Irvine Housing Blog

This might make sense ONLY if applied to those CURRENT on their payments.

FHA already offers this if you HAVE an FHA loan with no late payments in the past 12 months. No appraisal is required and much higher DTI allowed.

The idea being: what does the value or DTI matter if the borrower has stayed current and the refi will LOWER the payment? The lower payment benefits the borrower and make the loan less risky for FHA (more likely not to default).

However… This streamlined loan can only cover the current balance + UFMIP so borrowers cover the cost.

Obama’s program would probably include delinquent borrowers, unemployed and pay your cost… All BAD ideas.

They’re just floating this out there to keep holdouts from walking away.

I’m also irritated how so many think falling home prices are a bad thing. Houses aren’t going to go to zero! They’ll go to prices that local wages can support. I live in Las Vegas and a lot of my young co-workers are now able to afford a decent home with their salary. It would have been a pipe dream five years ago.

The big bank/industry guys were taken care of for their imprudence and support of Clinton/bush/obama insane fiscal and lending policy, by the Bernank and their full ownership of the fed and the government.  You little guys?  no, FED looting and handouts are for the rich, you little guys will only be…homeless.

Even the rich bank toy MBA defaulted with utter impunity on their mortgage for their new building in DC, remember?  So ease up on John and Jane Doe who got had.  Second, the purpose of the re-proposed program is almost solely to stop bank continuing capital erosion by taking bad loans off of bank books, moving it to taxpayers largely through fha and thus (they hope) recapitalize and save the banks (especially Bank of America).  The loss-to-come to banks from further home value slide recognition is what…two, three trillion at this rate? At all costs, save the banks, since almost all banks are still broke if liquidated tomorrow: FED inflation failed to work, bad accounting failed to work, taxpayer paid home credits failed to work, immigration of ten million people in five years failed to work.  For brevity, I won’t lay out why this proposal isn’t rewarding imprudence of middle class people (banks, yes).  Generally, real estate salespeople vehemently are against it because it is VERY BAD for the near-term incomes of real estate agents (in California especially).  The full proposal so far is as bad as the past ones (enacted and not enacted) to “help” homeowners though; half measure and full of hooks to continue the misery of the middle class.

...The REO rental program is an even worse idea… ...and makes the government one of the biggest landlords in the country…

What’s even more scary is that such a program is yet another giant leap towards socialism.

How many more leaps until we start seeing Section 8 tenants in such places as Turtle Rock?  Heck, why stop @TR?  I am sure there are those who “deserve” to live in Shady Canyon.

Government sponsored extend and pretend: Trade in your 2005 vintage 5.x rate or higher purchase loan you cannot afford for a 30 year fixed 4x rate (extended for another 6 years which negates savings on rate BTW) for a recourse loan you still can’t afford. Genius!

I want this program to get going, not because it will lower payments for borrowers, but turn every mortgage lender into a millionaire as we churn our way again to success. OC will become as it was in 2005-2006, a land of milk and honey - where waitresses and busboys could become overnight loan officers making $10k per month in the biz. The Daniel Sadek’s and others who created the mass refi shops must be praying for this program to start. REDLINE BABY!

My .02c

Soylent Green Is People.

This proposal is appealing to the administration because they know it would never get through congress.

I must be living in an alternate universe: is there any proposal the administration could get through Congress?

If Obama adopted the entire Republican Party platform - no, not the national one, but that of, say Utah - and proposed legislation to implement it in Congress, it would be blocked unanimously by the entire House Republican caucus on the grounds that it is socialist, un-American, and an affront to all mothers and apple pie eaters everywhere.

If not getting through Congress is the standard for likability, then the administration should like everything.

Police: Renters pose as owners, steal home-equity cash

http://www.ocregister.com/news/suspects-314604-derry-home.html

Tying Health Problems to Rise in Home Foreclosures

http://online.wsj.com/article/SB10001424053111904199404576538293771870006.html?mod=WSJ_hp_LEFTTopStories

Government intervention is the problem…Here’s an idea:
Release non violent offenders from the prisons, and the others should perform hard labor to pay for their crimes, NOT sit around to watch tv and look busy like a lot of others on the taxpayer’s dime….

More info on the feds plan here:

http://www.zerohedge.com/contributed/feds-plan-rumors-news

“Government’s expensive idea to reward imprudent borrowing”

A government of the DEADBEATS, by the DEADBEATS, for the DEADBEATS, is DESTINED to perish from this earth.

Thank God almighty!

I don’t understand why you think this is a bad thing or why you think it will cost money? 

I was a mortgage broker for 15 years.  FHA and VA have had programs like this for decades.  The idea is that the government is has already LENT the money to pay for these underwater homes.  Anything they can do to keep borrowers paying on these loans REDUCES losses to the tax payer.  So, if you have borrowers who are current on their loans and are able to reduce their monthly payments by allowing them to take advantage of current low rates that are already available in the market, it only encourages them to continue to pay.

FHA’s criteria is:

*Must be current on your mortgage for the past 12 months
*Must reduce borrower’s monthly mortgage payment (although I believe a payment increase of 10% is allowed if the borrower is reducing the term of their loan from 30 years down to a new 15 year loan)
*Loan amount may not be increased above current principal value unless the increase is supported by an appraisal (which won’t happen in this case)
*No Credit Check other than a mortgage rating
*No employment or income verification
*No appraisal
*Borrowers must now pay new higher Mortgage Insurance Premiums that FHA charges

This is a good thing.  It saves us money.  The alternative is to let them walk and take a loss on their house.  That’s not good for us the taxpayers (the lender)