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Obama Lays Out His Latest "Mortgage Plan"

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Listen to the Landlord in Chief lay out his REO to LBO plan live and in stereo. Since everyone will end up paying for it, directly or indirectly, sooner or later it probably is relevant. no-repeat; padding-top: 13px; height: 30px; float: left;">JOIN THE LIVE CHAT


The full fact sheet is below:

FACT SHEET: President Obama’s Plan to Help Responsible Homeowners and Heal the Housing Market

In his State of the Union address, President Obama laid out a Blueprint for an America Built to Last, calling for action to help responsible borrowers and support a housing market recovery. While the government cannot fix the housing market on its own, the President believes that responsible homeowners should not have to sit and wait for the market to hit bottom to get relief when there are measures at hand that can make a meaningful difference, including allowing these homeowners to save thousands of dollars by refinancing at today’s low interest rates. That’s why the President is putting forward a plan that uses the broad range of tools to help homeowners, supporting middle-class families and the economy.

Key Aspects of the President’s Plan

• Broad Based Refinancing to Help Responsible Borrowers Save an Average of $3,000 per Year: The President’s plan will provide borrowers who are current on their payments with an opportunity to refinance and take advantage of historically low interest rates, cutting through the red tape that prevents these borrowers from saving hundreds of dollars a month and thousands of dollars a year. This plan, which is paid for by a financial fee so that it does not add a dime to the deficit, will: 

Provide access to refinancing for all non-GSE borrowers who are current on their payments and meet a set of simple criteria.
Streamline the refinancing process for all GSE borrowers who are current on their loans.
Give borrowers the chance to rebuild equity through refinancing.

• Homeowner Bill of Rights: The President is putting forward a single set of standards to make sure borrowers and lenders play by the same rules, including:

Access to a simple mortgage disclosure form, so borrowers understand the loans they are taking out.
Full disclosure of fees and penalties.
Guidelines to prevent conflicts of interest that end up hurting homeowners.
Support to keep responsible families in their homes and out of foreclosure.
Protection for families against inappropriate foreclosure, including right of appeal.

• First Pilot Sale to Transition Foreclosed Property into Rental Housing to Help Stabilize Neighborhoods and Improve Home Prices: The FHFA, in conjunction with Treasury and HUD, is announcing a pilot sale of foreclosed properties to be transitioned into rental housing.

• Moving the Market to Provide a Full Year of Forbearance for Borrowers Looking for Work: Following the Administration’s lead, major banks and the GSEs are now providing up to 12 months of forbearance to unemployed borrowers.

• Pursuing a Joint Investigation into Mortgage Origination and Servicing Abuses: This effort marshals new resources to investigate misconduct that contributed to the financial crisis under the leadership of federal and state co-chairs.

• Rehabilitating Neighborhoods and Reducing Foreclosures: In addition to the steps outlined above, the Administration is expanding eligibility for HAMP to reduce additional foreclosures, increasing incentives for modifications that help borrowers rebuild equity, and is proposing to put people back to work rehabilitating neighborhoods through Project Rebuild.

1. Broad Based Refinancing Plan

Millions of homeowners who are current on their mortgages and could benefit from today’s low interest rates face substantial barriers to refinancing through no fault of their own. Sometimes homeowners with good credit and clean payment histories are rejected because their mortgages are underwater. In other cases, they are rejected because the banks are worried that they will be left taking losses, even where Fannie Mae or Freddie Mac insure these new mortgages.  In the end, these responsible homeowners are stuck paying higher interest rates, costing them thousands of dollars a year.

To address this challenge, the President worked with housing regulators this fall to take action without Congress to make millions of Americans eligible for lower interest rates. However, there are still millions of responsible Americans who continue to face steep barriers to low-cost, streamlined refinancing. So the President is now calling on Congress to open up opportunities to refinancing for responsible borrowers who are current on their payments.

Under the proposal, borrowers with loans insured by Fannie Mae or Freddie Mac (i.e. GSE-insured loans) will have access to streamlined refinancing through the GSEs. Borrowers with standard non-GSE loans will have access to refinancing through a new program run through the FHA. For responsible borrowers, there will be no more barriers and no more excuses.

Key components of the President’s plan include:

• Providing Non-GSE Borrowers Access to Simple, Low-Cost Refinancing: President Obama is calling on Congress to pass legislation to establish a streamlined refinancing program. The refinancing program will be open to all non-GSE borrowers with standard (non-jumbo) loans who have been keeping up with their mortgage payments. The program will be operated through the FHA.

Simple and straightforward eligibility criteria: Any borrower with a loan that is not currently guaranteed by the GSEs can qualify if they meet the following criteria:

• They are current on their mortgage: Borrowers will need to have been current on their loan for the past 6 months and have missed no more than one payment in the 6 months prior.
• They meet a minimum credit score. Borrowers must have a current FICO score of 580 to be eligible. Approximately 9 in 10 borrowers have a credit score adequate to meet that requirement. 
• They have a loan that is no larger than the current FHA conforming loan limits in their area: Currently, FHA limits vary geographically with the median area home price – set at $271,050 in lowest cost areas and as high as $729,750 in the highest cost areas
• The loan they are refinancing is for a single family, owner-occupied principal residence.  This will ensure that the program is focused on responsible homeowners trying to stay in their homes.

Streamlined application process: Borrowers will apply through a streamlined process designed to make it simpler and less expensive for borrowers and lenders to refinance. Borrowers will not be required to submit a new appraisal or tax return. To determine a borrower’s eligibility, a lender need only confirm that the borrower is employed. (Those who are not employed may still be eligible if they meet the other requirements and present limited credit risk. However, a lender will need to perform a full underwriting of these borrowers to determine whether they are a good fit for the program.)

Program parameters to reduce program cost: The President’s plan includes additional steps to reduce program costs, including:

• Establishing loan-to-value limits for these loans. The Administration will work with Congress to establish risk-mitigation measures which could include requiring lenders interested in refinancing deeply underwater loans (e.g. greater than 140 LTV) to write down the balance of these loans before they qualify. This would reduce the risk associated with the program and relieve the strain of negative equity on the borrower.
• Creating a separate fund for new streamlined refinancing program. This will help the FHA better track and manage the risk involved and ensure that it has no effect on the operation of the existing Mutual Mortgage Insurance (MMI) fund.

EXAMPLE: How Refinancing Can Benefit a Borrower With a Non-GSE Loan

? A borrower has a non-GSE mortgage originated in 2005 with a 6 percent rate and an initial balance of $300,000 – resulting in monthly payments of about $1,800.

? The outstanding balance is now about $272,000 and the borrower’s home is now worth $225,000, leaving the borrower underwater (with a loan-to-value ratio of about 120%).

? Though the borrower has been paying his mortgage on time, he cannot refinance at today’s historically low rates.

? Under the President’s legislative plan, the borrower would be eligible to refinance into a 4.25% percent 30-year loan, which would reduce monthly payments by about $460 a month.

• Refinancing Plan Will Be Fully Paid For By a Portion of Fee on Largest Financial Institutions: The Administration estimates the cost of its refinancing plan will be in the range of $5 to $10 billion, depending on exact parameters and take-up. This cost will be fully offset by using a portion of the President’s proposed Financial Crisis Responsibility Fee, which imposes a fee on the largest financial institutions based on their size and the riskiness of their activities – ensuring that the program does not add a dime to the deficit.

• Fully Streamlining Refinancing for All GSE Borrowers: The Administration has worked with the FHFA to streamline the GSEs’ refinancing program for all responsible, current GSE borrowers. The FHFA has made important progress to-date, including eliminating the restriction on allowing deeply underwater borrowers to access refinancing, lowering fees associated with refinancing, and making it easier to access refinancing with lower closing costs.

To build on this progress, the Administration is calling on Congress to enact additional changes that will benefit homeowners and save taxpayers money by reducing the number of defaults on GSE loans. We believe these steps are within the existing authority of the FHFA. However, to date, the GSEs have not acted, so the Administration is calling on Congress to do what is in the taxpayer’s interest, by:

a. Eliminating appraisal costs for all borrowers: Borrowers who happen to live in communities without a significant number of recent home sales often have to get a manual appraisal to determine whether they are eligible for refinancing into a GSE guaranteed loan, even under the HARP program. Under the Administration’s proposal, the GSEs would be directed to use mark-to-market accounting or other alternatives to manual appraisals for any loans for which the loan-to-value cannot be determined with the GSE’s Automated Valuation Model. This will eliminate a significant barrier that will reduce cost and time for borrowers and lenders alike.

b. Increasing competition so borrowers get the best possible deal: Today, lenders looking to compete with the current servicer of a borrower’s loan for that borrower’s refinancing business continue to face barriers to participating in HARP. This lack of competition means higher prices and less favorable terms for the borrower. The President’s legislative plan would direct the GSEs to require the same streamlined underwriting for new servicers as they do for current servicers, leveling the playing field and unlocking competition between banks for borrowers’ business.

c. Extending streamlined refinancing for all GSE borrowers: The President’s plan would extend these steps to streamline refinancing for homeowners to all GSE borrowers. Those who have significant equity in their home – and thus present less credit risk – should benefit fully from all streamlining, including lower fees and fewer barriers. This will allow more borrowers to take advantage of a program that provides streamlined, low-cost access to today’s low interest rates – and make it easier and more automatic for servicers to market and promote this program for all GSE borrowers.

