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Date: 09 Dec 2008 03:21:32
From: Irish Mike
Subject: Libeeral insanity - subprime home owners re-defaulting
I have maintained from the beginning that the root cause of the current
financial disaster was the Democrat's subprime entitlement loan programs to
unqualified borrowers. When Bill Clinton made it a requirement for F-MAE
and F-MAC to have up to 50% of their multi-billion dollar investment
portfolio in these unsound subprime loans it sent a message to Wall Street
to write as many of them as they could because F-MAE and F-MAC would buy
them. Plus Obama helped ACORN file a law suit blocking the merger of an
Illinois saving and loan company because they did not make enough subprime
loans to minorities. Obama won in court and banks and loan companies all
across the country lowered their lending standards for high risk subprime
mortgages. The banks were making a fortune on the upfront mortgage
processing fees and pumped that money back in to the housing market to make
even more subprime mortgages. The end result was huge inflation in the
housing market and when housing prices finally crashed, it took the banks,
who had been packaging and reselling subprime mortgages, down with it.

So the bottom line is that you have politicians trying to buy votes with
subprime mortgage loans to people who wouldn't normally have qualified to
buy a pup tent. They bought houses they couldn't afford with mortgages they
were too stupid to read. When the housing market crashed, all these
subprime borrowers just defaulted on their mortgage payments. They weren't
worried about ruining their credit rating because it was shit to begin with.
And they didn't put any money down on the house so they had no skin in the
game. They just stopped making the mortgage payments. Not to mention that
most of them were already up to their necks in credit card debt and had one
or two no money down car loans.

So what do the morons in congress do? They go to these unqualified buyers
and bail them out again. They refinance their mortgages and reduce their
principal and/or mortgage loan interest rates! So what happened? Now
here's the beauty part. A study showed that within six months of getting
this bail out on these subprime mortgages, "53% of these people re-defaulted
on their mortgages". When congress lowered the monthly payments on the
houses they bought but couldn't afford, they just went out and ran up more
credit card debt! If it wasn't so damn sad it would be funny. And speaking
of funny, you've got that ass wipe Barney Frank lecturing congress and the
Republicans about how to be more financially responsible! Now this is the
same Barney Frank, and his Democrat pals, who have controlled congress and
chaired all of the banking and finance committees for the past two years.
Between 8/07 and 8/08, under Barney Franks "leadership" F-MAE and F-MAC lost
90% of their stock value!


"Homeowners redefaulting after getting aid"
a.. By John Poirier and Patrick Rucker John Poirier And Patrick Rucker -
Mon Dec 8, 2:33 pm ET
WASHINGTON (Reuters) - More than half of mortgages modified in a bid to
avoid foreclosure fell delinquent within six months, a top U.S. banking
regulator said on Monday, casting doubt on a proposal to rewrite home loans
en masse.
Comptroller of the Currency John Dugan said it was unclear why so many
borrowers ran into trouble again so soon after getting help, and that raises
questions about how policy-makers should address loan modifications.

"Is it because the modifications did not reduce monthly payments enough to
be truly affordable to the borrowers? Is it because consumers replaced lower
mortgage payments with increased credit card debt?" Dugan said at a housing
conference in Washington organized by the Office of Thrift Supervision.

"Is it because the mortgages were so badly underwritten that the borrowers
simply could not afford them, even with reduced monthly payments? Or is it a
combination of these and other factors?"

The crumbling housing market is at the heart of the financial crisis that
tipped the United States into recession and dragged down the global economy,
and regulators are scrambling to find a way to limit foreclosures.

Sheila Bair, chairman of the Federal Deposit Insurance Corp, has been a big
proponent of a home loan modification program that would encourage lenders
to rework a greater number of mortgages by pledging public money to share
the cost of defaults on restructured loans.

However, Dugan's figures suggested that the cost to taxpayers may be high.
He said his data showed that of mortgages that were modified in the first
three months of 2008, nearly 36 percent had re-defaulted after three months,
and almost 53 percent were behind on payments by six months.

The OCC will release a report on mortgages later this month that will show
increasing delinquencies and foreclosures on mortgages held by the largest
national banks and federally regulated thrifts, the agency said.

John Reich, director of the Office of Thrift Supervision, said he had
"concerns" about allocating too much federal money to loan modifications.
FDIC's Bair said bank regulators needed to look at the redefault data
"carefully" to figure out what caused so many borrowers to slip back into
arrears."



