Politics

$700B unpaid mortgage balances in Harvey and Irma disaster areas

Even as the damage from Hurricanes Harvey and Irma is still being tallied, a preliminary assessment released last week by Black Knight Financial Services estimated that as many as 300,000 borrowers in the vicinity of Houston could become delinquent on their loans and 160,000 could become seriously delinquent, or more than 90 days past due.

That number is roughly four times the original prediction because new disaster zones were designated and more homes flooded when officials released water from reservoirs to protect dams, according to CNBC’s Diana Olick. In total, the number of mortgaged properties in Texas disaster zones is 1.18 million, with Black Knight adding that Houston disaster zones contain twice as many mortgaged properties than Katrina zones, with four times the unpaid principal balance.

Putting the Harvey damange in context, after Hurricane Katrina mortgage delinquencies in Louisiana and Mississippi disaster areas spiked by 25%. The same could happen in Houston, as borrowers without flood insurance weigh their options and decide to walk away from the property. While they will get some federal relief, if rebuilding would cost more than the principal in their homes, they could decide to walk away according to Olick.

What about Irma?

According to a preliminary analysis by Black Knight released today, Florida FEMA-designated disaster areas related to Hurricane Irma include a whopping 3.1 million mortgaged properties.  As Black Knight’s EVP Ben Graboske explained, both the number of mortgages and the unpaid principal balances of those mortgages in FEMA-designated Irma disaster areas are significantly larger than in the areas impacted recently by Hurricane Harvey.

Quantifying the damage, Black Knight calculates that Irma-related disaster areas contain nearly three times as many mortgaged properties as those connected to Hurricane Harvey, and nearly seven times as many as those connected to Hurricane Katrina in 2005. In dollar terms, this means that there is some $517 billion in unpaid principal balances in Irma-related disaster areas, nearly three times the amount as in those related to Harvey and more than 11 times of those connected to Katrina.

“While the total extent of the damage from Hurricane Irma is still being determined, it is clear that the size and scope of the disaster is immense,” said Graboske.

“Indeed, in terms of the number of mortgaged properties and their associated unpaid principal balances, Irma significantly outpaces even the number of borrowers impacted by Hurricane Harvey. With FEMA expanding the number of Irma-related designated disaster areas late Wednesday, Sept. 13, to a total of 37 Florida counties, more than 90 percent of all mortgaged properties in the state now fall into such areas. More than 3.1 million properties are now included in FEMA-designated Irma disaster areas, representing approximately $517 billion in unpaid principal balances. In comparison, Harvey-related disaster areas held 1.18 million properties – more than twice as many as with Hurricane Katrina in 2005 – with a combined unpaid principal balance of $179 billion. Irma-related disaster areas now contain nearly seven times as many mortgaged properties as those connected to Katrina, with more than 11 times the principal balances.

Combining the preliminary estimates for both Harvey and Irma suggests that over 3.3 million total mortgaged properties are located in Irma and Harvey-related FEMA Disaster zones, while the dollar amount of total unpaid mortgage balances in these two zones is massive: between Irma’s $517 billion and Harvey’s $179 billion, the total potential damage could impact as much as a $696 billion in notional mortgage values, which banks could be on the hook for if current occupiers decide to simply walk away.

Based on back of the envelope analyses by Black Knight, an extrapolation of the Katrina damage would suggest that Florida could suffer as much as 750,000 mortgage delinquencies as a result of Hurricane Irma.

To be sure, there are mitigating circumstances: Florida borrowers likely have more insurance and less exposure to loss, but for those homes with the most damage, homeowners will be making the same calculation as those that suffered devastating flooding after Harvey. Another issue in Florida according to Olick is that even a decade later, the housing market is still recovering from the foreclosure crisis. Five percent of Florida borrowers still owe more on their mortgages than their homes are worth, and an additional 5 percent have very little equity in their homes. Home prices in Fort Myers, which saw considerable flooding from Irma, are still 29 percent below what they were during the housing boom.

Still, in order to avoid a surge in foreclosures, lenders are more likely to offer borrowers, even seriously delinquent borrowers, options to catch up, although the biggest risk to lenders will be in Houston, where some homeowners may see no good reason to stay.

