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Congressman Mel Watt of North Carolina looks to be the President's choice to replace Ed DeMarco...

Congressman Mel Watt of North Carolina looks to be the President's choice to replace Ed DeMarco as head of the FHFA. Getting rid of DeMarco has been a popular idea among many in the Administration as he has consistently blocked plans to implement some sort of principal forgiveness program for underwater homeowners.
Comments (9)
  • Bret Jensen
    , contributor
    Comments (9998) | Send Message
     
    Let the bailout of homeowners who lied on their mortgage applications and now cry "victim" begin.
    1 May 2013, 07:35 AM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    AKA "buying votes with other people's money".
    1 May 2013, 07:38 AM Reply Like
  • janetlyn
    , contributor
    Comments (2) | Send Message
     
    No Bret, it's about helping people who were lied to about their mortgage terms under Bush administration. Can't you get anything straight? geez.
    1 May 2013, 09:36 AM Reply Like
  • ericmcarter
    , contributor
    Comments (180) | Send Message
     
    Janet... You're Awesome!!! I totally agree with you!!! How can you blame borrowers when it was the BANKERS who broke down their doors, dragged them out by their collar to look at huge homes they knew they couldn't afford, convinced them they needed said homes, kidnapped them and drove them to the local bank/mortgage office and forced them to sign loan documents with a gun to their heads? Those evil bankers... oh wait....
    1 May 2013, 10:21 AM Reply Like
  • kmi
    , contributor
    Comments (3992) | Send Message
     
    eric, I would like to see how well you perform in a basketball game against NBA players. Because fundamentally, that's what you are describing. Borrowers for home loans are typically the least sophisticated people in the room. The claim that banks were robbed is ludicrous. With all their resources, they couldn't figure out who was creditworthy and who was not? I call BS. Biiiiiiiig BS.

     

    Bank apologists are good for laughs.
    1 May 2013, 10:28 AM Reply Like
  • RyanH
    , contributor
    Comments (126) | Send Message
     
    KMI,

     

    Bankers cannot cry foul anymore than the borrowers can. The bottom line is that everyone got greedy. While I beleive that overall some principal forgiveness is the best thing for our economy, I cringe at the moral hazard it creates. The borrowers (sophisticated or not) maintain a certain level of responsibility when borrowing money. We are all accountable for the decisions we make.

     

    Ryan
    1 May 2013, 10:34 AM Reply Like
  • kmi
    , contributor
    Comments (3992) | Send Message
     
    Don't get me wrong, I don't believe in principal forgiveness for the most part as I believe that's just another avenue for those morally bankrupt to game the system, but I was in the thick of it when housing imploded and I have a hard time buying the schtick that banks aren't the most blameworthy.
    1 May 2013, 10:58 AM Reply Like
  • ericmcarter
    , contributor
    Comments (180) | Send Message
     
    KMI... Please quote the exact words in my comment where I sympathize with banks or bankers or suggest "bankers were robbed". I was being tongue-in-cheek with regards to the fact the borrowers were not forced to seek out, buy (i.e. finance) homes and finance with unsustainable mortgages. I'm not sure wherein the basketball analogy comes in or makes sense. Borrowers weren't forced to do anything just like I would never be forced to play a pick-up game with NBA talent.
    1 May 2013, 11:10 AM Reply Like
  • ryanmck
    , contributor
    Comments (20) | Send Message
     
    Mel Watt: Mr. Watt is a southern, black, attorney, legislator from North Carolina. He graduated from York Road High School Charlotte, NC. UNC Chapel Hill, BS in Business Administration in 1967, and JD from Yale in 1970. He served one term in NC senate 1985-86. He was elected to House in 1992. Committee assignments: Committee on financial services, Financial institutions, consumer credit, Subcommittee on Insurance, and housing and community. In 2009, fellow congressman Ron Paul reported to Bloomberg that while Paul's bill HR 1207, which mandates an audit of the Federal Reserve, was in subcommittee, Watt had substantially altered the substance of the bill, a move which had "gutted" the bill's protections. (Watt appears to be opposed to federal reserve auditing.) Watt's largest contributors included American Express, Wachovia, Bank of America, and American Bankers Association. Watt introduced legislation to slash funding for the Office of congressional Ethics. He was accused of "racial Gerrymandering" to promote the election of black officials. (reference wikipedia). In summary, he appears to be in favor of strong government (without auditing or ethics reviews), working class interests and big banks. If he supports Obama's push to forgive under-water home owners, it may be bad news for the books at FNMA and FMCC. Alternatively, FNMA and FMCC are indespensable tools of the socialist goals of the democrat regime. It would be in the interest of the democrats to keep these institutions viable, and profitable. If they are not viable, access to housing by the working class will drop. The big banks have largely stopped the bundling and insuring of home loans as the vast majority of this business is done by FNMA/FMCC. Funding working class real estate is line of business that has been largely abandoned by large banks. It will be interesting to see how Mr. Watt negotiates his alliance with the Obama preference of forgiveness, against the fiscal demands of FNMA/FMCC.
    1 May 2013, 03:51 PM Reply Like
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