The restructuring of loans will keep prices high... Fannie Mae and Freddie Mac..

NEW -> Contingent Buyer Assistance Program
T

theBigD_IHB

New member
<p>announced that they will help sub prime borrowers restructure, keeping prices high.</p>

<p><a href="http://biz.yahoo.com/ap/070417/risky_mortgages.html?.v=8">http://biz.yahoo.com/ap/070417/risky_mortgages.html?.v=8</a> </p>
 
<p>"Many of those borrowers "could avoid foreclosure if they were offered (loans) that allow for affordable mortgage payments," Bair testified. "Restructuring their loans into more affordable products, especially 30-year fixed-rate mortgages, would bring them back to good standing, allow them to repair their credit histories and dampen the impact that foreclosures may have on the broader housing market.""</p>



<p dir="ltr">It doesn't sound like she knows what she's talking about. For most of those borrowers, a 30 year fixed loan would be <em>less</em> affordable because those borrowers can't afford the monthly payment on a 30 year fixed. If they could, they likely would have taken a 30 year fixed in the first place.</p>
 
<p><em>"Restructuring their loans into more affordable products, especially <strong>30-year fixed-rate mortgages</strong>, would bring them back to good standing, allow them to repair their credit histories and dampen the impact that foreclosures may have on the broader housing market."</em></p>

<p>[snip]</p>

<p><em>Richard Syron, Freddie Mac's chairman and chief executive, said the company is "working on a major effort to develop more consumer-friendly subprime products that will provide stable financing alternatives going forward," which are expected to be available by midsummer. </em></p>

<p><em>He said the new products will include <strong>30-year and possibly 40-year fixed-rate mortgages</strong> as well as adjustable-rate mortgages with longer fixed-rate periods.</em></p>

<p>I can see how these programs might help someone who could genuinely afford their home if it only were financed with a real (ie. not a screwball) mortgage. I can't see the programs helping much around here.</p>

<p>I'm not 100% opposed to a "bailout" that involves making rational mortgages available to people who can come within a stone's throw of "conforming." SoCal, on the other hand, is in another universe.</p>
 
You must log in or register to reply here.
Back
Top