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U.S. May Back Refinance Plan for Mortgages (Insanity)
ny times ^ | 8/24/2011 | SHAILA DEWAN and LOUISE STORY

Posted on 08/24/2011 7:56:09 PM PDT by tobyhill

The Obama administration is considering further actions to strengthen the housing market, but the bar is high: plans must help a broad swath of homeowners, stimulate the economy and cost next to nothing.

One proposal would allow millions of homeowners with government-backed mortgages to refinance them at today’s lower interest rates, about 4 percent, according to two people briefed on the administration’s discussions who asked not to be identified because they were not allowed to talk about the information.

A wave of refinancing could be a strong stimulus to the economy, because it would lower consumers’ mortgage bills right away and allow them to spend elsewhere. But such a sweeping change could face opposition from the regulator who oversees Fannie Mae and Freddie Mac, and from investors in government-backed mortgage bonds.

Administration officials said on Wednesday that they were weighing a range of proposals, including changes to its previous refinancing programs to increase the number of homeowners taking part. They are also working on a home rental program that would try to shore up housing prices by preventing hundreds of thousands of foreclosed homes from flooding the market. That program is further along — the administration requested ideas for execution from the private sector earlier this month.

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


TOPICS: Extended News; Front Page News; News/Current Events
KEYWORDS: bohica
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1 posted on 08/24/2011 7:56:11 PM PDT by tobyhill
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To: tobyhill
Through Fanny and Freddie - the gov’t already OWNS a vast swath of America homes - it intends to own every single one it can get it's claws into...

and do you think that those homes will EVER be back on the market for citizens to buy from private mortgage companies?

See my tag line. and Remember what Reagan said about the scariest words - “Hi, I'm from the government and I'm here to help you.”

2 posted on 08/24/2011 8:00:44 PM PDT by maine-iac7 (ALWAYS WATCH THE OTHER HAND)
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To: tobyhill

The only constrant refrain I find in this four years of hell is “Where’s the Congress”. They may not know history but their throats are on the line as much as anyone’s.


3 posted on 08/24/2011 8:03:20 PM PDT by TwoSwords (The Lord is a man of war, Exodus 15:3)
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To: tobyhill
It was a very slippery slope to let the govt take over 90% of the home mortgage market. Now the last thing that seems to be considered are the basics of financing..the value of the property and the ability of the borrower to repay. We will just dig ourselves a deeper hole. We need the lending decisions to be made freely by a market based banks in diverse markets. Not by a few big banks and one govt.
4 posted on 08/24/2011 8:05:05 PM PDT by Oldexpat
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To: tobyhill
It was a very slippery slope to let the govt take over 90% of the home mortgage market. Now the last thing that seems to be considered are the basics of financing..the value of the property and the ability of the borrower to repay. We will just dig ourselves a deeper hole. We need the lending decisions to be made freely by a market based banks in diverse markets. Not by a few big banks and one govt.
5 posted on 08/24/2011 8:05:14 PM PDT by Oldexpat
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


6 posted on 08/24/2011 8:09:30 PM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: tobyhill
"A wave of refinancing could be a strong stimulus to the economy"

This will FURTHER destroy the economy, as this Reparations Plan (it's all about those non-qualified "buyers" who got loans by Government FORCING banks to loan to welfare queens, and they've NEVER paid their mortgages) and the Taxpayers are again gonna be on the hook for OTHER PEOPLE'S MORTGAGES. (See tagline).

7 posted on 08/24/2011 8:11:23 PM PDT by traditional1 ("Don't gotsta worry 'bout no mo'gage, don't gotsta worry 'bout no gas; Obama gonna take care o' me!)
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To: tobyhill

This is being done to shore the banks as well.

Worst part is a great number of these homes will never be occupied again and will deteriorate to the point of being needed to be torn down.

And the taxpayer will get stuck with the bill.


8 posted on 08/24/2011 8:14:38 PM PDT by Free Vulcan (Obama/Biden '12: No hope and chump change.)
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To: tobyhill

Flippin Wells-Fargo sold my note to Fannie....

looks like I’ll be takin advantage of gubment stuff.

movin on up....


9 posted on 08/24/2011 8:15:31 PM PDT by stylin19a (obama..."Fredo-Smart")
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To: tobyhill

Woo hoo!! Free money!! Free lunch!! Free beer for all!! Vote here.


