Home > Blogs > Fred Chamberlin > Fred's FHA Mortgage and Conventional Real Estate Loan Blog

Housing and Economic Recovery Act of 2008

By Fred Chamberlin

Mortgage and Lending with Guild Mortgage Co - Oak Harbor WA

July 28, 2008 09:29 AM

Wow, I have seen a lot of blogs about this new legislation. I believe that the President is due to sign it by midweek and it will take care of all of our problems. No more foreclosures. No more sub prime loans with nasty prepayment penalties and rate adjustments. No more dishonesty in the industry.

Yeh, right! If you are interested, the bill (according to the copy I found) is 537 pages long and is written in normal Washington-speak. And, there are pages after pages outlining what will be done by this agency or that agency and how we are stopping foreclosures but making money for the government at the same time.

The one thing I haven't seen posts about, and I might have missed them, is the new government agency created by this bill. "There is established the Federal Housing Finance Agency, which shall be an independent agency of the Federal Government." I guess it has always amazed me that no matter what the economy, the Federal Government is always in a growth spurt. This one gives the new agency "Authority over Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Office of Finance."

The new director of this new "Agency" will have a five year term unless removed for "cause." Then, of course, there will be a Deputy Director, under director, second under director, secretary to the director, secretary to the deputy director, assistant to the director, assistant to the assistant, et. al. OK, maybe I went a little overboard, but we all know how government agencies grow. Naturally, the director will be expected to testify before Congress, more than likely even before he knows anything. I can just imagine the confirmation hearings for this one.

Regulations were partly to blame for getting us into this mess. If it wasn't for the government oversight requiring loans be made to people that couldn't afford them, how much better off would we be now. This bill actually increases the requirement to lend to "classes" of people. Sometimes, I get really fed up with our Fed. Well, enjoy the ride, I am sure it will be interesting.

Comments(9)

Comment

Show All Comments

Sort:

Eric Frederick

Eric at Eagle Nationwide Mortgage Co. - Phoenix, AZ

You are spot on. Many people have not commented on this, and I believe this agency will simply lend another level of bureaucracy (along with its rules, regulations, etc which may or may not be grounded in reality).

Jul 28, 2008 09:46 AM

Kim White LeBlanc

Keller Williams Las Vegas Realty - Las Vegas, NV

I totally agree. The comment above I agree with completely. Thank you so much for your insight on this new piece of legislature. - Kim White

Jul 28, 2008 10:04 AM

Matt Heaton

Timu Corp - CEO, ActiveRain - Co-founder - Bothell, WA

Do I sense a bit of sarcasm in that first sentance? :) I think the bail out bill is an aweful piece of legislation that will do ten times the harm as good. Written by the banks, for the banks...

Jul 28, 2008 10:07 AM

Fred Chamberlin

Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA

Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Eagle - Thanks for your comment. Just remember Lie #1, "I'm from the Government and I'm here to help you!"

Kim - There is so much here that it is impossible to even begin to explain it all in one blog. Thanks for your comment.

Matt - Sarcasm? Me? Nothing could be further from the truth....yeh, right! The one thing I have noticed is an increase in humor. I believe that the worse it gets, the more humor is generated in the country. That has got to be one of our greatest assets. Awful bill, I agree. Hold on because it is just starting, I think.

Jul 28, 2008 10:48 AM

Mike Saunders

Retired - Athens, GA

Fred - I guess that there aren't enough redundant positions in the federal government yet, perhaps in another few years?

Jul 28, 2008 10:55 AM

Vickie McCartney

Maverick Realty - Owensboro, KY

Broker, Real Estate Agent Owensboro KY

Fred~ You hit the nail on the head! Just what we need- another government entity- and it is OUR tax dollars funding this mess as usual. They can't fix it! It is simple- Don't lend money to those that can't pay it back!

Your quote is perfect......"If it wasn't for the government oversight requiring loans be made to people that couldn't afford them, how much better off would we be now. This bill actually increases the requirement to lend to "classes" of people. Sometimes, I get really fed up with our Fed. Well, enjoy the ride, I am sure it will be interesting." Let's just see what happens....

Jul 29, 2008 12:36 AM

Mike - The great thing about government is that there is always redundancy. I guess that is why we have both the Forest Service and the Bureau of Land Management in the lumber business. Why should we have one doing the work of one when we can have two.

Vickie - You are right. We wouldn't be in this problem if we hadn't loaned money to those that couldn't pay. GREED. Corporate, individual and government are to blame for where we are. Regulation and bureaucrats will not fix it.

Thanks for your comments.

Jul 29, 2008 02:48 AM

Karen Cooper

Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL - The Villages, FL

Helping Homeowners w/Home Loans in 27 US States

Fred - Pretty amazing, these "solutions", eh? I'm still wondering how we are going to pay for all of this...

Aug 01, 2008 04:14 AM

Karen - We will simply pay for it the same way we pay for everything else, we will write a check for it. It is interesting, if you or I wrote a check and had no money, we would be charged with a crime, if the government does it, business as usual.

Aug 01, 2008 04:30 AM

Housing and Economic Recovery Act of 2008

Comments(9)

Fred Chamberlin

Real Estate Resources

Recent Posts

Additional Information