message
The goal is to help homeowners in trouble, or any homeowner who may be facing a mortgage rate adjustments to their current sub prime mortgage. Once 25,000 at risk people have joined, I will go directly to the Department of Housing and Urban Development (HUD) in Washington D.C and propose a discounted rate for us for the best possible (FHA)Terms available to the market.
Restoring homeownership and fixing in low mortgage rates will lead to increased consumer confidence, rising property values and an overall sense of liquidity and sustainability in the US housing markets.
Predatory Lending is bad and should be eliminated.
My proposal to HUD would be that FHA institute a more effective foreclosure avoidance program with a test pilot for our group of 25,000 members/families at risk to lose their homes due to subprime mortgages.
“The FHA program was created to facilitate the dream of homeownership for low‑income, and minority borrowers with comparatively small down payments. By definition, FHA borrowers have fewer resources than others, and thus are considerably more vulnerable to foreclosure when personal disaster strikes. The loss of a job, divorce, illness or disability can all cause a decrease in income - through no fault of the borrower FHA borrowers to develop a plan to resolve defaults.” Written Testimony to the Senate Committee on Banking, Housing and Urban Affairs regarding the Federal Housing Administration Loan Program June 4, 1998. that can lead to default. Since many FHA borrowers have relatively thin margins of income over debt and limited savings, they have more difficulty than non
For this reason, our test pilot and deliverable would offer lower than market rates and better terms, a deliverable and measured against the current practices recommend by FHA, “which use a greater portion of FHA insurance premiums to save the homes of homeowners facing temporary loss of income, in order to avoid the massive financial loss that FHA would otherwise face from foreclosure. After all, it does not make sense to create a government program to facilitate homeownership without providing an effective safety net to make sure that homeownership can be sustained during periods of temporary financial difficulty.”
“Banking institutions estimate over $500 billion in adjustable-rate home loans—more than 70% of which are to subprime borrowers—will receive higher monthly mortgage bills at the end of 2007. Another $600 billion will adjust in 2008. Depending on how many of these mortgages default, the ripple effect across the financial and insurance industries will be seismic.”
Clearly, our membership of 25,000 which is significantly less than 1 percent of the total population of families at risk total roughly $4 billion dollars in adjustable rate sub prime loans. However, the sheer number of familes joining us will make a large enough impact in Washington D.C. to recognize the need to test, pilot and measure the results of our pilot in helping us with our cause.
