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Meet The "Access To Affordable Mortgages" Act: How Congress Will Create The Next Crisis
Submitted by Simon Black via Sovereign Man blog,
Say hello to the next financial crisis, brought to you courtesy of the dumbest new bill of the week: H.R. 5148: Access to Affordable Mortgages Act.
Ordinarily whenever an individual wants to borrow money for a mortgage, the bank conducts due diligence... both on the borrower as well as the property.
It’s in the banks’ interest (as well as the banks’ depositors) to ensure that the property is at least worth as much as the amount being borrowed. Duh.
Congress doesn’t agree. Apparently when banks conduct property appraisals, that seems to unfairly discriminate against some segment of the population trying to buy crap properties.
And we certainly can’t have that going on in the Land of the Free.
So with HR 5148, Congress aims to exempt certain ‘higher-risk mortgages’ from property appraisal requirements.
Curiously, this legislation reverses several provisions in the 1968 ‘Truth in Lending Act’.
It’s as if Congress is now anti- 'Truth in Lending' and pro- 'whatever the hell gets the money on the street'.
And of course, all of this comes at a time when mortgage rates are still near their all-time lows.
You can borrow money to buy a home today at just 4%. That’s less than half the long-term average of 8.5%, and a fraction of the 16%+ people were stuck paying 30 years ago.
Isn’t paying 4% affordable enough? Nope. Not according to Congress.
So now they’re trying to engineer yet another financial crisis by encouraging banks and other lenders to exercise minimal due diligence on their mortgage portfolio.
This comes at a pivotal time. US banks are only now just barely starting to recapitalize after the early days of the financial crisis.
They’ve unloaded their toxic assets to the US government and Federal Reserve.
They’ve borrowed money at essentially 0% from the Fed and loaned it to the Treasury Department at interest (the mother of all scams).
After six years of these freebies and taxpayer-funded bailouts, bank balance sheets are only now starting to clear up.
So what does Congress do? They propose a new law to screw up bank balance sheets all over again.
It’s idiocy on an epic scale... and it makes one wonder what team of monkeys is coming up with these ideas.
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Well truth is so overrated. If crooks want to sell crap proprieties to dumbfucks, that's their business. It's called capîtalism. Imagine all the money lawyers are gonna make! Congresscritters are lawyers... so why does it surprise you that they are writing bills to help their future job prospects?
Create it, they are it.
History doesn't rhyme. It's repeats itself exactly, word for word, apparently.
And what exactly is the threshold for this? ...."higher-risk mortgage loans of $250,000 or less if such a loan appears on the balance sheet of the creditor of the loan for at least three years."
Government Recreating the Mortgage Debacle they so Wisely Bailed Out Bankers for Last Time and sent Nobody to Jail for Doing.
Who the fuck thinks this shit up?
Here's who thought this shit up...
http://en.wikipedia.org/wiki/Blaine_Luetkemeyer
Simon Black’s agenda obscure the logic of this Ponzi scheme.
Simon, there are trillions of dollars held overseas. Where would you, say, if you were an American political leader, see this money go?
Do you want it to go to the ‘already inflate’ stock market?
Do you want it to go to ‘already rescued’ financial sector, as you brilliant pointed it out?
Or, do you want it to go to US treasuries and US real estate?
I think, as an American, you know the answer.
Bullshit. BAC, for example, originates the mortgages with no regard for risk. The risk evaluation process is literally making sure they meet the legal minimum requirements to make the loan. Once its been created, they package it, sell the risk, and retain servicing rights (meaning they charge a couple points to collect payments). BAC is not alone in this mindset.
Per multiple trainers in mortgage origination from a range of major banks (BAC included): "we are in the business of making loans, not denying them."
What's the point having a gov'ment anymore???
The local zoo is a better institution than these feces throwing fuckers...
My God, without the government who else would run everything? It would be chaos. Anarchy, even!
MeMadMax, NoDebt,
So, what are your solutions?
Not that I need to remind you, but our economy is finished. We don't have enough resources to grow.
I got a chicken if you can come up with a rooster we could jump start (or the rooster would) the economy.
Anything Congress sticks the word "affordable" on, I, for fucking damn sure, can't afford.
Orwellian NewSpeak.
As I mentioned elsewhere on this thread, we need to print it on bumper stickers and T-shirts:
"Debt" is NOT "Affordable"
We also need to print it in large letters onto pieces of 4x2 and start beating certain persons about the head with them.
Corrupt motherfuckers. All of them.
