Mark Zandi wants an expanded bailout for homeowners

[Effective Demand]

Mark Zandi:
“The administration and Congress should therefore prepare a plan B. And it must be simple: For example, anyone who got a mortgage from 2005 to 2008 on a home they live in that was inherently unaffordable at origination – their debt-to-income ratio exceeded 31% or the loan was more than 90% of the home’s value – qualifies for a loan modification that reduces the principal to the current appraised value of the home. Taxpayers would bear the cost of the principal reductions, appraisals, income verification and other paperwork.

This straightforward approach benefits everyone involved. Since the eligibility criteria are clearly defined, homeowners would not be able to default on purpose to get the modification. And it is fair: If the loan was inherently unaffordable at origination, regulators should never have allowed it in the first place. There was a regulatory failure, and taxpayers have a fiduciary responsibility to make it right. Besides, taxpayers will also benefit as the foreclosure crisis abates, because house prices will stop declining, and that will end the drain on the financial system and broader economy.”

http://www.nydailynews.com/opinions/2009/06/01/2009-06-01_obama_needs_a_plan_b_to_arrest_foreclosures__or_else.html?page=1

[CA renter]

Wow. Idiot Zandi thinks “everyone” will benefit, huh? What about all the responsible people who didn’t take on more debt than they could handle? What about the renters or first-time buyers? What about the taxpayers?

Not everyone thinks rising housing costs are a good thing.

These moronic buyers are not responsible for their own decisions in Mr. Zandi’s world, I suppose. Let’s just take some more of that money off the taxpayer money tree and give it to all the losers who speculated in housing. They’re all “victims”!

What a complete idiot!

[CA renter]

Wow. Idiot Zandi thinks “everyone” will benefit, huh? What about all the responsible people who didn’t take on more debt than they could handle? What about the renters or first-time buyers? What about the taxpayers?

Not everyone thinks rising housing costs are a good thing.

These moronic buyers are not responsible for their own decisions in Mr. Zandi’s world, I suppose. Let’s just take some more of that money off the taxpayer money tree and give it to all the losers who speculated in housing. They’re all “victims”!

What a complete idiot!

[CA renter]

Wow. Idiot Zandi thinks “everyone” will benefit, huh? What about all the responsible people who didn’t take on more debt than they could handle? What about the renters or first-time buyers? What about the taxpayers?

Not everyone thinks rising housing costs are a good thing.

These moronic buyers are not responsible for their own decisions in Mr. Zandi’s world, I suppose. Let’s just take some more of that money off the taxpayer money tree and give it to all the losers who speculated in housing. They’re all “victims”!

What a complete idiot!

[CA renter]

Wow. Idiot Zandi thinks “everyone” will benefit, huh? What about all the responsible people who didn’t take on more debt than they could handle? What about the renters or first-time buyers? What about the taxpayers?

Not everyone thinks rising housing costs are a good thing.

These moronic buyers are not responsible for their own decisions in Mr. Zandi’s world, I suppose. Let’s just take some more of that money off the taxpayer money tree and give it to all the losers who speculated in housing. They’re all “victims”!

What a complete idiot!

[CA renter]

Wow. Idiot Zandi thinks “everyone” will benefit, huh? What about all the responsible people who didn’t take on more debt than they could handle? What about the renters or first-time buyers? What about the taxpayers?

Not everyone thinks rising housing costs are a good thing.

These moronic buyers are not responsible for their own decisions in Mr. Zandi’s world, I suppose. Let’s just take some more of that money off the taxpayer money tree and give it to all the losers who speculated in housing. They’re all “victims”!

What a complete idiot!

[danthedart]

Inherently fair?

What a joke. Take this example:

2 people bought a home in 2005 in the same neighborhood for the same price 600k lets say. It’s worth only 400k now.

Person A makes 300k a year and person B makes only 70k a year. Person B gets a principle reduction and person A does not under Zandi’s plan.

[danthedart]

Inherently fair?

What a joke. Take this example:

2 people bought a home in 2005 in the same neighborhood for the same price 600k lets say. It’s worth only 400k now.

Person A makes 300k a year and person B makes only 70k a year. Person B gets a principle reduction and person A does not under Zandi’s plan.

[danthedart]

Inherently fair?

What a joke. Take this example:

2 people bought a home in 2005 in the same neighborhood for the same price 600k lets say. It’s worth only 400k now.

Person A makes 300k a year and person B makes only 70k a year. Person B gets a principle reduction and person A does not under Zandi’s plan.

[danthedart]

Inherently fair?

What a joke. Take this example:

2 people bought a home in 2005 in the same neighborhood for the same price 600k lets say. It’s worth only 400k now.

Person A makes 300k a year and person B makes only 70k a year. Person B gets a principle reduction and person A does not under Zandi’s plan.

[danthedart]

Inherently fair?

What a joke. Take this example:

2 people bought a home in 2005 in the same neighborhood for the same price 600k lets say. It’s worth only 400k now.

Person A makes 300k a year and person B makes only 70k a year. Person B gets a principle reduction and person A does not under Zandi’s plan.

[kev374]

this makes no sense whatsoever, this guy is an absolute moron…but I am afraid the Obama administration may do just this!

[kev374]

this makes no sense whatsoever, this guy is an absolute moron…but I am afraid the Obama administration may do just this!

[kev374]

this makes no sense whatsoever, this guy is an absolute moron…but I am afraid the Obama administration may do just this!

[kev374]

this makes no sense whatsoever, this guy is an absolute moron…but I am afraid the Obama administration may do just this!

[Author]

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