Your topic Is Your Domain Name Optimized? was interesting when I found it on Tuesday searching for advantage mortage…

It benefits the homeowner almost not at all, unless you want to cash out and move a thousand miles away into the bush somewhere.

They get HOSED…..Anybody think of them??????????????? Hillary?

a checking account at BOA and other large lenders who in turn assign the illegal a credit number that is reported to the credit bureaus

And BOA made a big deal about how it was going to loan money to illegals. Ditto Citi.

Bank of North and South America – an FDIC Institution.

I’m in a real estate related business (not a lender) and the “insider” info I keep hearing indicates that a lot of this foreclosure and lending problem is related to (dare I say it) loans to illegals who had a consular id, a checking account at BOA and other large lenders who in turn assign the illegal a credit number that is reported to the credit bureaus. Problem is that unlike the rest of us who have our credit tied to a SSN and can’t walk away from a credit problem, they can. They simply walk away from their homes, go down to the corner, get a new fake consular id, new checking account, and start all over again with no credit history (which is better than the bad credit any of us would have and it doesn’t last as long).

I don’t have proof of this beyond the statements of people in a position to know these facts as I haven’t seen it published in the MSM (surprise surprise), however, if one looks at foreclosure rates by state and county and compares them to maps of areas of saturation by lenders known to provide these credit id numbers and not only loan to but also actively pursue illegals as customers, and cross reference it all with concentrations of illegals, there is enough of a correlation to validate the suspicion if not the fact.

Yes, that means that Ma & Pa Kettle are only being hit by 15% of the foreclosures. All the rest of those foreclosures belong to the greedy get-rich-quick crowd. So, when the bail-out refinances the loans of the 15% who are poor folk (and people who re-fied and spent the money on a boat), the rest of the bail-out will be used to help the get-rich-quick crowd. They will only be interested if the value of their property has not declined too much and if the renters are covering the full cost of the mortgage pmt + taxes. Many of these speculators are holding 5 to 10 properties, and will only re-fi if they have no negative cash outlay. So, many will likely still foreclose and the banks will still have to eat it.

And then we’ll all grumble cuz this bail out really went to help some greedy Trump-wanna-be, not the down-on-their-luck family.

I’m no genius but if they would take the time to educate themselves, do some research and create a realistic budget they may not be in this mess in the first place. Just a little personal responsibility goes a long way.

I eat tv dinners and sandwiches because I choose to, I take all the overtime I can because I choose to. I do odd jobs on days off because I choose to. I drive a twelve year old car because I choose to. I save all I can because I choose to. When I pay my house off early it was because I chose to.

Sorry for the rant.

Second, the Fed has nothing to do with any of the specific mortgages. The mortgage terms were created by the individual banks and agreed upon by the borrowers when they signed their closing documents. This is a private contract.

The Federal Reserve is the government, or at least it is an agency of the government. It is impossible to determine where the original money was borrowed from or if it was even borrowed. Banks by nature have lots of money of their own though they often borrow from the Fed mainly because the Fed gives them such a good rate.

I think your overall point is accurate though. It is not the role of the federal government to step in to renegotiate a private contract.

These ARM loans are tied to the Prime lending rate… and the origional money for them was borrowed from the Federal Reserve bank (not the government).

The Prime is SET by the Federal Reserve Board… a non governmental agency.

Now, the Feds, are going to forcefully renegotiate private contracts between some companies, and some individuals…

So, the Federal Reserve Bank COULD lend money to the institutions in question at a low rate to cover these loans… but I’m sure it won’t.

It will be the Federal Taxpayer who will bail out these lenders, and companies, from their bad business practices by the President and Congress getting involved…

But, under WHAT Constitutional Authority can they do it? Isn’t Banking law a STATE run issue?

Two (legal/illegal??) immigrant strawberry pickers, making $300 a week each, qualify for a $720,000 home. You can guess the ending.

My tax money is supposed to bail out them and their lender??

I think not.

What everyone needs to understand is that the MSM is creating a narrative that identifies victims, heroes and villains and Congress follows up with legislation that exploits this narrative.

That is why the abomination that is H.R. 3915 passed the House.

This bill fit the narrative that the MSM has created. This isn’t merely about cynicism but awful policy based on this cynicism.

I wrote this piece about what happened to me in the month of August not because I wanted sympathy but because I wanted to show what the policy would be like if the narrative decided to choose another sympathetic victim. The reality is that everyone struggled as a result of this crisis, however some people get the sympathies of Congress and others get their wrath, and policy based on sympathies and wrath is very dangerous.

I agree. There is frankly very few industries that act more like a traditional market than real estate. The whole thing is driven by market principles. From appraisals, to interest rates, to interest rate models. Everything really comes down to a market.