{"id":1829,"date":"2007-08-20T22:54:02","date_gmt":"2007-08-21T05:54:02","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1829"},"modified":"2008-01-08T20:33:33","modified_gmt":"2008-01-09T03:33:33","slug":"so-if-there-has-to-be-a-bail-out","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1829\/so-if-there-has-to-be-a-bail-out\/","title":{"rendered":"So if there has to be a bail out&#8230;"},"content":{"rendered":"<p>What if <a href=\"http:\/\/www.bawldguy.com\/everybody-take-a-deep-breath-countrywide-isnt-chrysler\/\">Jeff<\/a> and <a href=\"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1810\">Brian<\/a> are right?\u00a0 What if it is preordained in the cards that a federal bail out of Countrywide is an absolute necessity and a foregone conclusion should the behemoth lender fail?\u00a0 While Jeff certainly provides a well reasoned and thrilling John Grisham version of a Countrywide rescue; why wouldn&#8217;t we look at some other (less plausible no doubt) bail out options?<\/p>\n<p>Let me say this first and foremost: I don&#8217;t support a bail out of Countrywide.\u00a0 Period. I think its a horrible idea for all the same reasons bail outs in the past have been bad ideas &#8211; they reward the wrong-doers.\u00a0 Why do we reward the Mozilos and their billions of dollars while punishing the American public? \u00a0\u00a0 If I am forced to accept a bail out, I would rather it be a bail out of the American public rather than a few rich puppeteers overlooking the pacific ocean from their posh Malibu homes.<\/p>\n<p>Here are a few outrageous ideas that probably won&#8217;t work for a million reasons, and have a shot longer than you do of being hit by an asteroid tomorrow morning; but just for fun lets float a few out there.\u00a0 My bail out options to keep from rewarding the greedmongers:<\/p>\n<p>A couple of general guidelines:<\/p>\n<ul>\n<li>Bail out options apply only to loans secured by primary residences; and maybe even just to owners of one property.<\/li>\n<li>Bail out options apply only to those loans underwritten with full income documentation (maybe stated income for self-employed borrowers)<\/li>\n<\/ul>\n<p>Bail out options for the American public (hey, if my tax money&#8217;s going to anyone, I&#8217;d rather give it to my neighbor):<\/p>\n<ul>\n<li><strong>Pre-payment waivers<\/strong>: Anyone with a prepayment penalty on their existing mortgage receives a voucher to refinance with out being penalized. This could be financed by individual lenders, Wall Street banks, or investors.<\/li>\n<li><strong>Voiding of pre-payment penalties<\/strong>: Alternatively, the government could pass legislation nullifying all pre-payment penalties allowing borrowers to refinance immediately with out paying the fees associated with the penalty.<\/li>\n<li>For those that paid a pre-payment penalty between June 2006 and today &#8211; a tax credit for the full amount of any pre-payment penalty paid <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1829\/so-if-there-has-to-be-a-bail-out\/#more-1829\" class=\"more-link\">Read more<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What if Jeff and Brian are right?\u00a0 What if it is preordained in the cards that a federal bail out of Countrywide is an absolute necessity and a foregone conclusion should the behemoth lender fail?\u00a0 While Jeff certainly provides a well reasoned and thrilling John Grisham version of a Countrywide rescue; why wouldn&#8217;t we look [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[],"class_list":{"0":"post-1829","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4721,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4721\/wachovia-fails-did-you-notice\/","url_meta":{"origin":1829,"position":0},"title":"Wachovia Fails&#8230; Did You Notice?","author":"Sean Purcell","date":"September 29, 2008","format":false,"excerpt":"Lost in the tsunami of bail-out failure, Wachovia gave up the ghost.\u00a0 Wachovia now joins Countrywide and WaMu as the big three option arm originators now become three of the biggest financial failures of all time.\u00a0 If this looks familiar to any posts you may have read here at BHB,\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1859,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1859\/voting-for-this-weeks-peoples-choice-award-is-open\/","url_meta":{"origin":1829,"position":1},"title":"Voting for this week&#8217;s People&#8217;s Choice Award is open","author":"Greg Swann","date":"August 26, 2007","format":false,"excerpt":"Another not-very-short list of posts. We set out to attract the best, and we're seeing it and then some. Vote here. These are this week's nominees:Michael Wurzer, The Future of MLS is Now Todd Carpenter, Blog traffic can be overrated David Porter, Teaching your clients how to buy a home\u2026","rel":"","context":"In &quot;Blog Carnivals&quot;","block_context":{"text":"Blog Carnivals","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blog-carnivals\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2272,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2272\/countrywide-bankruptcy-likely-not-while-the-feds-are-bailing-them-out\/","url_meta":{"origin":1829,"position":2},"title":"Countrywide Bankruptcy Likely?  Not While the Feds Are Bailing Them Out","author":"Brian Brady","date":"November 27, 2007","format":false,"excerpt":"I'm a Countrywide watcher. It's size and reach in mortgage loan origination is worthy of any mortgage originator's respect and admiration. I had a lot of confidence in Countrywide as it marched to becoming America's largest originator of home loans. I liked 'em so much that I had a piece\u2026","rel":"","context":"In &quot;Investment&quot;","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3071,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3071\/twitter-as-good-as-bail-money\/","url_meta":{"origin":1829,"position":3},"title":"Twitter &#8211; as good as bail money?","author":"Eric Blackwell","date":"May 8, 2008","format":false,"excerpt":"This is going to be a really short post. I keep on promising Teri Lussier that I am going to get some serious Twittering going on in our brokerage. Truthfully, I have been too busy on all of my projects like the contest and the industry newspaper to get there.\u2026","rel":"","context":"In &quot;Real Estate&quot;","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10206,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10206\/cit-fed-bk\/","url_meta":{"origin":1829,"position":4},"title":"CIT + FED = BK","author":"Sean Purcell","date":"November 2, 2009","format":false,"excerpt":"A few months back, as part of a Tin Foil Hat Production, I mentioned CIT's desperate need for funds and the Fed's decision not to bail them out. Why is this noteworthy? After all, I don't believe the Fed should bail anybody out.\u00a0 I cheer wildly to see Ford record\u2026","rel":"","context":"In &quot;Big Mother&quot;","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1985,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1985\/the-odysseus-medal-competition-the-long-list\/","url_meta":{"origin":1829,"position":5},"title":"The Odysseus Medal competition &#8212; The long list","author":"Greg Swann","date":"September 30, 2007","format":false,"excerpt":"We had a lot of news this week, some tragic, some comical. All of it and then some is represented here. This is \"the long list\" -- the total list of nominees that made the cut to be considered for the short list, the nominees available for voting for The\u2026","rel":"","context":"In &quot;Blog Carnivals&quot;","block_context":{"text":"Blog Carnivals","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blog-carnivals\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=1829"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1829\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}