Now here's a wild idea. How about providing some of that money to the
people who worked, waited, saved and rented until they bought a house they
could afford. Or what about a break for the 70% of Americans who got fixed
rate mortgages and are actually making their monthly house payments?

Irish Mike








 
Date: 09 Dec 2008 16:20:38
From: ChrisRobin
Subject: Re: Libeeral insanity - subprime home owners re-defaulting
On Dec 9 2008 3:21 AM, Irish Mike wrote:

> I have maintained from the beginning that the root cause of the current
> financial disaster was the Democrat's subprime entitlement loan programs to
> unqualified borrowers.

Of course you have. And you're still dead wrong.

____________________________________________________________________ 
* kill-files, watch-lists, favorites, and more.. www.recgroups.com



  
Date: 09 Dec 2008 19:31:56
From: FL Turbo
Subject: Re: Libeeral insanity - subprime home owners re-defaulting
On Tue, 09 Dec 2008 16:20:38 -0800, "ChrisRobin"
<a9dbf1e@webnntp.invalid > wrote:

>On Dec 9 2008 3:21 AM, Irish Mike wrote:
>
>> I have maintained from the beginning that the root cause of the current
>> financial disaster was the Democrat's subprime entitlement loan programs to
>> unqualified borrowers.
>
>Of course you have. And you're still dead wrong.
>

The only thing IM got wrong about that is putting all the blame on
Demos.

There was no lack of Repos bragging about how home ownership was at an
all-time high during the Bush Presidency.

Home ownership was touted as the most wonderful thing imaginable.
Everyone in the whole damn country should own their own home.

People living in a house with a mortgage like to brag about how they
own their own homes.

In a vigorous Reality Check, those people would still have to admit
that the mortgage holder owned a bigger chunk of the house than they
did.

When the latest housing bubble burst, that fact was forcibly brought
home to people just barely able to afford the payments on the house
they "owned".

Whatever, it's still a real hoot to see Barney Frank and Chris Dodd
out there sputtering about how to "fix" the problem that they were
instrumental in prolonging in the first place.



   
Date: 09 Dec 2008 20:39:10
From: ChrisRobin
Subject: Re: Libeeral insanity - subprime home owners re-defaulting
On Dec 9 2008 8:31 PM, FL Turbo wrote:

> On Tue, 09 Dec 2008 16:20:38 -0800, "ChrisRobin"
> <a9dbf1e@webnntp.invalid> wrote:
>
> >On Dec 9 2008 3:21 AM, Irish Mike wrote:
> >
> >> I have maintained from the beginning that the root cause of the current
> >> financial disaster was the Democrat's subprime entitlement loan programs
to
> >> unqualified borrowers.
> >
> >Of course you have. And you're still dead wrong.
> >
>
> The only thing IM got wrong about that is putting all the blame on
> Demos.
>
> There was no lack of Repos bragging about how home ownership was at an
> all-time high during the Bush Presidency.
>
> Home ownership was touted as the most wonderful thing imaginable.
> Everyone in the whole damn country should own their own home.
>
> People living in a house with a mortgage like to brag about how they
> own their own homes.
>
> In a vigorous Reality Check, those people would still have to admit
> that the mortgage holder owned a bigger chunk of the house than they
> did.
>
> When the latest housing bubble burst, that fact was forcibly brought
> home to people just barely able to afford the payments on the house
> they "owned".
>
> Whatever, it's still a real hoot to see Barney Frank and Chris Dodd
> out there sputtering about how to "fix" the problem that they were
> instrumental in prolonging in the first place.

The mortgage defaults were just the trigger, Turbo. The real culprits were
the Wall Street investment banks who chopped up and leveraged these
mortgages to high heaven. They created an inverted pyramid of debt which
was bound to collapse at some point.

It's nice to see you acknowledge that this isn't a partisan issue. This
kind of greed and corruption trumps political loyalties.

That said, Frank and Dodd need to be hauled out of D.C. in leg irons.

________________________________________________________________________ 
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Date: 09 Dec 2008 12:56:49
From: BeaForoni
Subject: Re: Libeeral insanity - subprime home owners re-defaulting
Blame poor people. Blame working class people. Blame the Mexicans. Tax
breaks for the rich. Bonuses for the CEOs. Price fixing for Grandma's
medication. Tax breaks for exporting jobs. Blame the unions. Worker
productivity continues to rise, weekly work hours increase, paychecks
stagnate and unemployment at multi-year high.

