TITLE I - Troubled Assets Relief Program
Sec. 110. Assistance to Homeowners. (12 Comments)
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DEFINITIONS.As used in this section
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the term "Federal property manager" means
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the Federal Housing Finance Agency, in its capacity as conservator of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation;
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the Corporation, with respect to residential mortgage loans and mortgage-backed securities held by any bridge depository institution pursuant to section 11(n) of the Federal Deposit Insurance Act; and
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the Board, with respect to any mortgage or mortgage-backed securities or pool of securities held, owned, or controlled by or on behalf of a Federal reserve bank, other than mortgages or securities held, owned, or controlled in connection with open market operations under section 14 of the Federal Reserve Act (12 U.S.C. 353), or as collateral for an advance or discount that is not in default;
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the term "consumer" has the same meaning as in section 103 of the Truth in Lending Act (U.S.C. 1602);
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the term "insured depository institution" has the same meaning as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
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the term "servicer" has the same meaning as in section 6(i)(2) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(i)(2)).
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HOMEOWNER ASSISTANCE BY AGENCIES.
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IN GENERAL.To the extent that the Federal property manager holds, owns, or controls mortgages, mortgage backed securities, and other assets secured by residential real estate, including multifamily housing, the Federal property manager shall simplement a plan that seeks to maximize assistance for homeowners and use its authority to encourage the servicers of the underlying mortgages, and considering net present value to the taxpayer, to take advantage of the HOPE for Homeowners Program under section 257 of the National Housing Act or other available programs to minimize foreclosures.
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MODIFICATIONS.In the case of a residential mortgage loan, modifications made under paragraph (1) may include
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reduction in interest rates;
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reduction of loan principal; and
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other similar modifications.
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TENANT PROTECTIONS.In the case of mortgages on residential rental properties, modifications made under paragraph (1) shall ensure
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the continuation of any existing Federal, State, and local rental subsidies and protections; and
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that modifications take into account the need for operating funds to maintain decent and safe conditions at the property.
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TIMING.Each Federal property manager shall develop and begin implementation of the plan required by this subsection not later than 60 days after the date of enactment of this Act.
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REPORTS TO CONGRESS.Each Federal property manager shall, 60 days after the date of enactment of this Act and every 30 days thereafter, report to Congress specific information on the number and types of loan modifications made and the number of actual foreclosures occurring during the reporting period in accordance with this section.
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CONSULTATION.In developing the plan required by this subsection, the Federal property managers shall consult with one another and, to the extent possible, utilize consistent approaches to implement the requirements of this subsection.
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ACTIONS WITH RESPECT TO SERVICERS.In any case in which a Federal property manager is not the owner of a residential mortgage loan, but holds an interest in obligations or pools of obligations secured by residential mortgage loans, the Federal property manager shall
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encourage implementation by the loan servicers of loan modifications developed under subsection (b); and
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assist in facilitating any such modifications, to the extent possible.
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LIMITATION.The requirements of this section shall not supersede any other duty or requirement imposed on the Federal property managers under otherwise applicable law.
12 comments on Sec. 110. Assistance to Homeowners.
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Sec. 110 b 1: "IN GENERAL…Federal property manager shall simplement a plan…"
posted by Spell Checker at September 29, 2008
The word "simplement" should likely be "implement" unless the French word "simplement" is intended here. -
As with the previous version: "reduction of loan principal" is deeply unfair to those who didn't speculate and waited for a chance to buy in.
posted by Dan at September 29, 2008 -
111.b.2:
posted by ccscoachadams at September 29, 2008
Is it troubling to anyone else that our culture no longer even pretends to believe that, when you sign, say, a $200K note at, say, 6%, that you--
a) have any idea what you're getting into?
b) have any realistic chance of fulfilling your financial obligation?
c) have any concept that you shouldn't be rewarded for foolish, ill-advised risk?
d) should feel the negative repercussions of your poor decision?
