Monday, July 28, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

Dragging it out

By
From page A6 | January 25, 2013 |

Despite some signs of life in the real estate market, actions resulting from the Dodd-Frank legislation signed by President Obama will just drag things out. The result will be a mediocre real estate market and a mediocre recovery, both of which we are experiencing now. Expect more of the same going forward.

What does Dodd-Frank have to do with it? Among other things it created a so-called Consumer Financial Protection Bureau. And it gave the director of this bureau unlimited power to write his own rules and regulations, even retroactively. President Obama appointed Richard Cordray without the “advice and consent” of the Senate, which was in session at the time. Obama claimed the Senate was not in session, although it had not adjourned and was conducting minimal business each day during a July holiday period. Obama’s claim that the Senate was not in session self-qualified him to make a recess appointment — only good for a year.

Meantime in a year Cordray can do a lot of damage. Being a five-time undefeated Jeopardy! champion means he is bright, but we’re not sure his experience as Ohio solicitor general and later state treasurer are directly applicable to his current position.

His most recent pronouncement of note is rule making related to home foreclosures.

Banks and government-owned mortgage investors Fannie Mae and Freddie Mac “can no longer steer borrowers to those options that are most financially favorable for the servicer,” Democrat Cordray told an audience in Atlanta earlier this month.

As noted by Wall Street Journal writer Alan Ziebel, “The new mortgage rules are complicated, and the industry will likely need months to adapt.”

Though the rules don’t take effect for a year, indications are that foreclosures expected this month have not taken place as banks consult their legal staffs and establish procedures to meet the new regulations.

The regulations are complicated only because they just constitute a circular argument. 1. Foreclosure proceeding could not begin until a borrower is four months in arrears. This gives a borrower time to apply for help and prevents a bank from beginning foreclosure at the same time. 2. Within 15 days of a second missed payment banks must send borrowers information about alternatives to foreclosure and info on housing counseling. 3. Mortgage servicers cannot complete a foreclosure if a borrower submits an application for aid more than 37 days before the home is scheduled to be repossessed. That is where the circle is completed.

All a borrower need do is keep sending an application for aid every 37 days for repossession date. By that time the homeowner is no longer a borrower, but a squatter by government fiat. Keep those applications going and a person can stay in a house for a year or more without paying a dime — at least until the state authorizes selling the property for unpaid property taxes.

The rules seem like they would be helpful until one ponders No. 3. Then it seems apparent this will just drag things out, keeping the foreclosure wave slowly rolling along and keeping prices down for the rest of us. It would be far better to clear out all the foreclosures banks are holding onto and stop pandering to the mortgage-backed bond investors, who cry every time banks start clearing foreclosures off their books.

Comments

comments

Mountain Democrat

.

News

 
County’s chief lawyer: No Brown Act violation

By Chris Daley | From Page: A1

General Plan workshop today

By Chris Daley | From Page: A1

 
Two growth control initiatives get green light

By Dawn Hodson | From Page: A1

Sand Fire burns more than 4,000 acres

By Dawn Hodson | From Page: A1, 1 Comment | Gallery

 
Fatal accident in Camino

By Cole Mayer | From Page: A1 | Gallery

Agricultural Crop and Livestock Report released

By Ross Branch | From Page: A3

 
35 people displaced in Tahoe hotel fire

By Tahoe Tribune | From Page: A3 | Gallery

.

Opinion

The balancing act: Toxic waste spreads

By Larry Weitzman | From Page: A4, 2 Comments

 
Bee-ing silly

By Mountain Democrat | From Page: A4, 1 Comment

 
.

Letters

Letter to Speaker of the House

By Letters to the Editor | From Page: A5, 1 Comment

 
GDPUD misinformation

By Letters to the Editor | From Page: A5

At the crossroads

By Letters to the Editor | From Page: A5, 1 Comment

 
Want more water?

By Letters to the Editor | From Page: A5, 1 Comment

Refugee crisis

By Letters to the Editor | From Page: A5, 1 Comment

 
.

Sports

Camp experience is ‘priceless’

By Mike Bush | From Page: A6 | Gallery

 
Speedway races cancelled

By Democrat Staff | From Page: A6

El Dorado doubles up on Pro Players

By Mike Bush | From Page: A6 | Gallery

 
Under the Scoreboard: July 26, 2014

By Democrat Staff | From Page: A6

Schedule: July 28 – Aug. 2, 2014

By Democrat Staff | From Page: A6

 
Roundup: July 26, 2014

By Democrat Staff | From Page: A6

Local spiker shines

By Democrat Staff | From Page: A7

 
Sports Scene: July 26, 2014

By Democrat Staff | From Page: A7

.

Prospecting

A beautiful day at Wakamatsu Tea and Silk Colony Farm

By Cathy Barsotti | From Page: B1 | Gallery

 
Foothill gourmet: Things get corny

By Donna Brown | From Page: B2

Bipolar Insights: From point A to point B

By Marcia Rose | From Page: B2

 
Cool time at Cowboys and Cornbread

By Democrat Staff | From Page: B2 | Gallery

As we were: Recreation district grows

By Ken Deibert | From Page: B4

 
Cantare names new director

By Cantare Chorale | From Page: B10

 
After 5 Club to meet

By Senior Day | From Page: B10

.

Essentials

Divorces

By Charlotte Sanchez-Kosa | From Page: A2Comments are off for this post

 
DUI Log: June 25-July 9

By Cole Mayer | From Page: A2

Crime Log: July 14-16

By Cole Mayer | From Page: A2

 
.

Obituaries

.

Real Estate

.

Comics

Rubes

By Contributor | From Page: A8

 
New York Times Crossword

By Contributor | From Page: A8

TV Listings

By Contributor | From Page: A8

 
Speed Bump

By Contributor | From Page: A8

American Profile Crossword

By Contributor | From Page: A8

 
Tundra

By Contributor | From Page: A8

Horoscope, Tuesday, July 29, 2014

By Contributor | From Page: A8

 
Horoscope, Monday, July 28, 2014

By Contributor | From Page: A8

Shoe

By Contributor | From Page: A8

 
Sudoku

By Contributor | From Page: A8