And just b/c no one would buy toxic assets without a guaranteed profit doesn't make it OK for taxpayers to have to bear any part of it.

I don't ask my government to help us avoid crisis…I ask them to govern fairly, according to the U.S. Constitution and not to take liberties outside it. I ask them to protect my freedoms, not remove them from me in the name of security and safety. I ask them to let a free market run it's course, not bail out a sinking ship.

And as for avoiding another depression, I'd say the cards are still out on that one, my friend. I'm not convinced yet. We'll see.

Thanks for commenting!

…jp

The numbers are way off and only 7% of the loans OneWest services are under this agreement. Probably the reason they have removed the video.

People want their govt to act to avoid crises and when they do they complain that the solution is worse than the problem. It's easy to complain now, now that we have avoided a financial meltdown on par with the great depression…and this is not giving credit to any one administration because Bush started the policies which helped bring back confidence to the markets, Obama is simply continuing those policies.

But the first thing I thought when I saw the video was, what investor in their right mind would buy these bad loans (aka toxic assets) WITHOUT some kind of guarantee from the FDIC or someone that it would be profitable for them?

None of us would…
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Indy/Mac OneWest Internet Video

You may have received a video that was circulating recently on the internet alleging that FDIC’s loss sharing agreement with OneWest, the successor to IndyMac Bank, disadvantages short sales. Below is the response from the National Association of REALTORS® (NAR) to this allegation, which is false.

FDIC Response to IndyMac/OneWest Internet Video

On Friday afternoon, NAR contacted the FDIC regarding the viral video circulating amongst the real estate community regarding the FDIC's loss sharing agreement with OneWest, the successor to IndyMac Bank. As many of you know, an earlier charge had been levied that the FDIC deal disadvantaged short sales. NAR contacted FDIC and they promptly debunked the charge. FDIC was equally quick to respond to NAR's request this time as well, issuing the statements below on Friday evening and taking strong exception to the charges in the video. Furthermore, FDIC Chair Sheila Bair personally called NAR CEO Dale Stinton on Friday to discuss the matter. We believe the strong statement should put to rest the charges levied in the video.

Press Release

FDIC Provides Additional Information on its Loss Share Agreement With OneWest Bank
February 12, 2010

FDIC Director of Public Affairs Andrew Gray said, “It is unfortunate but necessary to respond to blatantly false claims in a web video that is being circulated about the loss-sharing agreement between the FDIC and OneWest Bank. Here are the facts: OneWest has not been paid one penny by the FDIC in loss-share claims. The loss-share agreement is limited to 7% of the total assets that OneWest services, and OneWest must first take more than $2.5 billion in losses before it can make a loss-share claim on owned assets. In order to be paid through loss share, OneWest must have adhered to the Home Affordable Modification Program (HAMP).

The producers of this video perpetuate other falsehoods. The FDIC has not requested to borrow money from the Treasury Department. Indeed, we continue to be funded by the banking industry through assessments, not by taxpayers as claimed in the video.

This video has no credibility. Regardless of the personal or professional motivations behind its production, there is always a responsibility to be factually correct and transparent. The FDIC made available a fact sheet on the day that the sale of IndyMac was announced that details the terms of the contract. It's too bad that the creators of this video opted to premise it on falsehoods.”

Supplemental Facts about the Sale of Indymac F.S.B. to OneWest Bank

** IndyMac was competitively bid. After analysis, the acquisition by OneWest represented the least cost transaction to the Deposit Insurance Fund.
** OneWest not only acquired assets, but also assumed the liabilities of the insured deposits, Federal Home Loan Bank Advances, and amounts owed the FDIC
** OneWest has assumed a first loss position on a portfolio of qualifying loans where they take the first 20% of losses before any loss share payments are made. This is a first loss position of over $2.5 billion.
** The FDIC has yet to make a single loss share payment to OneWest.
** In its agreement with FDIC, OneWest is required to adhere to a loan modification protocol for single family loans that meets the approval of the FDIC. If the FDIC determines that OneWest is in violation of this agreement, then the FDIC can repudiate the loss share claims on the covered loans.
** FDIC has authorized OneWest to service single family loans under the Home Affordable Modification Program. It applies to all owner-occupied homes and requires OneWest to:
* follow HAMP procedures to develop affordable loan modification terms for the borrower
* determine whether the recovery on a modified loan is higher than the recovery from a short sale or foreclosure
* modify the loan using HAMP guidelines if the recovery of a modification is higher than the recovery of a short sale or foreclosure
* loss share coverage cannot be factored into any recovery calculation for loan modification, short sale or foreclosure.
* The FDIC monitors OneWest's compliance with their adherence to the FDIC Mortgage Loan Modification Program and OneWest's commitments under the asset sale agreement.
* Only 7% of loans OneWest services are owned by OneWest and covered under loss share. Other institutions own the remaining 93% of loans OneWest services. These loans are required to be serviced in accordance with the owner institutions' agreements with OneWest.

