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Is Obama about to forgive billions in mortgage principal?
Hot Air ^ | 8/5/10 | Ed Morrissey

Posted on 08/05/2010 6:39:02 AM PDT by Daisyjane69

Edited on 08/05/2010 6:53:02 AM PDT by Admin Moderator. [history]

James Pethokoukis hears rumors of an August surprise coming from the White House, one that will attempt to win backs the hearts and minds of voters dismayed at the failing economic policies of the Obama administration. With the government fully in control of Fannie Mae and Freddie Mac, Barack Obama may issue an order to forgive portions of underwater mortgages processed through the GSEs, where negative equity approaches $800 billion overall. Some financial houses have begun quietly preparing for the possibility:

Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help. The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP, a sister program to Obama’s loan modification effort. HARP was just extended through June 30, 2011.

The move, if it happens, would be a stunning political and economic bombshell less than 100 days before a midterm election in which Democrats are currently expected to suffer massive, if not historic losses. The key date to watch is August 17 when the Treasury Department holds a much-hyped meeting on the future of Fannie and Freddie. …


TOPICS: Business/Economy; Constitution/Conservatism; Front Page News; Government; News/Current Events
KEYWORDS: bailout; davidgregoryswife; fanniefreddie; fanniemae; freddiemac; frontpage; mortgage; nbccoverup; pitchforks; porkulus
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Holy smokes!
1 posted on 08/05/2010 6:39:05 AM PDT by Daisyjane69
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To: Daisyjane69

And this is EXACTLY why Fannie and Freddie were not included in the recent Financial ‘Reform’ legislation.


2 posted on 08/05/2010 6:41:07 AM PDT by dirtboy
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To: Daisyjane69

COOL!!!!! Now I can pay for other people’s houses as well. I hate commies!


3 posted on 08/05/2010 6:41:29 AM PDT by rightwingextremist1776
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To: Daisyjane69

Gee, I feel like a fool for paying off my mortgage - is it too late to go buy a house I can’t afford and should not be approved for?


4 posted on 08/05/2010 6:41:52 AM PDT by GnuHere
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To: Daisyjane69

You mean making payments month after month, year after year, just means that I’ve been a sucker?????


5 posted on 08/05/2010 6:42:18 AM PDT by Aria ( "The US republic will endure until Congress discovers it can bribe the public with the people's $.")
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To: Daisyjane69

This is going into place in NC and SC, two states that wobbled purple in the last election and which are currently becoming deep red. There’s a ton of unemployment around here and this would be a cunning payoff to keep a number of heritage Democrats on the plantation, especially older white men who otherwise would vote anti-Democrat (not pro-Republican).


6 posted on 08/05/2010 6:42:31 AM PDT by BelegStrongbow (St. Joseph, patron of fathers, pray for us!)
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To: Daisyjane69

So I should probably stop sending in my mortgage now.


7 posted on 08/05/2010 6:43:30 AM PDT by DManA
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To: Daisyjane69

I’m sure illegals will be included!


8 posted on 08/05/2010 6:44:08 AM PDT by Dr. Ursus
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To: Daisyjane69

Seems being a responsible citizen is for suckers like me!


9 posted on 08/05/2010 6:44:09 AM PDT by TexasCajun
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To: Daisyjane69

This would almost certainly be where we shift from deflation to inflation. They will have to borrow the money from the fed. If this happens, it will be the beginning of the coming hyperinflation.


10 posted on 08/05/2010 6:44:10 AM PDT by RobRoy (The US Today: Revelation 18:4)
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To: Daisyjane69

The people are pissed at the spending so Obama’s answer is....spend more. Talk about tone deaf.


11 posted on 08/05/2010 6:44:29 AM PDT by Personal Responsibility (The problem isn't that 1% of muslims are terrorists. The problem is 99% of terrorists are muslim)
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To: Daisyjane69

Great idea! Now we can go under with the entire country, secure in our own homes!! /sarc

Who hatched this current crop of buffoons, anyway?


12 posted on 08/05/2010 6:44:37 AM PDT by tgusa (Investment plan: blued steel, brass, lead, copper)
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To: Daisyjane69

After that he might as well declare himself President for life and become dictator. If he does this and makes an Executive Order for amnesty for illegals we are there.


