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Kramer Law: Congressional Oversight Panel Weighs in on Robo-Signing

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Calabasas, California (PRWEB) June 19, 2011

The Law Offices of Kramer and Kaslow released comments from lead attorney Philip Kramer regarding the latest Huffington Post article on the findings of the Congressional Oversight Panel. According to the article, the Congressional Oversight Panel, a federal watchdog created to keep tabs on the bailout, says that the “robo-signing of affidavits served to cover up the fact that loan servicers cannot demonstrate the facts required to conduct a lawful foreclosure. In essence, banks may be unable to prove that they own the mortgage loans they claim to own,” the panel said.

The article also quotes Sheila Bair, the chairman of the Federal Deposit Insurance Corporation. Blair said at a Senate panel last month that “flawed mortgage banking processes have potentially infected millions of foreclosures. The extent of the loss cannot be determined until there is a comprehensive review of the loan files and documentation of the process dealing with problem loans,” she added.

The Huffington Post reports that despite that appraisal, Bair, along with Treasury Secretary Timothy Geithner and Shaun Donovan, secretary of Housing and Urban Development, have said they want a quick settlement.

Philip A. Kramer, a Southern California attorney whose law firm Kramer & Kaslow has launched half a dozen consolidated plaintiff litigation suits against banks for such behavior commented. Of course they want to settle this quickly,” said Kramer. “If the wrongdoing by the banks is looked at closely, if it is looked at systemically, I suspect that it may well turns out there are are hundreds of thousands of loans, perhaps millions and that is not an exaggerated number for which the banks simply do not have the proper paperwork to legally foreclose, much less prove ownership.

According to the Huffington Post article, Kramers views are getting some serious support as the Attorneys General of all 50 states look into the matter. The article says that New York Attorney General Eric Schneiderman has been particularly aggressive and has targeted Bank of America, the biggest U.S. bank by assets, in a new probe that questions the validity of potentially thousands of mortgage securities and their associated foreclosures, two people familiar with the matter said.

The Huffington Post reports that, The inquiry could prove explosive: Wall Street’s great mortgage securitization machine took millions of home loans and bundled them into securities for sale to investors. If the legal steps that guide securitization — like taking mortgage documents from one party to another, a critical step under New York law — were not undertaken, then the investors who bought the bundled loans could force the companies to buy them back, compelling them to eat enormous losses.

Philip Kramer is quick to point out that there is another conclusion to Schneidermans investigations. If the New York Attorney General finds that those securities aren’t valid financial instruments at all they could take action under state law. They may end up awarding the homes to the borrowers because the banks cannot prove ownership.

More of Philip Kramers comments can be found at the Kramer and Kaslow blog.

ABOUT PHILIP KRAMER

PHILIP A. KRAMER is the senior partner of the Law Office of Kramer & Kaslow, in Calabasas, California. Kramer & Kaslow is Martindale Hubbell AV rated. Mr. Kramer is a perennial recipient of the prestigious Southern California Super Lawyer award.

Mr. Kramer received his undergraduate degree from Ohio State University and his Juris Doctorate from the Catholic University of America, in Washington, DC. His practice emphasizes commercial litigation and trial advocacy, with a concentration on business litigation, and real property matters. He has prosecuted and defended cases for over twenty five years.

Mr. Kramer is a licensed real estate broker and has spent considerable time providing legal services in connection with real estate issues relating to loan modification and loss mitigation, land use and zoning, environmental issues, easements, construction and development, finance, and landlord tenant matters.

Mr. Kramer is admitted to practice before all courts in the State of California, the United States Supreme Court and the United States Court of Military Appeals. Mr. Kramer has tried in excess of 200 cases. He has appeared on nationally televised programs regarding pre-trial procedure and trial strategy and has appeared as a guest lecturer on topics ranging from constitutional law to trial practice, and Mr. Kramer frequently lectures on a broad spectrum of various legal and business issues.

Mr. Kramer also serves as a Judge Pro Tem for the Los Angeles Superior Court and as a Mediator.