• Giving Borrowers the Chance to Rebuild Equity in their Homes Through Refinancing: All underwater borrowers who decide to participate in either HARP or the refinancing program through the FHA outlined above will have a choice: they can take the benefit of the reduced interest rate in the form of lower monthly payments, or they can apply that savings to rebuilding equity in their homes. The latter course, when combined with a shorter loan term of 20 years, will give the majority of underwater borrowers the chance to get back above water within five years, or less.

To encourage borrowers to make the decision to rebuild equity in their homes, we are proposing that the legislation provide for the GSEs and FHA to cover the closing costs of borrowers who chose this option – a benefit averaging about $3,000 per homeowner. To be eligible, a participant in either program must agree to refinance into a loan with a no more than 20 year term with monthly payments roughly equal to those they make under their current loan. For those who agree to these terms, the lender will receive payment for all closing costs directly from the GSEs or the FHA, depending on the entity involved.  

EXAMPLE: How Rebuilding Equity Can Benefit a Borrower

? A borrower has a 6.5 percent $214,000 30-year mortgage originated in 2006. It now has an outstanding balance of $200,000, but the house is worth $160,000 (a loan-to-value ratio of 125). The monthly payment on this mortgage is $1,350.

? While this borrower is responsibly paying her monthly mortgage, she is locked out of refinancing.

? By refinancing into a 4.25 percent 30-year mortgage loan, this borrower will reduce her monthly payment by $370. However, after five years her mortgage balance will remain at $182,000.

? Under the rebuilding equity program, the borrower would refinance into a 20-year mortgage at 3.75 percent and commit her monthly savings to paying down principal. After five years, her mortgage balance would decline to $152,000, bringing the borrower above water.

? If the borrower took this option, the GSEs or FHA would also cover her closing costs – potentially saving her about $3,000.

• Streamlined Refinancing for Rural America: The Agriculture Department, which supports mortgage financing for thousands of rural families a year, is taking steps to further streamline its USDA-to-USDA refinancing program. This program is designed to provide those who currently have loans insured by the Department of Agriculture with a low-cost, streamlined process for refinancing into today’s low rates. The Administration is announcing that the Agriculture Department will further streamline this program by eliminating the requirement for a new appraisal, a new credit report and other documentation normally required in a refinancing. To be eligible, a borrower need only demonstrate that he or she has been current on their loan.

• Streamlined Refinancing for FHA Borrowers:  Like the Agriculture Department, the Federal Housing Authority is taking steps to make it easier for borrowers with loans insured by their agency to obtain access to low-cost, streamlined refinancing.  The current FHA-to-FHA streamlined refinance program allows FHA borrowers who are current on their mortgage to refinance into a new FHA-insured loan at today’s lower interest rates without requiring a full re-underwrite of the loan, thereby providing a simple way for borrowers to reduce their mortgage payments. 

However, some borrowers who would be eligible for low-cost refinancing through this program are being denied by lenders reticent to make loans that may compromise their status as FHA-approved lenders. To resolve this issue, the FHA is removing these loans from their “Compare Ratio”, the process by which the performance of these lenders is reviewed. This will open the program up to many more families with FHA-insured loans.

2. Homeowner Bill of Rights

The Administration believes that the mortgage servicing system is badly broken and would benefit from a single set of strong federal standards   As we have learned over the past few years, the nation is not well served by the inconsistent patchwork of standards in place today, which fails to provide the needed support for both homeowners and investors. The Administration believes that there should be one set of rules that borrowers and lenders alike can follow. A fair set of rules will allow lenders to be transparent about options and allow borrowers to meet their responsibilities to understand the terms of their commitments.

The Administration will therefore work closely with regulators, Congress and stakeholders to create a more robust and comprehensive set of rules that better serves borrowers, investors, and the overall housing market. These rules will be driven by the following set of core principles: 

• Simple, Easy to Understand Mortgage Forms: Every prospective homeowner should have access to clear, straightforward forms that help inform rather than confuse them when making what is for most families their most consequential financial purchase. To help fulfill this objective, the Consumer Financial Protection Bureau (CFPB) is in the process of developing a simple mortgage disclosure form to be used in all home loans, replacing overlapping and complex forms that include hidden clauses and opaque terms that families cannot understand.
• No Hidden Fees and Penalties: Servicers must disclose to homeowners all known fees and penalties in a timely manner and in understandable language, with any changes disclosed before they go into effect.

• No Conflicts of Interest: Servicers and investors must implement standards that minimize conflicts of interest and facilitate coordination and communication, including those between multiple investors and junior lien holders, such that loss mitigation efforts are not hindered for borrowers.

• Assistance For At-Risk Homeowners:

Early Intervention: Servicers must make reasonable efforts to contact every homeowner who has either demonstrated hardship or fallen delinquent and provide them with a comprehensive set of options to help them avoid foreclosure. Every such homeowner must be given a reasonable time to apply for a modification.

Continuity of Contact: Servicers must provide all homeowners who have requested assistance or fallen delinquent on their mortgage with access to a customer service employee with 1) a complete record of previous communications with that homeowner; 2) access to all documentation and payments submitted by the homeowner; and 3) access to personnel with decision-making authority on loss mitigation options.

Time and Options to Avoid Foreclosure: Servicers must not initiate a foreclosure action unless they are unable to establish contact with the homeowner after reasonable efforts, or the homeowner has shown a clear inability or lack of interest in pursuing alternatives to foreclosure. Any foreclosure action already under way must stop prior to sale once the servicer has received the required documentation and cannot be restarted unless and until the homeowner fails to complete an application for a modification within a reasonable period, their application for a modification has been denied or the homeowner fails to comply with the terms of the modification received.

• Safeguards Against Inappropriate Foreclosure

Right of Appeal: Servicers must explain to all homeowners any decision to take action based on a failure by the homeowner to meet their payment obligations and provide a reasonable opportunity to appeal that decision in a formal review process.
Certification of Proper Process: Prior to a foreclosure sale, servicers must certify in writing to the foreclosure attorney or trustee that appropriate loss mitigation alternatives have been considered and that proceeding to foreclosure sale is consistent with applicable law. A copy of this certification must be provided to the borrower.

The agencies of the executive branch with oversight or other authority over servicing practices –the FHA, the USDA, the VA, and Treasury, through the HAMP program – will each take the steps needed in the coming months to implement rules for their programs that are consistent with these standards.

3. Announcement of Initial Pilot Sale in Initiative to Transition Real Estate Owned (REO) Property to Rental Housing to Stabilize Neighborhoods and Improve Housing Prices

When there are vacant and foreclosed homes in neighborhoods, it undermines home prices and stalls the housing recovery. As part of the Administration’s effort to help lay the foundation for a stronger housing recovery, the Department of Treasury and HUD have been working with the FHFA on a strategy to transition REO properties into rental housing. Repurposing foreclosed and vacant homes will reduce the inventory of unsold homes, help stabilize housing prices, support neighborhoods, and provide sustainable rental housing for American families.

Today, the FHFA is announcing the first major pilot sale of foreclosed properties into rental housing. This marks the first of a series of steps that the FHFA and the Administration will take to develop a smart national program to help manage REO properties, easing the pressure of these distressed properties on communities and the housing market.

4. Moving the Market to Provide a Full Year of Forbearance for Borrowers Looking for Work

Last summer, the Administration announced that it was extending the minimum forbearance period that unemployed borrowers in FHA and HAMP would receive on their mortgages to a full year, up from four months in FHA and three months in HAMP. This forbearance period allows borrowers to stay in their homes while they look for jobs, which gives these families a better chance of avoiding default and helps the housing market by reducing the number of foreclosures. Extending this period makes good economic sense as the time it takes the average unemployed American to find work has grown through the course of the housing crisis: nearly 60 percent of unemployed Americans are now out of work for more than four months.
These extensions went into effect for HAMP and the FHA in October. Today the Administration is announcing that the market has followed our lead, finally giving millions of families the time needed to find work before going into default.

