Posted on 09/14/2009 11:19:17 AM PDT by FromLori
President Obama stood in New York at "high noon" and talked about how we must have "change", and that we have "helped homeowners avoid foreclosures", how "we must put in place reforms" and that "we have helped come back from the brink" and "an irresponsible period of crisis."
In fact, in his speech he said:
So I want to urge you to demonstrate that you take this obligation to heart. To put greater effort into helping families who need their mortgages modified under my administration's homeownership plan. To help small business owners who desperately need loans and who are bearing the brunt of the decline in available credit. To help communities that would benefit from the financing you could provide, or the community development institutions you could support. To come up with creative approaches to improve financial education and to bring banking to those who live and work entirely outside the banking system. And, of course, to embrace serious financial reform, not fight it.
Really Mr. President?
Perhaps you would like to explain this - the outcome of the FHA under your Administration thus far?
Bluntly: You're lying when it comes to having these institutions make only sustainable, safe and sound loans, along with helping Americans keep their homes.
(The spreadsheet can be found here: http://spreadsheets.google.com/ccc?key=0AirpBiMjpGTLdHdfWkJlM2JBbHBiZkpuZk9vTldBV1E&hl=en)
The worse news? The portfolio has doubled over the last two years, with 2.6 million loans added (of a total of 5.18 million.)
So what's the story on recent loans? We don't have an accurate number on that, but this much is clear: The claim that FHA only has a single-digit default and delinquency rate, and is helping Americans own and keep their homes is a BALD-FACED LIE.
Sustainable mortgages eh? "Helping homeowners" eh?
Not a snowball's chance in Hell according not to your lies but the mathematical FACTS as represented in ACTUAL default rates.
ONE IN FIVE FHA mortgages is either late or in foreclosure?
ONE IN FIVE?!
I'm tired of the lying and so is everyone else.
We The People demand THE TRUTH.
THE TRUTH is that:
FHA has been and still is putting Americans into loans they cannot afford, as is proved by the default and foreclosure statistics.
The housing and banking industry HAS NOT reformed its ways, specifically, pushing loans on people they cannot afford, and the FHA is blatantly conspiring with these clowns in APPROVING loans that statistically have a one in five shot at failure.
The claim that these mortgage programs are "helping Americans" is a damned lie. No program that winds up with one in five borrowers unable to pay - a rate double that of credit-card defaults - can be said to be "sustainable", "safe", or 'helping homeowners."
We must clear the bad, un-serviceable debt from the system. Papering it over or worse, transferring it to The Federal Government where you think people won't find it won't work.
The only solution to the housing crisis is that prices for homes must come down to where they are actually affordable on a long-term, sustainable basis. This means that we must demand 20% down payments, 28% front end and 36% back end ratios, without exception.
I have said this must happen for more than two years and now the results on "the alternative" pushed by the Federal Government, including Fannie, Freddie and the FHA are in: their promulgated "alternative" does not work, cannot work, and is leading to ruinously-bad default rates, leaving homeowners just as screwed as they were before - if not more so.
FHA and VA are today writing loans with 3.5% down (and in fact 0% down if you use the $8,000 "home buyers credit") and ignoring safe and sound front and back end ratio limits in a desperate attempt to prevent that which must happen to restore a sound housing industry: A decline in prices to sustainable levels.
THE EFFORT TO PAPER OVER THE TRUTH WITH MORE AND MORE LIES HAS FAILED.
I understand that the housing and lending "industry", particularly the latter, are desperate to prevent a contraction to sustainable pricing as house prices returning to sustainable levels will wipe out a huge number of banks - including some of our nation's largest institutions.
But whether they (or you) like it or not this has to happen and the longer we "resist" the inevitable decline all the way to sustainable pricing and closing the insolvent institutions you and The Fed are propping up through blatant accounting fictions the worse the outcome will be for America and our economy.
Thanks to Krista for digging up the facts. We cannot allow, as citizens, the outrageous lies of our government, delivered by a grinning teleprompter-reading handmaiden to those who have and continue to loot the public and its' Treasury, to stand unchallenged.
Wall Street should wise up & simply ignore the jOker and the Dhimmicrats.
The only thing this bum wants to do is destroy Capitalism and Free Enterprise.
The big goal is punishing whitey for, well, being whitey.
Destruction of the system under which “white” culture has thrived is just one of the ways to do so.
The vast majority of those who live outside the banking system are illegals. Many banks (Wells Fargo) don't have a problem giving mortgages to illegals.
Here's a creative approach - how about people sit down at the kitchen table and do a budget to determine how much they can reasonably repay and not buy into the McMansion society when they obviously can't afford it.
The best way to avoid foreclosure is to NOT take out a loan that you can’t afford, or a loan that you wouldn’t be able to afford if you were out of work for as little as two months.
We better take em to the streets at every opportunity. After all we paid for them.
Seems to me if we look at the overall of the Obama misAdministration....the entire picture, not just this important part of the picture, we can see raparations in progress.
Not intended to be a racist commentary, but if it is taken that way, too bad.
When TOTUS called out the legislator who would oversee the process for financial regulation, “my good friend Barney Frank,” it was another BOHICA moment.
Thanks you can be assured I will put it to good use!
Now he wants to control credit/financing and the risk markets through insurance “reform” while simultaneously complaining that credit isn’t availkable for main street to grow and be taxed to death . What a joke
I live in a tourist area and developments are popping up all over and new construction of vacation homes is on the boom. I’ve lived here all my life and have NEVER seen such a RAPID RISE in new home building. In the past, even in good market times there were more sales of previously owned homes but now days it’s mainly new construction. There are still people with lots of money to spread around.
I think Denniger has a great comprehension of part of the problem. What he missed here, is that loan modification could entail a loan write down. I have one client who is supposed to get such a writedown, although the mortgage servicer will not put it in writing. Writedowns would lower the unrealistic prices.
parsy, who still thinks the economy is headed real far south
“There are still people with lots of money to spread around”
Democrat limousine liberals obviously.
Texas Democrats:
Sheila Jackson Lee, Texas Limousine Liberal
Lloyd Bentsen of Texas
Wealthy attorney Mikal Watts (D)
Houston hair-care millionaire businessman Farouk Shami (D)
State Rep. Jessica Farrar, D-Houston, chair of the House Democratic Caucus
Redundant!
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