Posted on 08/05/2010 9:53:06 AM PDT by Qbert
Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help. The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP, a sister program to Obama’s loan modification effort. HARP was just extended through June 30, 2011.
The move, if it happens, would be a stunning political and economic bombshell less than 100 days before a midterm election in which Democrats are currently expected to suffer massive, if not historic losses. The key date to watch is August 17 when the Treasury Department holds a much-hyped meeting on the future of Fannie and Freddie. A few key points:
1) Republican leaders believe this is going to happen since GOPers and Democratic moderates in the Senate are unwilling to spend more taxpayer money on more stimulus. But such a housing plan would allow the White House to sidestep congressional objections and show voters it is doing something tangible about an economy that seems to be weakening.
2) Wall Street banks are alerting their clients privately to this possibility. Here is what some are cautiously saying publicly. This from Goldman Sachs:
(Excerpt) Read more at blogs.reuters.com ...
The ol' gal could use a makeover befitting the more modern times we live in. I'm thinking of something portable, capable of being towed behind a pickup truck. Rather than a tall rig with gravity doing the dirty work, perhaps an adaptation of the gasoline-powered hydraulic log splitter could be devised.
Maybe that's what Obama was promising us in 2008. Change. Chump change.
* Home must be owner occupied
* Property can be 1 to 4 units for a primary residence
* Current mortgage loan must be owned Fannie Mae or Freddie Mac
* Mortgage must be paid current and up-to-date
* Loan-to-value (LTV) can be no more than 125%
HARP
This is only appealing to the sub primers in which it was reported failed to turn in their paperwork/ follow directions last time.(Atleast this is what the banks that are sitting on potloads of money said in vague news reports)
It is a desperate last ditch effort to buy some democratic votes.
The people applying will see some HOPE- until after- the election and they will be told they don’t qualify (or failed to send in all the required documents)
Obama will make it look like ‘everybody’ can get your money for nothin and your chicks for free but it is just the same old useless, already failed, modification program.
Keep in mind that, while foreclosures are numbering a million or more, MOST people are paying their mortgages and are not in foreclosure. MOST people will not like this.
So even if it happens then the subgroup effected will be small and contained enough not to cause widespread re-valutation of homes?
Doesn’t this run counter to everything a signed contract stands for? I guess if you want to destroy capitalism then that is one way to do it...
“I don’t think it’ll work, though.”
But who woulda thought an empty suit like 0 could have been elected in the first place? Never overestimate the American people.
So my neighbor who let his house go on a short sale, and now has a low credit score....will the Messiah fix his credit as well?
well, if he made it to the end of the month without taking another vacation it would be a surprise.
If I’m going to be paying someone else’s mortgage, I want my name on the title when it’s payed off.
Looong bumper sticker: “Honk if I’m buying your family food. Honk again if I’m paying your rent or part of your mortgage.”
Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth.Nope, sorry, that would violate the Equal Protection clause of the Constitution.
Whyever would that stop him?
“A stealth 800 Billion dollar stimulus plan by executive order for the sole purpose of winning the November elections...”
And the socialist redistribution of wealth from the responsible to the irresponsible would continue to pick up steam. Nuthin’ like a good mugging of the American taxpayer to pay for election largesse.
Moron.
“If more irresponsible spending and more unsustainable debt gets enough votes for the Democrats to protect their congressional majorities, it will prove that America is irrevocably on the suicidal path to economic collapse.”
This is the TRUTH right here. We either see right through this debt prevarication and lies, smoke and mirrors by the socialists, or this nation is off the cliff.
The stock market won’t be fooled.
Dow 1000 coming right up!
Any links?
“[T]he rumors are pretty darn strong with Wall Street firms privately warning their clients it is a distinct possibility.”
He’s got his mitts on the piggy bank and this would crack it open and break it for good. Can hardly believe it, but could we expect the socialist to go down without a howl? With just a whimper? What would this to the previously semi-free markets?
“Moron.”
??
“Freddie Fannie borrowers”
Wonder what the demographic on that group is Ds to Rs [70 - 30 perhaps?] - if this is a huge wheelbarrow of moolah for his base, what good does that do in terms of helping his failing presidency/party?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.