Banks Are Not Following Their Own Philosophy
The week of episodes is going to be committed to the staff and mindset at the bank. The week is full of magnificent content. It looks like it might be a fantastically informative week.
Martin Andelman, who is quickly becoming one of our favorite bloggers, wrote something quite interesting a month ago. In short, he told the tale of the Chief executive of the mighty Mortgage Bankers Association and how he expects house owners to not walk away from legal debts. This CEO was worried about the message this would send to their friends and family. What a great message to send!
There is only one minute quandary with that message. Last week, the MBA sold their headquarters building in Washington, D.C. for 41.3 million dollars. The only problem is that the 41.3 million dollars comes up a speck short when you bear in mind that the first mortgage was 75 million dollar. Back in 2007, when MBA purchased the building for 79 million, with only 4 million dollars down payment, it in all probability seemed like a fantastic investment to this CEO of MBA.
Nevertheless, he didn’t follow his own suggestion. Given his recent statements to residence owners about simply paying the mortgage that is their lawful debt, it would appear that this Chief executive is a bit of a fraud. Just last year he pointed out that defaults damage neighborhoods. Furthermore, it was also recently uncovered that MBA also defaulted on their payments and secured a forebearance agreement previous to the short sale.
If the actions of the bank show you that you can strategically default, it is safe to assume that you can strategically default.
Hopefully, after hearing this installment you realize that Martin Andelman’s blog is worthy of reading on a daily basis. It is recurrently crammed with great subject matter.
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