Skip to comments.Obama Pulls The Trigger On The January Surprise
Posted on 01/28/2012 7:35:51 AM PST by KeyLargo
Obama Pulls The Trigger On The January Surprise
James Pethokoukis, American Enterprise Institute
Jan. 25, 2012
I told you so. This was the housing policy bombshell from President Barack Obamas State of the Union address:
And while Government cant fix the problem on its own, responsible homeowners shouldnt have to sit and wait for the housing market to hit bottom to get some relief. Thats why Im sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage, by refinancing at historically low interest rates. No more red tape. No more runaround from the banks. A small fee on the largest financial institutions will ensure that it wont add to the deficit, and will give banks that were rescued by taxpayers a chance to repay a deficit of trust.
Thunderbolt. A mass mortgage refinancing plan with a new bank tax to pay for it. Obamas description is sketchy, but heres how ace analyst Jaret Seiberg of Guggenheim Washington Research Group sees this new plan playing out:
The President is pushing an easy-to-execute plan to let borrowers refinance mortgages regardless of LTV. This is a much bolder initiative than expected, though we emphasize that it is a legislative proposal that cannot take effect unless Congress enacts it. Were this enacted into law, this would be a mass refinancing that we believe could help more than 10 million borrowers refinance their mortgages regardless of whether their loan is backed by the government or not.
(Excerpt) Read more at businessinsider.com ...
Speaker Boehner: “This plan is DOA!”
This does not sound good. The reason our economy tanked is because the Dems tried to make home ownership an entitlement.
This sounds like more government meddling and creation of policies that are not consistent with sound business procedures.
'Read my lips, no new taxes'
If they were responsible, 99.9% wouldn't be in this trouble. Rule #1 - Don't buy over your budget.
The same ol' same ol' for the last 50 years or so...
Yeah, yeah... I agree with y’all - but I can dream, can’t I?
What if you don't have FHA or Fanny Mae Loans?
Conservatives will ignore or deride this at their peril. People are stuck in a bad situation not of their making and are watching their creditworthiness and net worth go right down the tubes along with their jobs and houses. They don’t know and won’t care about the fine points of moral hazard and Constitutionality, and so will support it, to the detriment of our nation. A conservative alternative that doesn’t have these problems but provides some relief on a similar scale is in order, in order to counter. The blame game will point out that the bubble inflated under a Republican president and the policies that made it possible came to fruition under Republicans. Better nip it in the bud right now, or a second term for Obama will become all that much more likely.
But...but...they ARE responsible. It's those EVIIIIL real estate agents that are telling them that they can have their millionaires dream home, like they see on their favorite soap opera, on a $25,000/yr budget. /MS
Government then has no other choice but to come in and give them their million dollar home for free so they can be happy voters!
What an asshole
Mortgage modification program expanded to investors, others
By Mary Ellen Podmolik
5:05 PM CST, January 27, 2012
The Obama administration on Friday announced it would significantly broaden the pool of consumers eligible for mortgage modifications by opening its program to owners of rental properties and homeowners burdened by medical and credit card bills and second mortgages.
Under an expansion of the Home Affordable Modification Program, investors can seek mortgage loan modifications for rental properties, regardless of whether the home is occupied by a tenant or it is vacant but the owner plans to rent it. Previously, only owner-occupants were eligible for loan modifications under the government’s plan, but officials said they decided to take this step because foreclosed rental properties were having a particularly detrimental effect on low- and moderate-income renters.
“The whole purpose of HAMP is to try and prevent foreclosures,” said Treasury Assistant Secretary Tim Massad in a conference call with reporters Friday afternoon. “We’re expanding it to investor-owned properties for the same reason. If your neighbor is foreclosed on, whether they’re an owner or a tenant, that affects you and all your neighbors. We’re allowing them to get modifications. They still have to prove a hardship and go through a protocol that proves this is a good use of taxpayer money.”
Do you mean SOMEONE ELSE OWNS THEM?
I'd suggest we get our money back now before they get used to this.
Most folks bought their homes within budget limits. The market adjusted to a far greater degree than anyone had ever imagined. Job losses returned to Great Depression levels.
No doubt your advice was followed.
The Obama proposal to have the government guarantee refinancing homes that are underwater are in theory a mortgage but in reality an unsecured loan at below market rates without collateral to back that portion of the loan that is in excess of the property’s valuation. What’s next? The government guaranteeing everyone’s credit cards?
