Obama’s parting gift to America: Subprime 2.0

The Administration is planning a new kind of "qualifier" for mortgages.

Apparently the "lure" will be income from other people besides the actual "mortgagee" can be counted in as income to help get bigger loans out to people who otherwise would not be able to.

Can't wait to see the victims lists that come out of this deal.

I guess the banks are gearing up for the coming interest rate hikes.

I wonder if these "other people" will be willing to take the credit score dings that come when somebody else defaults.

But think of the "opportunities" and the "access to" high finance !!!

And the geniuses have even thought to rename some old terms to new very attractive bait hooks.

Obama’s parting gift to America: Subprime 2.0! What could possibly go wrong?

The article seems to be setting sights on a specific "demographic".

Subprime 2.0: The White House is rolling out a new low-income mortgage program that for the first time lets lenders qualify borrowers by counting income from nonborrowers living in the household. What could go wrong?

The HomeReady program is offered through Fannie Mae, which is now controlled by Obama’s old Congressional Black Caucus pal Mel Watt. It replaces the bankrupted mortgage giant’s notorious old subprime program, MyCommunityMortgage.

In case renaming the subprime product fails to fool anybody, the affordable-housing geniuses in the administration have re-termed “subprime,” a dirty word since the mortgage bust, “alternative.”

Get Your Applications Soon !!

Until the greed in America is curtailed, we will continue to spiral down the tubes. I can't wait for all the big money to leave the US so it can start over.

a reply to: xuenchen

No way?! Obama is trying to make some rich people some more money using some crony capitalism??

What a dirty commie!!

a reply to: Sremmos80

More like making sure at least 100,000,000 people go into unpayable debt.

The entire economy is nothing but debt anyway. Bleh, I wish we could get a fresh start.

a reply to: xuenchen

While I don't necessarily disagree, where did you get the number from?

Yes, the poor people who get suckered into the subprime loans will be the victims while the guys that facilitate them laugh all the way to the bank.

Wonder if the extra people on the loan will be like co signers? They would be financially responsible if they are.
This just sounds like a bad idea. I've seen to many examples of people buying a home and not being able to pay for repairs and upkeep.

originally posted by: xuenchen
a reply to: Sremmos80

More like making sure at least 100,000 people go into unpayable debt.

And some folks conveniently forget this is was a snowball into the bailouts.

History repeats itself. And for those thinking free is free and carefree, often.

a reply to: xuenchen

Banks just getting scared that the tiny house movement is gaining ground. Banks don't want you to pay off loans, they want you in high debt that you cannot pay off. Even if you had someone extra in the household. They know that people move in and out in hopes that you miss a couple of payments then they come a knockin at the door for you to get out so that they can sell the house to another Sucker to keep the MONEY MACHINE going.

Trump will fix this.

a reply to: Swills

GO TRUMP . Lets see if he can TRUMP all over the white house.

a reply to: Swills

He has a plan, and it is a great plan. He can't tell you what it is because then his competition will know what it is.
But he knows great people, and those great people know how to get stuff done. It will be great and it will be YUUUGGEE.
#MAGA

Sounds like a rebranded Ponzi scheme.

Let's see; millions of new loans become
Tens of thousands of defaults to Fanny Mae;
Leaving the taxpayer on the hook once again.
That about right?

I just watched "The Big Short". Sobering movie.

I cant believe the morons would try this again. Not like it matters much though.

We are screwed financially either way.

Highly recommend this movie.

This plan is geared more towards the Hispanic and immigration population who tend to have several people living under the same roof with multiple incomes. At least that's what the article says. It's an untapped market, they say.

Still....BAD IDEA!! Will we never learn from our mistakes?!

Sounds like a great idea! How much do my dog(s) factor into my mortgage now? They are nonborrowers as well.

Obama parting will be gift enough in itself

Without reading the article I can actually see both sides of this....I think...?

I sold a house several years ago to a woman who had a cash type business. She also had 3 daughters and their husbands living in the 4 bed room house with two other rooms that could also be bedrooms.. Everyone worked and paid their fair share of the mortgage. She paid the house off in 15 years and never missed a payment. Certain races or nationalities tend to have their entire families living together and paying for food, mortgage, electricity, and anything else required to live there. Talk about extended families with a couple of generations all living merrily together... It certainly works for some and this type living arrangement may be all many of the newly arrived (or others) can afford to do for a place to stay.. It is a very popular living arrangement with Mexicans who have moved to Texas.. Mom or dad cannot qualify for a lone by themselves however with all the family members working and helping out, a 5 bedroom nice home is attainable if their incomes are combined.. Never mind if someone loses their job or moves out of the house.. That can happen to anyone, No?

Now I will go back and read the article and see how far off base I was..

You can even claim the earnings of people who are not occupants, such as your parents, under this program. […]

It’s all part of a government campaign to ease access to home loans for Hispanic immigrants who tend to live in groups and pool finances.
- See more at: proteinwisdom.com...

Well that is just plain stupid ! Should have read the article first !

a reply to: Asktheanimals

Fantastic People can still get SCREWED by Obama even after he's Left
the Building and His Old Pals can Still Line their Pockets.

What a Country
Land of The Free Slaves