* A stimulus of six billion dollars each and every month for the next 1-30 years for Main Street that doesn't cost the taxpayer one cent.
Can only be accomplished by the necessity removal of the "fox from the hen house" to an independent and neutral 3rd party modification provider, the Negative Equity Streamlined Uniform Modification System with ONE set of clear, concise, and transparent rules and guidelines, that will be published on each individual servicers web site, as a true free market capitalistic response to the negative equity housing and foreclosure crisis.
It is past time for Wall Street to play by the rules and stop playing the numbers game with homeowners. The numbers game is if there are 10 negative equity homeowners that don't know they are legally entitled to a modification or do know but they don't have the financial resources to sue for enforcement of their rights and only 3 are delinquent, according to Wall Street that means the problem is REALLY only 3 homeowners, one might receive a modification, one might self cure themselves with the threat of foreclosure, and one might default, those odds are pretty good to continue the current numbers game, after all 7 negative equity homeowners are being forced to continue paying their higher mortgage payments ensuring a higher profit margin to the financial industry regardless of the law and as another 1 or 2 homeowners default, maybe give another one a modification and foreclosed on the other one, and the cycle continues as more homeowners become underwater. That's the future of housing without the Negative Equity Streamlined Uniform Modification System.
The financial industry signed consent orders with the OCC, who borrowed a few of the ideas of the program without any of the pre-determined penalties involved. Bottom line is the violations occurring wouldn't have been able to occur IF there was a system or regulator in place over-seeing the mortgage servicing industry. There were seven governmental agencies that were directly responsible to hold the financial industry accountable and to enforce the law that would have prevented the massive violations that occurred as a result of the built in conflict of interest between the servicers and the investors different financial interest. We don't need another governmental agency, the Consumer Financial Protection Bureau, (CFPB) with no teeth, what we need is a National Standard Modification System to hold banks legally accountable for their actions with existing homeowners. Let the CFPB collect the fines imposed from the NESUM system and provide consumer protections that the financial meltdown doesn't happen again. There is a saying, closing the barn door if it is empty is useless.
The utilization of the Negative Equity Streamlined Uniform Modification System addresses and corrects the INCONSISTENCIES such as why two homeowners with the same amount of negative equity does not receive the same financial advantage to remain a negative equity homeowner avoiding the investors negative equity loss when the social economic status of the homeowner (income) does not change the investors financial loss or the homeowners financial loss.
* The utilization of the Negative Equity Streamlined Uniform Modification System (NESUMS) enforces the principles of capitalism in
recognizing that all homeowner purchased for the same basic capitalistic reasons, as a place to live and possibly raise their family
for the opportunity to own the American Dream, the largest single asset of most homeowners building their own wealth. For the
homeowners who borrowed the funds to purchase or refinanced with a mortgage product from investors, both the homeowners
and the investors of mortgages had an unspoken implied reliance that as the mortgage debt is paid down the homeowners
ability to build their own equity (future wealth) increased, which is the only capitalistic reason for purchasing a home instead of
renting. The financial industry understood and recognized that owning a negative equity home places the negative equity
homeowner AND the investor in a financially losing proposition, which is why the rules were capitalistically changed exclusively for
negative equity homeowners to avoid the investors negative equity loss.
* The utilization of the Negative Equity Streamlined Uniform Modification System addresses the loss of the implied equity building for the negative equity homeowners with an exclusive matched equity principal pay down option versus the principal reductions being called for to overcome the financial injury sustained to the chosen few negative equity homeowners.
* The utilization of the Negative Equity Streamlined Uniform Modification System (NESUMS) enforces the systemic right of a negative
equity homeowners ability to obtain a modification regardless of who holds the note, who the servicer is, or what group of
investors are involved in a mortgage backed security or even what the servicers and investors pooling and servicing agreements
state, by the equal enforcement of the newly created legal precedent (right) that is not changed based on above of the above factors. Infact
in the eyes of the law, the underlying or primary contract is the foundation that any secondary contract is built on and violating
the rights of the first contract makes the secondary contract unenforceable.
