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Thread: Obama seeks to aid 9 million homeowners

  1. #51
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    Re: Obama seeks to aid 9 million homeowners

    Since most of the problem mortgages involve people unable to make their payments, it can be safely assumed that the vast majority of them put down less than 20% down payment when they bought them.

    I think a better way to help these people without destabilizing the market and costing the taxpayers a fortune, would be for the government to take over the PMI insurance business and drop the premiums for everybody's mortgage. This would immediately drop house payments from $100 to $400 per month. The risk would be less than the Feds are assuming with this program and would keep most of the people in their houses.

    The other side of the fix would be to convert the ARM mortgages to fixed rate loans. I think these two corrections would stop the bleeding without a lot of risk on anyone's part.

    • "The America Republic will endure until the day Congress discovers that it can bribe the public with the public's money." -- Alexis de Tocqueville





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    Re: Obama seeks to aid 9 million homeowners

    Quote Originally Posted by zimmer View Post
    when the rules of the game are not clear... why play against the government?
    Buying gold is betting against the government.
    It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.
    "Wealth of Nations," Book V, Chapter II, Part II, Article I, pg.911

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    Re: Obama seeks to aid 9 million homeowners

    Quote Originally Posted by Gill View Post
    The other side of the fix would be to convert the ARM mortgages to fixed rate loans. I think these two corrections would stop the bleeding without a lot of risk on anyone's part.
    The $700 billion question is how? It is a breach of contract to do so, and it would require quite an extensive looking glass to actually identify the notes, as they are financially engineered.
    It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.
    "Wealth of Nations," Book V, Chapter II, Part II, Article I, pg.911

  4. #54
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    Re: Obama seeks to aid 9 million homeowners

    Quote Originally Posted by Goldenboy219 View Post
    The $700 billion question is how? It is a breach of contract to do so, and it would require quite an extensive looking glass to actually identify the notes, as they are financially engineered.
    It would have to be up to the mortgage companies. I think that they should be required to offer refinance packages to fixed rates, but not required to actually convert the loans if the borrower can't possibly make the payments. There would have to be some set guidelines for the mortgage companies to follow.

    Obama already wants bankruptcy judges to be allowed to alter mortgage terms, so this would be better than that scenario.

    • "The America Republic will endure until the day Congress discovers that it can bribe the public with the public's money." -- Alexis de Tocqueville





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    Re: Obama seeks to aid 9 million homeowners

    Quote Originally Posted by Gill View Post
    It would have to be up to the mortgage companies. I think that they should be required to offer refinance packages to fixed rates, but not required to actually convert the loans if the borrower can't possibly make the payments. There would have to be some set guidelines for the mortgage companies to follow.

    Obama already wants bankruptcy judges to be allowed to alter mortgage terms, so this would be better than that scenario.
    The way these mortgages are bundled, repackaged etc... it would take quite a bit of time to unravel to the extent needed. Bits of pieces of a mortgage (time preferences) have been bought, sold, and bundled. I cannot even describe in words they ways in which they are orchestrated, nor can i understand its entirety. It would take a super math guy, such as Onioneater, to put forth due diligence in explaining the possibilities and the way/why/when time preferences are administered.

    It is a bit more complicated than just sitting down with the original writers/underwriters and readjusting the rates. Bits and pieces are owned of individual mortgages like stocks, so potentially 10 investment entities can own an entire note.

    Obama's plan undercuts the de-tangling process. The question is, does it set the stage for something worse to come?
    It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.
    "Wealth of Nations," Book V, Chapter II, Part II, Article I, pg.911

  6. #56
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    Re: Obama seeks to aid 9 million homeowners

    Quote Originally Posted by WillRockwell View Post
    If the value of a home is decreased to reflect its real market price, how is it being artificially inflated? Do you even try to understand these issues?
    Reread the article, reread my comment, and try again.

    The "value" of the home is whatever the market will bear, not what some idiot willingly entered into a mortgage for. According to the secretary of HUD, this proposal will increase the market value of the average house by $6k. That inflation in value is a direct result of government funding. How is that not artificial inflation of value?
    People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.

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    Re: Obama seeks to aid 9 million homeowners

    Quote Originally Posted by Goldenboy219 View Post
    The way these mortgages are bundled, repackaged etc... it would take quite a bit of time to unravel to the extent needed. Bits of pieces of a mortgage (time preferences) have been bought, sold, and bundled. I cannot even describe in words they ways in which they are orchestrated, nor can i understand its entirety. It would take a super math guy, such as Onioneater, to put forth due diligence in explaining the possibilities and the way/why/when time preferences are administered.

    It is a bit more complicated than just sitting down with the original writers/underwriters and readjusting the rates. Bits and pieces are owned of individual mortgages like stocks, so potentially 10 investment entities can own an entire note.

    Obama's plan undercuts the de-tangling process. The question is, does it set the stage for something worse to come?
    Shouldn't be any more difficult than a normal refinance.

    • "The America Republic will endure until the day Congress discovers that it can bribe the public with the public's money." -- Alexis de Tocqueville





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    Re: Obama seeks to aid 9 million homeowners

    Quote Originally Posted by Gill View Post
    Shouldn't be any more difficult than a normal refinance.
    Refinancing shifts the liability. If i owe $100,000 on my house to bank A, and i refinance with lets say bank B because i will save $1,000 yearly on interest, bank B resolves my debt with bank A, and shifts my liability to bank B.

    Forcing lenders to accept interest, instead of 5%, to 4% is coercion. The money has to come from somewhere to refinance...
    It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.
    "Wealth of Nations," Book V, Chapter II, Part II, Article I, pg.911

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