The Hank Paulson Traveling Medicine Show
I arrived a little early and got a front row seat. I was pleased because this was the first of one of these events I had attended and I didn't want anything or anyone to obstruct my view. I surmised that body language, facial expressions, and attire would be key elements in evaluating the participants.
The room at the Bruce R. Watkins Cultural Center was adequate with a small stage that just fit the five chairs for Secretary Paulson and the four €Community Leader types€ that joined him on stage. Behind the stage was an 8' x 10' screen with the logos for Neighbor Works, Homeownership preservation foundation, and Hope Now " support and guidance for homeowners with a silhouette of the state of Missouri. The screen was flanked on both sides by Old Glory and the Missouri State flag, I think it's called €Old Show me€ but I can't be sure. To the right of the stage was sign that read: €Helping families keep their homes€. Chairs were arranged in a semi-circle around the stage.
As a voice came over the PA telling me to turn my phone on vibrate or completely off and giving me a 2 minute warning, I scanned the crowd one last time to make sure I didn't miss any interesting characters or for that matter anyone that looked like they may be facing foreclosure. I didn't see any but I didn't think I would either, how I thought I could spot them I don't know. Maybe they would look really distraught or holding a sign that said €Will work for mortgage payment€. No none of those types at this €Town Hall Meeting€ I guess 10 a.m. on a Tuesday morning just didn't work for them. Besides if they were there, it would be potentially disrupting and we didn't need that. After all the point was to explain the plan to avoid foreclosure not to listen to their stories, that's what the hotlines are for! So who was there? Mostly grey-haired guys in suits who I figured were either Politicians or Lawyers and Community Leader types with a smattering of mortgage and real estate people.
Just then the secret service guy appeared in the doorway and in came Secretary Paulson with four others in tow. They were: Ed Delgado from Wells Fargo and the Hope Now alliance; a compassionate consortium of lenders and servicers, Father Norman; a Neighborhood Revitalization advocate and Priest, Marjorie Major; a counselor and representative for Neighbor Works and last but not least Cindy Circo; a Kansas City Councilwoman. I apologize for any misspellings.
After the introductions Secretary Paulson commented that the plan is to convene the private sector to prevent a market failure. He went on to say that the complexity in the origination process poses a real problem when mortgages begin to default and hence; the plan is all about avoiding foreclosure. The plan has 3 basic parts to it: 1. Outreach " encourage homeowners to seek assistance sooner rather than later. 2. Affordable modifications and refinances. 3. Fast Track into modification.
As for the other participates: Mr. Delgado said the servicers in his group were sending out rate change letters six months in advance instead of the customary 60-90 days. Thanks for that help Ed; I'm sure the homeowners will appreciate knowing the light at the end of the tunnel is really a speeding train much earlier. Father Norman commented on the devastating effects that foreclosures have on neighborhoods. Ms. Major gave us some insight about the types of calls they receive and the problems and concerns of the callers. Ms. Cisco voiced her support for groups like Neighbor Works.
Commentary
Let me say right off that I do not have any political affiliation. Mr. Paulson's off the rack light blue suit and scuffed wing tips belied the fact that the man is worth $700 million. I guess the PR guys at Treasury didn't want him parading around the country talking about distressed homeowners in a $1,000.00 Armani. And what a stroke of luck for the administration to have a Treasury Secretary championing a plan to avoid foreclosure from sub-prime lending who used to run Goldman-Sachs, one of the only Wall Street firms that didn't have sub prime write downs! Do you think they knew that 18 months ago when he was appointed? Naw, couldn't be.
Blaming the bad mortgage brokers for getting folks into these loans is nonsense. If there wasn't so much capital chasing mortgages the brokers would not have had anything to sell! It was the investors that lowered the qualifying standards not the brokers, so can we hardly blame them for selling a product made so salable? That's what brokers do.
For this plan to have any chance of succeeding at all they need to get the word out. A constant media blitz is required. Billboards, Radio, T.V. and print. Spend my tax dollars Mr. Secretary and leave no doubt that you did everything possible to let those that are in trouble know your help is out there! To date I have seen none of this, I need to and so do those people in trouble.
