OUTSTANDING observation! That's exactly what the dumbs are doing with the timing on this one! I call them the dumbs, but they must be smarter than I gave them credit for. Oh yes, they are scumbags, but smart with the timing on this one The sheeple in America will probably love that, and remember it in November. So sad!
I've never seen mortgage standards more difficult. Never. Its not even close. Since Fannie and Freddie are owned by the gov't, you would think the Feds would use their influence to force them to loosen lending standards. So far, they haven't. They have a lot of latitude to move. Can't understand why they aren't. If the BO admin. really wanted to juice housing, why not order Fannie to start accepting low-doc loans again. Its hard to believe they would take the incredibly radical step of cutting balances on mortgages when they won't even take the minor step of slightly loosening lending standards.
Fannie, Freddie & FHA basically ARE the mortgage market right now. With that, comes the power to control who gets what and where. We'll cut your old mortgage down...but what will YOU pay in the end. We'll give you a loan...but on our terms now.
I bet is because so far it has all been a sham to protect the bankers from admitting they are insolvent. We are on the verge of a new leg down in Resi. Commercial Real Estate will take down what is left of the big banks.. so the scheme is to have fannie and freddie (forgive) the upside down debt. A debt which will probably never get paid back anyway. But by forgiving the debt now the Obama will take a trillion from the tax payers give it to fannie and freddie and they will give it to the banks and their investors. Notice how the big banks gathered in all the little banks. this is going to mean so much for say the guys who bought Indymac --- soros, paulson and the number 2 guy from goldman. It is everything the bankers could have ever dreamed of. And I bet they will lock the homeowners into a long term contracts to realize the payoff. it will cause a miserable economy for a decade... all to save the banks which should be allowed to die and let the bankers reorganize with better business plans.
Brilliant! The democrats bail out underwater homeowners to buy votes while locking homeowners into an even stricter mortgage to help banks in the future. Then they give the money, which would never have been repaid, to the banksters. The banksters would have gone out of business due to all of the defaults, but now make a tidy profit off of the rest of the taxpayers who were stupid enough to work hard, make sound financial decisions and pay their bills. Can't you just see the world's wealthiest people who control our government sitting in a smoke-filled room laughing about this ingenious idea?