New Obama Foreclosure Plan Helps Banks At Taxpayers' Expense !_!

Here's yet another boondoggle in the making !

We have the politicians Thinking, Writing, Talking ..
very dangerous to say the least!

The best part is ... what will they actually DO?

Always a multiple choice program.

This one let's the banks do what THEY want ... nothing new I guess.

Can't wait for VP Biden and Nancy to "speak" on this topic

WASHINGTON -- The Obama administration is introducing a new program on Monday designed to lower monthly mortgage payments for more troubled homeowners.

But a key new condition in the plan would shift the financial liability for refinanced loans from Wall Street banks to the American taxpayer. And by focusing on lower payments, the program does not confront what housing experts view as the core problem in the foreclosure crisis -- borrower debt that exceeds the value of one's home.

The newly expanded program would expunge legal liabilities associated with mortgages refinanced through the program for the original lenders of the mortgages. Each time a bank sent a loan to Fannie and Freddie, it certified that the loan met Fannie and Freddie's safe lending criteria. But many loans sent to the mortgage giants did not, in fact, meet those criteria. Currently, when borrowers default on those ineligible loans, the mortgage giants can "put back" the resulting losses onto the banks that pushed the loans.

Under the modified plan, "put back" liability at banks will be erased for any underwater mortgage that is refinanced through HARP, eliminating Fannie and Freddie's ability to sack lenders with losses in the event that the mortgage does not pan out.

... and then we see another miracle bailout for Fannie & Freddie!


Link to article;
owing more than the home is worth


Looks Like More Sweeping Changes Folks

Don't see this as a win for banks reading this article:

According to an administration official, Mr. Obama will kick off his new offensive in Las Vegas, ground zero of the housing bust, by promoting new rules for federally guaranteed mortgages so that more homeowners, those with little or no equity in their homes, can refinance and avert foreclosure.

www.nytimes.com...

Which means that since Fanny and Freddy guarantee most of the American mortgages in this country that they will take a loss footed on the backs of the same people they are supposedly trying to "Save".

Maybe i don't understand the current potus is bypassing congress to make this happen and alright i am trying to understand this reduce loan payments footed by taxation and when that money runs out raise taxes?

Did i get that right? more creative government shell game financing.

GoBama!! You are our fearless leader, I dont think anyone is capable of making better decisions. I mean, the banks arent screwing us over enough, or screwing up enough, the government needs more involvement because when you want something done with speed of molases and incompetence, have the government do it.

wait....a second... the goal isnt to screw the country up? Could have fooled me.

fool me once, shame.. fool me twice...!!...?? ugh?! well we cant be fooled again!

reply to post by neo96


I am thinking they, as usual, are not telling the full story.

They talk about what MIGHT be positive for SOME people.

How about "loan qualifications" ?

I'll bet many won't qualify.

The banks are off the hook for "lying" to Fannie & Freddie".....

That means Congress pays the losses .... later.

this is what they will not emphasize during standard "announcments"

The newly expanded program would expunge legal liabilities associated with mortgages refinanced through the program for the original lenders of the mortgages. Each time a bank sent a loan to Fannie and Freddie, it certified that the loan met Fannie and Freddie's safe lending criteria. But many loans sent to the mortgage giants did not, in fact, meet those criteria. Currently, when borrowers default on those ineligible loans, the mortgage giants can "put back" the resulting losses onto the banks that pushed the loans.

[color=limegreen]Under the modified plan, "put back" liability at banks will be erased for any underwater mortgage that is refinanced through HARP, eliminating Fannie and Freddie's ability to sack lenders with losses in the event that the mortgage does not pan out.

Why does this bring the image of a snake swallowing its' tail into my head?
This sounds like circular logic, maybe? WTF?
Oh wait no, that's not right, because I am not guaranteed one of those loans( not that I'd even consider taking one) no that's for the "Minorities" and "Poor" illegals who wnat to live beyond their means but I will eb paying for it.

reply to post by xuenchen


Government solution sack everyone who didn't take out the loan.

Sound about right?

Originally posted by ldyserenity
Why does this bring the image of a snake swallowing its' tail into my head?
This sounds like circular logic, maybe? WTF?
Oh wait no, that's not right, because I am nto guaranteed one of those loans( not that I'd even consider taking one) no that's for the "Minorities" and "Poor" illegals who wnat to live beyond their means but I will eb paying for it.

edit on 24-10-2011 by ldyserenity because: spelling

crossed arms.

Yes, as has been the case with most legislation under Obama (and many past POTUS's).

Most laws only benefit a select few, while un-benefiting the majority of American citizens, and then it ends up with more legislation that benefits only the bust-out businesses and special interests.

Actually, it is a big boa constrictor swallowing a human

We see it again the rich will get richer and the poor will pay the price of the Government Gangster the Banker

Originally posted by neo96
reply to post by xuenchen

 

Government solution sack everyone who didn't take out the loan.