Mr. Kramer is also a past president of the Los Angeles West Inns of Court, a national organization dedicated to bringing professionalism and civility back into the legal profession. He also serves on numerous Boards of Directors and serves as an officer in many companies. For more information call (818) 224-3900 or visit http://kramer-kaslow.com

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Kramer Law: Congressional Oversight Panel Weighs in on Robo-Signing

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Calabasas, California (PRWEB) June 19, 2011

The Law Offices of Kramer and Kaslow released comments from lead attorney Philip Kramer regarding the latest Huffington Post article on the findings of the Congressional Oversight Panel. According to the article, the Congressional Oversight Panel, a federal watchdog created to keep tabs on the bailout, says that the “robo-signing of affidavits served to cover up the fact that loan servicers cannot demonstrate the facts required to conduct a lawful foreclosure. In essence, banks may be unable to prove that they own the mortgage loans they claim to own,” the panel said.

The article also quotes Sheila Bair, the chairman of the Federal Deposit Insurance Corporation. Blair said at a Senate panel last month that “flawed mortgage banking processes have potentially infected millions of foreclosures. The extent of the loss cannot be determined until there is a comprehensive review of the loan files and documentation of the process dealing with problem loans,” she added.

The Huffington Post reports that despite that appraisal, Bair, along with Treasury Secretary Timothy Geithner and Shaun Donovan, secretary of Housing and Urban Development, have said they want a quick settlement.

Philip A. Kramer, a Southern California attorney whose law firm Kramer & Kaslow has launched half a dozen consolidated plaintiff litigation suits against banks for such behavior commented. Of course they want to settle this quickly,” said Kramer. “If the wrongdoing by the banks is looked at closely, if it is looked at systemically, I suspect that it may well turns out there are are hundreds of thousands of loans, perhaps millions and that is not an exaggerated number for which the banks simply do not have the proper paperwork to legally foreclose, much less prove ownership.

According to the Huffington Post article, Kramers views are getting some serious support as the Attorneys General of all 50 states look into the matter. The article says that New York Attorney General Eric Schneiderman has been particularly aggressive and has targeted Bank of America, the biggest U.S. bank by assets, in a new probe that questions the validity of potentially thousands of mortgage securities and their associated foreclosures, two people familiar with the matter said.

The Huffington Post reports that, The inquiry could prove explosive: Wall Street’s great mortgage securitization machine took millions of home loans and bundled them into securities for sale to investors. If the legal steps that guide securitization — like taking mortgage documents from one party to another, a critical step under New York law — were not undertaken, then the investors who bought the bundled loans could force the companies to buy them back, compelling them to eat enormous losses.

Philip Kramer is quick to point out that there is another conclusion to Schneidermans investigations. If the New York Attorney General finds that those securities aren’t valid financial instruments at all they could take action under state law. They may end up awarding the homes to the borrowers because the banks cannot prove ownership.

More of Philip Kramers comments can be found at the Kramer and Kaslow blog.

ABOUT PHILIP KRAMER

PHILIP A. KRAMER is the senior partner of the Law Office of Kramer & Kaslow, in Calabasas, California. Kramer & Kaslow is Martindale Hubbell AV rated. Mr. Kramer is a perennial recipient of the prestigious Southern California Super Lawyer award.

Mr. Kramer received his undergraduate degree from Ohio State University and his Juris Doctorate from the Catholic University of America, in Washington, DC. His practice emphasizes commercial litigation and trial advocacy, with a concentration on business litigation, and real property matters. He has prosecuted and defended cases for over twenty five years.

Mr. Kramer is a licensed real estate broker and has spent considerable time providing legal services in connection with real estate issues relating to loan modification and loss mitigation, land use and zoning, environmental issues, easements, construction and development, finance, and landlord tenant matters.

Mr. Kramer is admitted to practice before all courts in the State of California, the United States Supreme Court and the United States Court of Military Appeals. Mr. Kramer has tried in excess of 200 cases. He has appeared on nationally televised programs regarding pre-trial procedure and trial strategy and has appeared as a guest lecturer on topics ranging from constitutional law to trial practice, and Mr. Kramer frequently lectures on a broad spectrum of various legal and business issues.

