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Probably a dumb question, but how can the Government force these lenders to refi/restructure a loan to somebody that lost their job and there is no job for the lender in the near or far future?

Sorry, meant how can a mortgagee afford the payments if he does not have a job!

They are adopting the “Cuban plan”...soon you will see 2 or more families in the same house. Probably the tax payer and 2 dead beat families....snicker....(end sarcasm)

acoulterfan wrote:
Probably a dumb question, but how can the Government force these lenders to refi/restructure a loan to somebody that lost their job and there is no job for the lender in the near or far future?

Well, first, I'm not the expert on this. I've just been reading Help For Homeowners which came from the Official White House web site.

If you go to either of those pages, and click the link what options might be available to you, depending on the circumstances of your mortgage, (or click the link right here), look at the third example, Family C.

How does Obama force the banks to do this? Any bank that has taken TARP money will probably get an ultimatum, "Do this, or pay the money back now."

Any smaller bank that hasn't taken TARP funds will probably get all their regulatory oversight requests delayed or rejected until they play along. Banks are highly regulated, and some decisions require government approval before they can proceed. Non conforming banks will probably find their requests put at the bottom of the pile.

And remember, the banks will be subsidized for half of their loss, according to the Obama proposal. The House or the Senate could increase that subsidy if they want.

I don't support any of this. I'm just forwarding what I've read.

And I've already made a prediction over on the other thread, but I'll make a few more.

Predictions:

"Help For Homeowners" is not the actual legislation. It's an overview from the Obama white house. The actual legislation will probably be written by Pelosi and her committee chair cohorts. I'll stick my neck out here and say Bawney Fwank will probably write most of the bill. It will have additional pork added, and maybe a bit of "tuning."
The 50/50 split of the loss is one area I can see where "tuning" will happen. I see it going 60/40 or 65/35. Who gets the short end depends on how good the lobbying is, and how much cash goes to the campaign coffers of Frank and Dodd. With adequate lobbying, the taxpayers get the big loss. If campaigns aren't funded, the banks get the big part of the loss.
This will be signed into law on or before March 4, 2009. I'm repeating this prediction from the other thread.
This is an Emergency Measure, and will go straight to the house floor.
No Republicans will be involved in writing the bill. No Republican amendments will be accepted before the full House passes it.
Two or three RINOs will probably help it through the Senate, with some minor Republican amendments.
It will go to conference. The Dems will be the only ones invited to the conference committee.
The final votes on the conference committee report will occur before anyone can read the final bill.

That recipe worked so well for the Generational Theft Act, I don't see where they will change anything for this.

Probably a dumb question, but how can the Government force these lenders to refi/restructure a loan to somebody that lost their job and there is no job for the lender in the near or far future?

The rest of us will be picking up the tab for the difference. The mortgage companies will still get their profit, we will just be helping all the homeowners pay their monthly bills.

Same way Bush did in 2002 when loans were given with NO SSN’s and Section 8 vouchers as down payment.