OBAMA Mortgage Plan to Help up to 9 Million

[jpinpb]

[quote=carlsbadworker]No. It won’t work for Temecula or Escondido (where price has dropped a lot). But it would work for the costly coastal area where price has not dropped a lot (assume the person bought with a downpayment). It is aimed to stop the Alt-A folks to have their payment reset to higher rate, and they would instead be able to lock into 5% 30-years fixed at much lower monthly cost.
[/quote]

Flaw: assume the person bought with a downpayment

Also, Alt-A folks are voluntarily making the decision to walk b/c they have lost average of 20% equity. They’re not walking necessarily b/c the can’t make the payments. They’re choosing to walk b/c their house is not worth anywhere close to what they paid for it – even in LJ.

Example in LJ

[(former)FormerSanDiegan]

[quote=92126_guy][quote=FormerSanDiegan]

But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.

[/quote]

FSD: I have read some of the breaking news on this, but can’t seem to get 100% if when they talk about conforming if they mean the old limits (417k)or the new ones (2009 revised 625k for So Cal)? They have to mean the new ones, right? Unless they really are only looking at helping “the poor.”

[/quote]

Here is CNN’s take …

http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021819

Basically it says that if your loan is conforming you can refi under the program if your LTV is between 80% to 105%. The amount would depend on the Conforming loan limit at the time you received the loan.

If someone has a JUMBO loan that they took out in 2005 for say 500K, it will not matter that the current limit is over 500K, it only matters whether that loan was covered by Fannie or Freddie, which it was not (the loan was above conforming when originated, so it couldn’t be).

[(former)FormerSanDiegan]

[quote=92126_guy][quote=FormerSanDiegan]

But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.

[/quote]

FSD: I have read some of the breaking news on this, but can’t seem to get 100% if when they talk about conforming if they mean the old limits (417k)or the new ones (2009 revised 625k for So Cal)? They have to mean the new ones, right? Unless they really are only looking at helping “the poor.”

[/quote]

Here is CNN’s take …

http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021819

Basically it says that if your loan is conforming you can refi under the program if your LTV is between 80% to 105%. The amount would depend on the Conforming loan limit at the time you received the loan.

If someone has a JUMBO loan that they took out in 2005 for say 500K, it will not matter that the current limit is over 500K, it only matters whether that loan was covered by Fannie or Freddie, which it was not (the loan was above conforming when originated, so it couldn’t be).

[(former)FormerSanDiegan]

[quote=92126_guy][quote=FormerSanDiegan]

But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.

[/quote]

FSD: I have read some of the breaking news on this, but can’t seem to get 100% if when they talk about conforming if they mean the old limits (417k)or the new ones (2009 revised 625k for So Cal)? They have to mean the new ones, right? Unless they really are only looking at helping “the poor.”

[/quote]

Here is CNN’s take …

http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021819

Basically it says that if your loan is conforming you can refi under the program if your LTV is between 80% to 105%. The amount would depend on the Conforming loan limit at the time you received the loan.

If someone has a JUMBO loan that they took out in 2005 for say 500K, it will not matter that the current limit is over 500K, it only matters whether that loan was covered by Fannie or Freddie, which it was not (the loan was above conforming when originated, so it couldn’t be).

[(former)FormerSanDiegan]

[quote=92126_guy][quote=FormerSanDiegan]

But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.

[/quote]

FSD: I have read some of the breaking news on this, but can’t seem to get 100% if when they talk about conforming if they mean the old limits (417k)or the new ones (2009 revised 625k for So Cal)? They have to mean the new ones, right? Unless they really are only looking at helping “the poor.”

[/quote]

Here is CNN’s take …

http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021819

Basically it says that if your loan is conforming you can refi under the program if your LTV is between 80% to 105%. The amount would depend on the Conforming loan limit at the time you received the loan.

If someone has a JUMBO loan that they took out in 2005 for say 500K, it will not matter that the current limit is over 500K, it only matters whether that loan was covered by Fannie or Freddie, which it was not (the loan was above conforming when originated, so it couldn’t be).

[(former)FormerSanDiegan]

[quote=92126_guy][quote=FormerSanDiegan]

But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. The coastal areas were mainly in JUMBO territory, not conforming loans.

[/quote]

FSD: I have read some of the breaking news on this, but can’t seem to get 100% if when they talk about conforming if they mean the old limits (417k)or the new ones (2009 revised 625k for So Cal)? They have to mean the new ones, right? Unless they really are only looking at helping “the poor.”

[/quote]

Here is CNN’s take …

http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021819

Basically it says that if your loan is conforming you can refi under the program if your LTV is between 80% to 105%. The amount would depend on the Conforming loan limit at the time you received the loan.

