|
| |
| SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS
| SCREW AMERICA
User ID: 472288
7/23/2008 1:53 PM
Report abusive post | SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS
| Quote |
Here are the highlights:
* This will authorize an UNLIMITED line of credit for Fannie and Freddie over the next 18 months.
* Authorize 300 billion in new FHA insured funding for people upside down. It sounds like it would require lenders to write down the current loan to 90% of the current appraised value, require lenders to pay FHA 3% of the current appraised value, and the govt would take any profits realized from the sale of the home....
* Create a regulatory body for the GSE's with some teeth...
* Permanently increase GSE and FHA limits in high-cost areas to $625K
* Give FTHB's a $7500 tax credit.
* Eliminate seller-funded DPA's.
and last but not least...
* REQUIRE a 3.5% DOWN PAYMENT FOR FHA LOANS.
[link to money.cnn.com]
Most of the people in foreclosure don't qualify for FHA. Which is why they were in crappy loans in the first place.
Homeowner is still screwed. |
| Anonymous Coward
User ID: 472329
7/23/2008 1:54 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
Yeah, I see the gov. buying up all these institutions (formally/publicly) and then as an excuse, say that they can't help the people and give them the shaft!
All that's needed, is for the people to help the people and ignore the fucking gov. :P |
| Anonymous Coward
User ID: 472288 (OP)
7/23/2008 1:57 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
HOUSING: Fewer mortgages available for customers
Wachovia closes wholesale lending division, slashes products by $20 billion
By ZACH FOX - Staff Writer | Tuesday, July 22, 2008 5:02 PM PDT ∞
As lenders shut down mortgage divisions and tighten underwriting guidelines, prospective home buyers are finding it more difficult to find a loan.
Wachovia closed its wholesale mortgage department Monday and announced Tuesday that it planned to reduce lending and securities, such as mortgage-based bonds, by $20 billion this year.
With the failure of subprime lenders about a year ago, borrowers going to local mortgage brokers are finding fewer options and even fewer loans they can qualify for as banks tighten lending requirements, mortgage brokers said.
"We're getting hit from all angles," said Yamila Ayad, president of Mission Home Loans in San Marcos. "Last August, when a lot of subprime lenders were closing, I was not shocked. But it becomes very concerning when your prime banks start closing."
Earlier, Washington Mutual and Bank of America shuttered their wholesale mortgage programs, by which mortgages are made available through mortgage brokers. Brokers then scan wholesale mortgages offered by various lenders and select the lowest rates for their clients.
All the banks continue to make loans available through their own salespeople, but options have diminished as mortgage brokers can offer less and hundreds of lenders that specialized in riskier clients have gone out of business completely.
"We're overrun with people who want to buy. The challenge is getting them qualified," said Matt Battiata, a real estate broker based in Carlsbad. "The effect on the market is as if the Fed jacked up interest rates."
In announcing the closing of its mortgage business, Wachovia said it took an $8.9 billion loss in the second quarter and would cut 10,750 positions. In the year-earlier period, the bank earned $2.34 billion.
Three rating agencies ---- Moody's Investors Service, Standard & Poor's and Fitch Ratings ---- downgraded their ratings on Wachovia's debt, citing increased expectations of losses in the bank's mortgage portfolio and its reduced flexibility to raise new capital.
Despite the difficult industry conditions, some new lenders are setting up shop.
Greg McBride, a senior financial analyst with Bankrate, said consumers can still find loans that fit their needs if they are fully qualified.
"Regardless, as a consumer you have to shop around," he said. "If you don't, you will not be able to uncover the most competitive terms and you won't educate yourself about what's available in the marketplace."
Still, mortgage brokers say more damaging than the disappearing products are tightened underwriting requirements. During the housing boom, mortgages were offered to virtually anyone, brokers said, but now banks are rejecting many well-qualified borrowers.
Tougher qualification requirements have also slowed the mortgage process. For example, government-chartered lender Fannie Mae developed an automated underwriting program. If a borrower's information meets certain requirements, Fannie Mae will guarantee the loan.
However, lenders are adding stipulations on top of Fannie Mae's guidelines, making it more difficult and time-intensive to secure a home loan, brokers said.
