AP: bailout $100 billion for actual mortgages

anyone remember seeing a piece that read ... if taxpayers were to pay off every homeowner's mortgage -- the entire loan -- for all folks that were three months or more behind, that it would cost us just $100 billion?

looking for the story and can't find it.

link?

 

I didn't see it, but it seems you're making the mistake of believing the government and banking industry want to bail out homeowners, not corporations. You can't expect the corporations to get bailed out on $100 billion when they still have to give their inept execs a few more million to make sure they land on their feet. :

 

oh, i agree with what you're getting at. but i was making a point on another site i visit, and wanted shoot somebody a link.

 

Exactly. This isn't about us. It's about big bidness which was too stupid to do things the right way.

 

Big business wasn't stupid. They were greedy.

 

Tom, I remember that story too. I am looking but cannot find it.

As for big business not being stupid and just greedy. You're wrong. They were both, and at the same time were offering money hand over fist to people who should not have qualified for fear that they would be penalized by the government for not getting low-income borrowers into houses.

This was truly a combination of big business and the government screwing things up together.

And we the taxpayers will end up having to foot the bill.

 

thanks, red. if you do find it, please send it along.

and, yeah. still to this day, the whole bottom line of a home loan is ridiculous. i bought not too long ago and was approved for way, way more than i could ever afford. and, to be honest, it's tempting as hell to slide your family into your "dream home" and not something that's solid, yet practical.

 

I find that number seems kind of low — that works out to about $333 per person or maybe $1,000 per average household. Basically one mortgage payment. If $100 billion takes care of it, then we're in better shape than I feared.

 

How would they be penalized by the government?

When did government ever punish banks for not giving out high-risk loans?

 

Buck...read about the Community Reinvestment Act, and this is in the Fed's guidelines...."Lack of credit history should not be seen as a negative factor,"

 

All of this blame on the CRA is counterintuitive dissembling. "THEY MADE US GIVE OUT BAD LOANS" is bullshit. The credit problem also bigger than just housing. Sales of predatory credit products has run rampant for the last two decades with little or no oversight. Think how many credit cards have arrived in your mailbox. The fact is giving out bad loans was an extremely profitable business for these companies ... until the music stopped. And the government, through deregulation, stood idly as these institutions sold ARM loans like crack in schoolyard.

 

The penalties, Ashy? What penalties were there for these lenders if they did NOT give out these bad loans?