Bond yields heading lower so everyone is piling in to buy a house?
http://www.planbeconomics.com/2014/09/otterwood-capital-management-bond-...
The Jews will never run out of creative debt slaves ideas...it's what is for breakfest!
Congress can do as it wishes. But deflation still rules this environment. Word to your mother.
@Escrava Isaura
So the thought never crossed your mind at all that maybe the government has "helped" the economy enough and maybe it should get the hell out of the way so we can finally pull ourselves out of the Second Great Depression?
N2OJoe,
I have no influence, Joe!
The government does what the government has to do to survive.
What we believe is irrelevant.
I just want to get the facts right.
That’s all.
I think you meant 2x4, Pressure Treated.
Anyway, none of you answered my question.
Because you have nothing, beside one chicken.
How do you guys find dates?
Or, do you go to church for dates?
1. Over here we call them 4x2. Maybe that comes with being at the bottom of the world and living upside down and not driving on the right side of the road or something. Perhaps we should be calling them 101.6 x 50.8 (metric).
2. Yes, I have no rooster.
3. I have a calendar.
So, put this in your calendar, on the year 2035, please:
"We will have less than 1 billion people in the world!"
Then, put my signature on the bottom of this quote, so your clueless friends won't make fun of you.
"Simon Black’s agenda obscure the logic of this Ponzi scheme"
Escrava, I don't know who you are but I'm sick of your incomprehensible, arrogance flavored, 3rd world koans....
And yer frickin avatar...
Bananamerican,
Because, to serve the $42 trillion dollars in private debt, $17+ trillion dollars in federal debt, $5 trillion debt in state and local governments, pension plans’ debt… and the list of debts goes on YOU NEED TO HAVE PRODUCTION AND CONSUMPTION GROWTH so you can pay the interest charges on these debt.
GOT IT NOW?
@ Falconsixone:
:>)
"So, what are your solutions?"
Holy shit, did you take my post literally? Was my sarcasm not blatantly obvious?
If I have to start putting /sarc tags on my posts, I'm done here. You get it or you don't.
There was a time when interest compounding was considered usury.
With interest rates below one percent in Germany basically that's what you've got. "Takes a long time before that dollar will compound" making say...gold or silver...of enormous value.
Anywho we have a HUGE equity move in the USA throwing off hundreds of billions in cash through dividends PLUS the biggest energy boom in US history PLUS a huge blow off top in house prices in California etc.
Of course the Federal Government wants to get people moved in to all that abandoned real estate out there. They need tax revenues in a big way and only through "an ownership society" can they get it. So absolutely ...start pushing cheap debt.
What matters is what Governments do with the money. Prices have certainly not moderated all that much.
disabledvet,
In you third paragraph "biggest energy boom in US history" is totally false, I am sorry to say.
However;
In your fourth paragraph, you are totally correct.
Escrava Isaura
@ you----thats a rhetorical question,right?
If a thread has gov't and banks and debt bunched together and is talking problems then you must know the solution.
Or maybe your faking smart-----just wondering--
g speed,
Not to do with smartness.
I developed a thick skin.
I want to get the facts, and its history, as it’s unfolding, right!
Personal opinions, form peons like us, it's irrelevant.
Focus on the game, and save the irrelevant opinions and jargons.
thanks for the civil reply---
some "facts" are self evident--( growth is needed to pay interest on debt) ( gov't is the fountain of corruption) etc.
So --in the interest of efficiency relaying other facts (the ones not self evident) are editorialized to include personal opinions. Your "Irrelevant" is an opinion in my opinion.
When I was growing up I often sat on the foot stool by my grandmas easy chair-- and listened to her and her friends-(mostly widows) talk about their lives. Most of them having been born in the later 1800s. I learned since then (using what I had heard from them) that technology is changing but politics and economics is the same today as it ever was. That my friend is seeing history as it's unfolding.
While sitting on top of events as they happen it is delusional to ascribe historical value to them, thats what the future is for. Of course with that comes the rewriting and the obfuscation of "facts".
Understand that "facts" are the tools of rationalists, or more appropriately, those that rationalize. In order to infuence opinions "facts" are sometimes portrayed as truth when "infact"(sic) they are not.
All men/women put on their pants one leg at a time--wealth and power not withstanding-- Its when you call yourself a "peon" you become one.
