Bush wants to turn FHA into a mess too

Damocles said:
It says nothing about lowering the standards. You are now reading things into it that are not there. It simply lowers down payments, and raises the insurance levels. It does not suddenly remove all standards of credit.
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Umm lowering the downpayments and raising the max loan amounts....
 
uscitizen said:
Umm lowering the downpayments and raising the max loan amounts....
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It doesn't raise the loan amounts, only the amounts that they will insure of a loan. It simply modernizes the program. The limits were set when loan amounts were much lower because the pricing was lower.
 
Here are the four points:

1. The President Calls On Congress To Pass Federal Housing Administration (FHA) Modernization Legislation. The President's FHA modernization proposal would lower downpayment requirements, allow FHA to insure bigger loans, and give FHA more pricing flexibility. These reforms would empower FHA to reach more families that need help – first-time homebuyers, minorities, and those with low-to-moderate incomes – and offer more options to homeowners looking to refinance their existing mortgage.


The Administration Will Also Launch A New FHA Initiative Called "FHA-Secure." The President has asked Secretary Jackson to pursue important administrative changes to give FHA the flexibility to help more families stay in their homes during this time of transition in the mortgage market. The FHA-Secure program will help people who have good credit but who have not made all of their payments on time because of rising mortgage payments. For the first time, FHA will be able to offer many of these homeowners an option to refinance their existing mortgage so they can make their payments and keep their homes. FHA will also charge mortgage insurance premiums based on the individual risk of each loan, using traditional underwriting standards, so it can expand access and help even more families.


Since 1934, FHA Has Helped Close To 35 Million People Buy A Home And Stay In Their Home. FHA is a government agency that provides mortgage insurance to borrowers through a network of private sector lenders. It also offers options to homeowners looking to refinance their existing loan. The President's FHA modernization bill was first sent to the Hill in April 2006, and it passed the House last Congress with over 400 votes. The President has once again asked Congress to send him a clean FHA modernization bill as soon as possible so he can sign it into law.
2. The President Calls On Congress To Change A Key Housing Provision Of The Federal Tax Code So It Does Not Punish Families Who Are Forced To Sell Their Homes For Less Than Their Mortgage Is Worth. Current tax law counts cancelled mortgage debt on primary residences as taxable income. For example, if the value of a home declines and $20,000 of the homeowner's loan is forgiven, the tax code treats that $20,000 as taxable income. The President proposes temporary relief to ensure that cancelled mortgage debt on a primary residence is not counted as income.
 
-It seems to me that the first point is the same crap that got us into this mess. But the subprime lenders do have this as a major concern.

- "to help more families stay in their homes during this time of transition in the mortgage market. The FHA-Secure program will help people who have good credit but who have not made all of their payments on time because of rising mortgage payments" Hello? The people facing the real problems DON'T have good credit, that is the whole problem!

- "For example, if the value of a home declines and $20,000 of the homeowner's loan is forgiven, the tax code treats that $20,000 as taxable income. The President proposes temporary relief to ensure that cancelled mortgage debt on a primary residence is not counted as income" This seems helpful.
 
Damocles said:
I'm talking about how just days ago, when the news hit that the government was lowering rates and that there would be help for the companies that made those crappy loans everybody was saying how they only cared about the "companies" and had no "compassion", yet when they directly work towards helping the people they are still somehow evil, even when you get what you want...

I'm talking about the signs of Bush Derangement Syndrome. I know it is a side discussion, but those happen all the time and I tend to enjoy them so long as they relate in some way to the original post.

It is a new theme of mine.

People with Bush Derangement Syndrome:

1. Say Bush wants to close the border because he is "racist", but Bush does not want to close the border and in fact agrees almost wholesale with the Ds on this one and may even be more permissive than they are. When it is pointed out to them they say, "Well, he is responsible for it anyway." And I stand in awe.

2. Say Bush has no compassion on one day because he isn't doing something. But the next day when he does exactly that they say Bush is evil because he is doing what just days ago he was evil for not doing. And I stand in awe.
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I was trying to find out from you what this does to help those people, before you went on your rampage, and then I decided to just go read the whole thing myself, because obviously your mad cow disease is acting up today!
 