Sound about right?

You're getting close.

No take loan -- No easy refinancing.

Sack the ones who can't qualify, and then let the lenders off the hook.

Congress bails out Fannie & Freddie.

With the "put back" liability" off the legal books, the bailouts happen easier and sooner.

All while the scribes get rich.

They are covering more than one base.

But all we will keep hearing is "It Will Create Jobs"

Get someone in office that knows if he takes one cent in bribes and he will be charged with treason and executed and things will start to get better !

You know just enforce the laws we have already.

The fathers tried to warn us about this day after being screwed by british bankers but it looks like we are going to have to re-learn the history lesson.

I have no trouble with people earning more than others but this has gone past a joke when Obama acts as if he care more about the people in Syria than the 500,000 people in the USA who are dieing from Cancer because they are getting 3rd world treatment for cancer and people in Libya were getting better treatment before we bombed the place and sent Haliburton and the banksters in to rebuild what we have bombed.

reply to post by xuenchen


But the government owns Fanny and Freddy they have been bailing themselves out the government is Fanny and Freddy and those same people who created them created MERS and regulated the sale of home mortgages.

Fanny and Freddy hold over 2 trillion dollars of wealth off the taxpayers back.

www.bloomberg.com...

theeconomiccollapseblog.com...

And now the government comes to the rescue to refinance their mortgages it's all one big crap sandwich and too many people are being told not asked to take a big bite out of it .

The Best way to stop this is to remove your money from the bankers do not put your Cash in there hands as its your cash they gamble with do you make a profit from the gamble no you do not. there for don't give them your cash. yes I know it might be hard for some people to pay there bills with out the money in the bank. but its better then getting screwed by the banker gangsters. Stand your ground and do not give in to them. if we all stand strong on this issue we can then break them down too.

Originally posted by Master_007
Get someone in office that knows if he takes one cent in bribes and he will be charged with treason and executed and things will start to get better !

You know just enforce the laws we have already.

The fathers tried to warn us about this day after being screwed by british bankers but it looks like we are going to have to re-learn the history lesson.

I have no trouble with people earning more than others but this has gone past a joke when Obama acts as if he care more about the people in Syria than the 500,000 people in the USA who are dieing from Cancer because they are getting 3rd world treatment for cancer and people in Libya were getting better treatment before we bombed the place and sent Haliburton and the banksters in to rebuild what we have bombed.

edit on 24-10-2011 by Master_007 because: (no reason given)

great points

BUT, as we dream on, all this keeps getting worse.

Obama enjoyed a Dem majority with the 111th Congress.

They blew it by passing legislation that only positivly impacted selected groups, while negativly impacting the Majority of Americans.

Of course, some say they actually did what they were ordered to do.

Look through the legislation.

Find anything that really packed a punch for the majority (a punch on the positive side that is)

en.wikipedia.org...

reply to post by neo96


Now you're talk'n...

and not to mention the outside contractors that are hired to manage the screw-ups.

Some of those contractors are big Wall Street investment houses !

BlackRock is one.

The fees to contractors for these purposes are a form of taxation.

This view from CNN is summing it up.

NEW YORK (CNNMoney) -- It might get easier for some homeowners to refinance their mortgages, but that won't do much to help the broader housing market.

The Obama administration Monday announced changes to its refinancing program to allow more homeowners who are current on their loans to take advantage of today's super-low mortgage rates.

The program is being touted as a way to help stabilize the housing market and stimulate the economy. But without addressing distressed homeowners and helping to clear the foreclosure glut, the effects will likely be limited, experts said.

"I would call it much to do about nothing," said John Burns, head of John Burns Real Estate Consulting. "It will help in such a small way, it's almost meaningless."

it looks likes you need to be "current" to qualify.

Designed to allow those who are current with their payments but have little or no equity in their home to secure lower mortgage rates, the president's Home Affordable Refinance Program has helped only 894,000 borrowers since the spring of 2009. The administration had originally hoped that up to 5 million homeowners would benefit.

it looks like they're trying to make up for lost ground from the failed 2009 effort.

To spur take up, the administration is now allowing more people to participate, as opposed to limiting it to borrowers whose loans are no more than 25% larger than their homes' value. It is also eliminating various fees and appraisal requirements, as well as extending the program for another 18 months.

so if somebody is 40% under, they can get a better deal?

And perhaps, most significantly, it will ease banks' liability to repurchase the loans if the borrower defaults. This should increase competition among banks to refinance more homeowners in good standing, administration officials said.

and it will make it easier for bailout legislation !

competition between banks is not the issue.

with interest rates low, they are very selective anyway.

some loans may have more profit for banks as they already are.
why loan at a lower rate?
because it eliminates legal problems later (for the banks).


Refinancing plan won't help housing market