New Obama Refinance Proposal Is Practically Worthless

Discussion in 'Politics' started by mudwhistle, Mar 6, 2012.

  1. mudwhistle
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    mudwhistle Diamond Member

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    Obama proposed to cut refinance fees on FHA loans in half today.

    Problem with that is it does nothing to help someone who is in a financial bind.

    The person it would help is someone who has a good paying job and just wants to refinance at a lower rate. It doesn't help someone who is about to lose their home to foreclosure, has lost their job, or is buried in debt.

    Obama doesn't offer to increase the debt to income ratio. He doesn't offer to let them refinance without re qualifying as they do on VA refis.

    The borrower would have to owe less than the value of the property and have good credit. And have a job.

    So this is just another attempt to appear like he cares about the Poor. The poor receives no benefit from this. There are no guarantees that anyone will even qualify for the proposed program.
     
  2. Avorysuds
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    Avorysuds Gold Member

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    The question everyone needs to ask themselves is, why do I keep paying anything when the Government can do that for me.
     
  3. Dante
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    Dante On leave Supporting Member

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    another right wing dolt praying for American economy to collapse in order for Obama to look bad
     
  4. zeke
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    zeke Gold Member

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    Obama is almost as powerless over this as over gasoline prices.

    FHA mortgages are sold into the secondary mortgage market just like conventional loans.
    I doubt that there are many/any buyers looking for borrowers with the problems you described.

    The only way Obama could help is if, through govt coerecion, they forced the banks to write down the value of the note and mortgage to reflect todays real estate values.

    And that ain't gonna happen. But is sure would help the economy. IMO.
     
  5. zeke
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    zeke Gold Member

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    Still have to have a good 12 month (in most cases) mortgage history on the VA IRRL. But I agree, if you have a good FHA loan with a paid as agreed 12 months, refi like VA does. Just rewrite the note and mortgage and go.

    Don't know why that couldn't happen.
     
  6. Syphon
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    Syphon BANNED

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    whats the GOP solution? do nothing and let them lose the house?
     
  7. francoHFW
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    francoHFW Platinum Member

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    So this progam doesn't help the poor, just some in the middle class....others do. ZZZZZZZZZZZZZZZZ

    Dittohead OUTRAGE!! Dumb....
     
  8. Peach
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    Peach Gold Member

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    The proposal will not be of much assistance.
     
  9. zeke
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    zeke Gold Member

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    Everybody knows the answer to that. You gotta give the real rich a big tax cut. Oh, and drill something.
    With out birth control. Or insurance. And Obamas gotta go.

    Yep that should do it. Housing? What housing. Rich people have housing.
     
  10. zeke
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    zeke Gold Member

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    MAy help some. Depends on what fees got reduced. If the Morrtgage Insurance Premium (MIP) is what got cut, that will help quite a bit. At least as to the amount financed.

    But secondary mortgage market buyers will not be looking for poor quality loans again for a long, long time. Already done that. And look what it got us.
     

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