10 posted on 08/24/2011 8:16:08 PM PDT by Jim Robinson (Rebellion is brewing!! Impeach the corrupt Marxist bastard!!)
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To: stylin19a

Not to worry. The “rich” will pay for it.


11 posted on 08/24/2011 8:18:16 PM PDT by Jim Robinson (Rebellion is brewing!! Impeach the corrupt Marxist bastard!!)
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To: Free Vulcan
Until the Gubermint lets the market correct itself without interference then we will continue to see our economy suffer.
12 posted on 08/24/2011 8:18:54 PM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: tobyhill

So to qualify, just skip a payment or two. Maybe the govt will then give you a discount on what you owe too. I am hoping for that. I’ll skip a payment or two - and hope they refinance my home at a lower rate for less than I currently owe. Thanks Obamba for the 8K to buy, this just keeps getting better. I got 4 gm cars in the past 48 months, two in the past year for nearly 1/2 price - Govt Motors is hope and change. My 28K 24-month old car only lost $1200 for the final trade in - jeez, the used ones cost more than the new ones! Maybe having cash helps.


13 posted on 08/24/2011 8:20:34 PM PDT by Jumper
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To: tobyhill

So to qualify, just skip a payment or two. Maybe the govt will then give you a discount on what you owe too. I am hoping for that. I’ll skip a payment or two - and hope they refinance my home at a lower rate for less than I currently owe. Thanks Obamba for the 8K to buy, this just keeps getting better. I got 4 gm cars in the past 48 months, two in the past year for nearly 1/2 price - Govt Motors is hope and change. My 28K miles 24-month old car only lost $1200 for the final trade in - jeez, the used ones cost more than the new ones! Maybe having cash helps.


14 posted on 08/24/2011 8:20:55 PM PDT by Jumper
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To: tobyhill

So to qualify, just skip a payment or two. Maybe the govt will then give you a discount on what you owe too. I am hoping for that. I’ll skip a payment or two - and hope they refinance my home at a lower rate for less than I currently owe. Thanks Obamba for the 8K to buy, this just keeps getting better. I got 4 gm cars in the past 48 months, two in the past year for nearly 1/2 price - Govt Motors is hope and change. My 28K miles 24-month old car only lost $1200 for the final trade in - jeez, the used ones cost more than the new ones! Maybe having cash helps.


15 posted on 08/24/2011 8:21:08 PM PDT by Jumper
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To: stylin19a

Mine was sold to USBank. I guess I’m on “the hook”. Sheesh


16 posted on 08/24/2011 8:22:08 PM PDT by eyedigress ((Old storm chaser from the west)?)
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To: Free Vulcan

You’re probaby right; I don’t see any benefit to the government using worthless paper dollars to buy worthless homes.


17 posted on 08/24/2011 8:24:16 PM PDT by kearnyirish2
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To: tobyhill
UPDATER: Chrissie Dudd left congress in 2010 in order to devote full time to his search for those elusive Countrywide mortgage documents. We're certain, however, that Bawney Fwank is fully up to the job.
Photobucket


18 posted on 08/24/2011 8:24:42 PM PDT by Dick Bachert (The 2012 election is coming. Seems we have MORE TRASH TO REMOVE!)
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To: traditional1

Congress should quit protecting the credit card operators in Joe Biden’s Delaware by allowing them high interest rates. It’s time for something like a 5% cap ~ gives them a nearly 3% spread above the Tbill rates.


19 posted on 08/24/2011 8:25:20 PM PDT by muawiyah
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To: traditional1

Congress should quit protecting the credit card operators in Joe Biden’s Delaware by allowing them high interest rates. It’s time for something like a 5% cap ~ gives them a nearly 3% spread above the Tbill rates.


20 posted on 08/24/2011 8:25:31 PM PDT by muawiyah
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To: muawiyah

Deadbeats that don’t pay their Credit Card off in full every monty should be charged hugh interest amounts!

If you haven’t the cash in the bank to cover the charge you have no business using a Credit Card!


21 posted on 08/24/2011 8:31:58 PM PDT by dalereed (uity wise!)
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To: tobyhill

Why not have the people living in the houses pay for them or leave. I know this is a novel idea, way beyond what any progressive could imagine, but it seems workable and would cost the government nothing.


