Senate advances housing bill by veto-proof margin

[Lone_Star_Dem]

Source: The Hill

The Senate voted overwhelmingly to end debate on a major housing-rescue package Tuesday, signaling there is enough support to override a veto.

With polls showing voters increasingly concerned about the mortgage and foreclosure crisis, the Senate responded by setting up a final vote that would authorize a $300 billion expansion of the Federal Housing Administration's insurance program for struggling homeowners. The measure also includes almost $4 billion for grants for states to take over foreclosed properties, a provision strongly opposed by the White House.

Despite the White House's veto threat, the chamber voted, 83-9, to cut off debate. The margin is above the required two-thirds majority needed to override a veto. Final Senate passage could happen as early as Tuesday.

Shortly before the vote, Sen. John Cornyn (R-Texas) filed an amendment that would require all members of Congress to disclose residential mortgages as a liability on their financial disclosure reports, aides said. That amendment has the support of Sen. Barbara Boxer (D-Calif.), chairwoman of the Senate Select Committee on Ethics. A roll call vote is unlikely, but it could get rolled into a manager’s amendment.

Read more: http://thehill.com/leading-the-news/senate-advances-housing-bill-by-veto-proof-margin-2008-06-24.html

[Enrique]

1. Big Bad John!

http://www.youtube.com/watch?v=IA4DiZasp2U

[whistle]

3. All hat and no cattle

[whistle]

2. Exactly what does this part of the bill mean?

<snip>
"...an amendment that would require all members of Congress to disclose residential mortgages as a liability on their financial disclosure reports,"

How will that help struggling homeowners?

[Lone_Star_Dem]

4. It wasn't intended to help struggling homeowners.

Cornyn's intention was to scare House politicians into stalling the bill.

[SahaleArm]

5. Why the rush to keep home prices artificially high?

Why would the government buy foreclosed properties in a declining market? That's just a bank bailout.

If you bought your house on a NINJA, Subprime, I/O, or Option ARM loan and you're upside down the feds will bail you out? That's a big FU to anyone who didn't take a risky loan and expect short-term appreciation.

I guess congress would like to drag this out over 20 years ala Japan. Pathetic.

[Robbien]

6. For every dollar helping homeowners, $200 dollars goes to helping bankis

So your berating homeowners caught up in the corruption racket is so off target here.

The corrupted banking/investment system is being bailed out here, the homeowners are being thrown less than crumbs. So you don't have to worry, the minuscule amount actually used to help homeowners won't artificially keep prices high, the market won't even notice.

But keep on spitting at the homeowners. The Bankers/Investment firms are grateful for the misdirection of your ire.

[SahaleArm]

7. Loan reductions help both equally

$200k to the bank to reduce the loan means $200k less in payments for the home owner. That's in addition to any interest rate adjustments which have to happen to make this nonsense work. Where's my $200k and rate reduction? Either way it's a house speculation bailout.

[Robbien]

9. Nope, the money going to the Banks goes to help the Bank's liquidity

Total Bill gives out three hundred billion. Four billion of that goes to help out foreclosed homes (the stuff you hate so much), which leaves two hundred ninety six billion going to banks and investment firms helping out their liquidity problems.

[SahaleArm]

10. Wrong - $4 billion in grants for foreclosed properties

Foreclosed properties are bank owned (REO's); so the $4-Billion is just a straight bank give-away as the property is already foreclosed upon.

From the article '$300 billion expansion of the Federal Housing Administration's insurance program for struggling homeowners'. This is both a bank giveaway and a loan reduction program that reduces the loan amount for a homeowner.

[Robbien]

11. The article does a nice job of repeating the official press release spin

Please see this article
Bank of America Drafted Dodd's Housing Bailout Bill
http://blog.heritage.org/2008/06/20/bank-of-america-drafted-dodd-bailout-bill/

The bill is basically a bailout of the corruption created by the banks/investment firms.

A few minor bucks where thrown in for "struggling homeowners" to confuse the issue and hide the fact that the FHA money is going to subsidize the banks.

[Lone_Star_Dem]

12. Do you realize you're referencing The Heritage Foundation?

A notorious RW think tank?

Heritage Foundation, The

Washington, DC 20002

The creation of the influential Heritage Foundation was probably the single most important event in the development of a national network of conservative policy- oriented institutions. Heritage was founded in 1973 by the anti-labor, racist, homophobic brewery magnate Joseph Coors together with prominent right-wing activist Paul Weyrich and wealthy right- wingers Richard Scaife and Edward Noble. The initial funding came from Coors ($250,000), Scaife ($900,000), and "significant sums" from Noble. Large corporations, including Gulf Oil, also made early contributions. In the early 1980s, Heritage reported that "87 top corporations" were supporters. By 1995, it had an annual budget of $25 million.

http://www.mediatransparency.org/recipientgrants.php?recipientID=153

http://en.wikipedia.org/wiki/Heritage_Foundation#Policy_influence

[Robbien]

13. I did it on purpose

Since the DUer to whom I was replying seemed to be of the mindset that helping out people hurt by the corporate raiders is a wimpy liberal thing. A link to a leftie site might not have carried as much weight as one from a winger site.

There are other mainstream sites which say the same thing as Heritage, such as:

At the heart of the big bill in the works, from Sens. Chris Dodd (D-Conn.) and Richard Shelby (R-Ala.), is a provision letting the Federal Housing Administration guarantee up to $300 billion in "distressed" home loans. If approved, the Congressional Budget Office estimates it would help some 400,000 homeowners facing foreclosure.

That may sound like a good deal. But consider also that analysts predict lenders will off-load their highest-risk loans on the FHA, an already stressed agency. Is this a good time to gamble? If some homeowners default - the CBO predicts 35 percent will - taxpayers will be left holding the bag.

This is Bear Stearns on steroids. Recall how, earlier this year, the Wall Street investment titan was deemed "too big to fail," and the Federal Reserve pledged to guarantee $30 billion of its most toxic assets? Critics ripped the Fed for rewarding the irresponsible behavior of a private interest by socializing its risk. Well, the amount of loan debt Congress would enable the FHA to assume is 10 times that. How is this in any way fair?

http://www.pjstar.com/opinions/x1816436012/Our-View-Bailout-sweet-bailout

This Mortgage bill is not a bailout of homeowners. Few bills coming out of Congress these days assist the middle/lower classes in any way.

[Lone_Star_Dem]

14. Ah, I see your purpose then.

I assumed you should have known who they were, but one never knows for sure.

Carry on then. My apologies for interrupting your discussion.

[SahaleArm]

15. I never denied that it's a bailout of greedy lenders...

But lenders must have a counter party, in this case home owners or flippers; many of which turned their houses into ATM's. A little option ARM here, a little 100% financing there, a little HELOC everywhere. Suddenly there is this strange notion that it's just unsuspecting home buyers getting trapped in this mess. The low-end home owners are already foreclosed upon and won't be saved by this bill.

This bill is for the next wave - the Option ARM and I/O Prime loan set. It's an absolute joke - I'm working in California and every person and there mother has a negative Option ARM with HELOC's up the wazoo. This is as much a bailout of over-extended home owners who thought home prices will only go up. This bill will just prolong this mentality by keeping prices up.

But quoting the Heritage foundation, seriously?

[happygoluckytoyou]

8. BI-f'in-PARTIZAN.... as soon as the GOP learns to jump the line for america