Sen. Charles Schumer of New York is pushing federal regulators to raise portfolio caps at Fannie Mae and Freddie Mac and ask banks to help with workouts for borrowers hit by the mortgage lending meltdown.
You can read the full story in the
Wall Street Journal here.
I think congress and Sen. Schumer are now understanding that the Fed lowering interest rates is not going to save our economy. Here's a quote from that article.
Quote:
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“The Federal Reserve Bank has taken good steps to restore liquidity to the financial system, but there is still much more that needs to be done to address the risks that we face to our broader economy caused by the ongoing turmoil in the mortgage market,” Schumer wrote in a letter to federal regulators.
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Then he goes on to say that funding will not be enough to help non-profits refinance borrowers homes.
Doesn't he understand that very few people can refinance anyway right now. Even with prime credit. I know many mortgage brokers and loan officers that tell me what's going on in the industry and it's not loans. They are down because there are no more mortgage products to sell. It's all vanilla products and square wholes. Either you fit in the narrow square hole or you don't and for most homeowners in America, THEY DON'T!
Quote:
Schumer, a member of the Senate Banking, Housing and Urban Affairs committee, asked Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke and other federal regulators to get behind a plan to provide $100 million to not-for-profit housing groups to help borrowers refinance their subprime loans, spokesman Brian Fallon said. Fallon said that 20% to 40% of borrowers hit in the subprime lending crisis should have qualified for prime-rate loans.
Schumer noted that the prevalence of securitization in the mortgage industry has slice-and-diced individual home loans. With few of today’s lenders holding on to the mortgages they underwrite, borrowers facing resets on their adjustable-rate loans frequently have no intermediary to negotiate with on the terms of a potential workout. Schumer wrote in his letter that $100 million would not be enough to help all the borrowers needing to rework their loans. “I urge you to ask the administration to come up with quick additional financing,” Schumer wrote.
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Money is needed to fund non-profits yes, so they can reach borrowers to perform loan modifications. They need money to market and advertise free services to these homeowners because many people I talk to are unaware that they can get help for free. Many non-profits are certified HUD housing counselors and that they may have one right in their home town. If you can't refinance and your going towrads foreclosure then conatc a local HUD non-profit agency to help you.
You can call HUD Toll FREE (800) 569-4287 or visit there website at
http://www.hud.gov/foreclosure/index.cfm.
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