Thread: Hillary and Bush agree: Government should bail out homeowner

NO BAILOUT

Because they had no legitimate buyers, rules were changed to allow these companies to give loans to people they knew could not pay for them. A bailout by the taxpayers? No! A better idea would be for the mortgage companies to be prosecuted for defrauding the buyers.

The plan envisions freezing the introductory rates to keep them from resetting to higher levels for a number of years.

This is outrageous IMHO! How low were the introductory (teaser) rates that will be frozen for these high risk folks, 4-5%... or perhaps even less? Meanwhile, I haven't EVER been so much as a day late paying my mortgage since we bought our home 7 years ago. We are paying 8.75% fixed rate interest, despite having paid 20% down, because of our lack of established credit at the time (not BAD credit). Trying to find someone willing to refinace for a lower interest rate only (without "borrowing" equity) seems to be impossible nowadays.

It burns me to think that, if this bailout occurs, I would have been better off had I been "suckered" into an adjustable rate mortgage.

Originally Posted by greyparrot

The plan envisions freezing the introductory rates to keep them from resetting to higher levels for a number of years.

This is outrageous IMHO! How low were the introductory (teaser) rates that will be frozen for these high risk folks, 4-5%... or perhaps even less? Meanwhile, I haven't EVER been so much as a day late paying my mortgage since we bought our home 7 years ago. We are paying 8.75% fixed rate interest, despite having paid 20% down, because of our lack of established credit at the time (not BAD credit). Trying to find someone willing to refinace for a lower interest rate only (without "borrowing" equity) seems to be impossible nowadays.

It burns me to think that, if this bailout occurs, I would have been better off had I been "suckered" into an adjustable rate mortgage.

greyparrot maybe you should consider refinancing now while the interest rate is some where around 6 per cent, you can check the rate daily but that would be alot of saving, I got a 5 and 3/4 two years ago. but 2 and 3/4 percent would lower your house payment alot.

Nex year is an ELECTION YEAR! Why else are they coming up with more smoke and mirrors! Wall Street and our crooked politicians all know that there is a blood bath coming next year with all the sub-prime resets; therefore, they have to stick a bandaid on the wound!

This so-called bail-out is just a deferment for "two to five years"! And it's only for those who have a good payment history and might not be able to afford the reset prices.

Bush & Co. specifically targeted hispanics...legal and illegal..for the housing boom of the past 5 years! All of the commercials for banks and lenders featured HISPANICS being able to afford the "American Dream"!!!

The Federal regulators turned a blind eye to all of the shennanigans going on in the mortgage industry; Greenspan made the most stupid remark of all a few months ago...he said he "didn't see the sub=prime fiasco coming"!!! My foot!!! He deliberately kept interest rates down for years in order for all of the lenders to make their killing and for everyone who should not even be thinking about buying a home...to buy a home! There were no docs and no stated income loans whereby anyone could lie and get a loan!

It's not fair that those of us who work hard to have to pay for millions of free-loaders who came here with nothing, bought houses, and walked away without a scratch! Same with credit cards: B of A issued credit cards to millions of illegals knowing full well that they could just max them out and walk away! But they did it anyway!

The U.S. is becoming a kleptocracy!!!

These loans are sliced up and tranched into MBS and CDO. They don't even know who owns the securities. The only ones that can renegotiated are the loans the banks still hold in a traditional since which amounts to about 2%. There is nothing to see here except a sideshow... and desperation. What should concern you more is not the "bailout" but the signs of desperation in the gov and the fed.

Rate cuts
Super SIV bank bailout
Lowered reserve requirements
Sub-prime "bailout"

It points to only one thing... credit deflation. See 1929. If you know anyone who lived through it ask them about it.

I saw this in yesterday's paper. If you read further down in the article the west is really getting hit with bad loans. It is not Coincidence that Utah, Califiornia, Arizonia and the Nevada banking industries are in trouble. This is what you get when you decide that the Consitution is not worth following. These banks have no one to blame but themselves. I have a feeling that all along the government was telling them that the illegal's are here to stay. We have fooled them haven't we. What goes around comes around.

http://www.sltrib.com//ci_7607084?IADID ... sltrib.com

No escape
Zions Bancorp's shares erode in value as it succumbs to bad loans
By Steven Oberbeck
The Salt Lake Tribune
Article Last Updated: 11/30/2007 11:33:42 PM MST