Prison population at record highs not seen during Stalinist Russia.
Obesity at record amounts. Food banks complain of empty shelves.
Number of American children going to bed hungry increases. Tuition
increases at colleges and universities. Grants and loans for most have
decreased or are being denied. Higher increase in unemployment is
sited for increase in military recruits. Politicians are corrupt.
Politicians deny responsibility.

American Revolution was started by and carried out by a minority of
colonists.

The Greeks are rioting in the streets, sparked by a teenager shot by
police and fueled by social and economic disparity.

I am willing to bet that unless the economy improves significantly,
it is going to be a long hot summer.



  
Date: 09 Dec 2008 18:55:37
From: FL Turbo
Subject: Re: Libeeral insanity - subprime home owners re-defaulting
On Tue, 9 Dec 2008 12:56:49 -0800 (PST), BeaForoni <BeaForoni@msn.com >
wrote:

>Blame poor people. Blame working class people. Blame the Mexicans. Tax
>breaks for the rich. Bonuses for the CEOs. Price fixing for Grandma's
>medication. Tax breaks for exporting jobs. Blame the unions. Worker
>productivity continues to rise, weekly work hours increase, paychecks
>stagnate and unemployment at multi-year high.
>
> Prison population at record highs not seen during Stalinist Russia.
>Obesity at record amounts. Food banks complain of empty shelves.
>Number of American children going to bed hungry increases. Tuition
>increases at colleges and universities. Grants and loans for most have
>decreased or are being denied. Higher increase in unemployment is
>sited for increase in military recruits. Politicians are corrupt.
>Politicians deny responsibility.
>
> American Revolution was started by and carried out by a minority of
>colonists.
>
> The Greeks are rioting in the streets, sparked by a teenager shot by
>police and fueled by social and economic disparity.
>
> I am willing to bet that unless the economy improves significantly,
>it is going to be a long hot summer.

Not to worry.

Obama is in the House.