"Thick skin" is a colloquialism that refers to slow stupid large animals who are unefected by anything out side themselves--not a good attribute for a thinking curious species ---just sayin--
Thick Skin = Not to get emotional or upset, because it leads you to be easily manipulated by nonsense and its demagogues. Religion, politicians, and academia live off of it.
That’s what I meant.
"When you're born you get a ticket to the freak show. When you're born in America, you get a front row seat" — George Carlin
The solution is to let the mother fucker burn
Are you another Million Dollar Bonus? You cannot be for real.
Let me know when it's actually going somewhere. Bills are "introduced" all the time, and as for this one:
Whew...
That was a close one.
Rick Santelli appreciates not having to do the deadbeat beatdown again...and probably spared an aneurysm as an added bonus.
Checking out the various bills on that site and the vast majority are resolutions making this day or month "a special Day/month" or awarding awards to various peoples.
Nothing is being done. Reminds me of the latter days of the Spanish Empire where they passed laws on the size of ruffles on men shirts.
Los ruffles son muis importantes! Nice catch, Rocky Raccoon!
The article title should have read:
Meet The "Access To Affordable Mortgages" Act: How Congress Has a Slim Chance to Create The Next CrisisIn other words, here's some more junk to add to your Things to Worry About list just so we can stir up some comments. Congress can't do much about the next crisis because it's already on the books due to past action/inaction. The system is going down and a dinky little bill like the one touted won't make a bit of difference.
I expect more from ZH than crap like this...
Really, what this article is highlighting, is that there are no new solutions to any problems, other than the problems we already had.
Our congressmen are wasting time drafting up these bills presenting old problems as new solutions, and it's sickening. It's a horrid, unfathomable waste of money.
I can't wait for when SHTF, and I can just do what I want to do without worrying about the 100+ tyrants in DC telling me what to do.
It's called INCREMENTALISM.
The way it works is THIS: This bill might not pass in its' entirety, BUT, it's been proposed and put on the floor. It MAY BE RE-INTRODUCED, or it may be shelved, or it MAY BE INCLUDED in other legislation that HAS TO PASS (like a spending authorization bill). THIS IS THE WAY IT WORKS.
Examples include USAPATRIOT, NDAA, OBAMACARE...
REAL ID started as a proposal by President Bill's wifey for a 'medical ID card', and Congress laughed and threw her out. DO YOU REMEMBER?
Who the hell writes these bills? it SURE as hell isn't that POLITICIAN. He's too busy trying to get re-selected, you know...
Your first false assumtion that lead you to the wrong idea is that the United States still uses the Constitution for something else than TOILET PAPER.
All you've said is true. However, I haven't made any other assumptions. I just don't really care any more what the morons in Warshenden DC do. As they say, and you reiterated, we have the best Congress money can buy.
Huckleberry:
You can tell the difference between bills that members of Congress write themselves and bills that they are GIVEN to introduce by the true government.
Members of Congress like to do THIS: "the vast majority are resolutions making this day or month "a special Day/month" or awarding awards to various peoples."
'We'll just have to pass it to find out what's in it' (Pelosi)
If you want to start hanging people, start over on K Street...
Lots of foreclosed property still on the books.
Gotta move that inventory.
Yep. Sell-side can't book a profit unless you can find a bagholder. Let's have Congress write some up for us.
Therefore: this bill, or another to come.
Wow. You say that like it's a bad thing!
So what does Congress do? They propose a new law to screw up bank balance sheets all over again
Banks iz probs innocent on all dis, but let’s see…
https://beta.congress.gov/bill/113th-congress/house-bill/5148/cosponsors
Sponsor: Rep. Luetkemeyer, Blaine [R-MO-3] (Introduced 07/17/2014)
Committees: House - Financial Services
https://www.opensecrets.org/politicians/summary.php?cid=N00030026
Campaign Funds raised
Top Industries, 2013-2014
1 Commercial Banks $112,400 $24,900 $87,500
2 Insurance $94,720 $5,720 $89,000
3 Finance/Credit Companies $62,600 $18,100 $44,500
4 Securities & Investment $42,000 $3,000 $39,000
7 Real Estate $28,320 $8,820 $19,500
I’m sure a coincidence..
His last sponsored bill:
H.Res.702 — 113th Congress (2013-2014) Affirming that private equity plays an important role in growing and strengthening United States businesses throughout all sectors of the economy and in every State and congressional district and...
lol
Haha wow, nice catch, dude. I would have guessed whoever proposed this bill would have a campaign finance record like that, but it's funny to see it. Calling these people whores is insulting to honest, hard working prostitutes everywhere.
just wondering was there ever a time when it was not legal to buy off lawmakers with campaign contributions?
