Upside Down Mortgage

Posts Tagged ‘legislation’

Predatory Lending Legislation

Question: Does anyone else find this curious?

Here is a link to an article from the NY Times... dated September 30,1999.

http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=1

Bill Clinton was still President.

Please note who is "applying pressure" in the third paragraph.

But that isn't the best part...

Take a look at the eighth paragraph. Here we have Peter Wallison already talking about how a bailout will be necessary when the subprime market inevitably collapses.

I know the Bush administration proposed legislation to fix the predatory lending situation, but was stopped by the Dems in Congress. Although I admit I don't have all the details on that particular issue.

Thoughts? Does anyone have any more information on this?
Artguurl: What about the talk of the bailout in 1999? That is the part I'm more interested in.

Answer: The Bush administration never proposed legislation to fix the predatory lending situation. He never did anything to stop it. He supported it by helping deregulation the business even more. You're right, you don't have the details on that particular issue. You don't even have the facts.

February 23, 2004: Instead of heeding warnings, Federal Reserve leadership promotes non-traditional mortgages over fixed rate products in a speech to the Credit Union National Association annual conference. "American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage.the traditional fixed-rate mortgage may be an expensive method of financing a home." [Remarks By Federal Reserve Chairman Alan Greenspan, 2/23/04]

October 8, 2003: Bush administration objected to a proposal to have an independent regulator of Fannie Mae and Freddie Mac be an independent unit of Treasury, much like financial regulators housed in the agency that oversee banks and thrifts. The Bush administration also objected to a proposal to have the Department of Housing and Urban Development have oversight over the companies' business activities. The independence provision has broad support from committee Democrats and Republicans. The HUD provision was pushed mostly by Democrats but had been accepted by Oxley and Baker as a compromise needed to move the bill forward. [Washington Post, 10/8/03]

February 24, 2004: At a Senate Banking Committee hearing, Norman Rice, President and CEO of the Federal Home Loan Bank of Seattle questioned having low-income Americans use ARM's to finance their homes. In addition, Senator Sarbanes questioned the Federal Reserve's promotion of alternative mortgage products over traditional fixed rate mortgages:

* Norman Rice: "Particularly if you're talking about serving an underserved constituency. Adjustable rate mortgages for a low income constituency is a nightmare."

* Senator Sarbanes: "[The Federal Reserve] is pushing adjustable rate mortgages.and throwing this risk back on the consumer." [Senate Banking Committee Transcript, 2/25/04]

June 30, 2004: After encouraging the use of non-traditional mortgages, many of which re-set with rising interest rates, the Federal Reserve begins to raise rates-17 consecutive, 25 basis point increases that take the Federal Reserve Funds rate from a 46-year low of 1 percent in June 2004 to 5.25 percent in June 2006. [Market News International, 4/29/08]

October 26, 2005: House of Representatives passed regulation reforming the GSE's. The bill passed the House 331-90 (Republicans: 209-15; Democrats: 122-74), and would have given the new regulator broad authority over setting capital requirements and limiting portfolio size. Senate Democrats picked that bill up and offered it, but the Administration opposed that legislation. According to Mr. Oxley, the White House gave Congress and the GSE reform legislation "a one-finger salute."

* "We missed a golden opportunity that would have avoided a lot of the problems we're facing now, if we hadn't had such a firm ideological position at the White House and the Treasury and the Fed," Mr. Oxley says." [Financial Times, 9/11/08]

February 7, 2007: Federal banking regulators released their voluntary Guidance on Nontraditional Mortgage Products for mortgage lenders. However, the guidance did not apply to subprime mortgages. [Senate Banking Committee Transcipt, Prepared Statement of Martin Eakes, 2/7/07]

March 22, 2007: Senator Dodd laid out how the Federal Reserve was responsible for the "perfect storm" sweeping over American homeowners. At a Banking committee hearing Dodd said, "By May of 2005, the press was reporting that economists were warning about the risks of these new mortgages. In June of that year, Chairman Greenspan was talking about "froth" in the mortgage market and testified before the Joint Economic Committee that he was troubled by the surge in exotic mortgages." [Senate Banking Committee Transcript, 3/22/07]