Mr. Kramer also serves as a Judge Pro Tem for the Los Angeles Superior Court and as a Mediator.

Mr. Kramer is also a past president of the Los Angeles West Inns of Court, a national organization dedicated to bringing professionalism and civility back into the legal profession. He also serves on numerous Boards of Directors and serves as an officer in many companies. For more information call (818) 224-3900 or visit http://kramer-kaslow.com

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Marabella Commercial Finance, Inc. Originates Permanent Financing for a 1031 Net Leased Walgreen Pharmacy and Kohls Department Store in Second Quarter 2011

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Carlsbad, CA (PRWEB) June 21, 2011

Marabella Commercial Finance, Inc. originates permanent financing for a 1031 Net Leased Walgreen Pharmacy and Kohls Department Store.

Marabella Commercial Finance, Inc. funded a $ 4.8 million loan for the Kohls corporate leased department store. The Buyer for this transaction was involved in a 1031 exchange transaction. The Borrower requested a long fixed rate loan term and amortization. Marabella Commercial Finance, Inc. arranged a Life Company loan with a 15 year fixed rate and 25 year amortization giving the borrower a more manageable balloon payment in the fifteenth year with excellent cash flow. The Borrower wanted a forward rate lock so Marabella Commercial Finance, Inc. structured an approximate 90 day forward rate lock and the rate was locked early in the process at 5.875%. This loan was Non-Recourse with Standard Carve-Outs. Marabella negotiated an annual non-cumulative partial prepayment of ten percent (10%) of the outstanding loan balance without a prepayment premium. This loan was applied for on around March 18, 2011 and funded on June 15, 2011.

For the Walgreen Corporate leased pharmacy Christian S. Marabella of Marabella Commercial Finance, Inc. met with the Borrower at Marabellas satellite office in Beverly Hills, California and structured a Bank Portfolio Loan which will give the Borrower a lot of flexibility in the future if they need to work with the bank for any reason versus that of a securitized loan where the loan is sold to bond investors on Wall Street. The loan amount that was required per the 1031 Exchange came to $ 5,500,000 (Upleg). The rate on this loan was a very low 5.35% and again Marabella Commercial Finance, Inc. negotiated a 90 day forward rate lock on behalf of the clients. The amortization for this loan was 30 years and the loan was due and payable in the 10th year. The Borrowers also requested a Non-Recourse loan with standard carve-outs which was structured. A highlight of this loan was the very friendly prepayment penalty of only $ 2,500 during the first nine years of loan term again giving the Borrowers a lot of flexibility if they consider refinancing or selling the property to a new purchaser in the 10 year period. This loan was applied for on around March 15, 2011 and funded on June 15, 2011.

About Marabella Commercial Finance

Marabella Commercial Finance specializes in arranging financing for 1031 Exchange Net Lease Buyers, Commercial Investment Properties and Large Anchored Centers. Past Credit Tenant Net Lease Properties that Marabella Commercial Finance has originated loans for are; Walgreens, CVS, Kohls, Safe-Way Stores, Rite Aid, Jack in the Box, 7-Eleven, Family Dollar, CSK Automotive, and Large Anchored Centers with credit tenants. MCF is a member of the Mortgage Bankers Association and most recently participated in the International Council of Shopping Center’s 2011 annual convention in Las Vegas. Christian S. Marabella who is President of Marabella Commercial Finance, Inc. is also in charge of Media Relations for the Association of Commercial Real Estate Executives Inland Empire (Ontario, California).

Contact:

Christian S. Marabella – President

Marabella Commercial Finance

We Finance America’s 1031 Exchange Net Lease Properties

(760) 479-0800

Email: nnn(at)marabellafinance(dot)com

http://www.marabellafinance.com

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Gainesville Coins Announces, The Celebrate Our Right to Own Precious Metals Promotion

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(PRWEB) June 24, 2011

Gainesville Coins Announces, The Celebrate Our Right to Own Precious Metals Promotion Friday, June 24, 2011

In light of the concerns raised by the Dodd-Frank Law, Gainesville Coins will discount Shipping on all orders of Bullion Gold and Silver bought between June 24th and July 15th.

