This is just to much

They fail to mention, how these sites are selling the NPL ( non performing loans) and telling investors that their worth one thing when in actuality , they are worth tens of thousands dollars less. Greed , that's all this is about, and its what  will destroy  everyone.

Mortgage REITs Pose Dangers Requiring More Oversight, IMF Says

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Regulators should boost oversight of the largest real estate investment trusts that use borrowed money to invest in mortgage-backed securities because rising interest rates may push the firms into asset sales that destabilize markets, the International Monetary Fund said.

A version of that scenario occurred during the rise in rates that began in May, the IMF said. Repercussions might roil the REITs’ lenders, disrupt the $5.3 trillion market in which they invest and damage the broader U.S. economy, according to its Global Financial Stability Report released today.
Further rate rises might “lead to a more destabilizing unwinding of positions,” with a surge of 0.5 percentage point or more reducing the portfolio values at the biggest mortgage REITs “enough to generate at least temporary dislocations in the MBS market,” the Washington-based group said.
The IMF joins Federal Reserve Gov. Jeremy Stein and the U.S. Financial Stability Oversight Council in saying this year that the companies led by Annaly Capital Management Inc. and American Capital Agency Corp. pose risks to markets. The FSOC, the board of regulators established after the 2008 financial crisis, failed to label any of the firms “systemically important” and in need of greater oversight, after mentioning the mortgage REIT industry in its annual report in April.
Annaly, based in New York, had $102.4 billion of assets on June 30 and $13.3 billion of shareholder equity, while Bethesda, Md.-based American Capital Agency had $98.7 billion of assets and $10.3 billion of equity, according to data compiled by Bloomberg.
With the amount of repurchase agreement, or repo, financing used by the two largest mortgage REITS comparable to that of Lehman Brothers Holdings Inc. before its 2008 collapse that roiled the global economy, “at the very least the mREITs point to a microcosm of fragilities in the shadow banking system that deserve closer monitoring,” the IMF said today.
The reliance by the industry on short-term loans to invest in government-backed mortgage securities with strategies involving interrelated risks mean their sales as prices decline might create a “fire sale ‘risk spiral,’” according to the report.
Sales may reduce the value of holdings among other investors such as banks and potentially cause declines big enough to “induce repo lenders to pull back funding or raise rates more broadly (or both), with negative consequences for other leveraged short-term borrowers,” the IMF said.
“Sizable disruptions in secondary mortgage markets against a backdrop of rising mortgage rates could also have macroeconomic implications, jeopardizing the still-fragile housing recovery,” according to the report.
Increased oversight of mortgage REITs and firms involved in the repo market that they turn to for financing “would help reduce the risk of a cascading failure of counterparties.” A review of repo “haircuts,” or down payments, would be “desirable,” along with greater disclosure, the IMF said.
Authorities also “could consider changing the exemption status for certain” mortgage REITs, or label the largest as systemically important and in need of more oversight, the group said. The U.S. Securities and Exchange Commission, after asking in 2011 for comments on the companies’ exemption from the Investment Company Act that allows them to use unlimited leverage, didn’t announce any adjustments to the rule.

Bank of America Sued for Alleged RMBS Fraud

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The Justice Department and the Securities and Exchange Commission have both filed civil lawsuits against Bank of America alleging that the financial institution and certain affiliates defrauded investors about the riskiness of $850 million in residential mortgage-backed securities.

