Leftist GWB to freeze Mortage Rates?

[Buckeye_Nut]

GWB has turned into a leftist.....whoda thunk?

It seems that President "Amnesty" now has plans for government intervention where it has no business getting involved.
http://news.yahoo.com/s/ap/20071206/ap_on_bi_ge/mortgage_crisis

The Republican who becomes our new president in 2009 will hopefully reverse GWBs ongoing leftist agenda instituted at the tail end of his presidency.

 

[Audioholics]

Simply by observation, GWB is and has been pretty much a social conservative (his values) and a fiscal liberal (monetary policies).

 

[stratman]

Clint is right. Unfortunately if this plan goes through, we the taxpayers will have to foot the bill for all the irresponsible banks, mortgage brokers, mortgage lenders and the morons that got into mortgages that they can't afford so they won't lose "their" homes. I say let the market weed out the bad loans, though the banks will suffer for it, they made their beds let them lie on them. Investigate mortgage brokers and lenders, there was a lot of shady stuff going on in the mortgage business around Miami for the last couple of years, politicians, builders, you name it. Nothing will happen, this too will soon be forgotten. All will go back to business as usual and we, again, will be taxed to death. I don't understand, what's happened to us? For TEA our forefathers went to war over unfair taxation, we are now taxed beyond comprehension and we take it like a bunch of limp-wristed cabaret dancers, what the hell is going on in this country! When are we going to realize it's not Republican versus Democrat! It's the common man against the system which is comprised of "Democrats" and "Republicans" so help me I can just see our forefathers turning in their graves! We've become so apathetic that we are willing to be raked over the coals as long as our boat isn't rocked, it's easier to "not bother" than to start sending e-mails to your reps, hey they know that we're apathetic, Washington DC has become a business, politics is a business and they play to a voter's fears to further their agendas, they're all in the same bed together, hasn't anyone noticed nothing changes year after year? What is glaring in our fast decaying country is the disappearance of the middle-class and guess what when they're gone, this country will go like Rome did. Then it'll be too late. No more HT, Audioholics, who is going to buy "entertainment," who will able to afford it? I think we as a community should wake up , look at the writing on the wall, it's not about Bush, Clinton or any other professional "politician" it's about us taking fiscal responsibility for ourselves and our community.

 

[Rock&Roll Ninja]

This whole government subsidized mortgage thing pisses me off. If I buy a Porsche 911 Carrera 4 and don't want to pay 36 monthly payments of $2500 the government doesn't step-in and give me the car for $199 a month.

These deadbeat house buyers should be lined-up and DELETED before being set on fire and extinguished with wet chains on the way to their court-mandated 14 hour shift at a salt mine six days a week with no healthcare.

But I do feel slightly better knowing they'll have credit cards with 47.9% interest rates for the rest of their horrible Godless lives.

 

[MUDSHARK]

Tough crowd tonight.

 

[Joe Schmoe]

GWB has turned into a leftist.....whoda thunk?

Suuure. And the pope has turned atheist.

 

[Buckeye_Nut]

Simply by observation, GWB is and has been pretty much a social conservative (his values) and a fiscal liberal (monetary policies).

Yea...agreed.

....except his pro-illegal amnesty position cuts against the value grain.

Speaking of grain........the economic idiocy surrounding GWB's corn-brained ethanol positions are reeking havoc throughout the commodities markets. His ethanol position is so stupid, even a democrat can do it.

....stratmans participation inspired that last line.
HEH

 

[annunaki]

As a member of the mortgage industry I would like to speak up a bit here. There is a lot of blame being laid at the feet of the people who did the loans, the banks who funded them and got the people into homes they wanted etc.

There is essentially no blame being put on the people with whom it lies most. The person who got the mortgage. Everything is disclosed in the mortgage business. People know they are getting adjustable rate mortgages when they get one because you have to sign an "Adjustable Rate Mortgage" disclosure. There are no "teaser rates" because if it is a temporary rate, again, it is disclosed. It is the utter lack of responsiblity of the homeowner to ignore all of this at the closing table or when they sign the initial application to begin with.

I understand there are some bad apples out there and it makes the many of us who are ethical look bad. However, there is no one saying that the reason for these forclosures and such is because of the lack of responsibility by the homeowner. One must look at why they are losing homes.