Gainesville Coins has been receiving a number of inquiries regarding the impact of the Dodd-Frank financial overhaul bill on the silver and gold market. Specifically, we have been asked whether the legislation has any similarity to the U.S. governments actions in 1933 that removed gold coins from circulation and made it illegal for U.S. citizens to own gold. The Dodd-Frank legislation DOES NOT impact the individual investors ability to own gold and silver.

The impact of the Dodd Frank legislation on the precious metals market is to restrict the ability of brokerages from providing investors the ability to trade in over the counter (OTC) futures, including gold and silver futures.

There are two venues to trade derivatives, including futures the over the counter derivatives market, and the exchange traded derivatives market. Over the counter derivatives are traded off an exchange. For precious metals investors, the CME is the main exchange for gold and silver derivatives, including futures and option. The legislation only impacts those trades that DO NOT occur on an exchange. Futures and options that trade on an exchange are not affected.

In an OTC futures transaction, the buyer and seller enter into an agreement to buy or sell gold at a predetermined price, quantity, and date. The difference between an OTC futures contract and an exchange traded futures contract is that in a OTC transaction, these terms are not standardized. Like exchange traded derivative contracts, OTC contracts have margin requirements set to ensure that both parties will perform on their obligation to either buy or sell. However, unlike exchange traded futures, these transactions are not centrally cleared. This means that a failure to perform by one side of the transaction could result in economic harm to the other side of the transaction. This is known as counterparty risk. Futures traded on an exchange, like the CME, do not subject either party to counterparty risk, and this is the reason for the changes being made through the Dodd Frank legislation.

During the financial crisis of 2008, OTC derivatives, specifically OTC derivatives tied to BBB tranches of subprime mortgages caused a near total financial meltdown when AIG was unable to perform on its obligation. AIG had written hundreds of billions of dollars in OTC credit default swaps on BBB tranches of subprime mortgage securitizations. When these securities went down in value on the housing market implosion, AIG did not have sufficient cash to pay the buyers of this insurance. This is one of the main reasons for the Dodd-Frank Legislation. Because these derivative contracts were over the-counter, and not centrally cleared, AIGs failure to perform on its obligation raised the possibility of a cascade of financial failures. The Federal Government was ultimately forced to intervene to stop the financial contagion. Removing the risk of counterparty failure, and thus moving much of the OTC derivatives market onto an exchange, is one of the key drivers behind this legislation.

With all that said, hopefully with some clarity, Gainesville Coins would like to re-iterate that there IS NO IMPACT on individuals ability to own gold or silver. The only impact is on the ability of an individual to buy gold and silver in the OTC market. There is no change to gold and silver futures traded on an exchange.

Finally, it should be noted that there are exceptions to this legislation. For example, if you can qualify as a Qualified Eligible Participant (QEP), you are exempt from this legislation. For example, to qualify as a QEP, you would need to show a net worth of $ 1 million in assets. Also if you can prove that you can satisfy the obligations created by an OTC futures transaction within 28 days, you would also be exempt. It is up to each brokerage house to determine whether an individual investor qualifies under these exemptions. As a final note, the Dodd-Frank legislation only impacts leveraged or margined OTC transactions. These changes go into effect on July 15th, 2011.

