I just received this via email. I have verified it with Snopes.
Want to know why we are in the financial mess we are in?
Read this article which appeared in the NEW YORK TIMES ON SEPTEMBER 30, 1999. It answers the question.
Remember, it was written 9 years ago!
Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES New York Times
Published: September 30, 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.
''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''
Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.
Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.
Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.
In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent.
Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites, in part because blacks and Hispanics in particular tend to have on average worse credit ratings.
In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.
The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.
Comment from Wayne:
I guess if we force the GSEs to grant loans to EVERYONE and toss common sense lending we can expect some people not to pay... yuh think?
Monday, October 6, 2008
Will the Bailout help those facing foreclosure?
Not much.
I spent over 35 years in the mortgage lending industry. There is no way to spend that amount of time without learning a little bit. I know a bit about mortgages, and a bit about the secondary market for mortgages, and a bit about macro- economics (which, by the way I also studied in college).
The truth is that the bailout is a bailout for financial institutions, not for homeowners. I am not saying there will not be a small amount of benefit flow down to homeowners in trouble, but it won’t be much. The bailout is designed to capital (and perhaps some confidence) back to the financial markets. The experts seem to agree that neither the programs in existence or the bailout will be much help for those a risk of losing their homes.
What that means for homeowners facing foreclosure is that there is really no help for them, short of what they do for themselves. The bill passed and signed by the president last week contains language that requires the Treasury Department to develop a plan to mitigate foreclosures. Knowing the speed at which the bureaucrats move renders this requirement impotent. It will be months if not years before any real help flows to homeowners who are in trouble on their mortgages. By the time it actually happens thousands more homeowners will lose their homes. Since 2007 over 900,000 foreclosures have taken place. In the first eight months of this year, more than 180,000 were foreclosed on in California alone. More than 2 million mortgage loans are past due 2 or more payments. These are all potential foreclosures.
What then should a homeowner in trouble on their mortgage do?
Well, they can try calling their mortgage lender and attempt mitigation on their own. It is a very rare instance when this works. The problem is that it is next to impossible to reach the right person at the lender/servicer… a person who has the authority to actually modify the loan. Most of the time homeowners end up on the phone with a collector who represents the best interests of the lender/servicer, not the best interests of the homeowner. The average homeowner is not equipped to deal with this, especially under the pressure of a pending foreclosure.
The homeowner needs professional help. They need someone to negotiate a modification on their behalf. A professional who knows the in and outs of the mortgage industry. Professionals who know how to reach the decision-maker and know what to say to get a modification approved that works for both homeowner and the lender/servicer.
I am a Certified Loss Mitigation Consultant and may be able to help. My only goal is always to achieve a loan modification the will allow the homeowner to keep and live in their home. I am not an investor looking for a deal on their home. I am not a real estate agent looking for a "short sale" listing. I just want to help the homeowner save their home.
My bet is that everyone who reads this knows someone who can benefit from my services. I don’t charge any "up front" fees and will only take those cases that I firmly believe I can be of help. I don’t want to get in the way, so if I can’t help I will tell them immediately.
So… If you know someone who I might be able to help, have him or her get a hold of me.
They can call be direct at 800-704-2407 or 530-888-8877
They can visit my Foreclosure Prevention site: HTTP://EEZURL.COM/?PIVE
They can call: 800-366-1375 ext. 6800 for a 24/7 recorded message
Have them contact me in some manner. You will be doing them a huge favor and you may be helping them save their home.
Thanks,
Wayne
I spent over 35 years in the mortgage lending industry. There is no way to spend that amount of time without learning a little bit. I know a bit about mortgages, and a bit about the secondary market for mortgages, and a bit about macro- economics (which, by the way I also studied in college).
The truth is that the bailout is a bailout for financial institutions, not for homeowners. I am not saying there will not be a small amount of benefit flow down to homeowners in trouble, but it won’t be much. The bailout is designed to capital (and perhaps some confidence) back to the financial markets. The experts seem to agree that neither the programs in existence or the bailout will be much help for those a risk of losing their homes.
What that means for homeowners facing foreclosure is that there is really no help for them, short of what they do for themselves. The bill passed and signed by the president last week contains language that requires the Treasury Department to develop a plan to mitigate foreclosures. Knowing the speed at which the bureaucrats move renders this requirement impotent. It will be months if not years before any real help flows to homeowners who are in trouble on their mortgages. By the time it actually happens thousands more homeowners will lose their homes. Since 2007 over 900,000 foreclosures have taken place. In the first eight months of this year, more than 180,000 were foreclosed on in California alone. More than 2 million mortgage loans are past due 2 or more payments. These are all potential foreclosures.