"I've had customers say, 'A year ago, this would have been done in a few days. Now, they're asking for everything including my shoe size,'" said Ginny Ferguson, a director for the National Association of Mortgage Brokers. |
| Anonymous Coward
User ID: 472365
7/23/2008 2:21 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
2nd-Lien Provision Added to Housing Bill
(Just to let you know, 700 pageswere added to the bill last night)
Second lien holders could benefit from permitting the refinancing of struggling homeowners under a special Federal Housing Administration foreclosure rescue program contained in a massive housing bill the House is expected to pass Wednesday. A provision added during final negotiations on the bill will allow second lien holders to share in a portion of future appreciation on the property. However, they have to agree to the restructuring and refinancing of the existing first mortgages, which would extinguish any second or subordinated liens. The provision was probably added to the bill so the special FHA refinancing program can help more troubled borrowers with piggyback loans. As previously reported, the bill bans seller-funded downpayment assistance on FHA loans and places a 12-month moratorium on the charging of risk-based mortgage insurance premiums by the FHA. Those provisions go into effect Oct. 1, 2008, according to a copy of the bill released on Tuesday.
All banks holding HELOC's are screwed. Makes me fell a tiny bit better. |
| Anonymous Coward
User ID: 454051
7/23/2008 2:31 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
Here are the highlights:
and last but not least...
* REQUIRE a 3.5% DOWN PAYMENT FOR FHA LOANS.
[ link to money.cnn.com]
Most of the people in foreclosure don't qualify for FHA. Which is why they were in crappy loans in the first place.
Homeowner is still screwed.
This is to prevent another catastrophe just like the one we are in now. Why don't some people understand that the majority of the people defaulting should NEVER have been given these loans in the first place. They could not qualify for FHA because they did not have jobs, did not make enough money or for some reason did not qualify for a loan. It was the private mortgage companies that gave these loans willy nilly to nit wits that that did not have the discipline or resources to pay them back.
If the government were to refinance them they would only default again! We have to stop financing these people. Only the ones qualified to repay should be bailed out. As bad as this mess is, it would only get worse should these people start to default on government loans.
Actually 3.5% is nothing! I had to put 20% down to get a conventional 30 year loan. Most of these people defaulting did not put down one penny or very little to get those crappy loans. |
| Anonymous Coward
User ID: 472365
7/23/2008 2:39 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
Here are the highlights:
and last but not least...
* REQUIRE a 3.5% DOWN PAYMENT FOR FHA LOANS.
[ link to money.cnn.com]
Most of the people in foreclosure don't qualify for FHA. Which is why they were in crappy loans in the first place.
Homeowner is still screwed.
This is to prevent another catastrophe just like the one we are in now. Why don't some people understand that the majority of the people defaulting should NEVER have been given these loans in the first place. They could not qualify for FHA because they did not have jobs, did not make enough money or for some reason did not qualify for a loan. It was the private mortgage companies that gave these loans willy nilly to nit wits that that did not have the discipline or resources to pay them back.
If the government were to refinance them they would only default again! We have to stop financing these people. Only the ones qualified to repay should be bailed out. As bad as this mess is, it would only get worse should these people start to default on government loans.
Actually 3.5% is nothing! I had to put 20% down to get a conventional 30 year loan. Most of these people defaulting did not put down one penny or very little to get those crappy loans.
Even at 3.5% these folks don't qualify. FHA is a full doc lender.
DEBT RATIOS: On April 13, 2005 HUD increased the allowable debt ratio for manually underwritten loans to 31/43. Debt Ratios are the relationship between ones income and ones expenses. Ratios are generally expressed as two numbers like 31 over 43 or 31/43. These are now standard FHA ratios. The first number, the 31, represent the relationship between the borrowers income and his new housing expense of principal, interest, taxes, insurance and homeowner dues. A borrower who makes $3,000 per month and has a housing expense of $930 would have a 31% top end ratio.
The other number of 43% represents the total monthly debt, including the housing expense and all other debt such as credit cards, loans, child support, etc. Thus in our example of the borrower that makes $3,000 per month and had a total expense of $1,290, would have a 41% bottom ratio.
With the use of automated approvals, a borrower’s ratios can exceed the guidelines above and may go has high as 50%. Also, with compensating factors a borrower may be able to exceed the ratio guidelines
Even at current devalued levels, most folks are in more house than they can afford according to their debt ratio.