When ordering use this promo code: owngold360

Buy Online 24/7 at http://www.GainesvilleCoins.com

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Foreclosure Decision Supports Information in New Book for Troubled Homeowners

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Eugene, OR (PRWEB) July 13, 2011

A decision handed down on May 31, 2011 in the case of Herrera v. Deutsch in the California 3rd District Appellate Court in El Dorado, case number C065630, has massive implications for homeowners facing foreclosure. The court ruled that the documents provided by the defendants, Deutsch Bank National Trust Company, and the California Reconveyance Company, were insufficient to prove that that bank had interest in in the property, and thus the right to foreclose and sell the home. This ruling has established an important case law for California about foreclosure and lender’s standing to foreclose. Results for this case can be found at http://www.westregion.com/Title%20Insurance%20Pages/Cases/Opinions/Herrera_v_DeutscheBank.pdf

Author of the Foreclosure Defense Guidebook, Vince Khan, says, This is a great victory for homeowners facing foreclosure in California. In his book, Khan explains, in plain English, the banking worlds claim, or lack thereof, on the housing market. He tells his own story of challenging his lenders, empowering himself and everyone who seeks his guidance to look for alternatives, even when it looks as if none exist. In Foreclosure Defense Guidebook, Khan discusses the legality of the foreclosure process and how banks play off consumer ignorance to take houses which arent actually theirs.

Khan felt it important to release this book in paper format to give even more people access to this information. The people who need this help the most may not have the luxury of a computer with which to read this book.

Foreclosure Defense Guidebook can be purchased on Vince Khans website for $ 12.99 and on Amazon.com. An ebook version is available on the website for no cost. For more information or to speak with Khan, please contact him at the address below.

About the Author:

Vince Khan was where millions of other Americans have found themselves recently: foreclosure. He lost his money in two start-up ventures and was unable to make house payments. Searching for a solution, he began researching foreclosures and the specific issue of bank securitization. He compiled his thousands of hours of research into his book, Foreclosure Defense Guidebook: An Easy to Understand Guide to Saving Your Home from Foreclosure.

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Former Freddie Mac Senior Vice President Joins The Collingwood Group As Special Advisor

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(PRWEB) July 27, 2011

The Collingwood Group announced today that it has retained Manoj K. Singh as a Special Advisor, working with the Collingwood Group to bring his unique expertise in risk management along with his senior level experience on Wall Street. In his new role, Dr. Singh will work with The Collingwood Group to further help clients navigate the business opportunities that exist in Washington as a result of the housing crisis.

Dr. Singh has a lengthy and strong background in Financial Services. Most recently Senior Vice President of Pricing and Securitization (Single Family) and, before that, Senior Vice President, Head of Market Risk Management for Freddie Mac, he worked closely with the credit guarantee business, managed the profitability of the Single-Family Credit Guarantee business, identified key drivers of credit risk, and developed recommendations for the corporate costing models, creating strategies to expand and improve Freddie Macs mortgage securities funding alternatives and overseeing its cash execution program. His primary responsibilities included pricing the guarantee fees under Freddie Macs Mortgage Backed Securities Program and the issuance of pass-thru as well as structured securities. In addition to Single-Family Sourcing, Dr. Singh worked closely with Credit Management, Investments & Capital Markets, Credit and Counterparty Risk Management, and Operations.

Prior to joining Freddie Mac, Dr. Singh held executive-level positions with Bear, Stearns & Co (Senior Managing Director, FAST Group), Lehman Brothers, Inc. (Senior Vice President, Risk Management), and Wasserstein Perella Capital Management (Vice President, R&D). His thirteen years of experience with Wall Street provided him with the knowledge to help investors pursue mortgage and real estate assets while enabling them to identify the true risks and value of their targets. His career started in academia, as Assistant Professor of Finance at Boston College.

We are delighted to welcome Manoj to The Collingwood Group team, said Tim Rood, a Partner with The Collingwood Group The Collingwood Group announced today that it has retained Manoj K. Singh as a Special Advisor, working with the Collingwood Group to bring his unique expertise in risk management along with his senior level experience on Wall Street. In his new role, Dr. Singh will work with The Collingwood Group to further help clients navigate the business opportunities that exist in Washington as a result of the housing crisis.

