Treasury wants to drive mortgage rates to 4.5%

mortgagemess at 20:16 2008-12-04 said:

Again the fed wants to put a finger in the dam. Paulso made a big mistake when he asked, no sorry, begged for the bailout money to GIVE AWAY to the banks. They ask for it and he gave it to them with no CONTINGENCIES.

Bringing down mortgage rates to 4.5% is great, except that credit standards are SO tight in an already stressed economy that many Americans simply will not qualify due to credit and changes in income. So how does lowering to 4.5% help the average homeowner who needs to refi? Simply it doesn't. When Paulson decided to give away Americas hard earned tax dollars, he should have told the banks, you want the money you MUST PROVE to the US goverment and taxpayers that you are modifying loans and trying to keep people in their homes. These lenders made the loans possible with their own greed and lack of oversight. The lenders were to be the law..the judges of lending. Where consumers went for guidance to find out what they could "afford" as a mortgage. Can you imagine Rockerfeller today? He is rolling in the grave.

Now some may argue why should we bailout someone who bought more than they could afford? Simple. Our communities and economy cannot afford to continue having this slide downward. Today, everyone of us knows someone who has lost a job, seen a business go out, and have retirement funds being ruined. That will continue to manifest itself as this "contained" crisis eats away at the every part of our economic fiber as well as the world. The world bought our debt at a certain level expecting a certain return, with each and everyday that debt becomes more and more worthless and the return on it a unknown factor.

Go ahead and lower the rates, FED, let me know how that (doesn't) work for you. Permalink

MortgageDrummer at 00:30 2008-12-05 said:

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We know now that "Oh yah what were you guys going to do with the money we gave you from the tax payers?" All of the sudden we have to make sure the car makers show us!! What kind of transportation did the banks come in on? Why are we all of the sudden asking the auto makers. . "Oh yah Paulson, Frank, Dodd, Cox are all related to the banks" I'm from Michigan originally and I do believe the CEO's were asleep at the wheel and now the poor auto workers are having to pay for this! They have taken down a whole industry. However, the big banks are taking down a whole industry too! Real estate, mortgage companies, builders, title companies! We also have 25 year veterans in our industry losing their profession, not just our job but our profession!!!! Who is going to bail us out? Why doesn't the Feds bring in some top notch mortgage professionals to help them figure this out? They don't know what the H***** they are doing?? Is our industry the only one who sees this?? :x Permalink