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Media Coverage: ICB Credit 'piggybacking' continues to help consumers
Anonymous writes "
Housing:
ICB Credit 'piggybacking' continues to help consumers save thousands of
dollars on their homes, money that would have been stolen by would be
opportunistic subprime lenders. ;;
GREAT NEWS!!! ;; AU's are still counted in the credit scoring process! ;; A HUGE WIN for the American people. ;; But beware; it has to do with infighting between FICO and the new scoring system offered by FICO's main 3 customers. ;; The CRA's! ;; ;;
This
at least gives Congress enough time to look into the problems at hand
before either of these two credit scoring giants make a standard out of
such poorly conceived credit scoring systems – which by the way, when
combined with interest rate justification ( a totally flawed lending
risk to reward system) is a toxic mixture for the American people
forced on those who can least afford it! ;;
You can read the Spin the bankers had published in our local ST Pete Times here ;;
Media Coverage: Reprieve for the Piggybackers: Still No Credit-Score Crackdown
Anonymous writes "
I found a story today
"Reprieve for the Piggybackers: Still No Credit-Score Crackdown"
"Piggyback"
credit-score-inflation schemes for mortgage applicants haven't been
reined in, despite industry pledges to do so at the end of the summer.
As a result, lenders continue to be misled into treating loan
applicants with poor credit as prime-credit candidates, worsening
already critical delinquency problems in the mortgage market.
Take note that this Kenneth R. Harney ;;is nothing but a mouth piece for the banking industry!
The
Bankers are trying to cover their asses making the good guys (companies
like ICB) look bad because the American people were forced to extreme
measures to compensate for corrupt banking policies, and absolutely
unfair credit scoring formulas. ;;
Bankers
put the American people in the position of being over their heads in
debt, it wasn’t companies like ICB, it is companies like ICB that gave
hard working Americans a chance to restructure their finances a year
before the government expanded FHA Programs to help troubled home
owners.
ICB’s
system of rapid revaluation is a free market solution to a crisis
created by the lending industry and Wall Street Lackeys willing to do
anything to steal money from the American people!
AND NOW FOR THE NEWS ICB TOLD YOU WOULD HAPPEN!
Fair
Isaac, developer of the FICO score widely used for home-loan
underwriting, confirmed that its "FICO '08" scoring model is not yet
available at the three national credit bureaus. The new model,
announced with fanfare in June as an antidote to piggybacking, was to
have been activated in September at one of the bureaus, Experian.
But
Experian says it has no firm time table to make the model available.
The two other bureaus, Equifax and TransUnion, are not scheduled to
receive the model until next year, according to Craig Watts, a Fair
Isaac spokesman.
Why arent they using ;;FICO 08 ;;you ask? ;; BACKLASH! HUGE BACKLASH!
Piggybacking is an unintended consequence of unfair
and corrurpt lending in America, and the lastest move to remove AU's in
the scoring process shows the lending indurstries true colors! ;; Just look at what the thousands of people protesting FICO 08 are saying here
So the people STOPPED FICO 08 and ;;just when you
;;might ;;have been ;;thinking the playing field is ;;getting ;;a
little more fair, ;;the indusrty ;;diggs ;;for more ;;tricks to lower
the credit scores of the American people. ;; LOOK out for this company!
;; THERE IS A NEW LACKEY IN TOWN! CreditXpert, a Towson,
Md., technology firm active in the credit industry, says its new filter
enables loan officers to calculate just how sizable an impact
applicants' authorized-user accounts have on their FICO scores.
OMG!
Do ;;the American people really need companies that make software for
the sole objective of lowering someone’s credit score? ;; ;;This ONLY
;;subjects high ;;interest rates on those already struggling
financially! ;;
Things are heating up quickly in this made for TV credit score drama. ;; ;; Visit ICB often to get the latest skinny on what these wall street lackey’s are doing to steal your money!
;;
;;
;;
"
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Media Coverage: A subpar sub-prime plan?
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A subpar
sub-prime plan?Countrywide's offer to help borrowers isn't as
altruistic as it seems, but parts of it still set a good example for
lenders.October 25, 2007
Countrywide Financial Corp., the
largest U.S. mortgage lender, announced a new effort this week to
contain the meltdown in the sub-prime market. The Calabasas-based
company said it would refinance or modify up to 70,000 adjustable-rate
loans -- less than 1% of the mortgages it services -- to aid borrowers
whose interest rates will ratchet up by the end of 2008. It also plans
to offer new deals to troubled sub-prime borrowers whose rates already
jumped, potentially helping 10,000 more. The total value of those
mortgages is about $16 billion.
There's less to admire about
Countrywide's move than these numbers suggest. Most of the homeowners
affected pose little or no risk to lenders. Either they've proved that
they fit the profile of a prime borrower, or they meet the requirements
set by Fannie Mae and other agencies that guarantee loans. Either way,
they qualify for mortgages with significantly lower interest rates than
their current loans will soon impose. Countrywide wins no angels' wings
for steering these borrowers into more affordable prime loans.
