Five Ways for Fannie Mae and the Banks to help the Housing Market

  
 Five Ways for Fannie Mae and the Banks to help the housing market*
 
*without stimulus money
 
Fannie Mae's directive to freeze out home owners for seven years, who bail on their current mortgage, brought tears to the eyes of Arizona home owners with their tender concern for current customers.
 
If Fannie thinks that this mandate will help the housing market and deter current borrowers from bailing, she should get her head out of the clouds or "wherever "she has placed it.
 
Instead of doling out ultimatums, possibly she should consider the following:
 
    1.      Allow current home owners to refinance their homes at today's appraised value utilizing the HVCC, Home Valuation Code of Conduct.  (Or are they just plain chicken to utilize their  own weapon of mass property  value destruction)
 
     2.      Let us refinance at today's market rate.  What good does it do to have awesome rates when we can't lower our payments because of negative equity position?     Think about the money it would bring into the economy if we had a few extra bucks to spend on something other than our house payment.   I could buy wine in a bottle instead of a box.
 
     3.      Bring back the stated income program for high credit score, 20% down, asset-heavy borrowers. Don't punish these potential golden home buyers for Fannie's 100 percent stated income, low credit score programs of past years. (Burger King cashiers making $6,000 a month, Really?)
 
     4.       The banks should keep a sizable share of mortgage loans on their own "shelf" instead of leaning on Fannie Mae or FHA to replenish their coffers.  The Big Boys have billions of dollars in profits.  Invest in communities instead of derivatives.
 
     5.      The Big Boy banks should admit they contributed to the market meltdown instead of placing blame elsewhere. Get booked on Conan, write a memoir and start making amends by giving away a few billion dollars to home owners by giving incentives to those that make their payments on time.   For instance, give cash back at the end of the year or bonus miles.  (Yes, I know mortgages are not credit cards, but if Southwest can do it why can't they?)
 
The depressed housing market's layers are deep and far reaching.   It effects all corners of our economy.   But until there is an intervention other than from the government, an entry position at Burger King may start looking pretty darn good.  (I have dibs on the fryer)