{"id":3052,"date":"2008-05-03T21:52:10","date_gmt":"2008-05-04T04:52:10","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=3052"},"modified":"2008-05-03T21:52:10","modified_gmt":"2008-05-04T04:52:10","slug":"hr-5830-here-comes-the-bailout-act-of-2008","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3052\/hr-5830-here-comes-the-bailout-act-of-2008\/","title":{"rendered":"HR 5830: Here Comes The Bailout Act of 2008"},"content":{"rendered":"

The best thing about being suspicious of politicians is that you learn how they think.\u00a0 I actually think this is a GOOD idea.\u00a0 Libertarians will hate it but I think this bill has merit.<\/p>\n

Remember my Bailout Post<\/a>, in March?<\/p>\n

I have a little idea about how to save the American real estate market.<\/em><\/strong><\/p>\n

Let\u2019s start with the premise that lenders are taking 20-30% hits on short sales. Then, let\u2019s have the US Treasury loan 30% of the balance, of the aggregate debt, to homeowners whom request it, in order to pay down the first mortgage (or second mortgage). If I have $200,000, in aggregate liens against the property, the US Treasury will lend me $60,000, to pay down those aggregate liens, to $140,000. This reduces the lenders exposure.<\/em><\/p>\n

What type of loan will the Treasury make to homeowners?<\/em><\/strong><\/p>\n

The term can be for the lesser of:<\/em><\/p>\n

1- the remaining term of the first mortgage<\/em><\/p>\n

2- 65 less the age of the primary borrower.<\/em><\/p>\n

The interest rate can be the corresponding term treasury rate, plus .5% (for administrative costs). Maybe we can use some of that \u201cyield spread\u201d to coerce a few mortgage brokers to \u201coriginate\u201d this government debt (okay, that was completely self-serving). For a 42 year old, with a 27 year term on his first mortgage, the term of this new government loan (in second position) would be 23 years (65-42=23). If a 23 year <\/em>treasury bond yields 4.1%<\/em><\/font><\/a>, than the note rate for the new loan will be 4.6%.<\/em><\/p><\/blockquote>\n

Well, maybe the <\/em>Members of Congress are reading Bloodhound Blog; it wouldn’t be the first time that happened.\u00a0 Bryant Tutas reports on HR 5830<\/a>, on Active Rain:<\/p>\n

\n

From what I’ve read<\/strong>, and understand, this Bill will give distressed Homeowners an opportunity to refinance with FHA at 90% of value IF their current Lender will agree to a short payment.<\/em><\/p>\n

One of the caveats<\/strong> is that the FHA will own a piece of the action. When the borrower sells they will either pay, from any profits, a 3% exit fee (a percentage of the original loan amount) to the FHA or a declining percentage of any net proceeds, attributed to appreciation, Read more<\/a><\/em><\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

The best thing about being suspicious of politicians is that you learn how they think.\u00a0 I actually think this is a GOOD idea.\u00a0 Libertarians will hate it but I think this bill has merit. Remember my Bailout Post, in March? I have a little idea about how to save the American real estate market. Let\u2019s […]<\/p>\n","protected":false},"author":15,"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":[26,5],"tags":[],"class_list":{"0":"post-3052","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2831,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2831\/the-real-estate-bailout-act-of-2008\/","url_meta":{"origin":3052,"position":0},"title":"The Real Estate Bailout Act of 2008","author":"Brian Brady","date":"March 24, 2008","format":false,"excerpt":"When successful financiers achieve a certain level of success, they up the ante and practice social engineering. Robert Rubin, Jon Corzine, and Hank Paulson\u00a0 advanced to government service after piling up the pesos at Goldman Sachs (in financial circles, we say those two words with hushed reverence). After decades of\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17011,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17011\/cant-refinance-because-your-income-dropped-help-may-be-on-the-way\/","url_meta":{"origin":3052,"position":1},"title":"Can\u2019t refinance because your income dropped? Help may be on the way.","author":"Brian Brady","date":"September 14, 2020","format":false,"excerpt":"Last week, Freddie Mac published their Mortgage Market Survey, showing that the average rate, for conforming mortgage loans originated, was under 3%.\u00a0 The company who performed the survey (Black Knight), figures that there are close to 20 million homeowners who can refinance now: The company says there are now 19.3\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/09\/scott-graham-OQMZwNd3ThU-unsplash-480x320.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4588,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4588\/wall-street-bailout-plan-to-include-more-than-bad-mortgage-debt-feds-to-absorb-unpaid-bar-bets-inadvertently-laundered-postage-stamps-unredeemed-soda-cans-and-insufficient-tooth-fairy-disbursements\/","url_meta":{"origin":3052,"position":2},"title":"Wall Street bailout plan to include more than bad mortgage debt: Feds to absorb unpaid bar bets, inadvertently laundered postage stamps, unredeemed soda cans and insufficient tooth-fairy disbursements","author":"Greg Swann","date":"September 22, 2008","format":false,"excerpt":"Totally absurd? Think twice:In the dark of night over the weekend when most people were snoozing, the Treasury dramatically expanded its bailout plan to include buying student loans, car loans, credit card debt and any other \"troubled\" assets held by banks. The changes, which were included in draft language that\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":12853,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12853\/the-line-for-food-stamps-is-over-there-this-is-the-line-for-deficit-funded-mortgage-bailouts\/","url_meta":{"origin":3052,"position":3},"title":"The line for food stamps is over there. This is the line for deficit-funded mortgage bailouts.","author":"Greg Swann","date":"August 5, 2010","format":false,"excerpt":"James Pethokoukis at Reuters:Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4858,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4858\/will-mortgage-brokers-be-the-hope-for-homeowners\/","url_meta":{"origin":3052,"position":4},"title":"Will Mortgage Brokers Be the Hope For Homeowners?","author":"Brian Brady","date":"October 8, 2008","format":false,"excerpt":"The FHA Hope For Homeowners program was designed for existing homeowners, struggling with mortgage payments and an \"upside-down\" equity position in their primary residence.\u00a0 It is a new program with lots of misinformation.\u00a0 Some believe it can only be offered by existing loan servicers, some think only participating lender\/servicers can\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2251,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2251\/california-sub-prime-bailout-rewarding-the-feckless\/","url_meta":{"origin":3052,"position":5},"title":"California Sub-Prime Bailout: Rewarding the Feckless","author":"Brian Brady","date":"November 23, 2007","format":false,"excerpt":"Governor Schwarzenneger brokered a bailout for California sub-prime borrowers with four major servicers: Countrywide, GMAC, Litton and HomeEq - which collectively service more than one quarter of subprime loans to people with poor credit - agreed to maintain the initial, lower interest rate for some subprime borrowers whose rates are\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3052","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\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=3052"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3052\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=3052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=3052"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=3052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}