[mattduke]

Meant to post this here in response to Cygnus. I think the thread got moved.

$this->bbcode_second_pass_quote('Cynus', 'A')nger, anger, anger... OK, Cynus, keep it together, finish the post. Sure you sat on the sidelines saving up for your 20% deposit, sure you wouldn't take out an interest only ARM knowing what a timebomb they were, sure you remained debt free, and, OK, now the government is going to use your tax dollars to bail out the flippers, and the Wall Street scumbags who made all the money on a mountain of fraud, but just finish the post and then push all that rage into a little white hot star in your heart and save it for special occasions.

[Cid_Yama]

Mish's Take

http://globaleconomicanalysis.blogspot.com/

[jboogy]

I hear you loud and clear Cynus , That is an awesome tag-line. I'm gonna have to look that dude up.

[Plantagenet]

$this->bbcode_second_pass_quote('mmasters', ' ')See if the bank has a 500,000 dollar bad loan they have to write off they have to dig into their cash reserves to cover the cost, it's a big loss.

[Denny]

$this->bbcode_second_pass_quote('mmasters', 'M')any of us suspected this. ... And that's part of the big game, make a huge loan that can never be repaid and then loan more money so the original loan can keep being serviced, and so on... This is how the IMF operates. It's a pure slavery scheme.

[PrairieMule]

The two things we need to pay attention to this deal. First will be the FICO required/possible new underwriting stips and second the US goverment will be picking up the note.

My understanding of this deal stipulates the borr must have good credit hence slow pays and folks in arrears will not qualify. Slow pays on a Mortgage (1 or 2 late pays) can drop a good score from 620 to 550 very fast depending on other factors. Half the folks with their heads in a vice from these ARMs will not qualify. This will not be discovered until the loan is floated to underwiting and appraisal fees and money used to lock rates cannot be refunded.
I'm talking about $500-1000 paid upfront that homeowner really has not budgeted to begin with. So they end up using next months morgage payment and in a game of roulette.

The second issue is how do you feel about the US gov carring the note? Currently if you defaulted ,CH 7 would get you off the hook. Perhaps in the near future your new mortgage arrears could be "worked off" a few hours a a week in the sun at Camp Haliburton.

[mmasters]

$this->bbcode_second_pass_quote('Denny', '')$this->bbcode_second_pass_quote('mmasters', 'M')any of us suspected this. ... And that's part of the big game, make a huge loan that can never be repaid and then loan more money so the original loan can keep being serviced, and so on... This is how the IMF operates. It's a pure slavery scheme.

[Daculling]

$this->bbcode_second_pass_quote('', 'T')he president wants to work with Congress to temporarily suspend the tax liability that can take effect when borrowers lose their homes through short-sales, and when lenders forgive mortgage debt. That will enable borrowers to more easily rework their loans.

[mmasters]

$this->bbcode_second_pass_quote('Plantagenet', '')$this->bbcode_second_pass_quote('mmasters', ' ')See if the bank has a 500,000 dollar bad loan they have to write off they have to dig into their cash reserves to cover the cost, it's a big loss.

[Denny]

I listened to Bush tallking about the situation today. He seemed to be reading some kind of script, the words did not flow naturally from his mouth.

Anyway, at one point he commented that new forms of mortgages had opened the door to more Americans to "own" their own homes. What! How can you say somebody owns something when they actually have negative equity in it? Has Bush ever thought about the concept of a balance sheet as a way to demonstrate the equity of the owners?

I thought Bush had an MBA, but I guess those MBA synapses got burned out long ago. The way the national debt is going, who is to say who owns America anymore. I think pretty soon the govnerment will be using "sub-prime" financing for the debt as they are losing any fiscal credibility.

[Twilight]

Must have been a bought MBA, I get the feeling Bush would need negative equity explained slowly with animated diagrams.

The way things are going, who is to say who owns anything? It's a dangerous world where no-one knows what assets and liabilities they have.

[NEOPO]

$this->bbcode_second_pass_quote('Cid_Yama', 'T')hank you for the suggestion to post it in the Americas Section. Sorry I called you a NeoCon. Not shameless self-promotion, on OilDrum, Leanan prefers we post an exerpt and a link, which is what I did here. Can't help it if I was the one that wrote the editorial.

[NEOPO]

$this->bbcode_second_pass_quote('TommyJefferson', '')$this->bbcode_second_pass_quote('NEOPO', 'i')f the wealth was redistributed into the hands of the middle and poor class perhaps it would work yet that is most definately NOT what has occurred in the past nor what is occurring now.

[NEOPO]

$this->bbcode_second_pass_quote('mmasters', '')$this->bbcode_second_pass_quote('Denny', '')$this->bbcode_second_pass_quote('mmasters', 'M')any of us suspected this. ... And that's part of the big game, make a huge loan that can never be repaid and then loan more money so the original loan can keep being serviced, and so on... This is how the IMF operates. It's a pure slavery scheme.

[TommyJefferson]

$this->bbcode_second_pass_quote('NEOPO', 'W')orking from end to beginning, I did not say shit about how it "works"

[vision-master]

YOU ARE NOT CORRECT - THE MILITARY SUCKS UP THE MOST! GET IT?