Obama's new Mortgage program is just another bank bailout

[thundley4]

trumad   (1000+ posts)             Mon Oct-24-11 03:34 PM
Original message
Obama's new Mortgage program is just another bank bailout---and....
   
you can only get the assistance if you never missed a mortgage payment----and--- it doesn't do anything about negative equity.

WASHINGTON -- The Obama administration is introducing a new program on Monday designed to lower monthly mortgage payments for more troubled homeowners.

But a key new condition in the plan would shift the financial liability for refinanced loans from Wall Street banks to the American taxpayer. And by focusing on lower payments, the program does not confront what housing experts view as the core problem in the foreclosure crisis -- borrower debt that exceeds the value of one's home.

Faced with the weak response to the Home Affordable Refinance Program, the Obama administration is planning to open up the program to all borrowers who owe more on their mortgage than their homes' worth, commonly dubbed being underwater, and have not missed a mortgage payment. HARP had been limited to borrowers who owed up to 25 percent more than their home is worth. More than 22 percent of all home mortgages -- or 10.9 million homes -- are currently underwater, according to CoreLogic data. Fewer than 900,000 borrowers have elected to go through HARP to date.

The revised program also eliminates several fees associated with refinancing that can make the decision to refinance uneconomical for borrowers. But the potential benefit of the eliminated fees could be relatively small: If a few thousand dollars worth of fees made refinancing a bad deal for underwater borrowers, the ultimate benefits that refinancing can pose would remain limited.

On a conference call with reporters, White House National Economic Council Director Gene Sperling referred to the HARP expansion as "a win-win policy" that will result in "less defaults" and "fewer foreclosures." But one of the program's new terms will benefit private-sector Wall Street banks, potentially at the expense of taxpayers.
http://www.huffingtonpost.com/2011/10/24/foreclosure-pl...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x2177161

Tatiana   (1000+ posts)             Mon Oct-24-11 03:40 PM
Response to Original message
1. That is a stunning statistic... 22% of all home mortgages are underwater!
   
WOW... no wonder why we are in this crisis. Unbelievable. Judges should be allowed to cramdown the mortgages to what the home is worth and force the banks to eat the loss.

jpljr77 (574 posts)           Mon Oct-24-11 03:49 PM
Response to Reply #2
10. It's not bullshit. Being underwater does not imply financial hardship.
   
This is an assistance program for people like my wife and I. We bought our first (and only) home in Summer 2006. We bought a house we could afford, but since it was so popular at the time, we didn't put anything down. Since our home has declined in value so much, we are technically underwater (our total outstanding mortgage is more than what the home is worth). But we can make our payments, and haven't missed one yet.

That scenario is a lot more common than you probably think.

EFerrari   (1000+ posts)             Mon Oct-24-11 03:48 PM
Response to Reply #4
8. It's too bad Obama isn't in a position of power over those damn banks. nt

Nationalize the Banks and hang the banksters.

Crazy Dave   (1000+ posts)           Mon Oct-24-11 03:51 PM
Response to Original message
11. Does Obama really think this is going to fool anyone and get him more support?
   
Well....maybe with the banks but personally I think they're all going to piss on him and throw big money at the republican nominee.

DUmmies will continue to vote for Obama.  In fact, if conservatives come out against this plan, you DUmmies will say they are wrong and Obama's plan is a good one. 

What is the big deal about underwater mortgages?  It's not like it suddenly causes the monthly mortgage payment to jump , and it isn't the banks fault.  If Obama is ousted, the economy will recover and housing will recover eventually. 

Everyone that buys a new car with no money down is underwater on the car loan as soon as they drive it off the lot.

[Erasmus]

He's announcing something on Wednesday about student loans, too.  Can't find any details on what that will be, either.  Probably a program to steal loans away from the private sector, yet again.

It should be pointed out that this announcement is planned to happen without Congressional action or approval.  Caesar Obama has spoken. 

[BlueStateSaint]

One of The Five on FNC was just saying that Obama is trying to "buy the state of Florida" with this.  I know it wasn't Bob Beckel--it might have been Eric Bolling.

[DumbAss Tanker]

jpljr77 (574 posts)           Mon Oct-24-11 03:49 PM
Response to Reply #2
10. It's not bullshit. Being underwater does not imply financial hardship.

Somebody deserves a kewpie doll for a brief moment of mental clarity.

[docstew]

Crazy Dave   (1000+ posts)           Mon Oct-24-11 03:51 PM
Response to Original message
11. Does Obama really think this is going to fool anyone and get him more support?
   
Well....maybe with the banks but personally I think they're all going to piss on him and throw big money at the republican nominee.

Someone didn't get the memo that the won received more money from bank execs than any other candidate EVER. Hell, he's gotten more for reelection from Bain Capital than Mitt Romney did, and Romney founded the place.