August 6, 2007: At a White House morning press briefing, in response to a question whether the housing market is correcting or in crisis, President Bush says that the economy is stable: "[I]t looks we're headed for a soft landing." [Remarks By President Bush, 8/9/07]

November 15, 2007: Senator Reid asked unanimous consent to pass the FHA Modernization Act, but Republicans objected. [Congressional Record, 11/15/08]

December 4, 2007: In response to a question about whether the Administration was too slow to recognize the subprime problem, President Bush said: "We've been working on this since August." [Remarks By President Bush, 12/4/07]

December 6, 2007: Senator Reid asked unanimous consent to pass the FHA Modernization Act, but Republicans objected. [Congressional Record, 12/6/08]

October 4, 2007: At a news conference on Wednesday, House and Senate Democrats outlined a plan to help low- and middle-income families keep their homes." [New York Times

Congressman Kanjorski on Anti-Predatory Lending Legislation on House Floor

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California Loan Modification Legislation

Feldman Law Center - Loan Modification

Presîdent Obama has îssued a new plan to help stabîlîze the Amerîcan economý. Part of that plan îs dîrected wîthout delaý at uneasý homeowners, tîtled'Makîng Home Affordable.' Thîs program has dedîcated $75 bîll to salvagîng the home loans of amerîcans wîth troubled fînances, whîch amounts to about 3 to 4,000,000 ýankee homeowners who are on the edge of repossessîons or other sîmîlar problems. The program offers calculators, checklîsts, and other tools, whîch permît homeowners to evaluate theîr sîtuatîon and determîne theîr elîgîbîlîtý. There also are classes and events în maný areas to help uneasý householders get on the rîght traîl.

In order to} qualîfý for the house loan alteratîons through the Makîng Home reasonable program, a troubled householder has to answer questîons such as,'îs ýour home ýour prîmarý resîdence?' and,'Dîd ýou get ýour current mortgage before Jan fîrst, 2009?' After respondîng just fîve questîons, the householder's înformatîon wîll be învestîgated, and theý are goîng to be înformed of the followîng steps theý should take. Thîs program îs avaîlable to homeowners tîll June of 2010.

Although the governîng bodý îs workîng to aîd householders dîrectlý, înstead of just helpîng moneý înstîtutîons, and maný banks are provîdîng loan modîfîcatîons, a týpîcal problem seems to be the process îs îneffîcîent. Maný house owners saý that theý call tîme after tîme agaîn, fax în papers and send în documents, onlý to hear that theîr forms îs beîng processed, or that theý wîll be called back shortlý. Even Congresswoman Maxîne Waters, who represents Calîfornîa's 35th congressîonal dîstrîct, trîed to contact lenders for 3 of her constîtuents, and experîenced hours of dîzzýîng dîsappoîntment. She concluded the average joe would have trouble gettîng through to theîr bank.

Feldman Law Center - Foreclosure Assistance

Yet the federal government îs spendîng moneý, îssuîng plans, and trýîng to keep the ýankee people în theîr homes. The întentîon îs there, and support îs there for home loan modîfîcatîons. So what îs the secret?

Maýbe the best route îs to have an experîenced pro help ýou wîth ýour home loan alteratîon. Maný sîtes, încludîng regîme websîtes, warn of the gîmmîcks out there, of corporatîons who state to help wîth home loan alteratîons, but who have no legîtîmîzed servîces to gîve. îf ýou're trýîng to make the most of Presîdent Obama's plan to help ýou, a uneasý home-owner, then maýbe ýou should call the Feldman Law Center. Lawýers on staff offer experîence wîth mortgage alteratîons. Theý also know about legîslatîon regardîng home loan alteratîons, and wîll help ýou attaîn a superîor deal, and get ît faster than ýou mîght do on ýour own. Plentý of the home-owner success storîes happen because of an experîenced pro at theîr sîde, workîng on theîr behalf.

The plans set forth bý Presîdent Barack Obama are there for ýou, the home-owner, to take advantage of. But home loan alteratîons are tough to navîgate alone, and are sometîmes bartered at better terms for ýou, the householder, îf a mortgage modîfîcatîon lawýer îs on ýour sîde. Call the Feldman Law Center todaý for a free consultatîon, and make the most of the chance granted ýou to modîfý ýour house loan.

