Insolvency on the installment plan.

Insolvency on the installment plan.

That’s 750,000$ for each foreclosure? WTF?

http://www.cbo.gov/ftpdocs/93xx/doc9366/Senate_Housing.pdf

Congressional Budget Office estimates that the bill will help approximately 400,000 borrowers with an average loan amount of $170,000 between now and 2011. They are expecting a 25% foreclosure rate among existing alt-a and subprime loans for owner-occupied houses and a 20% program participation rate among those headed for the foreclosure. To be on the safe side, the bill is written to allow FHA to back “up to” 300b in new mortgages, but they think that the limit is very unlikely to be hit.

Mortgages to be purchased are probably worth 25 cents on the dollar on a good day.

Huh? We’re at least halfway out of the bubble, new mortgages would be full-doc and for up to 90% of market value the moment of issuance. Why would these mortgages be worth 25 cents on the dollar.

That’s 750,000$ for each foreclosure? WTF?

http://www.cbo.gov/ftpdocs/93xx/doc9366/Senate_Housing.pdf

Congressional Budget Office estimates that the bill will help approximately 400,000 borrowers with an average loan amount of $170,000 between now and 2011. They are expecting a 25% foreclosure rate among existing alt-a and subprime loans for owner-occupied houses and a 20% program participation rate among those headed for the foreclosure. To be on the safe side, the bill is written to allow FHA to back “up to” 300b in new mortgages, but they think that the limit is very unlikely to be hit.

Mortgages to be purchased are probably worth 25 cents on the dollar on a good day.

Huh? We’re at least halfway out of the bubble, new mortgages would be full-doc and for up to 90% of market value the moment of issuance. Why would these mortgages be worth 25 cents on the dollar.

That’s 750,000$ for each foreclosure? WTF?

http://www.cbo.gov/ftpdocs/93xx/doc9366/Senate_Housing.pdf

Congressional Budget Office estimates that the bill will help approximately 400,000 borrowers with an average loan amount of $170,000 between now and 2011. They are expecting a 25% foreclosure rate among existing alt-a and subprime loans for owner-occupied houses and a 20% program participation rate among those headed for the foreclosure. To be on the safe side, the bill is written to allow FHA to back “up to” 300b in new mortgages, but they think that the limit is very unlikely to be hit.

Mortgages to be purchased are probably worth 25 cents on the dollar on a good day.

Huh? We’re at least halfway out of the bubble, new mortgages would be full-doc and for up to 90% of market value the moment of issuance. Why would these mortgages be worth 25 cents on the dollar.

The entire purpose of this bill is two-fold:
1. To get the load of these mortgages off the backs of the banks and on to the Federal Govt. at a much lower loss to the banks than they are going to otherwise sustain. This action will pay back the money that the banks have been investing in lobbyists who have been greasing the skids for the politicians (like Dodd)
2. Make all the self-serving politicians who are pushing it to look like hero’s to enough voter’s that will keep them or their party in office and in control of your $$$$$$$$$$$$$$$$$$$$.

Our Congress has become so corrupt and it seems that nobody on the hill wants to do anything about it because the majority of them are receiving their juicy slice of the pie.

Bush says he will veto but from what I’m seeing, they may have enough votes to over-ride his veto. If this was coming up for a vote after January of next year, we wouldn’t be seeing all this good-spirited cooperation from both sides of the aisle because the elections would be a thing of the past.

The entire purpose of this bill is two-fold:
1. To get the load of these mortgages off the backs of the banks and on to the Federal Govt. at a much lower loss to the banks than they are going to otherwise sustain. This action will pay back the money that the banks have been investing in lobbyists who have been greasing the skids for the politicians (like Dodd)
2. Make all the self-serving politicians who are pushing it to look like hero’s to enough voter’s that will keep them or their party in office and in control of your $$$$$$$$$$$$$$$$$$$$.

Our Congress has become so corrupt and it seems that nobody on the hill wants to do anything about it because the majority of them are receiving their juicy slice of the pie.

Bush says he will veto but from what I’m seeing, they may have enough votes to over-ride his veto. If this was coming up for a vote after January of next year, we wouldn’t be seeing all this good-spirited cooperation from both sides of the aisle because the elections would be a thing of the past.