According to the complaint, around January 2008, the Charlotte-based lender sold Bank of America Mortgage Securities 2008-A certificates to investors by knowingly making materially false and misleading statements by failing to disclose important facts about the mortgages collateralizing the RMBS.
This included the bank’s failure to conduct loan level due diligence in the offering documents filed with the SEC, the complaint stated, as well as concerns about how the mortgages originated and the likelihood that the prime loans would perform as expected.
The DOJ said in the complaint that more than 40% of the 1,191 mortgages in the BOAMS 2008-A collateral pool failed to adhere to Bank of America’s underwriting standards.
Additionally, the nation’s second largest bank supposedly kept bad loans in the deal that had several origination problems, such as overstated income, fake employment, inflated appraisals, wrong loan-to-value ratios, undisclosed debt, occupancy misrepresentation, and mortgage fraud.
Because of these alleged errors in the pool, the DOJ says that Bank of America had no basis to make representations it made when offering the RMBS.
Lastly, the complaint alleges that Bank of America concealed important risks in the mortgages backing the BOAMS 2008-A securitization pool. For example, the bank originated more than 70% of the loans through third-party mortgage brokers, which were riskier than similar mortgages initiated by the financial institution.
Meanwhile, as this deal was being completed, Bank of America purportedly received internal reports that showed a significant decrease in the quality and performance of these securitized mortgages. Despite knowing this, the lawsuit said the bank never disclosed the information or possible risks to investors.
It is estimated that investors who acquired BOAMS 2008-A certificates will sustain total losses of more than $100 million.
“Bank of America’s reckless and fraudulent origination and securitization practices in the lead-up to the financial crisis caused significant losses to investors,” said Anne M. Tompkins, U.S. attorney for the Western District of North Carolina. “Now, Bank of America will have to face consequences of its actions.”
However, Bank of America plans on fighting the charges made by both the DOJ and SEC.
“These were prime mortgages sold to sophisticated investors who had ample access to the underlying data and we will demonstrate that,” said Lawrence Grayson, spokesperson for Bank of America. “The loans in this pool performed better than loans with similar characteristics originated and securitized at the same time by other financial institutions. Moreover, at the time this deal was securitized, and even now, wholesale channel loans have performed at least as well as loans originated in corporate channels.”

USB Investors - heres your heads up

Why REITs Could Be The Most Dangerous Income Investment

Jun 27 2013, 18:49 

Real estate investment trusts (REITs) could soon turn from income investor darling to toxic portfolio sludge. It's already started: While the S&P 500 fell a few percentage points over the past month, REITs tumbled over 12% -- as measured by the Dow Jones REIT index (which covers over 90% of all publicly traded REITs):
(click to enlarge)
Worse still, if you back out dividends (which have been substantial), REITs have underperformed the broad stock market since mid-2010. Why the underperformance? For the past five-plus years, REITs enjoyed the double-edged sword of Fed policy. Low borrowing costs (of essentially zero percent) made it incredibly easy for these leveraged firms to borrow low and lend high.
But since rates can't go lower than zero, there's limited upside for REITs. Investors have kept one foot near the exit in anticipation of an inevitable rate hike when the Fed stopped (or hinted at stopping as we recently witnessed). That's because when rates rise, REITs will take it hard in the shorts.
First, profits will fall. That's because the "spread" between what they can borrow for and what they can lend for will narrow. When you can borrow at 0% and lend at 5%, you can leverage a billion dollar portfolio into hundreds of millions in profits. But what happens if rates jump to just 1%? That shrinks their profitability by one-fifth. If rates rise high enough, current loan repayment levels won't be high enough to secure new borrowing -- and REITs won't be able to secure a nickel of financing from anyone.
Companies like Annaly (NLY), considered to be one of the biggest and best run REITs, could see their current 12.3% dividend drop from double digits to zero -- and the stock will crater even further than it already has. When your business model is based on periodically refinancing long-term debt and pocketing the difference between borrowing costs and lending profits, you can expect huge gains when rates are super-low -- like they are right now.
But every REIT investor should be intimately aware of the other side of the sword. When (not if) rates rise, REITs will have a hard time. We currently own two REITs in our portfolio, but we're keeping a close eye on borrowing rates and, like every other REIT owner, we have one foot near the exit at all times. We'll let you know when things go from bad to worse for REITs.
Disclosure: None.

But here I will help you out.

The Roosevelt management trade  Dec 29th.2012, where they bought Archbay Holdings llc 2010B,  and than securitized it as a T-1 with USB as Trustee , is fraud. The houses were in foreclosure, titles are junk, Paperwork for them is fraud by Orion Financial Group, not the actual banks who owned them, and I know of one that has liens on them for 4 times the houses worth and 2 are Federal Liens as well . The actual worth of the house at the last appraisal in 2012 was 119.000.00 but their telling you 180,000.00 , the liens are well over 400,000.00 . Now don't you think you should be doing some checking yourselves? This is facts not fiction here and your being brought down that old 2005-2008 road. Remember I warned you.