The Federal Reserve is at it Again

I wonder if the folks that work for the Federal Reserve are getting tired. They are in the throes of the economy every day, constantly looking at the bigger picture and trying to find ways to change things and improve on what is happening. However, the phrase “enough is enough” is a good one for the Federal Reserve regarding many different aspects of what they do.


They have been constantly scrutinizing banks, revamping policies, and having to look at interest rates and other financial figures so that they can issue forecasts on the economy along with news to the citizens are really curious as to what is happening.

Most recently in the news, the Federal Reserve made mention of its interest in scrutinizing the 19 largest bank holding companies….again. These banks are required to submit their plans for the coming year, and whether or not they can be stable under the mandate of the central bank. This isn’t going to be an easy task because they are going to be required to show how they can withstand the economic battle regarding real estate and how it affects their business, as well as overall affects from the economy as a whole.

The Fed’s are claiming that this is simply one way of showing that they are trying to elevate the level of responsibility and accountability of the banks. Let’s just hope that is the truth and that everything sticks.

-Mayer Dallal

Foreclosures Are Back In Motion

Banks began to examine their foreclosure documents a little closer when some mistakes were being made, then a foreclosure moratorium was issued. Now banks are back in motion filing their foreclosures and getting things done when it comes to evicting their borrowers. It didn’t take very long for the filings to begin again.


JP Morgan Chase amongst others have spent time training people in their departments to ensure that things are being done correctly. Too many foreclosures were not even being reviewed and were being passed through rather quickly. The banks have to be careful, ensuring that all legal issues have been squared away before they file these documents. Robo-signing may not be a thing of the past yet for all lenders, but cleaning up this mess we have our hands is definitely going to continue for awhile.

The question many consumers have is to whether or not they are going to be able to enforce their legal rights when a bank does them wrong. It seems that the banks are the ones that control almost everything, and doesn’t give the consumer a chance to ask the questions that really plague them until it’s too late. Bankers will always say that when it comes to foreclosure that the borrowers who get the notices are the ones who should be getting them; no questions asked.

Even if someone is behind on their payments, and they don’t qualify for a modification, the truth is that people need to be treated with dignity and respect. People should educate themselves and know their legal rights, just as the bank has their legal rights. No one is better than anyone else, and it still seems that no one is really focusing on making a team effort.

-Mayer Dallal

Refinancing Before the Holidays

If you have a lot of debt now and you want to get things in order, then go ahead and consolidate. The challenge in the past has been that families would refinance to pay off debt, then turn around and run up their credit cards again rather than paying cash. This is absurd, and yes it doesn’t benefit you if you know that your spending habits are hard to curtail. However, at a time like this in a rough economy it is best to downsize and begin setting aside more money in case you do have an emergency. Working off a cash basis will help you stop using these credit cards, and will get you to a place where you can break away from the spending and really think about what you are doing. If you don’t have the money on hand, don’t use a credit card to get it. While refinancing your home to consolidate and pay off debt is helpful, keep in mind that the less you have to consolidate the better off you are. You want to build equity in your home, and in a market where housing prices have fallen it doesn’t help to use it all up. If you have to do it then do it, but if you can pay off some other things on your own then do it that way.


I am here to help you every step of the way, and I will also be honest and tell you that refinancing may not be the answer for you. Not everyone will be in a position to refinance, but refinancing through FHA will give you the lowest rates on the market today, and FHA guidelines focus on commonsense underwriting, so they look at the bigger picture. FHA will look at your income, credit, investments, cash reserves, and how you pay other bills outside of your mortgage.

For more information you can go to www.fhaloansnow.net, or you can call me directly at 310-498-2700.

-Mayer Dallal