Obama Pulls The Trigger On The January Surprise

Business Insider ^ | Jan 25, 2012 | James Pethokoukis

[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 Obama’s State of the Union address:

And while Government can’t fix the problem on its own, responsible homeowners shouldn’t have to sit and wait for the housing market to hit bottom to get some relief. That’s why I’m 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 won’t 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. Obama’s description is sketchy, but here’s 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. …

[Mike Darancette]

If my home loan is through a local Credit Union does the government force them to change payment terms?

[Mike Darancette]

If my home loan is through a local Credit Union does the government force them to change payment terms?

[petro45acp]

Absolutely correct!

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.

Cheers

[ncfool]

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.

[Venturer]

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.

[Leep]

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?

[Mortrey]

“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.”

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.”

[Leep]

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?

[KeyLargo]

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 ...

http://online.wsj.com/article/SB10001424052970204616504577171092486999610.html?mod=googlenews_wsj

[KeyLargo]

POLITICS
JANUARY 28, 2012

Home-Aid Program Expanded

more in Politics & Policy »
BY ALAN ZIBEL AND NICK TIMIRAOS

WASHINGTON—The 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 .

http://online.wsj.com/article/SB10001424052970204661604577187273371383982.html?mod=googlenews_wsj