The Ghost of Snapped Shot

Or, welcome to my low-maintenance heck.

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When in a Hole, Keep Digging

Our Federal government will bring about the end of this nation, yet:

NEW YORK (CNNMoney.com) -- Senate Banking Committee leaders said Monday that they have come to a deal on a housing bill that would prevent foreclosures, create affordable housing and revamp oversight of two of the mortgage market's biggest players: Fannie Mae and Freddie Mac.

A major part of the legislation would allow the Federal Housing Administration to insure $300 billion in new loans for at-risk borrowers if lenders agree to write down loan balances below the appraised value of borrowers' homes.

The deal was struck between the top Democrat and Republican on the Banking Committee: Chairman Christopher Dodd, D-Conn., and Ranking Member Richard Shelby, R-Ala.


Federally-underwritten loans for people who haven't proven themselves capable of repaying their debts is nowhere to be found in my copy of the Bill of Rights. I wonder where it is in the copy that the Congress appears to be reading from?

But hey, on the bright side, this means that all of the fraudulent loans that were opened up for illegal aliens are safe and sound, thanks to our Federal tax dollars.

I guess the old American tradition of exporting our local crooks to Washington, D.C. is still alive and well.

  Ye Olde Dominion


Comments:

#1 DMartyr 20-May-2008
Just another increase in the costs of the responsible homeowners...
#2 captainfish 21-May-2008
F**K ME!!

Remember the good old days when Congress did its job and stayed out of the lives of man and just worried about the defense and structure of this nation?

How is this even possible? A loan for a loan that was defaulted on, but only if the bank agrees to take a loss on the original loan balance?

Why would they do that? The banks should just turn around and sell those houses at current market value and be able to gain back more value than these devalued default loans. Why would the bank want to maintain the same defaulting home owner who now has a lower loan amount to pay back.

This is a lose=lose for the banks. Wouldn't the banks just foreclose and sell the homes and full market value?
#3 DMartyr 21-May-2008
The problem is, the banks *don't* lose. Any losses will be passed along to responsible customers in the form of higher fees and rates.
#4 captainfish 23-May-2008
True.
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