There was some silver lining: “As Irma forged its path of destruction through the Caribbean, one relatively positive development was that Puerto Rico escaped the direct hit many had predicted. From a mortgage performance perspective, this was particularly good news, as delinquencies, there were already quite high leading up to the storm. At more than 10 percent, Puerto Rico’s delinquency rate is nearly three times that of the U.S. average, as is its 5.8 percent serious delinquency rate. In contrast, the disaster areas declared in Florida have starting delinquency rates below the national average, providing more than a glimmer of optimism as we move forward.”

Unfortunately, Hurricane Maria, now a Category 3, is expected to hit Puerto Rico sometime on Wednesday, adding to the damage already suffered from Irma, and potentially sending the already bankrupt territory reeling even deeper into the financial hole.

Via ZeroHedge


Featured Image: Army Sgt. Jonathan Mazella, a swift water tech, encounters a severely damaged neighborhood in Scout Key. During their maritime rescue and reconnaissance mission many of the Florida National Guard’s Chemical Biological Radiological Nuclear Emergency Response Force-Package teams encountered demolished homes and sunken boats throughout the area. (Photo by Staff Sgt. Carmen Fleischmann) Florida National Guard/Flickr

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Will Las Vegas be an ‘Amsterdam’ on steroids? Door opens for pot lounges

What happens in Vegas will still stay in Vegas — but perhaps no longer behind closed doors, at least when it comes to pot.

Earlier this week, Nevada’s Legislative Counsel Bureau gave the green light for marijuana to be permitted in public places, as long as patrons are of legal age. Citing a lack of state law, the bureau said cities and counties could create their own ordinances governing marijuana consumption in businesses.

Pro-marijuana advocates hailed it as a logical next step for the state, which was the most recent to legalize recreational weed. Nevada started allowing adults 21 and older to buy it on July 1, but like the other four states where it’s legal, restricts its use to private residences.

Via NBC News


Featured Image: Tracy Hunter/Flickr

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CIA agent blows whistle on deep state and shadow government

A CIA whistleblower, Kevin Shipp, has emerged from the wolves den to expose the deep state and the shadow government which he calls two entirely separate entities.

“The shadow government controls the deep state and manipulates our elected government behind the scenes,” Shipp warned in a recent talk at a Geoengineeringwatch.org conference.

Shipp had a series of slides explaining how the deep state and shadow government functions as well as the horrific crimes they are committing against U.S. citizens.

Some of the revelations the former CIA anti-terrorism counter intelligence officer revealed included that “Google Earth was set up through the National Geospatial Intelligence Agency and InQtel.” Indeed he is correct, the CIA and NGA owned the company Google acquired, Keyhole Inc., paying an undisclosed sum for the company to turn its tech into what we now know as Google Earth. Another curious investor in Keyhole Inc. was none other than the venture capital firm In-Q-Tel run by the CIA according to a press release at the time.

Shipp also disclosed that the agency known as the Joint Special Ops Command (JSOC) is the “president’s secret army” which he can use for secret assassinations, overturning governments and things the American people don’t know about.

FBI warrantless searches violate the Fourth Amendment with national security letters, which Shipp noted enables them to walk into your employer’s office and demand all your financial records and if he or she says anything about them being there they can put your supervisor in jail or drop a case against themselves using the “State’s Secret Privilege law.”

“The top of the shadow government is the National Security Agency and the Central Intelligence Agency,” Shipp said.

Shipp expressed that the CIA was created through the Council on Foreign relations with no congressional approval, and historically the CFR is also tied into the mainstream media (MSM.) He elaborated that the CIA was the “central node” of the shadow government and controlled all of other 16 intelligence agencies despite the existence of the DNI. The agency also controls defense and intelligence contractors, can manipulate the president and political decisions, has the power to start wars, torture, initiate coups, and commit false flag attacks he said.

As Shipp stated, the CIA was created through executive order by then President Harry Truman by the signing of the National Security Act of 1947.

According to Shipp, the deep state is comprised of the military industrial complex, intelligence contractors, defense contractors, MIC lobbyist, Wall St (offshore accounts), Federal Reserve, IMF/World Bank, Treasury, Foreign lobbyists, and Central Banks.

In the shocking, explosive presentation, Shipp went on to express that there are “over 10,000 secret sites in the U.S.” that formed after 9/11. There are “1,291 secret government agencies, 1,931 large private corporations and over 4,800,000 Americans that he knows of who have a secrecy clearance, and 854,000 who have Top Secret clearance, explaining they signed their lives away bound by an agreement.

