Obama has taken over banks, auto companies, health care and student loans. Now he wants the mortgage industry too.
The Obama administration plans to overhaul how it’s tackling the foreclosure crisis, in part by requiring lenders to temporarily slash or eliminate monthly mortgage payments for many borrowers who are unemployed, senior officials said Thursday.
Banks and other lenders would have to reduce the payments to no more than 31 percent of a borrower’s income, which would typically be their unemployment insurance, for up to six months. In some cases, administration officials said, a lender could allow a borrower to make no payments at all.
OK, that is pretty bad. But just wait, it gets MUCH worse.
…the government will for the first time provide financial incentives to lenders that cut the balance of a borrower’s mortgage. Banks and other lenders will be asked to reduce the principal owed on a loan if it this amount is 15 percent more than their home is worth. The reduced amount would be set aside and forgiven by the lender over three years as long as the homeowner remains current on the loan.
I was going to say “unbelievable” but it’s not.
Like Al Sharpton said. “…the American public overwhelmingly voted for socialism when they elected President Obama,”
Too bad they were too stupid to realize it.