| Years ago, in our wild, wild west the acronym | | | | when they are faced with foreclosure? |
| was born about being "two faced" What that | | | | I want to get back to the title of my article. Two |
| meant was that you cold say something and | | | | Faced Banks. They are really trying to get it "both |
| mean another thing. The cowboys used to refer | | | | ways". First of all, I want you to understand that |
| to the Wild West Indians as being the originators | | | | they have already been paid for their services. |
| of two faces. I remember watching a "Geronimo" | | | | They did NOT put up any money when you |
| movie and the one that that irritated this great | | | | closed on your loan. So, here they are wearing |
| chief was the "two faces" that Washington | | | | another face and trying to collect on a loan that |
| presented to the Indians. | | | | they don't own and have no "skin in the game" |
| Do you remember that gesture? It was holding | | | | Now, enters the loan "modification" arena. They |
| your hand upright between your eyes and that | | | | are confusing the public by saying to the media |
| would signify "two faces". Well, it looks like "two | | | | "we approve four out of five loan modification |
| faces" has emerged into our society, but this time | | | | requests". That is CRAP. The loan modifications |
| on Wall St. I get this information from folks that | | | | that they speak of are merely a "re-arranging" of |
| are closer than you and I to the situation and it | | | | payments but the homeowner still ends up paying |
| seems like the banks are presenting two faces to | | | | the long dollar. The bank loses nothing. They |
| the government when it deals with consumer | | | | re-structure that loan to make more money. That |
| complaints and foreclosures. | | | | is why the tabloids are reporting that loan |
| Recently, I was told, that CITI Corp told some | | | | modifications are ending up in foreclosures |
| members of Congress that they modify four out | | | | anyway. |
| of five modification applications that come to | | | | IF, they would reduce the principal to somewhere |
| them. Yet, you and I know of the horror stories | | | | near what the value of the home currently is, |
| being told about waiting on the phone for hours or | | | | that would solve all of the problems. I understand |
| being told to re-submit your paperwork for loan | | | | that there is a movement currently in Congress, |
| modification. | | | | to take a lot of the "stimulus money" and allocate |
| I know how overworked the system is. But, that | | | | it back to the States. Now, from what I |
| goes with the turf. How can someone answering | | | | understand, these monies would "NOT FLOW |
| the telephone tell a consumer "we have no record | | | | THROUGH THE BANKS". The banks have already |
| of your application? Can you please re-send it"? I | | | | showed their "two faces" and now Washington |
| recently heard about a family in Spokane, | | | | has caught on and without re-writing law, they are |
| Washington that was in the middle of a "loan | | | | going to (hopefully) pass this money down to the |
| modification" program with Wells Fargo. They | | | | non-profits in the form of grants. |
| went to dinner on a Sunday evening to celebrate | | | | The non-profits would then go to the lenders and |
| the boy's birthday. When they returned home, the | | | | eliminate the "short sale" sharks and purchase the |
| locks on their home were changed and their | | | | note from the bank based on the current value |
| possessions were on the street. Well, this incident | | | | of the property. Now, the non-profit would own |
| found its way all the way up the ladder to | | | | the note. The family would be able to stay in the |
| Washington. | | | | home and pay the non-profit rent. The family |
| I know of a personal friend living in Washington | | | | would have to attend a credit educational class, |
| that had his home, in a gated community, broken | | | | and the non-profit would also have grant monies |
| into and the locks changed while he was at work | | | | to cross-train the breadwinner to perhaps gain |
| because the lender or servicing company wanted | | | | employment in another occupation. |
| to assert authority. The outcome is still | | | | At the end of (5) years the consumer would |
| un-resolved, but the fact that the servicing | | | | have their credit straightened out and then would |
| company broke civil law speaks well of their | | | | be eligible to purchase the home from the |
| mentality and will most probably be an item of | | | | non-profit at the same price that it was |
| discussion in the ensuing resolution of their case. | | | | purchased for, and the FHA would guarantee the |
| Now, let's get real. How may average Americans | | | | loan. I think that this concept is the most dynamic |
| know the difference between a servicing | | | | "shot in the arm" for our country in many years. I |
| company and the actual lender or owner of the | | | | don't know who is behind this creative thinking, |
| note? So may folks think that the servicing | | | | but I will personally offer the power of the pen to |
| company is the lender and they are confused | | | | support it. |