22 posted on 08/24/2011 8:34:59 PM PDT by RetiredTexasVet (There's a pill for just about everything ... except stupid!)
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To: tobyhill

This is always the electoral advantage that the Democrats have: Starting out as the Free S**t For Everyone party gives them a very large base of supporters from the very first. It’s hard fighting the Free S**t For Everyone Party.

Obama will spend trillions to try to buy the election. That’s the danger.


23 posted on 08/24/2011 8:35:24 PM PDT by denydenydeny (The moment you step into a world of facts, you step into a world of limits. --Chesterton)
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To: stylin19a

Are you one of “Holder’s” people? You’re not? I’m sorry, we can’t help you.


24 posted on 08/24/2011 8:38:57 PM PDT by listenhillary (Look your representatives in the eye and ask if they intend to pay off the debt. They will look away)
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To: tobyhill

Moral of the story: It’s time for those who have played by the rules to stop playing by them. The livelihood of these scum depends on enough people being “law abiding” while the scum milk them to exhaustion. Note to libs: It’s not “hate” or “racism” you’re seeing out there, it’s righteous anger. And woe to those who keep “poking the bear”.


25 posted on 08/24/2011 8:45:35 PM PDT by Tench_Coxe
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To: tobyhill; All
Well, I caught one of the guys on the radio who was working on this behind the scenes.

Here is his plan, in the WSJ, and a interview on NPR[mp3]

26 posted on 08/24/2011 8:48:04 PM PDT by Palter (Celebrate diversity .22, .223, .25, 9mm, .32 .357, 10mm, .44, .45, .500)
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To: muawiyah

That’s ridiculous, actually. While 19% is a bit much, capping at 5% for UNSECURED debt would put many of them out of business.


27 posted on 08/24/2011 8:50:36 PM PDT by RockinRight (The ObamAA+ Downgrade)
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To: tobyhill

We’re b-b-b-broke and this does not make jobs. Discriminates against people that didn’t use government loans.


28 posted on 08/24/2011 8:54:39 PM PDT by Mike Darancette (O-blame-r)
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To: tobyhill

Keep digging hole.


29 posted on 08/24/2011 9:01:51 PM PDT by jennychase
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To: tobyhill
If the refinancing program were targeted at those not delinquent on their loans, but who are presently barred from refinancing because their homes are more than 125% underwater, I don't see how we could could loose on this. It would be a win/win. Remember, these are homeowners who are current, if they can afford a higher than market rate mortgage, there is little risk of their defaulting when the government guarantees a loan at a lower rate. The lower mortgage payment would mean (1) more tax revenue because there is less interest paid to deduct, (2) more spendable/savable income in the hands of the homeowner, and (3) if the loan is already insured by the government, a greater probability that it will not go into default later.
30 posted on 08/24/2011 9:14:38 PM PDT by PUGACHEV
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To: tobyhill

Well, the market is full of upside down homes, you can’t refinance unless you come up with the difference in most cases.

The renting the foreclosed homes is just going to be a disaster, the renters will trash the homes, the market for rentals will tank creating a ton of new foreclosures, and eventually these houses have to hit the market ... they are only postponing the bottom of the market.

They should just get it over with.

Maybe people with cash will by more than one house and tear them down to get their scrap value. That is better than nothing.

I actually was thinking some of the houses in Baltimore or Detroit may have some good scrap property myself. I have to do something with these worthless dollars.


31 posted on 08/24/2011 9:17:52 PM PDT by dila813
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To: Oldexpat

The biggest theft in the history of man isn’t over...


32 posted on 08/24/2011 9:18:18 PM PDT by wastoute (Government cannot redistribute wealth. Government can only redistribute poverty.)
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To: Palter

If that is the plan, then a lot of people will be duped into refinancing once and not being able to refinance again.

It is foolhardy to refinance in such a fashion.

If the rates ever drop below what they are now or the borrower(s) with poor credit improves their situation (borrowers with worse credit would see higher rates than those with good credit), then they miss out on that opportunity.

The article you linked states the plan then was to get Fannie and Freddie backed mortgages (90% of all mortgages) refinanced at the low rate of 5.25 (at the time the article was written 5.25% was historically low). If all of those people refinanced then, they wouldn’t be able to take advantage of the low 4 and high 3% loans available now.

