HELLO SUCKER

PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay Private Mortgage Insurance (PMI). PMI plays an important role in the mortgage industry by protecting a LENDER against loss if a BORROWER defaults on a loan.
 
Now, let's see...
 
On October 3, 2008, the Senate passed the $700 billion bank bailout bill. The bill established the Troubled Assets Recovery Program known as TARP.  TARP was partially financed by the taxpayers ($0.42 on the dollar).
 
Taxpayers are homeowners but strapped by unemployment and failing to meet there mortgage commitment, they are subject to foreclosure by the banks. So, the taxpayer says, "I bailed you out and the bank says fine but I am not bailing you out."
 
So, why can't government establish a PMI  for taxpayers?
 
The homeowner purchases the insurance and it covers the mortgage if the homeowner becomes unemployed. Essentially taxpayers are bailing out other taxpayers instead of bailing out banks. Being broad based and based on actuarial risk assessment, it would be relatively inexpensive and unlike the bank bailout, it would be voluntary...unlike TARP.  
 
The answer is SIMPLE. Politicians, one and all, don't give a flying f*** about you. Why should they? You are required to pay taxes; you have no power; you don't fund their reelection campaign. And...
 
Banks don’t lose a dime on foreclose”, states banking insider Matthew Lexus a.k.a. the Former Fat Cat Banking Executive.  “In many cases the underlying loan may be guaranteed by Freddie Mac, Fannie Mae, Ginnie Mae or an insurance company so when a property is lost because of foreclosure, the bank doesn’t have a vested interest in the loan because they are simply the servicing bank.

In addition the costs associated with that foreclosure process is reimbursed by Freddie Mac or Fannie Mae.  The bank could, in fact make money when a loan goes into default that is guaranteed by Freddie Mac or Fannie Mae because they may have another opportunity to provide financing for the new buyer (that’s where they make money, all those fees you pay when you initially take out a mortgage) and the process begins once again.”

 By the way if you didn’t already know, Freddie Mac and Fannie Mae is now owned and controlled by the U.S. government courtesy of another bailout for corporate Fat Cat Titans.  Between the two companies they insure about half of all mortgages in the United States. (Over 5 Trillion dollars worth it’s estimated)

“It’s really a shell game of smoke and mirrors.’ states Lexus.  “The banks are singing the blues making it appear they are on the verge of financial collapse because of the financial crisis they essentially created themselves.  The only way the bank loses when a property is foreclosed upon is when they lose the fees paid to them to service the loan.”

You see. Life 101. Nobody gives a s*** about you.

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Permalink Reply by George R. on October 28, 2011 at 9:33pm

What part of don't buy something you can't afford was part of this? The individuals buying the homes knew this when they signed the paper work. Each and everyone of them knew this from the start. They did it any way. Dumb should be punished!

The banks loose money when a property is vauled beyond it's true worth, ( Housing Buble 101 ) They pay out $200 thousand for a property now worth $70 thousand when it forecloses. Freddie and Fannie can't cover that loss x 10 million.

If your buying a home you OWN a TV, and every sigle person who lost their homes saw the AFLAC duck. Insurance? Protect your life style, your investments? WHAT EVER... Live below your means. Not at your means! Bad things happen to EVERYBODY at some point in their lives and It's a crying shame that the hard fact of life is " Stupid is, as Stupid dose." You put down your money and you take your chances. Indiviuals bought property during the buble they hoped to turn a profit on in a few years. They weren't buying homes to live out their lives in. Greedy get rich quick indiviuals were not forced to buy these inflated properties they couldn't afford. Foreclosures happen in any economic enviorment at a rate of around 9%. The rate is about 7% higher than normal. Combinded with 3x's the losses you have a finacial disaster.

Crying "VICTIM" where's my free money?! I want a bail out too! BS ...How long dose unemployment last these days? 693 days. Can you say Goverment bail out x 30 million. Corprate Fat Cat Titans make the jobs for everybody in one way or another, without them forget about your creature comforts. If the US finacial mega institutions fail, the economy will fail across the world.  We will be in a war worse than anything that human history has documented to date. If the American people don't pay out in hard earned cash, they will certainly pay in American blood.

Learn your world history, Learn to take resposiblity for your actions. Don't expect someone else to pay for your misfortunes. 

Permalink Reply by frank beebe on October 29, 2011 at 9:54pm
INSURANCE IS NOT FREE MONEY. WHETHER ITS LIFE, AUTO, OR MORTGAGE
Permalink Reply by George R. on October 30, 2011 at 2:01am

True, but we are only talking about subsidizing the payments on your morgage. Not the total note. Your veiw of the Banking Bail out is as if you were looking at an Elephant under a micro scope. Your using normal morgage information and applying it to an abnormal event.

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