White House to veto foreclosure bill, page 1

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Topic started on 27-2-2008 @ 02:33 AM by RedGolem

White House to veto foreclosure bill

money.cnn.com

The Democratic housing bill would change bankruptcy laws to allow judges to cut interest rates and reduce what's owed on troubled borrowers' mortgages, provide $4 billion to communities to purchase and rehabilitate foreclosed homes, and improve disclosure of subprime mortgage loans in hopes that borrowers won't be surprised by big payment increases.

But the White House said the $4 billion for purchases of foreclosed homes is too expensive and "would constitute a bailout for lenders

(visit the link for the full news article)

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reply posted on 27-2-2008 @ 02:33 AM by RedGolem

Well, even though this is just a bill it is a surprise. It reads like people put on the hill might actually care a little bit about the voters who actually put them there. This article actually reads like the bill is being written to benefit the people and not the lending banks. Unfortunately it goes on to say the re write of the bill will remove most of those provisions because the lending institutions are fighting it so fiercely, so surprise there.

money.cnn.com
(visit the link for the full news article)

reply posted on 27-2-2008 @ 09:51 PM by xpert11

IMO this is just an attempted to make Republicans and Bush look bad. Giving judges the ability to reduce debt and interest rates is a fundamentally flawed idea. All it would do is prevent the banks from legitimately foreclosing on mortgages , encourage bad financial practices and discourage banks from giving loans to low - middle income people .

Of course that four billion could be used to buy homes for vets and improve health care for veterans in general but that wouldn't suit partisan politics .

reply posted on 2-3-2008 @ 06:47 PM by RedGolem

I do think you may have been right Xpert. However I did find this for the latest on this issue.

An inappropriate use of taxpayer dollars is what President Bush and Treasury Secretary Henry Paulson call some plans in Congress to aid homeowners stung by the mortgage market mess. For their part, Democrats say the Bush administration is more interested in bailing out Wall Street than Main Street.

But despite the toxic reputation of bailouts, more and more lifelines keep getting tossed — including one administration plan dubbed "Project Lifeline."

With the housing market wheezing and presidential candidates seizing on the crisis, politicians and government officials will likely toss out more proposals, rescue plans and initiatives. Whatever these plans are called, both Democrats and Republicans are being careful to couch their proposals as an effort to aid homeowners — and not mortgage lenders — amid an ever-widening economic problem, though it's nearly impossible to aid one without helping the other.

raw story

reply posted on 2-3-2008 @ 07:42 PM by xpert11

Well for now I am inclined to let things slide . Lenders who work on a unsound model deserve to go under . At some point targeting low income people for loans was going to catch up with those in question even if the stock market didn't .

Now I may heartless but if you think about first time home buyers and others in the market could have a chance to pick up a bargain without the need for a first home buyer scheme . As already noted the US government could also buy homes for vets .

Once things die down the merits of increased regulation can be debated . The last thing we want to do is to add costs to the process of buying a home or deter mainstream banks from lending to those people who are in a position to repay a mortgage.

reply posted on 2-3-2008 @ 07:52 PM by RedGolem

reply to post by xpert11

Xpert
the way I see it is the banks loan money to people who they know will be unlikely to pay it back for the purpose of foreclosing on there home so they can turn around and see it for even more money. Point being that does not mean they will be losing any money, they are robbing nickles and dimes from the working people. And if a bail out does happen hen they take it from the tax payers.

reply posted on 2-3-2008 @ 08:26 PM by RANT

Originally posted by xpert11
Of course that four billion could be used to buy homes for vets and improve health care for veterans in general but that wouldn't suit partisan politics .