Beside being the champion of Middle Class mortgages there are a lot reasons the nation should be proud of it's government programs.
To begin, it is important to understand whom in Washington, DC is writing the rules.
President Obama congratulated Representative Melvin L. Watt, left, after nominating him on Wednesday to lead the Federal Housing Finance Agency.
To begin, it is important to understand whom in Washington, DC is writing the rules.
By ANNIE LOWREY
Published: May 1, 2013
WASHINGTON – President Obama on Wednesday (click here) nominated Representative Melvin L. Watt, Democrat of North Carolina, to become the overseer of the government-backed mortgage financiers Fannie Mae and Freddie Mac.
If approved by the Senate, Mr. Watt would replace Edward J. DeMarco, who has been acting director of the Federal Housing Finance Agency for more than three years.
Mr. Watt is a lawyer who has represented North Carolina in Congress for the last two decades. If he won Senate confirmation, he would become a powerful economic policy maker, as the housing market recovers and the White House contemplates the government’s future role in it....
I have had the pleasure of meeting a local officer of the 5/3 Bank recently. He talked me into opening an account with the back. Oh, the name is stated, "Fifth - third Bank." Strange name, isn't it? It has a history that dates back to the nineteen hundreds. It was a consolidation of the Fifth Bank of... and the Third Bank of ....
No, matter. I sat in the branch manager's office and spoke about their programs. The issue of mortgages came up. They have a great car loan program at one percent for new borrowers. But, I wanted to know if they participate in or have participated in all these wacko Wall Street gimmicks that caused the global economic collapse. He stated no. I then asked how they handle their mortgages.
The gentleman explained to me that 5/3 Bank serves all their own mortgages, but, sells them to Fannie and Freddie. I asked him to explain why 5/3 Bank did that. He stated it was the only way a bank the size of 5/3 Bank could sell mortgages. He then went on to say what the assets of 5/3 Bank was and how they have grown over the years.
So, then I said, "Let me get this right." "The much maligned government program actually allows banking chains like 5/3 Bank to service an entire area of the country and provide jobs and this level of personal service."
He stated, "Yes, if we didn't sell our mortgages to Frannie and Freddie we would not be in the business of helping the community own their own homes." With that we finished our business and I went on my way happier than I was before.
You see, no one bothers to explain to the public that the giant government mortgage companies are vital to the operation of smaller bank chains, and mind you 5/3 Bank is not all that small either. But, these smaller chains could not exist without our government programs. It is the small banks that were devastated when the global economic collapse occurred.
Are people following this? I stated, "It is the small banks that were devastated when the global economic collapse occurred.
Once again, It is the small banks that were devastated when the global economic collapse occurred."
The lousy Wall Street SOBs carried out their idea of fun and reaped in not only money from the USA government in a bailout, they also annihilated their competition with the exception of those like 5/3 Bank which survived the mess and then went on to flourish.
You see, there are bankers that 'do it right' and 'do it well.' They aren't in it for the quick adrenalin rush of begging for money on their knee in front of Speaker Pelosi, they actually manage the assets they have to last the winters of many other's stupidity.
So, thanks to a very nice young branch manager I know more about my world as it actually and realistically exists than I did before. I mean it isn't easy to simply walk into a board room and ask for explanations.
I hope Fannie and Freddie will be around for a very long time. I expect they will. I also hope the nation recognizes at the time of elections whom exactly is writing the rules. Last time I checked, Fannie and Freddie were demonized and no political advocate could even speak the words yet alone be proud of them. There needs to be a thirty second ad throughout the USA letting everyone know whom supports their mortgage programs and whom doesn't.
I don't know if Mr. Watt had any input to the policy below but it is pure genius. And, you'll excuse me, but, it didn't have to go far to be genius this time either.
Why is this program pure genius? I would think it obvious. Some of the hardest hit citizens in the country are our 50 somethings and older. Their assets were destroyed in 2008. Now, they have hope to return a home mortgage to their agenda of costs of living rather than rent payments that offer no security. This is a very, very good idea and the country will embrace it. It will sell houses and increase the value of neighborhoods. Well done.
