New Mortgage "Fix" In The Works...

[Damocles]

http://www.nytimes.com/2012/02/09/b...-deal-for-homeowners.html?partner=rss&emc=rss

After months of painstaking talks, government authorities and five of the nation’s biggest banks have agreed to a $26 billion settlement that could provide relief to nearly two million current and former American homeowners harmed by the bursting of the housing bubble, state and federal officials said. It is part of a broad national settlement aimed at halting the housing market’s downward slide and holding the banks accountable for foreclosure abuses.

Despite the billions earmarked in the accord, the aid will help a relatively small portion of the millions of borrowers who are delinquent and facing foreclosure. The success could depend in part on how effectively the program is carried out because earlier efforts by Washington aimed at troubled borrowers helped far fewer than had been expected.

Still, the agreement is the broadest effort yet to help borrowers owing more than their houses are worth, with roughly one million expected to have their mortgage debt reduced by lenders or able to refinance their homes at lower rates. Another 750,000 people who lost their homes to foreclosure from September 2008 to the end of 2011 will receive checks for about $2,000. The aid is to be distributed over three years.

More at link

 

[PostmodernProphet]

hmm.....I didn't walk away from my house......I never skipped a payment......I didn't take out a mortgage that was bigger than my house so I could take a cruise or buy a new car........as a reward, I get to pay more taxes to give $2k to everyone that fucked up........

and people wonder why I don't vote for liberals.....

 

[icedancer2theend]

This is inanity at its worst. 2k to be distributed over 3 years to people who have already moved on- and who no longer are strapped with housing payments they could not afford. This expense to be passed on to tax payers forever. I am with PMP-

 

[Phyllis Diller]

hmm.....I didn't walk away from my house......I never skipped a payment......I didn't take out a mortgage that was bigger than my house so I could take a cruise or buy a new car........as a reward, I get to pay more taxes to give $2k to everyone that fucked up........

and people wonder why I don't vote for liberals.....

YEah, we really need to privatize the banking system.

 

[Rune]

This is inanity at its worst. 2k to be distributed over 3 years to people who have already moved on- and who no longer are strapped with housing payments they could not afford. This expense to be passed on to tax payers forever. I am with PMP-

hmm.....I didn't walk away from my house......I never skipped a payment......I didn't take out a mortgage that was bigger than my house so I could take a cruise or buy a new car........as a reward, I get to pay more taxes to give $2k to everyone that fucked up........

and people wonder why I don't vote for liberals.....

Where the fuck did you two get the idea that the taxpayers are the ones on the hook for this "settlement"?
Did I read the same article?

 

[Cancel 2016.11]

The business community, at least here on LI, is very excited about this.

I have talked to people (all republicans btw) who own businesses who believe this is going to jump start everything here on LI. There's a lot of excitement about this. Obviously, I really hope they are right!

But anyway, back to your regularly scheduled hillbilly broadcast...

 

[Bonestorm]

The business community, at least here on LI, is very excited about this.

I have talked to people (all republicans btw) who own businesses who believe this is going to jump start everything here on LI. There's a lot of excitement about this.

But anyway, back to your regularly scheduled hillbilly broadcast...

Who cares about a housing market recovery? Banks that perpetrated widespread fraud shouldn't have to pay anything to anyone and people who owe more than their home is worth should be forever saddled with the debt because it will make PMP and ID feel better about the fact that they didn't happen to purchase a house at the height of the market. Or something.

 

[Bonestorm]

And by the way, this isn't a "mortgage fix." It's a fraud settlement.

 

[Cancel 2016.11]

Who cares about a housing market recovery? Banks that perpetrated widespread fraud shouldn't have to pay anything to anyone and people who owe more than their home is worth should be forever saddled with the debt because it will make PMP and ID feel better about the fact that they didn't happen to purchase a house at the height of the market. Or something.

It's amazing isn't it? It's almost as if people have no idea how the housing market affects business in general. Real estate companies, lawyers, title agencies, mortgage companies, I even know a woman who owns a very large headhunting firm (she specializes in the finance industry), all very excited about this. When they start making a lot of money, we all make money. Period.

Plus, it goes without saying, that will create jobs. Sometimes I read posts here and I wonder, but what planet do these people live on?

 

[Cancel 2018. 3]

This is inanity at its worst. 2k to be distributed over 3 years to people who have already moved on- and who no longer are strapped with housing payments they could not afford. This expense to be passed on to tax payers forever. I am with PMP-

the way i read it, the money is coming from the banks, not the taxpayers....

 

[Cancel 2016.2]

What they should do...

Reduction program...

Banks provide a reduction in loan amount, refi at current lower rates in exchange the home owner agrees that in the future if they sell the property for more than the loan amount the bank recoups the amount it dropped the loan prior to the homeowner gaining any equity.

 

[Cancel 2016.2]

It's amazing isn't it? It's almost as if people have no idea how the housing market affects business in general. Real estate companies, lawyers, title agencies, mortgage companies, I even know a woman who owns a very large headhunting firm (she specializes in the finance industry), all very excited about this. When they start making a lot of money, we all make money. Period.

Plus, it goes without saying, that will create jobs. Sometimes I read posts here and I wonder, but what planet do these people live on?

