I have been very fortunate to have reporters quote me accurately. But this is stretching it – Forbes called a few weeks ago looking for my thoughts, and while I did say the things below, I said, “I don’t do loan mods, you need to speak to people that do them”.
Today they have this on their website:
In his 25 years as a real estate agent, Jim Klinge has seen plenty of borrowers try to work the system, especially in subprime-scourged North San Diego, where he works and lives. Like many in his industry, he says the Obama administration’s $75 billion loan modification plan is giving rise to another bout of fraudulent mortgage activity. “With all certainty, it’s being gamed,” he says.
I don’t have any specific examples of people doing fraudulent acts to obtain loan modifications. I would think that an in-depth story would state specific examples from those employed in the business. If you can’t find any, then don’t use just the thought as a headline.
The link to the full article:
http://www.forbes.com/2009/08/06/mortgage-modification-obama-business-washington-housing.html
You were the lead paragraph, too. I think after the Nightline piece you might be the go-to guy for anything bubble-related, even if it’s not directly related to the buying and selling of real estate, and they don’t realize that particular nuance. Quite a thin article without specific examples, just like you said.
Keep up the good work and don’t let the world get you down! 🙂
First they ignore you, then they laugh at you, then they fight you, then you win.
From where I sit, if anyone is gaming Obama’s Home Affordable Modification Plan (HAMP), it is the servicers/banks themselves. The servicers keep reporting to the government that they are actually implementing trial modifications under the plan. My experience is that to even get a servicer to consider getting a payment lowered to 31% front end DTI under the HAMP modification guidelines (admittedly, non FNMA/FMAC owned or guaranteed mortgages) is like pulling teeth out of an angry elephant.
Wachovia just released that 2.2% of their eligible loans have been started on trial HAMP modifications. According to my conversation with their loan servicing department as of yesterday, they only started processing HAMP modifications for FNMA/FMAC loans last week, and have not yet started processing non FNMA/FMAC loans.
I don’t think that is what they are telling the government.
Speaking of media people…what happened to Zach Fox from the NCT (North County Times)? He had some interesting articles on the housing market/industry in the area and quoted you many times over the last 2-3 years JIm.
Have you called to ask him why he misconstrued what you said? Perhaps he can print a retraction or clarification.
Don’t let them get you down, Jim. You’re doing a great job, and that’s why the MSM has been coming to you for your opinions. Everyone who’s ever been quoted in the press understands how things are often quoted out of context, or mis-quoted all together.
BTW, how did your tournament go the other day?
“With all certainty, it’s being gamed…”
…and in other equally noteworthy news, the sun rose in the east and set in the west, and Mars was determined to be the fourth planet in the solar system.
I swear to God, it is the people who can’t do anything useful for society or think indepdently become journalists.
hey! Not all journalists are totally lame!
Jim,cheer up the MSM can change “of course I love my Mother” to “Klinge admits incest” without batting an eye.
Jim, you’ll be on “OPRAH” soon! Better yet…CNBC? FOX?
I’ll never forget while I was in the Army when President Reagan sent us to Honduras as a show of force after Nicaragua crossed the border. Well, I was interviewed by a news paper reporter who was asking a lot of questions and at the end of the interview I was asked if I missed my family. To which I responded, “Sure, I miss my Mom.” Well, that was the quote used leaving out the “Sure” part. I never heard the end of that crap! “So, you miss your Mommy?” Lesson learned!
Jim, this is why the internet + the blogs, was a natural.
The blogs exploded because the newspapers lost their credibility. Corporate media wouldn’t report accurately what was going on, so people had to correct it themselves.
Newspapers, as a whole, still do a decent job of documenting much of the stuff around us. You know like, that building is going up, or that one is coming down. But the great competitive news business of decades past, where many cities had two or more daily papers, is gone. With it went the duty, that took many decades to build, to put the public’s interest before anything else. For the best papers, getting is right was the first order of business. Editorial sloppiness is just one of the many things that has gone down hill in the journalism business.
Our local paper, the AJC, has a real estate section that carried not a single article about the impending housing crash in the 2003-2007 period. They have a local realtor who has had a weekly column in that section for at least a decade. For him, good times, bad times, it’s always a good time to buy.
The AJC’s blindness is what sent me to the web and the blogs. That’s how I found your site.