• 12-Month Forbearance for Mortgages Owned by the GSEs: Fannie Mae and Freddie Mac have both announced that lenders servicing their loans can provide up to a year of forbearance for unemployed borrowers, up from 3 months. Between them, Fannie and Freddie cover nearly half of the market, so this alone will extend the relief available for a considerable portion of the nation’s unemployed homeowners.

• Move by Major Servicers to Use 12-Month Forbearance as Default Approach: Key servicers have also followed the Administration’s lead in extending forbearance for the unemployed to a year. Wells Fargo and Bank of America, two of the nation’s largest lenders, have begun to offer this longer period to customers whose loans they hold on their own books, recognizing that it is not just helpful for these struggling families, but it makes good economic sense for their lenders as well.

• A New Industry Norm: With these steps, the industry is gradually moving to a norm of providing 12 months of forbearance for those looking for work. This is a significant shift worthy of note, as only a few months ago unemployed borrowers simply were not being given a fighting chance to find work before being faced with the added burden of a monthly mortgage payment.

5. Joint Investigation into Mortgage Origination and Servicing Abuses

The Department of Justice, the Department of Housing and Urban Development, the Securities and Exchange Commission and state Attorneys General have formed a Residential Mortgage-Backed Securities Working Group under President Obama’s Financial Fraud Enforcement Task Force that will be responsible for investigating misconduct contributing to the financial crisis through the pooling and sale of residential mortgage-backed securities. The Department of Justice has announced that this working group will consist of at least 55 DOJ attorneys, analysts, agents and investigators from around the country, joining existing state and federal resources investigating similar misconduct under those authorities.

The working group will be co-chaired by senior officials at the Department of Justice and SEC, including Lanny Breuer, Assistant Attorney General, Criminal Division, DOJ; Robert Khuzami, Director of Enforcement, SEC; John Walsh, U.S. Attorney, District of Colorado; and Tony West, Assistant Attorney General, Civil Division, DOJ. The working group will also be co-chaired by New York Attorney General Schneiderman, who will lead the effort from the state level.  Other state Attorneys General have been and will be joining this effort.

6. Putting People Back to Work Rehabilitating Homes, Businesses and Communities Through Project Rebuild

Consistent with a proposal he first put forward in the American Jobs Act, the President will propose in his Budget to invest $15 billion in a national effort to put construction workers on the job rehabilitating and refurbishing hundreds of thousands of vacant and foreclosed homes and businesses. Building on proven approaches to stabilizing neighborhoods with high concentrations of foreclosures – including those piloted through the Neighborhood Stabilization Program – Project Rebuild will bring in expertise and capital from the private sector, focus on commercial and residential property improvements, and expand innovative property solutions like land banks. 

In addition, the Budget will provide $1 billion in mandatory funding in 2013 for the Housing Trust Fund to finance the development, rehabilitation and preservation of affordable housing for extremely low income families. These approaches will not only create construction jobs but will help reduce blight and crime and stabilize housing prices in areas hardest hit by the housing crisis.

7. Expanding HAMP Eligibility to Reduce Additional Foreclosures and Help Stabilize Neighborhoods

To date, the Home Affordable Mortgage Program (HAMP) has helped more than 900,000 families permanently modify their loans, providing them with savings of about $500 a month on average. Combined with measures taken by the FHA and private sector modifications, public and private efforts have helped more than 4.6 million Americans get mortgage aid to prevent avoidable foreclosures. Along with extending the HAMP program by one year to December 31, 2013, the Administration is expanding the eligibility for the program so that it reaches a broader pool of distressed borrowers. Additional borrowers will now have an opportunity to receive modification assistance that provides the same homeowner protections and clear rules for servicers established by HAMP. This includes:

• Ensuring that Borrowers Struggling to Make Ends Meet Because of Debt Beyond Their Mortgage Can Participate in the Program: To date, if a borrower’s first-lien mortgage debt-to-income ratio is below 31% they are ineligible for a HAMP modification. Yet many homeowners who have an affordable first mortgage payment – below that 31% threshold – still struggle beneath the weight of other debt such as second liens and medical bills. Therefore, we are expanding the program to those who struggle with this secondary debt by offering an alternative evaluation opportunity with more flexible debt-to-income criteria.

• Preventing Additional Foreclosures to Support Renters and Stabilize Communities: We will also expand eligibility to include properties that are currently occupied by a tenant or which the borrower intends to rent. This will provide critical relief to both renters and those who rent their homes, while further stabilizing communities from the blight of vacant and foreclosed properties. Single-family homes are an important source of affordable rental housing, and foreclosure of non-owner occupied homes has disproportionate negative effects on low-and moderate-income renters.

8. Increasing Incentives for Modifications that Help Borrowers Rebuild Equity
Currently, HAMP includes an option for servicers to provide homeowners with a modification that includes a write-down of the borrower’s principal balance when a borrower owes significantly more on their mortgage than their home is worth. These principal reduction modifications help both reduce a borrower’s monthly payment and rebuild equity in their homes. While not appropriate in all circumstances, principal reduction modifications are an important tool in the overall effort to help homeowners achieve affordable and sustainable mortgages. To further encourage investors to consider or expand use of principal reduction modifications, the Administration will:

Triple the Incentives Provided to Encourage the Reduction of Principal for Underwater Borrowers: To date, the owner of a loan that qualifies for HAMP receives between 6 and 21 cents on the dollar to write down principal on that loan, depending on the degree of change in the loan-to-value ratio. To increase the amount of principal that is written down, Treasury will triple those incentives, paying from 18 to 63 cents on the dollar.

Offer Principal Reduction Incentives for Loans Insured or Owned by the GSEs: HAMP borrowers who have loans owned or guaranteed by Fannie Mae or Freddie Mac do not currently benefit from principal reduction loan modifications. To encourage the GSEs to offer this assistance to its underwater borrowers, Treasury has notified the GSE’s regulator, FHFA, that it will pay principal reduction incentives to Fannie Mae or Freddie Mac if they allow servicers to forgive principal in conjunction with a HAMP modification.


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Wed, 02/01/2012 - 12:08 | 2116502 Ahmeexnal
Ahmeexnal's picture


Wed, 02/01/2012 - 12:27 | 2116596 Comay Mierda
Comay Mierda's picture

ALL HEIL MAOBAMA!  He will be your landlord and you will like it or be NDAA'd.  And if he would like to send the Gestapo into your residence for an "inspection" to ensure your "safety" you will obey... The Master will eventually like to ban all firearms in government owned property for your safety!  And to apply for a rental unit, you will submit to microchipping for your "safety" and you will like it!

Wed, 02/01/2012 - 12:34 | 2116628 Buckaroo Banzai
Buckaroo Banzai's picture

Doesn't His Majesty The King own all the lands of the realm? And we merely exist at his pleasure? He is truly a wise and benevelent King, no?

Wed, 02/01/2012 - 12:37 | 2116634 pods
pods's picture

You are more accurate than you know.  Only the King, in this case, is the corporate US government.  


Wed, 02/01/2012 - 12:48 | 2116674 Oh regional Indian
Oh regional Indian's picture

Indeed Pods, the government of the UNITED STATES, jurisdiction Washington DiChy.

As for mortgages, blah blah's going full rental, no different than it's ever been, now only more obvious because no one in the US holds allodial title to their properties. THe American Dream has always been precisely that. A bad dream. 

The Banks though, they've had a Dream Run, eh? And just for general information:

mortgage (n.) 
late 14c., from O.Fr. morgage (13c.), mort gaige, lit. "dead pledge" (replaced in modern Fr. by hypothèque), from mort "dead" + gage "pledge;" so called because the deal dies either when the debt is paid or when payment fails. O.Fr. mort is from V.L. *mortus "dead," from L. mortuus, pp. ofmori "to die" (see mortal). The verb is first attested late 15c.

Wed, 02/01/2012 - 13:17 | 2116791 trav7777
trav7777's picture

will somebody PLEASE lay out Obama?

Wed, 02/01/2012 - 13:46 | 2116909 economics1996
economics1996's picture

Between operation twist and this it seems Obama wants to bankrupt every bank out there that is not located on Wall Street.

