The Standard-Examiner has another fascinating article today, wherein Ogden Journalistic Legend Charlie Trentelman dives into the issue of what local lenders will be able to do with their part of the $75 Billion that BIG Spender Obama plans to dump onto the US economy, to bail out the 8% or so of American homeowners who are having trouble with their mortgage loans. Real estate lenders, and holders "in due course" of promissory notes and real estate securities are also particularly interested in this new demonstration of federal Big Gummint Spendin' Largesse, as is evidenced by this comment from Bank of Utah's own Vice President Scott Parkinson, who eagerly mentions possible "incentives":
Parkinson said that, as he understands it, two types of homeowners can benefit from the program: people who are behind on their payments, and people whose homes have lost so much value that they are no longer worth what the mortgage has them paying.Like Mr. Parkinson, we're still waiting to see what kind of generous incentives will flow from the taxpayers to persuade lenders and holders in due course to modify existing real estate loans.
The second kind may get an opportunity to refinance, he said, but with limits.
For people who are behind on payments, he said, the program depends on the cooperation of the mortgage holder.
“I think most of it is voluntary on the part of the mortgage holder to refinance, but they’re going to incent them to do it,” meaning mortgage holders will get incentives to take part in the program.
Just for yucks, BTW, we'll post here a most remarkable YouTube video, demonstrating how the traders on the Chicago Mercantile Exchange reacted to the announcement of Obama's plan a couple of days ago, to bail out individual homeowners who borrowed more than they could afford for neighborhood home loans during the recent real estate bubble phenomenon. Watch CNBC's Rick Santelli effortlessly rally the crowd on this issue on the trading floor of the Chicago Mercantile Exchange:
This reaction to Obama's mortgage borrower bailout scheme is interesting too, we believe:
• Insane America: Obama Wants You to Bailout the Asshats Who Live Next DoorComments, anyone?