Most of the "subprime" mortgages that were done were for people with marginal credit. When they took out the mortgage on the home they typically got a 2yr. ARM. Meaning the rate is fixed for 2 yrs. and then adjusts initally (usually upward) in the neighborhood of 2% and then 1% per yr. after for a total cap of 6%. Any etical mortgage broker, branker or loan officer states to these borrowers specifically that this is a stop gap procedure. IF all the payments are made on time for 1yr. to 2yrs. there should be no problem refinancing into a 30yr. fixed rate mortgage at a reasonable rate through FHA or other avenues. This is where the issue starts. Many of those in forclosure now did not hold up their end of the deal. They simply did not pay their mortgage on time. I have refinanced many people into fixed rate options saving them sometimes hundreds of dollars each month becasue they fulfilled their end of the deal.

The people who are making a fuss are the dead beats who just don't pay bills, period. They are always the victim of the "man" or the person with money.

The reason these people got homes was because of lenders allowing guidelines to become so lax. They were doing this because they had so much call for it on the secondary market from greedy hedge fund managers and other investors. Mortgage Brokers, Bankers and loan officers were just using what was available to them. However, they still have to use their judgment as to whether or not someone really deserves a home. This is where their ethics came into question.

Now above all of that is the would be mortgage holder's common sense. They should be asking themselves, "Can I afford this every month for the next 30yrs.?".

Many of them simply thought with emotion and no common sense. Just becasue a person taped some wings to your arms, said you could fly and got you excited does not mean you should go jump off the nearest cliff.

Bailing out irresponsible people just breeds more irresponsibility. They made the beds, sleep in them. They deserve the punishment for not being responsible. That goes for the lenders as well.

 

[stratman]

As a member of the mortgage industry I would like to speak up a bit here. There is a lot of blame being laid at the feet of the people who did the loans, the banks who funded them and got the people into homes they wanted etc.

There is essentially no blame being put on the people with whom it lies most. The person who got the mortgage. Everything is disclosed in the mortgage business. People know they are getting adjustable rate mortgages when they get one because you have to sign an "Adjustable Rate Mortgage" disclosure. There are no "teaser rates" because if it is a temporary rate, again, it is disclosed. It is the utter lack of responsibility of the homeowner to ignore all of this at the closing table or when they sign the initial application to begin with.

I understand there are some bad apples out there and it makes the many of us who are ethical look bad. However, there is no one saying that the reason for these foreclosures and such is because of the lack of responsibility by the homeowner. One must look at why they are losing homes.

Most of the "subprime" mortgages that were done were for people with marginal credit. When they took out the mortgage on the home they typically got a 2yr. ARM. Meaning the rate is fixed for 2 yrs. and then adjusts initally (usually upward) in the neighborhood of 2% and then 1% per yr. after for a total cap of 6%. Any etical mortgage broker, branker or loan officer states to these borrowers specifically that this is a stop gap procedure. IF all the payments are made on time for 1yr. to 2yrs. there should be no problem refinancing into a 30yr. fixed rate mortgage at a reasonable rate through FHA or other avenues. This is where the issue starts. Many of those in forclosure now did not hold up their end of the deal. They simply did not pay their mortgage on time. I have refinanced many people into fixed rate options saving them sometimes hundreds of dollars each month becasue they fulfilled their end of the deal.

The people who are making a fuss are the dead beats who just don't pay bills, period. They are always the victim of the "man" or the person with money.

The reason these people got homes was because of lenders allowing guidelines to become so lax. They were doing this because they had so much call for it on the secondary market from greedy hedge fund managers and other investors. Mortgage Brokers, Bankers and loan officers were just using what was available to them. However, they still have to use their judgment as to whether or not someone really deserves a home. This is where their ethics came into question.

Now above all of that is the would be mortgage holder's common sense. They should be asking themselves, "Can I afford this every month for the next 30yrs.?".

Many of them simply thought with emotion and no common sense. Just becasue a person taped some wings to your arms, said you could fly and got you excited does not mean you should go jump off the nearest cliff.

Bailing out irresponsible people just breeds more irresponsibility. They made the beds, sleep in them. They deserve the punishment for not being responsible. That goes for the lenders as well.