Depends what "is is" --Legal is arbritrary.
Bribery of lawmakers begins with the "Representitive Republic" type of gov't --
Corruption beguins with gov't, any gov't--it is unique to gov't involvement ---is ubiquitus in gov't.
Any law (all laws being prohibitions enforced through coersion), the pervue of gov't, is grist for corruption and that includes bribery.
The answer would then be-----YES, before the invention of gov't.
oh, it gets better... it's a response to Operation Choke Point... from a Missouri (R) and Tea Party member... who just lost his district btw...
I swear you can't make this shit up
Blaine is to blame for Blaine selling out his constituents, not the banks. I despise the money changers but this guy is willingly stabbing his voters in the back. He is 100% to blame for his actions. His voters are 100% to blame for giving him the power, again.
Subprime. Sublime.
Now you're talking. In my book, all of these polticians who accept these 'donations' are felons in a country missing a justice system.
FSA FSA FSA
Foreclousures will be illegal next.
"Selling crappy properties to dumbfucks," ... and everyone along the line gets a commission, bonus or handout and the friggin taxpayer is stuck with the losses when the whole thing turns to shit.
Believe me, b/c it's been known to happen.
Those who rob Peter to pay Paul can always count on the support of Paul.
FSA??? Hey! Look over there! The greatest concession I'll give you is that the sheep that struggle most get slaughtered last. Actually, I'll give you a second concession: The toughest prisoners are employed by the prison guards to pull all the other prisoners into line.
FSA??? How about DSA!!!??? As in Debt Shit Army!!! (And Debt States of America). The banksters can't directly force you to do something stupid with money you don't have but by letting idiots spend imaginary money and bailing them out, they can force you to work harder and get nothing in return.
Every time you mention the FSA you act as if the FSA has power. They don't, except for what I described above. If the FSA had any power then the shit they got would truly be free. Houses wouldn't cost 500 grand, they would cost 50 bucks or they would be free. FSA is the propaganda. The banksters hold the power, and they have discovered that the best way to steal your loot is to dress it up as welfare. But when the "welfare" is really just more debt, is it really welfare? Well, I guess it is if they don't have to pay it back. And if they don't get booted out of their homes. So why not just give them the homes? Why the whole "borrow money to buy a house" charade? Who benefits from the "borrowing"? Who benefits from higher asset "values"? When the FSA stop repayments do they lose their home or keep their home? I truly don't know but I'm guessing that they only keep it if they create a big enough stink. The deal is structured so technically they lose it, therefore it is the DSA, not the FSA, but in the end it I'd say it depends on the individual's access to connected lawyers and the media. But if push comes to shove, the banksters will simply reclaim their pound of flesh and move on.
There is an old joke about a Jewish child molester who wanders the street, saying "Hey, little girl. Do you want to buy a lolly?" I now realize that the truth would be, "Hey little girl. Do you want to borrow a lolly?"
any legislation with "affordable" in the title is poison
Huh.... Even my cynicism can't come up with the slightest wry comment regarding that truth....
Must be suicide season.
affordable, patriot or fair.
You forgot 'bipartisan' and 'compromise'. Those two words always means larger than usual deception is taking place. (Thank you, George carlin)
Orewellian NewSpeak. For those who never read the book, you may as well just say "opposite" or "lie".
I never really ever wanted something "affordable". I have always wanted the best I could afford. Affordable has always represented the lowest cost lowest quality, which is exactly what we will end up with. No cynicism required.
Excellent point. "Affordability" has been carefully and methodically bastardized to mean "GIMME" (on easy socialised credit). Agenda 21 "densification" advocates utter the word with reverence: "WE" (i.e., the glib royal collective "We") "NEED" (i.e., I want you to give me and you can eat the bad debt) "MORE AFFORDABLE HOUSING" (i.e., cramped, yardless, multistorey tickytacks, usually with discount retail at ground level) "TO MAKE THIS COMMUNITY MORE LIVABLE" (i.e., turn nice traditional neighborhoods into stack-em-and-pack-em shitholes). In truth, everybody involved is a chump, except the developers, the issuers, and a few groups of political and "green" whores.
I would agree except it is one big property grab; that and the fact that they are using monopoly money to buy real assets.
Nope.
You say, "It's called capitalism.". This factually couldn't be further from the truth.
Using the power of government to line your pocket has zero to do with capitalism. It is statism through and through.
