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According to the article, the Obama administration could announce a program modeled on one that was originally devised by Columbia University economists Glenn Hubbard and Christopher Mayer. Under that plan, all homeowners with a Fannie or Freddie-backed mortgage can refinance with a new mortgage at a fixed rate of 4.2% or less if they have been current on their payments for at least three months. And the clincher is that the plan imposes no other qualification - no appraisal or income verification.
The typical borrower would reduce his or her principal and interest payments by about $350 dollars, a total reduction in mortgage payments of nearly $100 billion per year, according to Hubbard. It is expected to help refinance $3.7 trillion in mortgages and would come at an immediate fixed cost of $121 billion to the government.
White House Has No Plan for Mass Home Refinancing, Person Says
Isnt the bigger issue that your having all these junk morgages being refinanced by freddie mac, it basically gets the bank to lose all liability of loans they shouldnt have made to begin with. And I thought freddie mac was like entwined with the government and that the government is basically going to take the fall for the morgages that wont be paid back. Making the big banks get off scott free.
Originally posted by neo96
When will people wake up and realize the simple fact that every problem we Americans face today is the direct result of Government helping us speaking for myself i have had enough help i think we all have.
the op kind of insinuates that the holders of such things as ira's and such profited some, since they will be the ones he claims are gonna lose out???
Just another attempt by Obama to buy the election. That's it plain and simple.
one thing that probably should be considered though, if you ask me, everyone's mortgage should be written down (the banks should eat the lose) since their negligence when it came to what they did with the title of these homes (they muddied up the chain of ownership very badly which is why they had to resort to robosigners when it came time to foreclose!!)
and many people are in need of help because of the 08 mess ruining the global economy, and not just because they borrowed more than they could afford
Originally posted by Vitchilo
But anyways. This ``sounds`` good... but guess what, what it'll REALLY do is transfer that ``121 billion +`` from Mortgage based securities (MBS) which most pensions funds are invested in... and transfer it to homeowners.