It is all the democrat's red tape. I refinanced during Bush's years, and it cost me $300. I refinanced again last year, and it cost me $4000. With the same bank. Even though they've been holding my loan for years, they had to treat it like a brand-new loan, which meant tons of paperwork, an appraisal, a new full title search. It cost the bank lots to do all the paperwork, so it cost me a lot for the refinance. I barely came out ahead on the deal, and if I wasn't trying to get money out for college, I wouldn;'t have bothered. Now interest rates are down another half-point. Without the democrat's new onerous regulations, I could refinance again and it would be cost-effective. But because of the new rules, it would cost too much. And I'm sure I won't qualify for anything Obama is suggesting, because I actually pay my debts, and wasn't stupid enough to refinance my house at 105% of it's value at the peak of the market for a monthly payment I couldn't afford. Only stupid people get bailouts.
Outstanding Ad Highlights Generational Theft of Obamas Leftist Agenda: We WERE the Obama Generation. . . We ARE the Debt Generation Video
If my home loan is through a local Credit Union does the government force them to change payment terms?
If my home loan is through a local Credit Union does the government force them to change payment terms?
The housing bubble was the direct result of the community reinvestment act (scheme to force lenders to lower the bar on loan qualifications in order to make home ownership more accessible to a larger block of dumbocrat voters) signed into law by the peanut head in ‘76.’ The law was given more strength in 96 by slick willie (after all, he was handed an internet ipo boom by the folks at Netscape). It started to go off the rails when those low-bar borrowers started defaulting. The big lenders fannie and freddy (and others), seeing their bottom lines evaporating started shuffling bundled bad mortgages (derivatives) around, inflating perceived wealth. When the bubble burst, W did what his advisers told him to do.....basically what zippy is doing right now....government bailout!
Not absolutely sure, but it is likely the CRA was crafted and drafted by the same community organizer types that mobilized zippy’s run in 08.
It is absolutely hypocritical for zippy to claim the problems were caused by the previous administration when in fact they were caused by two previous dim-o-crad administrations, and that the attempted solution (tarp/government bailouts) is exactly what zippy would have done/is doing/will continue to do.
Tea party principles (strict Constitution adherence) need to infect the the gop, and a reckoning is most called for.
First straighten out the housing they already screwed up with no money down financing. More no qualification loans. Yes the will screw a couple more generations. Obama just doesn’t get it. Give more crack to addicts.
I sat and watched this moron say he would not make the same mistake again, and here it is only a few days since the SOTU speech and he is doing the same thing again.
You know if we had someone who was president that was a radical marxist who supported redistribion of wealth and equality via inequality. It doesn’t seem to be much of a stretch of the imagine to think he might want to distroy private homeownship.
You know in the interest of “fairness”
90% of homeowners would willingly give up their right to private homeownership. Although, if you own a home that is worth less and less and you can’t sell it on the regular market. Perhaps,the government could help out and buy your home in exchange you get to stay in your home?
“Not absolutely sure, but it is likely the CRA was crafted and drafted by the same community organizer types that mobilized zippys run in 08.”
How right you are...
A Freeper posted an ACORN brochure pdf-—”Success” Stories from the ACORN Housing Corporation.
Here’s a damning quote:
“The agreements expand the traditional definition of income to include government sources such as PUBLIC ASSISTANCE, FOOD STAMPS, foster care and Social Security. This opens the door to homeownership for many families whose jobs alone do not meet the bank’s income guidelines.”
90% of homeowners would [NOT] willingly give up their right to private homeownership.
Although, if you own a home that is worth less and less doesn’t sell on the open market.
Perhaps,the government could help out and buy your home for you.
In exchange you get to stay in your home or live in another government owned home of equal or lesser value?
You would have a choice. Isn’t that what American is all about?
More news to think about...
REVIEW & OUTLOOK
JANUARY 27, 2012
The Loan Quota Rule
HUD tries to pre-empt the Supreme Court on loan discrimination.
For the latest example of regulatory overreach, look no further than the Department of Housing and Urban Development, which is pushing through a rule to support racial loan quotas a few months before the Supreme Court will rule on whether that’s legal. The Obama Administration’s “fair housing” agenda, apparently, just can’t wait.
At issue is the 1968 Fair Housing Act, which prohibits discrimination “because of race, color, religion, sex, handicap, familial status, or national origin” (our italics). The language clearly implies an intent to discriminate. But courts have brushed the pesky text aside over the years, citing ...
JANUARY 28, 2012
Home-Aid Program Expanded
more in Politics & Policy »
BY ALAN ZIBEL AND NICK TIMIRAOS
WASHINGTONThe Obama administration said Friday it would give troubled homeowners another year to enroll in its signature mortgage-assistance program and increase payments to banks in an effort to get them to more aggressively reduce borrowers’ loan balances.
The changes represent the latest overhaul of the administration’s foreclosure-prevention efforts, which President Barack Obama launched three years ago. The administration has fallen far short of its original goal of modifying three million to four million mortgages.
The administration’s Home Affordable Modification Program had been set to expire at the end of this year but will now be extended until the end of .
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