ptown_trojans_1
Posts: 7,632
Feb 12, 2011 11:39am
Yesterday, the Obama administration unveiled a plan on reforming and reducing the federal role on mortgages. The plan would raise the standards for mortgages and would end Fredie and Fannie.
Of course, Republicans welcomed the plan, and some Democrats came out against.
But, given the mortgage mess caused by both Freddie and Fannie and the banks, it is essential to reform both aspects of the causes, and this is a great move in my view.
We'll see how it plays out on the Hill.
http://www.washingtonpost.com/wp-dyn/content/article/2011/02/11/AR2011021106421_pf.html
http://thehill.com/blogs/on-the-money/banking-financial-institutions/143445-administration-housing-plan-no-more-fannie-freddie
From the report due out:
http://www.washingtonpost.com/wp-dyn/content/article/2011/02/11/AR2011021106730_pf.html
Of course, Republicans welcomed the plan, and some Democrats came out against.
But, given the mortgage mess caused by both Freddie and Fannie and the banks, it is essential to reform both aspects of the causes, and this is a great move in my view.
We'll see how it plays out on the Hill.
http://www.washingtonpost.com/wp-dyn/content/article/2011/02/11/AR2011021106421_pf.html
http://thehill.com/blogs/on-the-money/banking-financial-institutions/143445-administration-housing-plan-no-more-fannie-freddie
From the report due out:
http://www.washingtonpost.com/wp-dyn/content/article/2011/02/11/AR2011021106730_pf.html
BGFalcons82
Posts: 2,173
Feb 12, 2011 12:20pm
This makes too much sense, so my antennae are up. I am extremely cynical about political "good intentions" as they are typically something completely different. I agree, ptown, we have to see how this plays out.
Writerbuckeye
Posts: 4,745
Feb 12, 2011 1:03pm
This is 180 degrees contrary to what Obama personally believes, so far as government policies to help people buy homes.
I'm deeply, deeply suspicious of how/why it's come about and what will ultimately be involved.
I'm deeply, deeply suspicious of how/why it's come about and what will ultimately be involved.
ptown_trojans_1
Posts: 7,632
Feb 12, 2011 1:10pm
I find it interesting. It sort of came from left field. I'm cautious just as you guys are.
As always, it all depends on how Congress reacts and either supports to cuts the plan in half.
As always, it all depends on how Congress reacts and either supports to cuts the plan in half.
S
stlouiedipalma
Posts: 1,797
Feb 12, 2011 1:14pm
And all you good people thought Barack was a socialist.
I think it's a good thing, reducing the govt.'s role in the mortgage industry. I see that you all are looking at this with a bit of a jaundiced eye. I'm sure that Congress will as well.
I think it's a good thing, reducing the govt.'s role in the mortgage industry. I see that you all are looking at this with a bit of a jaundiced eye. I'm sure that Congress will as well.
believer
Posts: 8,153
Feb 12, 2011 1:30pm
Obama is a socialist (the American equivalent of it at least) but since the results of the November elections, he's been attempting to appear centrist for political expediency. In other words, he knows he has a huge re-election battle just around the corner.stlouiedipalma;675411 wrote:And all you good people thought Barack was a socialist.
I think it's a good thing, reducing the govt.'s role in the mortgage industry. I see that you all are looking at this with a bit of a jaundiced eye. I'm sure that Congress will as well.
While Fannie & Freddie need to become history and mortgage standards need reviewed, you can be sure that BHO's true colors lie beneath the centrist facade.
Obama is taking a good game here, folks, but I sincerely doubt his heart is in it. He's calling for "reform" but I'd bet my mortgage he's actually hoping interest will wane as the economy improves. He can tell his critics that he made overtures to the idea but no one was serious about making it stick.
IMHO this is all fluff and in the end will be just standard political posturing.
S
stlouiedipalma
Posts: 1,797
Feb 12, 2011 1:41pm
It could all be posturing, who knows? We'll have to see how this all plays out before we know for sure.
Huge re-election battle? Possibly, but given the who's who of GOP contenders out there I don't know that it will be tough.