Thanks,

…jp

Indy/Mac OneWest Internet Video

You may have received a video that was circulating recently on the internet alleging that FDIC’s loss sharing agreement with OneWest, the successor to IndyMac Bank, disadvantages short sales. Below is the response from the National Association of REALTORS® (NAR) to this allegation, which is false.

FDIC Response to IndyMac/OneWest Internet Video

On Friday afternoon, NAR contacted the FDIC regarding the viral video circulating amongst the real estate community regarding the FDIC's loss sharing agreement with OneWest, the successor to IndyMac Bank. As many of you know, an earlier charge had been levied that the FDIC deal disadvantaged short sales. NAR contacted FDIC and they promptly debunked the charge. FDIC was equally quick to respond to NAR's request this time as well, issuing the statements below on Friday evening and taking strong exception to the charges in the video. Furthermore, FDIC Chair Sheila Bair personally called NAR CEO Dale Stinton on Friday to discuss the matter. We believe the strong statement should put to rest the charges levied in the video.

Press Release

FDIC Provides Additional Information on its Loss Share Agreement With OneWest Bank
February 12, 2010

FDIC Director of Public Affairs Andrew Gray said, “It is unfortunate but necessary to respond to blatantly false claims in a web video that is being circulated about the loss-sharing agreement between the FDIC and OneWest Bank. Here are the facts: OneWest has not been paid one penny by the FDIC in loss-share claims. The loss-share agreement is limited to 7% of the total assets that OneWest services, and OneWest must first take more than $2.5 billion in losses before it can make a loss-share claim on owned assets. In order to be paid through loss share, OneWest must have adhered to the Home Affordable Modification Program (HAMP).

The producers of this video perpetuate other falsehoods. The FDIC has not requested to borrow money from the Treasury Department. Indeed, we continue to be funded by the banking industry through assessments, not by taxpayers as claimed in the video.

This video has no credibility. Regardless of the personal or professional motivations behind its production, there is always a responsibility to be factually correct and transparent. The FDIC made available a fact sheet on the day that the sale of IndyMac was announced that details the terms of the contract. It's too bad that the creators of this video opted to premise it on falsehoods.”

Supplemental Facts about the Sale of Indymac F.S.B. to OneWest Bank

** IndyMac was competitively bid. After analysis, the acquisition by OneWest represented the least cost transaction to the Deposit Insurance Fund.
** OneWest not only acquired assets, but also assumed the liabilities of the insured deposits, Federal Home Loan Bank Advances, and amounts owed the FDIC
** OneWest has assumed a first loss position on a portfolio of qualifying loans where they take the first 20% of losses before any loss share payments are made. This is a first loss position of over $2.5 billion.
** The FDIC has yet to make a single loss share payment to OneWest.
** In its agreement with FDIC, OneWest is required to adhere to a loan modification protocol for single family loans that meets the approval of the FDIC. If the FDIC determines that OneWest is in violation of this agreement, then the FDIC can repudiate the loss share claims on the covered loans.
** FDIC has authorized OneWest to service single family loans under the Home Affordable Modification Program. It applies to all owner-occupied homes and requires OneWest to:
* follow HAMP procedures to develop affordable loan modification terms for the borrower
* determine whether the recovery on a modified loan is higher than the recovery from a short sale or foreclosure
* modify the loan using HAMP guidelines if the recovery of a modification is higher than the recovery of a short sale or foreclosure
* loss share coverage cannot be factored into any recovery calculation for loan modification, short sale or foreclosure.
* The FDIC monitors OneWest's compliance with their adherence to the FDIC Mortgage Loan Modification Program and OneWest's commitments under the asset sale agreement.
* Only 7% of loans OneWest services are owned by OneWest and covered under loss share. Other institutions own the remaining 93% of loans OneWest services. These loans are required to be serviced in accordance with the owner institutions' agreements with OneWest.

REPUBLICAN/DEMOCRAT WE ALL LOSE!!!