Useful Articles for Homeowners

New Hope 4 Homeowners Program - HUD Loan Product

The Housing and Economic Recovery Act of 2008 amends the National Housing Act to authorize a new, temporary Federal Housing Administration (FHA) mortgage insurance program called the HOPE for Homeowners Program (also referred to as the H4H Program).

How Did This Happen?

How did we get such a serious problem? No one wanted the bubble to burst. Stalls (to this bursting bubble) were interjected with tricks such as ‘creative financing’ or ‘cash back at closing’ to entice buyers; new developers falsely ‘purchased’ the first Condo in a new development to set the ‘Comparables’ higher along with other both innocent and devious schemes (to falsely inflate values.)

Solutions to Mortgage Market Collapse

We have a complex problem but the real solutions are fairly simple:

Here is my proposal:

1. Provide a New Government Loan Product (NGLP) to Sub-Prime Borrowers in ARM’s which clearly didn’t qualify for the loan products they were given and/or for those buyers who can prove Fraud was used by Loan Officers, Brokers or Developers with Attorney General Complaints filed for same.  This loan will use the Current Market Value (CMV) of the property as the basis of the loan, forgiving the deficiency with a Contingency Clause that should there be a refinance or sale within a 30 year period of time, that a prorated percentage of the profits (prorated based on percentage of time left on the 30 year loan) would be shared with the Government until the interest free outstanding balance is paid in full.
2. Require Loan Officers to pass a Certification Program and have accountability, including having Licenses, FBI background checks to ensure ethical histories with no convictions of fraud.  Or Eliminate Commissioned Loan Officer’s compensation from a HUD1.
3. Require Developers be or use Licensed Brokers to sell all property developed and follow Real Estate Broker guidelines fully or be culpable when fraud occurs with Required Development Bonds that will cover fraud and seek out and properly punish those who perpetrate Mortgage Fraud.
4. Tar and Feather Developers, Loan Officers, Brokers, Lenders and others .. Read more...

DOWNFALL of CAPITALISM 101

By Connie Saunders September 21, 2008

How we got into this mess is complex only because there are so many players, each 100% responsible while pointing fingers elsewhere.  Just realize we were and are responsible and let us all point in one direction toward saving America and solving this mess we got ourselves into. Open our eyes to solutions, not just bubble gum patches or future problem costly bailouts that our children’s children need to pay for. Right now the Government is getting loans from China and Russia to bail us out!! Who are we owing to remedy this? What will it cost? Will it end up being TRILLIONS of dollars?

Government Sponsored Enterprises: Fannie, Freddie, Ginnie. Why did you allow ‘ARM’s for the poor??’ What up with ‘Stated Income’ on High Yield Loan Products? What were you thinking? ...

Mortgage Crisis Article

We had new developers falsely purchasing their fi rst condo sales at high prices, to set
the comps higher in a new complex, amongst other innocent and devious schemes.
Mixed up in this were loan offi cers who tricked their internal underwriting systems with false information such as calling a unit a second home, when it was just an investment property, or stating that a single applicant was married or that the unit size was 600 to get the customer the best interest rates resulted in loans given which would never have been otherwise—and in fact constitute mortgage fraud.square feet, versus the actual 360 square feet. These seemingly innocent attempts...