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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (361774)	12/7/2007 2:19:28 PM
From: tejek	Respond to of 1574890

The killer hurdle in the plan is the requirement that that the mortgage be worth what the house is worth. No one in Florida or California can claim that now, and those two states are ground zero for the problem the plan is supposed to address. Maybe. For all the hoopla, prices in CA have not come down that much. FLA is a different story but then again, it depends where in FLA. Miami, Ft. Meyers and Tampa are hurting badly.....other parts of the state not so much. Ocala and Orlando have yet to feel the worst of it. Some have put the estimated number of people that will be actually "helped" by the plan at 250,000 of the more than 2 million CURRENTLY affected by the problem. I think THAT estimate is too high. There are just too many hurdles to jump, and the "help" provided by the plan too meager. In making this proposal, the mortgage industry is going to present it as conservatively as possible. For good reason.........it goes against their business principles. However, its self regulated so they can do what they want when they implement the plan. It would not surprise me if the plan when implemented is far more lenient than as proposed. Why? The lost profit from the reduced interest rate is more than made up by the costs involved in repossessing, rehabbing and then remarketing and selling the property. As for giving future borrowers the wrong impression, it will be a cold day in hell at least for the next 20 years before the mortgage industry plays so fast and lose with its mortgage requirements. At least, that's how I see it.