A more extensive review of the Housing bill bail out
Firs the Flexible Underwriting Criteria
, this is to ensure that mortgagor have enough confidence of repaying the mortgage, this will
take into consideration the income, liabilities, payment history and other.
It also be flexible enough for those mortgagor that have less than good credit will be able to be taking into consideration for insurance and credit
scores will not be an issue.
Now if the person still default on their loans even with bail out we the tax payer will forward the bill
Revenue recovery through home sale profits
, Not according to section 257 of the bill If a troubled homeowner get a loan from the FHA and
later sales his home, the FHA will collect all the profits.
Now on this one it’s a loop hole that will make possible for the seller to make the transaction look like no profits made and have the buyer give
the seller cash in a for of a gift.
This one I don’t really understand why is even part of the bill.
Credit card and other payment processors must report transactions to the IRS
, this will under mind the privacy of consumers.
More tax credits and deductions for homeowners
, the bill have over 60 sections relating to tax incentives over the ones that already has
been available, this one is an overkill.
This one is a good one.
The treasury gets a blank check to maintain Freddie Mac and fannie Mae
, The treasury has been given authority to keep buying stocks and
debt to keep this two afloat.
We all know the loses already as both of this companies are already in a lot of trouble.
Now this one is mind blowing.
This bill will raise the national debt by 800 billion dollars
so actually we the tax payer are the ones doing the bail out so the
treasury can keep putting money on the big Fredde and Fannie.
Housing and Economic Recovery Act of 2008
So at the end this nothing more than more money for Fannie and Freddy at the expenses of tax payer money.