* The utilization of the Negative Equity Streamlined Uniform Modification System forces all industry participants to operate within the
law they are not just "expected" to self police themselves to abide by the rules and laws of the land, they are forced to or penalized. . The ability to "pick and choose" what law, statue, or ordinance to follow or who benefits is eliminated with the:
The most basic rule of the Negative Equity Streamlined Uniform Modification System THAT No foreclosure may occur until it is determined in writing by the Negative Equity Streamlined Uniform Modification System :
1) If ELIGIBILITY exists, then the offer of a similar consistent financial incentive will be provided to the negative equity homeowner. There are only two possible outcomes; 1) the homeowner accepts the modification preventing an unnecessary foreclosure or 2) proof must be supplied to the courts that the homeowner refused to be similarly modified by the Negative Equity Streamlined Uniform Modification System as the 3rd party intermediary before a foreclosure may proceed. There is no more playing the "free rent"game, "let me get your last dollar"game, "I'm waiting for a principal reduction" game or a "free" house due to incompetent titles issues or differences in the modification offered, if the homeowner refuses the national standard modification offered, a foreclosure occurs within a reasonable amount of time.
2) If there is sufficient equity as proven and supplied by the Negative Equity Streamlined Uniform Modification System, as the 3rd party intermediary, the servicer has the legal right to proceed with the foreclosure without any further mediation unless the homeowner falls within an "exception" as stated on the rules page but the equity homeowners’ legal rights, choices and options to sell or refinance will remain in effect until a foreclosure does occur outside of any legalities resulting from MERS, if applicable. (homes with sufficient equity do not decrease housing values)
The intended benefit of proactively using the Negative Equity Streamlined Uniform Modification System is the elimination of the LEGAL moral hazard attitude from existing since all similarly situated homeowners will be treated equally. But most importantly avoids the legal RIGHT of negative equity homeowners to file massive class action law suits or civil suits demanding principal reductions to the current appraised value because they weren't OFFERED a NATIONAL uniform fair modification when they HAVE negative equity, THAT A COURT OF LAW WOULD PROVIDE. Class actions law suits would literally cripple Wall Street, requiring another larger taxpayer paid bail out from the court imposed penalties and fines involved from the open violations of various laws and statues occurring BESIDES FOR WIPING OUT THE NUMEROUS PENSION FUNDS INVESTED IN THE MORTGAGE INDUSTRY.
Instead servicers would have their own computerized partner web site offering all interested negative equity homeowners a similar financial incentive without principal reductions or inducing the expense of hiring and training additional employees and could prove the total elimination of any conflict of interest. The Negative Equity Streamlined Uniform Modification System randomly assigns every homeowner their own personal referee to handle the modification from start to finish, as well as giving the homeowner the choice to "pick" from referee's in their immediate area. Both avenues of obtaining referee's has a built in hierarchy of team members to ensure compliance and handle discrepancies or complaints in a very specific manner as outlined in the Operations and Training Manual, there is no favoritism. Another benefit is the utilization of our exclusive web based tracking system, available 24/7 for homeowners and investors alike to check the status of their modification with a multi lingual referee staff located within the United States to answer any questions.
The additional benefits of utilizing the Negative Equity Streamlined Uniform Modification System occur naturally by enforcing the law of the land that all similarly situated parties are entitled to a similar financial incentive/benefit to remain in a similarly situated position.
**The spending power of all modified negative equity homeowners increases as their mortgage payments are reduced financially benefiting all other industries.
**Leading industry researchers predict that housing values will decrease another 10-25% approximately doubling the amount of negative equity homeowners from 23% to 48%, then the taxpayer free stimulus will exceed 12 billion dollars each and every month fueling our economy.
** Investors earn less in profits but receive back their full principal balance on EXISTING homeowners with a national standard modification system reducing the length of time for the negative equity housing and foreclosure crisis to occur that stabilizes housing values quicker.
* * Predetermined penalties and fines for the injustices that have occurred financially benefiting the injured parties.
**There will be increases to our local and state sales tax revenues from the increased cash availability of the modified homeowners in a” trickle up “effect
**The return of long termed economic stability from the creation of more sustainable housing payments and values that does not exceed the median borrowers income ensuring that our children will be able to afford a home of their own.
**For every modified homeowner the recording fee would be paid into the local court reporting revenues
**The creation of hundreds of thousands of full and part time industry related jobs (FIRE) for the next 3 years and those employees increase our revenues by paying into the federal, state and possibly local tax revenues
**The number of non industry related jobs created by the increased spending power that also pays income taxes boosting overall confidence with the increased employment rate possibility aiding in easing the general public’s current uncertainty about their individual future and the frugal state of mind that has taken hold is actually unknown but it would increase .