Wed, 02/01/2012 - 14:22 | 2117017 smlbizman
smlbizman's picture

i think there is money to be made here...what if you had a rental that was paid off with the exception of a small heloc....the property being a rental is not first class and lets just say worth 75k if sold.....with these guys wanting everyone in debt i bet a heloc will qualify....and with a little creativity it would be your principle i know this home could re-fi for 125k as your home... with out knowing all the details one ends up with 115k based on the housing market you know its value will continue to decline so having a sucker give you 125k is somehow this property continues to generate 1250.00 per month with sec. 8 picking up 800+ if you are in the pm camp you invest a major part of the i know the heloc and resident part will be an issue, but how hard do you think it will be to out smart them....and there would ve no fraud because at the time of this event everything would be exactly as what happens after the fact is another in the end a few years down the road you lose the house but surprisingly you have 110k worth of additional pms.....

the key component of this plan is the incompetence and greed on the other side of the table. also they have re-adjusted my morality when it comes to dealing with this govt....


Wed, 02/01/2012 - 13:32 | 2116854 Buckaroo Banzai
Buckaroo Banzai's picture

Believe me, I was being completely serious. Between Federal, State, and Local government, virtually every square inch of land in the US is owned by the government. It is tragic how few people understand this fact, or understand what the word "ownership" means, or are familiar with the phrase "Allodial title"

Wed, 02/01/2012 - 13:47 | 2116911 pods
pods's picture

Then your subtle sarcasm was above me!  It really is a shame to think that after you pay a bank 2x the value of "your" home for the privilege of using your own credit, you then have to pay rent to the actual owner of the property until you sell it or die.  And if the owner wants to, he may force you off the land for what he says you should get (kelo).  Or he might just bring up a civil charge to separate you from "your" property where you have to pay to have "your" property returned to you. 

Makes your hair hurt to think how bad we are being fucked.


Wed, 02/01/2012 - 14:29 | 2117079 smlbizman
smlbizman's picture

man you can  see and hear the experience and competence coming out of hair dryer boys mouth...the only thing he is an expert in is what hair care products were being used when john travolta was kicking it in saturday night fever...i bet this guy single handily kills more ozone layers every morning with his "breck" hair spray than every coal fired power plant....what a fucking girl....  

Wed, 02/01/2012 - 13:49 | 2116918 economics1996
economics1996's picture

45% of the economy is federal, state, and local.  You add it the regulations and that number escalates.  A healthy mix would be no more than 25% federal, state, and local with the federal consuming no more than 11% of the GDP.

Regulations should be safety and fraud, nothing else.

Wed, 02/01/2012 - 14:22 | 2117046 rayduh4life
rayduh4life's picture

If people want to know who really owns their property, quit paying your property taxes for a few years and you'll find out real quick. 

Wed, 02/01/2012 - 14:48 | 2117146 smlbizman
smlbizman's picture

is it just me...or is the press doing their job...

Wed, 02/01/2012 - 17:21 | 2117768 Mary Wilbur
Mary Wilbur's picture

I don't think you will have to wait so long as a "few years."

Wed, 02/01/2012 - 14:23 | 2117054 Poetic injustice
Poetic injustice's picture

Indeed, he is best King that America ever had!

Tue, 05/01/2012 - 19:08 | 2389609 kall
kall's picture

I think you're over reacting here, his last intention here was to become even more unpopular so let's just give the benefit of the doubt. I am a mortgage payer that's making plans for some improvement projects, things are not as they should be but you don't see me mentioning about Gestapo... What is that?

Wed, 02/01/2012 - 12:30 | 2116611 Chuck Walla
Chuck Walla's picture

Oh, is it election time again?

Wed, 02/01/2012 - 12:54 | 2116692 aheady
aheady's picture


Wed, 02/01/2012 - 13:15 | 2116780 LongSoupLine
LongSoupLine's picture



"A Kentucky Fried Chicken in every pot!"

Wed, 02/01/2012 - 14:00 | 2116965 gatorengineer
gatorengineer's picture

and your choices are Progessive or Progressive, which do you want?

Wed, 02/01/2012 - 12:34 | 2116629 VanillAnalyst
VanillAnalyst's picture

So, what you're saying is. By decreasing the liquidity of the housing market (harder to remove bad borrowers), and imposing seemingly arbritrary new leverages into the system (after 5 years of payments borrower resets to ~90% LTV), we can save the housing market!?!??! HOOORAYYYYYYYY


Oh wait..... that's probably a fucking miserable idea.

Wed, 02/01/2012 - 12:57 | 2116707 blindfaith
blindfaith's picture



This is all nonsense anyway..baloney.  The Commander in Chief can't do any of this with out declaring MARTIAL LAW or have the Congress pass it and he sign it.  Get it?  Ain't gon'a happen.  NOTHING has been done so far with any success because it was VOLUNTARY...ever see a bank do something voluntary?  This is a fall of the year campaign speach...I tryed to do something and got no support.  This is about 4 years to late.

I think he has decided to listen to that rat Larrry know " the way out of this debt is to create more debt".  That works like the way to get healthy is to get twice as sick.

Wed, 02/01/2012 - 13:20 | 2116805 trav7777
trav7777's picture

he wants more black people in houses paid for by whitey.

Minnesota puts up billboards, "It's hard to see racism when you're white."  W T F.  No it ain't.  Just get caught out on a beat whitey night.  You'll see that plus a bunch of stars.

And black people go yeah, hell yeah, that's right, heeba wooba jeeba wobba, gibs us mo opportunities n'shit.

And people like MsCreant see her dipshit university hiring minorities for the sake of having minorities and we wonder if there are really "opportunities" out there.  WTF.  This place is a total clusterfuck run by idiots.

Wed, 02/01/2012 - 13:51 | 2116925 pods
pods's picture

Note from Amazon:

Your new keyboard will arrive on Feb 2, 2012.


Wed, 02/01/2012 - 12:08 | 2116504 achmachat
achmachat's picture

does this one come with a drinking game as well?

Wed, 02/01/2012 - 12:32 | 2116614 kaiserhoff
kaiserhoff's picture

If the Washington Press Corp had any balls, every press conference would begin with a massive chant from the audience, something like this:

arrest Jon Corzine, you criminal motherfuckers

Wed, 02/01/2012 - 12:40 | 2116644 battle axe
battle axe's picture

Yes, every time he says TAX you drink, you will be hammered in about 5 mins. 

Wed, 02/01/2012 - 13:03 | 2116727 TheAntiBen
TheAntiBen's picture

"Let me be clear" - shot oh' Whisky

"Pay their fair share" - shot oh' vodka

"Ummm" or "Uhhh" - gulp of beer


See which one gets you sick and drunk first...

Wed, 02/01/2012 - 13:43 | 2116896 divide_by_zero
divide_by_zero's picture

"We all know .." shot 'o lead

Wed, 02/01/2012 - 14:36 | 2117115 crazyjsmith
crazyjsmith's picture

Another favorite filler for Political Sociopaths...

A condescending statement will soon follow.

Anytime you hear any of these freaks start an answer to a question this way, they have been trained by this demonic order.

Wed, 02/01/2012 - 13:03 | 2116728 TheAntiBen
TheAntiBen's picture

"Let me be clear" - shot oh' Whisky

"Pay their fair share" - shot oh' vodka

"Ummm" or "Uhhh" - gulp of beer


See which one gets you sick and drunk first...

Wed, 02/01/2012 - 12:10 | 2116509 LaLiLuLeLo
LaLiLuLeLo's picture

"Public housing for all!" - Obamney 2012

Wed, 02/01/2012 - 12:14 | 2116533 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Forclosed houses for the good slaves, and FEMA camps for the bad....

Have you been a good slave?  If so, your house will come with a flatscreen, cable, and you will have access to the community laundry mat!

Wed, 02/01/2012 - 12:19 | 2116560 Manthong
Manthong's picture

I could have done without the audio.

Wed, 02/01/2012 - 12:24 | 2116585 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

And if you can make it to the community center tonight, we are raffeling off an afternoon in a new car!

Wed, 02/01/2012 - 12:29 | 2116607 pods
pods's picture

Someone called this yesterday in the minority investment bank thread.  Houses in inventory to be disbursed by some approved entity.


Wed, 02/01/2012 - 14:16 | 2117019 ParkAveFlasher
ParkAveFlasher's picture

I agree with yours and the initial poster's statement, and would add that discovery of "who" and "where" will not be had until after 2010 census-based redistricting - largely in Republican control - concludes.

I can't agree with the lopsided "Obama: BAD" consensus here, IMO this is a federal govt. ploy to simply move the vassals about the countryside in an orderly manner per agreements among the nobility. 

Wed, 02/01/2012 - 12:12 | 2116520 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's funny that so many people can worship such a pompus asshole.

Wed, 02/01/2012 - 12:17 | 2116546 LetThemEatRand
LetThemEatRand's picture

It's the banks that are worshipping him.  This is all about saving their asses and allowing the banks to continue counting these mortgages as assets instead of liabilities.  He could give a rat's ass about the homeowners.

