are ppl forgetting the other $300 billion that was passed to help mortgage forclosures?
There is no amount money that can be thrown at people who are facing mortgage foreclosure that will help them. We have to help them by looking at the root of the problem. None of these loans were “toxic loans” until the interest rates went from fixed interest rates to variable interest rates. The solution is to put everyone back to their fixed interest rate status that they had before they adjusted. Most borrowers could afford their loans before they adjusted.
And the $400B+ the Federal Reserve and the FDIC has lent, spent or been obligated to?
yitbos
As I posted on that thread:
Some of the more obvious wing-dingers from the article:
The number of homeowners who could lose their homes to foreclosure by the end of 2009 is estimated by some to be around 2.8 million. Under the legislation, 400,000 having trouble with payments could avoid it by trading their loans for new, more affordable mortgages through the Federal Housing Administration.
. . .
Their banks would have to agree to allow the swap and to take a large loss in exchange for avoiding the lengthy and costly foreclosure process. To qualify, homeowners would have to be paying more than 31 percent of their incomes toward their mortgages and show they could afford to make the payments on a new, smaller loan.
. . .
“By expanding homeownership opportunities and protecting families against foreclosure, we are helping keep the American Dream alive,” said House Speaker Nancy Pelosi, D-Calif.
. . .
The bill permanently increases to $625,500 the size of home loans in high-cost areas that the government-sponsored mortgage companies Fannie Mae and Freddie Mac can buy and that the FHA can insure.It would otherwise have reverted to $417,000 for Fannie and Freddie and $362,790 for the FHA by the end of the year.
The White House sought to focus attention on parts of the legislation aimed at calming markets. Those include the offer of a temporary but unlimited government line of credit for troubled Fannie Mae and Freddie Mac. The Treasury Department gains power, until the end of 2009, to lend them emergency money or buy their stock.
***
THINK ABOUT IT!
I think so - but they know that Congress has been passsing a lot of bailouts lately to everyone except the hard working guy who asks for no favors, pays his mortagage on time and just wants to be left alone. He knows that he always ends up paying for the freebies for everyone else.