Obama trying to raise closing costs and mortgage rates for borrowers - FFUUBBO!

[Soul Crusher]

Obama's Fannie, Freddie plan may boost mortgage rates
http://www.washingtonpost.com/wp-dyn/content/article/2011/02/11/AR2011021102035_pf.html

By Zachary A. Goldfarb
Friday, February 11, 2011; 8:32 AM
________________________ ________________________ ______--



The Obama administration proposed raising fees for borrowers and requiring large down-payments for home loans as part of a long-term effort to reduce the government's outsized footprint in the housing market, but warned that these moves could increase mortgage rates and potentially reduce the availability of the 30-year fixed rate mortgage, a mainstay of American housing for decades.

In a long-awaited white paper, the administration said that it intends to wind down Fannie Mae and Freddie Mac, which together with the Federal Housing Administration provide more than 90 percent of housing finance, but said the process could take five or more years.

It discussed three options for replacing them, including a new government agency that would insure mortgages all the time, a new agency that would only step in during times of market crisis, and then a third option that does not provide any government backing for home loans beyond the FHA.

The administration warned that this no-government option "has particularly acute costs in its potential impact on access to credit for many Americans." The white paper also warned that this option could have the greatest impact on boosting mortgage rates and would make it difficult for community banks to compete in the housing market.

But it said the other options continue to put at risk taxpayers for bailing out the mortgage market in big declines.

Regardless of this longer-term overhaul, the administration suggested a range of new measures to make taking a government-backed mortgage more expensive and thereby making it more competitive for private sector firms to compete in offering mortgages.

These include reducing the size of mortgages Fannie and Freddie can purchase, from $729,750 now to $625,500 by this fall. It also includes phasing a 10 percent down payment require for the companies. Finally, it includes raising fees the companies charge to insure loans.

The administration also suggested scaling back FHA, which caters to first-time homebuyers with low down-payment options. It said it wants to reduce the size of loans that FHA can provide, increase fees by a quarter percentage point, and potentially raise the down payment require from 3.5 percent now to 5 percent in the future.

The report also emphasized the importance of rental housing for low and moderate-income communities.

Senior administration officials said they would take gradual steps, not to harm the already struggling housing market, but they said this plan laid the groundwork for the future of housing in America.

"This is a plan for fundamental reform-to wind down the [Fannie and Freddie], strengthen consumer protection, and preserve access to affordable housing for people who need it," said Treasury Secretary Tim Geithner. "We are going to start the process of reform now, but we are going to do it responsibility and carefully so that we support the recovery and the process of repair of the housing market."


________________________ ________________________ ______-


Obama the nation killer just cant stop can he? 

FUCK YOU whoever still supports this asshole. 

[Soul Crusher]

Great - higher interest costs to go to his buddies at the big banks. 


This incompetent marxist hack cant help himself from seeking ways to steal from everybody.   I'm convinced he wakes up everyday and the first thing that he conjurs up is "how can I fuck the american people worse today than I did yesterday?"

[Soul Crusher]

Funny thing is that the morons, fools, hacks, idiots, shills, lackeys, kneepadders, and dolts who still support this incompetent, moronic, idiotic, brain dead Admn see no connection with all these bizarre schemes and WTF policies and the miserable economy we have.   

Like they say, you can fool some of the people some of the time, and some of the people all of the time.   

[blacken700]

here is another one

 

[Straw Man]

Great - higher interest costs to go to his buddies at the big banks.  


This incompetent marxist hack cant help himself from seeking ways to steal from everybody.   I'm convinced he wakes up everyday and the first thing that he conjurs up is "how can I fuck the american people worse today than I did yesterday?"

aren't you in favor of scrapping Fannie and Freddie ?

[blacken700]

NBC


More than three years after the housing market collapsed, Congress and the White House have made virtually no headway cleaning up the financial quagmire left behind by the two government-sponsored mortgage giants, Fannie Mae and Freddie Mac.

On Friday, the Obama administration took its first tentative steps at sorting through the rubble. But it will likely take many more years — and hundreds of billions of dollars — before the mess can finally be cleaned up.