Wed, 02/01/2012 - 12:23 | 2116579 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I meet people everyday that love him.  They want to be him.  Cuz he's so cool!

Wed, 02/01/2012 - 12:28 | 2116601 Ahmeexnal
Ahmeexnal's picture

"It's Bush's fault!"

Wed, 02/01/2012 - 12:54 | 2116688 LetThemEatRand
LetThemEatRand's picture

Partly right.  It's Reagan's, Bush I's, Clinton's, Bush II's and Obama's fault.    Since Reagan, our oligarch owned and operated government has pursued a policy of lower taxes and deficit spending coupled with free trade with countries that had/mostly still have no labor laws, environmental laws, etc., allowing them to undercut American manufacturing by ridiculous margins.  Meanwhile, to replace the lost income of the middle class the Fed gave us low interest rates that created a false wealth effect from a housing and general credit bubble that has culminated in the latest Obama speech.  Those at the top who collected fees for issuing endless worthless loans and who paid themselves tens of millions of dollars associated with the cost-savings of offshoring accumulated dynastic wealth.   The middle class is all but sunk and there is no solution in sight because it will take a sea change in our economy to right the ship.  

Wed, 02/01/2012 - 13:35 | 2116870 Ace Ventura
Ace Ventura's picture

Not sure I agree. Bush 1 and Clinton both hiked taxes, before Bush Jr. lowered them?

In any event, those gents were basically just pawns. The oligarchs you correctly refer to have been running the joint since 1913. While I suppose we can make the case that it's Hamilton's fault (for pushing the central bank desires of the aristocracy), it seems the coup was achieved in totality under Wilson's watch. Ergo, we can perhaps theorize that the enviroment we find ourselves in today was Woodrow Wilson's fault.


Wed, 02/01/2012 - 13:01 | 2116718 blindfaith
blindfaith's picture



Actually it is Phil Graham's fault.

Wed, 02/01/2012 - 20:02 | 2118326 beachdude
beachdude's picture

Back a little further. It's actually LBJ's fault. The great society. In 1964, Johnson beat Goldwater in a landslide.

From wikipedia... "Johnson's campaign successfully portrayed Goldwater as being a dangerous extremist, and advocated social programs which became known as the Great Society."

Things would look quite a bit different today had Goldwater somehow managed to win that election.


Wed, 02/01/2012 - 13:01 | 2116717 francis_sawyer
francis_sawyer's picture

The "landlord in Chief" himself MOVED ON UP (to a deluxe apartment in the sky)... & took his wife Weezy with him...

Wed, 02/01/2012 - 17:25 | 2117775 Joseph Jones
Joseph Jones's picture

You can't buy laughs like this!

Wed, 02/01/2012 - 12:49 | 2116681 MachoMan
MachoMan's picture

Right, the question is that if you're going to force interest reductions on mortgage lenders, then what are you going to give them in return?  My guess is that this is the lead-in to an announcement of a settlement...  In other words, they're simply reporting the "good" news and will bury the bad news in a little while.

Wed, 02/01/2012 - 13:45 | 2116905 Ace Ventura
Ace Ventura's picture


We all KNOW such a deal is coming. No one is behind bars, and only a few token patsies have lost their jobs. Evidence enough by now for even the more obtuse amongst us to realize a settlement will be reached. One that not only permits these cancerous institutions to remain on taxpayer-funded life support, but which also grants them the ability to legally claim they never committed any crimes or willful wrongdoings. I'm at the point where I believe they will rework the rules to the point where they retroactively legalize all the criminal acts conducted during fraudclosuregate. IIRC, Congress has actually tried to do this already through legislative action regarding MERS?

Wed, 02/01/2012 - 14:12 | 2117010 MachoMan
MachoMan's picture

In the end though, I fail to see how the settlement will foreclose (pun intended) the rights of individuals to bring civil suits...  I can't fathom that those claims haven't already vested in a manner impossible to take without offering just compensation in return.  In other words, they may retroactively stop criminal matters, but not civil...  (practically speaking, given the number of criminal prosecutions, they've already stopped criminal matters).  Also, they'll have the added benefit of settling any civil claims from states... 

all that's left is J6P v. TBTF... 

Of course, what I think too many overlook, is that state taxing authorities are about to start butting heads with the banks...  big time.

Wed, 02/01/2012 - 17:31 | 2117795 Joseph Jones
Joseph Jones's picture

WHAT?  A crime occurred relative to $50T worth of bad debt moved from the banks to our (the taxpayers) back?  I'll watch O-Reilly tonight, get all the "facts", and pass it along to readers tomorrow!

(sarc off)

Wed, 02/01/2012 - 12:28 | 2116599 Troll Magnet
Troll Magnet's picture

Lennon Hendrix, I'm with you there, brother.  I also find it incredibly discouraging that nearly half of all Florida GOPers voted for John Kerry, err, I mean, Mitt Romney last night.  And if you add the votes that Newt & Santorum got, it tells you that over 90% of Florida GOPers perfer being enslaved.  This country is doomed.

Wed, 02/01/2012 - 12:37 | 2116632 tarsubil
tarsubil's picture

No. Those people are doomed. Just don't flaunt your PM wealth when everyone else is broke.

Wed, 02/01/2012 - 12:55 | 2116698 Dr. Richard Head
Dr. Richard Head's picture

Funny thing is that banks do NOT consider PMs an asset when considering someone for a homeloan.  Guess I am insolvent mother fahkers

Wed, 02/01/2012 - 17:10 | 2117736 Mary Wilbur
Mary Wilbur's picture

What doe PM mean?

Wed, 02/01/2012 - 17:32 | 2117800 Joseph Jones
Joseph Jones's picture

precious metals...not the stuff in Obama's head. 

Wed, 02/01/2012 - 12:33 | 2116622 Chuck Walla
Chuck Walla's picture

It's funny that so many people can worship such a pompous asshole.


When he talks like he's giving it away with both hands to the Hoi Poloi, the Great Unwashed, yes, they will worship on the alter of free shit.  If they had learned anything in life, they would see that the only ones getting free money are pals, friends, contributors.

Wed, 02/01/2012 - 13:36 | 2116872 francis_sawyer
francis_sawyer's picture

Well... That & the fact that his Kenyan ancestors probably profited from selling slaves...

Wed, 02/01/2012 - 13:22 | 2116812 trav7777
trav7777's picture

he's black...and if you don't love everything blacks are and hate everything white, then YOU BEEZ RAYCISS.

Got it?  Any fuckin questions? 

Wed, 02/01/2012 - 13:52 | 2116930 Ace Ventura
Ace Ventura's picture

Not to nitpick here, but doesn't Barry break down something like: 50% caucasian, 44% arabic, 6% black? Not that it matters to the demographic which votes strictly and totally by what their eyes see. I have no doubt many of them will return to the polls in Novemeber to vote for him again.....for the same reason.

Wed, 02/01/2012 - 16:51 | 2117693 trav7777
trav7777's picture

his dad was kenyan...he sho did look black.

Either way, Halle Barry believes in the one drop rule, and so does every other black.  Because if you are black, you can see racism everywhere.  And you're always the victim of it.  Every failure is the result of someone else.  It's total absolution.

Even if you murder someone over $15 in a dice game, it's whitey's fault for not gibs'n you mo oppotunteez n'shit.

In Minnesota, it's not that there really isn't any racism, it's just that you can't see it when you're white...probably because you beez rayciss n'shit.  Every black sees racism all around them everywhere, but not when they hate on whitey or mexicans or asians.  JFC, if everyone is equal, WHICH THEY ARE, and one group is always in last place, then it MUST BEEZ RAYCISM.  Got it?

Wed, 02/01/2012 - 17:05 | 2117728 Mary Wilbur
Mary Wilbur's picture

They've got a term for it. "Systemic racism." I call it self-pity.

Wed, 02/01/2012 - 17:03 | 2117721 Mary Wilbur
Mary Wilbur's picture

Where does the Arabic come from?

Wed, 02/01/2012 - 12:12 | 2116522 JPM Hater001
JPM Hater001's picture

I'm not reading this shit.  Let me summarize:

Central planning blah blah blah we know best blah blah blah I can fix it blah blah blah Bush blah blah blah messiah blah blah blah bottom blah blah blah government blah blah blah under water blah blah blah not your fault blah blah blah banks will help us out blah blah blah corruption blah blah blah...

Did I miss anything?

Wed, 02/01/2012 - 12:15 | 2116538 Mr Lennon Hendrix
Mr Lennon Hendrix's picture


Give me all your money!


