The details of the bill have come out and this is a FARCE. They have the ability to forgive the principle. We know how this is gonna work. Some very wealthy people are going to get part of their mortgages wiped clean and our children and grand children will pay for it. THANKS CONGRESS!
And I think they have finally realized why we had regulations for all these years. The reliability of our financial system is far more important than a few dollars that could be made by not prudently regulating.
and as a nation we might have some really sluggish growth for quite and while but that is FAR BETTER than the alternative. Finally our leaders have done something that will have a significant impact and address the problem instead of putting band aids on the problem.
With the government taking over Fannie and Freddie, AIG, and now are going to be buying HUGE somes of mortgage back securites, there is hope. By doing this they will own or control almost all the mortgages. If they get good deals (like 20 or 30 cents on the dollar), they can stop the bleeding of financial compainies and have the ability to legally unbundle these instruments and possible refinance millions of mortgages that had been insured by AIG. Some banks probably will not survive ....
It's been a month since the law passed and I am already seeing examples of the good implementation of this. People are being given a second chance to keep their homes. I am not on the sidelines, but in the middle of this, and good things are happening. Just as there are examples of corporate and government greed and incompetance in the world, there are examples of great things corporations and governments achieve.
Congress can try to block these people's paths to protecting their dollar by limiting their ability to invest in them like they did in the 30's when they confiscated people's money but what about the foreigners whose American dollars and investments are losing. They will just go around and seize or take control of areas that have a commodite base like Georgia.
the bank should of picked up cause now the FHA will have to pay all the costs you talked about. Go ahead and keep saying it isn't a bail out. But we on the sidelines hear you LOUD and clear. I think it was JP Morgan who said "God wouldn't have made sheep if he didn't mean for them to be sheared." But this is ridiculous. No wonder we sit on the side lines and watch and learn and listen.
The law requires the bank to take a 10% hit below the CURRENT apparised value, so my example would qualify. That's all depreciation to date, plus 10% more. The key point here is to give the bank another option besides foreclosure and forcing a sale at the worst possible time. Virtually all mortgage servicing agreement (the controlling agreement between bank and borrower) give two options: Borrower pays on time or bank forecloses. Avoiding that is the mission here.
And what is CURRENT appraised value. Forgive me for being cynical here but who is doing the appraising and for what purpose. I am sure the taxing intities aren't slashing the appraised values and the banks servicing these loans and offering the refinance aren't either. It took years for us to be able to get the taxing entities to recognize the value appreciation of our homes in Texas. they had a financial incentive not to.
I think the incentive might be in the public's favor this time. If the FHA is making the rules here, and the only way a bank can get these loans off the books is to play ball and absorb the required discount, the FHA is going to use current comps and appraise the value at this moment in time. Their incentive is to go low. Banks face a much harsher reality if they hold the loans, so the FHA is in the driver seat.
I guess that is where we differ and why I am not optimistic. The public sector is based on politics and not money. The way you keep your head in the public sector is not by performance but politics. You keep your mouth shut and do whatever the big bosses say to do and try your best not to be the scape goat. The taxpayers are not the boss of the FHA. It is congress which are controlled by the banking and finance sector.
And the one thing congress knows how to do when they have a problem is to throw money at it. Bust the budget? Who cares, they will just increase the deficit. It will deflate the purchasing power of the dollar? So What? Well many big boys are making sure they convert their dollars into commodites so thay don't get hit with the inflation tax. Does this make sense?
500K - 425K = 75K That is a 15% drop. They wouldn't qualify for the re-finance. They can't be more than 10% under water. Unless the appraiser just lies but they wouldn't do that would they? And when the owner finally wakes up and realizes they just refinanced and are still under water just to bail out the bank they are going to be MAD as hell. Can you blame them. They were lied to. And when they send in the keys and walk anyway, what then? The taxpayer will pick up the tab that the ....
This bill is not the end all & be all in connection with the housing crisis in America. The key to making this bail out work is oversight. The $300M can't become a "pork barrel". The Feds and the Real Estate industry must do there part as well. I like you ideas about how to make it happen. Keep us informed
But who takes the hit for any additional defaults or the people who are so far under water that they simply walk away. and again $300b is money that we dont have in the first place to reinvest. Paulson and helicopter Ben will crash the economy before any of this money will be repaid. Then what?
Perhaps the goverments heart is in the right place, but It's only adding do the growing debt and our overall economy will suffer because of it. We simply can not afford it. The bailouts will kill us in the end.
I see your point Camanojim, but there is a difference here. This isnt a bailout. The bank doesn't get a free ride, they have to take a loss to participate. The borrower pays the loan back. No free ride there. The gov't will share in the appreciation long term. This is a reinvestment in the housing market, not a bailout. The gov't (and taxpayers) are putting money behind the housing market. The $300,000,000,000 will be loans against the best collateral available. It is a brilliently designed law.
