CNS: Obama Will Make Taxpayers Guarantee Mortgages Without Checking Borrowers' Incomes or Employment

[Patricia M. McBride]

Here we go again.  This is the same problem that got us into the housing meltdown brought to you by the same group, and once again when this goes south, they will once again do the blame thing and blame the banks when THEY did it.  No one in their right mind guarantees loans for people without bothering to check to see if they can afford to pay the money back or are even employed, but sanity and Obama have nothing to do with one another.

 

By Fred Lucas

March 7, 2012

(CNSNews.com) – Wth no authorization from Congress, President Barack Obama has announced that his administration--through the Federal Housing Administration--will insure refinanced mortgages for 2 to 3 million borrowers without verifying their income or even if they hold a job, according to the Department of Housing and Urban Development (HUD).

Obama announced his latest mortgage program at a White House news conference on Tuesday.

Any American with a mortgage insured by the Federal Housing Administration (FHA) endorsed on or before May 31, 2009 and who is current with their mortgage payments would qualify, according to HUD.

No additional underwriting, or examining the verification of income, employment status or creditworthiness, will be done.

“Basically that’s because they already have an FHA loan and that’s just refinancing the same loan,” HUD spokesman Lemar C. Wooley told CNSNews.com.

Wooley further explained in an e-mail, “Even if their circumstances have changed, they are still managing to be current on the original higher priced mortgage, so that’s the proof to the FHA that they can handle the lower payments.”

“The streamline refinance process is only available for FHA-insured mortgages that are performing – the borrower is paying the mortgage,” Wooley said. He added, “By not requiring verification of income and other underwriting requirements, FHA reduces the cost of the transaction, as well as the time it takes – all to the mutual advantage of the borrower, the lender and FHA.”

LINK:  http://cnsnews.com/news/article/obama-will-make-taxpayers-guarantee...

[amanda choate]

Patricia, we are already on the hook for these loans. What it will do is allow homeowners with these loans to get tghe prevailing rate of about 4 percent. Lower payments, greater liklihood of repayment and ends the giveaway to banks who charge much higher rates on mortgages, mortgages with zero chance of default to them as the feds guarantee repayment.