Die slaves, die!

Wed, 02/01/2012 - 12:26 | 2116595 lizzy36
lizzy36's picture


Leverage. FHA 100:1 or close to it.

Wed, 02/01/2012 - 12:44 | 2116657 dwdollar
dwdollar's picture

And you forgot this one too...

"blah, blah, blah, screw anyone who's been financially responsible blah, blah, blah"

Wed, 02/01/2012 - 14:03 | 2116978 thedrickster
thedrickster's picture


Wed, 02/01/2012 - 17:04 | 2117725 Problem Is
Problem Is's picture

-1... Demagogue.

Wed, 02/01/2012 - 20:16 | 2118358 thedrickster
thedrickster's picture

Sarcasm, numbnutz.

Wed, 02/01/2012 - 12:13 | 2116526 Hippocratic Oaf
Hippocratic Oaf's picture

OBAMA: Rewarding failure since 2008

Wed, 02/01/2012 - 12:16 | 2116542 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

America:  Rewarding failure since 1913

Wed, 02/01/2012 - 12:57 | 2116703 Hippocratic Oaf
Hippocratic Oaf's picture

  1. touché

Wed, 02/01/2012 - 12:14 | 2116528 lolmao500
lolmao500's picture

Aka, the votes buying plan.

Aka, the let's help the big banks balance sheets plan.

Wed, 02/01/2012 - 17:02 | 2117720 Problem Is
Problem Is's picture

Diebold will still vote for our incumbent moron...

Wed, 02/01/2012 - 12:15 | 2116532 francis_sawyer
francis_sawyer's picture

"The President's Plan"

Yeah I'm sure he just sat at his desk & thought all that shit up by himself...

He could have it the first tee sooner by just dusting off "Cash for Clunkers" (& slapping a "house" tag on it)...

Wed, 02/01/2012 - 12:15 | 2116537 drink or die
drink or die's picture

"The FHFA, in conjunction with Treasury and HUD, is announcing a pilot sale of foreclosed properties to be transitioned into rental housing."


Translation:  The ghetto, coming soon to a theater near you.

Wed, 02/01/2012 - 12:32 | 2116618 pods
pods's picture

Slumlords Bitchez!

Wed, 02/01/2012 - 12:58 | 2116708 MachoMan
MachoMan's picture

Guessing the new rental units will have a really, really cushy built-in return for the hedge funds and big whig execs that get to partake in the program...  This is part of the payout and has been in the works since the first bank failure...  and this is part of the problem...  because we have not followed the proper order of operations.  If it is possible that the parties benefitting from these cushy deals could have in any way derived their spoils from illicit activities, then how can they be morally permitted to benefit therefrom?

So we're going to stuff private investors full of these rental units (for pennies on the dollar and probably with guaranteed payments from uncle sugar) without first deciding if the person buying them had anything to do with the government's undertaking of the project in the first place?  Really?  So you're going to dump them on people you may end up clawing them back from?  Really?  Makes perfect sense...

There was a simple order of operations to this whole thing if the matter wanted any semblance of a chance of being worked through, prosecute financial crimes and ensure they can never be committed again...  fail on both accounts.  (contemporaneously therewith was the altering of financial reporting to actually give people some accurate measure of a company's financial status, but that too is suspended indefinitely, but I digress).  Now we get nothing but lie after lie to hide the last lie and print after print to hide the last hole...  there was a very, very short period in which to make the right decision...  we're far removed.  An ounce of prevention...

Wed, 02/01/2012 - 13:18 | 2116797 pods
pods's picture

I think that a decision was made that they simply could not prosecute anyone for this if it was connected to MERS, etc.  It would unleash an avalanche of issues that would take down the whole system.

Mainly they have been focused on trying to get people to refi which would wipe the slate of impaired notes, with the added benefit of possibly turning the loan into a recourse loan.

There was definitely a decision made at the highest levels to not go after this one, and the FASB rule change is proof.  They needed to buy time until the problem became more manageable.


Wed, 02/01/2012 - 14:19 | 2117032 MachoMan
MachoMan's picture

Yeah, and they'll buy more time with a settlement...  get the federales and states off their backs for criminal or civl and leave it to individuals to prosecute their claims...  that will free up resources and buy months if not years (especially with the right judge).

The neat part is, that by refusing to follow the rule of law, they've created the rift from which capital will not be created.  It was a pick your poison situation and, again, the road less traveled was avoided.

And, the other neat part, it will never become more manageable...  only continue to deteriorate...  everyone now is positioning for the end game and retirement...  these programs to rent houses are just part of the retirement plan...  here is your severance, hope you can live on the juice.

I haven't got the end game figured out, but the short and medium term is fucking blatant.

Wed, 02/01/2012 - 13:05 | 2116736 Ghordius
Ghordius's picture

is it really true that it's deep ingrained in the UK/US psyche that you either own or you live in a slum?

not long ago Peter Schiff was renting and advising everybody to rent - is nobody even contemplating getting out of the whole mess by setting up a rental market? Germany has one, for example, that is used by 60% of the population

Wed, 02/01/2012 - 13:13 | 2116772 pods
pods's picture

In the US, rentals associated with the government are usually Section 8 housing.  And you cannot mistake large numbers of section 8 houses in close proximity.  A more common term for this is The Ghetto.


Wed, 02/01/2012 - 12:15 | 2116540 surf0766
surf0766's picture

I am looking for a job. Pay my mortgage


Wed, 02/01/2012 - 12:16 | 2116543 Hmm...
Hmm...'s picture

reposted from another thread, as I'm interested to see the thought process of the birthers:

Ok, I'll bite then.  Let's assume that Obama has no legal authority to be our President.  So what?  What should be done about it?  Even the Republicans who despise Obama are not going down that path.  They are doing EVERYTHING in their  power (theoretically) to make sure he doesn't win another term, and they were willing to Impeach Clinton based on his lying about a blowjob, but even they aren't pursuing this.  The state where he was born certifies that he is Hawaiian, so no route there.

So what's the next step?  More court cases that Obama will win through our corrupt Justice system?  Get the word out in the bought and paid for MSM?  Lobby our legislators who aren't interested?

I'm just interested in finding out what should be done that hasn't already been done unsuccessfully.  (doesn't seem to be much reason to pursue what's already been done since it did not lead to his impeachment or removal).

Is the goal to only maintain the anger and indignity of a Kenyan running our country? Or is it to assassinate him?  what?

Wed, 02/01/2012 - 12:18 | 2116553 john39
john39's picture

just another red herring to keep people distracted while the bankers rob and steal.

Wed, 02/01/2012 - 12:28 | 2116602 Hmm...
Hmm...'s picture

that's what I think. 

but on the prior thread the birther link got 8+ and 1- arrow, and my ridiculing the birther thread got 14- arrows and 1+.  thus, seems like the birther issue resonates with some of the ZH crowd. 

it surprised me to see the defense of the birther argument in an area with informed people.  so I thought I'd ask what should be done about it.  (an honest question). 

perhaps it's just tilting at windmills.  reminds me of George W.  Many on the left scream to this day that he "stole" the election with Jeb's Florida antics and the Supreme court. 


Wed, 02/01/2012 - 12:39 | 2116639 john39
john39's picture

that is because anyone with a brain knows that obama is a total fraud that we really know nothing about.  the backstory is all bogus...   but so what, getting rid of that POS does nothing in the big scheme of things.  the entire government is a fraud, why sweat the figurehead? 

Wed, 02/01/2012 - 16:59 | 2117713 Problem Is
Problem Is's picture

Out with one Useful Idiot... In with the next...

Introducing the Mormotron 2012...

Willard Romney

Mitt is a baseball glove... After this last cock sucker Soetoro... no more aliases...

Wed, 02/01/2012 - 12:42 | 2116655 pods
pods's picture

Well the "birther" argument was reinforced by the WH uploading a tampered pdf file that everyone and their brother opened in illustrator and saw it was not a simple scan.

Many have dropped the birther argument simply because of this:

The Unites States government does not obey the rest of the rules set up for it (constitution), so this is really a non starter.  

There used to be many people who were shouting about this, but sooner or later they start to realize that the whole thing is such a sham that it cannot be saved.  So they use their energy to prepare for the collapse and to think about how to ensure that the next government does not metastasize like the current one has.


Wed, 02/01/2012 - 12:26 | 2116592 Dr. Engali
Dr. Engali's picture

So what you are trying to say is that you still believe there is a such thing as parties and that the president actually runs this country.

Wed, 02/01/2012 - 12:29 | 2116606 drink or die
drink or die's picture

Pretty cute right?  Reminds me of myself in high school.