This is the corporate equivalent of the welfare state toward which we're all headed...as a stockholder living in a mortgaged home, I say vote no. Eat it now, don't save it for later. -
The moral hazard issue is profound. People will now feel it is ok to borrow more money than they can afford since the taxpayers will bail them out.
posted by concerned at September 29, 2008 -
I'm pissed! This is stupid, everyone who bought a home and now can't afford it b/c they did not educate themselves in the homebuying process should NOT GET GOVT HELP! My "smart" tax dollars should not help ppl who made "dumb" decisions in life...LET THEM SUFFER!
posted by I'm so Angry! at September 29, 2008
If I have to downgrade my lifestyle to afford my home, so should those ppl...I'm so angry! -
100% agree with I'm so Angry -
posted by Very Angry at September 29, 2008
"I'm pissed! This is stupid, everyone who bought a home and now can't afford it b/c they did not educate themselves in the homebuying process should NOT GET GOVT HELP! My "smart" tax dollars should not help ppl who made "dumb" decisions in life...LET THEM SUFFER!
If I have to downgrade my lifestyle to afford my home, so should those ppl...I'm so angry!"
WE'LL FIND OUT WHO VOTED FOR THIS AND WHEN THE TIME COMES, THEY'RE OUT.
AND WE ARE ORGANIZED, DON'T UNDERESTIMATE US. -
Your anger at homebuyers is misplaced. It ignores the fact that the inability to meet the note may be legitimate, e.g. loss of job; and it places no responsibility on the institutions that at all times make the rules for their indentured servant-wage slaves regarding borrowing.
posted by young man afraid of thunder at September 30, 2008
Do you really believe the banks were lending to deadbeats as a good faith gesture to the underclass of America?
Hah, they got caught in the default of the high interest lending trap they laid for the growing underclass of America...the biggest mistake made by the banks was a failure to realize that debtors prisons were abolished. Perhaps they could be reintroduced as an investment vehicle for large international banking interests after they receive their bailout.
It will teach the American public some fiscal discipline and prepare them for the hardships of their service in the war against Iran.
Hear me, people: We have now to deal with another race – small and feeble when our fathers first met them, but now great and overbearing. Strangely enough they have a mind to till the soil and the love of possession is a disease with them. These people have made many rules that the rich may break but the poor may not. They take their tithes from the poor and weak to support the rich and those who rule.
-Chief Sitting Bull, speaking at the Powder River Conference in 1877
res ipsa loquitor -
"Reduction of loan principal and/or interest rates" for a select few? Why should it be only for the IDIOTS that bought more than they could afford. Will all other responsible home buyers that have bought within their means and make their payments on time, be give a break??
posted by Ahaheim, California at October 1, 2008 -
This section ought to be renamed "Rewarding the irresponsible through wealth redistribution of the responsible" or Socialism at work.
posted by Elaine at October 2, 2008 -
Thanks to unplanned events and poor decision making (in part due to encouragement from my lender), we are losing our home. This bill is unfavorable in the eyes of the government, lenders, and responsible homeowners/taxpayers.
posted by Dont worry about it you bitter people at October 5, 2008
Did I make a bad decision? Hell yes! Was I (and millions of others) encouraged and deceived into originating my home loan? You betcha.
I take complete responsibility for the decisions that I've made in purchasing a home that I now know was too big and expensive for me. Thanks to my recent diagnoses of multiple sclerosis and thyroid cancer, I missed work. When I was unable to meet my loan obligations, my lender refused to work with me. My loan adjusted, increasing my troubles further.
This is a good thing...I will make better decisions and hopefully not be so gullible next time. Thankfully for you, this "help" is coming too little, too late. Don't you bitter angry people worry about it...I will lose my home and "learn my lesson".
Let's hope next time you make a mistake that you pay the same price. Expect the same empathy that you have given. -
Let the Elected hear your pissed off voices this November by kicking out the LIBS!
posted by The Movement at October 7, 2008 -
To be fair, principle reduction and/or interest reduction should be across the board. All should share equally, as in "all people are equal before the laws". Start ticking down principle and interest and counting the billions. Stop when the bailout approaches an unsustainable amount.
posted by Joe Turnage at October 16, 2008