What then should a homeowner in trouble on their mortgage do?
Well, they can try calling their mortgage lender and attempt mitigation on their own. It is a very rare instance when this works. The problem is that it is next to impossible to reach the right person at the lender/servicer… a person who has the authority to actually modify the loan. Most of the time homeowners end up on the phone with a collector who represents the best interests of the lender/servicer, not the best interests of the homeowner. The average homeowner is not equipped to deal with this, especially under the pressure of a pending foreclosure.
The homeowner needs professional help. They need someone to negotiate a modification on their behalf. A professional who knows the in and outs of the mortgage industry. Professionals who know how to reach the decision-maker and know what to say to get a modification approved that works for both homeowner and the lender/servicer.
I am a Certified Loss Mitigation Consultant and may be able to help. My only goal is always to achieve a loan modification the will allow the homeowner to keep and live in their home. I am not an investor looking for a deal on their home. I am not a real estate agent looking for a "short sale" listing. I just want to help the homeowner save their home.
My bet is that everyone who reads this knows someone who can benefit from my services. I don’t charge any "up front" fees and will only take those cases that I firmly believe I can be of help. I don’t want to get in the way, so if I can’t help I will tell them immediately.
So… If you know someone who I might be able to help, have him or her get a hold of me.
They can call be direct at 800-704-2407 or 530-888-8877
They can visit my Foreclosure Prevention site: HTTP://EEZURL.COM/?PIVE
They can call: 800-366-1375 ext. 6800 for a 24/7 recorded message
Have them contact me in some manner. You will be doing them a huge favor and you may be helping them save their home.
Thanks,
Wayne
Sunday, October 5, 2008
The Shack
I normally read 5-6 novels each year. Usually, that happens during my two weeks in Cabo San Lucas in August. We didn’t go to Cabo this year, so I am behind schedule. Finding time for recreational reading at home is very difficult for me. With time devoted to the grapevines, wine making (and drinking ;>) ), etc. I just don’t seem to find the time.
This weekend I found myself alone. Susan was off to the bay area for a conference and some visiting. When I got up on Saturday I nothing pressing. I had a free day. I decided to read a novel that Susan and others had recommended. It’s "The Shack" written by one William P. Young. I started it pretty early in the morning on Saturday and finished it around 7:00 PM. OK, so I am not the fastest reader in the world.
The Shack is probably the BEST novel I have read in at least ten years. I recommend it highly, and to everyone. I would be surprised to hear of anyone reading this and not liking it. There is a far greater chance that you will love it. The Shack has a bonus… in addition to being entertaining it is educational. We are never too old to learn, are we?
I hope you enjoy it as much as I did.
Be blessed,
Wayne
www.Capstone-Ministries.org
This weekend I found myself alone. Susan was off to the bay area for a conference and some visiting. When I got up on Saturday I nothing pressing. I had a free day. I decided to read a novel that Susan and others had recommended. It’s "The Shack" written by one William P. Young. I started it pretty early in the morning on Saturday and finished it around 7:00 PM. OK, so I am not the fastest reader in the world.
The Shack is probably the BEST novel I have read in at least ten years. I recommend it highly, and to everyone. I would be surprised to hear of anyone reading this and not liking it. There is a far greater chance that you will love it. The Shack has a bonus… in addition to being entertaining it is educational. We are never too old to learn, are we?
I hope you enjoy it as much as I did.
Be blessed,
Wayne
www.Capstone-Ministries.org
Saturday, October 4, 2008
Joe Biden's Debate Lies
Here is the list the McCain camp put forth:
OK... I understand one must consider the source, however these all are pretty easy to confirm as false. In any event, if half of these were just simple errors -- 7 lies in the debate would be about seven too many. It seems to me the Democrates are counting on no one paying any attention and just accepting everything they say as truth. SHAME ON THEM!
1. TAX VOTE: Biden said McCain voted "the exact same way" as Obama to increase taxes on Americans earning just $42,000, but McCain DID NOT VOTE THAT WAY.
2. AHMEDINIJAD MEETING: Joe Biden lied when he said that Barack Obama never said that he would sit down unconditionally with Mahmoud Ahmedinijad of Iran. Barack Obama did say specifically, and Joe Biden attacked him for it.
3. OFFSHORE OIL DRILLING: Biden said, "Drill we must." But Biden has opposed offshore drilling and even compared offshore drilling to "raping" the Outer Continental Shelf."