I have never liked the phrase "crony-capitalism" for this reason. Using the government to gain financial leverage isn't capitalism at all. That phrase, though, has mislead people to association capitalism with statism! Oh, the irony.
Here we go again, and again. These men and women are trying to destroy this country.
As if the last crisis ended
Gotta keep people buying stuff they don't need, with money they don't have.
What we "moderns" call growth. Progressives have shot our wad on magic growth beans, only to find the giant seeking to grind our bones to make his bread. There is nothing new under the sun and this will play out as it always has, with great pain and suffering.
"As if the last crisis ended"
They haven't even "started" to address to last crisis.... they papered it over and made a papier mache alien sculpture
So it's almost against the law not to get the loan you want...
Nice...
It's like when you go to the supermarket where you pay for your food and at the cashregister you just say: "oh yeah, and add 50 dollars cash, I'll pay with my card"
So people won't just loan for the house, they'll add stuff like money for stocks, cars and other crap
Like books and stuff?
I wants a flat screen. Maybe two. One for the bathroom.
Nex tthey'll be passing laws that I have to work,
http://hedgeaccording.ly/2014/02/billionaire-sam-zell-says-residential-r...
None of this hurts me. In fact, I will quietly get into position to profit from it.
Hope ur not a Brit, they are gangin again ya.
It is possible to profit from any disaster but it isn't always wise, unless you have figured out how to spend it after death.
Why don't they pass a law where you can take out a loan at negative rates?
Like -2% or something.
I'd take out a loan like that! Who wouldn't?
The car title man and most others I presume.
Since inflation is running 9-10% your effective rate is already -5-6%. Unfortunately wages have not kept up with inflation, so it may still be difficult to pay...
8>\
Obama Goan pay mah Mogage. I toe you Bitchez, I mahfah toe you........
Everbody up in here got ObamaFones!
He gave us a phone... he gonna do MOAR!
Uhura, can you translate that?
The oldest tricks are often the best since they are time tested in their abilty to fool most of the people most of the time.
Wow. That is a brilliant observation. Thanks.
Listen, I know sarcasm when I read it. Sometimes no comment is the best comment for you.
When Congress was convinced they were merely Santa Claus, dispensing goodies to the favored campaign contributors, it was bad, "limited" to fiat money and the public's revulsion.
Now that Congress is convinced its the financial market, which doesn't have a readily available $$$ tag on goodies, there is no limit to the madness.
Hey how about free everything for everybody in America the rest of the world will pay as they have been rite?
The progressives are santa and the illegals are his elves, making all the presents the rest of us will enjoy while watching tv being unemployed
There was an area near San Berdoo where a group did pocket to pocket sales recorded fake higher and higher prices and just ratcheted up the whole neighborhood and then refi'e dtheir holdings. IF you looked at the sales histories you'd pick it up. This will become rampant in certain areas. This law is bullshit - they could run AVMs to check any appraisal or at least run an algo to check the property value. Maybe five minutes of DD and a few bucks.... they need to get the entry level moving to kick-start the trade-up market. I looked at a pie chart of HH incomes relating to property sale prices and the people buying $770k houses on average had shit income, but they were likely rolling up their home equity.
Anytime those dickheads put "Affordable" or "Clean" or "Fair" in the title you better lube that fucking rectum up real, real good because the long shafted club of Barack Hussein Obamao is going to fuck you deep and hard inside your asspipe.
+1 Funny
Every time you see the word 'smart' in front of the name of a device, you know you have to be dumb to get one.
Outright fucking lying is the new newspeak.
its not a lie, its just a more responsible truth. you know that when it gets really bad, you sometimes have to lie...for our good!
I regret I have but one upvote to give you.
+1
BTW - You forgot "Access". Sprinkle that on anything and it's a driver, head first, sans lubrication.
"discriminate against some segment of the population trying to buy crap properties."
Told you so.
American sycophants, worshiping the worthless. I wonder if child of the bee-on-say and baby daddy jaysee will grow to become a California senator?
check out our new short term 40-50yr mortgages and of course the regular 100yr mortgage which easily transfers to your kids and grand kids...
Like the Japanese have been doing for decades...
I saw an asshole buy 6 cans of RedBull this morning with an EBT card. I wonder if HR-5148 puts a limit on how many defunct properties one can purchase, you know, like say for instance if one were to get all jacked up on RedBull and go on a home buying spree.........
I bet they were really nice cans though.
