Mortgage Bankers Association Strategic Default

  • Aired:  10/07/10
  •  | Views: 157,956

The Mortgage Bankers Association strategically defaults on its loan after shaming homeowners who do the same. (4:45)

[CHEERS AND APPLAUSE]

>> Jon: WELCOME BACK.

AS YOU JUST LEARNED COUNTLESS

HOMEOWNERS HAVE SUFFERED AT THE

HANDS OF UNSCIEWP HRUS BANKS.

HAVE WE LOST SIGHT OF REAL

VICTIMS IN THE FORECLOSURE

CRISIS?

WYATTWYATT CENAC HAS MORE.

>> THERE'S A DANGEROUS NEW TREND

IN AMERICAN REAL ESTATE,

STRATEGIC DEFAULT.

HOMEOWNERS ARE WALKING AWAY FROM

THEIR MORTGAGES EVEN WHEN THEY

COULD AFFORD TO PAY.

THIS PRACTICE WORRIES PRESIDENT

OF MORTGAGE BANKERS ASSOCIATION.

>> WHAT DOES THAT DO TO OTHER

PROPERTIES IN THE NEIGHBORHOOD

IS?

THE CONSEQUENCES ARE DIRE.

>> IT'S A MORE YAM IMPERATIVE TO

KEEP YOUR FINANCIAL OBLIGATIONS.

TO FIND OUT MORE ABOUT LIVING A

GOOD AND VIRTUOUS FINANCIAL

LIFE, I WENT TO THE MBA

HEADQUARTERS IN WASHINGTON, D.C.

I'M THERE TO SEAT MORTGAGE

BANKERS ASSOCIATION.

>> THEY ARE NO LONGER IN THE

BUILDING.

>> WHAT THEY ARE NO LONGER HERE?

THEY PURR -- PURCHASED THIS $79

MILLION BUILDING THREE YEARS

AGO.

WHAT IS GOING ON HERE?

THE ASSOCIATION WALKED AWAY FROM

ITS HEADQUARTERS BUILDING WHEN

IT WENT UNDER WATER ON THE

MORTGAGE.

>> WOW, SO THEY STRATEGICALLY

DEFAULTED THEN OUR LOAN.

SINCE THEY ONLY PUT DOWN 5% THE

BLAME SHOULD FALL ON THE IDIOT

BANKERS THAT GAVE THEM THE MONEY

I CAUGHT UP WITH THE HEAD OF THE

BANKERS ASSOCIATION JOHN COPE

LAND.

IF I GET THE HOUSE HOW LONG

SHOULD I WAIT BEFORE I DEFAULT

ON IT?

>> YOU ARE GOING TO NEVER

DEFAULT.

>> THE MORTGAGE BANKERS

ASSOCIATION DEFAULTED ON THEIR

$79 MILLION HEADQUARTERS IN

WASHINGTON, D.C.

>> CORRECT.

>> IF THEY DID IT, WHY CAN'T I?

>> FOR THE ASSOCIATION TO

DEFAULT DOESN'T MEAN IT WAS THE

RIGHT THING TO DO.

>> AS PART OF THE MBA FAMILY HOW

DOES IT FEEL KNOWING YOUR DADDY

COULDN'T PAY HIS MORTGAGE?

>> KNOWING DADDY COULDN'T PAY

HIS MORTGAGE, WE'RE SYMPATHETIC.

THAT'S ALL WE CAN BE.

>> SUCKS TO FIND OUT YOUR DAD

SAY DEADBEAT.

>> THAT IS TRUE.

>> ONE CAN ONLY IMAGINE THAT

HUMILIATION HE FELT WALKING AWAY

FROM HIS PROPERTY AFTER PUBLICLY

SHAEUPLG HOMEOWNERS WHO DO THE

SAME.

>> WHERE IS THE MBA LIVING

SNOWNCH WHERE IS THE MBA AT?

>> YEAH.

>> I HAVE NO IDEA.

>> THEY ARE JUST OUT THERE ON

THE STREETS?

>> I THINK WE'RE NOT REALLY ON

THE STREET CORNER.

>> ARE THEY SAYING AT THE Y?

I HOPE THEY ARE NOT TURNING

TRICKS.

>> I WOULD THINK NOT.

I THINK WE'RE MAKING ENDS MEET

THE BEST WE CAN.

>> TURNS OUT LIKE MANY PEOPLE

THE MORTGAGE BANKERS ASSOCIATION

DECIDED IT'S A BETTER TIME TO

RENT AND FOUND A NEW PLACE JUST

FIVE BLOCKS UP THE STREET FROM

THEIR OLD $79 MILLION

HEADQUARTERS.

>> I'M HERE TO TALK TO THE

MORTGAGE BANKERS ASSOCIATION.

>> OKAY.

I'LL CALL UPSTAIRS.

>> SURE.

SO I WAITED BUT THEY NEVER CAME

DOWN.

THAT'S BECAUSE THEY WERE IN

DALLAS, TEXAS, AT THE GAYLORD

HOTEL.

THEY SCRAPED TOGETHER THE MONEY

THEY SAVED NOT MAKING MORTGAGE

PAYMENTS TO HOST A CONFERENCE.

THEY WERE TRYING TO LIFT THEIR

MEMBERS SPIRITS WITH THE HOTEL'S

VINE VINEYARD, GIANT TRAIN SET

AND BY PUTTING ON WORKSHOPS LIKE

MAKING PEACE WITH PROPERTY

VALUES AND THE ETHICAL MORTGAGE

BANKERS.

CLEARLY THEY NEEDED MY HELP.

I WAS HERE TO TALK TO SOMEBODY.

I HEARD THE TERRIBLE NEWS.

TELL ME IT'S NOT TRUE THAT YOU

DEFAULTED ON YOUR HEADQUARTERS

IN D.C.

SO THEY WEREN'T PARTICULARLY

TALKATIVE.

>> I'M A SMALL TIME REPORTER

FROM ROLLING STONE MAGAZINE.

>> GET YOUR BACK STRAIGHT.

>> I'M HERE TO DO AN EXCLUSIVE

INTERVIEW ON JOHN COURSON.

I'M GOING TO CALL IT THEY DON'T

ALLOW STRATEGIC DEFAULTERS.

>> YOU DON'T HAVE YOUR FACTS

TRAIT.

>> I'M TRYING TO HELP YOU, SIR.

>> IF YOU NEED ANYTHING I'M HERE

TO HELP.

WE JUST WANT TO HELP YOU.

>> THROUGHOUT THIS WILL

TURBULENT ECONOMY, THE MORTGAGE

BANKERS ASSOCIATION HASN'T LOST

SIGHT OF THEIR CORE VALUES.

EVERYBODY WANTS TO AVOID THAT

FORECLOSURE AND KEEP THAT LOAN

ON THE BOOKS AND THE BORROWER IN

THE HOME.

>> AND IF HOMEOWNERS KEEP

PAYING, THE

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