Huge re-election battle? Possibly, but given the who's who of GOP contenders out there I don't know that it will be tough.
Belly35
Posts: 9,716
Feb 12, 2011 1:43pm
100% "standard political posturing"
believer
Posts: 8,153
Feb 12, 2011 1:44pm
If the economy doesn't improve dramatically in the next year the Repubs could run Nancy Pelosi and beat BHO. lol
ptown_trojans_1
Posts: 7,632
Feb 12, 2011 1:50pm
Unsure. Right now, at 9% unemployment, the President's approval rating has been between 45-55%.believer;675439 wrote:If the economy doesn't improve dramatically in the next year the Repubs could run Nancy Pelosi and beat BHO. lol
Too many things can happen between now and then though, if the economy stays the same, it still might be enough to allow him to win.
But, I actually think the President is sincere about this move. I honestly think the market crash forced him to move toward the center policy wise. While, he may want something different, he knows he cannot govern there. It is a great example of setting aside personal views for what is best for the country. (Something W rarely did, until the very end).
But, how Congress reacts is the key.
iclfan2
Posts: 6,360
Feb 12, 2011 2:50pm
Must be a decent plan if these crazy groups have issues with it. You have to do what is best for the majority, not these fringe groups. I'm with the rest of you though, Obama can't really like this.A coalition of progressive groups, including the National Council of La Raza and the NAACP, released a statement Friday expressing concern about all three proposals, saying the first two "would entirely fail" to meet the goal of ensuring that families have access to credit and "will instead marginalize communities of color."
B
BoatShoes
Posts: 5,703
Feb 12, 2011 5:14pm
Hopefully we can get to the bottom of what Barry is really up to.....
Tobias Fünke
Posts: 2,387
Feb 12, 2011 5:34pm
iclfan2;675556 wrote:You have to do what is best for the majority
....excuse me sir, we're going to need you to chop up that GOP member card.
believer
Posts: 8,153
Feb 12, 2011 7:09pm
Perhaps, but it's a damning indicator that we now see "official" unemployment figures of 9% as "good enough" to insure the re-election of a sitting president. Not long ago anything above 5% would be a huge hurdle in a re-election bid.ptown_trojans_1;675450 wrote:Unsure. Right now, at 9% unemployment, the President's approval rating has been between 45-55%.
Too many things can happen between now and then though, if the economy stays the same, it still might be enough to allow him to win.
But I will say that if BHO is serious about stiffening mortgage standards and eliminating Fannie & Freddie and is successful at doing so, then - yes - he becomes a whole lot more re-electable.
I
I Wear Pants
Posts: 16,223
Feb 12, 2011 8:39pm
It isn't "good enough" but the not long ago that you speak of wasn't during an economic downturn of this size so it really isn't right to compare.
G
gut
Posts: 15,058
Feb 12, 2011 8:43pm
Once again, stupid Americans and greedy bankers will ruin it for the rest of us. FHMA or whatever it is letting people buy homes for 3-5% down is a good thing for the fiscally responsible. You have to debate the opportunity cost of your money for paying interest (pre-tax!) vs. a return you can get investing, but generally if you let me leverage an asset that is virtually guaranteed to be worth more in 30 years (even after the bubble) I will take as much as you give me. Mostly ARM's that got all the stupid and irresponsible into trouble, but I feel for those who WERE responsible and simply couldn't make payments because of losing a job.
Ty Webb
Posts: 2,798
Feb 12, 2011 9:48pm
This sounds like a good idea
CenterBHSFan
Posts: 6,115
Feb 12, 2011 10:13pm
Hmmm. Not sure I have a problem with this, other than being suspicious 
Truthfully, there's nothing wrong with being a renter/leaser. Too many people look at monthly payments as a deciding factor on whether to buy a house, not taking into consideration things like: property taxes, insurance, upkeep, etc. which really makes it tight for them. And then if they DO end up losing their job(s) they find that they have nothing saved to help out with. That's when we see problems.
