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

Comcast, AT&T Set To Become World's Most Indebted Companies With Over $350BN In Debt

Courtesy of ZeroHedge. View original post here.

At a time when the IMF estimates that more than 20% of the world's companies would be unable to cover their interest payments if interest rates moved sharply higher, Comcast and AT&T are poised to become the most indebted companies in the world following media megadeals that leave the two companies with little room to maneuver if profits fail to materialize, according to the ...



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Phil's Favorites

These Are the Goods

 

These Are the Goods

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Articles

What I thought was a major career failure turned out to be the best thing that ever happened to my career ~ by Blair duQuesnay

Learn to love the micro-stakes arena ~ by Tommy Tranfo

If things like research department headcount or manager tenure had any predictive value, then you could throw away your Bloomberg terminal and just use LinkedIn ~ ...



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Chart School

Bitcoin Update - Testing support on cycle low

Courtesy of Read the Ticker.

Due to popular demand, bitcoin review.

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Sure fundamentals do matter, and so does market timing (entry, stops and exit), here at readtheticker.com we believe a combination of Gann Angles, Cycles and ...

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Digital Currencies

BIS Blasts Cryptos In Special Report: "Beyond The Hype"

Courtesy of Mike Shedlock, MishTalk

The BIS blasts cryptos over scaling issues, energy, and trust. The BIS is correct. Cryptos are fatally flawed as money.

A Bank of International Settlements (BIS) report examines cryptocurrencies in depth. The study, called "Looking Beyond the Hype" investigates whether cryptocurrencies could play any role as money.

Bloomberg, Reuters, and the Bitcoin Exchange guide all have articles on the report but not one of the bothered to link to it.

After a bit of digging, I found the crypto report is part of an upcoming BIS annual report. The BIS pre-released the crypto report today (as chapter 5).

Here's a l...



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Insider Scoop

4 Online Trading Shows You Should Watch To Start Your Day

Courtesy of Benzinga.

For most people, the stock market’s regular session (9:30 a.m. - 4 p.m. ET) is the only time they can trade. But there’s a whole other world of action taking place before and after each weekday session.

The pre-market and after-hours sessions (4-9:30 a.m. and 4-8 p.m. respectively) offer not only a time for some experienced individuals to trade, but also the chance to learn about the vast majority of corporate news the moment it’s released.

Because all that market...



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Biotech

Mind molding psychedelic drugs could treat depression, and other mental illnesses

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

 

Mind molding psychedelic drugs could treat depression, and other mental illnesses

By agsandrew/shutterstock.com

Courtesy of David E. Olson, University of California, Davis

It seems that psychedelics do more than simply alter perception. According to the latest research from my colleagues and me, they change the structures of neurons th...



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ValueWalk

Buffett At His Best

By csinvesting. Originally published at ValueWalk.

Bear with me as I share a bit of my history that helped me create SkyVu and the Battle Bears games. The University of Nebraska gave me my first job after college. I mostly pushed TV carts around, edited videos for professors or the occasional speaker event. One day, Warren Buffet came to campus to speak to the College of Business. I didn’t think much of this speech at the time but I saved it for some reason. 15 years later, as a founder of my own company, I watch and listen to this particular speech every year to remind myself of the fundamentals and values Mr. Buffett looks for. He’s addressing business students at his alma mater, so I think his style here is a bit more ‘close to home’ than in his other speeches. Hopefully many of you find great value in this video like I have. Sorry for the VHS...



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Kimble Charting Solutions

The Stock Bull Market Stops Here!

 

The Stock Bull Market Stops Here!

Courtesy of Kimble Charting

 

The definition of a bull market or bull trends widely vary. One of the more common criteria for bull markets is determined by the asset being above or below its 200 day moving average.

In my humble opinion, each index above remains in a bull trend, as triple support (200-day moving averages, 2-year rising support lines, and February lows) are still in play ...



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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)

 

"If you want to fundamentally reshape society, you first have to break it." ~ Christopher Wylie

[Interview: Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...



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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

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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Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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All About Trends

Mid-Day Update

Reminder: Harlan 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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About Phil:

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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