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The my view of the initial White House proposal. Borrowers that take advantage of it are actually the ones being taken advantage of. Here is the bottom line question - Wouldn't some or even most of these people be better off renting than making monthly payments on a bubble mortgage that is overpriced, despite the hit to their credit profiles from a foreclosure?
Am I wrong? Someone, anyone, please chime in.
According to estimates by the Treasury Department, this plan could stop the slide in home prices due to neighboring foreclosures by up to $6,000 per home.
My plan changes that by removing this restriction on Fannie and Freddie so that they can refinance mortgages they already own or guarantee.
And what this will do is it will allow millions of families stuck with loans at a higher rate to refinance. And the estimated cost to taxpayers would be roughly zero. While Fannie and Freddie would receive less money in payments, this would be balanced out by a reduction in defaults and foreclosures.
http://www.whitehouse.gov/the_press_...rtgage-crisis/
wow $6,000!!!
WTF is the point of this plan?
And check out this nugget in the Treasury fact sheet:
v. Home Price Decline Reserve Payments: To encourage lenders to modify more mortgages and enable more families to keep their homes, the Administration -- together with the FDIC -- has developed an innovative partial guarantee initiative. The insurance fund to be created by the Treasury Department at a size of up to $10 billion will be designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. This initiative provides lenders with the security to undertake more mortgage modifications by assuring that if home price declines are worse than expected, they have reserves to fall back on. Holders of mortgages modified under the program would be provided with an additional insurance payment on each modified loan, linked to declines in the home price index. These payments could be set aside as reserves, providing a partial guarantee in the event that home price declines and therefore losses in cases of default are higher than expected.
http://www.whitehouse.gov/blog/09/02...Id=tb_external
If that is what I think it is, just might lose my mind.
Am I wrong? Someone, anyone, please chime in.
According to estimates by the Treasury Department, this plan could stop the slide in home prices due to neighboring foreclosures by up to $6,000 per home.
My plan changes that by removing this restriction on Fannie and Freddie so that they can refinance mortgages they already own or guarantee.
And what this will do is it will allow millions of families stuck with loans at a higher rate to refinance. And the estimated cost to taxpayers would be roughly zero. While Fannie and Freddie would receive less money in payments, this would be balanced out by a reduction in defaults and foreclosures.
http://www.whitehouse.gov/the_press_...rtgage-crisis/
wow $6,000!!!
WTF is the point of this plan?
And check out this nugget in the Treasury fact sheet:
v. Home Price Decline Reserve Payments: To encourage lenders to modify more mortgages and enable more families to keep their homes, the Administration -- together with the FDIC -- has developed an innovative partial guarantee initiative. The insurance fund to be created by the Treasury Department at a size of up to $10 billion will be designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. This initiative provides lenders with the security to undertake more mortgage modifications by assuring that if home price declines are worse than expected, they have reserves to fall back on. Holders of mortgages modified under the program would be provided with an additional insurance payment on each modified loan, linked to declines in the home price index. These payments could be set aside as reserves, providing a partial guarantee in the event that home price declines and therefore losses in cases of default are higher than expected.
http://www.whitehouse.gov/blog/09/02...Id=tb_external
If that is what I think it is, just might lose my mind.
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