Epic Fail. |
| Anonymous Coward
User ID: 467023
7/23/2008 2:40 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
In Soviet Amerika, banks rob you. |
| Anonymous Coward
User ID: 454051
7/23/2008 2:48 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
Even at current devalued levels, most folks are in more house than they can afford according to their debt ratio.
Epic Fail. Quoting: Anonymous Coward 472365
Well that says it all! More house than they can afford! That is the main problem that started this snowball rolling. Why start it all over again by refinancing them with the same problem? Why do people have to have MORE HOUSE than they can afford? |
| Anonymous Coward
User ID: 472365
7/23/2008 2:49 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
I think congress is in a hurry to get this passed before the next bank goes down on Friday. They are trying to stop the panic by saying that their ridiculous bill will save the banks.....frankly, it saves no one.
Bernanke is going to have to raise interest rates pretty and then credit contraction will choke the banks to death. |
| Anonymous Coward
User ID: 472365
7/23/2008 2:51 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
Even at current devalued levels, most folks are in more house than they can afford according to their debt ratio.
Epic Fail.
Well that says it all! More house than they can afford! That is the main problem that started this snowball rolling. Why start it all over again by refinancing them with the same problem? Why do people have to have MORE HOUSE than they can afford? Quoting: Anonymous Coward 454051
In Cali., all homes are unaffordable according to the debt ratio formula. Unless you live in a trailer park or a condo in Compton. |
| Anonymous Coward
User ID: 454051
7/23/2008 2:58 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
Even at current devalued levels, most folks are in more house than they can afford according to their debt ratio.
Epic Fail.
Well that says it all! More house than they can afford! That is the main problem that started this snowball rolling. Why start it all over again by refinancing them with the same problem? Why do people have to have MORE HOUSE than they can afford?
In Cali., all homes are unaffordable according to the debt ratio formula. Unless you live in a trailer park or a condo in Compton. Quoting: Anonymous Coward 472365
We have to let this straw break the camels back then. Once they stop financing these people, and the housing market stagnates then maybe California housing prices will come more into line with the value of housing in the rest of the country.
My house is valued at $240,000. My father lives in California in a house that is not nearly as nice as mine. In fact it is 40 years old, very dated and now valued at 1.4 million dollars. Nowhere else in the country would that house go for that kind of money. It is absurd. In my area that house would go for around $200,000 - if that! |
| Anonymous Coward
User ID: 472373
7/23/2008 2:59 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
Bernanke is going to have to raise interest rates pretty and then credit contraction will choke the banks to death. Quoting: Anonymous Coward 472365
I don't mind if he does NOTraise interest rates.
I'm currently looking at a neat 4-5% COLA raise in my Social Security check next year. Keep the rates down. I can stand a 6% raise next year.
And when I was working, my pay raises were barely 2 to 2-1/2%. |
| Anonymous Coward
User ID: 472365
7/23/2008 3:07 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
Even at current devalued levels, most folks are in more house than they can afford according to their debt ratio.
Epic Fail.
Well that says it all! More house than they can afford! That is the main problem that started this snowball rolling. Why start it all over again by refinancing them with the same problem? Why do people have to have MORE HOUSE than they can afford?
In Cali., all homes are unaffordable according to the debt ratio formula. Unless you live in a trailer park or a condo in Compton.
We have to let this straw break the camels back then. Once they stop financing these people, and the housing market stagnates then maybe California housing prices will come more into line with the value of housing in the rest of the country.
My house is valued at $240,000. My father lives in California in a house that is not nearly as nice as mine. In fact it is 40 years old, very dated and now valued at 1.4 million dollars. Nowhere else in the country would that house go for that kind of money. It is absurd. In my area that house would go for around $200,000 - if that! Quoting: Anonymous Coward 454051
California is already sporting a 7.5 billion budget deficit.
When home prices fall, taxes fall right along with it. Many city budgets are already facing bankruptcy. Where will the money come from to keep California afloat? At 6.9% unemployment, California is already facing fiscal annihilation. |
| Anonymous Coward
User ID: 454051
7/23/2008 3:17 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
California is already sporting a 7.5 billion budget deficit.