13 posted on 08/05/2010 6:45:30 AM PDT by Anti-Bubba182
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To: GnuHere

dittos!


14 posted on 08/05/2010 6:46:12 AM PDT by OrioleFan (Republicans believe every day is the 4th of July, democrats believe every day is April 15)
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To: Daisyjane69

Social justice....up close and personal


15 posted on 08/05/2010 6:46:12 AM PDT by EmilyGeiger (Psalm 33:12 "Blessed is the nation whose God is the Lord,")
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To: Daisyjane69
The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP,

This vote buying nonsense started with the previous administration.

16 posted on 08/05/2010 6:46:53 AM PDT by Moonman62 (Politicians exist to break windows so they may spend other people's money to fix them.)
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To: Daisyjane69

The people making their payments every month already hate his guts so using their tax dollars to make them feel like fools isn’t going to lose him any votes.


17 posted on 08/05/2010 6:47:01 AM PDT by DManA
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To: DManA

Yes, he would have to pay off all mortgages and commercial loans. As no one would ever make another payment. Not many banks would be left standing. Inflation would be at least 20% per year. The people that would loose would be those with no debt and large savings.


18 posted on 08/05/2010 6:47:04 AM PDT by updatedscreenname
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To: Daisyjane69

Next will be a bill to compensate me for every stock I ever bought and sold at a loss. Right?


19 posted on 08/05/2010 6:47:27 AM PDT by posterchild (Endowed by my Creator with certain unalienable rights.)
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To: Daisyjane69

Rewarding failure & financial irresponsibility. Way to go, Mr. President. It’s stuff like this that keeps the economy bumping along the bottom rather than recovering.


20 posted on 08/05/2010 6:47:45 AM PDT by Tallguy ("The sh- t's chess, it ain't checkers!" -- Alonzo (Denzel Washington) in "Training Day")
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To: Daisyjane69

Boy, I feel foolish for paying off my mortgage now!


21 posted on 08/05/2010 6:47:46 AM PDT by griswold3 ('Regulation and law without enforcement is no law at all)
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To: Daisyjane69

I pay my bills

Where My cheese????


22 posted on 08/05/2010 6:48:58 AM PDT by silverleaf (Those who can make you believe absurdities can make you commit atrocities.)
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To: Anti-Bubba182
After that he might as well declare himself President for life and become dictator. If he does this and makes an Executive Order for amnesty for illegals we are there.

Then next thing you know, he will declare our Official Language is Swedish.

23 posted on 08/05/2010 6:49:06 AM PDT by dfwgator
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To: RobRoy

I have mixed emotions about this, as I am one of those people who are upside down on my mortgage. Not because I’m a slacker or anything like that.

I bought my property at or near the peak and have since lost my job as VP Sales of a small software company that has gone out of business. I’m still making my mortgage payment out of my savings account, have never missed a payment and don’t plan on missing a payment even if I have to cash in 401k plans, IRA’s, etc.

I have never taken government assistance on anything. But the idea of getting back above water on my mortgage is very attractive. And no ... it would not change my hatred of Obama and I will not vote for him. But I know for me, it would have a huge impact on my current financial situation.


24 posted on 08/05/2010 6:49:10 AM PDT by Free America52 (The White guys are getting pissed off. We beat Hitler Hirohito and Krushchev. Obama will be easy.)
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To: BelegStrongbow
While that sounds good, jobs have hemorrhaged in NC. For many it is too late, they have either lost their homes or will despite what Obama does. They can forgive the entire debt, many of this people are already in foreclosure and cannot put food on the table.
25 posted on 08/05/2010 6:49:19 AM PDT by OldGoatCPO
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To: silverleaf

It’s Not Cho Cheese Man!!!


