It appears now that Republicans are getting in on the socialism craze. You have thousands of people who can't qualify for certain traditional mortgages and, for various reasons, were smart enough not to fall for the variable teaser rate mortgages. Well, those people are the dumb ones now. It looks like Paulson and the President will bail these variable rate buyers out. Go figure!!! I guess they are using the same logic with the mortgage problem that they are using with illegal immigration.
Lets compare the 2 arguments made by the Federal government. They say; "we can't allow these risky, unqualified buyers to default on their loans".
What do they say about the illegal immigrants in this country? "We can't just send them back to Mexico now that they are already here".
How pathetic is that??????
Below is a portion of the article as reported by the AP writer Martin Crutsinger.
Treasury Secretary Henry Paulson said Monday he is confident there will soon be an agreement to help thousands of homeowners avoid mortgage defaults by temporarily freezing their interest rates.
Paulson told a national housing conference that this effort involved a "pragmatic response"
(They mean SOCIALIST approach)
to current realities as the economy goes through the worst housing slump in more than two decades. The number of homeowners struggling to meet higher payments because their initial introductory rates are resetting is currently soaring.
Paulson and other top Treasury officials have been holding talks with major players in the mortgage industry over the past several weeks to hammer out an agreement that would freeze the lower introductory rates to keep them from resetting to higher levels for a period of years.
An estimated 2 million sub prime mortgages, loans offered to borrowers with spotty credit histories, are scheduled to reset to much higher levels by the end of 2008. Those resets will push the payment on a typical mortgage up by $350 per month, taking it from $1,200 currently to $1,550.
Paulson said he believed the disagreements can be resolved without delay. Some expect the administration to unveil the completed deal later this week, but Paulson was not as specific in his remarks, saying only, "I am confident they will finalize these standards soon."
Paulson said he believed the mortgage industry would move to implement the new program quickly and would also adopt benchmarks to measure progress going forward.
The new program is being aimed at homeowners who have steady incomes and relatively clean repayment histories who could afford the lower introductory mortgage rates but cannot afford the higher adjusted rate.
(Hey MORONS, they all fit in that category. That's how they got into the home to begin with).
The rate freeze is part of a three-pronged program the administration is pushing that also includes stepping up efforts to contact at-risk homeowners and encouraging creation of new programs that would embrace more affordable loans to homeowners who would like to refinance to mortgages with lower payments.
(WHO WOULDN'T WANT TO REFINANCE TO A MORTGAGE WITH A LOWER PAYMENT?????).
He also called on Congress to pass a number of pending bills that would address the housing crisis in such ways as expanding the availability of Federal Housing Administration insured loans and boosting government oversight of mortgage giants Fannie Mae and Freddie Mac.
(As soon as the govt begins to control what Freddie Mac and others do, they will never let go. They will go from oversight to complete control).
The administration has come under criticism from Democrats who have complained that the proposals put forward so far have been too modest in light of the crisis facing the housing industry and the threat that the housing slump could trigger a full-blown recession. (The Republicans should ALWAYS be happy when they come under criticism from the Dem's)
That is as close as I come to cussing.