Dr. Singh has a lengthy and strong background in Financial Services. Most recently Senior Vice President of Pricing and Securitization (Single Family) and, before that, Senior Vice President, Head of Market Risk Management for Freddie Mac, he worked closely with the credit guarantee business, managed the profitability of the Single-Family Credit Guarantee business, identified key drivers of credit risk, and developed recommendations for the corporate costing models, creating strategies to expand and improve Freddie Macs mortgage securities funding alternatives and overseeing its cash execution program. His primary responsibilities included pricing the guarantee fees under Freddie Macs Mortgage Backed Securities Program and the issuance of pass-thru as well as structured securities. In addition to Single-Family Sourcing, Dr. Singh worked closely with Credit Management, Investments & Capital Markets, Credit and Counterparty Risk Management, and Operations.

Prior to joining Freddie Mac, Dr. Singh held executive-level positions with Bear, Stearns & Co (Senior Managing Director, FAST Group), Lehman Brothers, Inc. (Senior Vice President, Risk Management), and Wasserstein Perella Capital Management (Vice President, R&D). His thirteen years of experience with Wall Street provided him with the knowledge to help investors pursue mortgage and real estate assets while enabling them to identify the true risks and value of their targets. His career started in academia, as Assistant Professor of Finance at Boston College.

We are delighted to welcome Manoj to The Collingwood Group team, said Tim Rood, a Partner with The Collingwood Group. We have advised our clients that the watershed moment of asset sales is upon us and his unique expertise will be invaluable to our private equity and hedge fund clients looking to buy or sell mortgage and real estate assets”.

Brian Montgomery, Vice Chairman of The Collingwood Group, agrees. Manoj brings a unique set of skills to our company and our clients that will further enhance our competencies in providing an integrated mix of high level business advisory services. His involvement with our firm will supplement our already wide range of proficiencies in assisting our financial services clientele.

Dr. Singh received his Bachelors Degree from the Indian Institute of Technology in Kanpur, and both his Masters of Science Degree and his Ph.D. from Purdue University. His has published numerous research publications, and is a frequent presenter at industry conferences. He has refereed journals such as Management Science, Journal of Financial and Quantitative Analysis, Journal of the American Real Estate and Urban Economics Association, and Journal of Financial Research, and was a book reviewer for the Journal of Finance. He and his family live in McLean, Virginia.

About The Collingwood Group

The Collingwood Group (http://www.collingwoodllc.com) is a Washington, DC-based business advisory firm focused on growing clients businesses, promoting revenue growth and increasing investment returns. The firm is led by Joe Murin, former President and CEO of Ginnie Mae, and Brian Montgomery, former Assistant Secretary for Housing and Federal Housing Commissioner. Both played major roles in the federal governments efforts to address the nations financial crisis and restore stability and liquidity to financial markets. The firms expertise spans all aspects of Agency, non-Agency and FHA/VA housing financing programs; Ginnie Mae securitization activities; domestic and international secondary market activities and issues; primary and special servicing; full asset lifecycle vendor and talent management; and all elements of portfolio due diligence, acquisition, property management and asset disposition.

Contact:

Debra Kaufmann

The Collingwood Group

dkaufmann(at)collingwoodllc(dot)com

o: 202.626.9724

m: 301.252.3582

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Attorney Walter Keane Explains Unfavorable Ruling of Quiet Title Split the Note Theory by Controlling Jurisdiction

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Salt Lake City, UT (PRWEB) August 01, 2011

From his Salt Lake City office, Real Estate Attorney Walter Keane provides insight on the recent ruling by the Utah court of appeals which rejected the “split-the-note” argument.

On July 14, 2011, the Utah court of appeals issued Commonwealth Property Advocates, LLC vs. Mortgage Electronic Registration System, Inc. (MERS), 2011 UT App 232 (July 14, 2011). Keane says he found out about the ruling on July 15th during a court hearing in which Keane was arguing a quiet title cause of action based on “split-the-note.”

Keane, who recently taught a seminar for Utah Attorneys regarding his successful Foreclosure Defense strategies, explained that the “split the note” argument asserts that because MERS holds the trust deed (and the promissory note is held by an unknown third party due to securitization), the trust deed has been “split from the note.” This concept was first articulated in Carpenter v. Longan, 83 U.S. 271 (1872). Keane has based several of his cases upon this argument, and has been successful in using it to nullify trust deeds in Utah.

