Think Big Work Small?s Line by Line Response to The FDIC?s Accusations
On Feburary 7th Frank & Brian sat down to write and produce a video that outlined the absurdly lucrative and onesided “loss share” agreement the FDIC made with One West Bank.
Short URL: http://www.thenichereport.com/?p=314
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on Feb 26 2010. Filed under Uncategorized.
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Think Big Work Small, who I had never heard of before this story broke, lost a lot of credibility with this story and their rebuttal to the FDIC’s rebuttal in my opinion.
Agree with Greg. There is no real rebuttal here. Playing with semantics is the very spin they accuse the FDIC of. Have yet to see them back up claims that this sweet heart deal will ever even go into affect. Where are the numbers? Perhaps some neutral organization will actually put things into perspective.
At this point we don’t know who is right or wrong or if there is even right or wrong to consider.
How many loans are covered under the agreement? How many loans would have to be foreclosed upon to reach this level of loss.
There is simply no meat to this accusation. Get solid facts and then come out with a story.
If these subsets of our government were indeed forthcoming and not driven by special interests and reported clearly and statistically accurately, maybe, just maybe some confidence in our government could be regained and just maybe profits could be returned to the neighborhood home owners trying to sell their homes.
Maybe, but I’m not holding my breath. The government is no longer accountable to the people it is supposed to serve. The flip side of that sorry truth is that most folks just don’t care enough to do anything and as a result, get the government they deserve.
Banks want exclusive control of real estate, real estate sales and real estate financing. With our government’s help they are well on their in achieving their ‘homeownership’ goals.
Mr. Cowart what planet are you on? The FDIC has made a sweetheart with George Soros a radical lib who funds all radical lib democrats. See moveon.org etc. This is payback for funding Obama. Stop drinking the Kool Aid and wake up. America is drowning in debt and these types of deals are why.
Sorry folks, I’m with TBWS on this one. Where there’s smoke there’s generally fire. I’ve seen first hand the low foreclosure sales prices from OneWest Properties and it does make one wonder about their true intentions. Even if the FDIC is right and this wasn’t a sweetheart deal, where’s that transparent Hope and Change that was voted for? I seem to remember some candidate discussing the most transparent administration in history but that hasn’t transpired as of yet. My best educated guess is that TBWS is on to something and there’s much more here than at first glance.
as soon as i saw the video on TBWS, i sent it to both Glen Beck , Rush and even the WhiteHouse’s website, but have heard no mention.. why hasen’t the media or the president commited on this. i think this needs to be made public. i’ve said this before and now again.. “If we don’t approve of what they are spending our tax money on… why don’t we all stop sending it to them for a while and see if it stops”
I agree with Mr. Johnson, all you idiots out there need to open your eyes, our country is drowning in debt.
I think our TBWS guys are “right on the money” and the cat is now out of the bag. The Treasury Dept announces today that it is considering reviewing ALL HAMP LOAN MODS before allowing foreclosures. It’s not official yet but here is evidence of the that fallout: I am a former mortgage loan officer who now operates in the Loss Mit arena. I’ve had clients with other lenders with low HAMP conversion percentages just like Indy Mac and all of a sudden today I get “two” client notifications of loan mod approvals after both of those clients had been “denied” 2-3 times each in the last 8 months. I’m going to bet everyone on this web site that I’ll have an Indy Mac/One West clients Loan Mod done by the end of next month after his was denied three times last year. The TBWS boys have pulled the TRIGGER and earned me thousands and saved my customers hundreds of thousands this week alone and STOPPED imminent foreclosures.
