Chapter 1 - WHAT'S THE MATTER WITH THE MORTGAGE MARKET? - 8/22/2007
THE TROUBLE STARTS WITH REAL ESTATE AGENTS
Chapter 2 - WHO'S RESPONSIBLE FOR OVERSIGHT OF THE MORTGAGE MARKET? - 8/26/2007
THE TROUBLE IS "MONITORED" BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE
THE FEDERAL RESERVE FAILED IN IT'S MISSION TO SUPERVISE FINANCIAL INSTITUTIONS
Chapter 3 - THE PRESIDENT, THE FED AND THE PUNDANTS HAVE IT ALL WRONG, FOR A CHANGE
SO THE PRESIDENT IS GOING TO PROPOSE SOME HELP FOR FOLKS FACING FORECLOSURE. . . .
SO THE FED MAY REDUCE THE DISCOUNT RATE. . . .
SO WHAT??
The stock market is UP on rumors that President Bush will offer help for sub-prime home borrowers in trouble with their mortgage. Thanks a lot. What about the home borrowers who are not YET in trouble with their mortgage??
The rumor is that the help offered will be for low to moderate priced home owners. Thanks a lot. N E W S F L A S H The FHA has always been there with WONDERFUL programs for low to moderate priced home owners.
The President is planning to put Alphonso Johnson, Secretary of HUD, to work on these matters. Thanks a lot. Where have you been Mr. Johnson?? Do you not have a job description that includes offering mortgage programs for low to moderate income buyers?? And, by the way, since the FHA insured mortgage does not have any income limits, why is the focus on low and moderate income borrowers? By the way, Mr. Johnson, one of the reasons low to moderate home borrowers went to sub-prime, 100% loans and other instruments that got them into trouble is because the FHA loans require a 3% down payment. I HAVEN'T HEARD ANYTHING FROM YOU about trying to get that changed.
The President is planning to have Mr. Johnson work with Treasury Secretary Paulson to "work together on an initiative to help troubled mortgage holders obtain services and products needed to prevent default" Thanks a lot. What's the matter guys. Don't you folks talk? When was the last Cabinet meeting? Hey, I'll pay for lunch to get you guys together.
The Federal Reserve has been working hard to provide liquidity for mortgage companies and lenders. Thanks a lot. Who's offering liquidity for consumers?? I bet what has gotten the attention of the Fed and the President now is that with fear in the market, folks will stop shopping at Wal-Mart and stop buying cars. The Fed and the Executive don't get worried until that sacred cow retail spending is in jeopardy.
The President "will discuss his willingness to work with Congress in a bipartisan way to reform the tax code to help troubled borrowers rework their loans." HA! ! ! WHAT CAVE DO YOU LIVE IN, MR. PRESIDENT??? The Congress is going to give you NOTHING. The Congress has to be shoved in a corner under spotlights to give you guns to protect our national security. Do you believe that they care if a few home owners lose their homes. The Congress works hard at one thing, embarrassing the President of the United States.
I hear, Mr. President that you plan to offer a tax break for folks who have a short sale or foreclosure and the deficiency balance would be considered income to the borrower. Excuse me, Mr. President, but if I had to think of the more obscure methods of relief, this would probably be up there at the top of the list.
I hear also, Mr. President that you "plan to discuss the need for rigorous enforcement of predatory lending laws"
Well, all I can say to that is - - IT'S ABOUT TIME. By the way. You don't need any new laws for that, or money, or cozy get togethers between Mr. Johnson and Mr. Paulson,
UPDATE: NOTE FOLLOWING THE PRESIDENT'S SPEECH. I DON'T BELIEVE HE HAS THE FOGGIEST IDEA ABOUT THAT OF WHICH HE SPOKE.
WE NEED SOME PERP-WALKS. What would it do for confidence if we had a few "PERP-WALKS"? The laws are there. Mortgage fraud is serious business and it's been rampant and the laws have been unenforced for several years. Surely the law enforcement folks can do something more helpful than arrest Congressmen looking for sex.
GET SOME SEX IN THE STORY. Wait a minute! ! ! Isn't that when Kenneth Staff finally got off the dime and filed something about President Clinton?? Of course. That's what we need to get mortgage industry enforcement, catch a borrower and a loan officer having sex and the law will step right in. Arresting a few loan folks for mortgage fraud isn't sexy enough.
Courtesy: Homefinders.com
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