The Indymac Slap in our Face. 02.08.10

ET note:

This video gives a brief picture of what FDIC's lady Sheila Bair is doing. 

However, the title is inaccurate.  It is NOT Indymac, a victim of FDIC receivership!  FDIC just robbed Indymac's investors, took over everything for nothing at the onset, and then transferred these assets to FDIC's friends loaded with taxpayer's money. 

While those big fat cats are having a chunk of fish fillet by making hundreds of thousand dollars per case through abnormal FED TARP or something like FDIC loss sharing program, why they want to be bothered to do their normal lending business: making a loan to average Joe to earn thousands of dollar out of each application? 

So 2 weeks ago, I said to Jerry, a son of my good friend who has 20% down payment, 800+ FICO score and a decent long time job, "don't blame your bank!  As opposed to their no risk, easy money or profit from FED, your bank has a "decent or legitimate" risk concern about your job stability." (That is the reason they gave to Jerry for rejecting his loan request. His employer is a small business has provern track record of profit and survival in the past years; but may fail at this difficult time in eyes of the banker.)

You'd be better off to have HUD lined up as your friend too.  And go for HUD 3% down payment program. (Why Jerry has to have his conscience of responsibility to pay more down payment or has to care if it is a new hybrid of subprime loan as long as it is guaranteed by HUD.)

Next, how about AMC which has just popped up trying to provide a "buffer zone" to cut off so-called "Appraisal fraud"?  Acting as an independent appraisal management company, did it provide a more realistic appraisal method so far?  NO, absolutely not.  What the result is?  To cover up the symptoms, not to cure the cause.

Clearly it ripe off the average appraiser whose fee is dramatically reduced about half to $200 a case, let alone he has to pay membership fee to an AMC to get a chance to receive an order or assignment. (Gee! An appraiser has to pay about $300 fee to join an AMC in order to be chosen for doing an appraisal.  And remember there are more than 30 AMC now.  How much he has to pay if he wants to join all of them?  Almost $10,000.  That is a killing!)  But a banker still pays $400 as usual, where the $200 went to? The middle man: AMC.  Who are those 30+ AMC?  Good question? A whole bunch of lawyers, right?

Then, next, can anyone tell us what is going on behind the scene of AIG SWAP insurance?  If not, why so many sellers/bankers refuse to give out the information or disclosure about its insurance claim when the REO is about to be sold? Big hidden profits to those predators, they don't want us know. 

Do you want to exercise your "TEA" party's right?  Give me a break!  Sarah Pailin.  What are you going to do about it, down there in Tennessee?  Just take a deep breath and look up there in New York, Ben Bernanke refused to answer Bloomberg.com's request of transparency and dared to face a lawsuit.