Don't worry that was his Red Bull EBT. He has 8 more from each of his kids from 4 different ho's that he can use to buy snacks. Nice of you to worry about his nutritional needs though!
'Affordable' means low monthly minimums via subsidized/backstopped industries, and the person has a higher principal to pay because prices rise due to inflation and the increased demand for housing, and there is little amortization of the mortgage since the 'affordable' monthly payments are not sizable at all. Same story with refi of course, as you're just paying for longer, and the PV goes up. TANSTAAFL. Lower values but higher rates means at least one amortizes the loan quicker, and the Principal isn't so high. But that doesn't cut it for this gimme society, actually owning things outright/merited.
I think it's time for the intrepid to sign up for a few courses in RE appraisal and fiction- writing
Listen. It's true. Start boiler room ops in DC with tentacles in all 50, make sure to "rent" your office space from the "right folks" in DC. Rock the hoods American bitchez.
Moar subprime pleeze!
////
Wup, forgot the link:
http://www.washingtonpost.com/news/volokh-conspiracy/wp/2014/08/15/subprime-auto-loans/
Minorities, women & children hurt most or sumpin ;-)
bunch of damn paper pushers
Owning a house is like putting on leg irons.
You are shackled.
I rent.
If I decide to go somewhere else, I can just up and go.
Even if I walked away tonight, wouldn't cost me that much - just a month's rent lost.
Amen brother.
I don't know. I own my house outright with no obligations other than real estate taxes. It really doesn't feel like leg irons. We have a large garden, a bunch of chickens, and a handful of pets. It's a pretty nice existence.
I'll grant you that real estate taxes really keep you from "owning" anything, Yet, I get a ton of utility out of my home and land and I wouldn't have it any other way.
While I admire your mobility (a rolling stone gathers no moss). a homestead without debt is a great way to live. And it gives you something worth the effort of engaging. Anarchy may seem cool, but having something you own, worthy of defending, gets you engaged with your neighbors and your community.
Good land, a nice house, and a good community is a quite fine way of life; at least as I see and live it.
For those lucky enough to get in before the boom, we're better off. My mortgage is a third of the cheapest rent. Other expenses may bring it up to a half or two thirds of the cheapest rent. If I fucked up and lost the home, I think I'd have to seriously consider going homeless. It's very hard to justify what they charge for rents around here.
Rich people are better off renting. I've seen million dollar homes rent out for $400 per week. (It's an old home. Perhaps the landlord doesn't need the money, I don't know.) Why pay a $1600 per week mortgage when you can rent for $400 and put the other $1200 into something else? Except that most people don't have the extra $1200 so can't take advantage of the opportunity. The cheapest rents I see around here are $300 per week and the minimum wage after tax is $580. The cheapest mortgage in the cheapest suburb is around $450 per week ($280 grand house) but you'd better budget a huge repair bill to go along with that house. If you're on minimum wage, in fact I'd say if you're on anything less than average wage around here, you're fucked. I don't understand how those people survive. Lots of house sharing, I guess.
EDIT: Actually, I don't understand how those on average wage survive either.
10, 15 or 30 year Mortgages made sense before the gutting of American manufacturing started in earnest in 1994.
30 year mortgages never made sense. The extra interest paid is astronomical and can not be justified by lower repayments.
$100 000 loan, 6% interest:
15 years repay $191.87 per week total interest paid $50 072
25 years repay $145.78 per week total interest paid $90 030
30 years repay $135.38 per week total interest paid $111 777
Going from 15 years to 30 years: Weekly payments 30 % cheaper but overall interest costs 123% higher.
Going from 25 years to 30 years: Weekly repayments are 7% cheaper but your overall interest costs are 24% more expensive.
Crazy.
I remember originating 103% FHA loans in the mid 00's. I was always amazed at the entitled attitude of the buyers. It was often a nightmare to close those loans; the files were always at least 1 inch thick. On the plus side theses borrowers were not "rate sensitive" so I always got paid well on the back end.
Bill Summary
"The “Access to Affordable Mortgages Act” (H.R. 5148), also sponsored by Rep. Luetkemeyer, would provide an exemption from independent appraisal requirements for any mortgage with a value of $250,000 or less held in portfolio for a period of at least three years, regardless of its interest rate or its “qualified mortgage” status. When a lender holds a loan in portfolio, it bears the full risk of default and has every incentive to ensure that the loan is appropriately underwritten and collateralized. In many instances, the community bank does not charge the borrower for an in-house appraisal performed by bank staff. The end result is a higher quality appraisal at no cost to the borrower. We are very pleased that H.R. 5148 reflects a provision found in ICBA’s Plan for Prosperity." From Association for Financial Technologies website.
