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Economic News

JP Morgan Chase Loan Modification? FAIL!



FAILIf you haven’t already heard, David Lowman, Chief Executive Officer of the Global Mortgage business at JP Morgan Chase was on Capitol Hill Tuesday to answer questions before lawmakers.  Barney Frank asked him directly who homeowners could turn to if they felt that bank employees were not helping them to try and save their homes.  Anyone wanna guess what he said?

“Come To Me.” says David Lowman, chief executive for JPMorgan Chase

Well, Davie got what he asked for because little did he know that Neighborhood Assistance Corporation of America (NACA) had dozens of representatives and supporters in the audience.  Immediately after the hearing adjourned, one of the representatives from NACA presented Lowman with a 6-page document alleging his bank reneged on a pledge to help struggling homeowners.

You see, NACA is an advocacy group that, among other things, tries to help people get loan modifications successfully completed with their banks.  Chase signed up to participate in the NACA program, but decided to change their minds and drop out in December.

You would have thought that Lowman would have taken a minute to live up to his words, but unfortunately he decided to get out of the room as quickly as possible rather than stand behind the words he had spoken only moments earlier.

I don’t necessarily agree with all of NACA’s ideologies and methods of operation, but I’m proud of them for at least making the attempt to stand up for struggling homeowners and trying to force David Lowman to be true to his word.  At the end of the day, loan modifications are simply not profitable for banks, and Lowman was a model example of why people hate banks these days.  Who can blame them?

Video of David Lowman testifying to Barney Frank and NACA confrontation:

I'm a Realtor in Southern Maryland. I grew up surrounded by the RE business, spent time as an actor, worked as a theatrical designer and technician, and took the road less traveled before settling down in real estate. I run my own local market website at and when I'm not at the office or meeting clients, I can usually be found doing volunteer work, playing with my 3 rescued shelter dogs (Help your local Humane Society!), or in the garage restoring antique cars.

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  1. Mike

    April 15, 2010 at 8:06 am

    I have a freind that was finally able to close a home purchase with NACA. I could not beleive the stories that he was telling me about how unprofessional and clueless they are. It took him 6 months just to get approved. Then the fun really began. They constantly lost paper work, would not communicate, were smug, and overall, very unprofessional.
    Generally NACA loans money to low income families with bad credit, and there is no down payment, and they pay closing costs. It’s not much different than Ameridream and those other scams that put high risk people into homes that they otherwise could not afford. It sounds like 2003 all over again.
    BTW, my freind used NACA, only because after a divorce, he had no money left, and naturally the ex wife got the 2600 square foot home. He has excellent credit, and he felt like they almost held it against him.
    IMO, NACA has no right to throw stones.

  2. Missy

    April 15, 2010 at 8:37 am

    One word, FAIL.

  3. David F. Nelson

    April 24, 2010 at 3:41 pm

    I live in Torrance, California and have been working directly with Chase for almost a year to get a loan mod. I have a first mort. and an equity line. During the pit of the recession last year we could not keep our payments current. I did get a lower payment with a trial loan mod on the 2nd, but later learned that instead of giving me a break on the rate, they were charging me my old rate and just adding the overage onto my balance. The attempt at a mod on the 1st was a total farce. After spending around 30 hours gather info., running to Office Depot to make copies and send faxes, etc. they delayed responding to my many inquiries. After about two months I was told they lost my file and casually suggested I start over from the beginning. Which I did and after months and dozens of calls asking for the results of my application I had gotten nothing but the run around. By this time I was making my payments again and was only asking that they forgive me my missed months and bring the load current adding the missed payments onto the loan balance. Long story short after 9 months I got a letter saying my mod attempt had expired for lack of current info. and was told I would have to start again from the beginning.

  4. mike gennaro

    May 26, 2010 at 4:01 am

    the story is the same, lost paperwork and never able to speak with someone that could make a decision. they took a year to deny me and said i needed to get current get caught up on payment($22,000). they also reported me delinquent and ruined my credit making it difficult to refi. how do people like this sleep at night. i have hired an attorney and we will see were that goes.