When home prices fall, taxes fall right along with it. Many city budgets are already facing bankruptcy. Where will the money come from to keep California afloat? At 6.9% unemployment, California is already facing fiscal annihilation. Quoting: Anonymous Coward 472365
That is the problem - the California mindset. They have created a monster budget, but it seems the illegals and extremely wealthy are the only ones that benefit there. The fiscal policies are what put the middle class in extreme danger.
When I went to visit my father in California the last time (10 years ago), we went to a restaurant - not upscale - just a little seafood restaurant and the most inexpensive item on the menu was $34. I was appalled, but nobody seemed to mind in that place. It was packed. They have to charge these prices in order to keep up with the salaries they have to pay in California, which doesn't nearly keep up with the cost of living.
California is actually only for the very wealthy or the extremely poor or illegals. The middle class cannot survive in that economy for long.
California is in a class all by itself. It even seems that it is not part of the United States economy because everything is so out of line with the rest of the nation, and other nations for that matter. It really is a wonderland, and not in the good sense. |
| Anonymous Coward
User ID: 472365
7/23/2008 5:14 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
 |
| Anonymous Coward
User ID: 472171
7/23/2008 5:26 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
You people are really brain dead beyond belief. The government is officially taking over all banks. There will be a director who is in charge of everything. The director even makes the CEO of the banks salary. Everyone is completely fucked. It's over. And you schmucks are talking about HELOCS. Jesus Christ!!
This is only the first section of the 600 page housing bill that will be signed into law any day now. Back to the USSR!!!
Read carefully. Again, this is only 2 pages of the bill. It's all over folks. This bill seals the deal.
SEC. 38. FEDERAL NATIONAL MORTGAGE ASSOCIATION, FEDERAL HOME LOAN MORTGAGE CORPORATION, FEDERAL HOME LOAN BANKS.
`(a) Federal National Mortgage Association and Federal Home Loan Mortgage Corporation- No class of equity securities of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation shall be treated as an exempted security for purposes of section 12, 13, 14, or 16.
`(b) Federal Home Loan Banks-
`(1) REGISTRATION- Each Federal Home Loan Bank shall register a class of its common stock under section 12(g), not later than 120 days after the date of enactment of the Federal Housing Finance Regulatory Reform Act of 2008, and shall thereafter maintain such registration and be treated for purposes of this title as an `issuer', the securities of which are required to be registered under section 12, regardless of the number of members holding such stock at any given time.
`(2) STANDARDS RELATING TO AUDIT COMMITTEES- Each Federal Home Loan Bank shall comply with the rules issued by the Commission under section 10A(m).
`(c) Definitions- For purposes of this section, the following definitions shall apply:
`(1) FEDERAL HOME LOAN BANK; MEMBER- The terms `Federal Home Loan Bank' and `member', have the same meanings as in section 2 of the Federal Home Loan Bank Act.
`(2) FEDERAL NATIONAL MORTGAGE ASSOCIATION- The term `Federal National Mortgage Association' means the corporation created by the Federal National Mortgage Association Charter Act.
`(3) FEDERAL HOME LOAN MORTGAGE CORPORATION- The term `Federal Home Loan Mortgage Corporation' means the corporation created by the Federal Home Loan Mortgage Corporation Act.'.
SEC. 1113. PROHIBITION AND WITHHOLDING OF EXECUTIVE COMPENSATION.
(a) In General- Section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518) is amended--
(1) in the section heading, by striking `of excessive' and inserting `and withholding of executive';
(2) by redesignating subsection (b) as subsection (d); and
(3) by inserting after subsection (a) the following:
`(b) Factors- In making any determination under subsection (a), the Director may take into consideration any factors the Director considers relevant, including any wrongdoing on the part of the executive officer, and such wrongdoing shall include any fraudulent act or omission, breach of trust or fiduciary duty, violation of law, rule, regulation, order, or written agreement, and insider abuse with respect to the regulated entity. The approval of an agreement or contract pursuant to section 309(d)(3)(B) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723a(d)(3)(B)) or section 303(h)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1452(h)(2)) shall not preclude the Director from making any subsequent determination under subsection (a).
`(c) Withholding of Compensation- In carrying out subsection (a), the Director may require a regulated entity to withhold any payment, transfer, or disbursement of compensation to an executive officer, or to place such compensation in an escrow account, during the review of the reasonableness and comparability of compensation.'.
