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Schumpeter Reincarnate


Joined: 24 May 2008
Posts: 217400

Re: Discussion on FHA Seller-Funded Down-payment Outfit Sues ML
PostPosted: Thu Oct 09, 2008 4:00 am Reply with quoteBack to top

http://ml-implode.com/viewnews.....nceCr.html
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michaelblomquist
Flash in the pan


Joined: 01 Jan 1970
Posts: 53

Global Direct, PIN, Fraudsters
PostPosted: Thu Oct 09, 2008 6:06 pm Reply with quoteBack to top

Time to rally the troops, especially those in Maryland.

Fraud, deception and entitlements created this crisis and more of the same should NOT be tolerated.

As of October 1, 2008 the FHA did away with the seller assisted programs because the program was a huge failure. Unless borrowers had skin in the game they walked; in addition if you can't save 3% for a downpayment how will you be able to handle any unforeseen expenses.

Why are GLOBAL DIRECT SALES, LLC, PENOBSCOT, INDIAN NATION, CHRISTOPHER RUSSELL and RYAN HILL still advertising such a program on October 9, 2008?

http://www.pinfha.org/Programs.html

Ironically the third cause of action complains of unfair business practices, but continuing to advertise seller assisted down payments are unfair business practices. Potential borrowers will be captured and directed to the Plaintiff's business affiliates. Can you say bait and switch?

Call, fax, email representative Donna Edwards (Maryland Rep)
http://donnaedwards.house.gov/contact.shtml
and demand she restrains the Plaintiff for false and deceptive advertising.

Congresswoman Donna Edwards
(301) 773-4094
9200 Basil Court
Suite 221
Largo, MD 20774

Washington, DC (202) 225-8699
Fax: (202) 225-8714
Email: 4mddistrict@mail.house.gov

You should also contact the following an make sure to include the link
http://www.pinfha.org/Programs.html

1)HUD
http://www.hud.gov/offices/hsg.....rcectr.cfm
(800) 225-5342
hud@custhelp.com

2)FTC
http://www.ftc.gov/ftc/contact.shtm
Report Violations
* Online: Use our secure complaint form.
* Phone: Call our toll-free Do Not Call helpline: 1-888-382-1222; TTY: 1-866-290-4236
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Aristotle
Nitroglycerin


Joined: 05 Dec 2007
Posts: 594
Location: On a sand dune, sipping a cold soda

Very Well Written Pleadings for Defendants
PostPosted: Fri Oct 10, 2008 2:32 am Reply with quoteBack to top

Whenever I read pleadings, I always look at them to see if they are easy to read and understand.

The pleadings for the Defendants pass the readability test.

Now, all of us will just wait and see if they work.

The filing of this lawsuit illustrates the need for the next Congress to pass an Anti-SLAPP statute like California currently has.

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Aristotle

As Yogi Berra said "It's like deja vu all over again."
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Dollar_guy
Papermint Schnapps


Joined: 28 Mar 2007
Posts: 3007
Location: Los Angeles. CA

Re: Global Direct, PIN, Fraudsters
PostPosted: Fri Oct 10, 2008 5:11 am Reply with quoteBack to top

michaelblomquist wrote:
Time to rally the troops, especially those in Maryland.

Fraud, deception and entitlements created this crisis and more of the same should NOT be tolerated.

As of October 1, 2008 the FHA did away with the seller assisted programs because the program was a huge failure. Unless borrowers had skin in the game they walked; in addition if you can't save 3% for a downpayment how will you be able to handle any unforeseen expenses.

Why are GLOBAL DIRECT SALES, LLC, PENOBSCOT, INDIAN NATION, CHRISTOPHER RUSSELL and RYAN HILL still advertising such a program on October 9, 2008?

http://www.pinfha.org/Programs.html

Ironically the third cause of action complains of unfair business practices, but continuing to advertise seller assisted down payments are unfair business practices. Potential borrowers will be captured and directed to the Plaintiff's business affiliates. Can you say bait and switch?

Call, fax, email representative Donna Edwards (Maryland Rep)
http://donnaedwards.house.gov/contact.shtml
and demand she restrains the Plaintiff for false and deceptive advertising.

Congresswoman Donna Edwards
(301) 773-4094
9200 Basil Court
Suite 221
Largo, MD 20774

Washington, DC (202) 225-8699
Fax: (202) 225-8714
Email: 4mddistrict@mail.house.gov

You should also contact the following an make sure to include the link
http://www.pinfha.org/Programs.html

1)HUD
http://www.hud.gov/offices/hsg.....rcectr.cfm
(800) 225-5342
hud@custhelp.com

2)FTC
http://www.ftc.gov/ftc/contact.shtm
Report Violations
* Online: Use our secure complaint form.
* Phone: Call our toll-free Do Not Call helpline: 1-888-382-1222; TTY: 1-866-290-4236


I just e-mailed.......