 
Date: 09 Dec 2008 12:32:19
From:
Subject: Re: Libeeral insanity - subprime home owners re-defaulting
On 9 Dec, 04:21, "Irish Mike" <mjos...@ameritech.net > wrote:
> I have maintained from the beginning that the root cause of the current
> financial disaster was the Democrat's subprime entitlement loan programs =
to
> unqualified borrowers. =EF=BF=BDWhen Bill Clinton made it a requirement f=
or F-MAE
> and F-MAC to have up to 50% of their multi-billion dollar investment
> portfolio in these unsound subprime loans it sent a message to Wall Stree=
t
> to write as many of them as they could because F-MAE and F-MAC would buy
> them. =EF=BF=BDPlus Obama helped ACORN file a law suit blocking the merge=
r of an
> Illinois saving and loan company because they did not make enough subprim=
e
> loans to minorities. =EF=BF=BDObama won in court and banks and loan compa=
nies all
> across the country lowered their lending standards for high risk subprime
> mortgages. =EF=BF=BDThe banks were making a fortune on the upfront mortga=
ge
> processing fees and pumped that money back in to the housing market to ma=
ke
> even more subprime mortgages. =EF=BF=BDThe end result was huge inflation =
in the
> housing market and when housing prices finally crashed, it took the banks=
,
> who had been packaging and reselling subprime mortgages, down with it.
>
> So the bottom line is that you have politicians trying to buy votes with
> subprime mortgage loans to people who wouldn't normally have qualified to
> buy a pup tent. =EF=BF=BDThey bought houses they couldn't afford with mor=
tgages they
> were too stupid to read. =EF=BF=BDWhen the housing market crashed, all th=
ese
> subprime borrowers just defaulted on their mortgage payments. =EF=BF=BDTh=
ey weren't
> worried about ruining their credit rating because it was shit to begin wi=
th.
> And they didn't put any money down on the house so they had no skin in th=
e
> game. =EF=BF=BDThey just stopped making the mortgage payments. =EF=BF=BDN=
ot to mention that
> most of them were already up to their necks in credit card debt and had o=
ne
> or two no money down car loans.
>
> So what do the morons in congress do? =EF=BF=BDThey go to these unqualifi=
ed buyers
> and bail them out again. =EF=BF=BDThey refinance their mortgages and redu=
ce their
> principal and/or mortgage loan interest rates! =EF=BF=BDSo what happened?=
=EF=BF=BDNow
> here's the beauty part. =EF=BF=BDA study showed that within six months of=
getting
> this bail out on these subprime mortgages, "53% of these people re-defaul=
ted
> on their mortgages". =EF=BF=BDWhen congress lowered the monthly payments =
on the
> houses they bought but couldn't afford, they just went out and ran up mor=
e
> credit card debt! =EF=BF=BDIf it wasn't so damn sad it would be funny. =
=EF=BF=BDAnd speaking
> of funny, you've got that ass wipe Barney Frank lecturing congress and th=
e
> Republicans about how to be more financially responsible! =EF=BF=BDNow th=
is is the
> same Barney Frank, and his Democrat pals, who have controlled congress an=
d
> chaired all of the banking and finance committees for the past two years.
> Between 8/07 and 8/08, under Barney Franks "leadership" F-MAE and F-MAC l=
ost
> 90% of their stock value!
>
> "Homeowners redefaulting after getting aid"
> =EF=BF=BD a.. By John Poirier and Patrick Rucker John Poirier And Patrick=
Rucker -
> Mon Dec 8, 2:33 pm ET
> WASHINGTON (Reuters) - More than half of mortgages modified in a bid to
> avoid foreclosure fell delinquent within six months, a top U.S. banking
> regulator said on Monday, casting doubt on a proposal to rewrite home loa=
ns
> en masse.
> Comptroller of the Currency John Dugan said it was unclear why so many
> borrowers ran into trouble again so soon after getting help, and that rai=
ses
> questions about how policy-makers should address loan modifications.
>
> "Is it because the modifications did not reduce monthly payments enough t=
o
> be truly affordable to the borrowers? Is it because consumers replaced lo=
wer
> mortgage payments with increased credit card debt?" Dugan said at a housi=
ng
> conference in Washington organized by the Office of Thrift Supervision.
>
> "Is it because the mortgages were so badly underwritten that the borrower=
s
> simply could not afford them, even with reduced monthly payments? Or is i=
t a
> combination of these and other factors?"
>
> The crumbling housing market is at the heart of the financial crisis that
> tipped the United States into recession and dragged down the global econo=
my,
> and regulators are scrambling to find a way to limit foreclosures.
>
> Sheila Bair, chairman of the Federal Deposit Insurance Corp, has been a b=
ig
> proponent of a home loan modification program that would encourage lender=
s
> to rework a greater number of mortgages by pledging public money to share
> the cost of defaults on restructured loans.
>
> However, Dugan's figures suggested that the cost to taxpayers may be high=
.
> He said his data showed that of mortgages that were modified in the first
> three months of 2008, nearly 36 percent had re-defaulted after three mont=
hs,
> and almost 53 percent were behind on payments by six months.
>
> The OCC will release a report on mortgages later this month that will sho=
w
> increasing delinquencies and foreclosures on mortgages held by the larges=
t
> national banks and federally regulated thrifts, the agency said.
>
> John Reich, director of the Office of Thrift Supervision, said he had
> "concerns" about allocating too much federal money to loan modifications.
> FDIC's Bair said bank regulators needed to look at the redefault data
> "carefully" to figure out what caused so many borrowers to slip back into
> arrears."
>
> Now here's a wild idea. =EF=BF=BDHow about providing some of that money t=
o the
> people who worked, waited, saved and rented until they bought a house the=
y
> could afford. =EF=BF=BDOr what about a break for the 70% of Americans who=
got fixed
> rate mortgages and are actually making their monthly house payments?
>
> Irish Mike

Now here's a wild idea. How about providing some of that money to
the
people who worked, waited, saved and rented until they bought a house
they
could afford. Or what about a break for the 70% of Americans who got
fixed
rate mortgages and are actually making their monthly house payments?


Irish Mike


you should know that refinancing only is to generate new closing
cost?


  
Date: 09 Dec 2008 18:53:10
From: FL Turbo
Subject: Re: Libeeral insanity - subprime home owners re-defaulting
On Tue, 9 Dec 2008 12:32:19 -0800 (PST), buffalomacle@hotmail.com
wrote:

>On 9 Dec, 04:21, "Irish Mike" <mjos...@ameritech.net> wrote:
>> I have maintained from the beginning that the root cause of the current
>> financial disaster was the Democrat's subprime entitlement loan programs to
>> unqualified borrowers. ?When Bill Clinton made it a requirement for F-MAE
>> and F-MAC to have up to 50% of their multi-billion dollar investment
>> portfolio in these unsound subprime loans it sent a message to Wall Street
>> to write as many of them as they could because F-MAE and F-MAC would buy
>> them. ?Plus Obama helped ACORN file a law suit blocking the merger of an
>> Illinois saving and loan company because they did not make enough subprime
>> loans to minorities. ?Obama won in court and banks and loan companies all
>> across the country lowered their lending standards for high risk subprime
>> mortgages. ?The banks were making a fortune on the upfront mortgage
>> processing fees and pumped that money back in to the housing market to make
>> even more subprime mortgages. ?The end result was huge inflation in the
>> housing market and when housing prices finally crashed, it took the banks,
>> who had been packaging and reselling subprime mortgages, down with it.
>>
>> So the bottom line is that you have politicians trying to buy votes with
>> subprime mortgage loans to people who wouldn't normally have qualified to
>> buy a pup tent. ?They bought houses they couldn't afford with mortgages they
>> were too stupid to read. ?When the housing market crashed, all these
>> subprime borrowers just defaulted on their mortgage payments. ?They weren't
>> worried about ruining their credit rating because it was shit to begin with.
>> And they didn't put any money down on the house so they had no skin in the
>> game. ?They just stopped making the mortgage payments. ?Not to mention that
>> most of them were already up to their necks in credit card debt and had one
>> or two no money down car loans.
>>
>> So what do the morons in congress do? ?They go to these unqualified buyers
>> and bail them out again. ?They refinance their mortgages and reduce their
>> principal and/or mortgage loan interest rates! ?So what happened? ?Now
>> here's the beauty part. ?A study showed that within six months of getting
>> this bail out on these subprime mortgages, "53% of these people re-defaulted
>> on their mortgages". ?When congress lowered the monthly payments on the
>> houses they bought but couldn't afford, they just went out and ran up more
>> credit card debt! ?If it wasn't so damn sad it would be funny. ?And speaking
>> of funny, you've got that ass wipe Barney Frank lecturing congress and the
>> Republicans about how to be more financially responsible! ?Now this is the
>> same Barney Frank, and his Democrat pals, who have controlled congress and
>> chaired all of the banking and finance committees for the past two years.
>> Between 8/07 and 8/08, under Barney Franks "leadership" F-MAE and F-MAC lost
>> 90% of their stock value!
>>
>> "Homeowners redefaulting after getting aid"
>> ? a.. By John Poirier and Patrick Rucker John Poirier And Patrick Rucker -
>> Mon Dec 8, 2:33 pm ET
>> WASHINGTON (Reuters) - More than half of mortgages modified in a bid to
>> avoid foreclosure fell delinquent within six months, a top U.S. banking
>> regulator said on Monday, casting doubt on a proposal to rewrite home loans
>> en masse.
>> Comptroller of the Currency John Dugan said it was unclear why so many
>> borrowers ran into trouble again so soon after getting help, and that raises
>> questions about how policy-makers should address loan modifications.
>>
>> "Is it because the modifications did not reduce monthly payments enough to
>> be truly affordable to the borrowers? Is it because consumers replaced lower
>> mortgage payments with increased credit card debt?" Dugan said at a housing
>> conference in Washington organized by the Office of Thrift Supervision.
>>
>> "Is it because the mortgages were so badly underwritten that the borrowers
>> simply could not afford them, even with reduced monthly payments? Or is it a
>> combination of these and other factors?"
>>
>> The crumbling housing market is at the heart of the financial crisis that
>> tipped the United States into recession and dragged down the global economy,
>> and regulators are scrambling to find a way to limit foreclosures.
>>
>> Sheila Bair, chairman of the Federal Deposit Insurance Corp, has been a big
>> proponent of a home loan modification program that would encourage lenders
>> to rework a greater number of mortgages by pledging public money to share
>> the cost of defaults on restructured loans.
>>
>> However, Dugan's figures suggested that the cost to taxpayers may be high.
>> He said his data showed that of mortgages that were modified in the first
>> three months of 2008, nearly 36 percent had re-defaulted after three months,
>> and almost 53 percent were behind on payments by six months.
>>
>> The OCC will release a report on mortgages later this month that will show
>> increasing delinquencies and foreclosures on mortgages held by the largest
>> national banks and federally regulated thrifts, the agency said.
>>
>> John Reich, director of the Office of Thrift Supervision, said he had
>> "concerns" about allocating too much federal money to loan modifications.
>> FDIC's Bair said bank regulators needed to look at the redefault data
>> "carefully" to figure out what caused so many borrowers to slip back into
>> arrears."
>>
>> Now here's a wild idea. ?How about providing some of that money to the
>> people who worked, waited, saved and rented until they bought a house they
>> could afford. ?Or what about a break for the 70% of Americans who got fixed
>> rate mortgages and are actually making their monthly house payments?
>>
>> Irish Mike
>
>Now here's a wild idea. How about providing some of that money to
>the
>people who worked, waited, saved and rented until they bought a house
>they
>could afford. Or what about a break for the 70% of Americans who got
>fixed
>rate mortgages and are actually making their monthly house payments?
>
>
>Irish Mike
>
>
> you should know that refinancing only is to generate new closing
>cost?