The details of the bill have come out and this is a FARCE. They have the ability to forgive the principle. We know how this is gonna work. Some very wealthy people are going to get part of their mortgages wiped clean and our children and grand children will pay for it. THANKS CONGRESS!
remembranceTX 3 years ago
And I think they have finally realized why we had regulations for all these years. The reliability of our financial system is far more important than a few dollars that could be made by not prudently regulating.
remembranceTX 3 years ago
and as a nation we might have some really sluggish growth for quite and while but that is FAR BETTER than the alternative. Finally our leaders have done something that will have a significant impact and address the problem instead of putting band aids on the problem.
remembranceTX 3 years ago
With the government taking over Fannie and Freddie, AIG, and now are going to be buying HUGE somes of mortgage back securites, there is hope. By doing this they will own or control almost all the mortgages. If they get good deals (like 20 or 30 cents on the dollar), they can stop the bleeding of financial compainies and have the ability to legally unbundle these instruments and possible refinance millions of mortgages that had been insured by AIG. Some banks probably will not survive ....
remembranceTX 3 years ago
It's been a month since the law passed and I am already seeing examples of the good implementation of this. People are being given a second chance to keep their homes. I am not on the sidelines, but in the middle of this, and good things are happening. Just as there are examples of corporate and government greed and incompetance in the world, there are examples of great things corporations and governments achieve.
gsrand 3 years ago
Congress can try to block these people's paths to protecting their dollar by limiting their ability to invest in them like they did in the 30's when they confiscated people's money but what about the foreigners whose American dollars and investments are losing. They will just go around and seize or take control of areas that have a commodite base like Georgia.
remembranceTX 3 years ago
the bank should of picked up cause now the FHA will have to pay all the costs you talked about. Go ahead and keep saying it isn't a bail out. But we on the sidelines hear you LOUD and clear. I think it was JP Morgan who said "God wouldn't have made sheep if he didn't mean for them to be sheared." But this is ridiculous. No wonder we sit on the side lines and watch and learn and listen.
remembranceTX 3 years ago
The law requires the bank to take a 10% hit below the CURRENT apparised value, so my example would qualify. That's all depreciation to date, plus 10% more. The key point here is to give the bank another option besides foreclosure and forcing a sale at the worst possible time. Virtually all mortgage servicing agreement (the controlling agreement between bank and borrower) give two options: Borrower pays on time or bank forecloses. Avoiding that is the mission here.
gsrand 3 years ago
And what is CURRENT appraised value. Forgive me for being cynical here but who is doing the appraising and for what purpose. I am sure the taxing intities aren't slashing the appraised values and the banks servicing these loans and offering the refinance aren't either. It took years for us to be able to get the taxing entities to recognize the value appreciation of our homes in Texas. they had a financial incentive not to.
remembranceTX 3 years ago
So how and what do they use to determine the appaised value especially if it is falling every day.
remembranceTX 3 years ago
I think the incentive might be in the public's favor this time. If the FHA is making the rules here, and the only way a bank can get these loans off the books is to play ball and absorb the required discount, the FHA is going to use current comps and appraise the value at this moment in time. Their incentive is to go low. Banks face a much harsher reality if they hold the loans, so the FHA is in the driver seat.
gsrand 3 years ago
I guess that is where we differ and why I am not optimistic. The public sector is based on politics and not money. The way you keep your head in the public sector is not by performance but politics. You keep your mouth shut and do whatever the big bosses say to do and try your best not to be the scape goat. The taxpayers are not the boss of the FHA. It is congress which are controlled by the banking and finance sector.
remembranceTX 3 years ago
And the one thing congress knows how to do when they have a problem is to throw money at it. Bust the budget? Who cares, they will just increase the deficit. It will deflate the purchasing power of the dollar? So What? Well many big boys are making sure they convert their dollars into commodites so thay don't get hit with the inflation tax. Does this make sense?
remembranceTX 3 years ago
500K - 425K = 75K That is a 15% drop. They wouldn't qualify for the re-finance. They can't be more than 10% under water. Unless the appraiser just lies but they wouldn't do that would they? And when the owner finally wakes up and realizes they just refinanced and are still under water just to bail out the bank they are going to be MAD as hell. Can you blame them. They were lied to. And when they send in the keys and walk anyway, what then? The taxpayer will pick up the tab that the ....
remembranceTX 3 years ago
This bill is not the end all & be all in connection with the housing crisis in America. The key to making this bail out work is oversight. The $300M can't become a "pork barrel". The Feds and the Real Estate industry must do there part as well. I like you ideas about how to make it happen. Keep us informed
pauladler1 3 years ago
But who takes the hit for any additional defaults or the people who are so far under water that they simply walk away. and again $300b is money that we dont have in the first place to reinvest. Paulson and helicopter Ben will crash the economy before any of this money will be repaid. Then what?
camanojim 3 years ago
Perhaps the goverments heart is in the right place, but It's only adding do the growing debt and our overall economy will suffer because of it. We simply can not afford it. The bailouts will kill us in the end.
camanojim 3 years ago
I see your point Camanojim, but there is a difference here. This isnt a bailout. The bank doesn't get a free ride, they have to take a loss to participate. The borrower pays the loan back. No free ride there. The gov't will share in the appreciation long term. This is a reinvestment in the housing market, not a bailout. The gov't (and taxpayers) are putting money behind the housing market. The $300,000,000,000 will be loans against the best collateral available. It is a brilliently designed law.
gsrand 3 years ago
Great synopsis - very informative for everybody.
etlnyrealtor 3 years ago
When will the market finish correcting?
vadgegd 3 years ago
Great job!
jwnyrealtor 3 years ago