You knew this was coming. Last Friday, it was promising a screeching collection of wet-behind-the-ears worshippers in that liberal hell known as Ann Arbor, Michigan that he would take money from those evil millionaires to pay for their student loans. Today he is moving on to goodies for those middle-class suburbanites. From the Wall Street Journal:
President Barack Obama is expected to announce a fresh bid to revive the housing market Wednesday—despite likely congressional opposition—by letting millions of homeowners refinance their mortgages, senior administration officials said.
The plan aims to help borrowers who are current on their mortgages refinance into lower-interest federally insured loans. Borrowers would qualify even if they owe more than their homes are worth or if they have trouble securing a new mortgage from a private lender. …
The new initiative would extend that opportunity to roughly one-third of all mortgages that aren’t backed by federal entities and instead are owned by banks or were bundled by private firms that sold them off to investors as mortgage-backed securities. The Federal Housing Administration would instead guarantee the new loan.
To qualify, homeowners would have to be current on their last six mortgage payments and have no more than one delinquency in the previous six months. Senior administration officials said they hoped such a requirement would help build support on Capitol Hill and address critics who ask why the government is helping people who borrowed more than they could afford.
The refinancing effort would represent another major expansion of the federal government’s already extraordinary efforts to backstop mortgage markets.
Key words: “expansion of the federal government.” This plan “would make refinancing possible for an estimated 3.5 million homeowners. That’s on top of 11 million borrowers who could benefit from the existing program for borrowers with Fannie- and Freddie-backed loans.”
Here’s the best part:
The plan would be open to owner occupants and borrowers with a minimum credit score of 580. Loans that exceed FHA limits, which range from $271,050 to $729,750, depending on local home prices, wouldn’t be eligible. To simplify the application process, lenders would have to confirm employment but little else. Homeowners who are deeply underwater would be eligible, but lenders would have to write down the loan balance to 140% of the value of the home.
So, the Regime wants to force lenders to eat losses that are largely the result of government interference in the housing market, in the interest of–what else?–”fairness.” MMM …I wonder where the lenders will make up those losses? You guessed it. By charging higher fees to you and me, so the beneficiaries of Barack’s stash can stay in homes that they never should have been allowed to purchase in the first place.
Barack Obama and his repellant wife hope to continue to live at a level of luxury unknown in human history, thanks to their taxpayer-subsidized lifestyle, while confiscating from the makers to give to the takers. It’s his vision of a “remade” America: the political royalty living large at the top, their cronies and mascots receiving the goodies that they choose to dole out, and the rest of us at the bottom, whose job is to submit and pay.
It’s not like he didn’t warn us. Remember what he told Joe the Plumber about spreading the wealth around?
Cross posted at Illinois Review.
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