Well, what’s next with the government bailout that was going to save our bacon? Let’s face it, the housing mess started in 1999 and was really escalated during 2005-2008, and look where it has gotten the U.S. taxpayer as of today.
Check out this article from 1999 [yes, that’s 1999]: Fannie Mae Eases Credit to Aid Mortgage Lending.
“In a move that could help increase home ownership rates
among minorities and low-income consumers, the Fannie Mae Corporation
is easing the credit requirements on loans that it will purchase from
banks and other lenders.
The action, which will begin as a pilot program involving 24 banks
in 15 markets — including the New York metropolitan region — will
encourage those banks to extend home mortgages to individuals whose
credit is generally not good enough to qualify for conventional loans.
Fannie Mae officials say they hope to make it a nationwide program by
next spring.” [Source]
We know where this got us to: Bailout, $750 billion and still rising as Detroit auto makers step up and receive billions that will keep their doors open till March?? Folks, the government is going to go broke, maybe sooner than later. I am not a doom and gloom person, but I have an idea that the American taxpayer is really going to get left with a failed bailout, more bailout money being requested from all over the country and will we wake up in 2009 and say what the heck happened?
Now for updated bailout news for individual homes:
Homeowners Defaulting Again (Re-Defaulting) on Payments After Getting Help and Aid to Make Payments.
Picture Credit: Respres
WASHINGTON (Reuters) – Recent data suggests that many borrowers who received help with mortgage modifications earlier this year tended to re-default on their payments, a top U.S. banking regulator said on Monday.
“The results, I confess, were somewhat surprising, and not in a good way,” said John Dugan, head of the U.S. Office of the Comptroller of the Currency, in prepared remarks for a U.S. housing forum. “Put simply, it shows that over half of mortgage modifications seemed not to be working after six months,” he said.
Dugan said recent data showed that after three months, nearly 36 percent of borrowers who received restructured mortgages in the first quarter re-defaulted.
The rate of re-default jumped to about 53 percent after six months and 58 percent after eight months, Dugan said, without providing an explanation for the trend.
Dugan said “the third-quarter report will show many of the same disturbing trends as other recent mortgage reports, as credit quality continued to decline across the board and delinquencies rose for subprime, alt-A and prime mortgages”. Source, Reuters.com
Taxpayers Seeing Red over Homeowners Bail Outs! Taxpayers are mad – especially those who held off buying their own homes or were careful not to spend beyond their means.
NEW YORK (CNNMoney.com) — Ask most Americans whether they’re in favor of spending taxpayer dollars to help delinquent mortgage borrowers and you’re likely to get an emphatic “No!”
But the government didn’t ask its citizens before it committed hundreds of billions of taxpayer dollars to guarantee loans through various foreclosure prevention initiatives such as FHASecure and Hope for Homeowners, which let troubled borrowers refinance expensive mortgages into more affordable loans. Nor did it take a vote before it agreed to fund the new streamlined mortgage modification programs for loans backed by Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500). And now there is the possibility that some of the hundreds of billions of dollars allocated for the Treasury’s Troubled Assets Relief Program will go towards bailing out borrowers.
“All these people who bought homes they couldn’t really afford are going to be rewarded with loan modifications, but what about those of us who didn’t make stupid decisions?” asked Jay Black, a CNNMoney.com reader who rents in Queens, N.Y. Read the rest of the article. It may make you hopping mad. Source: CNN Money.com
Banks Will Not Account for Taxpayers Bailout Money, What is this all about?
With 50% of the bailout money already spent, wonder where all the money is being spent.? Uhhh, you really want to know? Its a Secret.
“But after receiving billions in aid from U.S. taxpayers, the nation’s largest banks say they can’t track exactly how they’re spending the money or they simply refuse to discuss it. “We’ve lent some of it. We’ve not lent some of it. We’ve not given any accounting of, ‘Here’s how we’re doing it,'” said Thomas Kelly, a spokesman for JP Morgan Chase, which received $25 billion in emergency bailout money. “We have not disclosed that to the public. We’re declining to.” “We’re not providing dollar-in, dollar-out tracking,” said Barry Koling, a spokesman for Atlanta, Ga.-based SunTrust Banks Inc., which got $3.5 billion in taxpayer dollars. Some banks said they simply didn’t know where the money was going. Source: My Way News
Can you believe this? Well, you know what the great banking institutions think of the American taxpayer?
With the feds printing, spending and bailing out any company that hollers for a bailout, what is the downside for the massive bailouts going to be in the future? Massive inflation anyone? Maybe not next year but inflation will be a nightmare waiting in the future.
Wake up folks, stop drinking Kool-Aid and believing a lying government. Who is going to pay for all the Monopoly money? We are! Hey, remember this, only 50% of Americans pay taxes.The big question is are we going to sit back and say nothing!