Banks profit while tax payers suffer
Let me begin by saying I do not believe in hand outs. Especially to the people who take advantage of the system designed to help those in need. Responsibility lies with each person who applies for a loan or refinances their home. One must educate them self in order to understand risk. For some reason, few have learned the lesson of 2008. That said, Goldman Sachs quarterly profit doubled, beating Wall Street estimates by a wide margin, as the bank made more from investing its own money and from underwriting says CNBC.com the media giant known for misquoting 75% of its news.
Goldman’s net income rose to $1.86 billion, or $3.70 per share, in the second quarter from $927 million, or $1.78 per share, in the same quarter last year says CNBC.com today. Revenue in the bank’s fixed income, currency and commodities, or FICC, trading unit, which reflects income from client trading, rose 12 percent to $2.46 billion.
All this in the wake of serious questions regarding their underwriting guidelines for homeowners in trouble.
Here are just a few of the issues we find on a daily basis the banks have yet to address.
1. No process in place to confirm modification submission was received.
2. Employee’s leave or are re-assigned and their files just stay in limbo until someone realizes no one is working their files.
3. No accountability of when the file came in, so technically no start date for the mod process, that way when they are audited they can make it up.
4. Requesting updated documents via phone not mail, so there is no paper trail, and most people don’t return calls so the file goes dead.
5. Keeping the file under a certain code that has no time parameter, so the account manager has no open tasks to complete.
6. File is reviewed by a robot not a person, so specific details are missed, such as hardship for disability/death/newborn.
7. File notes are vague, so there is no accountability for anyone who reviews or touches the file.
8. No call logging, so they can’t confirm or deny that someone called for info/update.
9. Delaying valuations so that prices can increase during peak months.
10. Changing servicing close to approval, so file starts over for mod or short sale.
11. Changing investors during review, so file starts over due to new investor guidelines.
Maybe Elliott Spitzer should be re-elected as it seems he was the only one that had the balls to go after the big banks and challenge their fraudulent practices during the boom of 2004. Does it really matter who he has sex with? Today the banks have more power than ever and they are creative in the ways they leverage their profits. Illegal activities are more prevalent today, just in a different way. Instead of lending free money to people who don’t qualify and stealing their equity, they are foreclosing on homes that earn them the most profit, and only help the ones that don’t. The U.S. Attorney Generals have brought suit against many of the banks they bailed out and have received billions in fines. So where does all that money go?
Perhaps people should just stop borrowing so the banks will have less control over your money?
Until people stop using credit, nothing will change. IN ORDER TO CREATE CHANGE THE CAUSE MUST BE ADDRESSED. If you have loans or are being held hostage by your bank, take personal responsibility and get out of debt and end the cycle because no one will be able to stop the runaway train.
360 GROUP HAS OFFICIALLY CEASED TAKING ON ANY NEW FILES. WE WANT TO THANK ALL OUR CLIENTS OVER THE YEARS FOR PLACING YOUR TRUST IN US. WE WORKED VERY HARD FOR YOU AND TOGETHER WE HAD OVER 147 SUCCESSFUL FILES AND SAVED OVER $17 MILLION DOLLARS FOR OUR CUMULATIVE CLIENTS.
WE HOPE YOU WILL CONTINUE YOUR EFFORTS TO REDUCE DEBT AND SHARE OUR STRATEGIES WITH OTHERS.
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