Wed, 02/01/2012 - 12:34 | 2116613 Hmm...
Hmm...'s picture

me? I'm not saying that at all.  In fact I think quite the opposite.

Here is what I've said before (condensed)

The way it is now we have essentially one party with very slight differences.  The party is controlled by a small group of powerful interests, made all the easier by recent Supreme court decisions.  Only a person who is willing to sell out and play ball can ever win.  thus, the game is rigged before we even start.  This is why people like Ron Paul, Denis Kucinich, Paul Wellstone (dec) and Bernie Sanders could never become President.

but when I state this obvious fact I routinely get like 100,000 negative arrows, lambasting me for not having the faith in Dr. Paul or whatever.

Wed, 02/01/2012 - 12:41 | 2116650 drink or die
drink or die's picture

The whole birther thing is a non-issue.  Who cares even if he is from Kenya?  It violates the Constitution?  So does everything else this government does and no one seems to care.  Assuming McCain would have won, would anything have been different?  (spoiler: it would be the same).


So yes it's obvious the 2 parties are the same, and the status quo will always be preserved by the establishment.

Wed, 02/01/2012 - 12:49 | 2116675 Hmm...
Hmm...'s picture

Who cares even if he is from Kenya? 

Not me, but evidently some people around here care.

The "why" is what I'm trying to figure out.

I see a fair amount of birther crap and often they get a lot of up arrows.  I challenged it as stupid and got a lot of down arrows.   so it must mean something to people around here. 

there is so much to hate about Obama, seems funny to me to worry about whether or not his social security card was from 1890 (as the linked site stated). 

but perhaps it's just to remind people that yes indeed he is half black... as though we couldn't figure that out by looking at him.

Wed, 02/01/2012 - 12:55 | 2116697 drink or die
drink or die's picture

There are a lot of right wing (and left wing) koolaid drinkers that come to this site.  Don't take it personally if you get downvoted.

Wed, 02/01/2012 - 13:07 | 2116742 Hmm...
Hmm...'s picture

haha...  thanks for the encouragement, but I really don't take it personally at all.

I don't mind that some of my views are out of consensus here.  I was just surprised that informed people believe this and find it important, that's all.  Up until today I had mainly assumed that the birthers were either just making it up for political gain (like Trump) or they were the uninformed (like that woman last week who spoke with Santorum). 

my curiousity got the best of me and I couldn't help but wonder then what was the end goal for the birthers... so I poked the beehive.

but in the end I get TONS of down arrows all the time... it's what happens when you are a LEFT libertarian with socialist tendencies on a blog with a lot of RIGHT libertarians. 

luckily for me I have an ego almost as big as Obama's.

Wed, 02/01/2012 - 13:16 | 2116789 Ghordius
Ghordius's picture

wait! Left and right libertarians? eh?

can you traduce this to something an European can understand?

are you talking about anarcho-capitalist vs. anarcho-syndacalist?

or is it more Cato Institute vs.

Wed, 02/01/2012 - 13:23 | 2116814 Ghordius
Ghordius's picture

re. your down-arrows, lots of ZH readers want either short useful info, something to vent anger or sarcastic humour

anything else - like asking political questions - might be voted down

I think it was two years ago when someone was posting something like

"rule nr.3 of the fight club: don't ask questions"

Wed, 02/01/2012 - 13:14 | 2116771 Ghordius
Ghordius's picture

well, the US could have had other Presidents if birthplace would not be an issue

Henry Kissinger and Arnold Schwarzenegger, for example.

One of the two even got a Peace Nobel prize...

Wed, 02/01/2012 - 12:16 | 2116547 john39
john39's picture

wondering how this fixes anything.  underwater properties will still be underwater even with a refi.   all it does it get (some) borrowers into new lower interest loans.   short term fee shot for banks...  maybe this covers up piles of old fraudulent mortgages...   at best just another can kick. 

Wed, 02/01/2012 - 16:53 | 2117699 Problem Is
Problem Is's picture

"wondering how this fixes anything."

The Teleprompter Has Spoken
It doesn't for you and me john... That's the whole point...

Wed, 02/01/2012 - 12:17 | 2116548 TheSilverJournal
TheSilverJournal's picture

The US government is soon to be America's largest landlord. I hope you like your neighbor's house'll own it! Central planning at its best.

Wed, 02/01/2012 - 12:17 | 2116549 Everybodys All ...
Everybodys All American's picture

Welfare in Chief.

Wed, 02/01/2012 - 12:17 | 2116552 scatterbrains
scatterbrains's picture

Is his plan good news for the common cock holders at BAC ?

Wed, 02/01/2012 - 12:18 | 2116555 vegas
vegas's picture

Thanks for the heads up Chalky Hussein Soetero. The fact that you couldn't find your ass with both hands even if you had a roadmap shouldn't deter anyone with a brain from figuring out you haven't a fucking clue what you are doing; except of course buying votes from Amerikan chumps.

Wed, 02/01/2012 - 12:21 | 2116564 Hansel
Hansel's picture

Free housing for deadbeats for another year while offloading properties on the cheap to banks and hedge funds to rent to (extort) the people.  FUCK YOU ASSHOLES.

Wed, 02/01/2012 - 12:43 | 2116660 Taint Boil
Taint Boil's picture

Rent vs Buy is a good site for that.

Wed, 02/01/2012 - 12:20 | 2116565 sleepingbeauty
sleepingbeauty's picture

I remember that many of these underwater houses have unclear titles, will this wide-scaled refinancing cement the banks claim to title.

Wed, 02/01/2012 - 16:50 | 2117690 Problem Is
Problem Is's picture


Back door fix for the MERS problem...

Uncle Tangelo Says:

"Refi and sign here, little girl..."

Wed, 02/01/2012 - 12:25 | 2116567 Mercury
Mercury's picture

...and that is why I've had tasked the relevant, federal agencies with casting the biggest, loudest cow bell ever.  Effective immediately, my administration is going to beat this thing like a rented mule until the American Dream has been restored...

Wed, 02/01/2012 - 12:44 | 2116664 323
323's picture

but will it be enough?

Wed, 02/01/2012 - 12:58 | 2116696 Mercury
Mercury's picture

No, it's not even heading in the right direction.

Fighting a credit bubble hangover by subsidizing  more easy credit will do next to nothing other than to (in this case) spread the write-down pain around to more people (tax payers) via whatever government programs he just dreamed up.

Wed, 02/01/2012 - 13:02 | 2116724 323
323's picture

so... you're saying we will need even more cowbell? ;->


Wed, 02/01/2012 - 12:21 | 2116569 Lost Wages
Lost Wages's picture

Wait, so am I still surrending my house to the bank after my Chapter 7 or am I renting it from Warren Buffett?

Wed, 02/01/2012 - 12:27 | 2116598 francis_sawyer
francis_sawyer's picture


Wed, 02/01/2012 - 12:21 | 2116572 AldoHux_IV
AldoHux_IV's picture

This plan wreaks of failure and a pathetic attempt at letting the banks have and eat their cake.

Wed, 02/01/2012 - 13:00 | 2116714 DOT
DOT's picture

....have and eat your cake.

Wed, 02/01/2012 - 12:25 | 2116576 thedrickster
thedrickster's picture

Principal reduction is the line in the sand bitches. If the ignorant, pompous bastards who circa 2009 said in no uncertain terms that, "I was throwing my money away on rent" get off without pain I am just going to lose my freaking mind.

Wed, 02/01/2012 - 12:26 | 2116580 drivenZ
drivenZ's picture

They'll blame the banks and say the forms are too confusing and not transparent but I've yet to see anyone tackle tax reform in a meaningful way. Blame everyone else in the private sector, meanwhile the effort and wasted time that goes into paying US taxes every year for businesses and individuals is so large it's unquantifiable.  


I guess the ridiculous tax code gives Mitt Romneys accountant a job? right? 

Wed, 02/01/2012 - 12:24 | 2116583 q99x2
q99x2's picture

Finally someone is being forced to pay for bankster fraud.

Wed, 02/01/2012 - 12:32 | 2116588 SilverFish
SilverFish's picture

I cant WAIT to get my three McMansions and cash for the power bills on each one. Thank you Obama!


What I dont live in, I can rent out to my baby-mommas for extra cash, or rent to meth-labs.


If only we could get him for THREE terms instead of two.


Its just not fair. :(

Wed, 02/01/2012 - 12:58 | 2116589 AC_Doctor
AC_Doctor's picture

The Brown Clown is at work again.  Watch the lies and deception about the current ugly state of our RE markets and financial conditions and how only our over-bloated Government is the key to our prosperity and financial security.

