President Bush threatens to veto the bill! ... (why am I not surprissed?)
White House threat of VETO yesterday June 19t. 2008 when a bipartisan coalition beat back GOP with the proposal of a massive foreclosure rescue.
"It's baffling why the White House would oppose a bill that would help so many American families at risk of losing their homes on the same day hundreds of mortgage fraud arrests were announced," said Barack Obama, the presumptive Democratic presidential nominee.
The latest -Countrywide's VIP program- big controversy couldn't come at the worse time... right in the middle of fiery debates in Congress about mortgage crises. While millions of average Joe are losing their home in foreclosure, (whom most mortgages are through Countrywide) the White House and politicians on the hill are playing politics as usual!...
Using a new strategy to delay a bill who would of rescued millions of innocent homeowners (who are struggling to repay their mortgage debts while coping with $4 per gallon gasoline and soaring foods prices), is just not right. To learn that some members of Congress may have personally profited from their official positions through secret sweetheart deals on their mortgages (same Countrywide lender), is a slap on the face for those who played by the rules who would deserve to be rescued from the mortgage mess.
- Recommend reading >>> The Hypocrisy of all... Countrywide's Sweet Deals! Who gets Them?
Foreclosure Rescue... or Political Game??? NOT AGAIN!
- Recommend you a good reading >>> "The House opposes proposed legislation's $4 billion to help states purchase foreclosed properties with Fannie and Freddie footing the bill." on CNNMoney.com
Administration officials said they oppose the inclusion of $4 billion in the measure to help states buy and rehabilitate foreclosed properties, and a plan to have government-sponsored mortgage giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) pay for the rescue.
I had to mention these series of events as I find very troubling and worries some... It has a direct impact in the Real Estate industry and our work with clients who struggle in this market.
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U P D A T E
I'll post here Update(s) on the subject from the Press and your Comments.
What's your take on this?
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A Reality check! Let's recap the latest events that put our economy to task... I recommend to read only few of these articles ...
- Former Bear Stearns managers charged over fund losses. Read more >>> Housing crisis brings Wall St arrests, veto threat
- Federal authorities announce crackdown on mortgage fraud. Read more >>> Mortgage fraud crackdown looms.
- White House threatens veto of housing rescue. Read more >>>White House threatens veto of FHA-rescue bill
Bear managers charged, crackdown on mortgage fraud. The U.S. housing crisis produced its first high-profile Wall Street arrests on Thursday... Two former managers for Bear Stearns Cos Inc., itself a recent victim of bad bets on mortgage securities, were arrested and indicted on securities fraud charges in New York in connection with the $1.4 billion collapse of two hedge funds.
As mortgage fraud has boomed, it has become more sophisticated, authorities have said, and investigators have begun targeting prolific crews.... Those arrested this week in the latest case include brokers and appraisers, sources said.
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Arina- There should be no government bail outs for homeowners who have flipped properties or used their homes as ATM machines. Government does not know how to spend our money wisely. The blame game is old. When you are pointing one finger at someone else, there are four of your fingers pointing back at you. This society has become one of blame and entitlement problems. Those who want government bailouts should move to Europe. See how they like it there. Leave us capitalists here and preserve our free market. The free market system is the only one that works for economies and the only one that preserves the human spirit. Look at the reasons Bush is going to veto it, read the bill! It is a bunch of bailouts for the lenders NOT for the people!
Arina, I don't know this issue as well as others to comment on it. Some say the government should do "something" to assist people in not going into foreclosure while others say the government should stay hands off. A lot of individual mortgage folks were being linked to fraud with the loans they provided but the large companies themselves have not been held accountable in this area yet, other than the huge losses they took. I know you feel bad for the average Joe out there though, with him and his family being thrown out of their houses.
Nestor & Katerina I respect your opinion... But! If Capitalism is what we just recently learned from -Countrywide's VIP program- and the Congress members involvement... than I submit to you that capitalism is not that innocent...
Yes, I agree : " There should be no government bail outs for homeowners who have flipped properties... " as I am sure that the is not going to be a blanket policy and mortgages are going to be scrutinized against potential fraud.