I ran into a San Diego Tribune reporter at the Encinitas Coaster station. She was interviewing people for a story on the Coaster ridership. We ended up discussing where I get my local and national news and I told her my reader kept track of 20 plus website with the majority being blogs regarding economy, real estate, banking and commerce. She fired back saying blogger sites are full of non verified content which leads to public misinformation and I shouldn’t waste my time.
Punch in your zip code to see the distress in your neighborhood of choice…
http://maps.google.com/maps?f=q&source=embed&hl=en&geocode=&q=&mrt=realestate&sll=40.78886,-73.968201&sspn=0.103975,0.205994&attrid=ee6d68e1e5cb9843_&ie=UTF8&radius=5.39&rq=1&ev=zi&t=h&ll=40.763121,-73.9991&spn=0.104015,0.205994&z=12
When you zoom out, it looks like a fungus or some sort of disease in certain areas.
But don’t you know the economic crisis is over and housing has bottomed and the deficeit is under control and everyone wants to buy our US treasuries and interest rates will go lower than zero and Little Timmy Geithner isn’t a wimpy gay bath-house towel boy and Helicopter Ben is through printing money and Greedspan is a nice man, Bus IS Smart, Cheny is not Darth Vader and Chaiman MaoBama is not a fascist…? Gee Jim, get with The Program and come on the MSM Team for the Big Win…
Oops, apologies for not previewing: sp Bush, Cheney, Chairman, et.al. Well, anyone that can spell only one way is Not a flexible person…
Have a Great Depression Weekend All and Thanks Jim for the usual excellence!
That’s nothing. I work in a fairly esoteric area of institutional finance, so when have to be very careful and specific with journalists. We spend hours working through how things work, providing context, etc., to make sure they get it right. Most of the time what they write to so far from accurate that you’d think they hadn’t listened to a word.
Fortune magazine (through cnnfn.com) had $1MM homes that would not sell. There was one in SD, can you get the details?
Joel
Ruh Roh. Where’s David Lereah and Funny Yunny when you need a good green-shoots fantasy quote from the Honest NAR?
“Bank Failures 70 & 71: First State Bank and Community National Bank of Sarasota County, Florida
From the FDIC: Stearns Bank, National Association, St. Cloud, Minnesota, Assumes All of the Deposits of First State Bank, Sarasota, Florida
First State Bank, Sarasota, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. …
As of May 31, 2009, First State Bank had total assets of $463 million and total deposits of approximately $387 million. …
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $116 million. … First State Bank is the 70th FDIC-insured institution to fail in the nation this year, and the fifth in Florida. The last FDIC-insured institution to be closed in the state was Integrity Bank, Jupiter, on July 31, 2009.
From the FDIC: Stearns Bank, National Association, St. Cloud, Minnesota, Assumes All of the Deposits of Community National Bank of Sarasota County, Venice, Florida
Community National Bank of Sarasota County, Venice, Florida, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. …
As of June 30, 2009, Community National Bank of Sarasota County had total assets of $97 million and total deposits of approximately $93 million. …
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $24 million. … Community National Bank of Sarasota County is the 71st FDIC-insured institution to fail in the nation this year, and the sixth in Florida. The last FDIC-insured institution to be closed in the state was First State Bank, Sarasota, earlier today.”
Hmm. Let the MSM talking heads explain how this is GOOD for the economy… That would keep these idiots busy for about a decade of mental masturbation…
Jim – this reminded me to reply to your earlier invitation for happy hour down SD way. I am definitely interested in joining your bunch at Pizza Port next time I am down there. Don’t know when the next time I’ll get unchained from my desk will be.
Sorry your interview got mangled. I’m shocked !
You’re lucky down there to have Kelly Bennett and Zach Fox, though. Better (way) than most in the rest of the country get.
Peter Hong
Ruh Roh Another One: Jeez, only a 45 million dollar FDIC liability. I bet Angelo makes that every week… That would be a lot of license plates at current prison wages…
Bank Failure #72: Community First Bank, Prineville, Oregon
From the FDIC: Home Federal Bank, Nampa, Idaho, Assumes All of the Deposits of Community First Bank, Prineville, Oregon
Community First Bank, Prineville, Oregon, was closed today … As of July 5, 2009, Community First Bank had total assets of $209 million and total deposits of approximately $182 million.
…
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $45 million. … Community First Bank is the 72nd FDIC-insured institution to fail in the nation this year, and the third in Oregon.
Welcome to the New Depression.