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Re: "making home affordable" how many of us can get our mortgage principal reduced?
Ironhead, here's your quote - "if the credit market didn't crash.. because of wallstreet,, there wouldn't be 1/100th of the bank owned homes going for cheap money, draging everyones home value down"
And that's just not right.
The banking industry IS screwed up. And it's being made even worse. Every time some "smart guy" tries to "regulate" or "manipulate" the market, they create problems. Here, we've got the classic over-reaction.
Banks got hammered for making loans they never should have made. When the loans defaulted the entire market started turning down.
Let's make it simple. People tried to manipulate the system, articifially FORCING unsafe credit back in the late 90s and early 00s. Then, between the bubble bursting (which started in '99) and then 9/11, the economy really started dragging. The dragging economy started really hurting business. NOT credit drying up.
Now, we've got a government telling banks to issue credit, but then also telling them to never again issue bad credit. Huh? So, tell me to loan money but to not loan money? How does that work? Fannie and Freddie (who, btw just came back for ANOTHER bailout) don't have the cash. Nobody has to approve somebody "Keeping" a mortgage. But, "Getting" a mortgage requires review, and the application of the NEW credit policies (many of which imposed by the Federal government). Those same banks are now under constant review by the feds, and are scrutinized in terms of what kind of credit risk they're assuming. The old mortgages are already on the books, so from an SEC or FED perspective, it doesn't matter.
You're right. It sucks. And it's a vicious circle. But it still comes back to the start. That is, people bought crap that they shouldn't have. It was allowed - and even promoted. That started a chain reaction that's now affecting all kinds of other people like your mom. Difference is, we're out of cash. Even China is starting to walk away from our debt.
Ironhead, here's your quote - "if the credit market didn't crash.. because of wallstreet,, there wouldn't be 1/100th of the bank owned homes going for cheap money, draging everyones home value down"
And that's just not right.
The banking industry IS screwed up. And it's being made even worse. Every time some "smart guy" tries to "regulate" or "manipulate" the market, they create problems. Here, we've got the classic over-reaction.
Banks got hammered for making loans they never should have made. When the loans defaulted the entire market started turning down.
Let's make it simple. People tried to manipulate the system, articifially FORCING unsafe credit back in the late 90s and early 00s. Then, between the bubble bursting (which started in '99) and then 9/11, the economy really started dragging. The dragging economy started really hurting business. NOT credit drying up.
Now, we've got a government telling banks to issue credit, but then also telling them to never again issue bad credit. Huh? So, tell me to loan money but to not loan money? How does that work? Fannie and Freddie (who, btw just came back for ANOTHER bailout) don't have the cash. Nobody has to approve somebody "Keeping" a mortgage. But, "Getting" a mortgage requires review, and the application of the NEW credit policies (many of which imposed by the Federal government). Those same banks are now under constant review by the feds, and are scrutinized in terms of what kind of credit risk they're assuming. The old mortgages are already on the books, so from an SEC or FED perspective, it doesn't matter.
You're right. It sucks. And it's a vicious circle. But it still comes back to the start. That is, people bought crap that they shouldn't have. It was allowed - and even promoted. That started a chain reaction that's now affecting all kinds of other people like your mom. Difference is, we're out of cash. Even China is starting to walk away from our debt.
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