Financial Reform Legislation Includes Mortgage Aid for the Unemployed
By Tony Severino on Jul 27, 2010 in Govenment
While the main focus on financial reform has been on how the new rules and regulations will impact Wall Street
and “Main Street” when it comes to how investors, bankers and borrowers work together, Congress snuck in a little itty bitty 1 Billion into the “Wall Street Reform” bill. This is a $1 billion “emergency homeowner’s relief fund” that can be distributed starting October 1 of this year[1].
An additional $1 billion has been allocated for redeveloping abandoned and foreclosed homes. How is that Wall Street reform???
While the details and allocation of these funds has not yet been made public, (which to me is rather scary) unemployed homeowners currently can receive at least 3 months forbearance on mortgage loans through HAUP (Home Affordable Unemployment Program). Currently, states determined to be “hardest hit” receive extra federal funds for foreclosure prevention, but the new monies are to be allocated to help unemployed homeowners in all parts of the country who find themselves unable to sell their homes, make their payments or borrow against their home to keep themselves afloat. The term hardest hit is kinda of subjective, and not a fair and equitable distribution to everyone… (i’m just sayin…)
Do you think that this program will be effective? Do you think this is simply putting a tiny band aid on a massive wound,…. or do you think that the federal government has no business in providing this type of support.
1] http://www.marketwatch.com/story/bank-reform-brings-mortgage-aid-for-the-unemployed-2010-07-22
Popularity: 8% [?]
8 Comment(s)
By Josie on Jul 27, 2010 | Reply
Tony
I hate it when the government bails people out who made mistakes and then expect us to bail them out. Now this is just a band-aid, and it will not SOLVE anything. It just lengthens the process of getting these houses back on the market for people who can actually afford em.
If Obama wants to fix anything…. lets get the people to work in private sector… then the economy can turn around…
I read last night that the “true” unemployment is over 20%… with all ythe folks who dropped off or lost the benefits.
STOP SPENDING MY TAX MONEY ON PEOPLE WHO FAILED!!!.
Josie in Cali
By Cynthia in Canada on Jul 27, 2010 | Reply
Dear Friends in the U.S.A.,
I am a Canadian and Canada is known in the world for being a compassionate Country – Thanks be to God.
All governments have an utmost responsibility to protect and grow the socio-economic good. That helps the whole country, for when its people are doing well the nation is doing well. It is also good that the government provide for regulation of Wall St. and “Main St.” – those banks and mortgage brokers, etc., and they know who they are, who caused the roof to blow off the American economy in especially 2008 and who led the otherwise non-qualifying mortgage borrowers obtain financing when, for example in Canada they never would have. It appears the mortgage lenders, etc., became greedy and unethical in their behavior and perhaps thought they themselves would end up with the houses, not caring about the individuals and families who would be left in dire straits and having to apply for social assistance – that costs tax-payers, too. As for job losses, that is tragical and only serves to compound the problem.
I hope and pray the U.S. will “get back up on its feet” economically – for everybody’s good.
By Janet on Jul 27, 2010 | Reply
Tony, and everyone who reads this…
I want to say I voted for Obama, however I am irritated with the way he is spending money we don’t have. Isnt that the same mindset of the people who borrowed more than they could afford to buy these houses?
Maybe I am missing something… Compassion, I get that. Compassion is due to those who are in straits due to things that are beyond their own doings. Compassion isn’t due to those who lie on loan apps, who cant afford houses and such.
I am a loan officer, and its tough now.. But… this is a choice I made to be in this business. Like Tony says, if its tough its time to shift. So even though its tight, its tight because I chose to be in this business, and its a consequence of my action and choice to go in this industry. I have sold what I have to in order to make things work.. It sucks, but its what I gotta do
Now for the bail out to those who cant pay the mortgage.. THIS PISSES ME OFF… they get money for not making their payments????? BS!!!
Its time to cut off the spending… and time to get people back to work. so simple a cave man can do it, but not congress or the white house.. I will NOT be voting for these guys again. They fooled me once… not Twice
Janet
By Richard in SC on Jul 27, 2010 | Reply
Tony,
This is all about smoke and mirrors from the Bankers. These banks don’t give a hoot about the distressed homeowners. It’s all about extending the mortgage payments and having guaranteed payments coming in to the investor/lenders. The banks created this mess and we expect them to get us out. Don’t think it’s gonna happen. WHO WROTE THE BILL. The bankers. Feathering the lenders nest in the midst of a homeowners demise, that’s what you are witnessing. Legal theft from the US taxpayers. Most of the loans are guaranteed by the Gov and upon the foreclosure,the lenders file a claim to recover the losses in full.
They then turnaround and sell the asset at today’s market value and pocket that money. They get paid out on bad loans, twice. This new provision is nothing more than another scam from Wall Street. The idea of 3 months forbearance on mortgage loans through HAUP for unemployed: it only is a delaying of the inevitable future foreclosure. No jobs, no mortgage payments to the bankers. Smoke and mirrors in the name of a helping hand (HAUP), created by the Bankers for the benefit OF the Bankers.
By George on Jul 27, 2010 | Reply
The problem is people are out of work. This does absolutely nothing to solve the problem….they might as well just burn the money. On the other hand, they could “loan” it to the small businesses of this country, which would create jobs, and the small businesses would actually pay the money back. Guess that’s too simple.
By Fabio Sekoff on Jul 27, 2010 | Reply
We knew what this government was gonna be like way before the election…And history repeats itself, Ancient Rome, Europe, the 1930′s Great depression Bailouts (10 yrs we blindly threw billions of dollars at the economy and unemployment remained the same. By Henry Morgenthau Jr Treasury Secretary 1934-1945) “First New Deal” (1933) and a “Second New Deal” 1934–36)two bailouts…sounds familiar?
“In this present crisis, government is not the solution, government is the problem” -Ronald Reagan
But with that said, more Millionaires & Billionaires came out of the great depression,
Opportunity lies in every adversity…”Search for the seed of good in every adversity..”
—Og Mandino
Unprecedented wealth will be created or transferred in this economy, the question remains, will we position ourselves to get some of it?
By Sami on Jul 28, 2010 | Reply
In my opinion is bill is to help the banks get more money. If the unemployed person didn’t get a job within the designated time frame he will back in the same situation. They give you lollipop to taste it and they take it away from you.
By Cynthia in Canada on Aug 1, 2010 | Reply
I agree that people should not lie on loan applications or anything – but just say it like it is. However, I was referring to those Wall St. investors (those individuals know who they are)and those bankers and those mortgage brokers who apparently did not bother to verify income, proof of funds, employment references, etc. and notwithstanding still went ahead and gave out those mortgage loans to, really, non-qualifying applicants. These parties all erred. In Canada, banks verify all the above for applicants – always.
I believe that if the state and federal governments did nothing to correct the resulting market and economic mess, the nation would be far more dramatically worse off.
The Canadian federal government did also provide ‘bail out’ funds, but has stated it will stop this sometime in 2011.
When intervention is needed, it’s needed, even regardless of fault. But, money also should not be continued to be excessively printed without regard for current and future generations’ indebtedness. Wisdom, Prudence and Balance are clearly needed.
I also agree, the government and the banks should more readily fund/finance small businesses/entrepreneurs, who clearly have historically created much employment.
God bless the U.S.A. and Canada, then.