GOP criticizes mortgage plan
House Democrats bring to the floor today a plan to stanch the home foreclosure crisis with measures that include government-backed mortgage refinancing and money for states to buy derelict homes, but Republicans say the $2.7 billion bill is nothing more than a “bailout scheme.”
Democrats bristled at the bailout accusation, saying their bill is tailored narrowly to help families save their primary residences and bars speculators, investment properties and second or third homes from the refinancing assistance.
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May 14th, 2008 at 3:55 pm
[...] GOP criticizes mortgage plan [...]
May 19th, 2008 at 6:50 pm
Frank heading up the Finance Committee exemplifies the lack of talent and intellect in politics today.
As far as I know, there are anti fraud rules already in place that weren’t enforced against Wall Street mortgage securitizers and the ratings agencies that rubber stamped Wall Street’s fraud.
Had these laws been enforced, there would never have been a mortgage crisis. There is no way to slice and dice and insure subprime paper and make it AAA paper. Yet this is what the regulators allowed Wall Street and the ratings agencies to do.
We don’t need new laws. We need enforcement of the laws already on the books. The demonizing of the mortgage broker is misplaced. It’s akin to demonizing convenient stores for causing cancer because they sell cigarettes. It’s simplistic at best and out right lying at worst.
May 22nd, 2008 at 12:11 pm
It’s easy for someone in such a high position to point the blame of the sub prime crisis on the little guys. I agree with the statement: “The demonizing of the mortgage broker is misplaced.” The average person doesn’t know that mortgage brokers did not create the sub prime loan. Mortgage brokers did not determine whether or not the people who are in foreclosure now, were “credit worthy”. They have no authority to approve or decline loans in the lending business.
In addition, many states have over-regulated the mortgage broker in relation to other originators, such as bank loan officers or loan officers working directly for lenders. Bank loan officers also “broker” loans to the wholesale lenders that are now suffering losses due to the sub prime crisis.
Let’s climb the ladder to see who “originated” the sub prime loan “product” in order to make a higher yield on their money.
May 22nd, 2008 at 3:31 pm
I was in the mortgage industry for 6 years and got out 2 years ago, I was disgusted by the way everyone got Greedy and didn\’e2\’80\’99t give a shit about the person or their family.
Now Granted some of the borrowers did know exactly what they were doing, because either they were going to flip the property or cash out as much as possible & take the money & run
But for those buyers who truly wanted to buy a property for their family got screwed on many levels.
You should know as well as anyone else that those documents are hundreds of pages and most borrowers do not understand the lingo, so they\’e2\’80\’99ll ask their mortgage broker or realtor or lending tittle co., or lender etc. to explain this to them and trust that their advice is correct since they are the professional. I have seen first hand how some Loan Officers & Lenders have sugar coated the loan or straight out omitted explaining Negative Amortization or how an arm really works. They have told the borrower exactly enough for them to sign and receive their hugs commission checks. I have even seen when a borrower asks what is the YSP (Yield Spread Premium) on the POC (paid out of closing) and they borrowers have been told - that is nothing in that column - that is a bank figure or whatever they can come up with. everyone is to blame, especially the greedy lenders who came up with BS programs like NO Doc & stated/stated knowing full right 90% of those loans were BS. and they looked the other way, winked and made their money.
& now that the shit hit the fan ! Well guess what everyone is paying for it one way or another\’e2\’80\’a6. Lets find solutions !
May 26th, 2008 at 11:05 pm
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