May 15, 2008

Barney Frank wants the FHA to bail out failed flippers and mortgage fraudsters. Problem? The FHA thinks that's a really f*cking stupid idea.


Monkeys I tell ya. Monkeys.

You'd think Barney and the FHA would have had a little chat before he put together his housing bailout turd.

But that would be competent.


Thanks to Luke over at USNews for the tip. And thanks to Barney Frank for showing us just how well-deserved Congress' record-low approval rating is.

FHA Chief Criticizes Rescue Plan

While most government officials scratch and claw for more authority, Federal Housing Administration Commissioner Brian Montgomery is pouring cold water on a housing rescue plan that would make his agency the linchpin of an expanded federal effort to keep people in their homes.

The House of Representatives last week passed a bill championed by House Financial Services Chairman Barney Frank that would enable struggling borrowers to refinance into more affordable loans guaranteed by the government. The legislation would require a significant expansion of the FHA—an idea recently endorsed by Federal Reserve Chief Ben Bernanke.

But speaking to a roomful of real estate agents this morning at the National Association of Realtors Midyear Legislative Meetings and Trade Expo, Montgomery expressed his opposition to the legislation recently passed by the House:

"As one colleague described it, it is "on steroids" because it throws sound underwriting out the window.

"It moves us toward a federalization of the mortgage market, forces taxpayers to pay for bad loans, and doubles FHA's portfolio, adding hundreds of thousands of risky loans in a Byzantine process that will take years to sort out and create a regulatory nightmare."

37 comments:

Anonymous said...

A woman I work with told me yesterday they have "lost" their home to foreclosure.

I asked her if they had applied for any of the Government 'help" programs & she said "yes, all of them & we qualified for all of them"

And then she added "But Monday, they decided that we still didn't make enough money, so they aren't helping us - we have to foreclose"

I know she had finacial issues 2 years ago because she had Cancer & they are still trying to catch-up finacially.

Good to see these Government Programs at work

Anonymous said...

Barney Frank is definetely a freaking morong that does not deserve his government position. I doubt that anyone in this forum will argue that, republican or democrat.

But isn't it a bit weird that the FHA comes out to say this NOW. Why they hell didn't they open their idiotic mouths a few months back when the idea surface, or they did just find out?????

The FHA is playing the political game here folks. They waited for the "democratic" congress to pass the idiotic bill and now they are cleaning their hands, when they actually created the mess. Just like the white house. Weren't they all pushing this owner society crap Keith??? Weren't they???

End the end they will all say, you see, it was that "democrats" in congress that fucked us up, and the stupid american public will believe it, like they have in the 8 years by voting GW in twice. I blame the democrats for being planely stupid and getting that they are being screwed. What a bunch of morons. They might be scoring points in the short term, but screwing themselves in the long run.

Keith, you know better than that though, and I suggest you start blaming everyone that should be blamed on all your posts. You keep bashing the people that are now "trying" to fix the issue with idiotic ideas, while ignoring the REPUBLICAN morons that pushed for this owner society and created the whole mess.

Dny

Anonymous said...

Democrats.

wake up... this is what democrats have been doing for 100yrs.

guess who invented the income tax...

DEMOCRATS.

wooohooo. Obama would sign this... Change...

yeah...CHANGE the US into a 3rd world sh;thole.

look at any major city...that is the DEMCRATE constituency.

looks like Bosnia, USA

sundry vermin said...

President Obama will gladly rubber stamp anything Frank comes up with.

Reddy Watt said...

Wow, common sense from the head of a giant bureaucracy! That's refreshing first thing in the morning.

keyser soze said...

The amount of paperwork, time, decisions, etc. for ONE foreclosure(NOD to final sale) is huge. This is not going to end quickly. FHA knows this all too well and wants no part of it. Barney needs to stick to what he does best.

christiangustafson said...

Sounds like Barney will really get behind this idea and ram it down our throats.

I'm scared.

theloknesmonster said...

Barney is going to have to have someone start his car for him if this thing happens.

Anonymous said...


But isn't it a bit weird that the FHA comes out to say this NOW. Why they hell didn't they open their idiotic mouths a few months back when the idea surface, or they did just find out?????


