I confess that I didn’t watch the State of the Union address last night. I don’t even like baloney in my sandwiches– I can’t take it in large quantities. I did however, read the summaries this morning, particularly the housing proposals. This is the one that stood out to me:
Obama proposed that “every responsible homeowner” be able to refinance. The existing refinancing program (HARP) lets borrowers who are current on their mortgages refinance even if they’re way underwater — but only if their loans are guaranteed by Fannie Mae or Freddie Mac. Obama’s proposal would extend refinancing to borrowers who are current but whose loans AREN’T guaranteed by Fannie or Freddie – which the New York Times reports could be two or three million borrowers. It sounds like Obama will ask Congress to let the Federal Housing Administration (FHA) guarantee refinancings by underwater borrowers and charge big banks a fee to cover the costs. If Congress is involved and banks are asked to pay … well, let’s just say it’s not a done deal. Obama doesn’t always get his way with Congress or with the banks.
I hope Obama doesn’t get his way. That’s a lot of risk and expense for taxpayers, with very little benefit for the public.
There is no “fix” for housing, but the politicians like to make it look like they are on top of it. The rest of us end up paying the price.
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“I hope Obama doesn’t get his way. That’s a lot of risk and expense for taxpayers, with very little benefit for the public.”
I agree, its not good for everyone and let us hope for a better economy this 2012.
I cannot believe that something like this can happen in the united states of america. We now live in a nation where the type of type of financial shenanigans occuring on a daily basis would only be thought of as happening in third world countries maybe south america. But now their happening here. I don”t believe that we are seeing so much of a big increase in the financial shenanigans today but less enforcment of violations of securities laws by the SEC. I can remember back in the nineteen eighities when almost two thirds of all the savings and loans were taken over by the FDIC the arm of the federal government that is suppose to regulate banks and other financial institutions. Their were thousands of persons charged with all sorts of crimes during and after the savings and loan debacle. I cannot believe that not anyone on wall street has been charged with any sort of crime whatsoever after the financial crisis of two thousand eight and two thousand nine that almost brought down the whole financial system.