So now what? Foreclosure Bill & Bush Veto

[Elliott]

Dodd's Foreclosure Bill got through the Senate, the
stock market is not being favorable to Fannie/Freddie.
The bill has a $300 billion bail-out, work-out aspect,
increased loan limits for FHA and President Bush doesn't
like a $6 billion of revenue sharing with states and....

(Reuters) "The White House also opposes a Senate provision that would ban risk-based pricing for Federal Housing Administration loan insurance. Perino praised the Senate bill for strengthening oversight and regulation of Fannie Mae and Freddie Mac, providing "a strong regulator that will ensure that the housing GSEs hold sufficient capital and are focused on their statutory housing mission."

"The Senate GSE oversight provisions must not be weakened," she said.
Fannie Mae and Freddie Mac shares have dropped sharply this week as investors fret over the whether the two government- sponsored enterprises have the reserves needed to survive sinking home values and soaring defaults."

So is this going to solve the "housing problem"? Will helping out
HOs facing foreclosure have the expected result of improving the
real estate market, or will the law of unintended consequences
cause more problems in the market?

 

[Mztk1]

There is a necessity for something to be done. There will always be those untrusting of the government to solve any issue and those voices need to be listened to in order to uncover the potential problems and include protections against those possibilities in the bill. I think that is being done well here. But unintended consequences are always going to occur. We cannot dwell on them, but prepare for them and offer solutions as they happen. A perfectionist in government never accomplishes anything, nor doesl a libertarian. The trick is to start a ball rolling down as clear a path as possible given the situation and the time restraints, and improvise along the way.

 

[The Bob]

I especially like the part about the $6,000,000,000 that will go to the states so they can reward whichever group/program is in political favor at the time. You know, groups like ACORN, Ameridreams, Nehemiah, etc...

And lets not forget that lenders will now be able to transfer their worst loans to the taxpayer through the FHA.

What a crock of s***

 

[Mike Boyd]

I have not heard of the $6 billion in revenue sharing with states. What revenue?

If approved and signed by the prez it should help a few homeowners but certainly not all and I don't think enough to solve the current crisis. It should help APPRAISERS, though.......those that are on the approved FHA panel, anyway.

 

[Randolph Kinney]

As with any government solution, it rewards the cronies of the politicians and a few pennies to the victims.

 

[Elliott]

Randolph said, As with any government solution, it rewards the cronies of the politicians and a few pennies to the victims.

I was watching Fox's Forbes on Business show and the senior editor said
that currently what the Fed is doing is giving all the money to the bad lender and not
giving it to the good lenders. I think he's right. I still do work for the small, local
lenders and they are making money one loan at a time.

 

[Randolph Kinney]

One thing about the great depression era, Joe Public lost faith in the institutions and put their trust in their mattress and holes in the ground for their money.

Government has put in solutions that have gone wild as we see them today. It is socialism disguised as regulated capitalism. We have the FED that can act to bail out the big Wall Street investment banks and give loans to very high risk institutions in exchange for equally high risk collateral. We have GSEs and FHA whose mission is to make loans possible to equally irresponsible people that are equally high risk at the expense of the taxpayer for it is the taxpayer that stands behind the magnanimous giveaways of credit and money to all those failing people and failing institutions.

No one can imagine letting any sizable institution fail. The consequences would wreck the intelligentsia control of government. No more free lunch to Joe Public. Without free lunches, who needs these govenment agencies and control?

 

[Couch Potato]

Dodd's Foreclosure Bill got through the Senate, the
stock market is not being favorable to Fannie/Freddie.
The bill has a $300 billion bail-out, work-out aspect,
increased loan limits for FHA and President Bush doesn't
like a $6 billion of revenue sharing with states and....

Over the past two weeks the bill was altered to the point that the House will no longer pass it. Presidential veto is irrelevant at this point, because it won't be going to his desk.

 

[Randolph Kinney]

What's in the mortgage overhaul bill

Tax credit: First-time home buyers might be eligible for new tax credits of up to $8,000 per couple or $4,000 for an individual to stimulate a slow market.

Foreclosure help: The bill would allow borrowers to trade their exotic mortgages with rising monthly payments for fixed-rate, government-backed loans. But lenders would have to agree to take a loss on the loan, and borrowers would have to share equity with the government.

Saving neighborhoods: The bill offers $3.9 billion in grants to local communities hard hit by foreclosures to buy up empty properties to avoid blight. President Bush opposes this provision, and the House may not include it in its revised version.

Better oversight: The measure creates a new federal regulator, appointed by the president, with greater powers to oversee Fannie Mae and Freddie Mac, the two government-chartered mortgage giants.



This article appeared on page A - 1 of the San Francisco Chronicle, Saturday, July 12, 2008.

 

[Terrel L. Shields]

is this going to solve the "housing problem"?

No its fish slapping...you know, the Monte Python skit where one of them prances up to the other and gently slaps him across the face with a small fish and then does it again....until the other guy clubs him upside the head with a 30 # Salmon....