Join Date: Sep 2015
Thanked 38 Times in 22 Posts
The P&P Magic Trick = How to make Government Funds Dissapear
Following The Flow 1st Level = FHA/FHLMC/FNMA/VA = Insurer / Guarantee Loans against default. Defaulted loans are reimbursed by these Gov Insurers at cost of the U.S Tax Payer.
A Concern = Upon conveyance the properties are resold by the insurer if possible, “There is a possibility of profit, but the more likely scenario is a loss which is reimbursed by the U.S Tax Payer.
The Reality = Are prolonged P&P cycles a way for those who received bailout money to reimburse themselves for those costs? Thus the tax payer gets 2X the hit?
2nd Level = Originators / Servicers / Banks. Loans are originated sold and so on. Upon Default P&P aspects are reimbursed by 1st level, the loan amounts are insured & all P&P costs are added to the defaulted loans.
A Concern = at the second level is this – According to the HUD Mortgagee Handbooks a Mortgagee cannot profit from these defaulted loans – but is the second level charging interest and accumulating on defaulted mortgages? When these P&P costs are tacked onto the loans is interest then being charged on the new amounts? If interest is being charged that would that technically be considered profiting from these loans?
The Reality = There is no concerns at this level because regardless of what happens there is always a contractors insurance to foot the bill of any mistake.
3rd Level – National Asset Management Firms – These firms distribute work for the 2nd level in order to ensure conveyance requirements are met. They receive a percentage “Discount for the P&P Services Performed.”
A Concern = Not enough adequate organization to ensure that tax payer concerns are met – Is money be wasted on unnecessary tasks? Are assets properly maintained? In these multiple level orgs is there enough quality control to ensure that
The Reality = Quality control does not exist. These firms bring on children who had a choice between the office or Mcdonalds. There is no responsibility other than updating facebook statuses, sending tweets, and thinking that is has to be 5 o’clock somewhere. So we put our faith in properly performing these services and billings in the hands of someone who decided they would rather sit at a computer instead of putting together a hamburger?
4th Level – Regional Asset Management Firms – This does not include those firms who truly are based regionally. This only includes those regional firms whom think its fun to play lets sub from the nationals and then play out an extortion scheme.
A Concern = A lot of taxpayer money disappears at this level – but does anyone know where it goes?
The Reality = The greed and decision making skills of this type will probably be felt by good companies when **** hits the fan. There really was not a good reason to allow a 4th level to provide the same services of the 3rd level.
5th Level – The Laborer Performing Services
The concern = When these parties get burned by the 4th or 3rd levels is it not costing the U.S Taxpayer additional money? As in food stamp programs / health insurance programs etc?
The Reality = The U.S Taxpayer, Gov Agencies, and the laborer get burned. My personal belief is that Guantanamo Bay would be a good place to help determine where all this taxpayer money disappears to.