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Post by jeffolie on Aug 29, 2007 16:32:54 GMT -6
In his letter to Sen. Charles Schumer, Fed Chief Ben Bernanke said:
"It might be worth considering at this juncture whether the private and public sectors, separately or in collaboration, could help the situation by developing a broader range of mortgage products which are appropriate for low-and moderate-income borrowers, including those seeking to refinance. Such products could be designed to avoid or mitigate the risk of payment shock and to be more transparent with respect to their terms. They might also contain features to improve affordability, such as variable maturities or shared-appreciation provisions for example..."
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Post by unlawflcombatnt on Aug 30, 2007 4:24:57 GMT -6
Just lovely.
More Corporate Welfare, disguised as an attempt to "help" borrowers. What this really would do, however, is "help" buyers part with even more of their money, while mortgage originators and financial con-artists continue profiteering. To make things worse, let's give the whole scam explicit government backing, forcing taxpayers to bail it out when it collapses.
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Post by Grapple on Aug 30, 2007 15:32:13 GMT -6
I wondered what “such as variable maturities or shared-appreciation provisions for example” meant so I found the link below So it looks like helping the “borrower” means that they are in debt for most or all of their life. ] So let me guess how this sharing will occur, the borrower gets the debt, taxes and maintenance part of the sharing on a home loan while the lender gets the profit part. news.yahoo.com/s/nm/20070829/bs_nm/economy_mortgages_bernanke_dc
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