FHA Rescue Bill (which includes the FHA Modernization items for Reverse Mortgages)
Posted in Inman News Feedback and Suggestions By Gloria de Gaston Boone, Thursday, June 19, 2008.6-19-2008: I'd like to see a discussion on the FHA Rescue Bill, which also includes major improvements for the Reverse Mortgage. I see a need for the bill, especially among the elderly whose income cannot keep up with rising food, gas, taxes, utility costs (Dominion Elec. is raising their rates by 18% in July. 18%!!!
We need something...it's sort of like giving inoculations to undocumented workers and families so that if they get an infectious disease it doesn't spread to all of us. Now we have to help the undeserving in order to help those who deserve help, and, frankly, to try to stop the direction this flood of foreclosures and bankruptcies, along with the higher prices we are paying for our necessities.
Gloria
6-19-2008
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Submitted by Jason Malone on July 23, 2008 - 9:04pm.
You see a need for the Government to come along and bail people out for their own mistakes?
So have you ever made a mistake in your life? A financial mistake? Should the government have come along and bailed you out?
The mortgage industry, along with many uneducated consumers made their own mistakes and they should suffer the consequences. This is the only way they will learn. The market needs to correct itself not be bailed out.
I am really getting sick and tired of failing industry in this country, or industry that just make horrible business decisions getting the rescue of the government every time they have problems.
Submitted by Damien Hall on July 24, 2008 - 6:53am.
@Jason
I think there should be some government assistance as long as it's directed at the problem. Consumers that were taken advantage of thru unscrupulous lending practices should be helped. Lenders that made these loans should not be bailed out. I understand that the two are somewhat linked, but if the onus of the subrime debacle was put on the responsible lenders then that, in my opinion, is not only justifiable, but will also boost the economy.
The government should require some lenders to take losses by writing down the outstanding loan to a percentage of the depreciated value of the home, while modifying the terms of the loan, ie change to fixed rate, reduce interest etc. If this causes the lender to fold then so be it. The modified loan can then be transfered to a different lender. Which I think would be advantageous to the new lender.
The government has to, in some way, respond to this crisis. They can't sit idly and let the market correct itself. That will send the economy spiraling for too long.
www.TheDCInvestor.blogspot.com
Submitted by Jason Malone on July 24, 2008 - 7:25am.
@Damien
I understand where you are coming from. Even still the government should have no part in any bail out.
Submitted by Tony Spencer on July 24, 2008 - 7:43am.
I wasn't too crazy about the government bailing out lenders or borrowers that were "taken advantage of" (read : weren't responsible and bought more than they could afford). I felt that the lenders made stupid business decisions, were burned, and are just going to have to pay the price for it. But now I'm feeling that in fact the government does need to bail out these lenders to avoid a total, great depression like, meltdown of the economy.