You think the lenders want to work with people through HAMP? Wake up. I do BPOs for lenders/servicers. All day long every day. Tghere are thousands upon thousands of people trying to have their loans modified. I hear the SAME stories 10 times a day. “yes, weve been in the mod process for about 8 months now and they just turned us down! We are 5 months behind because we were told that if modified , they would place the pmnts back into the loan. Upon denial we called the FC dept at our lender and were told that they wanted the entire back due paid NOW or they would take the home. No negotiating. Many of these people had lost jobs but were BACK WORKING and could make payments from now on, but didnt have the back due. Instead of working with the people to have a paying loan in their portfolios, the banks WANT the properties back. Why? They never used to want REO—why now? I think you all know why and the public should also know all about this. Nobody stands a chance if they have been down on their luck.
Here s the follow up JUICE for our TBWS guys.
George Soros is a ?convicted felon?.
Having been in the mortgage lending business myself I have had to be qualified for licensing in dozens of states. Every single one of those states prohibits ?convicted felons? from operating in any area of the industry in those states. They cannot be loan officers, managers, not floor sweepers, have any direct ownership, they cannot be corporate officers, they cannot be on boards of directors, they cannot service loans, they cannot negotiate with Fannie Mae, Freddie Mac, HUD or the FDIC in any way shape or form EVER! This has been part of the rules and regs in most states for over a decade and perhaps longer.
That is your KILL JOY guys. GO FOR IT!
By the way OUTSTANDING JOB on behalf of all taxpayers and Homeowners nationwide.
THANK YOU!
Greg, just the opposite. I believe TBWS’s original video was great and, in my opinion, their response to the FDIC gained them credibility.
Mr Cowart,
Are you serious?
Mr Steele,
Have you even watched the video? I think they do a very good job of depicting the numbers. I encourage you to have some “meat” to your comments.
Thanks TBWS! Keep it up. You have the loudest voice for us at this point. Please keep using it.
Has anyone else actually read the Shared Loss Agreement? TBWS was right on the big picture but way off on the calculations.
The big problem (which FDIC did not mention) is that losses are not measured from what One West paid but from the note balance. But the bottom line is that if every loan went to zero (worst case), One West would receive $74.50 for every $70.00 it paid, guaranteed by the U.S. (at a time when the 1-yYr T-bill pays 0.37%!).
It is a shame that the technical errors detracted from an otherwise valid expose of this genuine sweetheart deal.
Way to go TBWS! The apathtic are waking up, keep the alarm going . . .
After reading Frank and Brian’s rebuttal to the FDIC response, I scrolled down just slightly to see the first two comments. If I were a betting man I’d bet both Greg and Steele were either employees of the FDIC or One West. What a couple of goons! We got your back Frank and Brian! Keep it up you guys are absolutely awesome.
So, I guess the only question I have is ? how do we know who?s telling the truth about this?
Sheila Bair lost her credibility, in my opinion, when simultaneously, she worked at the bailout of Bank of America (45B) as Chairman of the FDIC ? while in process of getting two sweetheart mortgages for herself with B of A. She didn?t even bother to take the time to get a waiver from the FDIC until last month when it hit the papers. And of course, it didn?t hit the national media ? at all ? until some small Philadelphia newpaper brought it out into the light of day.
So, I guess I?d put my money on Brian and Frank. They have nothing to gain ? financially ? for spreading misinformation about FDIC, IndyMac or SunWest Bank. But they do get a lot of credit for bringing this slimy bit of news out into the light of day of the general public. And, they deserve every bit of it. I think they should run for office ? in the new administration that morphs out of the elections this year.
GO, FRANK AND BRIAN!!!
There has to be more to the loss-share agreement then we are being told, otherwise no rational institution would be dumping properties like OneWest Bank. They are willing to take huge immediate losses over reduced payment streams from people who have verified income. I have seen the details on 2 OneWest Bank foreclosure scenarios. On both of them the borrowers were able and willing to make a reduced payment based on a 3% interest rate, which fell within the 31% DTI (debt) ratio guideline. In each case OneWest decided to move forward to foreclosure sale. On the 1st one they took a $309,000 1st and sold the property for $188,000!