Hey A,

I understand what you're saying, but on the other side of the coin banks were not doing due diligence in verifying applicant income, credit history and so forth, mortgage brokers (that a lot of times work in various shades of Grey, when processing loans) and a large bulk of buyers that really were confused as to what they were getting themselves into fueled the fire and the meltdown, I know ignorance doesn't justify it, but when you have a broker telling you it can be done a bank that looks the other way, well then I spread the blame, also this debacle has spawned the 40-50 year mortgage which basically means you'll never own your home. I don't know the situation in Wisconsin, but in South Florida and Miami in particular its an utter disaster, that if it wasn't so sad it would be hilarious. My neighborhood is strewn with FOR SALE signs all over, a sad indicator of families about to lose their homes. Another curious angle to this circus is that a great majority of those affected are minorities, remember a famous large bank advertising they'll give you a credit card without a social security number? Greed threw due diligence and protocols out the window, I wonder how many banks will be in bankruptcy when this mess clears up.

 

[darien87]

GWB has turned into a leftist.....whoda thunk?



The DEOMCRAT who becomes our new president in 2009 will hopefully reverse GWBs ongoing leftist agenda instituted at the tail end of his presidency.

Fixed it for ya.

 

[Mort Corey]

This "bailout" stuff is just more government smoke and mirrors. Government, through policies enacted by the Federal Reserve, create a problem and then you're supposed to believe they'll "fix" it with some feel good, good time charlie, rhetoric.

Getting close to lunch time here....gonna go out and get mine cause I know it'll be free today.

Mort

 

[Joe Schmoe]

Fixed it for ya.

Hopefully, the next president Clinton will reverse all of the shrub's idiotic policies.

 

[STRONGBADF1]

GWB has turned into a leftist.....whoda thunk?

It seems that President "Amnesty" now has plans for government intervention where it has no business getting involved.
http://news.yahoo.com/s/ap/20071206/ap_on_bi_ge/mortgage_crisis

The best person for the job republican/democrat or what ever as long as the name isn't Clinton who becomes our new president in 2009 will hopefully reverse GWBs ongoing leftist agenda instituted at the tail end of his presidency.

There I fixed it for both of you!!!

Hillary scares the death out of me...

SBF1

 

[annunaki]

Hey A,

I understand what you're saying, but on the other side of the coin banks were not doing due diligence in verifying applicant income, credit history and so forth, mortgage brokers (that a lot of times work in various shades of Grey, when processing loans) and a large bulk of buyers that really were confused as to what they were getting themselves into fueled the fire and the meltdown, I know ignorance doesn't justify it, but when you have a broker telling you it can be done a bank that looks the other way, well then I spread the blame, also this debacle has spawned the 40-50 year mortgage which basically means you'll never own your home. I don't know the situation in Wisconsin, but in South Florida and Miami in particular its an utter disaster, that if it wasn't so sad it would be hilarious. My neighborhood is strewn with FOR SALE signs all over, a sad indicator of families about to lose their homes. Another curious angle to this circus is that a great majority of those affected are minorities, remember a famous large bank advertising they'll give you a credit card without a social security number? Greed threw due diligence and protocols out the window, I wonder how many banks will be in bankruptcy when this mess clears up.

I am not saying that there is not some blame on the originators, it is just that ignorant people out there did not look at facts with an ounce of objection.

Stated income and asset loans are/were for self employed individuals who, through tax writeoffs, do not show much income on paper. These types of loans gave them an opportunity to purchase a home.

Where these became a problem was with some of the more unscrupulous lenders who (New Century and a few others) offered w-2 individuals (people with jobs who get paid by an employer with taxes removed from the check) stated options for loans. Many of us on the ethical side of things never agreed with these types of loans and never put anyone into them. How can a person with a W-2 income state their income??? It is plain as day on the W-2!

Fortunately the biggest offenders out there have gone belly up. The bad thing is that there is essentially no subprime market anymore for those who truly qualified and had some bumps in their credit past. These people are finding it very difficult to purchase a home or refinance for a temporary solution to get things corrected.

The media makes it seem like brokers, bankers, loan officers, etc. chose these adjustable rates for the clients when the fact of the matter is they did not qualify for anything but ARM's. Most of the subprime lenders offered 30yr. fixed rate options at the time these people took out mortgages, many of them at about .75% higher than the 2 yr. arm rate. When given the option almost all of them take/took the ARM over the fixed rate because it is lower even though they knew it would rise in the future. Again ignorance is to blame here.

