LIBOR Rate Rigging

Royal Bank of Scotland Libor Rate Rigging Patent Trade Secret lest BRICS colon scam may bankrupt them - House of Cards to Collapse in Silence?

Article by Mark Scott here:

http://dealbook.nytimes.com/2013/04/11/senior-r-b-s-executive-in-japan-expected-to-resign-after-libor-scandal/

	Latest	Yesterday	Week Ago
Federal Funds Rate	0.15%	0.15%	0.16%
Discount Rate	0.75%	0.75%	0.75%
Overnight Libor (1 day delay)	0.16%	0.16%	0.15%
Freddie Mac 30/60	0.00%	3.00%	2.85%
Fannie Mae 30/60	3.04%	3.08%	3.16%
6 Month Libor (1 day delay)	0.44%	0.44%	0.44%
10 Year Treasury Security	1.84%	1.78%	1.86%
The Prime Rate	3.25%	3.25%	3.25%

RATES AS OF 4/15/2013

 

1 Year LIBOR
Month	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
Jan	1.477%	1.4607%	3.2710%	4.9412%	5.4414%	4.22375%	2.00375%	0.98438%	0.78094%	1.12805%	0.84350%
Feb	1.368%	1.3645%	3.5114%	5.1526%	5.3328%	2.84938%	1.97500%	0.84625%	0.78125%	1.09570%	0.78100%
Mar	1.340%	1.3401%	3.8420%	5.2476%	5.2009%	2.70875%	2.11938%	0.83938%	0.79025%	1.05980%	0.75150%
Apr	1.362%	1.8082%	3.7101%	5.4217%	5.2967%	2.48625%	1.97188%	0.92000%	0.78250%	1.04850%	0.73150%
May	1.2214%	2.0764%	3.7789%	5.4139%	5.3885%	3.07875%	1.87688%	1.01563%	0.76100%	1.04720%
Jun	1.2014%	2.4682%	3.8632%	5.7660%	5.4048%	3.16375%	1.60000%	1.20406%	0.72950%	1.06920%
Jul	1.2789%	2.4632%	4.1745%	5.5910%	5.42563%	3.31063%	1.60625%	1.17313%	0.73350%	1.06800%
Aug	1.4714%	2.3001%	4.3123%	5.4501%	5.24500%	3.25250%	1.49750%	1.03669%	0.76025%	1.05350%
Sep	1.2857%	2.4445%	4.4067%	5.2985%	5.27500%	3.20688%	1.33000%	0.84306%	0.80000%	1.03200%
Oct	1.4551%	2.5289%	4.6765%	5.3348%	4.90125%	3.96250%	1.26375%	0.77775%	0.86489%	0.97300%
Nov	1.4867%	2.9607%	4.7379%	5.2439%	4.63750%	3.17375%	1.19938%	0.76219%	0.93561%	0.87550%
Dec	1.4582%	3.1004%	4.8226%	5.3139%	4.45750%	2.76625%	1.01750%	0.78656%	1.07106%	0.86000%

 

2010	2011	2012	2013
0.98438%	0.78094%	1.12805%	0.84350%
0.84625%	0.78125%	1.09570%	0.78100%
0.83938%	0.79025%	1.05980%	0.75150%
0.92000%	0.78250%	1.04850%	0.73150%
1.01563%	0.76100%	1.04720%
1.20406%	0.72950%	1.06920%
1.17313%	0.73350%	1.06800%
1.03669%	0.76025%	1.05350%
0.84306%	0.80000%	1.03200%
0.77775%	0.86489%	0.97300%
0.76219%	0.93561%	0.87550%
0.78656%	1.07106%	0.86000%

The London Inter-Bank Offered Rate, or LIBOR is calculated upon rates that contributor banks in London offer each other for inter-bank deposits.  From a bank's perspective, deposits are simply funds that are loaned to them.  LIBOR is the rate at which another London bank can borrow money from other banks.  Rate calculations are complex as they incorporate variables such as time, maturity and currency rates. There are hundreds of LIBOR rates reported each month in many world currencies. 

Price fixing and boosting the rate falsely for individual and bank gains are serious crimes; but the scandal seems hushed and secretive. The story doesn't receive much attention.