Mr. Watt is a lawyer who has represented North Carolina in Congress for the last two decades. If he won Senate confirmation, he would become a powerful economic policy maker, as the housing market recovers and the White House contemplates the government’s future role in it....
I have had the pleasure of meeting a local officer of the 5/3 Bank recently. He talked me into opening an account with the back. Oh, the name is stated, "Fifth - third Bank." Strange name, isn't it? It has a history that dates back to the nineteen hundreds. It was a consolidation of the Fifth Bank of... and the Third Bank of ....
No, matter. I sat in the branch manager's office and spoke about their programs. The issue of mortgages came up. They have a great car loan program at one percent for new borrowers. But, I wanted to know if they participate in or have participated in all these wacko Wall Street gimmicks that caused the global economic collapse. He stated no. I then asked how they handle their mortgages.
The gentleman explained to me that 5/3 Bank serves all their own mortgages, but, sells them to Fannie and Freddie. I asked him to explain why 5/3 Bank did that. He stated it was the only way a bank the size of 5/3 Bank could sell mortgages. He then went on to say what the assets of 5/3 Bank was and how they have grown over the years.
So, then I said, "Let me get this right." "The much maligned government program actually allows banking chains like 5/3 Bank to service an entire area of the country and provide jobs and this level of personal service."
He stated, "Yes, if we didn't sell our mortgages to Frannie and Freddie we would not be in the business of helping the community own their own homes." With that we finished our business and I went on my way happier than I was before.
You see, no one bothers to explain to the public that the giant government mortgage companies are vital to the operation of smaller bank chains, and mind you 5/3 Bank is not all that small either. But, these smaller chains could not exist without our government programs. It is the small banks that were devastated when the global economic collapse occurred.
Once again, It is the small banks that were devastated when the global economic collapse occurred."
The lousy Wall Street SOBs carried out their idea of fun and reaped in not only money from the USA government in a bailout, they also annihilated their competition with the exception of those like 5/3 Bank which survived the mess and then went on to flourish.
You see, there are bankers that 'do it right' and 'do it well.' They aren't in it for the quick adrenalin rush of begging for money on their knee in front of Speaker Pelosi, they actually manage the assets they have to last the winters of many other's stupidity.
So, thanks to a very nice young branch manager I know more about my world as it actually and realistically exists than I did before. I mean it isn't easy to simply walk into a board room and ask for explanations.
I hope Fannie and Freddie will be around for a very long time. I expect they will. I also hope the nation recognizes at the time of elections whom exactly is writing the rules. Last time I checked, Fannie and Freddie were demonized and no political advocate could even speak the words yet alone be proud of them. There needs to be a thirty second ad throughout the USA letting everyone know whom supports their mortgage programs and whom doesn't.
Why is this program pure genius? I would think it obvious. Some of the hardest hit citizens in the country are our 50 somethings and older. Their assets were destroyed in 2008. Now, they have hope to return a home mortgage to their agenda of costs of living rather than rent payments that offer no security. This is a very, very good idea and the country will embrace it. It will sell houses and increase the value of neighborhoods. Well done.
Sunday, May 26, 2013
WASHINGTON — Here’s a heads-up (click here) for the growing ranks of seniors whose post-retirement monthly incomes aren’t sufficient to qualify for a mortgage under today’s tough underwriting standards: Thanks to a rule change by the largest players in the home loan business, you may be able to use imputed income from your 401(k), IRA and other retirement assets to qualify for the loan you want.
That, in turn, could open the door to a money-saving refinancing to a lower-rate loan or a downsizing purchase of a new home.
Top credit officials at Freddie Mac — the giant federally controlled mortgage investment company — said last week that a “little known” policy revision now allows seniors and others to use certain retirement account balances to supplement their incomes for underwriting purposes — without actually tapping those balances or drawing down cash....