What if refinancing at a lower interest rate saves a home owner tens
of thousands of dollars over the life of the mortgage?

Is the bank still Eeeevil for taking the money for the closing costs?

Hmmm?


   
Date: 09 Dec 2008 22:00:02
From: garycarson
Subject: Re: Libeeral insanity - subprime home owners re-defaulting
On Dec 9 2008 7:53 PM, FL Turbo wrote:
> > you should know that refinancing only is to generate new closing
> >cost?
>
> What if refinancing at a lower interest rate saves a home owner tens
> of thousands of dollars over the life of the mortgage?

What is the live of the mortgage?

>
> Is the bank still Eeeevil for taking the money for the closing costs?

Yes.

The closing costs that the bank takes is just prepaid interest, which is
effectively much, much higher than they represent because they represent
the expected life of a mortgage to be longer than it really is.

______________________________________________________________________ 
RecGroups : the community-oriented newsreader : www.recgroups.com




    
Date: 10 Dec 2008 06:16:38
From: Beldin the Sorcerer
Subject: Re: Libeeral insanity - subprime home owners re-defaulting

"garycarson" <garycarson@alumni.northwestern.edu > wrote in message
news:2g2416xm01.ln2@recgroups.com...
> On Dec 9 2008 7:53 PM, FL Turbo wrote:
> > > you should know that refinancing only is to generate new closing
>> >cost?
>>
>> What if refinancing at a lower interest rate saves a home owner tens
>> of thousands of dollars over the life of the mortgage?
>
> What is the live of the mortgage?
>
>>
>> Is the bank still Eeeevil for taking the money for the closing costs?
>
> Yes.
>
> The closing costs that the bank takes is just prepaid interest, which is
> effectively much, much higher than they represent because they represent
> the expected life of a mortgage to be longer than it really is.
>
>
Carson, would you PLEASE stop babbling about shit you apparently don't
understand?

POINTS are prepaid interest. They're specifically designed to buy down the
interest rate, and there's some relatively simple math involved in
determining whether it makes sense to do it or not.

CLOSING COSTS involve legal fees, taxes, deed registration fees, title
insurance, and all the happy horseshit that goes along with filing a
mortgage.




 
Date: 09 Dec 2008 05:45:03
From: FellKnight
Subject: Re: Libeeral insanity - subprime home owners re-defaulting
On Dec 9 2008 3:21 AM, Irish Mike wrote:

> I have maintained from the beginning that the root cause of the current
> financial disaster was the Democrat's subprime entitlement loan programs to
> unqualified borrowers. When Bill Clinton made it a requirement for F-MAE
> and F-MAC to have up to 50% of their multi-billion dollar investment
> portfolio in these unsound subprime loans it sent a message to Wall Street
> to write as many of them as they could because F-MAE and F-MAC would buy
> them. Plus Obama helped ACORN file a law suit blocking the merger of an
> Illinois saving and loan company because they did not make enough subprime
> loans to minorities. Obama won in court and banks and loan companies all
> across the country lowered their lending standards for high risk subprime
> mortgages. The banks were making a fortune on the upfront mortgage
> processing fees and pumped that money back in to the housing market to make
> even more subprime mortgages. The end result was huge inflation in the
> housing market and when housing prices finally crashed, it took the banks,
> who had been packaging and reselling subprime mortgages, down with it.
>
> So the bottom line is that you have politicians trying to buy votes with
> subprime mortgage loans to people who wouldn't normally have qualified to
> buy a pup tent. They bought houses they couldn't afford with mortgages they
> were too stupid to read. When the housing market crashed, all these
> subprime borrowers just defaulted on their mortgage payments. They weren't
> worried about ruining their credit rating because it was shit to begin with.
> And they didn't put any money down on the house so they had no skin in the
> game. They just stopped making the mortgage payments. Not to mention that
> most of them were already up to their necks in credit card debt and had one
> or two no money down car loans.
>
> So what do the morons in congress do? They go to these unqualified buyers
> and bail them out again. They refinance their mortgages and reduce their
> principal and/or mortgage loan interest rates! So what happened? Now
> here's the beauty part. A study showed that within six months of getting
> this bail out on these subprime mortgages, "53% of these people re-defaulted
> on their mortgages". When congress lowered the monthly payments on the
> houses they bought but couldn't afford, they just went out and ran up more
> credit card debt! If it wasn't so damn sad it would be funny. And speaking
> of funny, you've got that ass wipe Barney Frank lecturing congress and the
> Republicans about how to be more financially responsible! Now this is the
> same Barney Frank, and his Democrat pals, who have controlled congress and
> chaired all of the banking and finance committees for the past two years.
> Between 8/07 and 8/08, under Barney Franks "leadership" F-MAE and F-MAC lost
> 90% of their stock value!
>
>
> "Homeowners redefaulting after getting aid"
> a.. By John Poirier and Patrick Rucker John Poirier And Patrick Rucker -
> Mon Dec 8, 2:33 pm ET
> WASHINGTON (Reuters) - More than half of mortgages modified in a bid to
> avoid foreclosure fell delinquent within six months, a top U.S. banking
> regulator said on Monday, casting doubt on a proposal to rewrite home loans
> en masse.
> Comptroller of the Currency John Dugan said it was unclear why so many
> borrowers ran into trouble again so soon after getting help, and that raises
> questions about how policy-makers should address loan modifications.
>
> "Is it because the modifications did not reduce monthly payments enough to
> be truly affordable to the borrowers? Is it because consumers replaced lower
> mortgage payments with increased credit card debt?" Dugan said at a housing
> conference in Washington organized by the Office of Thrift Supervision.
>
> "Is it because the mortgages were so badly underwritten that the borrowers
> simply could not afford them, even with reduced monthly payments? Or is it a
> combination of these and other factors?"
>
> The crumbling housing market is at the heart of the financial crisis that
> tipped the United States into recession and dragged down the global economy,
> and regulators are scrambling to find a way to limit foreclosures.
>
> Sheila Bair, chairman of the Federal Deposit Insurance Corp, has been a big
> proponent of a home loan modification program that would encourage lenders
> to rework a greater number of mortgages by pledging public money to share
> the cost of defaults on restructured loans.
>
> However, Dugan's figures suggested that the cost to taxpayers may be high.
> He said his data showed that of mortgages that were modified in the first
> three months of 2008, nearly 36 percent had re-defaulted after three months,
> and almost 53 percent were behind on payments by six months.
>
> The OCC will release a report on mortgages later this month that will show
> increasing delinquencies and foreclosures on mortgages held by the largest
> national banks and federally regulated thrifts, the agency said.
>
> John Reich, director of the Office of Thrift Supervision, said he had
> "concerns" about allocating too much federal money to loan modifications.
> FDIC's Bair said bank regulators needed to look at the redefault data
> "carefully" to figure out what caused so many borrowers to slip back into
> arrears."
>
>
>
> Now here's a wild idea. How about providing some of that money to the
> people who worked, waited, saved and rented until they bought a house they
> could afford. Or what about a break for the 70% of Americans who got fixed
> rate mortgages and are actually making their monthly house payments?
>
> Irish Mike

Here's a wilder idea, Mike... how about not providing a break for any
specific groups?

This story of yours does not surprise me in the least. If anything, the
fact that *only* 53% of RE-FIs re-defaulted is the surprising part. I
happen to know from personal experience how difficult it is to get out of
financial trouble once you get past a certain point, and 6 months is
simply not even close enough to begin to get out of a situation that bad.
6 years is more like it. It's a long, tough road out of the hole.

Fell
--
Be Loud. Be Proud. Be Considerate!

------ 
: the next generation of web-newsreaders : http://www.recgroups.com



 
Date: 09 Dec 2008 04:04:47
From:
Subject: Re: Libeeral insanity - subprime home owners re-defaulting
On 9 dic, 06:21, "Irish Mike" <mjos...@ameritech.net > wrote:
> I have maintained from the beginning that the root cause
> of the current financial disaster was the Democrat's
> subprime entitlement loan programs to unqualified borrowers. =A0

You keep beating the "unqualified borrowers" mantra.
How about the "qualified" ones.
Talk about "Corporations redefaulting after getting aid," for a
change.
People keep beating "Reps/Dems," "Libs/Cons," as if those labels made
any major difference.
This never was a political issue. "It's the economy, ..."