And as for those who used their homes as ATM machines... I have no clear response. The "home equity" is a basic component of real estate transaction and is the whole purpose for buying properties... Who would ever buy if "home equity" is only a notion.
As for Europe... at the moment they smile at our economy!... So far our capitalist free market is a mess.
Gary, I don't know much either and I don't like when people inject politics or empty rhetoric's... Facts are facts! and in my opinion when a system screwed the average Joe the way recent housing crises did... we should leave politics and rhetoric aside and DO SOMETHING. And Congress and White House play games.
Also as you said; "A lot of individual mortgage folks were being linked to fraud with the loans they provided"... You are right about that but the average Joe is left in the streets for the greed of others... It is a big mess and I am not smart enough to put all together but I think that in a situation like this smart, honest, dedicated people on the Capital Hill could resolve it!
So now they have to raise our taxes to cover this mess. There are people who work hard and pay their mortgage payment on time. Why should others pay for this mess?
Reality check! Let's recap the latest events that put our economy to task... I recommend to read only few of these articles ...
Bear managers charged, crackdown on mortgage fraud. The U.S. housing crisis produced its first high-profile Wall Street arrests on Thursday... Two former managers for Bear Stearns Cos Inc., itself a recent victim of bad bets on mortgage securities, were arrested and indicted on securities fraud charges in New York in connection with the $1.4 billion collapse of two hedge funds.
As mortgage fraud has boomed, it has become more sophisticated, authorities have said, and investigators have begun targeting prolific crews.... Those arrested this week in the latest case include brokers and appraisers, sources said.
It is a hot topic and you are right. These are the facts and we all know so well what that all means. Don't expect to many comments as people have the tendency to stay away from hot topics with political outlook... but hey! Why not!... could be an intelligent, controversial conversation.
Interesting. Sounds ironic after getting a rebate on our taxes just two months ago. Are we seriously going to help the American people through a trying economy or just play politics. However, the president has to realize he will be losing more votes for his party by not providing them relief fromt his bill.
Arina, Capitalism is what makes you and I able to make whatever amount of money we choose to make, it is what makes the immigrants line up to come to our country.
I don't see people lining up and sneaking into Venezuela and Cuba!
It is what makes the Vietnamese families I know and love work 3 jobs, put all their kids through college and become whatever they desire to become. The movie, The pursuit of happiness, is a testimant of what capitalism is all about.
In almost all other countries if you are born poor, you die poor. Here if you are born poor you can still be whatever you want to be and get rich.
My family came from Latvia. They were rich in Latvia. But Stalin did not believe in Capitalism, well, I take that back, he believed in it for himself but not for his people. He had my family put on his hit list, because 'rich' was bad. I see his failed communist and marxist experiment did really well there! NOT!
If you do not have capitalism, then you have socialism. Are you proposing that Socialism is the better alternative and would be devoid of fraud? Do you think there is no fraud in Europe? Have you ever lived there? I have. I know what it is like to only get to take a shower once a week in France because the price of WATER is SO Expensive! The streets in Italy stink like urine and there is sewage in the romatic waterways of Venice.
This is why people are lining up to come to our country. For the Capalist Opportunity. They kiss the ground they step on when they arrive in the US while people here who have no idea how great it is compared to everywhere else spit on the very same ground.
Of course there need to be controls set in place to prevent this type of mortgage fraud from happening or at least to curtail it. That is why we have laws. But to believe that this bill is going to stop any of that and is really going to help anyone other than those companies themselves is naive. That is why President Bush needs to veto this bill unless they take out of it all the bull crap protections for the lenders. This bill is only a ploy to get us to think that congress is thinking about us. They don't think about us, they think about themselves.
BTW- Living in Las Vegas as you do- You are only there in Las Vegas with houses built in the desert because of the original casinos that were built there, Because of Capitalism. Now, I don't gamble and I don't drink, but I still honor their right to make money in any way they want to.
Arina - I don't agree the bail-out is the right thing. If there is a bail-out there should be a strict guideline for evaluating special circumstances. Some people who have been corupt or irresponsible will get off too easy. While many need it, others should be forced to face the consequences.