Fannie Mae.... a political slush/hedge fund driven type company that was leveraged 80:1. Gets bailed out by the Federal Government to the tune of billions, executives keep their fat salaries, there is even a tax credit created to keep them busy, and they still need more money... And now they want to go after "deadbeats?" LOL.... The housing market will collapse as the currency collapses, and Fannie Mae and Freddie Mac follow suit. Well within 7 years. This has to be one of the most worthless policies that will be meaningless well before 7 years. This should cause concern: http://seekingalpha.com/article/210704-the-5-trillion-bet From the article: "First, in the mortgage sector, 1-4 family mortgages that are held at "agency- and GSE-backed mortgage pools" plunged from $5.27 trillion at the end of 2009 to just $983 billion on March 31. By contrast, the direct mortgage holdings of the agencies themselves surged from $438 billion at year-end to $4.75 trillion on March 31." Read the entire article, I highly recommend it. We will destroy our currency and our economy in order to bail out the banks and maintain home values artificially. The deadbeat defaulters are the least of our worries... this new policy is the most recent pathetic attempt at saving the inevitably doomed.
'ups the penalty?" thats a serious understatement. So now the government will look at your finances and see if you have the ability to pay to a private cartel institution? If you do, and you exercise your contractual obligation to default, never mind getting a mortgage again. Unless you can get Fannie Mac to underwrite one, you are screwed. What defines "ability to pay?" Its entirely subjective.
BULLSHIT! You don't understand. Non-recourse financing requires 30-50% down to cover lender risk. Low/no down is "full recourse" financing. Borrowers should be forced to stand fully responsible for the note.
Depends on the loan contract. Also, the right of bankruptcy gives the individual kind of a de facto non-recourse loan. You can BK out of a horrible situation, they can't come after you to harvest your kidneys. Personally, I don't think 7 years is enough. If I loaned you money and you failed to pay me back and left me holding a bag of shit, I would never loan you money again. For life.
Whole thing is a scam. RE a scam. reselling morts, a scam. Aint figured it out yet? The chicken farmer is the only one doing anything useful, the rest of ya, leeches.
This is racism! Every illegal Mexican immigrant has a right to buy a million dollar house! Who's coming to the big rally tomorrow? Full media coverage guaranteed!
Perhaps one of you can shed some light on something for me. I do not trade stocks anymore, and I do not believe the government will allow Fannie & Freddie to fail. historical info...a year or two after the '87 crash, Chrysler had already received government loan guarantees and had repaid the loans. Chrysler stock at that time was trading around $3 to $4 with a yield of about 10%. When I look at companies like Fannie & Freddie...they have several trillion $$ of mortgages, but bad mortgages only in the billions $$ and common stock prices under 50 cents. I question if this is the time to buy another "Chrysler lottery ticket" in Fannie & Freddie on any weakness? If it is time to buy a lottery ticket in Fannie & Freddie, is there a better play like some convertible preferred, bonds, etc that could be accumulated over time? Thoughts please!