'We can't wait': Obama to use executive authority to boost economy as Republicans dither on jobs

[ProSense]

'We can't wait': Obama to use executive authority to boost economy as Republicans dither on jobs

by Jed Lewison

<...>

So even as House and Senate Republicans sit on their hands, willfully sabotaging the economy in order to destroy the Obama presidency, President Obama will take whatever steps he can to strengthen the economy. Obviously, there's a limit to what he can do without congressional action, but short of a revelation on the part of Republicans, that's not going to happen, so this is pretty much the only thing President Obama can do until voters throw the Republicans out.

As Calmes reported, he'll be starting with housing issues in Las Vegas, the epicenter of the foreclosure crisis. AP elaborates:

An Obama administration official says President Barack Obama will announce new rules Monday to help homeowners with little or no equity in their homes refinance their mortgages to avoid foreclosures.

The new program will apply to homeowners with federally guaranteed mortgages who are current on their payments. It cuts the cost of refinancing and removes caps for deeply underwater borrowers.

And while President Obama is doing what he can to boost consumer spending and put underwater homeowners on more secure financial grounds, don't forget what Mitt Romney is proposing for housing:

Don’t try and stop the foreclosure process. Let it run its course and hit the bottom, allow investors to buy up homes, put renters in them, fix the homes up, and let it turn around and come back up.

The Obama administration has slow-walked the foreclosure processes that have long existed and as a result we still have a foreclosure overhang.

more

[Cirque du So-What]

1. Even an end-run around Congressional repukes

will not be enough to assuage doubt from the 'yeah, but...' crowd.

[elleng]

6. Yeah you're right. No 'but' here.

[mazzarro]

10. Well - the fact is that he should have been doing this long ago

And that is why there are doubters of his commitment to engaging in hard knock with the conservadems/DLC'ers/New Dems and rethugs when it comes to controversial issues. Liberals/Progressives have been clamoring for him to get tougher and have gotten insults heaped on them instead by the administration. Now it is more of a "wait and see" attitude being exhibited by Liberals/Progressives towards some of his actions - asking if this is for real or election gimmick?

[fasttense]

2. He should have put a freeze on foreclosures.

I wont hold my breath for Obama do do anything for the working class.

Instead of putting a permanent freeze on foreclosures, he let tens of millions of people lose their homes. I'm sure these voters are all happy with how the federal government allowed and participated in the mortgage fraud con. And now the Obama administration is negotiating a sweetheart deal for the mortgage fraud committed by banks bailed out with our tax payer dollars.

[Tarheel_Dem]

4. Can the executive branch "put a permanent freeze on foreclosures", unilaterally?

How would that work? :shrug:

[elleng]

7. Of course not.

[Tarheel_Dem]

8. Well, I didn't think so. I think a move like that would require that we drop Obama's title from...

"President" to "King", wouldn't you think? You know, I'm thrilled that so many people are engaged these days, but damn I wish we'd bring back basic Civics to the classroom. :hi:

[elleng]

9. Absolutely. I've complained many times about lack of decent education these days.

Here's some:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=219x34652

[fasttense]

21. Your sarcasm is just so biting.

I really think you all should polish up a little before you do your comedian routine though.

But thanks for the laughs.

Of course Obama can't (but I bet W could have) freeze foreclosures (like he did initially) for an extended period without congress. But he had a majority in both houses and decided to waste it on what exactly? A single-payer-free, public option free, price control free, mandated-to-buy-from-corporations health care bill with so many loopholes for insurance corporations it makes no difference.

He wasted away his Democratically controlled congress on making sure I can put my college kids on my health insurance. You know what it would have cost me to put 2 very healthy mid-twenties college kids on my insurance? $12,000 a year each. This is what he wasted 2 years on. Oh wait there was that bailout for the banksters and corporations. Then he decided to continue with bushes plan to bailout the RepubliCONS by not prosecuting torturers, rapists and defrauding banks. I forgot that one. Oh and there at the end, just as he was about to lose his majority in the house, was that tax give away to the idle rich. The one that extended the bush tax cuts for millionaires and billionaires.

But really, do you honestly think Obama's tinkering around the edges with his executive power is going to help the working class? What proof do you have that he will actually DO something for the working class? You have nothing but his words (sometimes) that he even knows he's suppose to be a liberal. The only reason he is saying this now is because he wants to get reelected. He could have done this earlier. Why did he wait until after tens of millions of people have lost their homes?

[rug]

3. This is good news. He should wring every drop from his executive authority.

[ecstatic]

5. k&r. Good news nt

[Scuba]

11. Leadership. Finally.

[Honeycombe8]

12. What does "underwater" mean? If it means they owe more than house is worth...

I don't see how his actions will help anything. It applies to people who are current on their mortgage notes. So those people are not in financial trouble and are not being foreclosed on.

So how is that helpful? Unless you're selling your house or are on the verge of foreclosure (meaning you're behind in your notes), it doesn't matter what the house is worth vs. what you're paying for it. My house got to be worth more than I paid for it. So what? That didn't mean anything, unless I would sell it.

