Foreclosure Plan now on financialstability.gov

[Thrill]

http://www.financialstability.gov/

[uponit7771]

1. THEY'RE NOT LOWERING RATES!!! This is stupid!! Lowering rates for EVERYONE will help push the home..

...inventories lower AND stimulate economy due to people with lower home payments that are in a financially solvent situation now.

I'm a tad frustrated with the approach...

"...As a result, the Obama Administration is announcing a new program that will provide the opportunity for 4 to 5 million responsible homeowners who took out conforming loans owned or guaranteed by Freddie Mac and Fannie Mae to refinance through the two institutions over time..."

This isn't for everyone, just the FM conforming loans...

Just lower the rate to 3% for 6 - 9 months and the rush of refi and buying will choke the 800 billion in excess reserves the banks have built up in 4 months (yes, they're bastards) into the GDP again.

[BlooInBloo]

2. Housing is way overpriced. Remember that thing they called the "housing bubble"?

Lowering the cost of housing financing would constitute an attempt to re-inflate that bubble.

[uponit7771]

4. I ammended the post, for 6 - 9 months let the refis come in and new houses owner ship but letting

...houses stay under water for a generation (the last time this happened) isn't an answer either.

In the 80s a drop in mortgage rates stopped the fall of housing prices.

The banks caused this crap by lying to the rating agencies about how the MBS's were bundled thus allowing for the MBS's to be secured, they should be eating the cost on the 5 million homes that are over priced.

[berni_mccoy]

5. The Fed can't lower Mortgage rates. The Rates the Fed can lower are already as low as possible

Unless a law is passed nationalizing the lending institution, there's nothing the gov't can do about rates.

[Aloha Spirit]

6. They are providing incentives for lenders to refinance at lower rates...

sounds good to me.

[berni_mccoy]

7. That's one way of doing it. The lenders ought to be doing it without incentive though

[Thrill]

9. Not in this country of Greed

[uponit7771]

11. If you're making double what you were making in 06 why would they?

[uponit7771]

10. The mortgage companies are getting almost double the margine they got in 06, why would they lower

...that!?

The 10 & 15 yr t is stupid low and the banks can borrow that block of money and sell for almost twice what they were getting it in 06 and that's a reason why they're not going to lower the rates, I've written before that the banks are bastards and they are...true bastards

[uponit7771]

8. Those aren't the rates for houses, the rates for houses is set of the 10 year & 15 yr treasury and..

...yes the government CAN lower the rates by MAKING the banks who they've partially nationalized DROP their mortgage rates bellow 4.25 and then the big boys who are solvent will HAVE to compete.

BTW: The fed rate is mostly for LOC's (lines of credits) and credit cards and fix rate collateralized loans like for cars.

[Aloha Spirit]

3. Obama's announcing his housing plan TODAY! In Arizona. Please read this whitehouse.gov page:

http://www.whitehouse.gov/blog/09/02/18/Help-for-homeowners/
It's the same info pretty much, but this is where I will be looking for updates later today :-)

[skeewee08]

12. So what if your mortgage is not with Freddie or Fannie

do you still get help? How can you select who you are going to help this does not sound right to me, their are a lot of families out there that need help that lost their jobs that are in foreclosure. If they are not going to help ALL of those that are in need then they need not help no one just my opion.

[Still Sensible]

13. If I read the summary correctly,

the idea is that even if you current loan is not through Fannie or Freddie, the restructuring would be backed by Fannie or Freddie.