REALTORS need to protect our reputations by resisting congressional attempts to assign blame for the Mortgage Crisis to everyone but themselves.
Congress has no idea what they are legislating. Rarely have any of them taken even one course in economics or finance, yet they are about to make an $800 billion decision to buy bad loans from their favorite contributors and stick our children and grandchildren with the bill. Politicians are simply not equipped to make these hasty decisions without input from the citizens. They are turning the dollar into a third-world currency and destroying our future.
How much of the latest bail-out money will benefit Middle Eastern oil sheiks, China, and India, who invested in bad mortgage schemes? Plenty!
We are witnessing an unprecedented looting of the treasury reminiscent of looting TV sets in the Watts riots. It was bad enough that the Treasury and Federal Reserve jointly decided to bail out individual companies right and left with no accountability, claiming it would prevent a domino effect. It didn't. Then they wanted $700 billion more, grew it to $850 billion to buy votes, and have no idea where it will stop because they don't really understand the root or extent of the problem, and they refuse to deal with derivatives!
Congress was more worried about a holiday and getting home to campaign, than they were about making a mistake that could totally destroy the economy. Turning nearly a trillion dollars over to the treasury secretary with no review or oversight is suicide -even if he was a saint AND a genius!
Lenders and their investors made bad loans because Congress wanted to buy votes with the lure of universal home ownership. Congress pushed Fanny Mae and Freddy Mac to allow zero-down mortgages where people had no "skin in the game". We Realtors marveled as the biggest lenders stubbornly waited two years for the expected bail-out. We watched dumbfounded as they refused to take prudent steps to mitigate bad loans with "short-sales". But we never imagined Congress would dare stick the taxpayers with all the bad loans.
Irresponsible lenders and their investors should live or die with the consequences of their decisions. Careful lenders who made good loans should reap the benefits of their stewardship. Why are we rewarding the losers by buying their mistakes?
Taxpayers stuck with the bill should at least get to keep their homes. To whom will you sell all the foreclosed inventory when such a large part of the population's credit is ruined? Congress needs to select the least devastating of a bunch of bad choices. Instead of creating millions of empty houses owned by the federal government, and millions of displaced taxpayers, find a solution that rewards people for making payments and stops lenders from foreclosing. This is inherently unfair to those of us who have no mortgage or that pay our debts in full, but it is far less of a step toward government takeover of the housing sector, and far less expensive than buying millions of mortgages and selling the foreclosed homes for pennies on the dollar to congressional cronies.
It goes against all my conservative principles to say this, but wouldn't it be less costly to make all Fanny/Freddy homestead loans interest-free for 3 years and let the free market sort out this mess more intelligently? It would shift the burden to irresponsible investors who bought those loans internationally.
Call or write to every Congressperson and Senator and tell them you will not stand for any more lender bail-outs. Let them know how arrogant lenders have worsened this crisis. Tell them your short-sale stories that prove your point.
Brevard Congressman Tom Feeney makes sense because he follows free-market principles.
He supports legislation that:
- Does not bail out lending institutions at taxpayer expense.
- Requires complete transparency.
- Repeals the Community Reinvestment Act and the National Homeowners Initiative that allowed and encouraged irresponsible zero-down mortgages.
- Privatizes Fannie Mae and Freddie Mac.
Lenders like Coldwell Banker Mortgage corageously resisted pressure from Congress/Fanny/Freddy and refused to make sub-prime loans. They still have money to lend. Why should their irresponsible competitors get bailed out by taxpayers?
Realtors, please write to your Congressman and two Senators or call their offices. Your financial future is at stake!!! Even Feeney needs to hear that Realtors support him so he can take your mandate to Washington.
Bill Clinton concludes this clip acknowledging Democrats resisted Republican attempts to impose standards on Fanny/Freddy. Who is pushing the bail-out? http://www.youtube.com/watch?v=_MGT_cSi7Rs
Richard Webb
4Brevard Relocations
Merritt Island
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