Vîsît us at http://www.feldmanlawcenter.com or call 800-588-0425.

Legal Dîsclaîmer

the data contaîned hereîn îs provîded for general înformatîon and advertîsîng purposes onlý and îsn't întended to conveý a legal optîon nor legal help for aný specîfîc case or sîtuatîon. Nothîng în thîs artîcle shall create an attorneý-clîent relatîonshîp. Nothîng sent to thîs law offîce through e-maîl shall represent an attorneý-clîent relatîonshîp. Nothîng contaîned în thîs artîcle shall be construed to be a guarantee or predîctîon of result. Prîor results are provîded for general înfo uses onlý and don't guarantý, guarantý or foretell a sîmîlar outcome wîth respect to aný future matter. Results achîeved relý on îndîvîdual cîrcumstances and not everýone wîll qualîfý or be successful în restructurîng theîr mortgage.

Feldman Law Center

About the Author:

Feldman Law Center, headquatered in Mission Viejo, CA specializes in loan modification and debt settlement, helping people keep their homes!

http://www.squidoo.com/feldman-law-center

Source - Feldman Law Center - Can Obama's Plan Create Easier Loan Modifications?

California Assemblymember Lieu Fighting For Mortgage Reform

Mortgage Modification Legislation

Obama is taking plans to fix the alarming foreclosure crisis in America in great lengths. The President already pledged to allocate $75 billion dollars to launch the government’s foreclosure prevention program in the hopes of halting the declining mortgage ownership rate in the country. The main objective of the program is convincing lenders to modify loans of borrowers who are in danger of losing home ownership preservation.

The fund will be used to subsidize bank’s efforts to modify loans. The government sees this not only as an effort to help borrowers survive the skyrocketing mortgage dilemma, but also a means to prevent mortgage values from spiraling down.

To some extent, the plan is not entirely new. The Bush administration already paved the way for programs geared towards housing fix namely the Federal Housing Association Secure and Hope for Homeowners. Banks also took part in materializing the programs’ objectives, but despite such compliance, the plan still proved to be ineffective as only a few loan modification deals were properly closed.

The current program developed and espoused by the Obama administration is an oxymorons for while lenders get to be pampered with the $75 billion budget that will go to mortgage subsidy, they will be coerced to comply with the loan modification requests from borrowers. As stated in the program, the legislation will bequeath bankruptcy court judges the power to modify loans if banks won’t do it.

Banks, loan companies and other lending institutions do not particularly approve of the proposed terms of the program. To some extent, they consider this as the government’s way of pushing the legislation envelope to the limit. Lenders are forced to choose between giving in to borrower’s request to modify loans with an assurance of subsidy from the government or stay unyielding to loan modification, but in the end be bypassed by the legislation crunch. Either way, both would still lead to the act of lowering interest rates, monthly mortgage payments, extending loan terms, and reducing principal payments---all of which to the borrower’s advantage.

This plan is not completely fool proof. There are some glitches in the program that might result to more complications in the future if not addressed by the government immediately. Mortgage consultants are predicting that lenders will be stricter in their terms and conditions in lending mortgage. This will exponentially compound the price and value of housing and mortgage in the US. Likewise there is also the problem dealing with the declaration of bankruptcy. In order to qualify for loan modification, borrowers have to declare a form of bankruptcy and this will lead to an indelible blotch on their credit account. It will restrict the possibility of getting approved for future mortgage loans.

The question here is will Obama’s foreclosure fix of forcing lenders to modify loans for borrowers do the work?

The answer to this question is entirely dependent on a lot of factors. Delinquency rates, economic fluctuations, and consistency of the government in implementing the programs are just some of the major complications affecting the success of Obama’s housing fix. With foreclosure rates already reaching more than a million, many remain unconvinced of the potency of this program.

About the Author:

Jennifer Franco is a creative writer, teacher and freelance language editor currently completing her master’s degree in Language and Literature. She writes about a wide array of topics including art, culture, entertainment, cars and loan modification. For more information on how to modify loans, you may call 1.888.864.1663.

Source - Will Obama’S Mortgage Glitch Fix To Help Borrowers Modify Loans Work?

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