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Obama Will Make Taxpayers Guarantee Mortgages Without Checking Borrowers' Incomes or Employment
Topic Started: Mar 9 2012, 07:26 AM (203 Views)
LTC8K6
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Assistant to The Devil Himself
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With no authorization from Congress, President Barack Obama has announced that his administration--through the Federal Housing Administration--will insure refinanced mortgages for 2 to 3 million borrowers without verifying their income or even if they hold a job, according to the Department of Housing and Urban Development (HUD).

Obama announced his latest mortgage program at a White House news conference on Tuesday.

Any American with a mortgage insured by the Federal Housing Administration (FHA) endorsed on or before May 31, 2009 and who is current with their mortgage payments would qualify, according to HUD.

No additional underwriting, or examining the verification of income, employment status or creditworthiness, will be done.

“Basically that’s because they already have an FHA loan and that’s just refinancing the same loan,” HUD spokesman Lemar C. Wooley told CNSNews.com.

Wooley further explained in an e-mail, “Even if their circumstances have changed, they are still managing to be current on the original higher priced mortgage, so that’s the proof to the FHA that they can handle the lower payments.”

“The streamline refinance process is only available for FHA-insured mortgages that are performing – the borrower is paying the mortgage,” Wooley said. He added, “By not requiring verification of income and other underwriting requirements, FHA reduces the cost of the transaction, as well as the time it takes – all to the mutual advantage of the borrower, the lender and FHA.”


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“Today we’re taking it a step further--we are cutting by more than half the refinancing fees that families pay for loans ensured by the Federal Housing Administration,” Obama said at the press conference on Tuesday. “That’s going to save the typical family in that situation an extra $1,000 a year, on top of the savings that they’d also receive from refinancing. That would make refinancing even more attractive to more families. It’s like another tax cut that will put more money in people’s pockets. We’re going to do this on our own. We don’t need congressional authorization to do it.”


Hmmm... seems like this is a big part of the way housing got into trouble...

If they are current, then it seems like that would mean they can handle the payments and really don't need a refi...

http://cnsnews.com/news/article/obama-will-make-taxpayers-guarantee-mortgages-without-checking-borrowers-incomes-or
Edited by LTC8K6, Mar 9 2012, 07:27 AM.
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Buying the election one executive order at a time.
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kbp

It lowers or eliminates the spread on mortgage bonds backing them

...but, I guess it is Ben that's buying those bonds now anyway. Indirect redistribution.
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cks
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Hey, but all the rest of the shubbs in this country who are trying to refinance will have to spend the money and time to present all the verification so that they can refinance. So, they get to pay twice - for themselves and for those with FHA loans. Is it no wonder that this country economically is going to hell in a handbasket?
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