I wrote this last week and am going to post this in all 50 states to garner maximum exposure. I fear for the future of this country in the wake of the"super committee" failure. If Congress and the President can't get something like that right then there is NO way they can possibly "fix" the housing market. Please feel free to re post if you agree with that I say. Maybe send to a member of Congress?
Full Disclosure. I am a card carrying member of the Republican Party and did not and will not vote for President Obama. I have no problem giving the President credit when he has a good idea and does the right thing. I want him to do well and succeed. Things as a whole will improve for the nation and I love this country more than a political party.
However the President's "plan" for underwater mortgages is incredibly lacking in urgency, details and a true sense of what the problem even is let alone how to fix it.
When we needed true leadership we received a speech in Las Vegas that was long on promises but short on well everything else.
This week we FINALLY had at least an outline of the new and improved "plan"
We can't even take applications for it until December 1 and if you are underwater by at least 125% then you can't deliver the loans to Fannie until MARCH of 2012.
Mr. President, people are hurting NOW. Giving a speech in October and offering even a sliver of help until March is 5 syallbles and one word. UNACCEPTABLE.
The reason for the delay is embarrasing to our political system that aids and abets Fannie as well as Fannie themselves. They need to reprogram the computer basically to say it's OK to accept over 125% This is in the instructions themselves as to the reason why. First off I'm guessing a simple computer fix. Secondly all Fannie needs to say is "casefile will read ineligible but if LTV is sole reason then acceptable". This has been done on confirming jumbo loans until the software was fixed.
Either way to me this is unacceptable.
Not to mention no word on appraisals as to whether they are needed. How can you not address something that simple?
If it's left to Congress and the White House and the same groups and organizations like Fannie and Freddie to get us out of the mess then folks we have a long hard road ahead of us. Until the housing market leads the way for a national economic recovery we will sit idle for far too long of a time. Our homes are our most treasured possession and the most expensive item any of us will ever purchase. People won't feel wealthy and spend until they feel their home is on safe ground. This is a crisis of confidence that is depressing consumer spending.
If you agree call Congress and urge them to revamp the "plan" 202-225-3121 is the Capitol switchboard