It was the summer of 2007. We waited for mortgage lending to explode (or implode). If you recall, Bear Sterns had problems that shocked everyone, HSBC announced the first subprime mortgage losses, and Lehman Brothers said Lehman was not associated or affiliated with subprime borrowers.
Countrywide Financial Corp. has mailed checks for more than $3,000 to hundreds of Connecticut residents who lost or could lose their homes as a result of the company’s “abusive and unfair” home loan practices, Attorney General Richard Blumenthal said Monday.
Lucky for my readers, I went to “Charm School”. If not for that I’d be foaming at the mouth and posting obscenities. Now I say, “That’s NICE.” I received changes in terms from my credit card provider. My periodic rate raised 5% for new purchases. That’s NICE.
We receive input from many of you and we are wondering about Saxon Mortgage once again. It seems insurance companies bill Saxon well ahead of time, but 30 days later Saxon sends letters to the homeowner. The letters say that hazard insurance has not been paid. Yes, there may be a transition as Saxon becomes the servicer for other banks. Many realtors, however, tell us that Saxon has other issues.
The timing could not have been worse for AIG. I read the first story of the “Retreat” on the heels of the $85 billion and sympathized. AIG will not be able to win. Unlike naked short selling on the stock market, resorts and business actually have and reserve assets. Customers are not allowed to tie up an asset until the fashions or seasons change and they can then fill their position by paying sale prices. The outrage will be unanimous and AIG will be the butt of every joke. Incensed rhetoric of congress and the senate will be heaped upon them.