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FHABob
Flash in the pan


Joined: 10 Oct 2008
Posts: 66

Re: Discussion on FHA Seller-Funded Down-payment Outfit Sues ML
PostPosted: Fri Oct 10, 2008 6:31 pm Reply with quoteBack to top

Downpayment assistance programs are still allowed by FHA. It's seller funded programs that are not permitted. So a state funded program (Arizona's Housing Dept's DPA gives up to 10% towards the down, for instance) and progams administered by Indian Tribes or other qualifying entities are just fine.

As for the lawsuit mentioned here, I think that congress will bring back seller funded DPA's very soon. The deal has already been made between the House Dems (who understand how losing SFDPA's hurts minority applicants hardest) and HUD (who lost risk based MIP premiums as part of the reform act). It's just a matter of getting the bill passed. The current crisis has left little time for this matter, but it will get done and either Bush or Obama will sign it.
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poorprocessor
C-4


Joined: 06 Jun 2008
Posts: 1040
Location: on a planet far far away..or so I wish

Re: Discussion on FHA Seller-Funded Down-payment Outfit Sues ML
PostPosted: Sat Oct 11, 2008 1:46 am Reply with quoteBack to top

Since Nehemiah has even given up..

Is Nehemiah Funding Gifts After October 1st?

The passage of H.R. 3221 eliminates privately-funded downpayment assistance for millions of working class American's as of October 1, 2008. However, per the specific language of the law, Nehemiah is lawfully able to continue funding DPA gifts for FHA loans where the borrower was credit approved per FHA guidelines on or before September 30, 2008.

Nehemiah will require that the lender certifies that the borrower was credit approved per FHA guidelines on or before September 30, 2008. Nehemiah will continue to fund certified gifts through November 28, 2008, at which time The Nehemiah Program will cease operations.

For gift funds requests with closing/funding dates after September 30, 2008, the FHA lender must certify to Nehemiah that mortgagor credit approval, in accordance with all applicable FHA requirements, was granted by that lender before October 1, and that such credit approval is and will remain in effect through closing.

http://www.getdownpayment.com/updates/


I think not...

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E.S.
Dud?


Joined: 30 Dec 2008
Posts: 5

Michael Bloomquist is a dummy
PostPosted: Wed Dec 31, 2008 6:02 pm Reply with quoteBack to top

Hey Michael Blomquist-
Get off of your soapbox- and get your info straight. While defaults and EPD's hurt the industry and had a mild imnpact on the overall economy- credit default swaps is what sank the ship. I don't have time to use monosylabic (look it up dummy) words to explain how and why it occured- but at least stop playing the "subprime, alt-a lenders caused this" card. It's as contrived as your hack email. This site has done a lot of damage to banks, and right or wrong, it will be a target. Free speech forever- but more importantly Mike- intelligent thought first. Oh- one last thing- know what caused this mess? The American public trying to keep up with the neighbors. If you're buying a 900k home and making only 80k in reality- you're an idiot and you deserve what happens to you. If you're buying a 1.5 mil home on a pay option and your mortgage payment is only 4k a month- do some due diligence and figure out that your paying a neg am. Buyer beware! Do you really think Mike that everyone in foreclosure is the victim of a scam or fraud? Are you really that naive and dumb? I'm thinking yes- but suprise me.
PS- feel free to make fun of my spelling, etc- I had to type this fast since I have a crazy busy job that pays me the money I made as a subprime AE in 05.

FHABob- right on man- you're a smart cat- I'm being for real.
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Do_the_math
The WhistleBlower


Joined: 14 Mar 2007
Posts: 2564
Location: Groovy Town

Re: Michael Bloomquist is a dummy
PostPosted: Wed Jan 14, 2009 7:21 pm Reply with quoteBack to top

E.S. wrote:
Hey Michael Blomquist-
Get off of your soapbox- and get your info straight. While defaults and EPD's hurt the industry and had a mild imnpact on the overall economy- credit default swaps is what sank the ship. I don't have time to use monosylabic (look it up dummy) words to explain how and why it occured- but at least stop playing the "subprime, alt-a lenders caused this" card. It's as contrived as your hack email. This site has done a lot of damage to banks, and right or wrong, it will be a target. Free speech forever- but more importantly Mike- intelligent thought first. Oh- one last thing- know what caused this mess? The American public trying to keep up with the neighbors. If you're buying a 900k home and making only 80k in reality- you're an idiot and you deserve what happens to you. If you're buying a 1.5 mil home on a pay option and your mortgage payment is only 4k a month- do some due diligence and figure out that your paying a neg am. Buyer beware! Do you really think Mike that everyone in foreclosure is the victim of a scam or fraud? Are you really that naive and dumb? I'm thinking yes- but suprise me.
PS- feel free to make fun of my spelling, etc- I had to type this fast since I have a crazy busy job that pays me the money I made as a subprime AE in 05.

