Obama to Banks: Pay Off Underwater Mortgages

[freshjiva]

http://online.wsj.com/article/SB20001424052748703842004576162813248586844.html

Same old Presidential overreach of power.


U.S. Pushes Mortgage Deal
Obama Proposal Seeks Multibillion-Dollar Settlement of Loan-Servicing Cases

By NICK TIMIRAOS, DAN FITZPATRICK And RUTH SIMON

The Obama administration is trying to push through a settlement over mortgage-servicing breakdowns that could force America's largest banks to pay for reductions in loan principal worth billions of dollars.

Terms of the administration's proposal include a commitment from mortgage servicers to reduce the loan balances of troubled borrowers who owe more than their homes are worth, people familiar with the matter said. The cost of those writedowns won't be borne by investors who purchased mortgage-backed securities, these people said.

[Icymudpuppy]

Well, if the borrowers default, they'd be taking the loss anyway... Of course it's none of the government's business, but if I was such a borrower, I would do a strategic default anyway and stick the lender and their shareholders with the loss.

[Original_Intent]

Wait!!! I need to get my mortgage underwater!

Another bailout for those who were not careful and responsible on the backs of those who were.

[ItsTime]

Where do I sign up for one of these underwater mortgages?

[specsaregood]

More attempts to keep house prices propped up and hurt middle and lower income people looking to buy a home.

[HOLLYWOOD]

Must of been looking at these charts... B52's song Rock Lobster, "Down Down, Down..."

http://www.cnbc.com/id/41736833Home Prices in December HIT a new Low

Sales of New Homes Reached a 47-Year Low in 2010



http://blog.redfin.com/newyork/files/2011/02/Case-Shiller-Redfin-Markets_2010-12.png
http://blog.redfin.com/newyork/files/2011/02/Case-Shiller-Peak-Declines_2010-12.png

[PermanentSleep]

More: http://www.zerohedge.com/article/socialism-gone-apeshit-obama-wants-use-proceeds-20-billion-fraudclosure-settlement-reduce-un

Socialism Gone Apeshit: Obama Wants To Use Proceeds From $20 Billion Fraudclosure Settlement To Reduce Underwater Mortgages


Under the administration's proposed settlement, banks would have to bear the cost of all writedowns rather than passing them on to other investors. The settlement proposal focuses on pushing servicers who mishandled foreclosure procedures to eat losses, by writing down loans that they service on behalf of clients. Those clients include mortgage-finance giants Fannie Mae and Freddie Mac, as well as investors in loans that were securitized by Wall Street firms.” In other words, we have just reached the pinnacle of banana republic socialist insanity. In one fell swoop the teleprompter will not only grant reprieve to the banks for decades of fraudulent mortgage activity, but undercapitalize themselves and have them at risk for another liquidity run, which would of course mean another record multi-trillion taxpayer bailout. And the worst case: the 10 million or whatever underwater mortgages will get an average reduction of $2000 each. This is unfuckingbelieveable!


Of course the winner would be Obama's chances at getting reelected for a second term as teleprompter in chief. As for the outcome, now that the curve is flattening and the sad reality of the economic collapse is once again being appreciated, we will have a bank collapse that much sooner, leading to more trillions in taxpayer funded bail outs, so Wall Street can have another year of record bonuses, all the while the Chairsatan proceeds with QE 3, 4, 5, 6 and so forth. Which of course is the primary motive.

[emazur]

http://www.youtube.com/watch?v=P36x8rTb3jI