On the 2nd one they told the borrower her loan modification was approved, got her to make 2 months’ payments and then reneged. Faced with an imminent sale date, she has arranged a short sale. OneWest just told her that they have approved the sale, taking a $471,000 loan and selling the property for $275,000.! The opening bid at the foreclosure sale was going to be a little higher than that. There are lots of other similar examples going around. Let’s see who can connect the dots…
STOP APOLOGIZING and NO MORE REBUTTALS!
Timing is everything with this Treasury Dept lender scare announcement. It is my opinion that the TBWS guys hit the HOT BUTTON and that?s trickling down with other malfeasant lenders.
SEA CHANGE COMING NEXT MONTH IN LOAN MODS
Last week, the Fed raised rates by .25, Housing news was horrible, REO Shadow inventory release announcements of 3 million foreclosures to be listed on the market was announced, Expectations of another 2-3 million foreclosures this year was projected, News of Goldman Sachs law breaking in Greece collapse, Timothy Geithners personal malfeasance in the AIG negotiation revealed in committee etc.
March is the end of the first calendar quarter of the year and politicians are trying to mitigate incredibly horrible end of 1st quarter news in an election year.
Drive that GEORGE SOROS IS A FELON stake through their hearts with another video next month. BLOW THE LID OFF THIS FDIC and HAMP SCAM COMPLETELY!
When you have the enemy on the run you have to unload the HOWITZERS!
you guys keep up the good work. if onlyh you had 10% of the staff and lawyers the FDIC had, this story would be on the national news. as “proxy’s”, let’s all throw the bums out at each and every upcoming election…starting with you folks in Barneyville. This is why so many are retiring from Congress…either because they are sick of this crap or because they are in the cesspool up to their elbows.
When they speak of the $2.5 billion loss threshold, are they talking about actual real dollar loss to One West or the phantom loss based on the original loan amounts? If it is the latter,it would seem they would be playing with “House Money” and have every incentive to dump the homes at low prices.
As a small business owner the banks charge my account for FDIC insurance and is is itemized as a charge on the bank acount analysis. Therefore the consumer is paying for FDIC.
Here’s the story and you make the decision.
On July 11, 2008 the Office of Thrift Supervision seizes IndyMac Bank, FSB and strips the assets from IndyMac Bancorp Inc. (This, after knowingly and willfully allowing the Officers of IndyMac to commit fraud related to reserve requirements.) At the same moment FDIC is named “conservator” and establishes IndyMac Federal Bank, FSB. The shareholders of IndyMac Bancorp are wiped out in bankruptcy and can make no claim to the assets of the failed thrift although many were stake-holders in the notes and mortgages. The Federal Home Loan Bank is made whole on a 600 million dollar loan and nobody else can sue to recover damages, (little guy screwed again). The FDIC, as conservator operates this new bank for a period of nine months. (Never once goes to the actual mortgagors and offers to let them refinance out of the loan at a discount or purchase their own Note at a discount higher than what Dell, Soros Mnuchin and Paulson paid for them). On March 06, 2009 the FDIV creates a new Company called IndyMac Venture, LLC. At the same time, Dell and the boys are creating IMB Holdco, LLC. (Now this next part is fun-because it all takes place on March 19, 2010 with some of the most expensive lawyers money can buy). Both sides are setting up the silo from different sides and they all meet in the middle with IndyMac Ventures, LLC being the center of the structure. FDIC names itself Receiver (no longer conservator) of IndyMac Federal Bank, FSB, they create a contribution agreement between IndyMac Federal Bank, FSB and IndyMac Venture, LLC in which they contribute substantially all of the assets of Indymac Federal Bank, FSB to IndyMac Venture, LLC and in return the FDIC receives a Participation Agreement from IndyMac Venture, LLC which allows them to share in the future interest of the mortgage loans. (They still get paid monies on the loans they financed for Dell & the boys). At the same time on the other end of the silo Dell and the boys deposit 1.4 billion dollars into IMB Holdco, LLC. (This is the holding company