Today while going thru my e-mail, I noticed a message containing a newsletter from Biggerpockets. I thought to myself how pleasantly surprised I was when I received a phone call and a chat from Joshua this weekend. By the way, if you are involve with real estate, mortgages, investing or property management and are not a member of Biggerpockets I highly recommend that you join. It is the premier real estate online community. Anyway, I found the following items in the newsletter rather interesting and wanted to comment.......
The House Committee on Oversight and Government Reform will scrutinize the compensation and retirement packages of one chief executive and two recently deposed CEOs of companies ensnared in the mortgage crisis. The witness list includes: Angelo Mozilo of Countrywide Financial Corp., the nation's largest mortgage lender; Stanley O'Neal, formerly of Merrill Lynch & Co.; and Charles Prince, formerly of Citigroup Inc.
What does scrutinize mean?
On another note.... Bank Iacocca is proposing that American Tax payers subsidize it's bad debt via the formation of The Federal Homeowners Preservation Corporation. Everyone in the industry knew that B of A needed to buy a clue when it came to Sub-Prime Financing. So, what did they do instead? They made bad loans to Countrywide then bought the doggon kit and kabodle. Unbelievable!
Those of us who have been in the industry for any length of time are personally acquainted with the underhanded tactics used by Countrywide. They were known to manipulate and steer potential buyers. They inflated appraisals and property values. They stole commissions from their own in house staff who in turn stole deals and sold them to the highest bidding non-affiliate Broker.
During the beginning of the end Countrywide informed it's department that worked on re-fi leads generated by credit inquiries, that they would have to continue making the same amount of bricks without Countrywide's supply of hay and mortar. Countrywide allowed them to work the trash while housing the good deals.
This deal that Bank Iacocca is proposing just does not give me that warm fuzzy feeling. Read More....