Category Archives: incentives

Federal Short Sale Programs Will Face Same Shortcoming As Workouts: Too Much Carrot, Not Enough Stick

Posted on May 11, 2010 by Isaac Gradman

With government-backed loan modification programs showing abysmal results, Washington has turned to short sales as the flavor of the week to ameliorate the foreclosure crisis.  Pursuant to the Treasury Department’s Home Affordable Foreclosure Alternatives (HAFA) initiative, effective April 5, loan … Continue reading →

Posted in allocation of loss, California Lawyer, conflicts of interest, foreclosure rate, HAFA, incentives, loan modifications, servicers, short-selling, Treasury | 1 Comment

Federal Home Loan Bank of San Francisco Sues Over RMBS Losses As Investor Actions Build Steam

Posted on March 17, 2010 by Isaac Gradman

One month ago, with the filing by the Federal Home Loan Bank of Seattle of eleven lawsuits against the major Wall Street creators of residential mortgage-backed securities (RMBS), I speculated that the floodgates of investor litigation may finally be swinging … Continue reading →

Posted in bondholder actions, Complaints, Federal Home Loan Banks, Grais and Ellsworth, incentives, investors, lawsuits, rescission, RMBS, securities, securitization, servicers, Wall St. | 7 Comments

Wikipedia Loan Modification Page Offers Concise Look at History and Current Programs, Ignores Government Failures

Posted on December 3, 2009 by Isaac Gradman

I get frequent questions about loan modifications and resources for learning more about available programs. Those interested in learning more about this subject at the heart of the current financial crisis should start with the Wikipedia page entitled “Loan Modification … Continue reading →

Posted in banks, Helping Families Save Homes, HOLC, Hope For Homeowners, incentives, loan modifications, Michael Barr, reflexive tactics, securitization, Takings Clause, TARP, Wikipedia | Leave a comment

Treasury Official Speaks Out About Excessive Risk Taking

Posted on October 24, 2009 by Isaac Gradman

At long last, someone in Washington is speaking out about the dangerous precedent set by the government bailouts of major banks. As discussed in this article on the financial regulations website FinReg21, Treasury secretary Michael Barr testified before the House … Continue reading →

Posted in bailout, executive compensation, Fannie Mae, Federal Reserve, Freddie Mac, Government bailout, incentives, Judiciary Committee, Lehman Brothers, Michael Barr, moral hazard, too big to fail, Treasury | Leave a comment

Latest Gatekeeper Litigation: City of San Buenaventura Sues Deloitte Over WAMU Subprime Collapse

Posted on June 24, 2009 by Isaac Gradman

Following on the heels of the lawsuits against KPMG by New Century’s debtors for contributing to the collapse of the mortgage giant, accounting firm Deloitte & Touche (D&T) and the officers and directors of Washington Mutual Bank (WAMU) have been … Continue reading →

Posted in accounting, auditing, Deloitte and Touche, Ernst and Young, gatekeeper litigation, incentives, KPMG, Lehman Brothers, loss causation, ratings agencies, subprime, WaMu | Leave a comment