Looks like they are saying we will do our own apprasials on any property held less than 3 years, trust us. We will pass on any savings to the borrower. Sure...
http://www.muckety.com/Blaine-Luetkemeyer/156337.muckety
"You know the whole thing with society today is go to school, get a job, get married, get kids, take out loans, dig a fucking hole you can never get out of and to me that's just a way of the government chaining you down so that you can never get out of their grip. Somebody like me who can do what ever they want, I never have to pay taxes, I you know fuck who ever I want, I can go here, I can go there and you know somebody calls me I can go tomorrow, I don't have to think about well I gotta take care of this, I can just go. That's the only way to fucking live. Alright, I'm ignorant, but I like to fuck, I like to drink, I like to suck cock. Who gives a fuck."
- GG Allin
How long are the sheeple going to put up with this BS. Stop spending and starve the bastards! Vote against anyone promoting more spending.
What the fuck are you talking about?
Congress doesn't write laws for the banks. The banks give them laws to pass. What this does is increase lending for the banks. They wrote it, the team of monkeys is whoever let you post here knowing jack shit about anything.
Banks have just now barely begun to rebuild reserves????
http://m.research.stlouisfed.org/fred/series.php?sid=WRESBAL&show=chart&
Choke on that, assclown. Yahoo stock boards called they said if you don't come home before dark you're grounded.
Kinda lost me at 'bank balance sheets are only now starting to clear up.'
WTF???!!!
Thats news speak for "Bank balances equal to or above the highs a decade or so ago"
You one angry person. Get involved and take the country back - it only takes a few to stand up.
Accurate description except that it is not "idiotic" - this is how democracy/dictatorship of the proletariat operates. The politicians must comply with one of the few rules of today's hopelessly corrupt system, which is completely unrelated to the America that the Founders created, and that rule is that they must win elections, so ALL the politicians are fully engaged in a race to national bankruptcy by creating and expanding the entitlement programs which buy the votes and dependency of the moronic parasite proletariat hordes. Once you understand and accept this reality you can see that the system is actually working very rationally and effectively, and it will continue in this manner until both the corrupt traitorous politicians and the proletariat parasites are eradicated, which cannot be accomplished through voting.
Quote:
The politicians must comply with one of the few rules of today's hopelessly corrupt system
More debt.
Countries are just convenient (for TPTB only) fictions.
On the subject of voting.
Voting is a one-bit system. The light's either on or off.
Human interactions are a tad more complicated, so how can this work?
If you vote, you are complicit in the crimes of government.
Just thinking out loud.
And keep telling yourself that to not vote is any different. Elections has results and we can choose to remain silent but results happen just the same. You may feel free to believe that there was no choice, that one was the same as the other (and they may well be) but you will never know. You chose to sit it out and let someone else make the vote. Yes, regardless of election result, it may all still collapse, but we also know that we will all die as well, but we still should try to make our world and our lives as positive as we can. personally I didn't like Romney, but I held my nose and voted for him anyway, because I thought as bad as he was that Obama would be worse. I still feel the same. Our social and civic responsibility is to make the best of our country that we can. None of our choices will be perfect, far from it, but I hate this mentality that somehow we can disconnect ourselves from any responsibility for this mess by simply not voting. Every action or inaction has consequence.
But of course that is how we got here. Buy foreign made crap, hire illegal labor, vote for compassionate progressives who try to convince us that the only path to salvation is self sacrifice, starting with our liberty. None of it is our fault...right...
One promises to fuck you up. The other promises to not fuck you up but you know that he is lying but you vote for him any way in the hope that he doesn't want to prove his hypocrisy too soon.
They have both been bought and paid for. The only voting should be done on paper ballots. Boxes should not be ticked. Just scrawl in words like "No Debt".
To not vote, even if for the lesser of the two evils, and then complain about what comes, is like the old school wife who let the husband make all their decisions and then whines about their life. Not becoming.
Pick 1:
1. Hung
2. Stabbed
Or would you prefer not to vote?
If voters actually had any power then housing would be cheap. It isn't. This bill simply allows them to accumulate more debt. It is a bill by the banksters for the banksters because the banksters have all the power and your vote means Jack Shit. "Helping the hordes" is purely propaganda and nothing else.