26 posted on 08/05/2010 6:49:34 AM PDT by surfer (To err is human, to really foul things up takes a Democrat, don't expect the GOP to have the answer!)
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To: Free America52
I have mixed emotions about this, as I am one of those people who are upside down on my mortgage. Not because I’m a slacker or anything like that. I bought my property at or near the peak and have since lost my job as VP Sales of a small software company that has gone out of business. I’m still making my mortgage payment out of my savings account, have never missed a payment and don’t plan on missing a payment even if I have to cash in 401k plans, IRA’s, etc. I have never taken government assistance on anything. But the idea of getting back above water on my mortgage is very attractive. And no ... it would not change my hatred of Obama and I will not vote for him. But I know for me, it would have a huge impact on my current financial situation.

Ok...but still...why should I have to pay...for your choices.

27 posted on 08/05/2010 6:50:04 AM PDT by dfwgator
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To: Daisyjane69

28 posted on 08/05/2010 6:50:06 AM PDT by paulycy (Demand Constitutionality: Marxism is Evil.)
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To: updatedscreenname

Next he’s going to propose we change the country’s name to Zimbabwe West.


29 posted on 08/05/2010 6:50:06 AM PDT by DManA
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To: dirtboy
And this is EXACTLY why Fannie and Freddie were not included in the recent Financial ‘Reform’ legislation.

Exactly right... and as I recall they also shielded Fred and Fanny from congressional inquiry, making what they're trying to do easier to get away with.

30 posted on 08/05/2010 6:50:29 AM PDT by Track9 (Liberals are cruel hateful people who think they pass as respectable citizens.)
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To: Free America52

huge impact on my current financial situation.

Temporarily. Long term you would end up living in a tent in Obamaville.


31 posted on 08/05/2010 6:51:22 AM PDT by DManA
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To: Daisyjane69
Maybe this means my landlord will be reducing my monthly rent.

</DREAM ON>

32 posted on 08/05/2010 6:51:46 AM PDT by savedbygrace (Rev 22:20 He which testifieth these things saith, Surely I come quickly. Amen. Even so, come, Lord)
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To: Daisyjane69

Being underwater mostly doesn’t come from being a deadbeat, contrary to the posters who are implying that. Mostly it comes from living in a Blue state, buying overpriced property during the bubble or refinancing during the bubble, then watching the value get cut in half or in third. It is still irresponsible behavior and should not be bailed out.


33 posted on 08/05/2010 6:52:08 AM PDT by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
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To: Daisyjane69

My one question is: On one hand we have trillions of dollars of debt but only so many assets. The debt keeps growing but the assets do not. There MUST be a breaking point somewhere, sometime.The Feds are making $’s out of nothing. The buck has to stop


34 posted on 08/05/2010 6:52:50 AM PDT by BornToBeAmerican (Give me a hand up, not a hand out)
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To: dfwgator

“Ok...but still...why should I have to pay...for your choices. “

You shouldn’t, that’s where my mixed emotions come in. I am a true conservative and feel the same way you do.


35 posted on 08/05/2010 6:52:55 AM PDT by Free America52 (The White guys are getting pissed off. We beat Hitler Hirohito and Krushchev. Obama will be easy.)
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To: TexasCajun

Seems being a responsible citizen is for suckers like me!

I hear ya, loud and clear.

I read this as only forgiving the underwater portion of the mortgages, which is BS. We live in a nation where people are never held responsible for their actions.

We have been good and not spent like drunk sailors, saved for the girls college educations , our retirement and no credit card debt. Yet our neighbors rack up 60k in credit cards, to have half of it erased, took out second mortgages to put in pools and take vacations. I have to admit, I am a bit green with envy, we want a pool and sunroom so we can enjoy the summers by our pool. But no, we have to watch folks who break the rules get the rewards.


36 posted on 08/05/2010 6:52:55 AM PDT by Cyclone59 (Don't blame me, I voted for the hot chick and the old guy!)
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To: Personal Responsibility

anyone who takes a free cheese mortgage buydown- is rendered powerless to protest govt overspending

clever, eh? The more people you make part of the problem, the less people you have who can resist or protest the problem


37 posted on 08/05/2010 6:53:31 AM PDT by silverleaf (Those who can make you believe absurdities can make you commit atrocities.)
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To: Aria

...that’s exactly what i was thinking....


38 posted on 08/05/2010 6:54:01 AM PDT by devane617 (VOTE THEM OUT! ALL OF THEM!)
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To: palmer

Well said.

