Obama: Speed Underwater Mortgage Refis
January 26, 2012 Category :Credit| Home Loans| Mortgages 0
During the State of The Union, President Obama talked about allowing more people to refinance their home. He said:
“I’m sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage by refinancing at historically low rates,” Obama said. “No more red tape. No more runaround from the banks. A small fee on the largest financial institutions will ensure that it won’t add to the deficit and will give those banks that were rescued by taxpayers a chance to repay a deficit of trust.”Congress has previously looked at a proposal to charge banks a fee to help home owners who remain underwater, but it’s not clear from the details Obama provided how similar this plan is to the one Congress has already considered.
I don’t really get it. “A Small fee on financial institutions” Is he saying that he wants to charge banks a fee if they don’t approve refinances for certain Americans? Or is he saying that the government will pay these banks to encourage them to help Americans who can’t qualify to refiannce?
Either way, I don’t like it.
How did we get in this housing mess to begin with?
It was by giving loans to people who shouldn’t have gotten them. If people are “credit worthy” and in position to refinance, they should have already done it. If they really shouldn’t qualify for a home loan, then the government shouldn’t try to force banks into giving them loans.