4. TROOP FUNDING: Joe Biden lied when he indicated that John McCain and Barack Obama voted the same way against funding the troops in the field. John McCain opposed a bill that included a timeline, that the President of the United States had already said he would veto regardless of it’s passage.
5. OPPOSING CLEAN COAL: Biden says he’s always been for clean coal, but he just told a voter that he is against clean coal and any new coal plants in America and has a record of voting against clean coal and coal in the U.S. Senate.
6. ALERNATIVE ENERGY VOTES: According to FactCheck.org, Biden is exaggerating and overstating John McCain’s record voting for alternative energy when he says he voted against it 23 times.
7. HEALTH INSURANCE: Biden falsely said McCain will raise taxes on people’s health insurance coverage — they get a tax credit to offset any tax hike. Independent fact checkers have confirmed this attack is false.
8. OIL TAXES: Biden falsely said Palin supported a windfall profits tax in Alaska — she reformed the state tax and revenue system, it’s not a windfall profits tax.
9. AFGHANISTAN / GEN. MCKIERNAN COMMENTS: Biden said that top military commander in Iraq said the principles of the surge could not be applied to Afghanistan, but the commander of NATO’s International Security Assistance Force Gen. David D. McKiernan said that there were principles of the surge strategy, including working with tribes, that could be applied in Afghanistan.
10. REGULATION: Biden falsely said McCain weakened regulation — he actually called for more regulation on Fannie and Freddie.
11. IRAQ: When Joe Biden lied when he said that John McCain was "dead wrong on Iraq", because Joe Biden shared the same vote to authorize the war and differed on the surge strategy where they John McCain has been proven right.
12. TAX INCREASES: Biden said Americans earning less than $250,000 wouldn’t see higher taxes, but the Obama-Biden tax plan would raise taxes on individuals making $200,000 or more.
13. BAILOUT: Biden said the economic rescue legislation matches the four principles that Obama laid out, but in reality it doesn’t meet two of the four principles that Obama outlined on Sept. 19, which were that it include an emergency economic stimulus package, and that it be part of "part of a globally coordinated effort with our partners in the G-20."
14. REAGAN TAX RATES: Biden is wrong in saying that under Obama, Americans won’t pay any more in taxes then they did under Reagan.
Maybe this is what the Dems like to call "substance," as in substantive lies.
Be blessed,
Wayne
http://www.capstone-ministries.org/
OK... I understand one must consider the source, however these all are pretty easy to confirm as false. In any event, if half of these were just simple errors -- 7 lies in the debate would be about seven too many. It seems to me the Democrates are counting on no one paying any attention and just accepting everything they say as truth. SHAME ON THEM!
1. TAX VOTE: Biden said McCain voted "the exact same way" as Obama to increase taxes on Americans earning just $42,000, but McCain DID NOT VOTE THAT WAY.
2. AHMEDINIJAD MEETING: Joe Biden lied when he said that Barack Obama never said that he would sit down unconditionally with Mahmoud Ahmedinijad of Iran. Barack Obama did say specifically, and Joe Biden attacked him for it.
3. OFFSHORE OIL DRILLING: Biden said, "Drill we must." But Biden has opposed offshore drilling and even compared offshore drilling to "raping" the Outer Continental Shelf."
4. TROOP FUNDING: Joe Biden lied when he indicated that John McCain and Barack Obama voted the same way against funding the troops in the field. John McCain opposed a bill that included a timeline, that the President of the United States had already said he would veto regardless of it’s passage.
5. OPPOSING CLEAN COAL: Biden says he’s always been for clean coal, but he just told a voter that he is against clean coal and any new coal plants in America and has a record of voting against clean coal and coal in the U.S. Senate.
6. ALERNATIVE ENERGY VOTES: According to FactCheck.org, Biden is exaggerating and overstating John McCain’s record voting for alternative energy when he says he voted against it 23 times.
7. HEALTH INSURANCE: Biden falsely said McCain will raise taxes on people’s health insurance coverage — they get a tax credit to offset any tax hike. Independent fact checkers have confirmed this attack is false.
8. OIL TAXES: Biden falsely said Palin supported a windfall profits tax in Alaska — she reformed the state tax and revenue system, it’s not a windfall profits tax.
9. AFGHANISTAN / GEN. MCKIERNAN COMMENTS: Biden said that top military commander in Iraq said the principles of the surge could not be applied to Afghanistan, but the commander of NATO’s International Security Assistance Force Gen. David D. McKiernan said that there were principles of the surge strategy, including working with tribes, that could be applied in Afghanistan.
