Negotiations on a massive housing bill are getting serious, with the House of Representatives scheduled to vote on the legislation tomorrow.
In markets where housing prices exceed the $417,000 conforming loan limit, the maximum loan amount of Fannie Mae and Freddie Mac loans would be determined by multiplying the median home price by 115%, up to a maximum of $625,000, sources say.
The same holds true for FHA loans, except that the multiplier kicks in at $271,050, or 65% of the conforming loan limit. If the median home price is $300,000, the maximum FHA loan amount in that area would be $345,000 ($300,000 x 115%).
House Financial Services Committee Chairman Barney Fran, D-Mass., told The Washington Post that the House has agreed to accept Senate provisions that ban seller funded downpayment assistance on FHA loans and impose a 12-month moratorium on the charging of risk-based premiums by the FHA.
Build it and they will come….Mr. "Senate Banking Committee"
We have all heard this and very similar statements. Lets take a look at the strategies Charles Schumer is utilizing to help our economy.
Our credit markets are in turmoil, it is harder to get a mortgage, it is more difficult to get credit cards, homes are depreciating in value, jobs are being out sourced to other countries, in fact, even the banks are having a hard time believing in each other. This is probably even the correct psychology seeing how the capitalistic markets trusted each other too much in years past.
So now that we cannot access money no matter what direction we turn.
But wait, look up in the sky, it a bird…no, is it a plane…NO, it is a big mouth named Charles Schumer. A man with "credibility"? A responsible man"? I think not. Or would you think it was a good economic move for our country "In the following 11 business days (since Schumers irresponsible remarks), depositors withdrew more than $1.3 billion from their accounts," the OTS said in a statement announcing the California-based lender’s takeover on Friday.
How can a man that carries the clout of, Senate Banking Committee, chairman of Congress’ Joint Economic Committee and the third-ranking Democrat in the Senate say such horrendous things? What did he think would happen when he stated, now remember he is an authority and on the Senate Banking Committee, "IndyMac was one of the most poorly run and reckless of all the banks," he said. "It was a spin off from the old Countrywide, and like Countrywide, it did all kinds of profligate activities that it never should have. Both IndyMac and Countrywide helped cause the housing crisis we’re now in" . See this article too. CNN
Despite the fact that most of the staff at Consumer Mortgage Reports may agree with his statement, as irresponsible as they were, this was completely uncalled for and the impact of his statement has set the financial recovery back 6 months or more. His statements have lead to the loss of 7,200 jobs, his remarks have put a major damper on the stocks of IndyMac and everyone who had owned them!
Someone else does not agree with Schumer, John Bovenzi, the FDIC COO says, "there’s probably no bank in the country that has access to greater capital and liquidity than Indymac Federal Bank".
Here is a nonrelated news clip from today, Jul. 14, 2008, with someone who obviously disagrees with Schumer.
Schumer, this is your idea of leadership? Take down the boat to teach them a lesson? Did you pick up your philosophies from Adolph Hitler.
If you did your research, IndyMac and all the other lenders have tightened up their guidelines and they could have recovered without these costs put on the American public. It has been said that you would like everyone making $10.00/hour. Well now lets get rid any good paying jobs that are left in America by flapping your mouth like it is Hurricane Katrina.
"And now they are doing what the Bush administration always does: Blame the fire on the person who calls 911.", Schumer states…so where was it your position to call the fire department?
…and if your words do not carry weight, then we request you step down. Quit. Resign. If you claim your words are meaningless, then you are not a leader of the United States!
A little FYI for those who oppose. Indymac and Countrywide were not the only problems. As much as we all love making money, the REAL problem was the excessive greed from Wall Street. If Wall street did not buy all those risky loans NO BANK could sell them!
Oh by the way Mr Senate Banking Committee, chairman of Congress’ Joint Economic Committee and the third-ranking Democrat in the Senate, where you are the Senate Banking Committee when all this Wall Street crap was going on a few years ago? How many of these banking institutions that are now slamming, how much have they given you for your political campaigns? How many banking lobbyists are in your back pocket?
No wonder more and more people are coming out and speaking against your continual irresponsibility. Once again, where was your influence the last few years Mr Senate Banking Committee?