Foreclosure rescue to pass Senate; House next

[Terri]

By JULIE HIRSCHFELD DAVIS
Associated Press
July 11, 2008

WASHINGTON (AP) -- Struggling homeowners who can't afford their mortgages and banks facing big losses would get government help under a foreclosure rescue that has broad bipartisan support.

The plan is headed for Senate passage Friday, but faces a bumpy road, with the House planning a rewrite and the White House threatening a veto without major changes.

With the last procedural hurdles scaled Thursday, the package was on track for resounding approval in the Senate. It has drawn broad support in the Senate, reflecting widespread interest by lawmakers in both parties in sending election-year help to struggling homeowners facing tough economic times.

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[ddrinsp]

Doesn't anyone in government remember the Savings and Loan Crisis (1986 to 1995) which was caused primarily due to unsound real estate lending and high risk (ARM) loans? That government bailout ended up costing approximately $124.6 billion.
Now taxpayers are expected to fund another government bailout for the present mortgage finance crisis. Doesn't anyone understand that as long as lenders (and borrowers) have someone else (the government, i.e. taxpayers) to rescue them from their irresponsible lending and borrowing, it only encourages them to repeat that same irresponsibility again . . . and again? Those who are fully responsible for their actions behave differently from they way they behave if they know someone is there to continually rescue them. In parenting, it's called "tough love."
I agree we have no choice other than an attempt at government-backed mortgages to help struggling homeowners -- but IMHO struggling homeowners who need $625,000 mortgages? (and House leaders want a cap as high as $730,000?). A bailout for irresponsible and unethical lenders who helped cause this mortgage crisis definitely sticks in my throat. Gag!

Well, at lease I feel a little better . . . just airing my opinion and distaste for the whole situation.

[john w k]

Isn’t it great to be a Washington Establishment insider?

SEE : Total compensation of Fannie Mae CEO down in 2007

Daniel Mudd, president and chief executive of Fannie Mae, will receive a total of roughly $12.21 million in salary, bonus and a long-term incentive award for 2007, a decrease from the year before.
Last year, Mudd was paid a base salary of $990,000, a bonus of about $2.2 million and long-term compensation of $9 million, according to a statement from Fannie Mae (NYSE: FNM).
The D.C.-based mortgage finance company said that Mudd in 2006 received nearly $14.45 million in salary, bonus and long-term incentive award.

Keep in mind Fannie Mae is a creature created by Congress! The Washington Establishment political plum job empire will survive very well with Obama or McCain, and Mary and Joe Sixpack, asleep at the switch, will remain its tax slaves, there to pay the bills on our federal plantation!



JWK

"To lay with one hand the power of the government on the property of the citizen and with the other to bestow upon favored individuals, to aid private enterprises and build up private fortunes is none the less a robbery because it is done under forms of law and called taxation." ____ Savings and Loan Assc. v. Topeka,(1875).

[schillerbjr]

Government bailouts, GOD HELP US!!

[azwhitewolf]

I make my house payment on time. I watched my finances, kept my credit score clean, and secured a house at a great loan rate.

What do I get?

Oh, right. The same as somebody who was irresponsible with finances, had a craptastic credit score took out a garbage loan and failed.

Sounds to me like some of these "homeowners" should have been "renters" if they couldn't afford the responsibility. We spent $200.00 so a lawyer could sit with us and interpret the legal jargon into laymans terms while we were signing the papers. In other words, we spent MORE to completely understand what we were doing. For this very reason.

Last year, Mudd was paid a base salary of $990,000, a bonus of about $2.2 million and long-term compensation of $9 million, according to a statement from Fannie Mae (NYSE: FNM).

That's a fair salary.

For someone who knows how to do the job, I mean.

/Capitalism, anyone?
//personal responsibility, perhaps?

[john w k]

Fannie Mae was created under the FDR administration. That’s all you need to know as to why responsible people like you get the shaft.

JWK


“He has erected a multitude of new offices (Washington‘s existing political plum job Empire) , and sent hither swarms of officers, to harass our people, and eat out their substance” ___Declaration of Independence