The President's Loan Modification Plan and the Lessons of Universal Health Care

The Provocateur ^ | 07/18/2009 | Mike Volpe

[fiscon1]

The president's plan for loan modifications has been an abysmal failure. The reasons for its failures should be examined especially in the context of the president's plan for universal health care.

With a bit of fanfare, the president announced his plan to save up to seven million households from foreclosure. The eligible loans were any loans securitized by Fannie Mae/Freddie Mac. Any borrower living in the property they wanted to modify, with a hardship, no more than a loan to value of 105%, not already in foreclosure, a mortgage amount of less than $759,000, and a new housing debt to income of 31% with an interest rate of 2% or more would qualify. (among other rules) Meanwhile, banks could participate voluntarily but they would receive an annual stipend of $1000 and they would get a monthly stipend equal to the difference in payment between 38% and 31%. Borrowers would also see their balances reduced by an extra $1000 for every year they made their payments on time.

[boatbums]

If the Health Care plan is ANYTHING like the loan modification plan, we are in deep doo doo.

My spouse and I started the refinance process back in December 2008. There was a problem with our credit report - we resolved it by February, 2009 (a >$200.00 medical insurance disagreement that the Dr's billing service had to fix - not our fault).

Here it is JULY and we are still waiting for formal approval and an actual closing date. We meet all the criteria for approval.

If we have Universal Health Care crammed down our throats, can you imagine waiting 8+ months for a doctor's appointment or surgery?

Can we please have common sense and free-enterprize back?

[padre35]

To me, this sort of article is key, Obama promised the world and delivered next to nothing...again.

He should be held to account for it.