And another argument bites the dust.....
pfffft. Hardly. You've made a number of statements in this thread, most of them simply untrue.
Yet another new initiative to bribe people with their own money.
and
By allowing them to refi into an FhA product he is shifting the risk to the gov't and away from the lenders.
and
He is making a mockery of the taxpayer who will be forced to support this middle class welfare project.
until it was explained that FHA is supported solely with mortgage insurance premiums paid by borrowers and not with tax dollars. Undaunted by facts however, you continued
More gov't involvement is not going to help this. It will make it worse and cost everyone a lot of money.
then you proceed to make two contradictory statements
Almost all problems in the economy come from government involvement. People losing their investments in Enron or whatever are examples of "market discipline." It's called risk. Risk means you can lose your investment. That's investing 101. People who bought Enron took risk and lost.
Enron happened as a result of government 'involvement', yet it's an 'example of market risk'? Enron happened because there was insufficient oversight by anybody. (That's why we now have Sarbanes-Oxley
btw)
If they can't afford their house, how is letting the gov't guarantee the loan going to help them? It wont.
Well, yes it will and once again, the 'gov't' is not guaranteeing the loan FHA is, with private insurance premium dollars. A refinance of these mortgages under FHA will lower interest rates (and payment amounts).
But people having trouble paying are foreclosures waiting to happen.
No, they're 'foreclosures waiting to happen' right now. That's the reason for refinancing under FHA in the first place.
Then of course, followed more knee jerk hysteria about 'irresponsible stupid people being bailed out by gubmint..........' yackety quack yada yada. I wonder how many of these critics have FHA mortgages of their own? Maybe some hypocrisy here, eh? Like Limbaugh on drug addiction or Larry Craig on homosexuality.