He also detailed how Congress is owned by the Military Industrial Complex through the Congressional Armed Services Committee (48 senior members of Congress) giving those members money in return for a vote on the spending bill for the military and intelligence budget.

He even touched on what he called the “secret intelligence industrial complex,” which he called the center of the shadow government including the CIA, NSA, NRO, and NGA.

Shipp further stated that around the “secret intelligence industrial complex” you have the big five conglomerate of intelligence contractors – Leidos Holdings, CSRA, CACI, SAIC, and Booz Allen Hamilton. He noted that the work they do is “top secret and unreported.”

The whistleblower remarked that these intelligence contractors are accountable to no one including Congress, echoing the words of Senator Daniel Inouye when he himself blew the whistle on the shadow government during the Iran-Contra hearings in 1987.

At the time Inouye expressed that the “shadow government had its own funding mechanism, shadowy Navy, and Air Force freedom to pursue its own goals free from all checks and balances and free from the law itself.”

Shipp further added that the shadow government and elected government were in the midst of a visible cold war.

So who is Shipp and is he credible as a whistleblower, does he have credentials for the CIA? Aim.orgwrote:

Shipp held several high-level positions in the CIA. He was assigned as a protective agent for the Director of Central Intelligence, a counterintelligence investigator, a Counter Terrorism Center officer, a team leader protecting sensitive CIA assets from assassination, a manager of high-risk protective operations, a lead instructor for members of allied governments, an internal staff security investigator, and a polygraph examiner. He was tasked with protecting the CIA from foreign agent penetration and the chief of training for the CIA federal police force.  Mr. Shipp functioned as program manager for the Department of State, Diplomatic Security, and Anti Terrorism Assistance global police training program.  He is the recipient of two CIA Meritorious Unit Citations, three Exceptional Performance Awards and a Medallion for overseas covert operations.  He is the author of From the Company of Shadows–CIA Operations and the War on Terrorism.

Shipp noted he was working with former NSA whistleblower William Binney but didn’t state what the two were working on together. Shipp is highly credible and may just be the highest level whistleblower. This leak is huge. He has been previously mentioned in the New York Times for blowing the whistle on the mistreatment of him and his family when they were put in a mold-contaminated home. He is also mentioned in a WikiLeaks cable during the GiFiles that I was able to dig up. Is this the beginning of whistleblowers coming forward to end the shadow government and deep state? You can watch Shipp’s full explosive presentation below.

Via Activist Post


Featured Image: Ben Fruen/Flickr

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Clinton still doesn’t get ‘what happened’

Hillary Clinton’s new memoir of her failed presidential campaign is titled “What Happened.” A better title would be “What Happened?” because Clinton apparently has no idea.

Clinton has blamed her loss on an ever-changing cast of characters — Russia, WikiLeaks, James Comey and Bernie Sanders. Now she has put the blame on a new scapegoat: millions of bigoted white nationalists.

Clinton told Jane Pauley of CBS News’ “Sunday Morning” that Donald Trump won because he “was quite successful in referencing a nostalgia that would give hope, comfort, settle grievances, for millions of people who were upset about gains that were made by others,” Clinton said. When Pauley asked, “What you’re saying is millions of white people?” Clinton replied, “Millions of white people, yeah. Millions of white people.”

Via Post and Courier 


Featured Image: Screencapture via NBC News/YouTube

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Obama travel total now tops $105M

The taxpayer tab for former President Barack Obama’s travel during two terms in office keeps climbing, according to new records obtained by Judicial Watch.

The conservative foundation announced Thursday that the total for security, airfare, hotels, and motorcades for the Obamas’ trips stands at $105,662,975.27.

Via Washington Free Beacon


Featured Image: President Barack Obama talks with Ben Rhodes, Deputy National Security Advisor for Strategic Communications, aboard Air Force One en route to New York, N.Y., to commemorate the tenth anniversary of the 9/11 attacks against the United States, Sunday, Sept. 11, 2011. (Official White House Photo by Pete Souza)..This official White House photograph is being made available only for publication by news organizations and/or for personal use printing by the subject(s) of the photograph. The photograph may not be manipulated in any way and may not be used in commercial or political materials, advertisements, emails, products, promotions that in any way suggests approval or endorsement of the President, the First Family, or the White House. (US Embassy, Jakarta/Flickr)

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