With a solid balance sheet and strong earnings, Utah's Zions Bancorp has long enjoyed a stellar share price that reflected its status as the premier regional bank holding company in the booming Intermountain West.
Yet since hitting a high of $87.56 in mid-February, Zions shares have lost 38 percent of their value as the company fell victim to the same problems of bad loans and eroding asset quality that in recent months have plagued financial institutions nationwide.
"Zions' shares have gotten hit pretty hard because of concerns about its presence in states such as California, Arizona and Nevada, where the real estate and home-building markets have been going through a significant downturn," said Barbara Walchli, who manages the Phoenix-based Aquilla Rocky Mountain Equity Fund that counts Zions shares among its holdings.
Walchli pointed out, however, that unlike some banks, Zions kept a close watch on its risk and the quality of the loans in those markets. As a result, it doesn't have nearly the exposure as some of its competitors.
Still, like most other financial institutions, Zions is caught up in a cyclical downturn in the banking industry that has sent share prices tumbling at many of the country's leading financial institutions.
Washington Mutual's shares, for example, are down 57 percent from its February 2007 high. Wells Fargo shares
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are off 13 percent, although they were down as much as 22 percent last month. And the shares of Key Corp. are down 34 percent from their high earlier this year.
"We've been pretty much in line with other banks that operate in the West and Southwest," said Clark Hinckley, who oversees shareholder relations at Zions. "Some [share prices] have been hit a little more than we have, and some less."
Hinckley pointed out that Zions suspended its stock buyback program in August determining that "in this type of an environment it was prudent to preserve capital. At the same time, it would make sense that we'd want to buy back our shares at these prices."
Securities analyst Anthony Davis at Stifel, Nicholas & Co. said in a report issued Friday that, as is the case throughout the banking industry, Zions' most significant near-term earning challenge is eroding asset quality.
"While we continue to believe [loan] underwriting at Zions has remained disciplined, it is our opinion that overall erosion in property values, particularly in several of Zions' Southwestern U.S. markets, will result in higher credit [or loan] costs for the bank," he said.
Zions, however, has no subprime loans on its books and the home equity loan portion of its portfolio - $1.9 billion or 5 percent of total loans - has an average loan-to-home equity ratio of 61 percent, with borrowers maintaining an average credit score of 757, which is an excellent rating, Davis pointed out.
Morningstar analyst Ryan Lentell noted that in September, Zions said it was most concerned about lending in the Arizona market, where it was seeing appraisals on land coming down about 30 percent from their peak.
"Zions' loan/value in land development, and acquisition loans at its subsidiary in Arizona - the National Bank of Arizona - is only 48 percent, which provides some comfort. That said, Zions has its largest concentration of residential construction lending in Arizona - about 26 percent of the category. Therefore, the decline in the state will be an area to watch closely," he said.
Over the long term, though, Davis said Zions remains well positioned because it operates in some of the most demographically attractive markets in the country. "We think that when investor sentiment turns and bank stocks once again begin to reflect longer-term fundamental prospects, Zions will be a favored issue."
The Salt Lake City-based Zions Bancorp is the parent company of Utah's Zions First National Bank but also operates seven other regional banking subsidiaries in 10 Western states. Combined, those banks operate some 450 branches and more than 600 automatic teller machines.

These people went into these homes with zero down.....they are NOT losing anything except that they have to move back into an apartment....I am against bailing them out......have some common sense...when I got my first mortgage back in 96 I went to a bank....not mortgage company....the only thing I knew was that I wanted a FIXED rate and no prepayment penalty and that's what I got....when I first got it it was 8.5%...that was part of my budget.....got it refinanced several years later for 5.6%....but continued to make the 8.5% payments....cause that was already in my budget.....it is awesome to see the loan amount come down a lot each and every month you do that...

Originally Posted by grandmasmad

These people went into these homes with zero down.....they are NOT losing anything except that they have to move back into an apartment....I am against bailing them out......have some common sense...when I got my first mortgage back in 96 I went to a bank....not mortgage company....the only thing I knew was that I wanted a FIXED rate and no prepayment penalty and that's what I got....when I first got it it was 8.5%...that was part of my budget.....got it refinanced several years later for 5.6%....but continued to make the 8.5% payments....cause that was already in my budget.....it is awesome to see the loan amount come down a lot each and every month you do that...

We did the same thing...twenty years ago bought our home and the mortgage was through our bank. There was no such thing as a 'mortgage broker'...only real estate brokers. It was so simple - 30 year fixed and that was it! I can't understand why we have all of these 'mortgage brokers' touting 300 different products! Either you can afford and qualify to buy a home ....or you CAN'T! Period!

I repeat...this government is becoming a kleptocracy!

PLEASE PLEASE PLEASE

Do not fall for the idea that this is a bailout for the poor homeowner duped by ruthless lenders. Do some research. This is clearly a bailout of the financial system and the dollar which are teetering on the brink of disaster. Goldman Sachs and the like are the ones who will benefit from this plan, make no mistake about it.

UB

What on earth do they think is going to happen when we send back these illegal's that have bought homes and tons and tons of cars? The banks and finance companies giving these people money are going to go belly up. The best thing for an american citizen to do at this point is to pull your money out of bank that caters to illegal's and move it in to one that does not do business with them.
The banks doing business the honest way will be the ones left standing.
You are right that all Bush is doing is trying to save the banks from going under. His illegal immigration plan is going to h*** in a handbasket.
As for the finance companies and the cars they have financed for illegals? Well good luck to you because they are going to be driving the puppies home and across the border for you to never see again.