Bush Proposes Mortage Bailout: Swingers Discussion 85928

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TOPIC: Bush Proposes Mortage Bailout

Created by: Lucky2haveU Original Starting post for this thread:
Part 2 which contains the workings of this proposal. Likes, dislikes OK Liberals step up looks like he got his in before congress did. Slow action from congress, spells disaster in Febuary through November 2008. Under the Bush proposal, which FHA officials said would take effect immediately, an estimated 60,000 homeowners who have fallen behind on payments because their mortgages have reset would be able to refinance with FHA-insured loans. That marks a significant change because FHA does not now insure refinanced loans from borrowers who are currently delinquent. "This means that many families who are struggling now will be able to refinance their loans, meet their monthly payments and keep their homes," Bush said. To qualify for the new program, being called FHA Secure, a borrower will have to prove the original loan was being repaid until it reset to a higher rate and they must have 3 percent equity in the home. The FHA does not supply the mortgage loan but it guarantees loans extended by banks and other lenders. Currently, the maximum loan the FHA can guarantee in most states is $202,000 although that can rise to $362,000 in high-cost states such as California and New York. The administration is supporting FHA overhaul legislation to lift those limits. FHA officials said another 20,000 people would be helped by a new type of risk-based pricing for its loan guarantees that will let lower income mortgage holders qualify by paying slightly higher premiums. This change, which will require the FHA to change its rules, is expected to take effect early next year after a public comment period. The 80,000 additional people who would qualify for FHA loan guarantees under the proposed changes Bush announced would still be a tiny portion of an estimated 2 million homeowners whose adjustable rate mortgages are scheduled to reset at higher rates by the end of 2008. Of those 2 million loans that will reset, FHA estimates that 500,000 could go into foreclosure. The new programs plus current FHA programs could help about half of those 500,000 loans be refinanced, officials said. As another part of his mortgage package, Bush said he would support legislation pending in Congress that would temporarily change tax law to let homeowners avoid paying taxes on forgiven debt in loans being restructured by financial institutions. Sen. Debbie Stabenow, a Democrat from Michigan, a state particularly hardhit by foreclosures because of auto industry layoffs, is sponsoring that legislation. Bush's proposals follow a number of measures already introduced in Congress to deal with the mortgage lending crisis. Many Democrats said while they welcomed Bush's ideas, they felt they did not go far enough and should be modified to help more people. "These are welcome steps, but the president's proposal does not go far enough," said Sen. Barack Obama of Illinois and a Democratic presidential candidate. "I have called for a plan that will help far more struggling borrowers avoid foreclosure."

Created by: Lucky2haveU
Original Starting post for this thread:

Part 2 which contains the workings of this proposal. Likes, dislikes
OK Liberals step up looks like he got his in before congress did. Slow action from congress, spells disaster in Febuary through November 2008.
 
Under the Bush proposal, which FHA officials said would take effect immediately, an estimated 60,000 homeowners who have fallen behind on payments because their mortgages have reset would be able to refinance with FHA-insured loans. That marks a significant change because FHA does not now insure refinanced loans from borrowers who are currently delinquent.

"This means that many families who are struggling now will be able to refinance their loans, meet their monthly payments and keep their homes," Bush said.

To qualify for the new program, being called FHA Secure, a borrower will have to prove the original loan was being repaid until it reset to a higher rate and they must have 3 percent equity in the home. The FHA does not supply the mortgage loan but it guarantees loans extended by banks and other lenders.

Currently, the maximum loan the FHA can guarantee in most states is $202,000 although that can rise to $362,000 in high-cost states such as California and New York. The administration is supporting FHA overhaul legislation to lift those limits.

FHA officials said another 20,000 people would be helped by a new type of risk-based pricing for its loan guarantees that will let lower income mortgage holders qualify by paying slightly higher premiums. This change, which will require the FHA to change its rules, is expected to take effect early next year after a public comment period.

The 80,000 additional people who would qualify for FHA loan guarantees under the proposed changes Bush announced would still be a tiny portion of an estimated 2 million homeowners whose adjustable rate mortgages are scheduled to reset at higher rates by the end of 2008. Of those 2 million loans that will reset, FHA estimates that 500,000 could go into foreclosure. The new programs plus current FHA programs could help about half of those 500,000 loans be refinanced, officials said. 

As another part of his mortgage package, Bush said he would support legislation pending in Congress that would temporarily change tax law to let homeowners avoid paying taxes on forgiven debt in loans being restructured by financial institutions. Sen. Debbie Stabenow, a Democrat from Michigan, a state particularly hardhit by foreclosures because of auto industry layoffs, is sponsoring that legislation. 

