President Obama’s Weekly Address: Urging GOP Lawmakers to Help Homeowners

[cal04]

Source: ABC News

Four years after the economic crisis threatened to destroy the American economy, the president is urging Republican lawmakers to help homeowners who were unfairly disadvantaged by the housing crisis at the heart of the recession.

“We know the biggest cause of that crisis was reckless behavior in the housing market,” the president said in his weekly address. “Millions of Americans who did the right and responsible thing – who shopped for a home, secured a mortgage they could afford, and made their payments on time – were badly hurt by the irresponsible actions of others.”

(snip)
He urged lawmakers to act on his plan to help homeowners refinance at lower rates.

“It’s a plan that has the support of independent, nonpartisan economists and leaders across the housing industry,” Obama said. “But Republicans in Congress worked to keep it from even getting to a vote. And here we are – seven months later – still waiting on Congress to act. … This makes no sense. Last week, mortgage rates were at historic lows. But instead of helping more and more hardworking families take advantage of those rates, Congress was away on break. Instead of worrying about you, they’d already gone home to worry about their campaigns.”

Read more: http://abcnews.go.com/blogs/politics/2012/09/president-obamas-weekly-address-urging-gop-lawmakers-to-help-homeowners/

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Weekly Address: It’s Time for Congress to Help Responsible Homeowners
http://www.whitehouse.gov/the-press-office/2012/09/29/weekly-address-it-s-time-congress-help-responsible-homeowners

[midnight]

1. Anyone have details of this plan? I'm hoping it is not tied to the banks volunteering like HAMP/HEMP

[dkf]

2. All he needs are very liberal requirements on loan to value for Freddie and Fannie I imagine.

But if borrowers are commissioned they are still screwed.

He is doing this all backwards anyway. What the housing market needs is a good economy and people who believe its a good economy. When average rents are $200 more than average mortgages, it's not logical that people aren't buying. That leaves the fear factor.

This economy isn't moving because people don't want to risk buying a house or investing. Cash levels in the economy are ridiculously high and lack of velocity is smothering the recovery.

[midnight]

3. Will then it should be advised that helping underwater mortgages should be done without commission.

And then move the money into the street and out of the banks...

[dkf]

6. It would be a huge boon to banks if they get paid off 100% on the dollar

Based on a refi by Freddie or Fannie. It would take the most vulnerable loans off their books.

But then the risk of being underwater moves to the federal government who has basically taken over F and F and you and me as taxpayers.

[davidn3600]

4. HARP 3.0 probably

From what's been talked about they would further lower the LTV requirements along with credit and income requirements provided the homeowner has been making the payments on time.

The problem with HARP has been that banks are not refinancing because of their own overlays.

[Judi Lynn]

5. Obama to Congress: Pass housing bill

Obama to Congress: Pass housing bill

5:04PM EST September 29. 2012 - Seeking to make Congress a major issue in his re-election bid, President Obama called on lawmakers today to pass a bill designed to help struggling homeowners refinance their properties.

"Last week, mortgage rates were at historic lows," Obama said in his Saturday radio address. "But instead of helping more and more hardworking families take advantage of those rates, Congress was away on break."

The proposal would "give every responsible homeowner the chance to save about $3,000 a year on their mortgages by refinancing at lower rates," Obama said.

Obama noted it has been four years since the nation's financial meltdown, an event brought on largely by "reckless behavior in the housing market."

More:
http://www.usatoday.com/story/theoval/2012/09/29/obama-to-congress-pass-housing-bill/1602665//

[sakabatou]

7. "Help? What is this word? We don't know what it means."