Myth Vs Fact Helping Homeowners - Another perspective

The looming mortgage crisis has affected almost everyone in all aspects of life. When to stop stop the sale of real estate construction builders, the carpenters stop nailing, the painters painting paintings stop, stop, shops and Home Depot hits record low. Vertical damage in almost all areas of general retail, services and consumer durables. Let's face it, America is a nation that has fueled the area's development and sales. Unfortunately, ingenuity, invention and production aresideline, the Americans include the sale of products or constructed from other countries. For God's sake, and GM in the sales of Toyota in second place, who'd thunk it?

The reason for this article is not complaining about the economic presence today, but to help people understand the most common myths that you receive from the house and mortgage debacle. What you hear from us is completely non-biased and non-partisan media fails to promise some important facts that could help the average Americanto better understand exactly what we are against.

Living in Atlanta, was just around the corner from CNN, I my fair share of lending for journalists and correspondents who created it yet unnamed. Honestly, I can confirm that the news reporters, presenters and correspondents for exactly the same in white and have a clear head, as John Q. Public ago when a loan officer you are immersed in the details. But now that we have a mortgage crisis, have mysteriously turned into professional writers, asRecite the Democratic talking points. When questioned, that most journalists who write columns for the mortgage industry do not know how the real-life impact of policy outcomes, which publish and promote.

As evidence, I have extracted from an article by Andrew Jakabovics called "Myth vs. Fact: Helping homeowners" and corrects some of the Democrats say he should be pursued. Mr. Jakabovics americanprogress.org writes for an organization likecalled non-partisan press. My original intention was to send this article as a rebuttal to his article on the site of his company. However, having looked at the site it seems that all the objects that President Bush is not personally responsible for coordinating the whole debacle in a vacuum.

The bill's article deals with Mr. Jakabovics, the Federal Housing Finance Regulatory Reform Act of 2008, a bill that would raise taxes on loans for the amount of500 million dollars a year. The bill is part of a larger piece of legislation that eventually will be 300 billion U.S. dollar transfers "at risk" mortgages, which were taken by the banks of our nation's portfolio of hand. These loans have a higher error rate that the Federal Housing Administration pleased that they are supported by additional funding from Uncle Sam that all the costs. Guess where Uncle Sam gets his money

Mr. Jakabovics Wrote:

1.Myth: "The law provides a lifeboat for the speculators."

• Mr. Jakabovics: "All laws in consideration for the owners refinanced the homes they want to live."

• Correct answer: Yes, but I do not know what is a myth "." Let.

2. Myth: "The law provides a rescue for creditors."

• Mr. Jakabovics: "For the benefits of an FHA loanGuarantee, creditors and investors should take the haircut and pay the closing price plus a premium for the front. "

• Correct answer: The bill is legislation that takes the worst loans from lenders in the portfolio of our nation and gives it to the Federal Housing Administration, the government is required to capitalization. Am I missing something?

Moreover, "insurance premium" PMI, MIP is always on loans over 80% of the loan to value loans agency All werefinanced by Fannie Mae, Freddie Mac and FHA. The insurance premium will not change from the norm, as the writer's head. I guess the haircut, "refers to the fact that all loans is assessed the real value will be cut. This is still in place free trade agreements with a" risky "loans to 100% LTV.

3. Myth: "The law provides a rescue for homeowners."

• Mr. Jakabovics: "Under the mortgage on the house Home Ownership RetentionHope for Homeowners Program and the Senate program, each piece of legislation now before Congress, individual owners would have a premium for insurance to cover the cost of the FHA credit enhancement. "

• Correct answer: Ditto from above.

4. Myth: "There is no need for Congress to act, the private sector Hope Now Alliance was necessary to make a great success in itTraining. "

• Mr. Jakabovics: "Very few borrowers have offered material and long-term changes to their loans. In addition, a loan by loan approach to housing crisis simply will not do the level of need."

• Correct answer: I agree that Hope Now Alliance is incompetent. However, it is the best answer was the executive with the legislature and the control of patterning on the side of the aisle bickeringcan claim credit for the "solution" of the mortgage crisis.

A loan of the settlement of the loan is exactly what is needed, sweeping legislation provides that the banking sector is the exchange of money to suppress. History has again and again, if Congress say the banks, as their money and simply has more loans loans to prove it.

The truth is that both sides deserve blame here. In an election year, neither Republicans nor Democrats offer much in the wayConcessions until after the election. The only difference is that the Democrats have ABC, CBS, NBC and each production is produced by leading Hollywood cheer their perspective. Although the Republicans have Fox and talk radio, for the D-Pass Mark the "Fairness Doctrine".

5. Myth: "The housing crisis affects only irresponsible borrowers, so that taxpayers who are struggling to meet their obligations should not pay for their mistakes."

•Mr. Jakabovics: "The housing crisis affects all owners and tenants."

• Correct answer: Yes, the blame is always advisable for homeowners in the mortgage market fiasco similar to accuse the children in 60 years for smoking weed. Decreased through the great majority of people learned from experience the atmosphere and moved on.

Finally, none of the answers, you can read here as a "fact." The fact is that we are in asevere financial crisis that is extremely fluid. What America needs is our top financial minds that exclude most of the politicians who have put their heads together to come to respond with a non-partisan. The answer is not to let the market correct itself, "nor is the boot-band federal agencies and private banks, with a mandate that all the bales in a bad mortgage.

The answer is between these two extremes. The problem is that Democrats and Republicans areDrag their feet, even more than usual, because we are in an election year. Neither side is willing to give the soil a threat election, for fear that the other side can boast in the month of November, ironically, while their constituents suffer.