  5. pamela McIntosh

    July 29, 2010 at 10:24 pm

    Yes the same thing happen to me the had me to pay for five months then told me i was denied and had to come up with about twenty tw thousand in thirty days im going to my lawyer and i worked therw hope too i dont know what to do

  6. francisco sanchez

    August 1, 2010 at 12:57 am

    I am passing for the same situation after 7 months the waiting for an answer to modify my loan, and failed… so we do not have the money to pay for the months that we owe and I don’t know what I should do to keep my house were we have lived for almost 10 years with 5 kids… please help me figure this problem out and reply at my email address.Thank You

  7. Gary Grazioso

    October 25, 2010 at 12:46 pm

    My story is very much the same as many mentioned here.
    My question is, or maybe even my suggestion is this:
    Can WE and or should we as a group of loan holders with JP Morgan Chase file a class-action law-suit against these loan modification lying criminals?
    This is outrageous. We’re the good guys here; they’re the bad guys.
    We taxpayers have bailed out these corrupt banking institutions via (Tarp) and all we’ve gotten in return is unforefilled promises and lies.
    JP Morgan Chase dragged me through the mud for over a year and a half and at the end of it all they tell me I do not qualify for modification because they do not consider my circumstances to be a “HARDSHIP”.
    I had kidney failure. I was on kidney dialysis for three years before I finally got a new kidney. Along with kidney failure I had to have heart surgery because of complications of this disease… but JP Morgan Chase did not consider my circumstances to be a “HARDSHIP”. Are you kiddding me ? What do they call a hardship???
    After surgery It took a full year to get back on my feet and because of the banking system failures and the Wall Street bail-outs and the unemployment mess I was not able to find work throughout the entire year and a half falsehood modification process. I’m still looking for work. I’m presently three months behind on my mortgage and my property taxes are due. I have no idea how I am going to survive.
    J P Morgan Chase has destroyed my life. They have totally destroyed my credit.
    My life is filled with stress and uncertainty and someone (JP Morgan Chase) should pay for all the heartache and pain this monster bank created for ALL of US.
    We played by all their rules while all of that time we were being played by them.
    Please, there has to be someone out there that is willing to help us.
    Our government officials have betrayed us with nothing more then their lies while all of the time all they are interested in is OUR votes for their own political gains.
    People like Barney Frank and Christopher Dodd, a.k.a Fannie & Freddie became wealthy on our dime. They too lied to all of us.
    Now this very same criminal banking system is making money on our misfortune and our home foreclosures. This is not by chance. This is their plan. This is their corruption.
    They don’t want to bail us out. They want our homes. They want us to fail.
    All of our stories should be heard by “Truth-in-Lending” attorney’s who have the courage to stand up for what is right. It’s time for something to be done about this.
    Maybe there’s some still ONE honest attorney out there who could take our case to the Supreme Court.
    An entire transparent investigation needs to be performed via looking into the corrupt banks and crooked politicians who created this whole mess to begin with.
    Somebody, …. Please respond to this request.

    • Cindy

      September 21, 2011 at 3:10 pm

      I will happily try and get a class action suit filed! We have had the same exact story as all of these folks!
      Its a frustrating, JOKE!!

  8. Gary Grazioso

    October 25, 2010 at 12:59 pm

    What can be done about this ?
    Is there any help for us?

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Economic News

Is the real estate industry endorsing Carson’s nomination to HUD?

(BUSINESS NEWS) Ben Carson’s initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now?



NAR strongly backs Dr. Carson’s nomination

When President-Elect Donald Trump put forth Dr. Ben Carson’s name as the nominee for Secretary of Housing and Urban Development, NAR President William E. Brown said, “While we’ve made great strides in recent years, far more can be done to put the dream of homeownership in reach for more Americans.”

At the time of nomination, the National Association of Realtors (the largest trade organization in the nation) offered a positive tone regarding Dr. Carson and said the industry looks forward to working with him. But does that hold true today?

The confirmation hearings yesterday were far less controversial than one would expect, especially in light of how many initially reacted to his nomination. Given his lack of experience in housing, questions seemed to often center around protecting the LGBT community and veterans, both of which he pledged to support.

In fact, Dr. Carson said the Fair Housing Act is “one of the best pieces of legislation we’ve ever had in this country,” promising to issue a “world-class plan” for housing upon his confirmation…

>>>>>Click to continue reading…<<<<<


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Economic News

Job openings hit 14-year high, signaling economic improvement

The volume of job openings is improving, but not across all industries. The overall economy is improving, but not evenly across all career paths.



young executives

job openings

Job openings hit a high point

To understand the overall business climate, the U.S. Labor Department studies employment, today releasing data specific to job vacancies. According to the department’s Job Openings and Labor Turnover Survey (JOLT) for April, job openings rose to 5.38 million, the highest seen since December 2000, and a significant jump from March’s 5.11 million vacancies. Although a lagging indicator, it shows strength in the labor market.