The average American probably does not understand this; but for example: many mortgage rates have been calculated by this falsely inflated index. Most Jumbo Mortgages in California are tied to LIBOR when the 11^th District Cost of Funds Index started being phased out because there were few banks who controlled the Cost of Funds in California. Around 2006 the 11^th District or COFI index became the index out of favor because Wells Fargo, Bank of America, and WAMU directly influenced the rates on savings deposits and dominated, perhaps cornered the whole savings market in California. Banks went to using the LIBOR that was seen as an honest and less manipulated index, how wrong that thinking was…

Have we been over charged on our LIBOR rates? Yes

 

 

Refinance California

Caroline Gerardo                   Your home's financing isn't final.   The decisions you made when you bought your home were based on  your financial situation at the time. However, your income, the mortgage market and the real estate market can change. This is why you should always assess the applicability of your mortgage to your current situation and future plans to determine if a refinance is in order. There are a variety of reasons why you might want to refinance: Take advantage of a lower interest rate. Rates have been at historic lows, but there is no guarantee how long this will last. If you can get in now before they begin to climb, you can keep your monthly payments low. Opt for a fixed rate over an adjustable-rate mortgage. If your current loan is an ARM that will soon adjust upwards, you might prefer the stability offered by a fixed-rate mortgage. Access needed cash. Cashing out a certain amount at a mortgage's much lower rate to pay off a debt — say, a credit card — at a much higher rate often makes solid financial sense. Change your loan terms. Opting for a shorter loan term — say, 15 years instead of 30 — will help you pay off your debt sooner and save significant money over the term of the loan. If your income has decreased you may wish to extend the term of the loan. Cancel private mortgage insurance. PMI is required of borrowers who put down less than 20 percent on their home. If you've been in the home a while, you may have gained enough equity so that you no longer need the PMI. Consolidate your first and second mortgages. This could mean significant savings for you over the long term. With 25 years closing mortgage loans Caroline Gerardo has the know how to help you find what is right for your life, even if it is best to keep the loan you have.    Whatever your reasons for wanting to refinance, there are a number of factors you'll want to consider. With California property values increasing in many areas, this might be important to review. Another key concern is whether or not the costs of a refinance are recouped by your lower rate. All loans have closing costs associated with them, and you want to make sure that whatever savings your new loan delivers will also be worth the closing costs. Typically, you want to make back your closing costs within two years. As you can see, there is a lot to consider, which is why it makes sense to sit down with an expert and review all the key considerations and do all the necessary calculations to ensure you're making the smartest financial decision you can. Are you considering refinancing your home loan? If so, I would love to help you make the most informed decision possible. Please contact me today! (949) 784-9699     SKU © 2012 W.J. Bradley Mortgage Capital, LLC. 6465 Greenwood Plaza Blvd, Suite 500, Centennial, CO 80111. NMLS ID 3233. Trade/service marks are the property of W.J. Bradley Mortgage Capital, LLC. This is not a commitment to lend. Restrictions apply. All rights reserved. Some products may not be available in all states. WJB is not acting on behalf of or at the direction of HUD/FHA or the federal government. AZ Mortgage Banker License # BK-0903998; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act RML# 4131002; To check the license status of your CO Mortgage Broker, visithttp://www.dora.sate.co.us/real-estate/index.htm; Florida Mortgage Lender Servicer license #MLD738; ID Mortgage Broker License No. MBL-7766; IL Residential Mortgage Licensee – License #MB.6760738, 6465 Greenwood Plaza Blvd., Suite 500, Centennial, CO 80111; MN Residential Mortgage Originator License No. MN-MO-3233; NV Mortgage Banker License No. 2061; NV Mortgage Broker License No. 504; NM Mortgage Loan Company and Loan Broker Act Reg. No. 01856; OK Mortgage Broker License No. MB001365; OR Mortgage Lender License No. ML-776; TX Registered Mortgage Banker – NMLS 3233; l; UT Mortgage Lender Company License No. 5495659-NMLC; Utah Consumer Credit Notification and Utah Residential First Mortgage Notification regulated by the Utah Department of Financial Institutions; Vermont Lender License #6341; WA Consumer Loan License No. CL-3233; Wisconsin Mortgage Banker License No. 699991. NMLS consumer access: www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/3233.       http://www.amazon.com/Toxic-Assets-Bank-ebook/dp/B004RCLZXI/ref=tmm_kin_title_0/#_

 

HARP 2.0

FNMA and FHLMC have announced that loan limits for HARP 2.0  remain unchanged for 2013.