This is a new FHA commish and this new plan doesn't require that the FB can afford to repay the loan and is 6x the size of the last plan. I'm sure there is a bit of politics involved too, but I think it's mostly about the level of involvement. Throw all the bums out, both sides of the same crooked coin

dopes said...

You obviously missed the stories of how the disgusting down-payment gift granters, where the CEO's pay themselves hundreds of thousands per year, that were supposedly under investigation by the IRS for tax fraud, won the right to keep giving FB's down-payments to achieve 100% plus financing, which leaves the taxpayers on the hook when these loans default.

Oh, and these loans statistically default far more often than the folks who really put 3% down.

http://tinyurl.com/5deqrj

http://tinyurl.com/47ez9k

DOPES!!!

christiangustafson said...

Barney thinks he can reflate the bubble by pumping load after load of liquidity into the system.

Come on, HP'ers, help me out here.

Anonymous said...

Everyone assumes a room full of realtors can understand a discussion like that - "Byzantine? That means Buy-Now, right? I knew it was true!!"

Anonymous said...

Hey dont knock the Byzantines! They lasted 1000 years. We'll be lucky to last a third of that.

Anonymous said...


Barney needs to stick to what he does best.


Giving his male interns a reacharound?

Mark said...

Barney Frank AND THE ENTIRE DEMOCRAT CONGRESS AND SENATE wants the FHA to bail out failed flippers and mortgage fraudsters. Problem? The FHA thinks that's a really f*cking stupid idea.

There - fixed it. It is all Bush's fault, ya know...

Anonymous said...

When the guy in charge of the organization that would undergo "significant expansion" denounces the plan, well...

Perhaps we could just cut to the chase and draft a bill to funnel taxpayer money to Wall St. directly? At least then somebody might care about our dwindling manufacturing sector and failing infrastructure. Vote with a bullet I say.

keith said...

"Barney Frank AND THE ENTIRE DEMOCRAT CONGRESS AND SENATE wants the FHA to bail out failed flippers and mortgage fraudsters. Problem? The FHA thinks that's a really f*cking stupid idea."

I like that one better too. Wouldn't fit, but it's correct

Bush and the GOP are right on wanting this Barney Frank stupidity ended. And they're wrong on wanting to bail out the bankers.

Dems - give taxpayer money to failed flippers and housing gamblers.

Reps - give money to banks

Both parties - corrupt and not worthy of your support

Anonymous said...

The FHA just doesn't want to be sorting out this mess for the next 10 years.

"guess who invented the income tax...

DEMOCRATS."

I think that was Lincoln during the Civil War.

Doug said...

All loans in foreclosure should be examined by the state's financial division and if found to be a subprime loan the lender of record should be forced to reinstate the loan, and bring it current. If they want reimbursed for the cost, they can go after the people that created the loan. They know who they are. Keep the tax payer and ligitmate borrowers out of this mess.

Anonymous said...

moronic anon... lincoln's civil war income tax was abolished shortly after the war... along with Abe himself.

the current IRS scam income tax has been since 1913.

it was a socialist aka 'progressive' aka the barney franks and barry obama's of 1913 who passed that as their wetdream come true. look how it has destroyed the fabric of our nation.

Used to be..that you worked and earned $100, you took home $100. if you pimped around the ghetto, you starved.

darwinism.

Anonymous said...

Wasn't 2006 election supposed to solve all our problems?

Since November 2006 when democrats took over, gas is up $1.50, we have a full blown housing crash and a looming recession/depression and the Iraq war is no closer to being over.

And yet you idiots want to elect a democrat senator as president.

To paraphrase that ditech commercial....HPers are stupid

Salt Lake Mortgage Guy said...

They waited for the "democratic" congress to pass the idiotic bill and now they are cleaning their hands, when they actually created the mess.

FHA isn't to blame for this. Their originations were down during the boom because they didn't have a no money down, liar loan option. They still don't.

FHA has been a victim to subprime and to have them be on the hook to clean up the mess is pathetic.

mairca izda debol said...


"guess who invented the income tax...

DEMOCRATS."

I think that was Lincoln during the Civil War.


That was a temporary tax to pay for the war. The current IRS/income tax system we have was put into place under Woodrow Wilson, as was the Federal Reserve and the League of Nations, predecessor to the United Nations. If you think about it, Woodrow Wilson did more damage to America than George Bush II and Jimmy Carter combined. Of course he had help from Congress.

