The lack of oversight by congress over wall street(the authors of the exotic loan) turning a 560 credit score into the SIV or sophisticated investment vehicle (rated AAA of course) and after making millions turned the spigot off creating the calamity we're now in or the thinly regulated FNMA & FHLMC now bailed out FNMA FHLMC we see and hear the clamor of the little political feet running toward the nearest camera to fight for the little people to protect and fix whatever it is they are fixing after being asleep at the wheel for over 16 plus years. I think you hear the pitter patter of political feet because like the cockroach they are looking for cover.
It reminds me of the Blair Witch Project and just like the movie congress wanders around in the wilderness without any clue or idea just winging this pretending they have everything under control. It is positively amazing. If you watched any of the hearings over the past year you would realize how much "stupid" there really is in DC and it is SCARY!
Our Congress spewed out comments about stablizing our neighborhoods. Putting heavy emphasis on the FHA Secure Program and how it was to save the day. A program that plays an insignificant role and does not come close to cure the calamity we face.
Hearing after hearing members grandstanding pointing fingers lecturing Countrywide Wells Fargo Wachovia Washington Mutual and others telling them to work with distressed borrowers. Ask any distressed borrower how it went. You can't they moved after their foreclosure.
Lifting the FNMA & FHLMC limits proclaiming it was going to loosen the grip for the jumbo borrower what a joke it didn't it's worse and cost the jumbo borrower more! Total death to that part of the market except for the very top end.
The one thing that was and is working until it sunsets is the Down Payment Assistance Program or the DPA. But Congress killed it.
Take a look below click the link and read. HUD has been part of the problem here too. HUD often forgets why they were created in the first place and that was to assist the lower mid and higher income folks to finance the purchase their home or what is referred to as a part of the American Dream.
"According to an Inman News article published today, Chairman Frank is quoted as saying "The FHA loved the ban on down-payment assistance (but) hated the ban on risk-based pricing," Frank said at Saturday's hearing. "That seemed to me to offer an opportunity. So (HR 6694) will replace both bans with middle ground -- and it will pass the House, I can guarantee you. What you want to do now obviously is talk to your senators. We think it will go through there -- it has the approval now of the Secretary of HUD."
Email your representative. This is the one idea that is working and is the primary reason houses are selling and preventing other homes from getting on the foreclosed list.
Have a great rest of the year and thank you for listening.
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