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Momentum Gathers For A New, Massive Bailout Of Homeowners
The Business Insider ^ | 9-19-2010 | Joe Weisenthal

Posted on 09/19/2010 8:02:18 AM PDT by blam

Momentum Gathers For A New, Massive Bailout Of Homeowners

Joe Weisenthal
Sep. 19, 2010, 8:48 AM

A new federal program that would be tasked with a massive refinancing of mortgages for strapped Americans has been chattered about for awhile, though The White House has never indicated that the idea is on the table.

But the calls are growing louder. This time it's from the NYT op-ed page, where former Bush advisor (and now Columbia business prof) Glenn Hubbard along with Columbia's Chris Mayer are calling for exactly that -- a massive new agency to bail out underwater homeowners via refinancing.

You can read the op-ed for details -- Hubbard and Mayer anticipate $50 billion in annual savings for homeowners -- though the one thing that's not there is principal reduction. So underwater homeowners under their plan -- though receiving lower interest rates -- would still be underwater.

That being said, at least they'd be able to refinance, which they can't easily do right now, so that would help.

Anyway, nothing like this is going to happen soon, but Obama needs to pull off something like this to start gaining momentum for 2012, and our guess is that this won't require any Congressional approval, because it could be done through the GSEs, with plenty of funding from Treasury and the Fed.

[snip]

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: housing; recession; refinance; underwater
Why would anyone want to refinance a house that isn't worth what is owed...especially these days when it is actually cool to walk away from your mortgage.

You watch, Obama's program will use tax money to buy down the principal of low-income people. ("Everyone deserves the right to have a home")

1 posted on 09/19/2010 8:02:24 AM PDT by blam
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To: blam

“Momentun”? lulz.

More like more of idiots and idiocy...... =.=


2 posted on 09/19/2010 8:03:24 AM PDT by cranked
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To: blam

However, the fine print is this...You are re-financing with The First last Bank of BOZ...so when the time comes for Universal Housing, they can throw you out and give your dwelling to the Party Faithful, while you go live in a one-room cell in a converted “Correctional Institution”


3 posted on 09/19/2010 8:06:29 AM PDT by Shady (We will NOT capitulate to the Caliphate.)
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To: blam

However, the fine print is this...You are re-financing with The First Last Bank of BOZ...so when the time comes for Universal Housing, they can throw you out and give your dwelling to the Party Faithful, while you go live in a one-room cell in a converted “Correctional Institution”


4 posted on 09/19/2010 8:06:55 AM PDT by Shady (We will NOT capitulate to the Caliphate.)
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To: cranked
Momentum?

Looks like a bunch of spoiled brats pushing and shoving as they line up for their kool-aide!

5 posted on 09/19/2010 8:07:49 AM PDT by Kartographer (".. we mutually pledge to each other our lives, our fortunes, and our sacred honor.")
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To: blam

I lost 170K in equity. Lost my 20% down payment. And I am still paying for this POS house. They bail them out, and I will still have to pay plus the 10k a year in taxes. I have the means to pay!! They do this, and I will walk away. I bet a lot of people in my situation will do the same.


6 posted on 09/19/2010 8:09:06 AM PDT by lookout88 (.combat officer's dad,)
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To: lookout88
I don't happen to owe anything on my property. Why should I pay for some of this?
7 posted on 09/19/2010 8:14:56 AM PDT by oldbrowser (Barack the Bungler must step down.)
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To: blam

If you have a mortgage, your not a ‘homeowner’.


8 posted on 09/19/2010 8:16:19 AM PDT by Palter (If voting made any difference they wouldn't let us do it. ~ Mark Twain)
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To: blam

“You watch, Obama’s program will use tax money to buy down the principal of low-income people. (”Everyone deserves the right to have a home”)”

...absolutely!!! and as we all know, the “right” to own a home was what got us into this mess to begin with...and BTW, the reason some homes are underwater is because property values have been run down by riff raff moving in the neighborhood....time was, people like that NEVER would have gotten a loan.


9 posted on 09/19/2010 8:16:24 AM PDT by STONEWALLS
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To: blam

Problem. There is no tax money. It is all already spent and then some. They are spending a Trillion Dollars a year more than they get. Amazing.


10 posted on 09/19/2010 8:17:10 AM PDT by screaminsunshine (counter revolutionary)
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To: cranked

Well lets hope they do the refinancing soon, while people are still working. This would of been a great idea about 3 years ago.
http://www.dailyjobcuts.com


11 posted on 09/19/2010 8:19:55 AM PDT by Zeroman
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To: Palter
If you have a mortgage, your not a ‘homeowner’.

And if you don't have a mortgage your still not a homeowner. Don't pay the property taxes and see who "owns" that home.

12 posted on 09/19/2010 8:24:49 AM PDT by unixfox (Abolish Slavery, Repeal The 16th Amendment!)
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To: screaminsunshine
"Problem. There is no tax money. It is all already spent and then some. They are spending a Trillion Dollars a year more than they get. Amazing."

Yup.

We're $12.3 Trillion Poorer Than We Were Three Years Ago

13 posted on 09/19/2010 8:25:46 AM PDT by blam
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To: blam

Any time you see a newspaper reporting that an inanimate object is taking action, it's time to haul out the Crap Detector. Momentum does not "gather." Calls do not "grow." Momentum only increases when an outside force — such as a reporter with an agenda — is applied. In newspaper parlance, calls "grow" when reporters collude on mailing lists like Journolist to write articles and columns selling the same line. Then they all quote each other and pretend that something spontaneous has happened, with the "calls" growing all by themselves.

This article is one more reason not to trust Business Insider. These kinds of journalistic tricks are indicative of Leftists At Work.


