Crooked Senate Passes RE Bagholder Welfare Program
Want to shove the risk of your crummy jumbo loan onto the already-overburdened American Taxpayer? Then today's your day. The Senate's "stimulus" package is really an attempt to help crooked realtors, crooked banks, and bagholding borrowers shove the risk of their giant loans onto the rest of us. Oh, and Congress says they have to do it without charge -- so you know who will be left holding the bag when these jokers get the numbers wrong. After all, they're "too big to fail" right?
These people are dispicable, pandering idiots.
Title II: Housing GSE and FHA Loan Limits - (Sec. 201) Raises the statutory ceiling on the maximum original principal obligation of a mortgage originated between July 1, 2007, and December 31, 2008, that may be purchased by either the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac). Disregards mortgages purchased with the increased ceiling amount for purposes of meeting certain housing goals established under the Housing and Community Development Act of 1992.
Expresses the sense of Congress that Fannie Mae and Freddie Mac should securitize mortgages acquired pursuant to the increased conforming loan limits of this Act if the manner of securitization does not: (1) impose additional costs for mortgages originated, purchased, or securitized under existing limits; or (2) interfere with the goal of adding liquidity to the market.
(Sec. 202) Establishes a temporary loan limit increase for FHA-insured mortgages in specified high-cost areas for which a borrower received credit approval by December 31, 2008.
Grants the Secretary of Housing and Urban Development (HUD) discretionary authority to increase loan limits in 2008 based upon the size and location of residences in particular areas.
Directs the Secretary to publish the median house prices and mortgage principal obligation limits as revised by this Act not later than 30 days after its enactment.