shah269 0 #1 January 23, 2012 When did they start hiring economists? I just got off the phone with my mortgage broker, sadly I've lost a solid $100k in value off my condo which I paid $300k for 5 years ago, the guy initially wanted $325k and I told him to frack off. Any how long story short, Freddie Mack and Fannie May are in the process of....and I hope I have this right because I can't seem to find any info at the moment on the subject.....rewriting policy such that 1) If you have a credit score of greater than 700 2) History of employment of 1 year 3) Can demonstrate via finances that your mortgage consumes more than 51% of your income. They will allow you to refinance at the new lower rates. Now I don't want to argue politics though I know many do I want to talk economics. Economics this is the equivalent of sticking a shot of adrenaline in the heart! IF it is true and IF it does work not only will it free up a good amount of capital which people can utilize to pay down their debts and then buy goods and services but it may help the economy get out of its funk! I for one am very impressed by such a bold action by the federal government. For not only will this help the average joe who's home has lost significant value and who feels they are just throwing good money after bad but will also help the financial sector grow since more people will have to be hired for processing of these newly formed mortgages. It may not be a cure all but economically speaking...it's a nice idea! And please temper your political spin and let's focus on economic theory/practice/strategy, thank you. ps for me it would me at the new low rate I may have as much as $300 more a month which I would utilize to pay down my debt....like a good American should.Life through good thoughts, good words, and good deeds is necessary to ensure happiness and to keep chaos at bay. The only thing that falls from the sky is birdshit and fools! Quote Share this post Link to post Share on other sites
rehmwa 2 #2 January 23, 2012 Quote....rewriting policy such that 1) If you have a credit score of greater than 700 2) History of employment of 1 year 3) Can demonstrate via finances that your mortgage consumes more than 51% of your income. They will allow you to refinance at the new lower rates. I don't get the point of item #3 being in there. Certainly the first two show the ability to pay a loan off. #3 certainly goes AGAINST your ability to pay off a loan AND demonstrates poor judgment in money management. The less risky loan would be to approve for 1, and 2, and those that have a smaller proportion of income going to a single debt. Not larger. If you don't want to talk politics here, then you are missing the reasoning. this is more subsidy activity with a clear short term benefit and long term disaster. ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
rehmwa 2 #3 January 23, 2012 Quoteps for me it would me at the new low rate I may have as much as $300 more a month which I would utilize to pay down my debt....like a good American should. typical "american" - "It helps ME, therefore it's all goodness and light. If you disagree, you are evil and just quoting talking points" you are consistent here anyway ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
kelpdiver 2 #4 January 23, 2012 Quote ps for me it would me at the new low rate I may have as much as $300 more a month which I would utilize to pay down my debt....like a good American should. hold on a minute. In your numerous other postings on the subject, you encouraged this taxpayer paid subsidy to folks like you so that you would use this excess cash to stimulate the economy. If you're only using it to pay debt, I want my money back! (is this politics or economics - the distinction between them is a very thin line) Quote Share this post Link to post Share on other sites
Southern_Man 0 #5 January 23, 2012 QuoteQuote ps for me it would me at the new low rate I may have as much as $300 more a month which I would utilize to pay down my debt....like a good American should. hold on a minute. In your numerous other postings on the subject, you encouraged this taxpayer paid subsidy to folks like you so that you would use this excess cash to stimulate the economy. If you're only using it to pay debt, I want my money back! (is this politics or economics - the distinction between them is a very thin line) Honestly I thought he already refinances his mortgage and that is where the money to buy his car (more debt) was coming from."What if there were no hypothetical questions?" Quote Share this post Link to post Share on other sites
