I am asking all members of the Bank Innovation to join the petition Unitedinprosperity.org to bring change we can believe in stopping the Negative Equity Housing and Foreclosure Crisis creating a six billion dollar taxpayer free stimulus each and every month.
By enforcing the principle of capitalism ,existing law and the precedent set with a trickle up idea instead of a trickle down. Every negative equity homeowner became legally entitled to a consistent and similar financial advantage if it will avoid the investors negative equity loss as the 3.5 million modifications already did when the standard operating policy and procedure of “dont pay, be foreclosed on was changed to “modify instead of foreclosing” if modifying would avoid the investors negative equity loss from the difference in the distressed sales price of a potential or possible foreclosed negative equity property and the outstanding mortgage amount due. For a more detailed explaination, please visit the web site: http://unitedinprosperity.org
I felt your website, Bank Innovaton was one of the best avenue’s for informing the financial sector that a decision of whether they prefer to “wait it out” praying that across the board principal reductions never occur or would they rather be proactive in providing across the board interest rate reductions avoiding government interference and massive class action law suits.
I am surprised that more industry related personnel didn’t try to debate the issue or the rules. The OCC have adopted a number of the rules of the Negative Equity Streamlined Uniform Modification System in their consent orders with the banks, The 50 state attorneys generals are adopting even more of the rules in their settlement agreements with the banks, while protecting themselves with the statement that the servicer is prohibited from unfair, deceptive or abusive practices in the modificaton or foreclosure process. The law is simple, all similarly situated parties are legally entitled to a similar and consistent financial advantage, benefit, compensation, incentive whether it is a principal reduction or an interest reduction. The proposed settlement calls for principal reductions for a percentage of negative equity homeowners, and in a court of law that translates into a principal reduction for all similarly situated parties.