The White House stopped short of unveiling a broad, final plan for reforming the nation's housing finance system.  Instead, it proposed three approaches to winding down the two  agencies, now controlled by the federal government.  

[blacken700]

Treasury Report Outlines Path for Winding Down Fannie, Freddie

Published February 11, 2011
| Associated Press
  Print   Email   Share   Comments (448)   Text Size  WASHINGTON -- The Obama administration laid out three broad options Friday for reducing the government's role in the mortgage market. All three would almost certainly lead to higher interest rates and costs for borrowers.

The administration said in a report that the government should withdraw its support for the mortgage market slowly, over five years or more. The report describes a path for winding down the troubled mortgage giants Fannie Mae and Freddie Mac.

But rather than making a single recommendation, the administration offered Congress three scenarios and will let lawmakers shape the final policy.

The options are:

-- No government role, except for existing agencies like the Federal Housing Administration.



-- Government insurance for a targeted range of mortgage investments that already are guaranteed by private insurers. The government guarantee would kick in only if those private companies couldn't pay.

The private sector will assume a greater role in housing finance under all of the options. The government currently owns or guarantees more than 90 percent of new mortgages.

"Under any of the scenarios there's going to need to be more private capital in the housing system," said Michael Barr, who recently left his post as assistant treasury secretary to return to teaching at Michigan University Law School. "That's going to mean more pressure on interest rates."

The bailouts of Fannie and Freddie have cost taxpayers nearly $150 billion. Republicans have called for Fannie and Freddie to be abolished, and have largely blamed the two for leading the country into the 2008 financial crisis.

But there is a growing recognition that drastic action would upend the housing finance system, threatening the broader economy.

The report comes after years of debate about how to end the government's role in housing. The options have been discussed for years as well.

By handing the decision to Congress, the administration sidesteps one of the most complex and politically explosive questions facing the financial system. Any of the three options will almost certainly cause mortgage rates to rise.

Treasury Secretary Timothy Geithner said the Obama administration needed to defer to Congress on a final decision to avoid having a "monopoly on ideas." He said the housing industry was years away from recovery and that it would take five to seven years to dissolve Fannie and Freddie.

"We're going to drive West without knowing where we're going," Geithner said. "Somewhere around Salt Lake City, we'll have to make a choice."

A near-complete withdrawal by the government probably would end the popular 30-year fixed rate mortgage or, at least, make it more expensive. Banks would prefer adjustable-rate mortgages that would fluctuate with the markets.

However, all three options maintain some level of government support, either through guarantees or through existing agencies,such as the Federal Housing Administration.

Administration officials said the proposals will end the hybrid model of public-private companies that left the public on the hook for billions when Fannie and Freddie failed.

The housing finance system should guarantee access to affordable housing for Americans who can afford it, they said. To that end, any plan would increase support for rental housing, add safeguards for people in rural and underserved areas and preserve FHA loans for low- and moderate-income borrowers.

The report, issued jointly by the Treasury Department and the Department of Housing and Urban Development, suggests several short-term measures that would effectively increase the cost of taking out a government-backed mortgage. Other financing options would become more competitive, drawing private dollars back into the market.

These include reducing the maximum size of mortgages purchased by Fannie and Freddie by more than $100,000, to $625,000, by October. The companies would require 10-percent downpayments for all loans. And the fee for the government guarantee would increase.

Geithner said the plan to dissolve Fannie and Freddie would proceed "very carefully," and promised that the companies would have the cash they need to meet their existing obligations.

"We think there's very broad consensus on the Hill and in the broader private market that there needs to be a transition to a much smaller role for the government," he said.

The plan calls for changes beyond the government's massive support for mortgage finance. For example, it says there should be national standards for the companies that collect borrowers' monthly payments. Those companies, known as mortgage servicers, admitted last year to foreclosing on borrowers without filing the required legal papers.

[Soul Crusher]

Bama giving another bj to the banks.  Nice.

[Soul Crusher]

People will look back years from now in amazement that we did not remove this crazy admn sooner.

