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Obama plan to help homeowners will really screw the seniors

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posted on Jan, 5 2012 @ 03:01 PM
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Obama's ``plan`` to ``help`` people (really an ``elect me`` move) :

Obama 1 trillion mortgage fix

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.

That sounds great right... well not really if you didn't need that program in the first place because you're not a financial screw up...

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.

You see, pension funds depend on 6-7% interest to deliver what was promised... right now, they are already having a hard time reaching that because of what's going on around the world economically...

So now, what's gonna happen is that you take that 6-7% and you cut it to ``4.2% or less`` that Obama wants... and this is what the pension funds are gonna get. So they get screwed of at least 3-4% on their investment. Ain't that nice?

This is basically taking money from seniors and giving it to irresponsible homeowners to shore up banks balance sheets... let's also mention the fees that the banks are gonna make on that...

If this goes through, expect several pension funds to be in trouble or just blow up altogether... and yet again for the banks...

EDIT :

White House Has No Plan for Mass Home Refinancing, Person Says

For now...
edit on 5-1-2012 by Vitchilo because: (no reason given)




posted on Jan, 5 2012 @ 03:14 PM
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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.

Seems like big banks should be pushing this hard core they can make a killing.



posted on Jan, 5 2012 @ 03:17 PM
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reply to post by Vitchilo
 


actually, they aren't the screw ups, the mortgages are current......
but that aside, I would venture to guess this is more of an attempt to get all those toxic loans buried and forgotten....



posted on Jan, 5 2012 @ 03:20 PM
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Right and the Governments plan to make sure everyone got a free home worked out so well last time that led the the financial crisis that lead to billions of bailouts.

And now this never fear here is Obama and the Government to save Seniors this go round yeah already know how this is going to turn out.

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.

For once why can't they leave us the hell alone oh silly me i already know the answer to that Government knows best and we don't know jack cause gosh darn we Americans are just too stupid to think and take care of ourselves.



posted on Jan, 5 2012 @ 03:37 PM
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reply to post by thegoods724
 



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.

Yeah Freddie guarantees them, but they do not own most of them. The mortgages are also owned by pension funds from states and cities...

But yeah, it's a bigger issue, but it has been discussed at length. This is another issue.
edit on 5-1-2012 by Vitchilo because: (no reason given)



posted on Jan, 5 2012 @ 03:46 PM
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the total value of all these derivatives, according to what I read, is more than the value of all the homes in the entire world!!!
so, someone, please tell me, just how in hades name could a few "unresponsible" homeowners create this kind of mess???

THEY COULDN'T!!!

so, who profited by it???
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???

well, who should be losing out??? just wondering here, can't be by the rich losing their precious tax breaks, oh no!!! never mind that it seems like the main part of that tax break that they want to protect is the capitol gains tax...tax on investments!!! the investments, that enjoyed the profit from the boom years...na, can't be them!!!

na, it's gonna be the poor, and the middle class that end up paying it, thus, making us all poor!! it not by taxes, then by inflation.

well, guess what, refinancing the homes is just gonna bury the crimes even deeper into the chaos, which is why we haven't refied ours!! make everything look all legal and such. and the whole thing was seeped in fraud, from the loans being a sham (liar's loans...of which, some of the people didn't lie about their income....the one filling out the loan papers did!!!) to the assessors (ya, nothing like getting black listed because you gave an honest assessment on the homes), to the companies on wall street who package crap (and they knew it was crap) rated it AAA (knowing it was crap!!) and selling it off...to the mortgage servicers who literally shredded the notes, and signed up robosigners to commit fraud when it came time to foreclose!!!

but, no, no, no....we shouldn't support any help to the homeowners here (why, have no idea, we've given the banks more help than the value of all the property in the entire world!!), we can't let the poor little investors suffer!!!
it will hurt the elderly and their ira's....
of course, having the gov't sieze those ira's so they can continue covering the banker's losses, well, that's all fine and dandy, and those elderly people won't be hurt a bit by that one, or the loss of their social security, na, they'll be just fine there!!!

I'll just say that I am against it because
I think it's an attempt to bury the fraud and act like everything is just fine and dandy, nothing learned, let's go on to the next scam, please!!! hey I know, we can start buying off people's life insurance policies, bundling them up, and selling them off, and then, well, we can go out and kill the people, and make out real big!!!



posted on Jan, 5 2012 @ 03:47 PM
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Just another attempt by Obama to buy the election. That's it plain and simple.



posted on Jan, 5 2012 @ 03:48 PM
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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.


Is this a joke? All of our problems are the direct result of the government trying to help "us"?

Really? De-regulation of the financial sector was an attempt to help "us"? All of the bailouts were an attempt to help "us"?

I don't think that our problem has anything to do with our government "helping us" too much, I would argue that they have no intention of helping us and that nearly everything the government does achieves some end for the corporate bosses who are the true policy makers.



posted on Jan, 5 2012 @ 03:56 PM
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reply to post by dawnstar
 




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???

Nah. I'm saying the dumb people who flipped homes and bought $500 000 homes with $20 000 salaries deserve to lose their house.

