biotechs to invest their monies.  A number of companies have gone IPO which have drugs/technologies that fight cancer, includin...



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Chart School

Can you make a living trading Springs and UpThrusts?

Courtesy of Read the Ticker.

We tell the truth about trading springs and upthrusts, no holding back!

More from RTT Tv

NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net Investing Quote...

..“The market always tells you what to do. It tells you: Get in. Get out. Move your stop. Close out. Stay neutral. Wait for a better chance. All these things the market is continually impressing upon you, and you must get into the frame of mind where you are in reality taking your orders from the action of the market itself — from the tape.”…

Richard D. Wyckoff
.."Markets are constantly in a state of unce...



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All About Trends

Mid-Day Update

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Insider Scoop

#PreMarket Prep Guest List For The Week Of December 22, 2014

Courtesy of Benzinga.

Brian Kelly, Curtis Erickson and Jerremy Newsome will all be guests on this shortened week of Benzinga's #PreMarket Prep broadcast, sponsored by Nadex.

Be sure to tune in at 8:00 am EST Monday-Friday here to tune in to the exciting show.

Don’t miss our #FedForecast2015 event either!

You can learn more about that here.

Monday, December 22, 8:35 a.m.

Jonathan Corpina (...



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Digital Currencies

Chart o' the Day: Don't "Invest" in Stupid Sh*t

Joshua commented on the QZ article I posted a couple days ago and perfectly summarized the take-home message into an Investing Lesson. 

Chart o’ the Day: Don’t “Invest” in Stupid Sh*t

Courtesy of 

The chart above comes from Matt Phillips at Quartz and is a good reminder of why you shouldn’t invest in s...



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OpTrader

Swing trading portfolio - week of December 15th, 2014

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Sabrient

Sector Detector: Energy sector rains on bulls' parade, but skies may clear soon

Reminder: Sabrient is available to chat with Members, comments are found below each post.

Courtesy of Scott Martindale of Sabrient Systems and Gradient Analytics

Stocks have needed a reason to take a breather and pull back in this long-standing ultra-bullish climate, with strong economic data and seasonality providing impressive tailwinds -- and plummeting oil prices certainly have given it to them. But this minor pullback was fully expected and indeed desirable for market health. The future remains bright for the U.S. economy and corporate profits despite the collapse in oil, and now the overbought technical condition has been relieved. While most sectors are gathering fundamental support and our sector rotation model remains bullish, the Energy sector looks fundamentally weak and continues to ran...



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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's this week's Stock World Weekly.

Click here and sign in with your user name and password. 

 

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Option Review

SPX Call Spread Eyes Fresh Record Highs By Year End

Stocks got off to a rocky start on the first trading day in December, with the S&P 500 Index slipping just below 2050 on Monday. Based on one large bullish SPX options trade executed on Wednesday, however, such price action is not likely to break the trend of strong gains observed in the benchmark index since mid-October. It looks like one options market participant purchased 25,000 of the 31Dec’14 2105/2115 call spreads at a net premium of $2.70 each. The trade cost $6.75mm to put on, and represents the maximum potential loss on the position should the 2105 calls expire worthless at the end of December. The call spread could reap profits of as much as $7.30 per spread, or $18.25mm, in the event that the SPX ends the year above 2115. The index would need to rally 2.0% over the current level...



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Market Shadows

Official Moves in the Market Shadows' Virtual Portfolio

By Ilene 

I officially bought 250 shares of EZCH at $18.76 and sold 300 shares of IGT at $17.09 in Market Shadows' Virtual Portfolio yesterday (Fri. 11-21).

Click here for Thursday's post where I was thinking about buying EZCH. After further reading, I decided to add it to the virtual portfolio and to sell IGT and several other stocks, which we'll be saying goodbye to next week.

Notes

1. th...



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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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