(b) Conforming Amendments-
(1) FANNIE MAE- Section 309(d) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723a(d)) is amended by adding at the end the following new paragraph:
`(4) Notwithstanding any other provision of this section, the corporation shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518).'.
(2) FREDDIE MAC- Section 303(h) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1452(h)) is amended by adding at the end the following new paragraph:
`(4) Notwithstanding any other provision of this section, the Corporation shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518).'.
(3) FEDERAL HOME LOAN BANKS- Section 7 of the Federal Home Loan Bank Act (12 U.S.C. 1427) is amended by adding at the end the following new subsection:
`(l) Withholding of Compensation- Notwithstanding any other provision of this section, a Federal Home Loan Bank shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518).'.
SEC. 1114. LIMIT ON GOLDEN PARACHUTES.
Section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518) is amended by adding at the end the following:
`(e) Authority To Regulate or Prohibit Certain Forms of Benefits to Affiliated Parties-
`(1) GOLDEN PARACHUTES AND INDEMNIFICATION PAYMENTS- The Director may prohibit or limit, by regulation or order, any golden parachute payment or indemnification payment.
`(2) FACTORS TO BE TAKEN INTO ACCOUNT- The Director shall prescribe, by regulation, the factors to be considered by the Director in taking any action pursuant to paragraph (1), which may include such factors as--
`(A) whether there is a reasonable basis to believe that the affiliated party has committed any fraudulent act or omission, breach of trust or fiduciary duty, or insider abuse with regard to the regulated entity that has had a material effect on the financial condition of the regulated entity;
`(B) whether there is a reasonable basis to believe that the affiliated party is substantially responsible for the insolvency of the regulated entity, the appointment of a conservator or receiver for the regulated entity, or the troubled condition of the regulated entity (as defined in regulations prescribed by the Director);
`(C) whether there is a reasonable basis to believe that the affiliated party has materially violated any applicable provision of Federal or State law or regulation that has had a material effect on the financial condition of the regulated entity;
`(D) whether the affiliated party was in a position of managerial or fiduciary responsibility; and
`(E) the length of time that the party was affiliated with the regulated entity, and the degree to which--
`(i) the payment reasonably reflects compensation earned over the period of employment; and
`(ii) the compensation involved represents a reasonable payment for services rendered.
`(3) CERTAIN PAYMENTS PROHIBITED- No regulated entity may prepay the salary or any liability or legal expense of any affiliated party if such payment is made--
`(A) in contemplation of the insolvency of such regulated entity, or after the commission of an act of insolvency; and
`(B) with a view to, or having the result of--
`(i) preventing the proper application of the assets of the regulated entity to creditors; or
`(ii) preferring one creditor over another.
`(4) GOLDEN PARACHUTE PAYMENT DEFINED-
`(A) IN GENERAL- For purposes of this subsection, the term `golden parachute payment' means any payment (or any agreement to make any payment) in the nature of compensation by any regulated entity for the benefit of any affiliated party pursuant to an obligation of such regulated entity that--
`(i) is contingent on the termination of such party's affiliation with the regulated entity; and
`(ii) is received on or after the date on which--
`(I) the regulated entity became insolvent;
`(II) any conservator or receiver is appointed for such regulated entity; or
`(III) the Director determines that the regulated entity is in a troubled condition (as defined in the regulations of the Director).
`(B) CERTAIN PAYMENTS IN CONTEMPLATION OF AN EVENT- Any payment which would be a golden parachute payment but for the fact that such payment was made before the date referred to in subparagraph (A)(ii) shall be treated as a golden parachute payment if the payment was made in contemplation of the occurrence of an event described in any subclause of such subparagraph.
`(C) CERTAIN PAYMENTS NOT INCLUDED- For purposes of this subsection, the term `golden parachute payment' shall not include--
`(i) any payment made pursuant to a retirement plan which is qualified (or is intended to be qualified) under section 401 of the Internal Revenue Code of 1986, or other nondiscriminatory benefit plan;
`(ii) any payment made pursuant to a bona fide deferred compensation plan or arrangement which the Director determines, by regulation or order, to be permissible; or
`(iii) any payment made by reason of the death or disability of an affiliated party.