Pretty sneaky!


33 posted on 08/24/2011 9:24:26 PM PDT by jurroppi1
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To: stylin19a
Flippin Wells-Fargo sold my note to Fannie....

Same here!!

34 posted on 08/24/2011 9:41:25 PM PDT by alley cat
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To: stylin19a

You’re kidding right? Wells Fargo didn’t sell your note to Fannie. Pretty much the only loans that are getting done right now are by Fannie and Freddie. Your note didn’t get sold.. the note was done by Fannie and WF got a commission for doing it, and by the way that’s your 1% fee your paying.


35 posted on 08/24/2011 9:53:13 PM PDT by Almondjoy
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To: listenhillary

Are you one of “Holder’s” people? You’re not? I’m sorry, we can’t help you.


You are correct.

Same with Death Care.


36 posted on 08/24/2011 9:58:08 PM PDT by unkus (Silence Is Consent)
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To: wastoute
Atlas is about to SHRUG.

BIG TIME.

37 posted on 08/24/2011 10:06:10 PM PDT by AmericanInTokyo (De-RINOFICATION of the GOP leadership is Job Number ONE. Let's GIT 'ER DONE!!)
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To: AmericanInTokyo

I suspect so as well. Tokyo may be a good place to be soon...


38 posted on 08/24/2011 10:11:19 PM PDT by wastoute (Government cannot redistribute wealth. Government can only redistribute poverty.)
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To: AmericanInTokyo

...funny, it occurs to me now Galt’s Gulch seemed such a romantic place. Now it is on the horizon it may look a lot more like tryin’ to stay alive in a burned out basement, more like a scene from the Termintor, if you know what I mean.


39 posted on 08/24/2011 10:14:08 PM PDT by wastoute (Government cannot redistribute wealth. Government can only redistribute poverty.)
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To: wastoute
Take it to the bank. In the remote chance that the Kenyan Mr. Obama is not reelected, there will be massive racial riots in the United States. I already have named these in advance as "The Great Entitlement Riots of 2012".

It will be touched off by the dispondent liberal US Mass Media which will fan the embers from coast to coast, facilitated by Twitter/Facebook and other SNS and flash mob phenomenon, following a very racially-tinged re-election camp due primarily to Obama's victimization narrative, and then let to burn out of control in the media's effort to sell ink and bring about ruin and destruction based on sheer spite.

40 posted on 08/24/2011 11:22:12 PM PDT by AmericanInTokyo (De-RINOFICATION of the GOP leadership is Job Number ONE. Let's GIT 'ER DONE!!)
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To: tobyhill
The place you should study isn’t the bust. It’s the boom that should make you feel leery, that’s the thrust of my theory, the capital structure is key. Malinvestments wreck the economy

The boom gets started with an expansion of credit, the Fed sets rates low, are you starting to get it? That new money is confused for real loanable funds. But it’s just inflation that’s driving the ones, who invest in new projects like housing construction, the boom plants the seeds for its future destruction. The savings aren’t real, consumption’s up too, and the grasping for resources reveals there’s too few.

So the boom turns to bust as the interest rates rise. With the costs of production, price signals were lies. The boom was a binge, that’s a matter of fact. Now its devalued capital that makes up the slack.

Whether it’s the late twenties or two thousand and five, booming bad investments, seems like they’d thrive. You must save to invest, don’t use the printing press, or a bust will surely follow, an economy depressed.

Your so-called “stimulus” will make things even worse. It’s just more of the same, more incentives perversed. And that credit crunch ain’t a liquidity trap, just a broke banking system, I'm done, that's a wrap.

-Fear the boom and bust

41 posted on 08/24/2011 11:32:58 PM PDT by 10thAmendmentGuy ("[Drug] crusaders cannot accept the fact that they are not God." -Thomas Sowell)
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To: tobyhill
You see slack in some sectors as a general glut, but some sectors are healthy, only some are in a rut. So spending’s not free, that’s the heart of the matter. Too much is wasted as cronies get fatter. The economy’s not a car. There’s no engine to stall. No expert can fix it. There’s no “it” at all. The economy is us. We don’t need a mechanic. Put away the wrenches, the economy is organic.

