Fannie and Freddie to consider underwriting 125% of loan value (loans, foreclosure, credit)

[70Ford]

And by "consider" it's our governments way of warning the public, "It's coming."

Obama’s Mortgage Refinancing Program May Be Expanded (Update1) - Bloomberg.com

I wonder if I can get a loan from them for my 1970 Ford. I can get a guy to appraise it for 8K. It's only worth 4 (Maybe 6 to a collector). That doesn't seem to really matter to anyone at this point in crazytime.

But! But! I've put twenty grand in it!

I guess unlike say, people in charge of lending stupid amounts of money, I realize that when I put 20 grand in it, I'd never see 20 grand out of it. Which is fine, because I never plan on selling it, and it's a fine car.

Let's just go for the gold and give them 150 percent. What's 25 more percent at this stage? Think it's going to break the bank? The bank is already broken. That's why we're borrowing so much money and being all cool with the Chinese people. We need their money to make our fake economy look real. AARGHHHHHH!!11!!!

[Stac2007]

Originally Posted by 70Ford

And by "consider" it's our governments way of warning the public, "It's coming."

Obama’s Mortgage Refinancing Program May Be Expanded (Update1) - Bloomberg.com

I wonder if I can get a loan from them for my 1970 Ford. I can get a guy to appraise it for 8K. It's only worth 4 (Maybe 6 to a collector). That doesn't seem to really matter to anyone at this point in crazytime.

But! But! I've put twenty grand in it!

I guess unlike say, people in charge of lending stupid amounts of money, I realize that when I put 20 grand in it, I'd never see 20 grand out of it. Which is fine, because I never plan on selling it, and it's a fine car.

Let's just go for the gold and give them 150 percent. What's 25 more percent at this stage? Think it's going to break the bank? The bank is already broken. That's why we're borrowing so much money and being all cool with the Chinese people. We need their money to make our fake economy look real. AARGHHHHHH!!11!!!

All I can say it what a stupid idea. Why are we rewarding fools for buying homes they could not afford in the first place?

[HappyTexan]

We're headed right back to square one. They are desperate to get another bubble going, aren't they ?

[Stac2007]

Originally Posted by HappyTexan

We're headed right back to square one. They are desperate to get another bubble going, aren't they ?

That they are Tex. How stupid they really are? Do you believe any one actually thinks this nonsense is going to work?

[user_id]

If the loans are first-mortgages that they already own already, then they are just improving the risk-profile on their loans! So from their point of view it can make good sense to do this.

[treasurekidd]

Why are we rewarding fools for buying homes they could not afford in the first place?

That's an easy one! It's the Democrats rewarding their voters. You can blame Bush and Cheney for this economy all you want, but face it - but it was Barney Frank, Maxine Waters, and all of their Democrat lawmaker cronies that blew up Fannie and Freddie to begin with by forcing them to loan ridiculous amounts of money to people with sub-prime credit (in other words BAD CREDIT) for mortgages they couldn't come close to affording, because for the most part, that's their consituency.

Now, they can't (or won't) make their payments, and so the gov't will force Fannie and Freddie to bend over and give them these people an even better deal. And all of this foolishness is brought to you by our sponsor, the American taxpayer. In other words, you and I. Just one more shining example of why government doesn't belong in business.

[70Ford]

Originally Posted by treasurekidd

That's an easy one! It's the Democrats rewarding their voters. You can blame Bush and Cheney for this economy all you want, but face it - but it was Barney Frank, Maxine Waters, and all of their Democrat lawmaker cronies that blew up Fannie and Freddie to begin with by forcing them to loan ridiculous amounts of money to people with sub-prime credit (in other words BAD CREDIT) for mortgages they couldn't come close to affording, because for the most part, that's their consituency.

Now, they can't (or won't) make their payments, and so the gov't will force Fannie and Freddie to bend over and give them these people an even better deal. And all of this foolishness is brought to you by our sponsor, the American taxpayer. In other words, you and I. Just one more shining example of why government doesn't belong in business.

So, only democrats will get any of the 12.5 billion in imaginary value garauntees? Do you have to show your Democrat stamp when you apply? I didn't see anything about party membership required for this.

[user_id]

Originally Posted by treasurekidd

and all of their Democrat lawmaker cronies that blew up Fannie and Freddie to begin with by forcing them to loan ridiculous amounts of money to people with sub-prime credit (in other words BAD CREDIT)

This is in fact completely false. Fannie and Freddie dealt largely with prime conforming loans. The vast majority of subprime loans were originated by independent companies and funded by private investors and had nothing to do with democrats.

Its amazing to what degree partisans fabricate things...

Originally Posted by treasurekidd

Now, they can't (or won't) make their payments, and so the gov't will force Fannie and Freddie to bend over and give them these people an even better deal.

The refinancing program does not reduce the monthly payment that much, the main point of it is to put people in more stable loans.

[70Ford]

Yeah, but you're embracing the suck. It's still 12.5 billion given with nothing to back it up.

It's called an appraisal because it is supposed to be appraised for what is is worth. Loans are supposed to be made based upon that worth. People are supposed to be able to pay back & afford the loan they asked for. Banks are supposed to do due dilligence. When loans are sold, managers are supposed to verify the integrity of the assets they are selling.

You can't fix a broken clock by breaking it some more.

[texdav]

And the insanity continues in making loans that peopole can't afford. In the first quarter fannie and freddie reported to congress that over 50% of refis where in foreclosure again.I thnik this is just a result of the administration knowing they used the second half of TARP not waht it was supposed to be used for and their so called Toxic asset plan they have promiosed is dead as they can't get anyone in private sectoir to go into business with them after the bank bailout changes ;chrysler and GM haircuts of investors.