Obama’s Congress is Giving Easy Money to Un-Qualified Home Buyers Thru The FHA as It Did With Fannie and Freddie. Barney Frank in The Drivers Seat!

Easy-money mortgages is still provided, by the feds

Is the ghost of Ted Kennedy driving this?

Easy-money mortgages with little or no down payment for buyers/pigs with bad credit/no credit was a thing of the past? The money trough is open.

You can get the money today, guaranteed by the federal government.

Barney Frank and Chris Dodd at work:

Loans insured by the (FHA) have become “the new subprime,” and these loans are exposing taxpayers to the same kinds of soaring default rates and losses that brought down Fannie Mae and Freddie Mac as well as destroyed many banks and the private market for mortgage loans. Frank and Dodd don’t care as long as the shlubs that borrow this money vote for them and their party!

While private lenders learned a lesson from the mortgage crisis and are shying away from easy-money loans, the FHA has stepped in. The agency is backing for 37 percent of all mortgages used to buy homes this year.

After the collapse of the private mortgage market last year, Congress and the George W. Bush administration greatly expanded the FHA’s original Depression-era program aimed at assisting sales of modestly priced homes by more than doubling the ceiling on loans that the agency can insure to $625,500 while maintaining its loose lending terms – ensuring that nearly any home sale could be covered by the agency.

The FHA’s predominance was enhanced further this year when Barack Hussein Obama’s Congress lifted the ceiling to more than $729,000 for major urban areas and passed an $8,000 tax credit for first-time homebuyers that can be accelerated for borrowers to use as a down payment on FHA loans and avoid any cash commitment to their home purchases. No money down on big money homes means forclosure in a year or two and a HUGE loss to the American Taxpayer!

While these changes were intended to be temporary and expire by the end of the year, given the fragility of the housing and mortgage markets, Congress is considered likely to extend them this fall. Of course they will, 2010 is an election year.

Use of the same bad credit practices that were at the root of the housing crisis, likely feeding further waves of default and foreclosure. But this time it is the taxpayer – not the banks – who could end up holding the bag.

The surging default rates of more than 30 percent on loans insured since 2006 by the FHA. That is not far below the 40 percent rate of default and foreclosure on the notorious subprime loans that ignited the credit crisis.
FHA’s portfolio is exploding and the taxpayer is now on the hook for 100 percent of the losses,”

FHA’s growing default problems are the results are the same – unsustainable/bad loans perpetuate the nightmare of foreclosures.”

It is estimated that 20 percent of the FHA’s entire portfolio of $725 billion mortgages will end up in foreclosure – and FHA agrees . It is predicts that the FHA will require a taxpayer bailout within two to three years. Yet, they continue to push the bad money out the door as the behest of Barack Hussein Obama and his minions in Congress like Barney Frank and Chris Dodd.

One reason defaults are soaring is they are lending to homebuyers who haven’t saved enough to make down payments. Loans with little or no down payment (no owner investment) have high rates of loss is because the borrower has little or no financial stake in losing their homes to foreclosure.

The FHA requires a minimal 3.5 percent down payment – far below the 20 percent now required by private lenders.

Many borrowers have been able to avoid that minimal level of l investment in their homes. Obama’s administration is enabling these buyers to put up no cash at all allowing them to get advanced payments of the $8,000 homebuyers tax credit through arrangements with nonprofit housing groups and state housing agencies. The tax credit can be used the same way to pay closing costs.

Beyond the loosened standards on down payments, the FHA remains willing to make loans to people with low credit ratings, even those with histories of default, foreclosure or bankruptcy. Those with histories of default are far more likely to default again.

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The FHA has a program that will help people who missed two or three payments under such duress by using the insurance fund to make those payments for them and then recouping the money when the property is sold – a provision that has been used in about 400,000 cases so far and could help to bring down the foreclosure rates on loans that go into default as a result of the recession. In other words, don’t even pay your mortgage, Obama’s boys will pay it for you! This is deceptive and covering up bad loans.

The agency also is considering tightening standards for borrowers who pose multiple risks, such as those with histories of default. Sure they will, after the FHA is in such trouble that Obama will have to once against use OUR money to bail them out!

Responsible lending would spoil the housing recoverybecause the FHA has effectively replaced subprime lenders who went bust. They’re under pressure by Barack Hussein Obama to prop up housing prices, and are insuring heaps of risky loans.

The FHA’s backers in Congress, led by House Financial Services Committee Chairman Barney Frank, a Massachusetts Democrat Congressman, maintain that high default rates are the price of Congress’ decision to use the FHA to prevent a complete collapse of the housing and mortgage markets in a time of extreme distress. What does he care, not at all just as he didn’t care when Fannie and Freddie went broke!

By keeping affordable loans flowing, particularly to the growing ranks of first-time homebuyers, the FHA has been critical to our nation’s economic and housing market recovery.

But even some liberal housing advocates say the FHA’s spectacular expansion is worrisome.

Given the huge ramp up in its lending in a very short period of time, it seems unlikely that the FHA has been able to adequately scrutinize the loans that it is buying.

While any bailout of FHA likely would be small the crippling of the FHA as a lender would be another blow to the housing market and would be a serious political blow to efforts to ensure access to mortgages for moderate-income families.

RWD

Michelle Obama’s Quid Pro Quo Part Time Job Paid Her $304.81 per Hour!

Replacing
Michelle Obama in Chicago
(UNCLASSIFIED and SHOULD BE INVESTIGATED)

At the top right hand corner of Page 17 of the New York Post
Of January 24th, 2009, was a short column entitled “Replacing Michelle”
In the National Review “The Week” column.

