veronica_rich (![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
veronica_rich) wrote2007-08-31 12:45 pm
veronica_rich) wrote2007-08-31 12:45 pm
Good economy? Bad economy? Pick a day!
My irritation with the news story I posted this morning was in jest; this, sadly, is not.
Bush outlines aid for mortgage holders
By DEB RIECHMANN
Associated Press Writer
WASHINGTON - President Bush on Friday outlined ways to help homeowners facing foreclosure — the administration's first effort to deal with an expected wave of defaults fueled by the mortgage crisis.
The initiatives, which are not aimed at bailing out lenders or speculators, are designed to help homeowners with risky mortgages keep their houses. In remarks in the Rose Garden, Bush also discussed efforts to keep the problems from arising in the future.
"The government's got a role to play, but it is limited," Bush said. "A federal bailout of lenders would only encourage a recurrence of the problem."
The president insisted that the U.S. economy was strong and could weather recent turbulence in the financial markets. He said the mortgage market, especially the subprime sector, has shown particular strain. One of the most troubling developments has been an increase in adjustable-rate mortgages, which start out with low interest rates, then reset to higher rates after a few years.
"This has led some homeowners to take out loans larger than they could afford based on overly optimistic assumptions about the future performance of the housing market," Bush said. "Others may have been confused by the terms of their loan, or misled by irresponsible lenders. Whatever the reason they chose this kind of mortgage, some borrowers are now unable to make their monthly payments, or facing foreclosure."
A key element of Bush's plan would allow homeowners with good credit histories, but who cannot afford their mortgage payments, to refinance into mortgages insured by the Federal Housing Administration to keep from defaulting.
Earlier this month, Bush predicted that the ongoing decline in the housing market wouldn't become precipitous, but would result in a "soft landing."
He rejected any direct government aid to homeowners losing their houses to foreclosures, saying he only supported federal government help that would encourage refinancing and educate prospective home buyers about risky mortgage terms.
"Anybody who loses their home is somebody with whom we must show enormous empathy," the president said at an Aug. 9 news conference. "The word `bailout,' I'm not exactly sure what you mean. If you mean direct grants to homeowners, the answer would be no, I don't support that."
On Friday, Bush:
• Urged Congress to pass legislation that would give the Federal Housing Administration more flexibility to help mortgage holders with subprime mortgages.
• Pledged to work with Congress to reform the tax code to help troubled borrowers rework their loans.
• Called for rigorously enforcing predatory lending laws and strengthening lending practices.
Foreclosure and late payments have spiked, especially for so-called subprime borrowers with blemished credit histories or low incomes. Higher interest rates and weak home values have made it impossible for some to pay or to keep up with their monthly mortgage payments. Some overstretched homeowners can't afford to refinance or even sell their homes.
Mortgage foreclosures and late payments are expected to worsen. Some 2 million adjustable rate mortgages are to reset to higher rates this year and next. Steep penalties for prepaying mortgages have added to some homeowners' headaches.
The economy enjoyed a strong revival in the spring although growing troubles in housing and credit markets have darkened prospects considerably since then. The Commerce Department reported Thursday that the gross domestic product grew at an annual rate of 4 percent in the second quarter — the strongest showing in more than a year.
But that growth could be the best showing for some time as the economy continues to be battered by the worst housing slump in 16 years and a widening credit crisis that has sent financial markets on a roller-coaster ride in recent weeks.
The bolded statements above are my emphasis. First of all, it was this jerk and his cronies who told everyone to run out and BUY homes (and cars, and electronics, and expensive shit) a few years ago, to prop up the sagging economy (which is still as low as pair of 80-year-old tits, by the way) and because values could only go up, up, up! And then HE is going to preach about people not assessing the market properly (I won't even get into the blatant falsehood that is the American Stock Market, propped entirely by a few of his rich cronies and, likely, foreign investors) and getting in over their heads?
Brave words from a man who doesn't pay the mortgage on the house HE'S living in at D.C.
And then he points out how people might've been misled by unscrupulous lenders. So ... what kind of action will be taken against those kinds of lenders? I understand that's not his bailiwick, but he *could* pretend to exert some influence over Congress to pass a law or something, making it a felony to have promised someone a low mortgage and then jack it up on them.
This is why I'm glad I still rent. My money wouldn't be doing much good in a house right now, would it?
And then I also saw an article posted about how consumer spending in the U.S. was up in July. I wonder if that was from the foreclosure evacuees buying supplies to live in their cars and campers?
Bush outlines aid for mortgage holders
By DEB RIECHMANN
Associated Press Writer
WASHINGTON - President Bush on Friday outlined ways to help homeowners facing foreclosure — the administration's first effort to deal with an expected wave of defaults fueled by the mortgage crisis.