If someone has a JUMBO loan that they took out in 2005 for say 500K, it will not matter that the current limit is over 500K, it only matters whether that loan was covered by Fannie or Freddie, which it was not (the loan was above conforming when originated, so it couldn’t be).

[(former)FormerSanDiegan]

[quote=carlsbadworker][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]

The version I read says:

The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.

“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
[/quote]

OK. That is another provision. I was focused on the ability to refinance at prevailing conforming rates when you have less than 20% equity.

It would seem that JUMBOs might qualify for loan modifications (as opposed the refi element of the program) assuming that whatever uniform guidelines are applied do not put a CAP on loan amounts. Any bets on whether there will be a limit on loan amounts under the TBD uniform guidelines ?

EDIT : Just saw in the CNN article that “No mortgages for amounts above conforming loan limits would be eligible” for the modification element of the program either.
So, this may help some folks who have loans that fall under current conforming rates. But again,it will depend on the combination of factors. I think it will have virtually no impact on Coastal San Diego.

[(former)FormerSanDiegan]

[quote=carlsbadworker][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]

The version I read says:

The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.

“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
[/quote]

OK. That is another provision. I was focused on the ability to refinance at prevailing conforming rates when you have less than 20% equity.

It would seem that JUMBOs might qualify for loan modifications (as opposed the refi element of the program) assuming that whatever uniform guidelines are applied do not put a CAP on loan amounts. Any bets on whether there will be a limit on loan amounts under the TBD uniform guidelines ?

EDIT : Just saw in the CNN article that “No mortgages for amounts above conforming loan limits would be eligible” for the modification element of the program either.
So, this may help some folks who have loans that fall under current conforming rates. But again,it will depend on the combination of factors. I think it will have virtually no impact on Coastal San Diego.

[(former)FormerSanDiegan]

[quote=carlsbadworker][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]

The version I read says:

The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.

“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
[/quote]

OK. That is another provision. I was focused on the ability to refinance at prevailing conforming rates when you have less than 20% equity.

It would seem that JUMBOs might qualify for loan modifications (as opposed the refi element of the program) assuming that whatever uniform guidelines are applied do not put a CAP on loan amounts. Any bets on whether there will be a limit on loan amounts under the TBD uniform guidelines ?

EDIT : Just saw in the CNN article that “No mortgages for amounts above conforming loan limits would be eligible” for the modification element of the program either.
So, this may help some folks who have loans that fall under current conforming rates. But again,it will depend on the combination of factors. I think it will have virtually no impact on Coastal San Diego.

[(former)FormerSanDiegan]

[quote=carlsbadworker][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]

The version I read says:

The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.

“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
[/quote]

OK. That is another provision. I was focused on the ability to refinance at prevailing conforming rates when you have less than 20% equity.

It would seem that JUMBOs might qualify for loan modifications (as opposed the refi element of the program) assuming that whatever uniform guidelines are applied do not put a CAP on loan amounts. Any bets on whether there will be a limit on loan amounts under the TBD uniform guidelines ?

EDIT : Just saw in the CNN article that “No mortgages for amounts above conforming loan limits would be eligible” for the modification element of the program either.
So, this may help some folks who have loans that fall under current conforming rates. But again,it will depend on the combination of factors. I think it will have virtually no impact on Coastal San Diego.

[(former)FormerSanDiegan]

[quote=carlsbadworker][quote=FormerSanDiegan]
But, it has to be owned or guaranteed by Freddie or Fannie, meaning presumably that it must fall within conforming limits. [/quote]

The version I read says:

The Treasury Department will also develop uniform guidelines for loan modifications, as well as require all financial institutions receiving government funds to participate in the program. Also, all federal agencies that own or guarantee loans will have to apply the guidelines where appropriate.

“All financial institutions receiving government funds”…that’s everyone these days, isn’t it?
[/quote]

OK. That is another provision. I was focused on the ability to refinance at prevailing conforming rates when you have less than 20% equity.

It would seem that JUMBOs might qualify for loan modifications (as opposed the refi element of the program) assuming that whatever uniform guidelines are applied do not put a CAP on loan amounts. Any bets on whether there will be a limit on loan amounts under the TBD uniform guidelines ?

EDIT : Just saw in the CNN article that “No mortgages for amounts above conforming loan limits would be eligible” for the modification element of the program either.
So, this may help some folks who have loans that fall under current conforming rates. But again,it will depend on the combination of factors. I think it will have virtually no impact on Coastal San Diego.

[AK]

To help up to 9 million …

… and screw the other 291 million.

[AK]

To help up to 9 million …

… and screw the other 291 million.

[AK]

To help up to 9 million …

… and screw the other 291 million.

[AK]

To help up to 9 million …

… and screw the other 291 million.

[Author]

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