Wed, 02/01/2012 - 12:26 | 2116594 battle axe
battle axe's picture

"Joint investigation into Mortgage origination and servicing abuses" BWAHAAAAAAAAA HAAAAAAAA, where the hell have these guys been since 08? A prediction, nothing will come of it. Guaranteed. Fucking Joke.

Wed, 02/01/2012 - 13:02 | 2116671 323
323's picture

key word "joint"

Wed, 02/01/2012 - 12:49 | 2116680 pods
pods's picture

They have to wait for the SOL to expire before they investigate.  


Wed, 02/01/2012 - 12:27 | 2116597 ZeroPoint
ZeroPoint's picture

Government rental = automatic revocation of fourth amendment rights.

Wed, 02/01/2012 - 12:28 | 2116604 FL_Conservative
FL_Conservative's picture

What a waste.  They would have done better by reducing principal balances back with the first stimulus program.  All this does is buy homeowners a 12-month reprieve from being foreclosed on.  At this point, with ZIRP in place, anyone who wanted to refi has already done so.  Bunch of fucking idiots.

Wed, 02/01/2012 - 12:33 | 2116623 francis_sawyer
francis_sawyer's picture

Under the rebuilding equity program, the borrower would refinance into a 20-year mortgage at 3.75 percent and commit her monthly savings to paying down principal. After five years, her mortgage balance would decline to $152,000, bringing the borrower above water

Then... He left out the part after that says...

"& with that new EQUITY, they could take out an EQUITY LOAN on it, and go deeper into debt buying rubber dogshit from China on credit"

Wed, 02/01/2012 - 13:42 | 2116891 viahj
viahj's picture

Under the rebuilding equity program, the borrower would refinance into a 20-year mortgage at 3.75 percent and commit her monthly savings to paying down principal.


you looked at the wrong part of that.  refi from a 30 year to a 20 year and COMMIT the monthly savings (ie you're still paying the same monthly payment).  the result, the loan is paid off faster for the lein holder.  this isn't about reducing monthly mortgage payments, its about side stepping the currrent MERS issue with teh refi and paying back the principle at a faster rate.

Wed, 02/01/2012 - 17:48 | 2117858 Joseph Jones
Joseph Jones's picture

You mean...

Long on Wal Mart?

Long on waste disposal?

Wed, 02/01/2012 - 12:37 | 2116630 optimator
optimator's picture

And a vacation for all who don't like it to Spa Siberia, not a FEMA camp.  And a free Government Motors car for all with a slight wait to take delivery.  We'll call it the Lada or the Yugo.  Trabant doesn't sound classy enough.

Wed, 02/01/2012 - 12:37 | 2116633 chunga
chunga's picture

That's all bullshit.

This MBS thing is the biggest swindle to ever occur on this earth.

Sue all these bastards. This one popped out on Jan. 18, 2012...

Bank of America CEO Moynihan to be Named as Defendant in Federal Foreclosure Lawsuit

Then yesterday popped out their self-serving response (BOA threw the law firm THEY hired under the bus.)

Bank of America Responds to Moynihan Lawsuit - Cites Criminal Act Committed By Rogue Foreclosure Mill Harmon Law

That IS the problem with working as a Financial Predator for other Financial Predators; sometimes they eat YOU.

This Harmon Law will go the way of Stern and Baum. Right down the tubes.

Wed, 02/01/2012 - 12:37 | 2116637 moroots
moroots's picture

The reason you know how evil these people are is that anyone with half a fucking brain and an iota of introspection might begin to question central planning after the last three disastrous years under Obama and the last dozen under Obama/Bush.  At some point, an intellectually honest President asks "Our past attempts to centrally plan the economy didn't work, so why would we think our current attempt to centrally plan the economy will work?"  No one is asking this question and Barry has not once admitted any of his policies have been a mistake.  Hence, even an ignoramus should understand by now that Barry is a pure evil puppet controlled by pure evil puppet masters.

Wed, 02/01/2012 - 12:59 | 2116710 Global Hunter
Global Hunter's picture

at the start of Bush/Obama's term I was a red blooded "conservative" pro American, pro western patriot.  They have succeeded in waking me and many others up so I have to give them kudos for that.

Wed, 02/01/2012 - 17:54 | 2117873 Joseph Jones
Joseph Jones's picture

Welcome aboard the sanity train.

Used to feel sick going on vacation when the hotel did not have Faux News, and Bill O'"banker slave" Reilly (scum of the earth) in particular.

Wouldn't hook up cable now if they paid me.  I hate MSM of all stripes.  I have no respect for people who join the "volunteer" military.   


Wed, 02/01/2012 - 12:39 | 2116642 Misean
Misean's picture

Well, so long as you don't mind converting into a recourse loan and never need to sell to a buyer who can't get less than 6% 30 yr with a 20% down payment, it should work out just peachy.

Wed, 02/01/2012 - 12:43 | 2116658 BandGap
BandGap's picture

The beauty of this plan is the sheer simplicity.

All your homes are belong to us.


Wed, 02/01/2012 - 13:01 | 2116672 Money 4 Nothing
Money 4 Nothing's picture

Fuck Obama, and Fuck those banks. All it is in my opinion is off loaded toxic paper from BAC etc. into the hands of the Gooberment. Problem fixed? No, there just transfering more private property and making "underwater" owners into renters at the hands of a Buracracy.

Now that you see O' Blah Blah going to bat and making excuses for the Big Banks (Aww, poor banks) and then transfering blame to  mortgague signer offering "the solution", they have exposed themselves right there. Nobody is in jail yet. Those that create the problem always have the solution to the problem because they were there watching the puzzle fall apart.


Look, "they" Big Banks invented creative financial products ie CDO's, ARM and CDS to rip off the mortgague sector. Let them "fix" the problem correctly and send a shit ton of them to jail, then we can start fixing the fukin problem. Boils my blood.



Wed, 02/01/2012 - 12:49 | 2116678 badameli
badameli's picture

yay - what a plan - it'll be nice to slow down the rental market. After all - you wouldn't want successful private businesses to pop up and provide housing to people.


Let's just use the federal government to kill their margins.

Wed, 02/01/2012 - 12:56 | 2116699 SwingForce
SwingForce's picture

How many people have a mortgage NOT guaranteed by a GSE? Nobody? That's how it won't "cost a dime"...

Wed, 02/01/2012 - 12:56 | 2116700 DOT
DOT's picture

All that is needed to transition housing to a new and sustainable environment is a few hundred bulldozers.

I personally think it would be a hoot to take-out a block or two !

Wed, 02/01/2012 - 12:56 | 2116701 scatterbrains
scatterbrains's picture

Will it be worth it to come out of retirement and become unemployed so that I don't have to pay my mortgage for a year with this plan ?

Wed, 02/01/2012 - 12:56 | 2116702 Lil Ms.Homesteader
Lil Ms.Homesteader's picture

More outrageousness from the ministry of truth.

Wed, 02/01/2012 - 13:03 | 2116729 Grey-Ghost
Grey-Ghost's picture

They are not giving up :) -- but does this nation deserve anything better? This is an honest question. If a robber visits you again to rape your wife and when he comes yet again, for the thrid time and you offer him a nice cup of hot coffee why would I think he's the bad guy? Nope, you're a cowardly idiot if this would be the case

Wed, 02/01/2012 - 13:08 | 2116745 Alex Kintner
Alex Kintner's picture

One man's "Heal the Housing Market" is another man's "Reinflate the Housing Bubble".

Wed, 02/01/2012 - 13:10 | 2116756 Rentenmark
Rentenmark's picture

Three cheers and a toast of Victory Gin to comrade Obama!  His wise ways have brought us Victory Green Energy (solyndra), Victory Autos (GM), and now Victory Homes with this plan.  The Ministry of Love shall see to it that you will enjoy your new home.

Wed, 02/01/2012 - 13:13 | 2116760 Hobbleknee
Hobbleknee's picture

Servicers must disclose to homeowners all known fees and penalties in a timely manner and in understandable language, with any changes disclosed before they go into effect.


The US tax code is over 70,000 pages long.  Ironic?

Wed, 02/01/2012 - 13:15 | 2116783 FreeMarketBuff
FreeMarketBuff's picture

This is definitely a move to save the banks who created a faulty paper trail.

HAFA and HAMP were both scams getting homeowners who they knew would default to create a NEW VALID paper trail.


I guess the people who benefit from this are:

The banks (deleveraging their books) 

The Title companies ( for the cost of insuring bad title)


This screws:

The tax payer by artifically propping up the housing market yet again. Remember the 8,000 tax credit?


My guess: Obama election year politics to show bankers he is still on their side.

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