that actually benefits from the loans in the end). In turn they create the (Intermediate Holdco), One West Venture Holdings, LLC which owns One West Group, LLC and also owns and (regardless of how it is written) controls One West Bank, FSB. (Remember, these are intermediate holding companies for IMB Holdco). Now this is where they get cute! On March 19, 2009 IMB Holdco transfers the 1.4 billion to intermediate holdco, or One West Venture Holdings, LLC and they do not purchase the loans from the FDIC – they purchase the interest that the FDIC had in IndyMac Venture, LLC. The loans have never left IndyMac Venture, LLC and the majority are still held on MERS under IndyMac Federal Bank, FSB and the FDIC still gets money from these loans daily. Sheila, tell the people who you are really protecting because some of us already know. As a closing note, when adding in the actual value of the deposits, servicing platforms securities owned, loan servicing rights, etc… The actual amount paid for the interest in IndyMac Ventures, LLC by Dell & the boys is forty nine cents on the dollar. Of which they only recapitilized with 1.4 billion in cash. The scariest part is the FDIC has many of these same scenarios and so does the Federal Reserve Corp. through entities like Maiden Lane, LLC, which also includes the likely candidates Goldman, Deutshe, JP Morgan Chase, Socieliete Generale, AIG. So ,are we protecting any group or the whole damn monetary structure. You make choice… I know the answer already
One last question that needs to be answered. If the FDIC wants to stake claim to its PRIVATE STATUS funded by member banks why do the taxpayers have to offer the implicit insurance backing? Is it that depositiors truly would not accept the insurance if the government does not back it? Ask the Chinese about their Freddie and Fannie Securities, see if they would continue with these holdings if Uncle Sam would not back the tab on default. Ask Goldman how many derivatives they issues on behalf of the soveriegn debt for the United States. We need to go back to these united states, or the several states.
Mr. Donovan, All I can say is “Wow”!
I can see how the electronic age can help us all get the story on all that is going on in the Banking industry.
I am not one to say all homeowners need a break, but we as a nation cannot allow a system that put together the bad loan products to hide behind the idea that Brokers, Realtors and Appraisers caused the fall. Lets expose where the major faults lie and fix it.
Chase bought WAMU in September of 08 for $1.9 billion dollars. They got a bank with almost $310 billion in assets and $188 billion of it bank deposits. Chase will tell you that the deal wasn?t that great as they had to absorb a hemorrhaging mortgage portfolio of $176 billion that they immediately wrote down by $31 billion. That?s true, but hides what really is going on.
If you ignore all the other debt and assets, Chase got $176 billion in home loans for $1.9 billion. That?s just over 1% of face value. Assuming an average loan balance of around $300,000, that?s almost 600,000 mortgages and corresponding homes. That means they paid an average of only $3,000 for each of those loans. Even if they foreclose on the ENTIRE portfolio, do you think they can make money by reselling houses they got for $3,000 each? In January of 2008, Bank of America paid $4 billion for Countrywide. Countrywide serviced about 9 million loans valued at $1.5 trillion dollars. Run the numbers!
Chase bought WAMU in September of 08 for $1.9 billion dollars. They got a bank with almost $310 billion in assets and $188 billion of it bank deposits. Chase will tell you that the deal wasn?t that great as they had to absorb a hemorrhaging mortgage portfolio of $176 billion that they immediately wrote down by $31 billion. That?s true, but hides what really is going on.
If you ignore all the other debt and assets, Chase got $176 billion in home loans for $1.9 billion. That?s just over 1% of face value. Assuming an average loan balance of around $300,000, that?s almost 600,000 mortgages and corresponding homes. That means they paid an average of only $3,000 for each of those loans. Even if they foreclose on the ENTIRE portfolio, do you think they can make money by reselling houses they got for $3,000 each? In January of 2008, Bank of America paid $4 billion for Countrywide. Countrywide serviced about 9 million loans valued at $1.5 trillion dollars. Run the numbers!