Posted on 01/04/2012 7:46:26 PM PST by AU72
That would certainly piss off the people who have been diligent about paying their mortgages.
Congress better put a stop to this crap!
Obama can’t just pretend he can spend Trillions without authorization.
I thought that that is the issue: recess. The Senate is not in recess.
If it hadn’t been for those stupid go-nowhere stimuluses there might actually be room for something like this. But the card is maxed out and the lenders are sending out dunning letters.
Maybe they’d get a sop too.
That’s the problem - 0bambi went around Congress with this appointment, and will the appointee will try to implement this program without the approval of Congress.
I’m one of those people who went broke making all of my payments. This one’s a barfer, but I should be used to it now with this administration.
So what’s the intent here? Is it to pay off everyone’s mortgage, give us all new government backed mortgages? Is this a government takeover of all existing mortgages?
Where does the money come from to pay off everyone’s mortgage and then start them over with a new mortgage? That will cost into the trillions of dollars up front. Who has that kind of money? (The US Treasury does not have that kind of money, as we’re running trillion dollar plus deficits now. There is no money in the government checking account)
It would also piss off the people who bought mortgage bonds.
If this had been put forth three years ago, I'd have even gotten behind assisted buy-downs on principal owed for underwater properties so the market would be freed up in the wake of the bubble bursting.
It likely would have cost less than the tens of trillions tossed down the black hole of the financial industry, and would have gone a long way toward mitigating the effects of the financial crisis.
Too late for that now, a principal buy-down, but a rate buy-down will actually help people and free up a little discretionary spending each month to offset the strange combination of deflation in assets and inflation in food and fuel.
The downside is the same as the upside, though. This puts the stimulus into the broader economy, and there has been one heck of a lot of it, so the risk of igniting genuine inflation and having it take root is real.
When these homeowners refinance with no appraisal, no income verification, etc at no out of pocket costs. Who will buy these mortgage notes if there is no data behind it? Don’t tell me the taxpayer will be on the hook to guarantee these notes. Who will take the refinancing loan application and process it? Will he do it for free?!!! How does one prevent liar loans being created by this refinance program that has very little verification oversight????
CRA jobs are still available at the FDIC.
Hussein will work as hard as possible to destroy the Constitution, traditional Judeo-Christian ethics, and capitalism.
If this is such a win win for Obama why hasnt he already done it?
An injection of money? But doesn't refinancing the mortgages mean that the banks and Fannie and Freddie who hold the current loans along with the investors in the mortgage backed securities will end up with $7.1 billion dollars less per month? So how is this an injection of money into the economy? It looks like it is just moving money from the right pocket to the left one.
Recasting existing notes would be the most likely course, imho. How that would be “encouraged” is an interesting question. It could be said to reduce toxic assets on the books, so there’s that.
They don’t need money. Printed money is obsolete. It is just a bunch of x’s and o’s in a computer at that amount. Just move a few 0’s around here and there and PRESTO...housing problem all fixed.
That kind of meddling has to have adverse effects.
I sure hope Republicans are taking really detailed notes!!!
What’s good for the goose...
The election is less than 11 months away now, and approaching FAST.
Would you want that sort of largesse to come devoid of any consideration, there not being a price to pay for the recipient, so to speak?
We’re looking at a decade or more of problems as it stands, with people stuck in a house they can’t afford to sell for the price that would sell it, and that has consequences as far as reduced incomes and unemployment.
I wouldn’t advocate any meddling at all, if it weren’t for the dire consequences of prior meddling threatening to collapse the whole house of cards. Ideally, we never would have been here in the first place, with 20% down, income verification and the mortgage originator holding the note to maturity.
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