Bailouts are in the news every single day, but more and more homeowners and those hoping to qualify for a mortgage loan any time soon are wondering wh...
Bailouts are in the news every single day,
but more and more homeowners
and those hoping to qualify for a mortgage loan any time soon are
wondering what is in it for them. When Treasury Secretary Geithner finally
came out with a mortgage plan and bank bailout scheme, it seemed like it
might have held the answers needed, but unfortunately the wording did not
help those not well versed in legalese. This keeps those with an eye on
mortgage rates wonder what the Obama Administration truly offers to do for
homeowners.
In an effort to explain the plans the Obama Administration has for
homeowners and those aspiring to hold a mortgage soon, Mr. Geithner held a
press conference that discussed TARP, the current status of the mortgage
industry, and also the urgent need to halt runaway foreclosures. In stark
contrast to the protestations of change stood the seemingly indiscriminate
bailout package that supplied much needed funds to struggling financial
organizations without actual oversight.
Rather than compelling bankers to turn around and use the funds to lend to
consumers in dire need of help, recent scandals have revealed that a good
portion of the funds has been allocated to back pay and also bonus
payments promised to employees and officers of the corporations. In other
cases, these funds have been used to shore up the banks’ position in the
business world and to ensure that they would be competitive and could hold
on to some investments that perhaps otherwise would have had to be
liquidated.
Consumers, in the meantime, found themselves on the short end of the
stick. Elizabeth Warren, in charge of TARP oversight, reported back that
taxpayers actually lost about $80 billion in the recent bailout
transactions and rather than helping consumers, banks took the money and
ran. Business that failed to receive loans closed their doors or cut jobs,
while homeowners that could not get the mortgage bailout they required are
facing bankruptcy. Those who would have purchased a home had to move on
and continue renting, while banks have greatly curtailed their mortgage
lending practices.
In the meantime, the Obama Administration is working on its deal to ensure
a refinance package that allows homeowners in danger of foreclosure to get
out from under oppressive mortgage packets. At this stage it is uncertain
what the actual fiscal impact will be, whether the US Treasury is going to
discover the one surefire means of fixing and overseeing a banking system
that has been out of controlled for a prolonged period of time, and of
course what the lending lull will continue to do to the American
economy.
It is a sad state of affairs that banks feel little gratitude to the
American taxpayers for the lifesaving infusions of cash into the companies
and corporations, and rather than returning the favor are looking for ways
to make lending even harder. On the flipside, the fact that banks have
been burned by consumers fudging numbers and a mortgage industry bent on
helping them, most likely accounts for the reasons why there seems to be
little love lost between banks and loan hungry consumers.
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mortgages, you can visit our site www.lender411.com.
