Results from Piecemeal Housing Plans Leave Doubts About Effectiveness

RE:Results from Piecemeal Housing Plans Leave Doubts About Effectiveness

Mary Supinger — Mon, 19 May 2008 11:00:00 GMT

As a mortgage loan officer, I agree that there was/is a lot of abuse and greed going on from all side of this equation. It is unfortunate that the 100% Stated Income loans were available to so many borrowers and that so many loan officers didn't take the time to walk their clients through what would/could happen with the mortgage in future years. That being said: Rather that looking for someone to blame, I hope that the education standards for loan officers and borrowers will be increased. To actually have to legislate that a loan officer reviews whether or not the loan product being offered will work for the borrower in the long run is appalling. This can and should be done every single time, without exception!

RE:Results from Piecemeal Housing Plans Leave Doubts About Effectiveness

Larry batch — Fri, 16 May 2008 11:00:00 GMT

Another example of not looking out for our seniors. Hud's new rule making borrowers pay for Reverse mortgage counseling even if they don't need counseling or may not qualify for a reverse mortgage. Many seniors don't have the125,000 plus more if the want a family memerber or gurdian to be counsled they have to pay for it. You can get the around the cost of paying by claiming if you say I can not afford it but then you risk a longer waiting time and possable steering to a lender who will pay for the cousling. You can be a FHA borrower and recieve counsling free but seniors using a reverse mortgage will be forced to pay. 2 things will happen, one it will make Reverse Mortgages more expensive and will shut out seniors with lowere home values. as it will not be cost effective for companies to pay fees even if deal does not go thru. Many lenders will be paying for this service bcause seniors will balk at this plan. What happines when seniors will have to pay 125.00 before loan can be transferd for lower rate or closing cost? This willl stop shoping. All this does is create a business for Credit debt companies to make more money. What happen to all the MIP money that could pay for this.

RE:Results from Piecemeal Housing Plans Leave Doubts About Effectiveness

Douglas M. Thomson Sr. — Thu, 15 May 2008 11:00:00 GMT

If the lenders don't wish to follow the rules and regulations the Unitied States Government require, then it is time they chose another business to go into. Our Citizens must be protected from predatory lenders with hidden agendas. Lenders continue to slap our government and our citizens in the face by increasing interest rates after the FEDS lowered the lending rates to help the people. I suggest that the FEDS make it mandatory to stay within set Interest Rate Caps. Any lender that does not understand the danger in their continued unwillingness to cooperate during this great time of need is stupid and is setting themselfs up for BANKRUPTCY. Lenders that play games and refuse to lower their interest rates to help keep our citizens in their homes should not be allowed to obtain additional FED funds our receive any type of insurance payments. After all if I were the insurance company I would certainly have a case I could prove in court. The banks failed to negotiate and as a result they forced the citizen out of the home. Since the Lender refused to cooperate why should the FEDS or the insurance companies foot the bill? I still say that the Consumer Credit Counsel should act as the negotiator for the citizen based on their ability to pay, value of the property and other financial obligations. The lender must be required to provide invester guideline information and the CCC will provide the proper documentation along with the citizens budget and actual current expenses. A proposed mortgage payment plan that the citizen can afford to make even if it is an INTEREST ONLY PAYMENT FOR 60 MONTHS. How can the lender or the citizen loose if the citizen pays and stays in the home as apposed to selling for less then is currently owed + expenses? Just a thought!

RE:Results from Piecemeal Housing Plans Leave Doubts About Effectiveness

D Lawrence — Wed, 14 May 2008 11:00:00 GMT

A big problem is that banks have lost a ton of money, as witnessed by the fact that the Fed felt obligated to bail out Bear Stearns (or at least the creditors of Bear). The Fed continues hold its benchmark interest rate below inflation, and to provide liquidity on pretty flimsy collateral such as mortgage, auto & student loan CDOs in order to keep the banking system afloat. If these CDOs were really worth what banks carry them for on their books, why do banks use them for collateral against Fed borrowings instead of just selling them? Why are banks raising fresh capital as fast as they can at a relatively high cost of capital, not to mention the dilution effects. And we have yet to see how many pension funds and other investors are sitting on huge losses from mortgage CDOs, but Florida's Local Government Investment Pool debacle could be an early look at a BIG problem. And if you want to see something really scary, just go to the St Louis Fed web site, to the research section, and look at Non-borrowed bank reserves. My point is that every time a mortgage is modified so that the homeowner lowers their payments, the mortgage owner takes a loss. That's not to say the mortgage owner shouldn't take a loss, or that the mortgage owner doesn't deserve to take a loss. The question is whether the mortgage owner can afford to take a loss. If the mortgage owner is some foreigner or a hedge fund, then who cares! But if the mortgage owner is your pension fund, or a bank that is Too Big To Fail and therefore will be bailed out by taxpayers, then it suddenly becomes a different story. The real story, which no one in a position of power wants to discuss, is how we got to the point that our financial system is on the verge of collapse. Who is really responsible? And is there a way out of this mess that gives everyone a fair break without costing the taxpayers an arm and a leg?

