There is No Limit to Idiocy

December 8, 2011

Loan Modifications

What happens when you get two idiots in a fur covered van?  A movie called dumb and dumber.  Very funny indeed.

What happens when you get 485 idiots in one city?  Congress, that’s who.

Case in point – the conforming loan limit.  Leading the jester parade is Robert Menendez (D) New Jersey.

What the reversal has effectively done is extend the exposure limit on Fannie / Freddie.

Moreover, one only need look at who benefits from this in order to see the machinations behind it.  Now, before you start screaming “CONSPIRACY NUT!”, hear me out.

The person introducing the repeal was the representative above.  Robert Menendez has been drinking Obama Kool-Aide for a long time.  Why is this a perfidious connection (in this context)?

Because of the Obama act of trying to jump on the bandwagon of the private sector banks who have begun to implement programs to modify mortgages that are “out of the box”.

You see, recently The President orated that he had “motivated” mortgage lenders to modify mortgages in the area of principle reduction.

The egg on his face came when he said that if congress would not act, he would.  Blah, blah, blah.

Yeah, if only he had done something a year ago when there was no election looming and it had become painfully clear that his HAMP program has been a dismal failure by private sector comparison.

Fast forward one year to 2011 and said looming presidential race for 2012.  You see, this time he will to run on his record.  How is this connected?

Mr. Obama controls 95% of the mortgages in the country and Fannie / Freddie policy is to not modify mortgages through principle reduction.

This means that if the conforming limit was reset at a lower rate than when a mortgage was originally written, there would be no way to refinance the mortgage because it would be well outside of underwriting and risk guidelines.

Therefore, he needed to reset the conforming limits or, repeal the adjustment made Oct. 1, so that his self aggrandizing program for refinance would work.

It is not a question of whether this is the right thing or the wrong thing to do.  In fact, it is the wrong thing for many reasons.

The truth is that it should have only been adjusted for those people currently holding a mortgage.  That aside, the question is what motivated him to act.

The conditions affecting the American People have not changed.  What has changed is his situation and the fear of being a one term president.

I personally believe that ship has sailed for him anyway.  But as an independent, I am stating emphatically that he has acted in this case in his own interest.

Furthermore, the increase on the limit is a foolish thing to do on a wholesale basis. Why?  Because it allows for new exposure at levels the American People cannot afford to absorb.

But that’s just me.  Who am I, anyway…

Appraisal Source is a New York based residential real estate appraisal firm. Their highly-qualified appraisal staff of New York City and Long Island appraisers provide independent residential real estate appraisals for a variety of purposes.

Here’s the original article…Senate backs plan to help Americans buy homes

Like This Story? Please Share!






Other ways to share:

  What Do You Think?  We'd love your feedback!

Click here to post a comment

Comments are closed.