  
Date: 10 Dec 2008 18:33:45
From:
Subject: Re: Libeeral insanity - subprime home owners re-defaulting
On 9 dic, 14:35, "La Cosa Nostradamus" <a6f4...@webnntp.invalid >
wrote:
>
> "..."
>

I'm considering erasing that Blue October violin solo off my pc.
Really sorry.


  
Date: 09 Dec 2008 18:31:28
From: Tim Norfolk
Subject: Re: Libeeral insanity - subprime home owners re-defaulting
On Dec 9, 1:37=EF=BF=BDpm, "Irish Mike" <mjos...@ameritech.net > wrote:
> <gruntingdw...@yahoo.com> wrote in message
>
> news:de20d489-4aed-46cd-a52a-7c2c0bf6da94@r28g2000vbp.googlegroups.com...
> On 9 dic, 06:21, "Irish Mike" <mjos...@ameritech.net> wrote:
>
> > I have maintained from the beginning that the root cause
> > of the current financial disaster was the Democrat's
> > subprime entitlement loan programs to unqualified borrowers.
>
> You keep beating the "unqualified borrowers" mantra.
> How about the "qualified" ones.
> Talk about "Corporations redefaulting after getting aid," for a
> change.
> People keep beating "Reps/Dems," "Libs/Cons," as if those labels made
> any major difference.
> This never was a political issue. "It's the economy, ..."
>
> No bucko, the economy is in trouble because of politicians. =EF=BF=BDThey=
tried to
> push their social political agenda by manipulating the free market to buy
> votes. =EF=BF=BDThe foundation of the Democrat political strategy is base=
d on
> welfare, entitlements and give aways. =EF=BF=BDThey've learned that if yo=
u rob Peter
> and give it to Paul, Paul will vote for you.
>
> Irish Mike

Please explain how the Democrats and those with $100-$300 billion in
sub-prime mortgages translates into $50 trillion or so in bad paper.
Much of the blame goes to the Congress of the past 10 years (mostly
Republicans) who de-regulated the finance houses. They in turn were in
bed with the bond ratings firms. It doesn't help that the SEC office
in charge of oversight was reduced to 1 inspector.

I personally believe that the root causes of our current plight go
back to the 60's. America overspent on the Vietnam War and Great
Society, and simultaneously became a net oil importer. By 1975, we
were running our first trade deficits, which have grown every year.

The Reagan revolution was made possible as a temporary blip caused by
the reduction of oil prices as OPEC weakened, and by the dis-
investment by US industry in research and infrastructure, which saved
a lot of money in the short term. Also, all of that OPEC and Japanese
money had to be invested somewhere, and they bought us.

There was another blip for Clinton, because of the large influx of
capital from retirement funds, combined with the dotcom bubble.

For the first few years of Bush's presidency, inflated house prices
caused another bubble, and yet another influx of money, this time from
China, Britain and again Japan.

Yes, our politicians appear to be corrupt. I am most angry because
they, and the finance houses, also appear to be gullible and stupid
beyond belief.


  
Date: 09 Dec 2008 13:37:21
From: Irish Mike
Subject: Re: Libeeral insanity - subprime home owners re-defaulting

<gruntingdwarf@yahoo.com > wrote in message
news:de20d489-4aed-46cd-a52a-7c2c0bf6da94@r28g2000vbp.googlegroups.com...
On 9 dic, 06:21, "Irish Mike" <mjos...@ameritech.net > wrote:
> I have maintained from the beginning that the root cause
> of the current financial disaster was the Democrat's
> subprime entitlement loan programs to unqualified borrowers.

You keep beating the "unqualified borrowers" mantra.
How about the "qualified" ones.
Talk about "Corporations redefaulting after getting aid," for a
change.
People keep beating "Reps/Dems," "Libs/Cons," as if those labels made
any major difference.
This never was a political issue. "It's the economy, ..."

No bucko, the economy is in trouble because of politicians. They tried to
push their social political agenda by manipulating the free market to buy
votes. The foundation of the Democrat political strategy is based on
welfare, entitlements and give aways. They've learned that if you rob Peter
and give it to Paul, Paul will vote for you.

Irish Mike




  
Date: 09 Dec 2008 08:35:33
From: La Cosa Nostradamus
Subject: Re: Libeeral insanity - subprime home owners re-defaulting
On Dec 9 2008 7:04 AM, gruntingdwarf wrote:


> This never was a political issue. "It's the economy, ..."


fav dem quote

"..."

it means = i dont have the answer but reps are not right

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