Bailout for Federal Housing Authority inevitable

fha bailout

FHA bailout looming.

With the government’s explicit guarantee of mortgages a bailout appears to be inevitable for the Federal Housing Authority. This should not be surprising news to anyone who follows the mortgage market closely, but a new study by Wharton finance professor Joseph Gyourko makes this conclusion clearer. As a bailout for the FHA looms, Congress will likely become enraged again — on behalf of the taxpayers they represent. What impact would an FHA bailout have on the housing finance policy debate?

 

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U.S. economic uncertainty is the new normal

economic uncertainty

Many Americans are focused on bargains and careful to spend money only when they need.

Financial fears of most Americans seem to be adding to the nation’s economic woes.  The recession. The financial crisis. The housing crisis. The persistently high unemployment rate. And now, the debt debacle.  No wonder American’s feel uncertain about the U.S. economy.

 

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Top 10 Most Hated Companies in the America

freddiemac

Freddie Mac received $50.7 billion in government bailout funds

How much does the public value corporate leadership? Harris Interactive’s latest corporate reputation survey, which measures how Americans view some of the world’s largest companies, suggests that a firm’s brand is even more closely tied to its leadership than many would assume.

 

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Former Chrysler Plant and 3,000,000 sq ft of Equipment For Sale

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Ya gotta be dreaming big…
For the discerning mad scientist: the list of items up for auction by the University of Delaware from a former Chrysler plant in Newark, Delaware. The university bought the plant after it closed, and apparently got the contents as well. The coolest items are probably the 6 axis robot arms, some still in line along assembly lines. There appears to be all kinds of milling equipment as well as other mysterious devices of unsure provenance.
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Judge Wipes Out Couple’s Mortgage Because of Bank’s ‘Repulsive’ Behavior

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Greg Horoski and his wife Diane no longer have a mortgage to pay

A New York judge was so angry with a bank’s “harsh, repugnant, shocking and repulsive” behaviour towards a financially struggling couple that he wiped out their $525,000 mortgage.
In an unusual legal decision that may cheer ordinary homeowners but dismay lenders, Judge Jeffrey Spinner took a tough line on a California-based bank that he considered had been determined to foreclose on the couple’s home in Suffolk County, Long Island.
His ruling against OneWest and its IndyMac mortgage division has relieved Greg Horoski and his wife, Diane Yano-Horoski, of the $291,000 they owed on the original loan as well as $235,000 in interest.
OneWest took $814 million in federal bailout money but has a reputation for foreclosing quickly on property owners who falls into arrears.
The Horoskis bought their house 15 years ago but they refinanced in 2004, taking a sub-prime loan from Deutsche Bank.
The interest rate soared to more than 12 per cent and the bank sued the couple in 2005, when Mr Horoski and his wife began having trouble making payments because of his health problems.
A foreclosure on the 3,400 sq ft bungalow was approved but the couple applied successfully for it to be settled in court.
The judge attacked the bank for repeatedly refusing to work out a deal, for misleading him about the sums in the case and for its treatment of the couple.
He wrote that OneWest’s conduct was “inequitable, unconscionable, vexatious and opprobrious”, cancelling the debt to deter it from “imposing further mortifying abuse” against the couple.
OneWest, which is owned by a private equity group, said it expected to overturn the “unprecedented” ruling on appeal.
Mr Horoski, a porcelain doll seller, told the New York Post : “I think the judge felt it was almost a personal vendetta. It was like dealing with organised crime.”

A New York judge was so angry with a bank’s “harsh, repugnant, shocking and repulsive” behavior towards a financially struggling couple that he wiped out their $525,000 mortgage.

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Desperately clinging to the past, Newspapers struggle to preserve their legacy

Desperately clinging to the past, Newspapers struggle to preserve their legacy

Newspapers struggle to preserve their legacy

Raymond Alvarez:  The White House says there will be no bailout for newspapers.

The media has languished in the grips of depression for 15 years, shedding jobs, and losing ad dollars and subscribers. Indeed, print publishers lately are showing themselves to be yet another example of an old line business that won’t survive.

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Bailout Provides Broader Mental Health Coverage

Bailout Provides Broader Mental Health Coverage

Representative Patrick J. Kennedy speaking at a rally in March on Capitol Hill. Mr. Kennedy
and Representative Jim Ramstad, third from left, led the fight in the House for mental health parity.

More than one-third of all Americans will soon receive better insurance coverage for mental health treatments because of a new law that, for the first time, requires equal coverage of mental and physical illnesses.

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How the Bear Stearns Bailout Saved You, the Little Guy

How the Bear Stearns Bailout Saved You, the Little Guy

Since the Bear Stearns crisis first hit the news, we have been trying to find more information about what was taking place behind the scenes. This piece by John Mauldin puts it into perspective on a level that most everyone can understand. While this doesn’t give the blow by blow details, it does give some great insight into situation, and what could have happened if the bailout did not take place.
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