President George W. Bush's proposals to help homeowners burdened with subprime mortgages they can't afford are a "Band-Aid" that will offer U.S. consumers little aid, investors and analysts said on Friday.

From the White House on Friday morning, the president discussed the need for legislation and changes in the U.S. tax code to help subprime mortgage borrowers avoid losing their homes.

However, analysts and investors said subprime borrowers who are not speculators made up such a small portion of the troubled market that any proposals would bring little change.

"This is more messaging," said Richard Steinberg, president of Steinberg Global Asset Management in Boca Raton, Florida. "It's more pomp."

http://www.reuters.com/arti...

Refinancing to current rates is not going to help most people with the zero down or other goofy mortgages.

They don't have the income and they never will. They had bought homes that they figure they could sell if rates increased. They bought homes as a means to gain income. Not as homes..

I don't see where the FHA cap is increased. That is not going to do much good for California. Incomes in the valley are not large enough to support the marketed homes in the valley. The homes here are relying on transfers from the coastal area selling their homes and having a large down payment to buy here. The coastal area homes exceed the FHA cap in large part. So FHA will not enter the picture.

Those transfers will not be buying here. Homes will not be built in the valley. Jobs will be lost and the number of people buying homes in the valley will decrease even more.

Those in the valley are cashed out. They can not afford much more financing. The devaluation of homes makes that an even greater problem.

There is only one solution to the problems we face in the valley.

That is a huge increase in wages in the valley. And restrained inflation.

The solution isn't to make credit easier or cheap. We did that. That is how we got where we are today.

The solution is to make homes affordable without devaluing the base price of the homes.

That means increased wages. That is the only way..

TSM,

Yep, FHA home must be owner occupied.

FHA home must be owner occupied.

Under current rules.

Look for Bush to push to change them to include speculators and the investor class as they are part of his base.

TSM,

Here's my take on that.

Bush is looking for political revenge against the West coast, north east coast, and the rust belt.

If this FHA thing will help anyone, they will be in the Red states.

I think Florida, Los Vegas and Phoenix are already purple.

Bush is going to beat up on the Blue states in the next 1 ½ years.

From CNBC/KUDLOW,

FHA program will only help 80,000 subprime loans.

There are a total of 3 million subprime loans.

Bush is wrong

again

There is only one solution to the problems we face in the valley.
That is a huge increase in wages in the valley. And restrained inflation.

Can you have your cake and eat it too? 

I don't get it.

Bush said that ``in the coming days'' the FHA will begin a new program called FHA Secure that will permit homeowners who have a good credit rating but can't afford their current payments to refinance into FHA-insured mortgages.

A borrower has always been able to refinance their owner occupied home from a conventional to FHA loan, with credit qualifying. So does this mean income will not be verified under the new plans, only credit? And if you are 90 days behind on your mtg payment, wouldn't your other credit be crappy? Lastly, what about appraised value? Will Bush allow for 100% or more financing to help bail out the borrower?

what are you talking about Ron?

They voted in the "rock" Loretta Sanches over B-1 Bob Dornan with J. Jose J.r. whatever Rodrigueuz voting numerous times from the same address

Dornan had reems of papers to prove it. No one cared

Its becuase the mattloch's and even worse the straddlers like Murphy, etc. that sit aroudn and let it happen so they can feel like they are "superioer" intellectual and "better" than the rest of us that are just trying to get by.

ARe you afraid of them like they are of the Muslimes?

Queet, there has never been a modern, documented case of fraud *BY* voters significant enough to throw an election.  There have been several documented incidents of fraud *ON* voters which threw elections, including Presidential ones.  The claims made by Dornan could not be substantiated (anyone can print off a ream of paper, it's the Xerox age) and trying to do so would have resulted in the kind of genuine voter fraud which gave Florida to Bush:  removing legal voters from the rolls because they had similar names to people who were not entitlee to vote.

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"B-1" Bob's B-1 vitamin shots apparently didn't ward off the Korsakoff's.  Too bad--he used to be a liberal before he lost all the brain cells.

Sorry, your "proof" is no bettern' B-1 Bobs in this regard (presidential elections - Gore v Fla haaaa!)

In fact, I can show more proof of Bobs and than you can of Al's

And thats even with the LSM media deck stacking and time weighing in your favor

Valid point koz

Kozy said: "Refinancing to current rates is not going to help most people with the zero down or other goofy mortgages"

2 and 28's, int onlies, stand alone 2nds, HELOC's, etc.

Forgetaboudid..............

Maddern' hell at bush baby right about now for even talking about helping these d*ckwads out..................

Random--

I used to watch B-1 Bob outa LA on the toob right up until I got drafted in 68.

When was he a lib?

Interesting note (to me at least):  He had this gal on his show with him, Jo Ann Pflug (way back then)

She subsequently played Lt Dish on "MASH" movie which I saw when I was at Phu Hiep. There were some flaps (O-3's) over at Tuy Hoa who saw movie too and one night we got into it at their "O club" as they hated the movie. It was too "anti-establishment". They were right of course but I couldn't see it just then as they had A/C and we slept on ground. Forget about A/C trailers!

I sent her a letter (dummy) and she sent me back an autographed pic which I proudly displayed on my little AO hooch upright locker until DEROS. Funny thing was she signed it "your advid fan in the states"

I had told her I was an avid fan in vietnam.

But I digress......... please tell me when B-1 Bob was a Lib 

I may have overstated the case, but he *WAS* in the March on Washington with Martin Luther King, Jr. and assisted in voter registration in the 60's in Mississippi.  Not many of the conservative sorts were to be seen then.  To me, the liberal position on *ANY* issue is:  I want everyone in the country to have the same rights I have, and I will fight to keep those rights for me *AND* for them. 

Sad, the "conservatives" used to agree with us on the last half of that statement.

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Dornan's statements on gays and many, many other minority groups showed he couldn't quite extend that thought to all, though.  His later life is why Michael Moore  tried to have him committed*, not his early days.

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*I assume folks know Mike was being satirical here...but ya gotta point that out for some.