US gov't launches mortgage aid program

AP ^ | 2 October 2008 | Alan Zibel

[Jimmy Valentine's brother]

The government kicked off a program Wednesday that aims to prevent foreclosures by letting an estimated 400,000 troubled U.S. homeowners swap their mortgages for more affordable loans.

[Jimmy Valentine's brother]

The $300 billion, three-year program is designed to help borrowers who owe more on their loans than their homes are worth.

And now we're being asked to pony up another $700B. Crap sandwhich indeeed!

[Loyalist]

When these people default on their mortgages again, as many of them will, will the American taxpayer be shaken down again for another bailout?

[pnh102]

When these people default on their mortgages again, as many of them will, will the American taxpayer be shaken down again for another bailout?

Yes.

[ClearCase_guy]

If they gave money to responsible people who made good decisions, they might end up with a larger number of responsible people who made good decisions.

Or they can follow their current plan. Then we will have a larger number of irresponsible people who take foolish risks and expect other people to pay the cost. Our future looks grim.

[quack]

This is what happens in a socialist country.You can rest assured that the next big headlines will read “US govt. launches Health Care Aid”,and watch the Republican hypocrites that voted FOR the “Dodd Amendment” wail about nationalized health care.

[Jimmy Valentine's brother]

Maybe but if the House doesn’t stand firm against the Crap Sandwich will be carry our dollars in wheel barrows.

[TenthAmendmentChampion]

Critics, however, call the government's actions sluggish and inadequate. Earlier action to modify loans, they say, might have prevented a $700 billion financial industry bailout now being debated in Washington. Executives from Citigroup, JPMorgan Chase, Bank of America and Wells Fargo told lawmakers last month they have been hiring additional workers to put the new program in place. Still, it is unclear whether the industry will embrace the plan fully. One concern is that investors in mortgage securities must take an immediate loss and can't recoup their lost money if home prices turn upward again.

So... the banks and we are spending beaucoup bucks for this, and it may not work anyway? A nice yellow drink to go with the crap sandwich.

[silverleaf]

There is no “affordability” floor to for loans to people who lack a sense of personal accountability to anyone but themselves, who are talked down to by democrats and RINOs as “victims” of the American economy.

We have now turned any borrower who wants to jump on the Uncle Sam’s gravy train, into a “victim”

It looks like the fed gubmint will eventually be operating entire neighborhoods, cities, of “affordable housing” wher no one can be evicted for any reason. At least they know who to call when the plumbing backs up! Call a Senator!

[TenthAmendmentChampion]

Or you may have this:

Over 3,000 houses in Detroit for sale right now for less than $10,000 (some are free!)

[vietvet67]

[Paine in the Neck]

When these people default on their mortgages again, as many of them will, will the American taxpayer be shaken down again for another bailout?

You betcha!

[Jimmy Valentine's brother]

Congress already approved a half crap sand which now it wants to give us a full one.

The current proposed legislation does nothing for the taxpayer.

No investigation into the cause and perps - Pelosi has guaranteed that.
No plan to do away with Freddie, Fannie and Sallie.
No requirement for corporate executives to become dollar a year men if they request Fed guarantees. Iaccoca was man enough to do it

[Bobarian]

Remind me again: What happens when you reward bad behavior?

[icwhatudo]

Just curious, is that $300 billion in addition to the currently debated $700 Billion dollar bailout bill, the separate $630 Billion the The Federal Reserve will pump into the global financial system or the just approved $600 billion spending bill that funds the government into March and the the 180 Billion the Federal Reserve pumped into the system last week.

[Leisler]

Since this will prevent/delay houses from being more affordable, especially to working couples with modest incomes and good credit.....we'll need more programs/taxes to help them afford that which the government/taxes/regulations have made un affordable.

Get it?

Naturally for unwed, minority, illegal, Muslim welfare mothers, they will be taken care of, won't have to work, will have free time to march with ACORN/LA RAZA/NATION OF ISLAM.

I have to say, the Democrats really do take care and reward their voting base. Too bad our GOP, elitist, financialist centric just take care of people from the right prep schools.

The GOP is so pathetic, they haven't in twenty years, had the sack to shut down NPR.

What's that tell you politically?

Where are they spending their political bullets? Certainly not on against gun control, that was done by the courts. Not on property rights.

Where?

......insert sounds of crickets here.....

However, if we think of the GOP as Democrat Lite, then they have done well.

Basically the GOP is a shakedown of the shakedown. That is that just as the Democrats extort us, the GOP hangs around and says to the Democrats, ‘Hey, what did you extract from the people? Give me some, or I'll make it a little harder on you, my friend, to get stuff’.

[LetsRok]

"The $300 billion, three-year program is designed to help borrowers who owe more on their loans than their homes are worth. "

Isn't this EVERYONE who has a taken out a mortgage in the past 5 year?? Where do I sign up? I bought my house for $850K in 2005 and now it is only worth probably $750K.

[Renkluaf]

55% of subprime mortgages as of August were CASH-OUT REFINANCES, meaning they took equity out of the house. Anyone who did so for any reason other than medical bills should not be granted assistance.

[TADSLOS]

"La Raza runs one of the largest housing counseling programs in the country that has helped tens of thousands of Latinos become homeowners with secure mortgages. But millions of Americans have been hurt by the mortgage crisis and falling home values, and many in the Hispanic community have been especially hard hit. I want to help people who genuinely need assistance in these tough times, not speculators and lenders who contributed to this mess and didn't follow the basics of good business practice. I am committed to making sure families who want to hold onto their home have a chance to do so. My HOME plan allows families who need help to apply -- either at their local Post Office or online -- for a new, guaranteed, fixed-rate, 30-year mortgage that will allow them to remain in their home, and raise their family with dignity."- John Mccain, La Raza National Convention, San Diego, 14 July

I guess some campaign promises do come true- before the elcetion.08

[longtermmemmory]

IOW the people still pay double for their home and the original note holder walks away mostly intact at taxpayer expense.

the new loans should be at the actual value of the collateral not the faudulently inflated value.

[sickoflibs]

I would also add :
1) Capital gains tax cut
2) any money made (unlikely) by selling these worthless bills is an income tax cut, not a phony Obama tax rebate

That is REAL taxpayer protection