Comments on: Calomiris’s ridiculous take on the mortgage settlement A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: richwell Fri, 15 Apr 2011 11:20:19 +0000 I’ve read 8 pages of Calomiris. He should read the Congressional Oversight Panel December 2010 report. Settlement terms rely on this excellent analysis. For example, we learn that the NPV inputs were managed by servicers so as to make a modification less worthwhile than foreclosure. A recent attempt of Treasury involves using an updated NPV formula to avoid gaming this aspect of modification.

Calomiris refers to early modifications (05-08). These mostly ended up increasing the amounts borrowers had to pay. No wonder further default resulted.

If this paper is intended for Congress, it must be for members absent from the investigating committees!

Treasury (or HUD) would be better off taking modification over on behalf of debt holders, but that would really be contentious.

By: DamonK Thu, 14 Apr 2011 00:47:11 +0000 Loan modifications have failed mainly because the government has pussy-footed around banks insteasd of mandating action in clearly defined circumstances.

Lets talk solutions to the mess. We should start with a government interest rate registry, not sold tosolicitors, but used for governemnt to monitor and isolate unfair mortgages and mandate that they be reset to a reasonable rate above oprine.

And then lets revisit the acceoted but paradoxical notion that lesser credit more challenged borrowers get higher interest rates. This just makes the loan that much riskier for the bank. We need to get away from that. Maybe offer lower LTV options to them, but dont expect to give the poorest people the most expensive products, in what universe is that sustainable!
Damon Keaveny

By: hsvkitty Tue, 12 Apr 2011 19:55:32 +0000 We wouldn’t wish to have the banks lose a portion of those profits by paying fines for their fraudulent acts and poor servicing standards. Things should just go on as planned… do not open pandora’s box or make banks responsible or it will be bad for the economy….

Yes, poor banks… we are always bashing them and should stop. The taxayers and homeowners owe Bansters a debt of gratitude for being such wonderful and Godlike pillars of the community and of the economy. Seriously you must, because even their wives got a bailout…

Read this over your tea, samadamsthedog: s/the-real-housewives-of-wall-street-loo k-whos-cashing-in-on-the-bailout-2011041 1

By: ademangone Tue, 12 Apr 2011 15:33:15 +0000 I disagree with your take on their first part of their argument. “Regardless of the level of borrower distress” to me seems to limit that discussion to borrowers who are in distress of some kind. I think what they are saying is that for those borrowers in distress, the proposed settlement doesn’t seem to make distinctions. If a borrower isn’t delinquent, are they really in distress?

A. Demangone

By: samadamsthedog Tue, 12 Apr 2011 14:40:24 +0000 Thank you for quoting H. L. Mencken. Perhaps it is a good time to recall his definition of democracy: “The theory that the common people know what they want, and deserve to get it good and hard.” Excuse me while i grabba cuppa tea.