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 ...
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!
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.
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.
Are you one of “Holder’s” people? You’re not? I’m sorry, we can’t help you.
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”.
That’s ridiculous, actually. While 19% is a bit much, capping at 5% for UNSECURED debt would put many of them out of business.
We’re b-b-b-broke and this does not make jobs. Discriminates against people that didn’t use government loans.
Keep digging hole.
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.
The biggest theft in the history of man isn’t over...
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!
Same here!!
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.
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.
BIG TIME.
I suspect so as well. Tokyo may be a good place to be soon...
...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.
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.
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