Please view the recent work by Senator Dodd in reference to a set of principles he has set forth lender's and investment firms should adhere to in helping people in trouble through this crisis. I'm trying to clarify  now with Senator Dodd's office who the current list in agreement is. Sadly like anything else in this industry it may only be a select few. This is the reason that guidance, in lieu of  laws and regulations will never accomplish anything. But, I have to give him some points for doing something.  

http://dodd.senate.gov/index.php?q=node/3863

http://banking.senate.gov/index.cfm?FuseAction=PressReleases.Home

I'm very happy to see that some in congress are taking this matter seriously. However, time is running out to save millions from foreclosure. With the upcoming presidential election, now is the time to contact Barack Obama, Hillary Clinton, Chris Dodd, and anyone else who is in the presidential race. Send a message just like you did with the the clean sweep of the Congress. We as a Nation have had enough. The hard working middle class is tired of "big business" walking all over us.

This issue is not new, in fact I'm finding congressional testimony, investigative reports, and government agency actions against lenders and title companies going back to 1998. So here we are in 2007 and the talking heads are still just talking. It's time to stop the rampant abuses before we become a Nation of foreclosed, bankrupt people.

We are tired of the rampant corruption and CEO's taking "golden parachutes," after they cheat investors. We hear all the insider trading scandals, and think what can I do. Martha Stewart who could have afforded to lose a few thousand got her inside information. The consumers who made her rich, well they were another story. The people who couldn't afford to lose money, did. Enron executives get the use the million they stole to defend thereselves. The average American doesn't have that luxury. The person whose home is being foreclosed on doesn't have the resources to fight. The lenders, well, that's another story. Kevin Demet, the lawyer representing the Andrews against Chevy Chase Bank told me the bank hired three of the top law firms in the country. Funny thing though, truth wasn't on their side. THe best defense they could come up with was when copying documents some words go lopped off. I laughed out loud when I heard that one.

The country is so distracted with the war in IRAQ that no one is focusing on this unfolding crisis. It will affect everyone. The statistics are staggering now. What will happen as millions of adjustable rate ARMS continue to reset. Truly a "perfect storm" is brewing. Now is the time to send a strong message. We don't need more talk. We need to put these crooks out of business. We need to get the consumers out of these crazy loans before the FED embarks on more rate increases. We need to make the CEO's and CFO's and all the executives who have taken out millions in salaries and compensation, give it back. They should be in jail. Not on the golf course. We need Federal minimum standards, with no premption of states with stronger laws. Please contact your local representatives in Washington.

                                              Dodd to Regulators: 
        What did you know, when did you know it, and what did you do about it?
 
Chairman will question series of events leading to subprime mortgage crisis March 21, 2007
Senator Chris Dodd (D-CT), Chairman of the Senate Banking, Housing and Urban Affairs Committee, today revealed a pattern of neglect by federal bank regulators that Dodd believes precipitated the subprime mortgage crisis that could cause 2.2 million homeowners to lose their homes in the next few years. In late 2003 and early 2004, the Fed’s internal analysts noticed a deterioration of lending standards, creating a higher risk of defaults and foreclosures. At around the same time, the leadership at the Fed was encouraging the development of alternative mortgages, such as adjustable rate mortgages (ARMs). Subsequently, ARM and subprime shares of mortgages reached record high levels. Soon thereafter, the Fed embarked on 17 consecutive interest rate increases, meaning that people with ARMs were now facing substantial payment shocks in the future.

Dodd has described this combination of events as “a perfect storm that has contributed to the hardship and heartache that millions of homeowners now face.”

Dodd also detailed failures by federal regulatory agencies to use powers given them by Congress to protect consumers. Only in March 2007, in reaction to pressure from Chairman Dodd and others, did the regulators announce they would rewrite lending standards to provide subprime borrowers with the same protections that they had just recently extended to prime borrowers. At tomorrow’s hearing, Dodd will ask regulators why it has taken them more than three years to act despite evidence that they themselves identified problems in the subprime market.

Dodd will also question why the Home Ownership and Equity Protection Act (HOEPA), a law enacted in 1994 that gives the Fed the authority to prohibit unfair and deceptive lending practices by both federally- and state-regulated mortgage lenders, has never been utilized.

In addition to the regulators, Dodd will question four out of the five top subprime lending companies – New Century, one of the five, has refused to testify. Dodd will also hear from a 77-year old widow who will testify to her experiences in the subprime market following the death of her husband.

Dodd said he has two objectives: “First, to save as many people as possible from foreclosure. Second, to make sure that consumers receive the protections that need and deserve.

Our leaders should help Americans achieve the dream of homeownership – not take that dream away.”


February 14th, 2007
Contact: Marvin Fast (202) 224-6512
DODD CALLS REGULATORS’ RESPONSE TO PREDATORY LENDING “INADEQUATE”

Washington, D.C. - Chairman Chris Dodd (D-CT) today expressed dissatisfaction with the response he received from federal regulators to a letter that he and other members of the Banking Committee sent in December. Sen. Dodd raised the issue directly with Federal Reserve Chairman Ben Bernanke during a hearing today. Sen. Dodd termed the response by Chairman Bernanke and fellow regulators to predatory lending “inadequate.”

The letter urged the federal financial regulatory agencies to adopt the same guidelines that are applied for exotic mortgages in the subprime market to higher cost subprime adjustable rate mortgages (ARMs), such as 2/28 ARMs. 2/28 ARMs, which comprise up to 80% of the subprime market, put consumers at risk for facing sharp increases in monthly payments for which they are not prepared and which they cannot afford.
“Owning a home is one of the wisest investments Americans can make, and one of the fundamental and most fiscally responsible ways to accumulate wealth,” said Dodd. “Home ownership fosters both financial mobility and economic security. We must encourage this goal, yet some practices in the subprime market seem to be doing just the opposite. “There is simply no justification for offering vulnerable borrowers fewer protections than those offered to borrowers in the prime market.

In addition, data has shown that black and Hispanic families are disproportionately borrowing in the high cost subprime market. In order to achieve consistency and fairness, we urge the regulators to move quickly on this issue.” Chairman Dodd, concerned by the rising rates in defaults and home foreclosures, has brought attention to predatory lending practices in the housing market and how these practices undermine Americans’ efforts to build wealth and achieve greater economic security and prosperity.