I hope this doesn't cost anything. It sounds more like a payoff to Nevada citizens, where Obama needs some votes.

[ProSense]

13. That's

"I hope this doesn't cost anything. It sounds more like a payoff to Nevada citizens, where Obama needs some votes."

...an odd comment.

WSJ: Details on New FHFA Refinance Program, No LTV Limit, Eliminate appraisals

by CalculatedRisk

From Nick Timiraos at the WSJ: Home Lending Revamp Planned

Federal regulators on Monday plan to unveil a major overhaul of an under-used mortgage-refinance program ... The overhaul will, among other things, let borrowers refinance regardless of how far their homes have fallen in value ...

The plan will streamline the refinance process by eliminating appraisals and extensive underwriting requirements for most borrowers, as long as homeowners are current on their mortgage payments ... Fannie and Freddie have also agreed to waive some fees that made refinancing less attractive for some.

...

Pricing details won't be published until mid-November, and lenders could begin refinancing loans under the retooled program as soon as Dec. 1 ... Loans that exceed the current limit of 125% of the property's value won't be able to participate until early next year. The program's expiration date ... will be extended through 2013. HARP is only open to loans that Fannie and Freddie guaranteed as of June 2009.

This is more aggressive than I expected and there will probably be a significant pickup in refinancing. This only applies to loans that are current and guaranteed by Fannie and Freddie.

[Jakes Progress]

14. How is it odd?

From your post "Pricing details won't be published until mid-November". Maybe that's when we will know how helpful this will be. Maybe then, someone can see what percentage of those in need it will help. Right now, it's a nice bit of PR. I know about twenty people personally who are in mortgage problems. From what is said, I don't think it will apply to any of them.

Any help is appreciated, but nibbling away at the mountain is still nibbling. Why so narrow a set of guidelines I wonder. If this is something the president can do without congress, why be so tight?

[krawhitham]

17. Some should not get help

Any help is appreciated, but nibbling away at the mountain is still nibbling. Why so narrow a set of guidelines I wonder. If this is something the president can do without congress, why be so tight?

Why reward people who bought houses they could not afford because they believed they could sell their home for a profit after the interest only payments stopped

You had idiots doing 80/20 loans, putting nothing down and get all shocked and confused when the artificially low teaser rates of their loan goes away

Anybody that buys a house without knowing how loans work and did not see a lawyer first is fucking nuts, never believe a real estate agent or a mortgage broker, their ONLY job is to get you to buy the biggest house you can get a loan for so they make a bigger commission. When you pay to see a lawyer his/her only interest is YOU, they will tell you the truth about the loan's details

[Jakes Progress]

19. Cool. That is a good sarcastic post that exactly mimics republicans.

Without the sarcasm tag, it could be taken as serious, but what Democrat stands up for banks and wall street for screwing people over?

Really funny.

[mkultra]

23. did you clip this from FR

regardless of wether people are stupid or not they should receive help if they need it. Helping regular people helps the economy. Preventing further foreclosures is helpful to all of us.

[flamingdem]

15. It lowers monthly payments with savings of a few grand a year average nt

[krawhitham]

16. It helps people who did not buy a house they could not afford

The value of houses have been dropping for a while so most people who bought a house in the last 10 years using FHA (3% down instead of 10-20%) are under water

Now those people can refinance and save 200-400 a month, and what will they do with that money? Most will buy merchandise they could not afford before but wanted or needed.

If enough people use that 200-400 on other items it boosts the economy

3 years ago we bought a house we could afford even if everything went in the shitter, well everything has. We went from 2 good paying jobs to 1 below average paying job, but we never missed a mortgage payment. We put down 5% and this year when the county estimates for the house came it had lost 15% of its value (lost 7% last year). The house is in better shape now than when we bought it, it is just housing values are dropping like a rock. This will have save $400 a month most likely since interest rates have dropped to 4.125 in this area. We are by no means staving but $400 more a month to spend of food and clothing will be very helpful

[flpoljunkie]

18. I hope you will be able to refinance through this program, even if it doesn't reduce the principal--

'cramdown'--something President Obama campaigned on, but was talked out of by Geithner and Summers. Oddly, I think Summers supports it now, altho Geithner does not.

[mkultra]

22. you didnt read it did you?

It doesn't "apply" to people who are underwater. Its for everyone who is current. Its just removes caps for people who are underwater. Do you understand now?

Anyone who is locked into a high interest loan can now refinance at historically low interest rates cutting their monthly payments way down and limiting the cost of refinance. People who are underwater are further challenged because they are not allowed to refinance unless he forces the removal of that cap.

Every speck of that is in just the portion that was posted above.

[Jakes Progress]

20. Is this just a matter of letting banks off the hook for bad loans?

I mean, does this program make taxpayers responsible for loans that are refinanced under this program? Doesn't that just bail out the banks again? I'm askin'.

I like giving people a chance, but how come the banks agreed to this unless it takes the burden of their crime off of them?

[ClassWarrior]

24. K&R

NGU.