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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (164516)	11/15/2008 10:39:47 AM
From: Bank Holding Company	Respond to of 306849

With all this help from the govt. Who needs enemies??? F.D.I.C. Offers Plan to Stem Foreclosures By THE ASSOCIATED PRESS Published: November 14, 2008 WASHINGTON (AP) — Breaking with the Bush administration’s position, the Federal Deposit Insurance Corporation proposed Friday to use $24 billion in government financing to help 1.5 million American households avoid foreclosure. The source of the money, though, is in dispute. Agency officials want to use part of the $700 billion bailout of the financial industry to pay for it. But the Treasury Department is opposed to that idea. Testifying on Capitol Hill Friday, Neel Kashkari, the Treasury Department’s assistant secretary for financial stability, said the intent of the $700 billion plan was to make investments with the hope of getting the money back. That, he said, was “fundamentally different from just having a government spending program” that would disburse money with no chance of ever seeing any returns. Congressional Democrats could take up the plan when they return for a lame-duck session next week. Or the plan could set the stage for a new foreclosure prevention initiative once President-elect Barack Obama takes office in January. The agency’s plan, posted on its Web site Friday, would guarantee 2.2 million modified loans — mainly risky loans made to borrowers with weak credit or small down payments — through the end of next year. Borrowers would get reduced interest rates or longer loan terms to make their payments more affordable. The F.D.I.C. said the government’s backing will make the lending industry more willing to modify loans because taxpayers will absorb half of the losses if the borrower defaults again. Also, loan servicing companies, which collect and distribute mortgage payments, would be paid $1,000 for each loan they modify. Even if a third of borrowers default again on their modified loans, 1.5 million homes would still be saved, the F.D.I.C. says. Under the agency’s plan, monthly payments should not total more than 31 percent of homeowners’ pretax monthly income. On Capitol Hill, lawmakers complained to Mr. Kashkari that the administration was ignoring the will of Congress and slighting homeowners on the verge of foreclosure in its latest approach to spending $700 billion in the bailout fund. “It’s very clear that Treasury cannot and will not make the effort to keep people in their homes,” said Darrell Issa of California, top Republican on the House Oversight and Government Reform subcommittee on domestic policy. Dennis Kucinich, Democrat of Ohio and chairman of the panel, said the change in the bailout announced this week by Treasury Secretary Henry M. Paulson Jr. “breaks with Congressional intent, contradicts public assurances previously made by Treasury and leaves the federal government without an adequate mechanism to stem the tide of home foreclosures.” Mr. Paulson, citing the worsening credit squeeze, said that Treasury no longer planned to buy up troubled mortgage assets. nytimes.com

To: Jim McMannis who wrote (164516)	11/15/2008 11:41:43 AM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

I've said all along it was only the first installment. We'll be up to 2-3 trillion in no time, with no end in sight. I still think they should simply give 50 K to every citizen in the U.S. and require upside down homeMoaners to apply it to mortgage debt/refinancing (using minimum of 20% down refinancing and fixed rate mortgages). If you're so far underwater this won't make you whole, then it's time to jingle mail you're way out, apply it to the foreclosed property's investor to soften the blow on the investor.Make it clear this is it, no more, to anyone. That would reward savers and bailout homeowners (for a change). It would also devalue the dollar, prop up the stock market and improve exports, while providing stimulus. Blood to the muscle. Send this to elected representatives and take credit for it yourselves, I don't mind..... Total cost: 10 trillion.