The Labor Department reports that the number of hires in April fell to 5 million, which indicates a weak point in the strong report, and although the volume remains near recent highs, this indicates a talent gap and highlights the number of people who have left the labor market and given up on looking for a job.

Good news, bad news, depending on your profession

That said, another recent Department report notes that employers added 221,000 jobs in April and 280,000 in May, but the additions are not evenly spread across industries. Construction jobs rose in April, but dipped in professional and business services, hospitality, trade, and transportation utilities. In other words, white collar jobs are down, blue collar jobs are up, which is good or bad news depending on your profession.

Additionally, the volume of people quitting their jobs was 2.7 million in April compared to the seven-year high of 2.8 million in March. Economists follow this number as a metric for gauging employee confidence in finding their next job.

What’s next

If you’re in the market for a job, there are an increasing number of openings, so your chance of getting hired is improving, but there is a caveat – not all industries are enjoying improvement.

If you’re hiring talent, you’ll still get endless resumes, but there appears to be a growing talent gap for non-labor jobs, so you’re not alone in struggling to find the right candidate.

Economists suspect the jobs market will continue to improve as a whole, but this data does not pertain to every industry.


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Economic News

Gas prices are down, so are gas taxes about to go up?

Do low gas prices mean higher gas taxes are on the way? Budgeting for 2015 just got a bit more complicated, if some politicians have their way.



gas tax


Gas taxes and your bottom line

Many industries rely heavily on time in their vehicle, not just truck drivers and delivery trucks. Sales professionals hop in their vehicles throughout the day, as do many other types of professionals (service providers like plumbers, and so forth). For that reason, gas prices and taxes are a relevant line item that must be budgeted for 2015, but with politicians making the rounds to push for higher gas taxes, budgeting becomes more complicated.

Gas prices are down roughly 50 cents per gallon compared to a year ago, which some analysts say have contributed to more money in consumers’ pockets. Some believe that this will improve holiday sales, but others believe the timing is just right to increase federal taxes on gas. The current tax on gas is 18.40 cents per gallon, and on diesel are 24.40 cents per gallon.


Supporters and opponents are polar opposites

Supporters argue as follows: gas prices are low, so it won’t hurt to increase federal gas taxes, in fact, those funds must go toward improving our infrastructure, which in the long run, saves Americans money because smoother roads mean better gas mileage and less congestion.

Gas taxes have long been a polarizing concept, and despite lowered gas prices, the controversial nature of the taxes have not diminished.

While some are pushing for complete abolition of federal gas taxes, others, like former Pennsylvania Governor, Ed Rendell (D) tell CNBC, “Say that cost the average driver $130 a year. They would get a return on that investment” in safer roads and increased quality of life, he added.

The Washington Post‘s Chris Mooney points out that federal gas taxes have been “stuck” at 18 cents for over 20 years, last raised when gas was barely a dollar a gallon and that the tax must increase not only to improve the infrastructure, but to “green” our behavior, and help our nation find tax reform compromise.

Is a gas tax politically plausible?

Mooney writes, “So, this is not an argument that a gas tax raise is politically plausible — any more than a economically efficient tax on carbon would be. It’s merely a suggestion that — ignoring politics — it might be a pretty good idea.”

Rendell noted, “The World Economic Forum, 10 years ago, rated us the best infrastructure in the world,” adding that we “need to do something for our infrastructure, not in a one or two year period, but over a decade.”

Others would note that this rating has not crumbled in just a few years, that despite many bridges and roads in need of repair, our infrastructure is still superior to even the most civilized nations.

Regardless of the reasons, most believe that Congress won’t touch this issue with a ten-foot pole, especially leading up to another Presidential campaign season starting next year.

“I think it’s too toxic and continues to be too toxic,” Steve LaTourette (the former Republican congressman best known for his close friendship with his fellow Ohioan, Speaker John Boehner) tells The Atlantic. “I see no political will to get this done.”

Whether the time is fortuitous or not, and regardless of the positive side effects, many point to a fear of voters’ retaliation against any politician siding with a gas hike, so this matter going any further than the proposal stage is unlikely.

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