What's really amazing is that people like Dung call it a 'fraud settlement'. There was every bit as much fraud from the consumer as there was from lenders. People not forced to verify income lied about what they made. While I am sure there were some cases where the banks (more likely pure mortgage lenders rather than banks) talked people into more than they could afford, I would be willing to bet the vast majority was due to people taking on more because credit was easy and they thought the housing prices would keep going up forever and ever.

That said, I should not be surprised Dung holds this view. He doesn't believe in personal responsibility. Plus, 'the government will provide everything for everyone since we can just keep spending as much as we want forever and ever. Fuck the grandkids, I don't want any pain'... right Dung? Isn't that how it works in your fantasy world?

 

[Cancel 2016.11]

What's really amazing is that people like Dung call it a 'fraud settlement'. There was every bit as much fraud from the consumer as there was from lenders. People not forced to verify income lied about what they made. While I am sure there were some cases where the banks (more likely pure mortgage lenders rather than banks) talked people into more than they could afford, I would be willing to bet the vast majority was due to people taking on more because credit was easy and they thought the housing prices would keep going up forever and ever.

That said, I should not be surprised Dung holds this view. He doesn't believe in personal responsibility. Plus, 'the government will provide everything for everyone since we can just keep spending as much as we want forever and ever. Fuck the grandkids, I don't want any pain'... right Dung? Isn't that how it works in your fantasy world?

I'd be willing to bet the exact opposite, but since this isn't being paid for by the taxpayer as was originally claimed by morons on YOUR side of the aisle, I understand why you are trying to divert attention. DH is factually correct, they were factually incorrect.

 

[Cancel 2016.11]

All I care about is that this ends up being good for business here! If my business owner friends are right, yippee!

I know some are rooting against an economic surge for political reasons, but small business owners don't fall into that pathetic category.

 

[PostmodernProphet]

YEah, we really need to privatize the banking system.

we need to privatize government and fire all the liberals.....

 

[Bonestorm]

What's really amazing is that people like Dung call it a 'fraud settlement'. There was every bit as much fraud from the consumer as there was from lenders. People not forced to verify income lied about what they made. While I am sure there were some cases where the banks (more likely pure mortgage lenders rather than banks) talked people into more than they could afford, I would be willing to bet the vast majority was due to people taking on more because credit was easy and they thought the housing prices would keep going up forever and ever.

The fraud relates to fraudulent foreclosure practices, not fraud in making the loans. And yes, there were people who lied to get loans. Pretending that the lenders didn't know about and encourage the practice is laughable. The banks didn't have to make the loans and, through the standard underwriting procedures, forced potential borrowers to document their income and ability to repay. The banks didn't do that because they didn't care. They were going to hold on to the risk of default. They just bundled up the shit and sold it off in AAA bonds.

That said, I should not be surprised Dung holds this view. He doesn't believe in personal responsibility. Plus, 'the government will provide everything for everyone since we can just keep spending as much as we want forever and ever. Fuck the grandkids, I don't want any pain'... right Dung? Isn't that how it works in your fantasy world?

Your views are intriguing to me and I wish to subscribe to your newsletter.

 

[Bonestorm]

What they should do...

Reduction program...

Banks provide a reduction in loan amount, refi at current lower rates in exchange the home owner agrees that in the future if they sell the property for more than the loan amount the bank recoups the amount it dropped the loan prior to the homeowner gaining any equity.

This is why calling it a "mortgage fix" is stupid. It isn't a mortgage fix, it's a fraud settlement for fraudulent foreclosure practices. If it were a mortgage fix your approach may be, but this isn't a mortgage fix.

 

[PostmodernProphet]

I'd be willing to bet the exact opposite, but since this isn't being paid for by the taxpayer as was originally claimed by morons on YOUR side of the aisle, I understand why you are trying to divert attention. DH is factually correct, they were factually incorrect.

not being paid for by taxpayers?......we gave billions to banks, now we'll have the banks give those billions to people who already benefited by getting 110% mortgages and putting the other 10% in their pockets......next, we'll probably let the banks write those payments off against their taxes, certainly as a deduction, likely as a credit.......meanwhile we're still on the hook for all the unpaid Fannie and Freddi deficiencies.....

 

[Cancel 2016.11]

The fraud relates to fraudulent foreclosure practices, not fraud in making the loans. And yes, there were people who lied to get loans. Pretending that the lenders didn't know about and encourage the practice is laughable. The banks didn't have to make the loans and, through the standard underwriting procedures, forced potential borrowers to document their income and ability to repay. The banks didn't do that because they didn't care. They were going to hold on to the risk of default. They just bundled up the shit and sold it off in AAA bonds.




Your views are intriguing to me and I wish to subscribe to your newsletter.

I admit, i thought it was for fraudulent paperwork on the actual loans. So this is for the fraudulent foreclosure practices. I read about that, especially in florida, and it was so shocking and disgusting that this was going on in america.

Thanks for pointing this out.

I guess we should just "move on" wink wink.

Assholes.

 

[Rune]

What they should do...

Reduction program...

Banks provide a reduction in loan amount, refi at current lower rates in exchange the home owner agrees that in the future if they sell the property for more than the loan amount the bank recoups the amount it dropped the loan prior to the homeowner gaining any equity.

Close, but no; the bank and the homeowner should split the equity gain.
Otherwise there is little incentive to maintain or improve the property or make a dilligent effort to sell for a good price.