All Forum Posts by: Corey Dutton

Bloomberg just published a great article that I wanted to share with you all that is titled, ‘The Fed’s Secret Liquidity Lifelines.’ From August 2007 until April 2010, the Fed pumped $1.2 MM in bailout money to banks and companies. And YES, this was public money used to bail out institutions and organizations that were just downright greedy. Now guess who’s footing the bill? That’s right, you are!!

But who were the biggest takers of these loans from Uncle Ben?
Morgan Stanley was the largest taker of $108 Billion in September of 2008, following by Citigroup and Bank of America. Some of the names on this list will shock you, including General Electric and Harley Davidson. Many of you reading this were probably unaware that the Fed actually bailed out whole Countries with your precious tax dollars, including Mexico, Scotland, and many, many more.

Want to get really angry about where your tax Dollars went and who those Dollars bailed out? It is actually appalling when you see the list with your own eyes. Take a look at this infographic by Bloomberg of the list of banks and other companies that received public bailout money from the U.S. and leave your comments below. My comment? Good ol’ Uncle Ben Bernanke should be in prison. Here’s the list on Bloomberg, read it and weep: http://www.bloomberg.com/data-visualization/federal-reserve-emergency-lending/

Thanks Mark Ferguson for confirming what the "whistleblowers" in the article I referenced are claiming. I've heard the same for many years...

Chris Martin I guess the message they are sending then, as per your correction is, "let me lend recklessly and make tons of money being greedy and cause financial meltdown, then you bail me out, then I pay you BACK WITH INTEREST, now I'm back on track."

Ryan Logsdon I didn't "smear" anyone as you said. He was the one that insulted me....Wow. You're a fireball Ryan. Do you work for B of A or what?

Read the article and the complaints posted by the employees. Ethics is ethics...period. And in this case, obviously a serious lack thereof.
Taking the bailout money in itself (paid back or not) is still an abuse. The message is, "let me lend recklessly and make tons of money being greedy and cause financial meltdown, then you bail me out, then I pay you back, now I'm back on track." Wow. That's great ethics Wayne Brooks

According to a recent article published by the Huffington Post, former employees of Bank of America have filed sworn statements about the bank’s unethical conduct toward borrower’s seeking loan mods or due process on foreclosure.

Bank of America also publicly showed taking only $45 Billion from the Fed in bailout money, but secretly took double that for a whopping $91 MM taken from the U.S. public coffers via Uncle Ben Bernanke. Right again, that’s YOUR money that the Fed used to bail out this greedy institution. Read more on the biggest takers of public money during the Fed bailout here: http://www.bloomberg.com/data-visualization/federal-reserve-emergency-lending/

Bank of America whistleblowers cited examples of how Bank of America employees were administratively giving the run around to borrowers seeking loan modifications or due process on their foreclosure process. Any Bank of America employee that challenged these practices was fired. Further, the whistleblowers said that top employees were given bonuses for meeting foreclosure “quotas.”

For any of you that have dealt with Bank of America, whether as a borrower or as a buyer of REOs, you too have probably experienced the administrative nightmare of this bank. Please share your own experiences with Bank of America as either a borrower or a buyer of bank REOs. As I said in my last post on Bank of America, this is one bank that should have been allowed to sink.

This bank is essentially a government owned entity posing as a publicly owned company. Just like all of the communist and socialist, government owned enterprises found around the world, Bank of America is no different. Zero efficiency, administrative jungles, lack of competition, and co-dependency are some of the characteristics that make up these types of government owned entities. How is Bank of America any different? Read the entire whistleblower article here: http://www.huffingtonpost.com/ray-brescia/bank-of-america-whistleblowers_b_3464583.html

According to a recent article in ‘National Real Estate Investor,’ many commercial real estate investors will have difficulty refinancing their maturing loans. For those loans written between 2005 and 2007, many of these loans will be maturing now, or in the next couple of years. While U.S. banks try to comply with stringent banking standards effective in January of 2013, most of them won’t be reissuing new commercial debt. Particularly on assets that have lost value since these loans were written.

For this reason, commercial real estate investors must seek alternatives now for these maturing loans. Bridge loans, offered by private money, non-bank lenders is a viable alternative. For those who have never gone in the direction of private money, bridge financing they may have no other choice. With a huge amount of CMBS maturing now through 2015, it will be trying time for those with assets whose values have tumbled.

To read the entire article in NREI, click here: http://nreionline.com/commentary/theres-avalanche-cmbs-loans-maturing
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Bloomberg just published a great article that I wanted to share with you all that is titled, ‘The Fed’s Secret Liquidity Lifelines.’ From August 2007 until April 2010, the Fed pumped $1.2 MM in bailout money to banks and companies. And YES, this was public money used to bail out institutions and organizations that were just downright greedy. Now guess who’s footing the bill? That’s right, you are!!

But who were the biggest takers of these loans from Uncle Ben?
Morgan Stanley was the largest taker of $108 Billion in September of 2008, following by Citigroup and Bank of America. Some of the names on this list will shock you, including General Electric and Harley Davidson. Many of you reading this were probably unaware that the Fed actually bailed out whole Countries with your precious tax dollars, including Mexico, Scotland, and many, many more.

Want to get really angry about where your tax Dollars went and who those Dollars bailed out? It is actually appalling when you see the list with your own eyes. Take a look at this infographic by Bloomberg of the list of banks and other companies that received public bailout money from the U.S. and leave your comments below. My comment? Good ol’ Uncle Ben Bernanke should be in prison. Here’s the list on Bloomberg, read it and weep: http://www.bloomberg.com/data-visualization/federal-reserve-emergency-lending/

Thanks Jeff S. Many of our competitors are not even bothering to comply. This makes it harder to compete in this new regulatory environment. I guess all we can do is keep at it and hope that something changes down the road.

The Consumer Financial Protection Bureau (CFPB) was another offspring from the Dodd Frank Act, a legislation that is well-hated among mortgage professionals in America. These new controls under the CFPB have put unnecessary regulations on small community lenders and other private money, non-bank lenders. In Utah for example, private money lenders lending their own money on residential investment real estate, are now required to be licensed under the SAFE Act. The SAFE Act, another evil stepchild of Dodd Frank, has it’s own set of regulations enforced on the State level.

From a recent article published in Mortgage Professional’s America, counter legislation is being proposed by the Community Mortgage Lenders of America (CMLA). This proposed legislation will serve to shield community lenders with good track records from the “excessive” standards of large banks.

Mark MacDougald, Chair for the CFPB, said this proposed legislation aims to assist small lenders, and not large banks, with the burdens of new compliance.
MacDougald was quoted in the MPA Article,

"While we all agree that consumers deserve protection from abusive products and practices, we remain deeply concerned that a 'one size fits all' approach will significantly disadvantage small, community-based lenders that did not create the meltdown, and don't have the resources to hire an additional staff to comply with rules aimed at larger institutions…"

What is your opinion on this topic? Should the small, community lenders be forced to comply with the same standards as the large banks? Here’s a link to the entire article on MPA, very interesting read: http://www.mpamag.com/mortgage-originator/small-lenders-take-aim-at-unfair-compliance-15323.aspx

Please share your comments on this topic below.