FDIC – Indymac – OneWest Reimbursement
At the beginning of Dec, 09, I wrote an article detailing the “Sweetheart buy viagra pill Deal” that the FDIC gave to OneWest Bank to buy the assets on Indymac. The article described the reimbursement details whereby a failed portfolio loan would result in reimbursement rates of either 80% or 95% of the losses, based upon the original loan amount, and not what OneWest paid for the loan, which was 70 cents on the dollar. As a result, OneWest could “earn” $100,000’s above what they paid for the loan. The FDIC aggressively rebutted follow-on articles from other writers, stating that they had not paid out one cent in losses on the deal. (The only thing I failed to make clear was that the reimbursement started after 20% of aggregate losses occurred.) It is now time to report on where things stand today.
Friday evening, May 14, I had a phone conversation with one of many people actively involved in the foreclosure crisis. We were discussing securitization and other items. This person once worked for the FDIC and headed Good Bank/Bad Bank operations for the S&L crisis.
During the conversation, he revealed that one transaction he was working on ended up in foreclosure. After the foreclosure occurred, he came into possession of a document regarding the transaction, which apparently occurred at least one month earlier. This document revealed that the FDIC has reimbursed OneWest Bank for the 80% of losses incurred from the foreclosure. As a result, OneWest made over $135,000 above what they paid for the loan.
This tells me that OneWest Bank has now hit the “magical” 20% of aggregate losses required to start reimbursement on every foreclosure that occurs from now one. Since the Loan Portfolio was approximately $12.5 billion, this means that OneWest has wiped out 20% or $5 billion of the Portfolio. Another $2.5 billion, and OneWest gets to the 95% reimbursement rate.
This has serious implications for the OneWest owned loan that is in foreclosure. Now, OneWest has absolutely no incentive for working with homeowners to save their homes, not that they did previously. The homeowner is now the prey for a “Predatory Loan Foreclosure” bank.
The only way that a homeowner will be able to stop the foreclosure will be to mount an aggressive legal defense, likely involving litigation. There will be no other way to stop the foreclosure. OneWest will ignore HAMP guidelines, seeking only to maximize profits. That is what happens when Soros and Paulson get hold of a bank.
(Patrick Pulatie is the CEO of Loan Fraud Investigations. He can be reached at 925-238-1221, patrick@loanfraudinvestigations.com. His website is www.loanfraudinvestigations.com. Articles written by him can be viewed on http://blog.ml-implode.com/ and www.iamfacingforeclosure.com. Patrick is not an attorney and does not give legal advice.)
Further to my comment of 9 August 2016, unlike the old Bank Rate system with its high interest rates, Quantitative…
Comment by Jeff on 17 May 2010:
The notice of default (California) was filed on my house by Indymac in April, 2009. They then approved us for a trial mod and postponed the trustee’s sale. We made two payments on the trial but were unable to continue due to sudden loss of income.
They scheduled a trustees sale for December 6, 2009. We blocked it by filing bankruptcy on December 5. On December 15 One West petitioned the bankruptcy court for relief from stay which was granted on January 4. The court order said they could hold the trustee’s sale as soon as January 18.
But they scheduled it for February 16. On February 15 they rescheduled it again for March 16. On March 15 they rescheduled it again for April 16. On April 16 they canceled the trustees sale.
We have no idea what’s going on. They have made no attempt to contact us or collect any money or modify the loan or anything. We have made no payments since September, 2009. We recently received the annual statement for the escrow account showing a surplus!
What’s going on?
Comment by pulatie on 17 May 2010:
How do you know that they canceled the Trustee Sale? Did they simply reschedule it again?
Never trust what a lender says, especially Indymac/OneWest.
It is best to follow up to determine if the Sale was postponed, and you should also contact an attorney.
Comment by physician assistant on 18 May 2010:
Wow this is a great resource.. I’m enjoying it.. good article
Comment by Wendy on 5 July 2010:
My story is the same as everyone else’s, so I won’t elaborate. However, I have had ENOUGH. I am about to expose these ruthless criminals, and the lies they continue to tell. If any of you live in California, this Friday, 09th July, @ 11am, I am conducting a protest outside of Indymac Mac. There will be at least 20+ people picketing outside of Indymac/Onewest Corporate offices.. I have also contacted KTLA-5, NBC, ABC, CBS, Orange County Register, LA Times, Fox Channel, John & Ken Radio talk station, and blasted ‘Press Releases’, to anyone who will listen. I believe we should have some good coverage.
The address is 888 E. Walnut, Pasadena, CA 91101.
We are also handing out postcards outlining the ‘Sweetheart Deal’, that Indymac/OneWest Bank have with the FDIC.
please contact me at kawm@sbcglobal.net for more information
Comment by Jean Carpenter on 9 July 2010:
Why are all the banks being reimbursed when the individual who had to sell his house at a loss, is just plain screwed. My husband and I bought a house in 2004, and in 2010 had to sell because of loss of income in own business. Our loss was over $100,000 grand because the housing values had dropped. That was my retirement money I put in the house, thinking it would always be safe. Who is going to help us instead of helping the crooks (banks) whose greed took us all down.
Comment by Herman on 29 May 2011:
Bottom line; banks can foreclose, lose money, get paid by feds with our money on their loss, we get taxed more to pay for the bank’s loss and so on. One giant cluster $#%. We citizens do not get paid for OUR loss. One more example of the morons in the gunmint doing the wrong thing. Bunch of morons. No accountability for the criminals who walk free. Everyone I talk with has lost trust in the banking system and our so called leaders. To all the criminals out there…
I hear the knives being sharpened.
Comment by true on 22 June 2011:
Your math is wrong. 20% of $12.5 billion is $2.4 billion not $5 billion.
Comment by Digbat on 1 July 2011:
Sorry, but 20% of $12.5 billion is $2.5 billion (when I went to school at least)
Comment by John on 25 September 2011:
I am a Eastern Savings loan holder since December of 05. My interest rate was 10 three quarters and my morgage was 4,876 a month, at the time I was in dedt and re-financed for $420,000. Afterwards there was still $350,000 left in equity. Two months later my wife and I realized we could not afford this monthly payment, and proceded to put our house up for sale. Fast foward to September 25, 2011 three modification tries by three different modifiers in which the bank did not cooporate and two short sale attempts which I blocked. I am at this time attempting another modification try to stop an attempt by the bank to auction my house on October 11, 2011. We have also asked Eastern to provide us with my original paperwork which they can not produce. I would appreciate your response if any to my situation and if in the future I could speak to you privately by phone. Thank you and hope to hear from you soon.
Comment by carol on 26 September 2011:
John you are not alone and I feel for you. You need to retain an attorney and have them handle your case since you dont have too much time I would to this quickly. Secondly, you and all the other people out there in this situation must take more action by calling the Federal Trade Commission 1-877-382-4357 and Office of thrift supervision 1-800-842-6929 which has control over ESB, and put in a complaint against them. They are being watched very closely,infact, not too long ago they were hit with a cease and desist order and fined big $$$$$. This bank should not be in dusiness and if you have to call the local Maryland news and tell them too. Clearly, this is a predatory lending bank and they need to be shut down. They are the scum of this earth even the people that work there. Please dont sit still make these calls and help put them under.
Comment by gary hughey on 10 February 2013:
hey has anybody seen any actual records of reimbursements from fdic? I have requested from them records involved on my indy mac consruction loan but banks lawyers sy i am not entitled to records,can anyone help.we need to understand the reimbursement process as it concerns judments against homeowners and should lower amounts of judgements when banks get reimbursements