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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
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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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