Senate passes mortgage rescue plan

NF Reporter · 07-11-2008, 08:48 PM

AP - A mortgage rescue to help hundreds of thousands of struggling homeowners avoid foreclosure and get more affordable, safer loans passed the Senate overwhelmingly Friday, but it faces a bumpy road amid continuing turmoil in the housing market.

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waltky · 08-07-2008, 09:05 PM

Will it be enough?...

Foreclosure crisis: The $4 billion fix
August 7, 2008: Washington will give funds to states and cities to rehab houses. Proponents say it will help stabilize neighborhoods, but others say it's too little to do much good.

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City officials and community activists can't wait to get their hands on nearly $4 billion the federal government is about to inject into blighted neighborhoods suffering from record foreclosures. Opponents of the measure say the paltry sum won't do much good considering the number of vacant homes on the market - one million families are expected to lose their homes this year - and will more likely turn into a political boondoggle.

It remains to be seen which side is right. But the program - part of the massive housing rescue bill Bush enacted last month despite his own misgivings - will serve as one test of Washington's ability to mitigate the foreclosure crisis. The U.S. Department of Housing and Urban Development is expected in late September to come up with a formula for how to distribute $3.92 billion to states and cities nationwide to turn foreclosed property to affordable housing for sale or rent.

The funds are intended to help communities deal with the flood of vacant homes, which drain public resources and drag down property values of neighboring houses. "This money will help get neighborhoods hard hit by foreclosures back on their feet again," said Jeff Falcusan, policy advisor for the National Association of Housing and Redevelopment Officials, a trade group.

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waltky · 08-28-2008, 12:03 AM

Mortgage relief backfires...

Housing fix backfires
August 27, 2008: A new law was supposed to make it easier for buyers in expensive markets to get affordable loans. Instead, rates are going up for everyone.

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Back in February, Congress passed into law a quick fix for the housing market. Unfortunately, it hasn't done much good. As part of the economic stimulus plan, lawmakers raised the limit on the size of home loans mortgage giants Fannie Mae and Freddie Mac can guarantee, from $417,000 to as high as $729,750 in some of the most expensive U.S. markets. That was supposed to bring down mortgage rates on jumbo loans and help goose sales in cities across the country - mostly on the East and West coasts - where even outhouses go for close to half a mil.

So just how much help has this change been for homeowners? Not much. Six months ago, the rate on a $500,000 30-year fixed mortgage was 6.73%. Today the rate today is only slightly lower at 6.69%. No surprise then that the housing market is still stuck in reverse.

The problem has a lot to do with news that has been bedeviling Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500). Basically, the mortgage giants have been racking up losses faster than Brangelina's adding children. And the market grows more convinced every day that these two so-called government-sponsored entities will in fact need to bailed out with taxpayer funds, according to a plan recently proposed by Treasury Secretary Henry Paulson and passed into law by Congress.

The catch

waltky · 09-09-2008, 06:49 AM

Fearless W says is all Congress' fault...

White House Blames Congress for Mortgage Takeover
Monday, September 08, 2008 Washington - The White House says that the giant federal takeover of troubled mortgage giants Fannie Mae and Freddie Mac could have been prevented if Congress had acted on its recommendations.

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White House press secretary Dana Perino told reporters Monday that President Bush believes the move will help the housing market recover. Perino said the economy as a whole will not return to strong job growth without an end to the current housing correction.

The White House says the takeover will allow time for Congress and the next administration to determine the appropriate future role for the companies. Perino said this must include reforms, and a change in the companies' primary mission to increasing the availability and affordability of home mortgages.

CNSNews.com - White House Blames Congress for Mortgage Takeover

waltky · 12-03-2008, 10:54 PM

Foreclosure rescue too late for some...

Skeleton found in foreclosed home
December 04, 2008 - POLICE investigating a foreclosed Los Angeles house found the skeleton of an elderly woman, apparently dead for two years, who had lived there with her son.

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Coroner's officials said they were trying to identify the woman they believe was Barbara Hunt, who would have been 86. Media reports said the woman's son, Robert Hunt, 48, was at the home in North Hollywood when police arrived but had not been taken into custody.

Los Angeles County Coroner's spokesman Craig Harvey said the woman's remains were found in the bed in a back room and that the deterioration of the body made it difficult to determine cause of death. He said the woman was believed to have died in 2006. Authorities went to the home on Monday evening after a mortgage broker notified them that it would revert to a bank at midnight after going through foreclosure.

The LA Daily News reported on its website that police found Mr Hunt living at the rubbish-filled home with 26 cats, three possums and a raccoon. California has been hit hard by the national wave of foreclosures - when mortgage lenders repossess homes because buyers cannot meet their payments - following a slump in the US housing market and the credit market crunch.

Skeleton found in foreclosed Los Angeles home | World Breaking News | News.com.au

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Credit crunch led to man's suicide
December 04, 2008 - A NEW Zealand-born financier who threw himself under a train as the credit crunch worsened had spoken of committing suicide when the banking system started to collapse, an inquest has heard.

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Kirk Stephenson, a 47-year-old chief operating officer at private equity firm Olivant, died instantly when he was hit by a train at Taplow station in Buckinghamshire, west of London, on September 25. Mr Stephenson, who was also known as Ross to those close to him, arrived in London in 1983. He had earned more than £300,000 ($688,000) a year and lived in London's exclusive Chelsea district with wife Karina Robinson and their eight-year-old son.

A statement from Ms Robinson was read to the inquest into his death at Amersham Coroners Court, British media reported on Wednesday. "When the banking system started to collapse, Ross became very tense and worried about a lot of things he had worked hard for," the statement said. "He was slowly getting more worried and on Monday 22 September, he came home for dinner. "He looked very stressed and mentioned the thought of killing himself over the credit crunch but he couldn't do it because he loved me and the child too much."

Ms Robinson said her husband left for work as usual on the day he died and nothing in his manner gave her cause for concern. A jury returned a verdict of suicide. Coroner Richard Hulett said: "We all know about the dire events which have overtaken public and private finance and made headlines on a day-to-day basis ... these developments made a substantial impact on his attitude to life and financial welfare. "It appears these were very real risks that were now threatening him and his family's lifestyle."

http://www.news.com.au/story/0,27574...-23109,00.html