Other elements of Countrywide's plan,
however, set an example for lenders and investors, because they
sacrifice potential (but likely unattainable) profits for the sake of
avoiding foreclosures. One program would offer better loan terms to
prime and sub-prime borrowers with dim prospects for refinancing and
who can't afford the higher rates their loans are due to charge. The
other would cut rates for borrowers already in trouble. These
modifications will cost Countrywide and the investors that currently
own the loans, which Countrywide packaged and sold to Wall Street. But
a reduced return is better than what investors and Countrywide would be
left with should the borrowers default. With property values dropping,
some of those properties are likely to be worth less than the balance
of the loans.
This approach is the most direct
response to the burgeoning problems in housing finance. The damage
inflicted is so extensive, to individuals and to their communities,
that some policymakers have pushed for federal, state and local
governments to intervene. But it would pose a significant moral hazard
for the government to use tax dollars to save borrowers from
defaulting. That kind of bailout would rescue lenders and investors
from the consequences of their reckless bets on an ever-appreciating
housing market, as well as rewarding borrowers who knowingly took on
too much debt. It's far better for lenders and investors to absorb
losses on loans that never should have been made, while accepting
smaller returns from borrowers who can afford no more than a small
premium over prime rates. After all, most have been paying a premium
for their homes since Day 1
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Media Coverage: Greenspan questions superfund bailout
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Greenspan questions ‘superfund’By Krishna Guha in Washington and David Wighton in New York
Published: October 19 2007 17:12 | Last updated: October 20 2007 01:51
Alan Greenspan on Friday raised serious doubts over the plan to
create a $75bn-plus investment fund to buy the assets of troubled
investment vehicles, warning that it could prevent the market from
establishing true clearing prices for asset-backed securities.
“It is not clear to me that the benefits exceed the risks,” the
former chairman of the Federal Reserve told Emerging Markets magazine.
He added, “The experience I have had with that sort of intervention is
very mixed.”
His comments came amid growing speculation on Wall Street that the
current Federal Reserve has mixed feelings about the superfund plan,
which was put forward by Citigroup, Bank of America and JPMorgan Chase
with the active encouragement of the US Treasury.
Analysts believe the Fed sees potential benefits in the plan in
terms of preventing a possible firesale of assets, and does not think
it is designed to allow financial institutions to avoid recognising
losses. But they think the Fed is worried the plan could be feeding
investor anxiety, and thinks markets might normalise faster if some
assets in the troubled vehicles were sold in the market and prices were
allowed to find a floor.
Serving Fed officials have not commented on the superfund plan,
leading some to conclude they want to keep their distance. The Fed
refused to comment on market speculation. The Treasury regards the
Fed’s silence as simply reflecting the separation of powers and
responsibilities between the institutions.
Mr Greenspan said on Friday: “What creates strong markets is a
belief in the investment community that everybody has been scared out
of the market, pressed prices too low and there are wildly attractive
bargaining prices out there.” He added: “if you intervene in the
system, the vultures stay away. The vultures are sometimes very useful.”
The former Fed chief did not say he opposed the superfund and did
not advocate selling assets at firesale prices. He said the 1998
Fed-sponsored rescue of Long-Term Capital Management worked because it
took a set of assets that would otherwise have been dumped at firesale
prices off the market, allowing prices to find a true equilibrium. But
he said today “we are dealing with a much larger market”.
Mr Greenspan’s doubts about the proposed fund are shared by some of the world’s most successful investors.
Warren Buffett told Fox Business Network that “pooling a bunch of
mortgages, changing the ownership” would not change the viability of
the mortgage instrument itself. “It would be better to have them on the
balance sheets so everyone would know what’s going on.”
Bill Gross, chief investment officer of Pimco, the giant bond fund manager, has called the superfund idea “pretty lame”.
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Media Coverage: Worlds top bankers call for sweeping reforms to address credit problems
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The
world's leading private sector bankers on Sunday called for sweeping
reforms to address problems exposed by this summer's credit crunch
crisis in an effort to restore investor trust and confidence.
The
group said there needed to be more transparency in the $75bn
asset-backed superfund, which was established last week by America's
top three banks, if it was to achieve its aim of restoring confidence
in the market.
Admitting
that there was significant scope for improvement, the Institute of
International Finance (IIF), which represents about 370 global banks,
outlined a five-point blueprint to prevent a recurrence of the problems
triggered by defaults in US sub-prime mortgages.
Dr.
Josef Ackermann, Chairman of the IIF’s Board of Directors and Chairman
of the Management Board and of the Group Executive Committee of
Deutsche Bank AG, said that the Board is
establishing a committee to produce recommendations by the Spring of
2008 that reflect the views of leaders of our industry and that can
enjoy strong support from financial services firms across the world and
that complement efforts underway by the official community.
The
committee's agenda will concern a variety of key aspects of important
issues, including those relating to structured products, comprising:
Risk management, credit underwriting practices, and pricing of risks
Conduits and the contingent liquidity risks that firms have been exposed to by using off-balance sheet instruments
Valuation questions, especially where markets are thin or absent;
Ratings – interpreting and evaluating them; and,
Transparency, disclosure and communications to define appropriate standards.
"At
the IIF’s Spring Membership Meeting at the end of May, we called for
lenders to follow best practices and not allow deal pressures to water
down standards. Although there were some efforts to resist these
tendencies they were not sufficient to forestall the stress that has
arisen in the market," Ackermann said.
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