RE:Results from Piecemeal Housing Plans Leave Doubts About Effectiveness

not impressed — Wed, 14 May 2008 11:00:00 GMT

The legislation powers are barking up the wrong tree. It comes about as to why people are using their home equity values instead of the non-collateral credit cards that charge intest rate that are considered usury rates in the housing market. So people are purchasing with the less expensive money. Credit banks are charging 10 to 20% on a credit balances as opposed to the 6-9% on a 2nd mortgage or home equity line of credit. If there is to be any regulation it should be on the credit card lenders. They should have a reasonable urury rate maximum much like the mortgage lenders already have in many states. The credit cards should be limited by the solicitations, the amount of credit line per the income of the barrower (limited to

RE:Results from Piecemeal Housing Plans Leave Doubts About Effectiveness

Eugenia Renskoff — Wed, 14 May 2008 11:00:00 GMT

Hello, It is understandable. The mortgage industry does not want regulation. Because if it is regulated, it can abuse again. I wish they'd realize that without customers they can't anywhere. No borrowers= no profits. I was a victim of mortgage fraud in the state of GA and it has cost me more than the financial and pain that comes with foreclosure. There has to be regulation. The greed of the loan officers and others involved in a mortgage loan has to be stopped. ASAP. Eugenia Renskoff

RE:Results from Piecemeal Housing Plans Leave Doubts About Effectiveness

Monopoly-Capitalism-is-NOT-Free-Market-Capitalism! — Tue, 13 May 2008 11:00:00 GMT

The only FAIR solution will be for the banks to cut mortgage loan principal owed on each home back AT LEAST to where home prices were in 1998. Next, mortgage lenders need to make it impossible to get loans on homes priced any higher than twenty percent of the primary wage earner's income. That will serve to throw home prices back down to where they rightfully SHOULD be. As recently as ten years ago, ANY full-time worker with a solid work history and good credit was still able to afford a home of his/her own. For example, in 1998 a full-time retail store clerk could still afford to buy a home in most markets in this country. Even if a slab ranch was the best that retail clerk could afford still, it gave him/her the opportunity for upward economic mobility. Our first-rung workers are more essential to all societies' economies than any other workers so if we want them to continue serving us (making OUR lives easier) by manning those cash registers, or picking those vegetables, or shipping those consumer goods they rightfully should still expect to be able to afford at least small homes of their own just as they had always been able to do in nearly all housing markets in this country before 1999. As early as 2002, VULGAR mortgage lender/appraiser/real estate broker "parasite colonies" here in the Northeast had already conspired to artificially inflate home prices by two hundred percent over the previous year. Even at that early stage, at least a few of us who actually WORK for a living (instead of LYING for five or fewer hours a week for a living as all lazy, non-working, useless-to-society parasitic mortgage lenders, appraisers, and real estate brokers apparently do) knew it was masochistic for people with incomes as low as $50,000 per year to take out $300,000 mortgages. We thought SURELY the idiots would have come to their senses by the end of that year. But NO the mindless cattle just continued to line up at the slaughterhouse FOR AN ADDITIONAL THREE YEARS, until that same herd of $50,000 per year and under income earners were taking out $500,000 mortgages instead!! Wasn't anyone doing the math (literally) besides the bloodsucking parasite de Rothschild and Rockefeller families WHO HAVE THE SYSTEM RIGGED SO THAT *THEY* BENEFIT EITHER WAY WHETHER A COMPANY PROFITS OR TANKS???!!! A new Great Depression can't come soon enough! Only this time there are millions of us here in the U.S. and millions more all over the Western World who have the information needed to take the de Rothschilds and Rockefellers right down with us.