I am not sure where the media comes up with the term "teaser rate" either. ARMs have a fixed rate period of 2, 3, 5, 7, and 10 yrs. usually. After that fixed period the rate adjusts. There is no teasing going on at all. They also make it seem like people who were in subprime loans had the option of getting normal conforming rates on mortgages when it is totally not the case. The worse the credit, the higher the rate (to a degree). The 680+ credit scores are going to end up with the best rates period. A person with a 620 credit score will not get the same rate on a conforming loan as a person with a 700, if the 620 score can get a conforming loan at all. There is more to it than just score but it is the easiest for those not in the industry to identify with.

 

[annunaki]

This plan from Bush does not really help anyone anyway. The freeze is only good for those who have not missed any payments (at the fixed rate of an ARM) on their mortgages. The people who could refinance (paid their bills on time) mostly have already. Those who can't, need to sell their home or foreclosure has started or have been foreclosed upon already.

 

[Tomorrow]

An unspoken issue of the financing cancer being discussed here is its reach into the heart of the economy. Once a mortgage has been signed, it generally gets sold. (Annunaki...fill in and correct me where I'm wrong.) There are thousands of individuals, investment groups, fund (e.g. retirement) management teams, banks, governments, and on and on, that buy mortgages. The original lenders get their cream up-front and the mortgage investors are now getting the curds.

The knuckleheads who bit off more house than they could afford and the (unscrupulous) lenders who signed them are/were the winners. Lenders got their bonuses. Buyers got their nice, cheap homes for a couple of years (that offered more bennies than rentals)...and stabbed the economy with their recklessness.

If nothing is done, politically speaking, and nothing should be IMHO, our economy will be in a well-deserved recession.

 

[MDS]

I am not sure where the media comes up with the term "teaser rate" either. ARMs have a fixed rate period of 2, 3, 5, 7, and 10 yrs. usually. After that fixed period the rate adjusts. There is no teasing going on at all.

The vast majority of consumers (or so it seems) are 'monthly payment consumers'. Many do not understand money or finance at all and when you put a monthly payment they can afford - at the moment - in front of them they go for it. That in a sense is a tease because the focus is solely on the monthly payment and not on the total cost of the home over time.

Nevermind taxes and insurance and maintenance, apparently they don't count. That's one reason I think the guidelines that focus on 28% of gross income as a benchmark for affordability is ridiculous. Gross income is not the money you have to spend and unless you are super lucky and never have any other unexpected expenses (like say my $1700 repair bill for my car) you are treading on very thin ice if you take on a huge mortgage.

 

[Alamar]

The vast majority of consumers (or so it seems) are 'monthly payment consumers'. Many do not understand money or finance at all and when you put a monthly payment they can afford - at the moment - in front of them they go for it. That in a sense is a tease because the focus is solely on the monthly payment and not on the total cost of the home over time.

Nevermind taxes and insurance and maintenance, apparently they don't count. That's one reason I think the guidelines that focus on 28% of gross income as a benchmark for affordability is ridiculous. Gross income is not the money you have to spend and unless you are super lucky and never have any other unexpected expenses (like say my $1700 repair bill for my car) you are treading on very thin ice if you take on a huge mortgage.

I agree in part with your statements. My bank [one of the big ones] was more than willing to give me a loan that would have almost literally buried me in debt. I'm looking at at houses that are at roughly 1/2 of the amount that my bank will let me borrow.

Obviously from the above statement I do blame the lenders for a fair amount of this.

On the other hand I do think that a lot of the blame should go to the Joe & Jane SixPacks that ruin things for the rest of us. The people taking out the loan, IMHO, know exactly what they're doing. They know that they can't afford that fancy home with a proper loan. So do they just lower their expectations to something that matches their budget .... NO!! They go for any fly-by-night loan that will let them get into their "dream" house and they don't care what happens in a few years.

Lastly I'm tired of the government feeling that they need to come in and play nurse-maid all of the time. If people or institutions were dumb then let them suffer the consequences. What other way are we going to get people to stop making stupid decisions if we keep trying to catch them before they fall off the cliff.

P.S. I made some truly stupid decisions before in my life. What did I do though? I found the religion of budget-and-pay-bills-on-time and now I'm in great shape to get a house because I learned the value of patience. If someone came in and rescued me from myself I doubt that I ever would have learned ......

P.P.S: When did personal responsibility become a dirty word?

 

[Rock&Roll Ninja]

Those who can't, need to sell their home or foreclosure has started or have been foreclosed upon already.

Hellhounds! Hellhounds! Bring on the XXXXXXX Hellhounds!

 

[stratman]

Hellhounds! Hellhounds! Bring on the XXXXXX Hellhounds!

Now that just aint natural.