 

Unlimited LTV (loan to value) for owner, non-owner and investment properties.

Credit score limit has been reduced to 620.

Second mortgages may be subordinated up to any combined loan to value.

 

HARP loans are limited in California to be under $ 625500 for High Balance Loans sold and delivered before May 31, 2009. This means your loan should have closed in the beginning of April 2009 or before to have been delivered to Fannie Mae or Freddie Mac.

Eligible homeowners who are current on their mortgages but have been unable to take advantage of today's lower interest rates because their homes have decreased in value, may now have the opportunity to refinance. Through a refinance under HARP, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they own or that they guaranteed in mortgage backed securities. This is great for all California residential property owners who are underwater as mortgage rates are at all time lows and your payment can reduce.

 

Other requirements to lower your payment under HARP 2.0 are:

 

The mortgage MUST be "owned" or guaranteed by Fannie Mae or Freddie Mac

The mortgage CANNOT have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.

The borrower MUST be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.

Homeowners who are currently delinquent or have been more than 30 days overdue during the past 12 months generally will not qualify. Contact your servicer to see if a modification under the Home Affordable Modification Program is an option for you.

Loans with LTVs (loan to value) greater than 125% - the mortgage payment history must be 0x30 for last 24 months.

Hardest Hit Fund for Arizona home loans eligibility changes can be viewed at:  http://www.azhousing.gov/

Nevada has run out of funds to continue HARP 2.0 program.

HARP Refinance Program maximum Debt To Income Ratios allowed:

Primary residence: 55%

Second home: 50%

Investment property using subject rental income to qualify: 45%

Investment property not using subject rental income to qualify: 50%

 

Peace With Crows

This is an update to my story about trying to deal with an overpopulation of crows in Laguna Niguel California. The crows are aggressive and tear up lawns, and destroy property. Rather than the typical pest control approach, I have found success dealing with the many black birds as friends who have a right to my hillside and ocean view in Orange County. Old post here: http://cgbarbeau.blogspot.com/2012/11/crow-prevention.html

Sunflowers in my garden in Laguna Niguel

Crow on streetlight in Dana Point

I experimented with the following procedures:

Feeding the crows sparingly while I am outdoors in my garden.
Not acting hostile or shooing them away, sometimes allowing them to eat my sunflowers when they go to seed.
Planting three kinds of clover in the lawn areas, and plenty of wildflowers and seed bearing annuals that offer bright color and food for a variety of song birds, and the crows.
Never buying any chemicals for lawn and garden, finding natural balances.
I have been more than happy with the results. Some solutions lead to surprises.

My clover lawn has prevented the crows from tearing up the roots to be able to eat those large white grubs. Because its roots are deeper and winding the crows don’t bother with my lawn but also I do still randomly befriend them.

I still have the grubs in the lawn and continue to use NO pesticides no herbicides and no chemicals in all of my garden. I allow the clover to go 4 weeks and then mow it. After mowing it is the brightest neon green. I think it is much prettier than any rolled out sod.

The clover mix works and lasts through the summer heat. Because I just threw red white and pink seeds out, they seem to rotate in the seasons as to which variety is the strongest. The white likes full sun and heat while the red flowering prefers cooler and shade. The clover puts nitrogen into the soil and the clippings compost in days into soil that has added natural nitrogen.

 

I water much less, waiting for the clover to actually look wilted dry.  I didn’t have the sprinklers on all winter or so far this spring. In the summer my “grass areas” only need watering once a week in the morning before light.  I am conserving water (making my bill with Moulton Niguel Water less) and saving money on an expense.

 

As to the crows--- There is a large pair and my teenagers have named about five of them that we can recognize by injuries to their wings, personality and calls. The crows never “poop” on our cars, but yes on other people’s cars. We have an elderly Golden Retriever who likes to sunbathe and the crows seem to know her as well.  I put out peanuts or the heel of sprouted bread or a piece of fruit in the same spot in the front maybe once a week and they are gracious about the treats.

 

Miraculously the crows have left alone the mourning doves nesting in my front yard gazebo and the towhees who tap at the brass reflections on my front doors. Fidalgo (a California towhee who has been around a year) is free to obsess about the bird in the reflection of the windows in my living room. I put this fake blue bird to clue him that the mirror reflection is not a towhee but he cannot stop himself. The towhee is another story, but in short they are terrific because they eat spiders, snails and pill bugs.

 

All things in balance, the crows were here first.