FHABob- right on man- you're a smart cat- I'm being for real.


Talk about being on a soap box. There are a lot a reasons for the economic unraveling- much of which is employment related- however, there is no doubt that the financial institutions and political corruption are the root of the problem.

Basically any loan program that does not employ sound underwriting criteria or engages in high risk lending is subprime. A FHA loan with a seller funded down payment, large increase to payment without a demonstrated ability to save, high debt ratio, no residual income test, little to no reserves, and no skin in the game and layering of multiple risks is akin to a subprime loan- even if the credit score is in the high 700.

Seller funded DPA is abusive because it circumvents FHA guidelines that prohibit sellers from providing the funds for the down payment. It promotes laundering of down payments from the seller and adds to the fees and costs as SFDPA grants are not free. Consider that loans involving SFDPA have a higher delinquency and EPD rate which absolutely has a negative impact on both the economy and social fabric of the communities that are impacted.

While SFDPA proponents cite a negative impact to minorities from loss of SFDPAs, the proposals for risk based MI under H.R. 6694 would create a barrier for the socioeconomically challenged and minorities that are typically not favored by credit scoring. The credit score requirements could serve as a barrier for borrowers who do not play the "credit game" even when they save their own down payment. According to the infamous Brill report, H.R. 6694 could displace 48% of the borrowers utilizing SFDPA according to their data sampling. I wonder how many of these borrowers were minorities?

While you say that this site has done a lot of damage to banks, you fail to mention the damage that banks did to the economy and country as a whole. The fact that this site calls the banks out on irresponsible lending practices that threaten the solvency our country is the very point of why free speech needs to be protected.

Fact: the lending industry created programs that did not require verification of borrower capacity.

Fact: the lending industry created 100% programs that did not require employment, asset, or income verification.

Fact: the industry generated programs that were more interested in credit scores than borrowers ability to pay.

Fact: the industry has stretched debt ratios into the 50's and 60's.

Fact: the industry generated AVM and other statistical valuation models and waived actual appraisals on several programs including 100% CLTV purchase loans.

Fact: the industry promoted programs that were extremely risky and difficult for consumers to understand and mass-marketed these programs to inappropriate borrowers while offering brokers and loan officers ridiculous incentives.

Fact: the failure of these programs should not have been a surprise to anyone regardless of the ninja math that was used to skew statistics to justify reliance on credit scores rather than common sense underwriting guidelines.

Fact: numerous banks and institutions have failed as a result of their own irresponsible programs and not due to the behavior of consumers as you would like to think.

If a lending institution gives someone who is only making $80k $900k to purchase a home (on a non recourse loan), exactly who is stupid here?

If an institution lends 1.5 mil and only requires a $4000k payment, exactly who is being stupid?

While I will agree that not every borrower is a victim of scam and fraud, I will say that the citizens of the United States are all victims of scam and fraud at the hands of unscrupulous institutions.

There has been limitless fraud and abuse. Arranging a loan which the borrower does not have the resources to repay for the sake of making a buck is abusive.

In the immortal words of Trojan: Fight On, MichaelBlomquist!

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rocketrob
Dyn-o-mite!


Joined: 18 Mar 2008
Posts: 405

Re: Discussion on FHA Seller-Funded Down-payment Outfit Sues ML
PostPosted: Tue Feb 17, 2009 11:18 pm Reply with quoteBack to top

ES:
What sank the ship was the fact that the banks could have said "NO" to millions of loans... get YOUR facts straight.

Michael Blomquist, you are a TRUE American hero!
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michaelblomquist
Flash in the pan


Joined: 01 Jan 1970
Posts: 53

FHA DPA
PostPosted: Wed Feb 18, 2009 12:21 am Reply with quoteBack to top

I don't know about being a hero, but I do know there were millions of scum bags that took advantage of their positions to self enrich. Millions who should be disgorged and indicted.

Why on earth so many have not been convicted for their crimes of rampant fraud is beyond me? Inflating a borrowers income with or without their knowledge is no different than doctoring income documents.

Creating a scheme whereby millions could do this with NO over-sight is a complete failure of our government. The more time progresses with no meaningful arrests continues to illustrates the governments' complicity.

E.S. I agree the CDS, CDOs and other derivatives are the real problems, but they were/are derivatives based on home loans. It is well established that at the foundation of the crisis were/are fraudulent loans. Without the promise of huge income streams from mortgages this could have NEVER happened.

E.S. If you find comfort in believing the problem was so big that all of your fraudulent originations did not have an impact on the crisis; go find out where your clients are now.
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