From top to bottom, its filled with loons who advocate nothing but WTF policies.

[Soul Crusher]

People will look back years from now in amazement that we did not remove this crazy admn sooner.

From top to bottom, its filled with loons who advocate nothing but WTF policies.

[blacken700]

so your saying you want Fannie, Freddie ,or are you against it because obama doing something about it 

[Straw Man]

People will look back years from now in amazement that we did not remove this crazy admn sooner.

From top to bottom, its filled with loons who advocate nothing but WTF policies.

we don't need to wait for years to realize you're crazier than a shit house rat

[Soul Crusher]

Yawn.  Keep kneepading. Only an obot like yourself would cheer higher rates and costs to middle class people to make up for the failures of ff and the banks and govt.

[blacken700]

so i'll take that as you want Fannie, Freddie  thank you

[Option D]

Yawn.  Keep kneepading. Only an obot like yourself would cheer higher rates and costs to middle class people to make up for the failures of ff and the banks and govt.

who bailed out the banks?

[Soul Crusher]

who bailed out the banks?

Bush/Paulson/Geithner/Obama/Bernake

Obama flew in to DC to support TARP remember genius?  He appointed the author of TARP to be the Tres Sec. remember genius?   He renominated the failure Bernake for Fed Chairmnan, remember genius?  He appointed Summers, one of the major forces who pushed Clinton to sign Glass Steagal repeal to be the economic advisor, remember that genius?

He took in more from FF than any other person, remember that?   

He took in more from GS, JPM, BOA, than anyone else, remember that?   

[Option D]

Bush/Paulson/Geithner/Obama/Bernake

Obama flew in to DC to support TARP remember genius?  He appointed the author of TARP to be the Tres Sec. remember genius?   He renominated the failure Bernake for Fed Chairmnan, remember genius?  He appointed Summers, one of the major forces who pushed Clinton to sign Glass Steagal repeal to be the economic advisor, remember that genius?

He took in more from FF than any other person, remember that?   

He took in more from GS, JPM, BOA, than anyone else, remember that?   

Well tell tony something.. because he said bush did it.. not obama

[Straw Man]

Yawn.  Keep kneepading. Only an obot like yourself would cheer higher rates and costs to middle class people to make up for the failures of ff and the banks and govt.

is this directed at me?

I'm sure it's not since you should be well aware of my position on the so called financial reform that is going on in this country

[Soul Crusher]

is this directed at me?

I'm sure it's not since you should be well aware of my position on the so called financial reform that is going on in this country

Obama has done absolutely nothing to help the average middle class person.   EVERYTHING is done to enrich the banks and screw over everyone else.   

[blacken700]

let me see if i can get this right, your saying he's a politician

[Soul Crusher]

let me see if i can get this right, your saying he's a politician

I'm saying that the best indication of what is going on with anything from this admn is to believe the opposite of whatever they say.   

How is adding closing costs and expenses to a mortgage good for anyone other than the banks?

[blacken700]

I'm saying that the best indication of what is going on with anything from this admn is to believe the opposite of whatever they say.                                                                                                              any[/u]


How is adding closing costs and expenses to a mortgage good for anyone other than the banks?

i agree

[Straw Man]

I'm saying that the best indication of what is going on with anything from this admn is to believe the opposite of whatever they say.  

How is adding closing costs and expenses to a mortgage good for anyone other than the banks?

increased closing costs are due to a huge increase in disclosures and potential financial consequences for not doing the disclosures correctly.  The new disclosures are more confusing and obfuscated then ever before.

The increase in appraisal costs are due to your new favorite governor and a deal he forced on Fannie/Freddie (and later adopted by FHA) that essentially put all the independent appraisers in this country out of business.

The whole thing is a cluster fuck which has only resulted in higher costs to the consumer and that will only continue to increase

If we scrap Fannie/Freddie or privatize it the result will be the loss of the implicit governent guarantee on mortgage backed securities and the result of the will be much higher mortgage rates (again good for banks and bad for the consumer)