But banks deserve to lose the money they loaned.

Both sides need to lose since they made a bad decision.
edit on 5-1-2012 by Vitchilo because: (no reason given)



posted on Jan, 5 2012 @ 04:05 PM
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reply to post by JIMC5499
 





Just another attempt by Obama to buy the election. That's it plain and simple.


Buy an election? What do you think is going on with the Republican party right now? Free will of men?


Corporate money is flooding into campaigns...most of the candidates are bought and paid for.

Typically, you are supposed to make voters happy to keep them voting for you.....or in a corporate politicians eyes...you have to keep voting in favor of corporate billionaires to keep the money flowing in....

Same thing.

Corporations don't have to buy votes...they simply BUY THE POLITICIANS.



posted on Jan, 5 2012 @ 04:07 PM
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can we wait to see the plan ?

txs

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

but you knew that

right ?
edit on 5-1-2012 by syrinx high priest because: (no reason given)



posted on Jan, 5 2012 @ 04:13 PM
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reply to post by Vitchilo
 

heck, I wished we had known that we could have gotten a $500,000 loan with the income we have, a bit more than $20,000 by the way!!!

I also wished I knew before I showed up to sign the papers that it was an adjustable mortgage also, don't know if hubby did or not, but well, he and the person making the sales pitch both knew I didn't want one!!!
well, we had already moved into the house (wasn't that kind of them!!), so I just said a prayer and signed away...

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 well, I got a feeling that at least some people are gonna have a problem when they decide they want to sell the house and go after the title insurance. and ain't no bank gonna loan a person money for a home if the title is in question!!! if this is the case, then alot of the homes have lost alot of value!!! far more than they are saying has been lost!



posted on Jan, 5 2012 @ 04:17 PM
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reply to post by UdonNiedtuno
 


I forgot reading and comprehension skills are severly lacking on this site the fact was corporations and banks are evil so the Government stepping in to make it "fair" that everyone got a free home that was controlled by congressman Frank and Dodd that created MERS,Fanny and freddy where 95% of all us mortages are backed by Government agencies.

And the fact that Fanny and Freddy to this day still received bailouts and bonus for pis poor management that led to a mortgage commodity market where they were bought and sold.

That was regulation contrary to what you think REGULATION has not done a damn thing now has it except create more problems to be bailed out.

The problem is the government interferring into what is suppose to be a free market when it has been anything but and people scream its "deregulation" there agian Senators Frank and Dodd and the Financial Reform act of 2010 was there to save the day.

Give me a freaking break IT IS GOVERNMENT who creates the problems they always have been the ones those congressman greed and lust for power and control.
edit on 5-1-2012 by neo96 because: (no reason given)



posted on Jan, 5 2012 @ 04:29 PM
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This is a rock solid idea. Everyone wins in the end. I just don't think you let FNM and FRE resell the mortgages. Keep them on the books of the government and use the interest to reduce our national debt. Housing debt is about $10 trillion. That means about $400 billion not needed to be raised by taxes. If only the government could profit on the money they create instead of banks.

Take away easy guaranteed investments and the wealthy will be forced to invest in human capital.



posted on Jan, 5 2012 @ 04:40 PM
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reply to post by dawnstar
 





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!!)

Totally. All mortgages that were robosigned? Illegal. The house becomes the property of the current owner.



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

What about you let the market correct itself... banks go under, people who have too big mortgages lose their homes, whoever was cheated by the bank get their house for free.

Then the price of houses will go back to where it should be... people will be able to buy houses for 2-3 times the average salary.

edit on 5-1-2012 by Vitchilo because: (no reason given)



posted on Jan, 5 2012 @ 04:46 PM
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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.


Please give me a link and evidence that pension funds are still deep into Mortgage Based Securities after the Mortgage crisis? And if so ...how are pensions invested specifically in Fannie Mae-Freddie Mac mortgage securities??? Why would any pension put money there??

Even if any of that was remotely true...that pensions are deep into FM-FM Mortgage securities....you are saying that we should keep mortgages that might fail at 6% or 7% rather than reduce them to 4.2%...because a Failed investment (Full LOSS) would be better than a 4.2% return for the pensions?

Please explain both of the above.
edit on 5-1-2012 by Indigo5 because: (no reason given)



posted on Jan, 5 2012 @ 05:02 PM
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reply to post by Vitchilo
 


what about those people, who 20 or 30's year from now, go to sell the home, and find out that its not worth as much as they thought, because their title is crap, because of this crap!!! this is an aspect that they aren't even touching on. and I've written to my attorney general and governor asking about it. haven't heard much of anything about how this will effect the homeowners that aren't gonna foreclose on their home... they should go through the mers database and find out just what the heck did go down, and how many homes have been tarnished, how many have more than one holder of the mortgage, ect... but they probably won't they just want to bury it as fast as they can, then we homeowners can be surprised, one day, tomorrow, next week, next year, or decades from now, when we find out that we've been paying our mortgage to the wrong company, or something similar.

if they have muddied the titles to a big enough number of homes in the US, and don't bother tracking down the ownership chains and validate it, it could depreciate the value of all homes, couldn't it??



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