Obama considers massive new mortgage refinance program

Not sure that this has been posted, i did search (doesn't it suck that this always has to stated?).

Anyways, i have always pushed for some type of federal refinance program. This, at the very least it is a good start. I wish they would propose some principal relief as well.

President Obama is reconsidering a plan to allow millions of homeowners with government-backed mortgages the ability to refinance their mortgage at historically low rates in an effort to boost a still struggling U.S. economy, the New York Times reported, citing two people briefed on the administration's discussions.

www.cbsnews.com...

They are talking about 4% rates for everyone. The problem is the investors will not want to accept this and lower rates would mean higher losses for Fannie and Freddie. In order for this to work they will need to buy all the loans from fannie, freddie, etc. and make those investors whole. The loans can then be put in a fully government owned agency and by maturity the government will get all their money back and then some. It will also be easier to cut principal which is what is really needed.

reply to post by sligtlyskeptical


Well that sucks....That is my interest rate now...4.25%.....I was hoping for like 0% or 2% or something better....

None of these wonderous new refinance programs apply to owners of mobile homes, hell we're paying 13% interest and are in desperate need of refinancing our home. As soon as the banks hear the word mobile home, they aren't interested even with the property attached to the mortgage.

Originally posted by twitchy
None of these wonderous new refinance programs apply to owners of mobile homes, hell we're paying 13% interest and are in desperate need of refinancing our home. As soon as the banks hear the word mobile home, they aren't interested even with the property attached to the mortgage.

So take the wheels off
Then its no longer mobile


(actually, would that work? hmm)

Originally posted by Chrisfishenstein
reply to post by sligtlyskeptical

 

Well that sucks....That is my interest rate now...4.25%.....I was hoping for like 0% or 2% or something better....

lol me too. im at 4.375. This hand out does me no good

reply to post by camaro68ss


If the government were to do this what does it imply. I think that it means that they hold the deed, so, the government, wait...Oh it's a crazy socialist scheme but wait they are going to want to insure that too right...

reply to post by sligtlyskeptical


4% is too high. It needs to be 2% - the same as those that get loan modifications.

And it needs to be put in place ASAP.
Sadly, i doubt this will ever happen.


"Anyways, i have always pushed for some type of federal refinance program"
Interesting statement - just who have you pushed? Or do you mean supported?

Originally posted by Julie Washington
reply to post by sligtlyskeptical

 

4% is too high. It needs to be 2% - the same as those that get loan modifications.

And it needs to be put in place ASAP.
Sadly, i doubt this will ever happen.


"Anyways, i have always pushed for some type of federal refinance program"
Interesting statement - just who have you pushed? Or do you mean supported?

I have written hundreds of letters to the leaders in Washington for one. I have also expressed my views on every media outlet that would allow me, unfortunately that means mostly message boards and the such. We can save our nation and economy by fixing the mortgage mess once and for all. Under the law every mortgage should be declared uneforcable so anything the banks investors get is mor ethan they deserve.

reply to post by sligtlyskeptical


Thank you for your pro-active approach to this crisis.

I thank you.

So instead of fixing the failed programs of Fannie May and Freddy, they are going to give more money to be lost due to bad loans and for people who can not afford to make the mortgage payments, and thus the US Tax payer is having to bail out yet another government program that is mismanaged again?

It's not called a ``new mortgage refinance program``... it's called a ``payoff to buy votes``...

Let the big banks fail, arrest the bankers, put Glass-Steagall Act back, kick out Bernanke, bring the troops home, close Gitmo, repeal all Bush anti-terrorism laws, arrest Bush for crimes against humanity, etc... how hard is that?

Want to get elected? DO THE RIGHT THING.

But no, Obama will continue to do the treasonous things because that's what his masters ask of him and he's just a wimp.

Originally posted by Vitchilo
It's not called a ``new mortgage refinance program``... it's called a ``payoff to buy votes``...

Exactly...After spending three years presiding over massive giveaways to the banks and wall street thugs directly responsible for the housing bubble, with nary a one being prosecuted for the grocery list of crimes they committed, now a year out from election Obama decides to throw a bone to the underwater homeowners/victims of this travesty.I guess the millions who already lost their homes will just have to suck it up. No amount help now will restore their lost jobs, homes, credit scores etc.

Too bad that hurricane won't blow Obama out into the Atlantic, it would be quite a sight to see him swimming against the tide, encircled by sharks. Maybe then he would understand what the average struggling American has felt like for the last few years...

I believe that if they do this anyone who refinances and then can't pay will be kicked out quickly as there won't any longer be questionable loan docs. At 4% interest over 30 years, the government will not lose money doing this, even if they pay off investors and banks at 100%. This is exactly what the economy needs.

Oh they won't loan though. It might help the wealthy like everything else he does.

I have a 7% loan and owe 28k on it. I wanted to refinance it b/c I had the feeling my hubby would lose his job.
The house SHOULD stand for itself easily but they would not give us the loan. Our credit isn't bad. I have a bad mark on mine but hubby's is stellar. I mean STELLAR. They wanted us to list our assets. We had a few grand. They said - and I quote them - that cash was not an asset.

