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
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.