Anonymous said...


Dems - give taxpayer money to failed flippers and housing gamblers.


Dems also want to give money to the banks and hedge funds. Having the FHA buy bad loans is funding both the banks. The bad loans on their books are replaced with cash from the FHA. You make them seem so altruistic. I guess you were fooled by Blarney

Anonymous said...

Actually the FHA is and has been the largest Subprime lender out there...If you have moderate to bad credit and essentially no down payment should you really be buying a house?

Abolish the FHA

Ed said...

The bio for Mississippi's newest elected Democrat US-Rep:

Childers became licensed as a realtor while still at Ole Miss. After graduating he joined Robert Davis' real estate business in Booneville and worked there throughout the 1980s. He owns Travis Childers Realty & Associates, a successful Northeast Mississippi real estate firm. .

Hmm I wonder how he will vote on the bailout.

Anonymous said...

Is there any way we can find out what this schlubs investment properties are?

Dollars to donuts he's holding Florida condos as investments and really just wants to bail himself out.

Edgar Alpo said...

Frank plumps when you cook him. He is the Americano snapper turtle. Roasting nicely, juices sizzling. Hit it andrew...

Anonymous said...

"moronic anon... lincoln's civil war income tax was abolished shortly after the war"

thanks for proving my point.

Anonymous said...

I like to know what about the people who already lost there homes .It's just a big mess I don't like anyone to get a bail out it's just not right to people who own there homes so 1 person paid 500,000 and there going to pay LESS than THE GUY NEXT DOOR ? Because he can afford to pay .Then he will stop paying and LOT OF OTHER'S ? This is a mess It's a real shame .

Nick said...

Sooner or later HP'ers a housing bailout will happen. I will benefit from a housing bailout because I bought a townhouse and the value jumped up right as were were closing. The value kept going up, up and up. So I took out cash and to boot, I only put 1% down for the new townhouse. I borrowed 350K and spent it all! I had a one hell of a time. Trips to Thailand, Bahamas, cruises, luxury spa vacations, sex toys, shit from the Sharper Image, nice clothes, etc... So folks like you are THE REAL SUCKERS. The last laugh will be had from the folks like me.

Glenna said...

Sound underwriting principals were thrown out the window the minute the Republicans got into office, that is why we are in the mess we're in. It sounds like the FHA and the Bush administration is worried about what another hole will do to a ship that has already struck the iceburg?

devestment said...

Sooner or later HP'ers a housing bailout will happen. I will benefit from a housing bailout because I bought a townhouse and the value jumped up right as were were closing. The value kept going up, up and up. So I took out cash and to boot, I only put 1% down for the new townhouse. I borrowed 350K and spent it all! I had a one hell of a time. Trips to Thailand, Bahamas, cruises, luxury spa vacations, sex toys, shit from the Sharper Image, nice clothes, etc... So folks like you are THE REAL SUCKERS. The last laugh will be had from the folks like me.

Sex toys and Thailand....

I hope you do get the money. I think you'll need it. I buy distressed value assets and nothing you have intersts me.

Anonymous said...


Sound underwriting principals were thrown out the window the minute the Republicans got into office


I didn't know politicians were in charge of underwriting principals. In the 35 years I worked in the banking industry, it was always the bankers who created the guidelines. I guess it's all the more reason to keep government out of private enterprise.

Anonymous said...


If you have moderate to bad credit and essentially no down payment should you really be buying a house?


Barney Frank thinks it's a human right to own a house you can't afford

Anonymous said...

Seriously, some gay guys bang anything these days. Just look at this frog. Do gay guys are able to vomit? Just curious.

Anonymous said...

The bio for Mississippi's newest elected Democrat US-Rep:

Childers became licensed as a realtor while still at Ole Miss. After graduating he joined Robert Davis' real estate business in Booneville and worked there throughout the 1980s. He owns Travis Childers Realty & Associates, a successful Northeast Mississippi real estate firm. .

Hmm I wonder how he will vote on the bailout.


Is that the great candidate that pundits like Olbermann and Chris Matthews and the DNC are bragging about? Replace an idiot with another and the sheeple cheer. That's what they call "Change" these days in America. Oooohhooo, exciting times in politics. We're saved and rich again!