The banks don't want to loan. They seem to want this junk to happen.
Did you guys see the Bernie Sanders letter where he got the documents that were hacked from the ftct that showed that Goldman and JP morgan were responsible for the run up in oil prices in 2008? Then GS goes and lawyers up right after that b/c they KNOW that they put some speculators in jail back in May.

I'm convinced that for some reason the banks want the US to fail or at least be weakened. My doctor was trying to build his house - he had bought his land and had half the money saved up, and the bank wouldn't give him a loan. They had told him he needed 20% to build. He already had his dream house plans but could not get financing. He's a very successful man that couldn't get financing to build. He told me the banks pressured him into buying a turnkey that was in foreclosure.

I don't trust them as far as I can throw them. I trust them less than the govt and that's saying a lot.

Am I really the only person that thinks this is not a good idea?

Why in the world should the government be the solution to the housing problems? In my opinion, government interference had a lot to do with CAUSING the problem. For example--banks were "encouraged" to give loans to get more people into housing...that they couldn't afford. It was all to "help" people live the "American Dream" of home ownership. Then, because more people were buying houses, prices went up. Supply and demand. Anyone should have predicted that when people are allowed to buy things they can't afford, they will not be able to pay for them. And therefore, prices have had to come down, because of all of the defaulting on the mortgages that should not have been made in the first place.

The banks should not have made those risky loans to people who didn't have enough money (or credit history) to pay them back. People should not have TAKEN OUT those loans. Government should not have encouraged those loans.

Still, the PEOPLE who took out those loans are also part of the problem. They are not victims. Unfortunately, they made some bad decisions. Once, we were offered a risky adjustable interest-only loan. It sounded too good to be true. So I researched it, realized how it could go REALLY wrong for us, and I did NOT take out that loan. Personal responsibility. Had I taken it out, and then had the rate SKYROCKET to the point we could not afford the payment, would it have been the bank's fault? NO, it would be my fault for agreeing to those terms.

Yes, I would personally LOVE for someone to give me a 4 % or lower mortgage rate (currently mine is 4 5/8) without me having to pay for a refi. I'd be DELIGHTED for the amount that I owe to go down, because my house has lost value since I bought it.

Unfortunately, that's not how it works. We bought 6 houses (including the one we are in) between 1993 and 2005. For each of the first 5, we sold them for more than we bought them for, and made a profit that we rolled into our next house. During that period, the cost of housing was rising at artificially high rates so each house was progressively more expensive.

This housing correction hurts. We are in a house that is not worth as much as we have put into it (we did some substantial remodeling over the past 6 years, and even though we don't OWE more than it is worth, we would lose all of the money that we put into it if we were to sell.)

It SUCKS that we have taken a hit on our home value. But guess what...NO ONE should FIX it for us.

I think all this talk about refinancing at lower interest rates is a total joke.

A friend of mine kept getting letters and phone calls from his bank (Bank of America) to come in and talk to them about refinancing to lower his current interest rate.

So he decided to go into the bank to get more details on what they were offering. On the house in question, he currently has about 22 years left on a 30-year loan...and the very best interest rate that they would offer him was 5.1%...PLUS they wanted to rewrite his loan back out to a new 30-year loan again.

And this guy has a FICO score of 848 (out of a possible 850).

When they offer me the same rate the banks pay for their loans.. or even the US Government pays for theirs.. I will be all for a refinance..

That's to say it needs to be between -1%/0.25 percent.

Yes.. that's a negative, which is what the Reserve currently pays to bank reserves.

I remember reading that the Carlyle Group (SP?) took some huge interest in freedie and fanny right before the housing fiasco started.

Maybe it is a vehicle for socialization of the US - because, in a way, it would be like the US suddenly owns everyone's property that is mortgaged, in addition to the owned properties that they can get a lien on for some late payment of taxes, wouldn't it?

You can't be poor in America that's for sure. If you are they put you on life support that some call entitlements.

I don't want to be on life support and I don't want to be a slave. Are there other options?

Originally posted by GeorgiaGirl
Am I really the only person that thinks this is not a good idea?

No GeorgiaGirl, you certainly aren't. In fact I think you'll have substantial backup on this one.

GL

Some Of Your Taxpayer Assets Will Be Sold Off To 'Vulture Funds,' In Case You Were Interested

Hey, everybody! Time now to check what's going on with that giant portfolio of foreclosed-upon homes that we, as taxpayers, own. Did you forget that we owned a giant portfolio of foreclosed-upon homes? Because we do. Anyway, the good news is that we may not have this portfolio for much longer. The bad news is that we'll be relieved of it in one of the worst deals possible.

At any rate, Ken Layne points us to some recent news on that front:

The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors -- vulture funds.

These homes, which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value.

You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction.

In the process, these investors will instantaneously become the largest improved real estate owners and landlords in the world. The U.S. taxpayer will get pennies on the dollar for these homes and then be allowed to rent them back at market rates. - Continues