The Commonwealth opinion specifically addresses the “split the note” argument and fully rejected it. Following the rationale of the Utah United States district courts, the Commonwealth Court reasoned in Utah Code

The Ethics and Economics of the Great Recession”

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Washington, D.C. (PRWEB) August 05, 2011

Do economists need a code of ethics? Its not a question often asked about the 2008 financial crisis and great recession that followedespecially when compared to questions about mortgage securitization, monetary policy, and risk. But should it be?

Martha Starr, editor of the new book Consequences of Economic Downturn: Beyond the Usual Economics (Palgrave Macmillan, 2011), says yes, and that we should be asking more questions like it.

The book, a collection of essays by numerous economists, explores the economists-and-ethics question as well as other questions examining the ethical, social, political, cultural, and educational factors behind the crisis and recession.

We need to consider these other issues if we hope to prevent crises and downturns like this in the future, said Starr, an associate professor of economics at American University and a former Federal Reserve economist.

Ethics for Economists?

After the crisis hit, numerous people have asked why, despite all the warning signs building up to the crisis, did influential economic policymakers fail to act? Starr says one contributing reason could be that economists have no code of conduct or ethical guidelines ensuring that they use their professional skills in the public interest.

Unlike almost any other academic professionstatisticians, mathematicians, physicists, sociologists, you name iteconomists have always opposed adopting an ethical code outlining how they should act, Starr said.

The result? Little or no compulsion to spot and thwart developments leading up to the crisis (such as the housing price bubble, rise of subprime lending, and proliferation of collateralized debt obligations) that could (and did) spiral out of control and cause great distress for people ill prepared to withstand prolonged economic and financial distressparticularly the economically disadvantaged and the average working American.

So, why dont economists have a code of conduct or ethical oath? The author of the books essay on this subject, George DeMartino of the University of Denver, says such a code would oversimplify the complex ethical situations that economists face. Instead, he suggests a field of professional economic ethicssimilar to the field of medical ethicsto study how economists should address explicit problems that arise in their profession. Starr herself disagrees and thinks economists need clearly spelled out guidelines to help them steer away from ethically problematic situations.

A well-written code could make people think hard before, for instance, accepting $ 135,000 in speakers fees from an investment bank, then giving that investment bank privileged access to the White House, said Starr, referring to Goldman Sachs paying that sum in 2008 to then-top White House economic adviser Lawrence Summers.

The Privilege of Power: Shifting Risk While Reaping Rewards

Another essay in the book focuses on why the too big to fail organizations took on such outrageously risky investments in the first place. Of course, risky investments present the greatest opportunities for high returns. But the reward is supposed to be tied to the risk. The risks are supposed to pay a premium to make up for the uncertainty in future earnings.

But Starr says in contemporary American capitalism, risk and reward effectively have been divorcedespecially for the powerful.

Numerous laws, practices, policies, and institutions enable the wealthy and powerful to push risks off themselves and onto othersespecially the unsuspecting taxpayer, Starr said.

Take the concept limited liability, which dictates that an investor cannot lose more than he or she invested in a venture. While it was designed to foster new business creation by shielding investors from losing the shirts off their backs if a venture fails, it also creates a screen behind which people can save returns while they are accumulating. If things turn sour, investors get to keep the returns they earned and saved when things were going well.

With the financial crisis, financial executives could keep the outsized earnings they accumulated during the boom years through subprime lending and mortgage backed-securities, but after the bubble burst, the governments Troubled Asset Relief Program shifted the risks onto Joe and Jane Taxpayer.

Not only had the average American not agreed to take on these risks and had not benefited from the outsized gains, but they also bore most of the costs of the downturn through lost jobs, homes, home equity, and retirement savings, Starr said.

The Critically Important Role of the Average American

Other essays in the book explore different issues pertaining to average Americans, such as the pressure we place on ourselves to keep up with the Joneses and whether the recession really impacted men moreor just differently than it did women.

Starr says she hopes the book sheds light on how the crisis and recession affected the average American, whose role in the U.S. economy is critically important.

