Wednesday, June 25, 2008

Housing Aid Bill Clears Key Senate hurdle

I found this article on the Drudge report titled: "$300b Mortgage rescue" and the article was from My Way. Sorry, the article does not provide the authors name or I would provide it here. You need to read it.

Here is a quote from the article:“The Senate voted 83-9 to speed up work on the $300 billion mortgage aid plan, putting it on track for a final vote as early as the end of the day”.

Chris Dodd, D-Conn., and friend of Angelo’s (the Banking committee chairman), calls it a gift on independence…. What a play on words! Independence means Sufficient income for comfortable self-support; a competence.

This is nothing more than election year idiocy to buy votes. This bill provides $300 billion in new, cheaper mortgages for distressed homeowners that don’t qualify for government insured, fixed rate loans.

They were financially risky when they obtained their mortgage and in a lot of cases have no investment in their home. Credit guidelines were relaxed and loan programs were created to make home ownership more affordable. Home ownership has been at an all time high and more than 95% of homeowners pay their mortgage on time.

Mortgage rates have been low for a long time. Low rates naturally brought high appreciation in real estate and higher home ownership. Wall Street had a growing appetite for mortgage-backed securities. Lenient programs were created to feed that appetite.

Your comments are welcome!


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