Comments on: Government Saves Fannie Mae and Freddie Mac in Unprecedented Bailout http://www.politicallore.com/economy/government-saves-fannie-mae-and-freddie-mac-in-unprecedented-bailout/375 Fri, 19 Mar 2010 17:09:35 -0400 http://wordpress.org/?v=2.8 hourly 1 By: Lisa P. http://www.politicallore.com/economy/government-saves-fannie-mae-and-freddie-mac-in-unprecedented-bailout/375/comment-page-1#comment-8925 Lisa P. Fri, 21 Nov 2008 06:48:44 +0000 http://www.politicallore.com/?p=375#comment-8925 The mortgage bailout plan is especially needed when the mortgage crisis is so bad that it actually threatens a country's. economy and stock market. This usually happens when foreclosure records have been set with millions of households affected. This can occur when the distribution of loans to borrowers are not ptoperly regulated by the government. Apparently, it wasn’t enough to cover the mortgage crisis up with a TARP. No, Treasury Secretary Paulson’s Troubled Asset Relief Program wasn’t the kind of credit repair scores the endangered homeowners needed. Now that Federal Deposit Insurance Corp Chairman Sheila Bair has pushed a new mortgage modification program forward, 1.5 million homeowners will have someone new on their side when they’re facing foreclosure. This $24.4 billion program will be drawn from the $700 billion pool that TARP set up, and it’s a very straightforward system. Lenders will be given a stipend of $1,000 per loan they renegotiate with financially stuck homeowners, and in the event of default on a loan, the FDIC has promised to take on up to 50 percent of the loss. Paulson has condemned this as mere spending that will only bankrupt the FDIC, others view this action on Bair’s part as a needed investment to maintain liquidity in the mortgage industry. While this won’t solve all of the problems at once, it’s certainly a valiant effort to help repair credit, isn’t it? Click to read more on <a title="What is Credit Repair?" href="http://personalmoneystore.com/moneyblog/what-is-credit-repair/" rel="nofollow">Credit Repair</a> The mortgage bailout plan is especially needed when the mortgage crisis is so bad that it actually threatens a country’s. economy and stock market. This usually happens when foreclosure records have been set with millions of households affected. This can occur when the distribution of loans to borrowers are not ptoperly regulated by the government.
Apparently, it wasn’t enough to cover the mortgage crisis up with a TARP. No, Treasury Secretary Paulson’s Troubled Asset Relief Program wasn’t the kind of credit repair scores the endangered homeowners needed. Now that Federal Deposit Insurance Corp Chairman Sheila Bair has pushed a new mortgage modification program forward, 1.5 million homeowners will have someone new on their side when they’re facing foreclosure. This $24.4 billion program will be drawn from the $700 billion pool that TARP set up, and it’s a very straightforward system. Lenders will be given a stipend of $1,000 per loan they renegotiate with financially stuck homeowners, and in the event of default on a loan, the FDIC has promised to take on up to 50 percent of the loss. Paulson has condemned this as mere spending that will only bankrupt the FDIC, others view this action on Bair’s part as a needed investment to maintain liquidity in the mortgage industry. While this won’t solve all of the problems at once, it’s certainly a valiant effort to help repair credit, isn’t it?

Click to read more on Credit Repair

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