shah269 0 #6 January 23, 2012 Quote The less risky loan would be to approve for 1, and 2, and those that have a smaller proportion of income going to a single debt. Not larger. . I'm sorry I can't seem to find a link but that is what I was told by my mortgage guy on the phone. This is good for me because this means I don't have to put any money down to get my LTV to the required 130% since I'm well over that. So I have put my refinance plans on hold for another 40 days until this comes about. As for the economic aspects of this, this frees up vast quantities of money NOW which has more power to generate jobs NOW than if the money were spread across the decades. First rule of economics / finance....money today is worth more than money tomorrow. And in this case we are talking 30+ years from now. As such the freed money can be utilized to generate revenue both for private and public sectors and maybe....just maybe...help our GDP grow and maybe just maybe induce a bit more spending by the middle class to create jobs. And thank you for keeping the talk purely economic based. Yes there is a political component but let's talk economics theory/practice. Thank you. And I for 1 am keeping my fingers crossed for this so that I can pay down my debt faster on my condo! Then turn a liability into an asset! Life through good thoughts, good words, and good deeds is necessary to ensure happiness and to keep chaos at bay. The only thing that falls from the sky is birdshit and fools! Quote Share this post Link to post Share on other sites
rehmwa 2 #7 January 23, 2012 still seems like forcing F&F to make bad loans again ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
mnealtx 0 #8 January 23, 2012 Quote Thank you. And I for 1 am keeping my fingers crossed for this so that I can pay down my debt faster on my condo! Then turn a liability into an asset! Or you could keep your current car and use the money you want to spend on that Boxster S to pay down your debt faster.Mike I love you, Shannon and Jim. POPS 9708 , SCR 14706 Quote Share this post Link to post Share on other sites
shah269 0 #9 January 23, 2012 Quotestill seems like forcing F&F to make bad loans again Well the people such as me have the jobs and have the income it's just that the value of their homes has tanked. So....instead of throwing good money after bad if the agreement can be brokered and modified such that less good money is thrown into the hole while investor requirements are met all the while freeing up middle class capital to be utilized to either pay down high interest debt or to buy goods and services thus generating more revenue both for the private and public sectors the economy may start moving again. Spending money creates more money. Paying off an underwater asset....does not. But again this is all from a phone conversation and I for one am seriously holding my breath. This would really save me a good bit of money and allow me to pay down either my student loan debts or my mortgage much much faster! For others this could mean "hiring" that guy to fix a given problem in the house or upgrading a kitchen...which in effect help grow our economy. Can you tell....though I'm an engineer I absolutely love economic theory! I do need to brush up on my micro since I'm still not 100% with elastic and inelastic demand but macro....wow! I <3 Macro!Life through good thoughts, good words, and good deeds is necessary to ensure happiness and to keep chaos at bay. The only thing that falls from the sky is birdshit and fools! Quote Share this post Link to post Share on other sites
shah269 0 #10 January 25, 2012 And there it was last night... I hope it will work. But sadly from what I understand a good number of people have a credit score under 700....not good not good...so maybe it won't liberate capital to fuel the economy?Life through good thoughts, good words, and good deeds is necessary to ensure happiness and to keep chaos at bay. The only thing that falls from the sky is birdshit and fools! Quote Share this post Link to post Share on other sites
rehmwa 2 #11 January 25, 2012 Quote if the agreement can be brokered and modified such that less good money is thrown into the hole while investor requirements are met all the while freeing up middle class capital this is fine as long as the requirements make financial sense however, if we legislate that the requirements include provisions that preferentially require approval of bad loans over good loans, then it's still idiotic simple as that ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
billvon 3,119 #12 January 25, 2012 >This would really save me a good bit of money and allow me to pay >down either my student loan debts or my mortgage much much faster! In another thread didn't you rag on people who used tricky loopholes to scam money from the government? Quote Share this post Link to post Share on other sites
rehmwa 2 #13 January 25, 2012 Quote>This would really save me a good bit of money and allow me to pay >down either my student loan debts or my mortgage much much faster! In another thread didn't you rag on people who used tricky loopholes to scam money from the government? that's ok, it was about "other" people ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