(The Michelle they are talking about is Michelle Obama, wife of Barack Hussein Obama)

Here it is, word for word, as it appeared:

“Some employees are simply irreplaceable. Take Michelle Obama:
The University of Chicago Medical center hired her in 2002 to run
“programs for community relations, neighborhood outreach,
Volunteer recruitment, staff diversity and minority contracting”
(Wasn’t Barack Hussein Obama a “commiunity Organizer” before Senator and President?)

In 2005, the hospital raised her salary from $120,000 to $317, 000
Nearly twice what her husband, Barack Hussein Obama, made as a Senator.

Oh, did we mention that her husband, Barack Hussein Obama, had just become a US Senator? He
Sure had. And that he immediately requested a $1 million earmark for
The UC Medical Center, in fact?… You betcha by golly.. He surely
Did. Way to network Michelle Obama! (In fairness, I have to tell you he did not get it BUT the fact that he even had the chutzpah to request it is mind boggling). (I wonder what he did with tax payer money for the University of Chicago Medical Center when he was an Illinois State Senator?) (I also wonder what or how much the University will get from the stimulous package and how the free health care program that Michelle Obama started will be benefited by Barack Hussein Obama’s Obamacare package?)

But now that Mrs. Michelle Obama has resigned, the hospital says her position
Will remain unfilled. How can that possibly be??? (Because they did not need her at all, ever) Especially if the Work she did was vital enough to be worth $317,000? Oh, by the way,
Let me add that Michelle Obama’s position was a part time, 20 hour week job
At $317,000.00 per year !! That amounts to $304.81 per hour for a fifty two week year And to think they were critical of Blagojovich’s wife, Patti, For taking $100,000 in fuzzy real estate commission.”

(Incidentally, the man who hired Michelle Obama, resigned his post today, 08/14/2009)

The Question is: How did this bit of quid pro quo corruption escape the
Sharp reporters that dug through Sarah Palin’s garbage and kindergarten files?

RWD

(anything in brackets was added by me!)

Who is next for Obama to denounce??

I was trying to come up with a controversial subject to write about on the very day when Obama “clinches” the needed delegates for nomination and I thought about maybe those voters (popular votes) that Hillary had that are being cast aside. Then, I have no love for Hillary so I am not sure I could be objective 🙂 there.

Then I thought about the Florida and Michigan deal where the DNC screwed over the voters to give Obama a better chance but I was not able to be objective there either 😉 because they voters were Democrats and they should have known the DNC has been screwing with them for a long time.

I finally settled on the question of WHO will he denounce or distance himself from next. He has already dumped two controversial men of the cloth, who have been long time friends and advisors that caused him problems, for HIS political good (Barack, the stain does not come out, you still have it) but those two racial whacko’s have really done their damage already.

I think it will be either Michelle Obama, she don’t really like white people either and is just as vocal about it as Wright and Pfleger (Pfleger was told by the Cardinal in Chicago to lay off of politics in the church) was or as I saw on another BLOG, “he may have to distance himself from himself”. All are distinct posibilities! Then of course it could be whoever told him that he could help his cause with the veterans and military by telling the story about his uncle freeing the prisoners from the German prison camp in WWII but told him the wrong camp name or was it it great uncle or mabe his Grandfather or maybe he should distance himself from himself as the person on the other BLOG said, and be done with it. OR HE COULD FORGET THE LIES AND TELL THE TRUTH! What a novel idea!

I guess with possibles such as these, we will just have to see who it will be that next threatens Obama’s assent to his rightful position of President of The United States of America! He can’t be King of the Inited States, that was Garfield Goose when I was a teenager. I will post the winner just as soon as it happens so check back often.

RWD

Grow up Obama, This IS the Big Leagues!

Below (in italics and quotes) is what Barack Obama said as quoted from the press and what I heard on the news. What I did not see in print or hear on the news is that IF he is a candidate and his wife Michelle is making speeches or appearing with him or in his behalf to further his campaign, she is as well as he is “FAIR GAME” for pundit comments, for opposition commentary and for blogs like this one to say “SHE SAID WHAT SHE SAID SO LIVE WITH IT”. It is just like Obama to whine and sputter when he or his campaign is called on something. I say to that ” GROW UP SENATOR OBAMA, THIS IS THE BIG LEAGUES”. Obama stated that he found the comments by the Tennessee GOP to be unacceptable! So what? I find his notion that he would negotiate with terrorists on behalf of my country unacceptable! How’s that Senator Obama?

I also would like to say in return to your “Lay off my wife” comment, “LAY OFF MY PRESIDENT” using the same logic you use for not speaking about Michelle. GWB is not campaigning for anything. He did not, at least IMHO, direct his appeasement comment to you. I believe he directed it toward the GREAT APPEASER, JIMMY CARTER and he should have. The man should have his passport taken away and placed on home confinement with an ankle bracelet.

I don’t call that strategy low class, I call that strategy just plain ignorant and scary!

 

WASHINGTON — Democrat Barack Obama has a message for Tennessee’s Republican Party: “Lay off my wife.”

“Obama, his party’s presidential front-runner, and his wife, Michelle, were asked in an interview aired Monday on ABC’s “Good Morning America” about an online video last week by the state’s GOP taking her to task for a comment some considered unpatriotic.

“The GOP, should I be the nominee, can say whatever they want to say about me, my track record,” Obama said. “If they think that they’re going to try to make Michelle an issue in this campaign, they should be careful because that I find unacceptable, the notion that you start attacking my wife or my family.”

He called the strategy “low class.”

RWD