10. REGULATION: Biden falsely said McCain weakened regulation — he actually called for more regulation on Fannie and Freddie.
11. IRAQ: When Joe Biden lied when he said that John McCain was "dead wrong on Iraq", because Joe Biden shared the same vote to authorize the war and differed on the surge strategy where they John McCain has been proven right.
12. TAX INCREASES: Biden said Americans earning less than $250,000 wouldn’t see higher taxes, but the Obama-Biden tax plan would raise taxes on individuals making $200,000 or more.
13. BAILOUT: Biden said the economic rescue legislation matches the four principles that Obama laid out, but in reality it doesn’t meet two of the four principles that Obama outlined on Sept. 19, which were that it include an emergency economic stimulus package, and that it be part of "part of a globally coordinated effort with our partners in the G-20."
14. REAGAN TAX RATES: Biden is wrong in saying that under Obama, Americans won’t pay any more in taxes then they did under Reagan.
Maybe this is what the Dems like to call "substance," as in substantive lies.
Be blessed,
Wayne
http://www.capstone-ministries.org/
Thursday, October 2, 2008
A New Disease
Look out everyone. The Psychiatric community has discovered a new disease. Be careful you don’t catch it. What is it you ask? Why, its Road Rage Disorder. Sometimes its called Intermittent Explosive Disorder (IED). Like many of its close cousins it’s a bunch of crap. There is no such thing. It’s just another way to relieve people from personal responsibility and a way for the drug companies to sell more of their drugs.
How have we survived? We have all been running around with IED and did not even know it! Horrors!
This sort of things has worked well for the drug companies. It’s their marketing plan. Get more people on their drugs. Don’t believe me? Then think about some of our "new" diseases for which thousands take medication on a regular basis. Consider… Social Anxiety Disorder, Restless Legs Syndrome and even Attention Deficit Hyperactivity Disorder. Every one of these are "new" and they all are fake. Totally bogus. Designed to sell drugs to people who don’t need them. And do you think they even care about the potentially dangerous side effects of these drugs. Not one bit.
Think about the above bogus "diseases" I mentioned. Can you see any of them under a microscope? No. Can you measure any of them with a blood test? No. Is there a known carrier for any of them such as a virus, bacterium, fungus or spore? No. Can you find them in the genetic code? No. Can you find them with a CAT scan or MRI? No. Can you weigh any of them? No. Can you touch, see or smell any of them? No. Why is that folks? Because they are not real, that’s why! We are being lied to so the drug companies can sell more product.
Check it out for yourselves. Do some research on the internet and library. You will find I am correct. Road Rage is NOT a disease, I don’t care what they say. It is an example of people not controlling their emotions. It’s that simple.
But now that it is a disease, individuals are relieved of their personal responsibility and can’t be charged with a crime if they commit one during a Road Rage episode, because they have a disease. It’s not their fault.
Just how stupid are we going to get? Or, a better question might be "How long are we going to allow them to treat us as though we have no brains?"
Wayne
www.Capstone-Ministries.org
How have we survived? We have all been running around with IED and did not even know it! Horrors!
This sort of things has worked well for the drug companies. It’s their marketing plan. Get more people on their drugs. Don’t believe me? Then think about some of our "new" diseases for which thousands take medication on a regular basis. Consider… Social Anxiety Disorder, Restless Legs Syndrome and even Attention Deficit Hyperactivity Disorder. Every one of these are "new" and they all are fake. Totally bogus. Designed to sell drugs to people who don’t need them. And do you think they even care about the potentially dangerous side effects of these drugs. Not one bit.
Think about the above bogus "diseases" I mentioned. Can you see any of them under a microscope? No. Can you measure any of them with a blood test? No. Is there a known carrier for any of them such as a virus, bacterium, fungus or spore? No. Can you find them in the genetic code? No. Can you find them with a CAT scan or MRI? No. Can you weigh any of them? No. Can you touch, see or smell any of them? No. Why is that folks? Because they are not real, that’s why! We are being lied to so the drug companies can sell more product.
Check it out for yourselves. Do some research on the internet and library. You will find I am correct. Road Rage is NOT a disease, I don’t care what they say. It is an example of people not controlling their emotions. It’s that simple.
But now that it is a disease, individuals are relieved of their personal responsibility and can’t be charged with a crime if they commit one during a Road Rage episode, because they have a disease. It’s not their fault.
Just how stupid are we going to get? Or, a better question might be "How long are we going to allow them to treat us as though we have no brains?"
Wayne
www.Capstone-Ministries.org
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