Also, who get’s the ‘title’ of the forgiven mortgage? I’m betting OhBummer wants title to every residence and every pice of property privatly owned


39 posted on 08/05/2010 6:55:03 AM PDT by BornToBeAmerican (Give me a hand up, not a hand out)
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To: Free America52
I bought my property at or near the peak and have since lost my job as VP Sales of a small software company that has gone out of business. I'm still making my mortgage payment out of my savings account,

Your are diligent and responsible contrary to my blanket assertion above.

40 posted on 08/05/2010 6:55:13 AM PDT by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
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To: Daisyjane69

Hy Mod,

Thanks, that was cool.

I don’t know how to do “colors” on a post!

:)


41 posted on 08/05/2010 6:55:26 AM PDT by Daisyjane69 (Michael Reagan: "Welcome back, Dad, even if you're wearing a dress and bearing children this time)
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To: Free America52

If the obamites get the middle class like you by the wallet, your bodies and minds will follow

that would be the goal of this program


42 posted on 08/05/2010 6:55:56 AM PDT by silverleaf (Those who can make you believe absurdities can make you commit atrocities.)
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To: silverleaf

Same reason to require EVERY “government approved” insurance policy to spend at least $1 on abortion.


43 posted on 08/05/2010 6:56:10 AM PDT by MrB (The difference between a (de)humanist and a Satanist is that the latter knows who he's working for.)
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To: BornToBeAmerican

It’s ObamaMoney.


44 posted on 08/05/2010 6:56:18 AM PDT by Eric in the Ozarks (Impeachment !)
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To: dfwgator

I would be surprised if he goes this far. This is way beyond the usual demagoguery.


45 posted on 08/05/2010 6:57:07 AM PDT by Anti-Bubba182
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To: Daisyjane69

This will go well with 99 weeks of unemployment checks.


46 posted on 08/05/2010 6:57:25 AM PDT by umgud (Obama is a failed experiment.)
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To: Moonman62

Are you utterly unaware of American history?


47 posted on 08/05/2010 6:57:27 AM PDT by arrogantsob
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To: savedbygrace

I’m confused....is this for ALL mortgages or certain mortgages processed by certain companies?


48 posted on 08/05/2010 6:57:57 AM PDT by Blue Turtle
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To: Free America52
When the military transferred me to the South, I ended up with a house in Illinois I cannot sell. Problem is my wife and I were careful and only refinanced the amount needed to clear all of our other debts. Because we were so careful, and despite almost a 33% drop in value, we are not underwater.....yet. But, we are very close to a short sale because of the age of the house I cannot get close to what we owe, but the property is still valued about 40K above my mortgage. I will not qualify for assistance, but I am one family emergency away from foreclosure. I am part of that feared next wave of foreclosures, so this stop gap measure will not have the impact Bambi thinks it will. He waited too long to do this, and it will mean nearly a $ trillion added to the debt.
49 posted on 08/05/2010 6:58:08 AM PDT by OldGoatCPO
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To: Daisyjane69

Let’s keep in mind that many of these people are underwater because they treated their homes like piggy banks, and mortgaged it to the hilt in order to pay for family trips to Disneyland, jet skis, boats, breast implants, high tech stereos and everything else you can name.

Their homes are underwater because they likely didn’t bother with upgrading their windows and doors, insulation, heating and air conditioning systems, hot water tanks, and other infrastructure. The house itself is probably not up to current code, and probably needs significant and very expensive repairs before it could ever be worth anything near what is mortgaged against it.

This is exactly what I feared we would get to when the sub-prime crisis first hit: cash grants to individuals directly out of the Federal coffers to bail them out from their own financial irresponsibility. I asked then how this could occur under the US Constitution, and in short, it is blatantly unconstitutional to do this, and will lead to nothing good.

I hear lots of excited chatter about what may happen in the November elections, but the dangerous truth is that there is plenty that a vindictive and defeated Democrat Party can and will do to all of us out here in fly-over country.

Stout hearts...


50 posted on 08/05/2010 6:58:18 AM PDT by Bean Counter (Now what kind of a geroo are you anyway?)
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