Testifying before the Senate Finance Committee on April 9 Montgomery said, “We must not federalize the housing market. And we must not harm our economy through solutions that, however well-intentioned, further erode the foundation of the nation’s housing market, hurt homeowners who are meeting their mortgage obligations, or prolong the correction.”
There are two elements that make FHA loans attractive to borrowers and dangerous to taxpayers. For one, FHA loans require only 3.0% down and about a third of borrowers don’t even pay that, thanks to a funding mechanism that allows homebuilders and banks to cover the downpayments via not-for-profit companies. Holders of these no-money-down loans are three times more likey to default as other borrowers.
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Good afternoon Mr. Silvestri,
I am the Director of Charter House Community Develpoment Corporation located in los Angeles, California. The agency is a 501 c3 ( public benefit corporation ), with experience in purchasing, rehabilitating, selling and leasing REO properties to low to moderate income residents. Charter House would like to work with BOA by purchasing $10,000,000 - 20,000,000 pools of reo properties at a substantial discount, providing BOA the Tax Benefit of writing off the gift discount and addressing the housing/ family displacement problems that exist in our communities. Charter House is willing to resale these properties at substantial discounts to home buyers, providing them the opportunity to get FHA Financing. Some of these properties would be set aside for leasing to families displaced from foreclosure.
Employment opportunities would also be created in construction, real estate sales/ management, and loan origination. The calaboration between the Banls/Lender and non-profit corporations, could make an impact in redeveloping communities in California and Nationwide
Please email me so that we can discuss this community project and I will be glad to forward a project summary to you for review.
Posted on May 3rd, 2008 at 4:09 pm
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