Consumer spending accounts for about 70 percent of domestic economic activity, Starr pointed out. When average Americans are out of work, have lost their homes and or their savings, they have little if anything to spend and help support the economy.

American University is a leader in global education, enrolling a diverse student body from throughout the United States and nearly 140 countries. Located in Washington, D.C., the university provides opportunities for academic excellence, public service, and internships in the nations capital and around the world.

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CompuGain Acquires the Mortgage Division of Overture Technologies, Inc.

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Herndon, VA (PRWEB) August 22, 2011

CompuGain is pleased to announce the acquisition of the Mortgage Division of Overture Technologies, Inc., a leading provider of decisioning software solutions. Overture Technologies applies decades of experience in the mortgage finance industry to provide specialized tools that help customers make informed and sound decisions about what to buy or sell and what to approve or refer. Overtures solution suite is a high-performance loan decision system that can be used for loan-level and pool risk assessment, eligibility, and pricing of new and seasoned assets.

We are extremely excited to announce the acquisition of Overture Technologies Mortgage division. Together, with the addition of the Overture staff and product offerings, CompuGain will now have the ability to deliver fully integrated and best in class services to the Mortgage Finance domain, said Debasish Hota, President & CEO of CompuGain Corporation.

Overtures Mortgage division enables transparent, accurate, and responsive lending processes required for the mortgage and finance industries. With the addition of Overtures Mortgage division, CompuGain will be able to leverage its existing service offerings to enhance and implement a world-class decisioning software solution to existing and new clients.

Overture is proud to be a part of the CompuGain team. Their past performance as a professional services firm, their financial strength and the exceptional intellectual capital that resides within the walls of CompuGain is a huge asset and something that we look forward to being able to leverage to help our clients realize their business objectives. We are extremely fortunate and excited to be a part of the next chapter in CompuGains history, said LeRoy Pingho, CEO of Overture Technologies, Inc.

The newly acquired company will operate as a wholly-owned subsidiary of CompuGain Corporation and will conduct business under the Overture Financial Solutions business name. Together, CompuGain and Overture Financial Solutions will consult and work as an integrated delivery team to help its business partners make better and more informed decisions utilizing an integrated set of CompuGain/Overture solutions.

About Overture Technologies, Inc:

Founded in 2000, Overture Technologies is the leading provider of decisioning software solutions that enable the transparent, accurate and responsive lending processes required for todays mortgage and education finance industries.

Overtures customers are dedicated to providing superior mortgage underwriting, servicing and securitization services and to increasing students access to higher education financing alternatives. The leadership team shares in these goals and applies decades of experience from leading financial services and technology firms including Fannie Mae, Freddie Mac, Goldman Sachs, IBM and KPMG to helping its customers achieve those goals.

Specific to the Mortgage Finance Solutions division, Overture serves the breadth of the mortgage finance value chain with automated decisioning technology for underwriting, pricing, servicing and valuing mortgage loans and mortgage assets.

For more information about Overture Technologies, please visit http://www.overturecorp.com.

About Compugain Corporation:

CompuGain is a global provider of Professional Services and innovative IT Solutions.

Established as a certified Minority-Owned Business Enterprise (MBE), CompuGain has partnered with its clients in a variety of industries to help improve productivity, reduce costs and increase revenue. CompuGain understands the importance of running an agile business – CompuGain offers a total professional service offering that includes contract placement, temp-to-perm, permanent placement, consulting and project based engagements to help its clients operate more efficiently. With an expanded and fully integrated portfolio of professional services and with an ever-increasing global footprint, CompuGain is well-positioned to support the business growth of its clients.

For more information about CompuGain, please visit http://www.compugain.com.

Advisory Services and Representation:

CompuGain was advised by o3 Capital Global Advisory a full service international Investment Bank with offices in New York, Mumbai and Bangalore and represented by Pillsbury, a full service law firm in Fairfax, Virginia.

Overture was represented by Odin, Feldman & Pittleman, PC a full service law firm headquartered in Fairfax, Virginia.

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