The Never-ending Government Bailout of Mortgage Borrowers by Taxpayers

Confounded Interest ^ | 1/28/2012 | Anthony B. Sanders

[whitedog57]

In a nutshell, the Obama Administration wants to expand the already existing the Home Affordable Modification Program (or HAMP) to forgive debt to those who are “underwater.” The Administration would require mortgage giants Fannie Mae and Freddie Mac, the mortgage insurance giants in the DC area, to forgive mortgage debt. Bear in mind that the housing and credit bubble were put into motion by President Clinton and HUD Secretaries Henry Cisneros and Andrew Cuomo with their National Homeownership Strategy to encourage households to buy housing and accumulate debt. Here is the NHS document that was removed from HUD’s website: nhsdream1

HAMP Tier 2 will be in addition to the FHA refi program that President Obama announced in his State of the Union Address. HAMP Tier 2 will be leveled at Fannie Mae and Freddie Mac.

Thus far, the Administration has given us HAMP I, HARP I, HARP 2.0 (through Executive Order), the SOTU refi program, and now HAMP Tier 2.

[whitedog57]

Hold on to your wallets!

[ronnie raygun]

Being in DC 365 days a year inspires them to scheme and scam new ideas to make themselves rich. This like many others are nothing more than ponzi schemes. Get in at the bottom move up fast when the bottom falls out they bail it out with tax payer money. Or if there is still skin in the game they prop it up on life support tax payer money again. There is a political cosa nostra running this country, making themselves rich and sticking the bill on us and our children.

[ronnie raygun]

Being in DC 365 days a year inspires them to scheme and scam new ideas to make themselves rich. This like many others are nothing more than ponzi schemes. Get in at the bottom move up fast when the bottom falls out they bail it out with tax payer money. Or if there is still skin in the game they prop it up on life support tax payer money again. There is a political cosa nostra running this country, making themselves rich and sticking the bill on us and our children.

[freedumb2003]

Here I just paid off my mortgage AS I PROMISED (actually, better than promised) and took on a new one which I am paying AS I PROMISED.

I am a total sucker.

[freedumb2003]

Duplicate: http://www.freerepublic.com/focus/f-bloggers/2839450/posts

[PGalt]

Thanks for the information/post.

[Huskrrrr]

Even with a great credit rating and good income I've been unable to refi with GMAC finance. Today I received the news my APR rate of 5.25% is being adjusted after 7 years to 3.35% good for 12 months. Probably won't go up much next year either. There is good news to those of use who responsibly pay our mortgage on time, year after year. I do realize that I am at the mercy of ever adjusting interest rates and that they WILL go up eventually. But for now, I'm seeing a reduction of $500 in my payment.

[DJ MacWoW]

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[Revel]

“Thus far, the Administration has given us HAMP I, HARP I, HARP 2.0 (through Executive Order)”

All spending must originate from congress. Once again...Where is the congress in allowing this and all the other spending from Whitehouse departments from occurring without congress voting to allow it. This president and his cronies have turned out constitution into toilet paper. And even a republican controlled congress has no desire to stop it.

[raybbr]

This is great! Obama will forgive say, fifty thousand dollars of your mortgage. Then the IRS will tax it. Then you will have to sell it to Obama at a loss to pay the IRS.

The goal is to have the feds own every house they can in the U.S. so they can charge rent to pay off the debt.

[Terry Mross]

I have loan officer friends who say they read about this but nothing ever happens.

Fannie and Freddit may do this on the mortgages they own but those owned by the big banks won’t get adjusted. If that happens I see a huge class action suit against Wells Fargo, BOA, etc.