If anyone wants to profit from this crap then perhaps you need to make and sell / give away some T-shirts and bumper stickers that say:
"Debt" is NOT "Affordable" !!!
On second thought, that phrase should be written on a few million pieces of 4x2, which can then be used to beat several congresscritters, other politicians and banksters about the head.
H.R. 5148
AKA "The Prop Up Our Masters the Banksters Again Act."
An American, not US subject.
I personally think the ponzi should've crashed long ago. But, they keep coming with new ways to keep it going. No one really understands how the ponzi engine operates, otherwise they'd revolt.
"It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." — Henry Ford
I'm going to make it illegal for you value the collateral for a loan you're attempting to make.
They should extend this to everything. Power plants, buildings, intellectual property, derivatives.
Join me in moochville. Still living in my house for "free" less taxes, insurance and upkeep. Bank now wants to dismiss their case against me. Guess the last two years of fighting a pro se idiot is too much for THEIR idiot attorneys to handle. Fuck them. I'm more than ready for the alleged new plaintiff to come forward. Their attorneys are drowning in student debt, bad marriages, shitty work at shitty foreclosure firms with shitty bosses. Ha-fucking-ha! To fight the banks you just need to understand two things; one is that they are lying criminals, two is that they are not that bright, in fact most attorneys are complete stooges and do their "work" by rote. Until they get push back, which they can not handle. Pussies.
Accounting is not what it used to be....
Legislation sponsored by JP Morgue and the Squid because the US taxpayer (whatever is left of them) just loves being on the hook for all the deadbeat borrowers and the Fed needs some new "shitty deals" to purchase from the same. MADNESS!!!
Does this have to do with HELOCs and HAMP ****RESETS**** coming 2015-16?
Why can't Mike Holmes, that Leave it to Brian guy, and the Cousins just build everybody a nice house for no charge? Everybody should have a nice house.
When are we gonna get a Pres. that has a set of balls?
Tell ppl what they don't wanna hear?
We lost a great chance with Ross Perot. Mitt Romney was and still is a nobody.
I mean someone who calls a spade a spade and to hell with politics.
Because we are in that situation now. If we get some appeaser again then the times, they just are going to get worse.
They could have chosen anyone else to lead but it went to Romney. Romney's job was purely to scare people into voting for Obama. That is why he was put in that position.
I don't expect too many people to believe me. But please give it a little thought. We all know how the media works around here. How much "choice" is really "choice"?
Or, as I pointed out here a long time ago, Romney was the higher quote.
When contractors are asked to quote a job that they don't want, and they don't want to refuse to quote because it is an important customer, they put in a higher price. If they don't get the job then they are happy - they didn't want the job and they haven't directly turned down the customer. If they do get the job, then at least they make decent money out of it.
When politicians don't really want to get voted in, they act like Romney. If they still get voted in then they can do whatever they like and then say, "You voted for this". Romney was the higher quote.
Was just mourning the lost opportunity America had with Perot the other day. Remember when he dropped out of the race temporarily because there were death threats against his family/daughter or something? The threats must have been issued straight out of the house or Morgue or Goldman through their proxies.
We need a fucking reset and devalue just about every property in America by at least 50%. Before the bullshit bubble homes were priced fairly. You could buy a 1800 sq ft property in a good town around where I now live for $175k, now $365k. The job I have paid $75k in 1999 and pays $75k now which I am lucky to get. So how the fuck am I supposed to afford a $365k home when a little over a decade ago it sold for less than half? 6% per year on $175k is a lot less than 4% on $365k. Mortgage rates aren't the problem, it's the asking prices. Perhaps that is why the NE has the worst real estate market in the country.
I laugh at the historical prices when I look at homes. I see homes that have been owned by the same person since 1982 that they paid $58k for and they are now asking $425k with no real upgrades. A new fucking roof and some stainless steel appliances aren't worth $375k. They are trying to hold on to the bubble valuations because someone told them their house was worth that much on paper at some point in time. Just like Apple stock was supposed to be worth $1000 a share.
The boomers loved the housing bubble because it let them live way beyond their means. But they screwed the country for their children. How is the next generation going to afford the same homes for three times the money on half the average salary? I'd really like one of these PHD economists like Krugman to answer that question.
Here, here brother. They want way to much for housing then it is worth.
Most borrowers believe that it's the ratio of monthly payment to income that matters.
For borrowers, what really matters is the ratio of principal to future income.
I'm patiently waiting for a correction.
+1997
As a boomer myself. I would like to know how I caused the housing bubble?
LOL