`(5) OTHER DEFINITIONS- For purposes of this subsection, the following definitions shall apply:
`(A) INDEMNIFICATION PAYMENT- Subject to paragraph (6), the term `indemnification payment' means any payment (or any agreement to make any payment) by any regulated entity for the benefit of any person who is or was an affiliated party, to pay or reimburse such person for any liability or legal expense with regard to any administrative proceeding or civil action instituted by the Agency which results in a final order under which such person--
`(i) is assessed a civil money penalty;
`(ii) is removed or prohibited from participating in conduct of the affairs of the regulated entity; or
`(iii) is required to take any affirmative action to correct certain conditions resulting from violations or practices, by order of the Director.
`(B) LIABILITY OR LEGAL EXPENSE- The term `liability or legal expense' means--
`(i) any legal or other professional expense incurred in connection with any claim, proceeding, or action;
`(ii) the amount of, and any cost incurred in connection with, any settlement of any claim, proceeding, or action; and
`(iii) the amount of, and any cost incurred in connection with, any judgment or penalty imposed with respect to any claim, proceeding, or action.
`(C) PAYMENT- The term `payment' includes--
`(i) any direct or indirect transfer of any funds or any asset; and
`(ii) any segregation of any funds or assets for the purpose of making, or pursuant to an agreement to make, any payment after the date on which such funds or assets are segregated, without regard to whether the obligation to make such payment is contingent on--
`(I) the determination, after such date, of the liability for the payment of such amount; or
`(II) the liquidation, after such date, of the amount of such payment.
`(6) CERTAIN COMMERCIAL INSURANCE COVERAGE NOT TREATED AS COVERED BENEFIT PAYMENT- No provision of this subsection shall be construed as prohibiting any regulated entity from purchasing any commercial insurance policy or fidelity bond, except that, subject to any requirement described in paragraph (5)(A)(iii), such insurance policy or bond shall not cover any legal or liability expense of the regulated entity which is described in paragraph (5)(A).'.
SEC. 1115. REPORTING OF FRAUDULENT LOANS.
Part 1 of subtitle C of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4631 et seq.), as amended by this Act, is amended by adding at the end the following:
`SEC. 1379E. REPORTING OF FRAUDULENT LOANS.
`(a) Requirement to Report- The Director shall require a regulated entity to submit to the Director a timely report upon discovery by the regulated entity that it has purchased or sold a fraudulent loan or financial instrument, or suspects a possible fraud relating to the purchase or sale of any loan or financial instrument. The Director shall require each regulated entity to establish and maintain procedures designed to discover any such transactions.
`(b) Protection From Liability for Reports- Any regulated entity that, in good faith, makes a report pursuant to subsection (a), and any entity-affiliated party, that, in good faith, makes or requires another to make any such report, shall not be liable to any person under any provision of law or regulation, any constitution, law, or regulation of any State or political subdivision of any State, or under any contract or other legally enforceable agreement (including any arbitration agreement) for such report or for any failure to provide notice of such report to the person who is the subject of such report or any other persons identified in the report.'.
Subtitle B--Improvement of Mission Supervision
SEC. 1121. TRANSFER OF PROGRAM APPROVAL AND HOUSING GOAL OVERSIGHT.
Part 2 of subtitle A of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4541 et seq.) is amended--
(1) by striking the heading for the part and inserting the following:
`PART 2--ADDITIONAL AUTHORITIES OF THE DIRECTOR';
and
(2) by striking sections 1321 and 1322.
SEC. 1122. ASSUMPTION BY THE DIRECTOR OF CERTAIN OTHER HUD RESPONSIBILITIES.
(a) In General- Part 2 of subtitle A of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4541 et seq.) is amended--
(1) by striking `Secretary' each place that term appears and inserting `Director' in each of sections 1323, 1326, 1327, 1328, and 1336; and
(2) by striking sections 1338 and 1349 (12 U.S.C. 4562 note and 4589).
(b) Retention of Fair Housing Responsibilities- Section 1325 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4545) is amended in the matter preceding paragraph (1), by inserting `of Housing and Urban Development' after `The Secretary'.
SEC. 1123. REVIEW OF ENTERPRISE PRODUCTS.
