My mortgage meltdown cleanup plan.
I watched MSNBC’S Hardball with Chris Matthews yesterday and listened to Jim Cramer of “Mad Money” and Peter Morici, Business Professor of the University of Maryland give their view of how President Barack Obama should tackle the mortgage mess. The Republican Party has made it their business despite deregulation, taking this country to war and cutting taxes at the same time, not to support cleaning up the deep hole they have led this country into. Based on what I heard last night this is my brief, but possible 10 point plan to tackle the mortgage meltdown.
1. A flat across the board 4% standard mortgage financing rate.
2. Monthly payments may be no more than 33% percent of net income.
3. Only primary residence will qualify for this financing.
4. 15% reduction across the board on the principle of the current value of the home.
5. Remove toxic loans to a resolution trust as was done during the savings and loan failure.
6. Secondary house financing at 7.5% i.e. Summer homes, rentals.
7. Only legitimate banks can handle financing of these loans.
8. Bank must hold loans for 50% of the life of the loan; i.e. 15 years on 30 year mortgage.
9. Banks must repay toxic loans before paying dividends, bonuses or raises to CEO’s.
10. All loans sold after half life be sold at cost, no increases in interest rates to home owners.
Take this proposal to the Republicans after sharing this with all of Americans and posting it online, then start bargaining from there.
© 2009, agentleman.