Bush's proposals follow a number of measures already introduced in Congress to deal with the mortgage lending crisis. Many Democrats said while they welcomed Bush's ideas, they felt they did not go far enough and should be modified to help more people. 

"These are welcome steps, but the president's proposal does not go far enough," said Sen. Barack Obama of Illinois and a Democratic presidential candidate. "I have called for a plan that will help far more struggling borrowers avoid foreclosure."

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User Details are only visible to members.	Lucky it is not the government business to bail people /companies out of mistakes that they have made. Now as a Mortgage broker I am looking foward to anything that can this market going again. However I am of the firm opinion that the market will eventually sort itself out.
Fayetteville GA			Username hidden (2075 post)

User Details are only visible to members.	isn't the old school republican platform SMALL government... this guy (bush) is not even really a republ on most economic issues... don't think the govern should get involved at all... btw, same thoughts on the stock market. i am no market expert but i think it's funny that the market drops 200 points one day and then the next day someone say "don't worry we will lower the interest rates" and then it goes up 200 points. what the F?
Philadelphia PA			Username hidden (5330 post)

User Details are only visible to members.	OK but spacificlly what about it dont you like, I wasnt asking about Bush but the Idea, I dont like any plan where I pay for someone elses error in judgement.
Saint Louis MO			Username hidden (12119 post)

User Details are only visible to members.	Bush is getting to be a huge disapointment
Fayetteville GA			Username hidden (2075 post)

User Details are only visible to members.	Sen. Charles Schumer, D-N.Y., said he believed Bush's announcement Friday represented a major ideological shift for the administration, which has generally favored free-market solutions to problems rather than increased government involvement. "The president has gotten out of his ideological straitjacket and seen that in times of crisis, one of the jobs of government is to help," Schumer told reporters at a Capitol Hill news conference. Bush also urged Congress to modernize and improve the FHA so more homeowners could qualify for the mortgage insurance the agency provides, saying, "I look forward to signing a bill as quickly as possible." Last year the House passed legislation to modernize FHA, but Congress has not yet sent a bill to the White House.
Saint Louis MO			Username hidden (12119 post)

User Details are only visible to members.	Part 2 which contains the workings of this proposal. Likes, dislikes OK Liberals step up looks like he got his in before congress did. Slow action from congress, spells disaster in Febuary through November 2008. Under the Bush proposal, which FHA officials said would take effect immediately, an estimated 60,000 homeowners who have fallen behind on payments because their mortgages have reset would be able to refinance with FHA-insured loans. That marks a significant change because FHA does not now insure refinanced loans from borrowers who are currently delinquent. "This means that many families who are struggling now will be able to refinance their loans, meet their monthly payments and keep their homes," Bush said. To qualify for the new program, being called FHA Secure, a borrower will have to prove the original loan was being repaid until it reset to a higher rate and they must have 3 percent equity in the home. The FHA does not supply the mortgage loan but it guarantees loans extended by banks and other lenders. Currently, the maximum loan the FHA can guarantee in most states is $202,000 although that can rise to $362,000 in high-cost states such as California and New York. The administration is supporting FHA overhaul legislation to lift those limits. FHA officials said another 20,000 people would be helped by a new type of risk-based pricing for its loan guarantees that will let lower income mortgage holders qualify by paying slightly higher premiums. This change, which will require the FHA to change its rules, is expected to take effect early next year after a public comment period. The 80,000 additional people who would qualify for FHA loan guarantees under the proposed changes Bush announced would still be a tiny portion of an estimated 2 million homeowners whose adjustable rate mortgages are scheduled to reset at higher rates by the end of 2008. Of those 2 million loans that will reset, FHA estimates that 500,000 could go into foreclosure. The new programs plus current FHA programs could help about half of those 500,000 loans be refinanced, officials said. As another part of his mortgage package, Bush said he would support legislation pending in Congress that would temporarily change tax law to let homeowners avoid paying taxes on forgiven debt in loans being restructured by financial institutions. Sen. Debbie Stabenow, a Democrat from Michigan, a state particularly hardhit by foreclosures because of auto industry layoffs, is sponsoring that legislation. Bush's proposals follow a number of measures already introduced in Congress to deal with the mortgage lending crisis. Many Democrats said while they welcomed Bush's ideas, they felt they did not go far enough and should be modified to help more people. "These are welcome steps, but the president's proposal does not go far enough," said Sen. Barack Obama of Illinois and a Democratic presidential candidate. "I have called for a plan that will help far more struggling borrowers avoid foreclosure."
Saint Louis MO			Username hidden (12119 post)

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TOPIC: Bush Proposes Mortage Bailout

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