14 posted on 09/19/2010 8:26:53 AM PDT by Nick Danger (Pin the fail on the donkey)
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To: oldbrowser
I don't happen to owe anything on my property. Why should I pay for some of this?

To own your property outright proves you are an evil capitalist oppressor of the proletariat. Your property will be confiscated and distributed to the proles.

15 posted on 09/19/2010 8:30:06 AM PDT by ProtectOurFreedom
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To: oldbrowser
I don't happen to owe anything on my property. Why should I pay for some of this?

My mortgage is paid off, too.

This would be a massive transfer of wealth from the financially responsible to the financially irresponsible.

Yes, I know: this is nothing new -- just the methodology is different.

16 posted on 09/19/2010 8:32:02 AM PDT by justlurking (The only remedy for a bad guy with a gun is a good WOMAN (Sgt. Kimberly Munley) with a gun)
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To: cranked
Perhaps our government should pay back our foreign debt in government owned foreclosed homes!(Like they paid country doctors chickens during the last big depression.) ;-)
17 posted on 09/19/2010 8:34:21 AM PDT by Average Al
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To: oldbrowser

My sentiments exactly.


18 posted on 09/19/2010 8:34:44 AM PDT by brktxpyr
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To: oldbrowser
I don't happen to owe anything on my property. Why should I pay for some of this?

Yes, I worked and paid mine off years ago. Surely there is some way we can get in on this "giveaway" too. Refinance, don't pay and then cry?

19 posted on 09/19/2010 8:35:15 AM PDT by Hattie
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To: blam
Yeah..that way the Feds will buy you out...and relocate you when you can't pay THAT overvalued mortgage.

This is simply a way of harvesting all those poorly documented securitized mortgages the courts are throwing out...essentially “giving” the house to its owners.

20 posted on 09/19/2010 8:37:17 AM PDT by mo
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To: Palter
If you own your home outright...you got a “ground zero bulls eye” for predatory bureaucrats on you...
21 posted on 09/19/2010 8:38:57 AM PDT by mo
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To: blam

No principle reduction?

So who in their right mind would refinance a $150K loan on a property worth $90K?

Oh wait- THE GOVT!


22 posted on 09/19/2010 8:41:31 AM PDT by silverleaf (The lesser of two evils is still evil.)
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To: blam
Let me get this straight: The problem is that housing prices were vastly inflated by granting mortgages to people who were unlikely to pay them back, and the solution is to further inflate the prices by subsidizing the mortgages of those very people?.

The only "sustainable" solution is to allow housing prices to fall to realistic levels, but we can't let the market do something that the federal government can screw up some more.

23 posted on 09/19/2010 8:47:48 AM PDT by E. Pluribus Unum ("The only stable state is one in which all men are equal before the law." -- Aristotle)
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To: blam
I have a lasting solution.

Let the government buy me a house and put the deed in my name.

Since I'll have no mortgage, the government won't ever have to worry about me defaulting on my mortgage.

I'll never again be a default risk to the banks or to government.

24 posted on 09/19/2010 8:57:58 AM PDT by NoControllingLegalAuthority (What this country needs is an enema.)
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To: oldbrowser

Same here.

Why should you pay?

Because you’re as schmuck that’s why, as are all financially responsible people in this country.

Galt’s Gulch is going to be mighty crowded.


25 posted on 09/19/2010 9:05:38 AM PDT by Lorianne (During times of universal deceit, telling the truth becomes a revolutionary act. ___ George Orwell)
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To: blam

I’m to the point where I say DO IT.
Crash this economy in one big supernova.

I’m tired of this piecemeal crashing.


26 posted on 09/19/2010 9:07:27 AM PDT by Lorianne (During times of universal deceit, telling the truth becomes a revolutionary act. ___ George Orwell)
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To: blam
"...where former Bush advisor (and now Columbia business prof) Glenn Hubbard..."

Why is it that everything is "Bush's Fault" and yet when they want some pundit to have credibility they point out the "former advisor to Bush" crap?

The left just makes no sense on any level.

27 posted on 09/19/2010 9:08:21 AM PDT by Thom Pain (2 + 2 = 4 : Defending the Constitution is CENTRIST; not RIGHT WING! Don't be labeled!)
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To: oldbrowser

You owe property taxes every year. Guess who owns it if you don’t or can’t pay? Property ownership went away when the government began taxing it into perpetuity.


28 posted on 09/19/2010 9:24:07 AM PDT by snippy_about_it (Looking for our Sam Adams)
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To: oldbrowser
I don't happen to owe anything on my property. Why should I pay for some of this?

I own my acerage and home free and clear. I agree with you.

You and I did this the "right" way. Why should we have to pay to help some losers who were fools and bought more house than they could afford? Actions have consequences.

29 posted on 09/19/2010 9:24:59 AM PDT by upchuck (If we let the federal gvmnt live beyond its means, we will soon have to live below ours. ~Joe Miller)
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To: mo

“This is simply a way of harvesting all those poorly documented securitized mortgages the courts are throwing out...essentially “giving” the house to its owners.”

Roger that.


30 posted on 09/19/2010 9:57:45 AM PDT by Razzz42
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To: blam
...our guess is that this won't require any Congressional approval

Guess again.

31 posted on 09/19/2010 10:07:50 AM PDT by mojito
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To: Palter

“If you have a mortgage, your not a ‘homeowner’.”

Even if you do not have a mortgage, if you pay Land Rents, known as Property Taxes, you are not an owner, either. You simply bought the rights to rent the land. You do not own anything where you must continue to pay someone.


32 posted on 09/19/2010 12:36:36 PM PDT by CodeToad (Islam needs to be banned in the US and treated as a criminal enterprise.)
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