Darla said:
-It seems to me that the first point is the same crap that got us into this mess. But the subprime lenders do have this as a major concern.

- "to help more families stay in their homes during this time of transition in the mortgage market. The FHA-Secure program will help people who have good credit but who have not made all of their payments on time because of rising mortgage payments" Hello? The people facing the real problems DON'T have good credit, that is the whole problem!

- "For example, if the value of a home declines and $20,000 of the homeowner's loan is forgiven, the tax code treats that $20,000 as taxable income. The President proposes temporary relief to ensure that cancelled mortgage debt on a primary residence is not counted as income" This seems helpful.
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Read it. It speaks of those with otherwise good credit that have missed a couple payments.

It also changes the rules so that people who have to sell for less than their mortgage and are forgiven an amount of debt do not have to pay taxes as if it were income on that forgiven debt.

There are more than one way that they can help people. There is no way that in every case they can just let people keep the home.
 
Darla said:
I was trying to find out from you what this does to help those people, before you went on your rampage, and then I decided to just go read the whole thing myself, because obviously your mad cow disease is acting up today!
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Yet you asked me what I meant on a post about the derangement syndrome? Come on, it is no "rampage" to answer your question.
 
Damocles said:
Read it. It speaks of those with otherwise good credit that have missed a couple payments.

It also changes the rules so that people who have to sell for less than their mortgage and are forgiven an amount of debt do not have to pay taxes as if it were income on that forgiven debt.

There are more than one way that they can help people. There is no way that in every case they can just let people keep the home.
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Holy shit man. Damo what is the matter with you today? I addressed all of those things, so I guess I must have read it.

Is this because of what Dano said? Is it like if a hetero man is accused of being gay, well a certain kind of insecure hetero man I mean, and then to prove he isn't he starts making very inappropriate, loud, and vulgar passes at women?
 
tinfoil said:
For the first time, FHA will be able to offer many of these homeowners an option to refinance their existing mortgage so they can make their payments and keep their homes.

This is just sick!!
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I thought you were a so called conservative....You support this? Apparently you are not really a conservative just another Bushie.
 
He is feeling alone Darla, Dano threw him under the wheels of the liberal bus....
All alone in a cold hard liberal world......
 
Damocles said:
Oh, I see, it wasn't fast enough for you. That is the new complaint. As I said, it was just days ago that people were complaining that nothing at all was being done, now that something is, they say that they are still "evil" because of 'this'. As I said, it is a larger sign of Bush Derangement Syndrome, when they do what you say they should they are still "evil" because <insert item here>.
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The correct solution, Damo, was to make people dig and fill up 30,000 holes. Then give them the money.
 
Darla said:
Holy shit man. Damo what is the matter with you today? I addressed all of those things, so I guess I must have read it.

Is this because of what Dano said? Is it like if a hetero man is accused of being gay, well a certain kind of insecure hetero man I mean, and then to prove he isn't he starts making very inappropriate, loud, and vulgar passes at women?
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Yeah, that must be it. All of my actions revolve around Dano.

/sarcasm
 
Well, I for one hate Bush and I have been advocating leaving the situation alone and letting the market correct its self. Having the FHA take on more risk and inherently more of the debt of people who can't afford their homes is not the answer I want. If people can prove fraud, fine go after the bankers and brokers that committed the fraud.
 
LadyT said:
Well, I for one hate Bush and I have been advocating leaving the situation alone and letting the market correct its self. Having the FHA take on more risk and inherently more of the debt of people who can't afford their homes is not the answer I want. If people can prove fraud, fine go after the bankers and brokers that committed the fraud.
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Well, this is the solution I would advocate as well. However, this President is not Conservative even though he is Republican and his solutions usually involve the government bailing people out of situations that they put themselves in.
 
Damocles said:
Well, this is the solution I would advocate as well. However, this President is not Conservative even though he is Republican and his solutions usually involve the government bailing people out of situations that they put themselves in.
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He can't do anything right according to you!
 
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