The Hope for Homeowners Program
Written by Sam on October 6th, 2008Oct. 6 (Bloomberg) — The Federal Housing Administration has grown so large that by the end of the year it will guarantee mortgages for three in 10 U.S. borrowers, many of whom have bad credit or loans that required no verification of income.
Congress wants FHA to do more. The Hope for Homeowners program, unveiled Oct. 1, authorizes the agency, part of the cabinet-level Department of Housing and Urban Development, to guarantee up to $300 billion of 30-year, fixed rate home loans for struggling borrowers over the next three years. The Congressional Budget Office estimates that 400,000 households will get FHA- insured loans and about one-third of those will fall behind again on their new loans.
Bloomberg
What is this?? I mean, what is this???? What did they just pass a bill to dedicate $700 billion for? This is precisely one of the reasons why I was opposed to the bailout because IT DOESN’T CHANGE THE BAD BEHAVIOR! So now Congress is going to throw another $300 billion into the pot so another 150,000 people can be given loans they don’t qualify for and default on them? I’m a moron. Why am I paying my mortgage every month?
6
PM
This is frustrating but it seems like a better alternative than 200,000 new homeless over the course of a month.
6
PM
There is always a good excuse for more socialism. I wonder how anyone was able to afford a home, get work or even not starve before the Federal Government was there to take care of them. It is a miracle we made it as far as we did without HUD.
6
PM
You’re saying that kicking hundreds of thousands of Americans out of their homes is a superior option?
I agree that people need to take more responsibility for their choices, but this seems a little harsh.
6
PM
Where were they before this program, living on the streets?
My point is, that if we followed this paradigm then no government program would ever end, it would merely grow and grow . . . wait a minute that’s what’s happening now!
Give them a year to find a place to live and then kill the program.
7
AM
Dave -
I doubt it would come to that anyways. I would venture to say what WOULD happen is a shift from mortgage defaulted, high end new homes that these people generally tended to buy to renting mortgage-financed investment properties; ya know, the market having a supply where a demand would exist.
Now, government bailouts of poor decisions seems to be the preference. I would say that having an unduly high number of renters is not an ideal situation, but certainly preferable to what’s happening with this program.
7
PM
Where anywhere in the Constitution or in any of the founding documents of this nation does it say we have the right to home ownership?