The initiatives, which are not aimed at bailing out lenders or speculators, are designed to help homeowners with risky mortgages keep their houses. In remarks in the Rose Garden, Bush also discussed efforts to keep the problems from arising in the future.
"The government's got a role to play, but it is limited," Bush said. "A federal bailout of lenders would only encourage a recurrence of the problem."
The president insisted that the U.S. economy was strong and could weather recent turbulence in the financial markets. He said the mortgage market, especially the subprime sector, has shown particular strain. One of the most troubling developments has been an increase in adjustable-rate mortgages, which start out with low interest rates, then reset to higher rates after a few years.
"This has led some homeowners to take out loans larger than they could afford based on overly optimistic assumptions about the future performance of the housing market," Bush said. "Others may have been confused by the terms of their loan, or misled by irresponsible lenders. Whatever the reason they chose this kind of mortgage, some borrowers are now unable to make their monthly payments, or facing foreclosure."
A key element of Bush's plan would allow homeowners with good credit histories, but who cannot afford their mortgage payments, to refinance into mortgages insured by the Federal Housing Administration to keep from defaulting.
Earlier this month, Bush predicted that the ongoing decline in the housing market wouldn't become precipitous, but would result in a "soft landing."
He rejected any direct government aid to homeowners losing their houses to foreclosures, saying he only supported federal government help that would encourage refinancing and educate prospective home buyers about risky mortgage terms.
"Anybody who loses their home is somebody with whom we must show enormous empathy," the president said at an Aug. 9 news conference. "The word `bailout,' I'm not exactly sure what you mean. If you mean direct grants to homeowners, the answer would be no, I don't support that."
On Friday, Bush:
• Urged Congress to pass legislation that would give the Federal Housing Administration more flexibility to help mortgage holders with subprime mortgages.
• Pledged to work with Congress to reform the tax code to help troubled borrowers rework their loans.
• Called for rigorously enforcing predatory lending laws and strengthening lending practices.
Foreclosure and late payments have spiked, especially for so-called subprime borrowers with blemished credit histories or low incomes. Higher interest rates and weak home values have made it impossible for some to pay or to keep up with their monthly mortgage payments. Some overstretched homeowners can't afford to refinance or even sell their homes.
Mortgage foreclosures and late payments are expected to worsen. Some 2 million adjustable rate mortgages are to reset to higher rates this year and next. Steep penalties for prepaying mortgages have added to some homeowners' headaches.
The economy enjoyed a strong revival in the spring although growing troubles in housing and credit markets have darkened prospects considerably since then. The Commerce Department reported Thursday that the gross domestic product grew at an annual rate of 4 percent in the second quarter — the strongest showing in more than a year.
But that growth could be the best showing for some time as the economy continues to be battered by the worst housing slump in 16 years and a widening credit crisis that has sent financial markets on a roller-coaster ride in recent weeks.
The bolded statements above are my emphasis. First of all, it was this jerk and his cronies who told everyone to run out and BUY homes (and cars, and electronics, and expensive shit) a few years ago, to prop up the sagging economy (which is still as low as pair of 80-year-old tits, by the way) and because values could only go up, up, up! And then HE is going to preach about people not assessing the market properly (I won't even get into the blatant falsehood that is the American Stock Market, propped entirely by a few of his rich cronies and, likely, foreign investors) and getting in over their heads?
Brave words from a man who doesn't pay the mortgage on the house HE'S living in at D.C.
And then he points out how people might've been misled by unscrupulous lenders. So ... what kind of action will be taken against those kinds of lenders? I understand that's not his bailiwick, but he *could* pretend to exert some influence over Congress to pass a law or something, making it a felony to have promised someone a low mortgage and then jack it up on them.
This is why I'm glad I still rent. My money wouldn't be doing much good in a house right now, would it?
And then I also saw an article posted about how consumer spending in the U.S. was up in July. I wonder if that was from the foreclosure evacuees buying supplies to live in their cars and campers?
no subject
1) It troubles me that he either doesn't understand or chooses not to understand the conect of a "bailout".
2) Why wasn't something done over a year ago? It's not exactly a surprise that the housing market has been in a slump for at least that long, due in no small part to public panic.
no subject
no subject
Having bought a home 6 years ago I have little sympathy for home buyers who pissed away their money based on the advice of mortgage "brokers." Ironic term that.
There was a lot of info online even 7 years ago about home buying. One of the first things I learned was SINCE NO ONE CAN PREDICT THE FUTURE, the adjustable rate mortgage (it ain't termed "adjustable" for nothing) is a no-no. So are mortgage companies or brokers for the reason that they are in the business to turn mega-profits.
The only thing I wish someone had warned me about is that taxes and insurance don't just go up, they can go up A LOT, especially as market values increase. But taxes, unlike other things, usually never go down even when market values do.
no subject