The off the rack suits, scuffed wing tips and €Town Hall rhetoric€ just won't cut it.
The room at the Bruce R. Watkins Cultural Center was adequate with a small stage that just fit the five chairs for Secretary Paulson and the four €Community Leader types€ that joined him on stage. Behind the stage was an 8' x 10' screen with the logos for Neighbor Works, Homeownership preservation foundation, and Hope Now " support and guidance for homeowners with a silhouette of the state of Missouri. The screen was flanked on both sides by Old Glory and the Missouri State flag, I think it's called €Old Show me€ but I can't be sure. To the right of the stage was sign that read: €Helping families keep their homes€. Chairs were arranged in a semi-circle around the stage.
As a voice came over the PA telling me to turn my phone on vibrate or completely off and giving me a 2 minute warning, I scanned the crowd one last time to make sure I didn't miss any interesting characters or for that matter anyone that looked like they may be facing foreclosure. I didn't see any but I didn't think I would either, how I thought I could spot them I don't know. Maybe they would look really distraught or holding a sign that said €Will work for mortgage payment€. No none of those types at this €Town Hall Meeting€ I guess 10 a.m. on a Tuesday morning just didn't work for them. Besides if they were there, it would be potentially disrupting and we didn't need that. After all the point was to explain the plan to avoid foreclosure not to listen to their stories, that's what the hotlines are for! So who was there? Mostly grey-haired guys in suits who I figured were either Politicians or Lawyers and Community Leader types with a smattering of mortgage and real estate people.
Just then the secret service guy appeared in the doorway and in came Secretary Paulson with four others in tow. They were: Ed Delgado from Wells Fargo and the Hope Now alliance; a compassionate consortium of lenders and servicers, Father Norman; a Neighborhood Revitalization advocate and Priest, Marjorie Major; a counselor and representative for Neighbor Works and last but not least Cindy Circo; a Kansas City Councilwoman. I apologize for any misspellings.
After the introductions Secretary Paulson commented that the plan is to convene the private sector to prevent a market failure. He went on to say that the complexity in the origination process poses a real problem when mortgages begin to default and hence; the plan is all about avoiding foreclosure. The plan has 3 basic parts to it: 1. Outreach " encourage homeowners to seek assistance sooner rather than later. 2. Affordable modifications and refinances. 3. Fast Track into modification.
As for the other participates: Mr. Delgado said the servicers in his group were sending out rate change letters six months in advance instead of the customary 60-90 days. Thanks for that help Ed; I'm sure the homeowners will appreciate knowing the light at the end of the tunnel is really a speeding train much earlier. Father Norman commented on the devastating effects that foreclosures have on neighborhoods. Ms. Major gave us some insight about the types of calls they receive and the problems and concerns of the callers. Ms. Cisco voiced her support for groups like Neighbor Works.
Commentary
Let me say right off that I do not have any political affiliation. Mr. Paulson's off the rack light blue suit and scuffed wing tips belied the fact that the man is worth $700 million. I guess the PR guys at Treasury didn't want him parading around the country talking about distressed homeowners in a $1,000.00 Armani. And what a stroke of luck for the administration to have a Treasury Secretary championing a plan to avoid foreclosure from sub-prime lending who used to run Goldman-Sachs, one of the only Wall Street firms that didn't have sub prime write downs! Do you think they knew that 18 months ago when he was appointed? Naw, couldn't be.
Blaming the bad mortgage brokers for getting folks into these loans is nonsense. If there wasn't so much capital chasing mortgages the brokers would not have had anything to sell! It was the investors that lowered the qualifying standards not the brokers, so can we hardly blame them for selling a product made so salable? That's what brokers do.
For this plan to have any chance of succeeding at all they need to get the word out. A constant media blitz is required. Billboards, Radio, T.V. and print. Spend my tax dollars Mr. Secretary and leave no doubt that you did everything possible to let those that are in trouble know your help is out there! To date I have seen none of this, I need to and so do those people in trouble.
The off the rack suits, scuffed wing tips and €Town Hall rhetoric€ just won't cut it.
Source...