I don’t wanna do nothing, there’s plenty to do. The question I ponder is who plans for whom. Do I plan for myself or leave it to you? I want plans by the many, not by the few. Let’s not repeat what created our troubles. I want real growth not a series of bubbles. Stop bailing out losers, let prices work. If we don’t try to steer them they won’t go berserk.

Oversight? The government’s long been in bed, with those Wall Street execs and the firms that they’ve bled. Capitalism is about profit and loss. You bail out the losers there is no end to the cost. The lesson I’ve learned is how little we know. The world is complex, not some circular flow. The economy is not a class you master in college, to think otherwise is the pretense of knowledge.

People aren’t chess men you move on a board at your whim, their dreams and desires ignored. With political incentives, discretion’s a joke. Those dials are twisting; just mirrors and smoke. We need stable rules and real market prices, so prosperity emerges and cuts short the crisis. Give us a chance, so we can discover, the most valuable ways to serve one another.

-Fight of the Century: Keynes vs. Hayek

I think both are appropriate. We need to stop bailing out the losers, whether that is Wall Street banks or homeowners. Let the foreclosures happen and let the housing prices fall to their natural level.

42 posted on 08/24/2011 11:39:15 PM PDT by 10thAmendmentGuy ("[Drug] crusaders cannot accept the fact that they are not God." -Thomas Sowell)
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To: maine-iac7

Why not? The govt already owns the entire student loan market.

What’s the worst that could happen?


43 posted on 08/25/2011 2:45:32 AM PDT by Carbonsteel
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To: tobyhill

Once again, this will only benefit the mortgage holder, or banks. Refinancing for another thirty years if you are ten into a mortgage means, in the end, the holder will end up with more interest earning than the original note.


44 posted on 08/25/2011 3:07:24 AM PDT by raybbr (People who still support Obama are either a Marxist or a moron.)
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To: stylin19a
Find a local CU that holds it's own paper, but they are unwilling to go greater than 15 yrs......

Thats what I will do to thumb my nose @ Fannie, Freddie, Bawanee and Barry.....

45 posted on 08/25/2011 3:29:49 AM PDT by taildragger (( Palin / Mulally 2012 ))
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To: dila813
My guess is that the Gubermint will refinance upside-down notes.

I guarantee the Government will pay the banks the amount the owner financed then refinance at the lower rate and the taxpayers will be left holding the difference.

The bank's market shares went up on the news because they heard that they won't be the ones holding the bag, the taxpayer's will.

46 posted on 08/25/2011 3:41:05 AM PDT by tobyhill (Real Spending Cuts Don't Require Increasing The Debt)
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To: Almondjoy

I had been with WF for almost 16 years. I re-fi’d down the number of years and a lower rate about 2 years ago.
I just looked at the Notifcation of Assignment. My note was sold to Freddie Mac ( Sorry...I thought is was Fannie)


47 posted on 08/25/2011 5:03:49 AM PDT by stylin19a (obama..."Fredo-Smart")
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To: tobyhill
If they do it for one they better do it for all. Why should the dumb Sh*ts get a reprieve. Make it 4% across the line for anyone who wants it.
48 posted on 08/25/2011 6:26:16 AM PDT by jetson
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To: tobyhill

Go to any village in England and you will see America within the next 10 years.

Most English don’t own their own homes. They lease them from the city councils and they call them “Council Homes.”

Here in the US we have basically the same system being set up. We call them Section 8 housing and public housing.

Eventually, the government will own most of the homes that they fraudulently mortgaged to a whole host of Democrat voters who could not qualify for a mortgage even if they robbed a bank. Now, under the master plan, these homes will become COUNCIL HOMES just like the ones they now manage under the name of the Housing Authority.

The plan is to DESTROY home valuation to the point that a majority of hard working, tax paying citizens will be so far “under water” in their mortgages that they too, will eventually have to walk away from their loans...only for those homes to be added to the Housing Authority’s list of assets...and control of the proles. (Have to read George Orwell to understand.)


49 posted on 08/25/2011 7:22:57 AM PDT by DH ( Rick Perry 2012...Be proud to be an American once again!)
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To: tobyhill

Based on the criteria that the banks are using for conforming loans, they want all the notes to be less than the property is worth.

Otherwise you can’t get the 4%.

The only thing this would help you get out of is PMI.


50 posted on 08/25/2011 7:27:03 AM PDT by dila813
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