Truthfully, there's nothing wrong with being a renter/leaser. Too many people look at monthly payments as a deciding factor on whether to buy a house, not taking into consideration things like: property taxes, insurance, upkeep, etc. which really makes it tight for them. And then if they DO end up losing their job(s) they find that they have nothing saved to help out with. That's when we see problems.
O-Trap
Posts: 14,994
Feb 12, 2011 10:52pm
At first glance, I'm thinking that Barack is taking a page out of Slick Willie's book of fiscal conservatism.
I'm waiting it out to see what comes of this, but on its face, I actually like it. In my book, less government intervention in private enterprise is almost ALWAYS a good thing. It seems to fly contrary to his previous modus operandi, so I'm balking at it as a true goal, but if it is, then I'm actually impressed with President Obama ... pleasantly so.
I'm waiting it out to see what comes of this, but on its face, I actually like it. In my book, less government intervention in private enterprise is almost ALWAYS a good thing. It seems to fly contrary to his previous modus operandi, so I'm balking at it as a true goal, but if it is, then I'm actually impressed with President Obama ... pleasantly so.
G
gut
Posts: 15,058
Feb 13, 2011 12:36am
CenterBHSFan;676237 wrote: Truthfully, there's nothing wrong with being a renter/leaser. Too many people look at monthly payments as a deciding factor on whether to buy a house, not taking into consideration things like: property taxes, insurance, upkeep, etc. which really makes it tight for them. And then if they DO end up losing their job(s) they find that they have nothing saved to help out with. That's when we see problems.
True, but if you can afford $800 a month in rent, you can afford an $800 a month mortgage, and the tax deduction should pretty well close to cover the other stuff. Then you have something to show for it. Most people are screwed either way if they lose a job - the old rule of thumb used to be 6 months of savings, and now more like 12 months, maybe 18.
F
Footwedge
Posts: 9,265
Feb 13, 2011 1:55am
I see that Obama's plan of minimizing the risk of another housing bubble has all the righties here all befuddled. Here's a thought...how about a tip of the cap to a president that is doing the right thing? God knows Bush didn't do shit to curb the unregulated monstrocity.
I find it amusing that whenever the banks were being hammered by this administration for their stake in the h. bubble, the same crowd cried foul. Makes me SMH at how partisanship damages brain cells.
I find it amusing that whenever the banks were being hammered by this administration for their stake in the h. bubble, the same crowd cried foul. Makes me SMH at how partisanship damages brain cells.
Cleveland Buck
Posts: 5,126
Feb 13, 2011 2:19am
I don't know what his goal is here, but if he were to eliminate Fannie and Freedie (which he won't), all he would have to do is break up the big banks and I would vote for him in 2012.
believer
Posts: 8,153
Feb 13, 2011 7:01am
Oh we're not befuddled. Like O-Trap says, BHO is simply mimicking Bill Clinton at this point....you know, get your ass kicked in a mid-term election and then pretend "you've seen the light" and have decided to govern from the center.Footwedge;676393 wrote:I see that Obama's plan of minimizing the risk of another housing bubble has all the righties here all befuddled.
Obama keeps making speeches about the need for the Feds to get its fiscal house in order while making separate speeches about spending even more taxpayer dollars on frivolous bullshit like high-speed rail for example.
If BHO is serious about the Fannie/Freddie/mortgage standards thing I'll be the first to admit I'm wrong, but BHO has a track record of talking about being fiscally responsible while spending like a drunken sailor.
Mr. 300
Posts: 3,090
Feb 13, 2011 8:41am
If he truly wants the private sector to take this over, then that's a plan most Americans will support. Obama is in full re-election mode, and it may end up working for all of us. can hope for the best, but the dems have put us in worse shape than the repubs did. Checks and balances are now in place thanks to the American voters in 2010 so we'll see if thise puts us on the right path.
BGFalcons82
Posts: 2,173
Feb 13, 2011 11:28am
O-Trap;676275 wrote:It seems to fly contrary to his previous modus operandi, so I'm balking at it as a true goal, but if it is, then I'm actually impressed with President Obama ... pleasantly so.
THIS is exactly what he's looking for.