Part 2 of subtitle A of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4541 et seq.) is amended by inserting before section 1323 the following:
`SEC. 1321. PRIOR APPROVAL AUTHORITY FOR PRODUCTS.
`(a) In General- The Director shall require each enterprise to obtain the approval of the Director for any product of the enterprise before initially offering the product.
`(b) Standard for Approval- In considering any request for approval of a product pursuant to subsection (a), the Director shall make a determination that--
`(1) in the case of a product of the Federal National Mortgage Association, the product is authorized under paragraph (2), (3), (4), or (5) of section 302(b) or section 304 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b), 1719);
`(2) in the case of a product of the Federal Home Loan Mortgage Corporation, the product is authorized under paragraph (1), (4), or (5) of section 305(a) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a));
`(3) the product is in the public interest; and
`(4) the product is consistent with the safety and soundness of the enterprise or the mortgage finance system.
`(c) Procedure for Approval-
`(1) SUBMISSION OF REQUEST- An enterprise shall submit to the Director a written request for approval of a product that describes the product in such form as prescribed by order or regulation of the Director.
`(2) REQUEST FOR PUBLIC COMMENT- Immediately upon receipt of a request for approval of a product, as required under paragraph (1), the Director shall publish notice of such request and of the period for public comment pursuant to paragraph (3) regarding the product, and a description of the product proposed by the request. The Director shall give interested parties the opportunity to respond in writing to the proposed product.
`(3) PUBLIC COMMENT PERIOD- During the 30-day period beginning on the date of publication pursuant to paragraph (2) of a request for approval of a product, the Director shall receive public comments regarding the proposed product.
`(4) OFFERING OF PRODUCT-
`(A) IN GENERAL- Not later than 30 days after the close of the public comment period described in paragraph (3), the Director shall approve or deny the product, specifying the grounds for such decision in writing.
`(B) FAILURE TO ACT- If the Director fails to act within the 30-day period described in subparagraph (A), then the enterprise may offer the product.
`(C) TEMPORARY APPROVAL- The Director may, subject to the rules of the Director, provide for temporary approval of the offering of a product without a public comment period, if the Director finds that the existence of exigent circumstances makes such delay contrary to the public interest.
`(d) Conditional Approval- If the Director approves the offering of any product by an enterprise, the Director may establish terms, conditions, or limitations with respect to such product with which the enterprise must comply in order to offer such product.
`(e) Exclusions-
`(1) IN GENERAL- The requirements of subsections (a) through (d) do not apply with respect to--
`(A) the automated loan underwriting system of an enterprise in existence as of the date of enactment of the Federal Housing Finance Regulatory Reform Act of 2008, including any upgrade to the technology, operating system, or software to operate the underwriting system;
`(B) any modification to the mortgage terms and conditions or mortgage underwriting criteria relating to the mortgages that are purchased or guaranteed by an enterprise, provided that such modifications do not alter the underlying transaction so as to include services or financing, other than residential mortgage financing; or
`(C) any other activity that is substantially similar, as determined by rule of the Director to--
`(i) the activities described in subparagraphs (A) and (B); and
`(ii) other activities that have been approved by the Director in accordance with this section.
`(2) EXPEDITED REVIEW-
`(A) ENTERPRISE NOTICE- For any new activity that an enterprise considers not to be a product, the enterprise shall provide written notice to the Director of such activity, and may not commence such activity until the date of receipt of a notice under subparagraph (B) or the expiration of the period described in subparagraph (C). |
| Anonymous Coward
User ID: 472365
7/23/2008 5:51 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
Will be fun to watch all the banks throw their foreclosures on the market at the same time. |
| Spectrum Blue 
Star Child
User ID: 454394
7/23/2008 6:07 PM
 | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
I have seen and experienced first hand what the screwed up housing market is like. We had problems getting loans for our new house. Luckily we had some money saved up, but that didn't cover the full cost. We still needed a loan. Eventually we got one.
Dreams will begin as they fade into chaos. |
| Anonymous Coward
User ID: 472171
7/23/2008 6:14 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
Will be fun to watch all the banks throw their foreclosures on the market at the same time. Quoting: Anonymous Coward 472365
That's the first intelligent comment on this thread. Flea market coming. The real housing correction begins, tick tick tick. NOW!!!
