Comments on: More U.S. mortgage help isn’t needed Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 By: JNMNS Fri, 02 Sep 2011 03:30:20 +0000 Ms. Crane,

The HAMP program, despite all it’s publicity, is NOT a program intended to help homeowners. It is intended to help INVESTORS in mortgage backed securities. If it’s really intended to help homeowners how can you explain the fact that it categorically excludes homeowners with equity. (see FDIC HAMP Guidelines, page 3, and read the somewhat cryptic language about cash flow carefully.)

HAMP excludes the very homeowners least likely to re-default… those with equity. (See stats on the HOLC included in the December 2010 Congressional Oversight Panel Report).

Homeowners with equity are the “low hanging fruit” of any legitimate program intended to help homeowners.

Saying that the housing market will eventually recover on it’s own is to ignore the pain that has been brought upon so many American’s by the banks’ massive fraud.

I’d like to be the doctor treating you if you came in with an excruciating migraine! I’d surely tell you, it will stop on it’s own eventually… no pain killers for you! (just making a point)

A legitimate program to help homeowners, like the HOLC of the 1930’s COULD really help many more homeowners. Consider that the HOLC actually went and knocked on homeowners doors trying to help them save their homes! (Goes to intent, not efficiency).

Instead we allow the banks to deny those with equity, and refuse to take write-downs on underwater homes, selling those same homes at auction for far less than the write-down value. Does this make sense?

By: lotuslandjoe Thu, 01 Sep 2011 21:50:32 +0000 Consumers make up 70% of GDP
There are millions of underwater mortgages
This is a balance sheet recession caused by the housing price crash
House prices are far below the principle balances on millions of homes
The longer that this inequity goes unaddressed, the longer the recession will last.
This article does not offer a solution to the problem
Here’s one: write down the principle of all mortgages that are underwater to current fair market value. Make the whole banking system pay for the write downs out of future profits until the full write down amount has been repaid.