The bill was only protecting the banks balance sheets so they could unload these foreclosures. That's why they haven't been selling them. If they sold them now, they have to take the write down on their balance sheets, and there would be banks runs and total chaos.
The bill just gives way for a systematic collapse and protects the banks and gives the government ownership of your house and YOU. Even more than they have already |
| Anonymous Coward
User ID: 472365
7/23/2008 6:15 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
I have seen and experienced first hand what the screwed up housing market is like. We had problems getting loans for our new house. Luckily we had some money saved up, but that didn't cover the full cost. We still needed a loan. Eventually we got one. Quoting: Spectrum Blue
You are one of the smarter ones, Spectrum. Most people have no savings, and are crippled with debt.
I expect we'll see a more rapid deflation of property values in California, Florida and Arizona.......which will put people relying on their HELOC's in a very bad position, and put people into neg-am on their mortgages, if they bought in the last few years. Methinks the banks are going to become more ruthless in recovering their losses. |
| Anonymous Coward
User ID: 472365
7/23/2008 6:20 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
Will be fun to watch all the banks throw their foreclosures on the market at the same time.
That's the first intelligent comment on this thread. Flea market coming. The real housing correction begins, tick tick tick. NOW!!!
The bill was only protecting the banks balance sheets so they could unload these foreclosures. That's why they haven't been selling them. If they sold them now, they have to take the write down on their balance sheets, and there would be banks runs and total chaos.
The bill just gives way for a systematic collapse and protects the banks and gives the government ownership of your house and YOU. Even more than they have already Quoting: Anonymous Coward 472171
Exactly. Some real estate sectors could see a 30% fall in price within the next 3 months. Will suck to be Californian. All the banks out there have been waiting for months and months to foreclose on a lot of squatters.......when the real foreclosure numbers come in, rental prices will EXPLODE! Can't afford to keep your house, then you won't be able to afford to rent anything that isn't in a slum. |
| Anonymous Coward
User ID: 369031
7/23/2008 6:30 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
Congress is looking to run as fast as they can for the door to begin their 5 week summer vacations no doubt paid for by the taxpayers and are being pressured to pass this piece of shit bill in a major hurry - typical BushCo Tactics to get what the wannabe dictator wants and that is unlimited flow of cash from your pockets right into their criminal hands. WAKE THE FUCK UP ALREADY!!!!!! If Congress passes this goddamned bill,they are traitors who should be dragged out into the streets and hung! |
| Anonymous Coward
User ID: 472365
7/23/2008 6:31 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
1 in 6 FHA Borrowers in Default? Yet, our Congress just signed a bill that effectively lowers borrowing qualifications?
As you can see, FHA’s delinquency rate has been rising steadily since 2000-2001, and is now approaching critical levels. Consider that at 16.81% delinquency, more than 1 out of every 6 FHA single family borrowers are delinquent on their loan:
[link to whistleblower.ml-implode.com] |
| Anonymous Coward
User ID: 349191
7/23/2008 6:40 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
I don't think you realize that Bush is employing his Iraqi tactics of "CLEAR AND HOLD". Clear out the homeowners and hold the property.Meanwhile he's planning to make us all pay for his crimes against the American people and his crimes against humanity.
Educate yourselves to how we have arrived at this moment in history.The archives tell the whole sordid story.Disbelieve it at your own risk.
U.S. FINANCIAL MARKET REVAMP IS FALSE PROSPECTUS
[link to www.worldreports.org] |
| Anonymous Coward
User ID: 377208
7/23/2008 7:10 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
snip>On July 14, Treasury secretary Paulson, former chairman of Wall Street investment bank Goldman Sachs, stood on the steps of the Treasury building in Washington, in a clear attempt to add gravitas to the occasion, and announced that the George W Bush administration would submit a bill proposal to Congress to make taxpayer guarantee of Freddie Mac and Fannie Mae explicit.
[link to www.tbrnews.org] |
| Anonymous Coward
User ID: 472365
7/23/2008 7:51 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
|
| Anonymous Coward
User ID: 472365
7/23/2008 9:10 PM | | Re: SUMMARY OF BAILOUT BILL - MOST BUYERS WON'T QUALIFY FOR NEW LOANS | Quote |
|
| |
|
