Wall Street Bailout or Democrat Handout?

Enough is Enough. I am sick and tired of watching all the lies and distortions about who is to blame for what is going on with Wall Street.

It isn’t the fault President Bush or Senator John McCain. They both had enough foresight to warn a America of an impending financial disaster. Unfortunately, it fell on deaf ears or was shouted down by leaders in the Democrat party that were busy padding their pockets while helping their friends get rich and Senator Barack Obama is in it up to his neck while wagging a finger of condemnation and blame at the Bush Administration and Republicans in general.

Now I don’t expect Barack Obama to nationally accept blame for this Wall Street crisis personally or for his party. Honesty and being forthright have never been a priority for Mr. Obama however to blame this Administration and the Republican party is much like an arsonist accusing the Firemen of torching the house.
What is even worse is the fact that Obama is lying about it and the Main Stream Media is swearing to it. “Give Me a Break!” said President Clinton about Obama during the primary and he was right! We have ventured so far from reality and truth that I am not sure that there is enough time before the election to set the record straight.

I have bit my tongue on this subject until it is raw. Now we have “Obama Truth Squads” running amuck in the state of Missouri with Prosecutors and Sheriffs threatening reprisals on Obama detractors. So much for freedom of speech.
Speaker Pelosi and Senate Majority Leader Harry Reid continue to spew their partisan venom any time they are in front of a camera or microphone. The majority of which are half truths or outright lies. An honest Bipartisan effort will be needed to pass this legislation and Pelosi and Reid can’t shut up long enough to get the job done.

Senator John McCain – Stop attempting to be a Statesmen during this campaign. The McCain I know is a warrior, a scrapper and speaks the truth regardless of who it offends. A straight shooter that will stick up for me! Stop playing nice with someone that endangers the financial and physical security of my family. When Sen. Obama lies, call him out on it. Show us some passion Senator! Don’t show up at a gun fight with a pocket knife! We are counting on you!

Senator Barack Obama – Stop looking into the camera and telling me that you are going to reduce taxes for 95% of Americans when 40% of Americans do not pay taxes. I may not have graduated from Harvard but I can do simple math so stop insulting my intelligence. I have researched your paper thin resume and find you sorely lacking. How many days have you actually served on the job as a US Senator? I believe it is less than 150 actual days on the job. That is less than 6 months actual service as a US Senator. The rest of your time has been spent running for the Presidency. Not only do you have very little experience may of the proposed bills that you have cosponsored shows that you are not only naive when it comes to the economy you are dangerous. You are dangerous on the economy, dangerous on your foreign policy views, show no character with your consistent lies and misrepresentations, demonstrate lack of judgment with by your past associations and your radical socialistic views and associations present a “Clear and Present Danger” to our great nation Sir.

Our financial house may be on fire do to the policies of liberal congressmen forcing banks to generate low income and sub-prime loans while protecting Fanny & Freddy from closer scrutiny but increasing taxes on business and capital gains as Sen. Obama proposes will be like nuking Wall Street.

The Republicans have a plan to help Wall Street with a “Work Out” not a “Bail Out”. By suspending Mark to Market accounting and removing capital the gains tax Wall Street will realize instant liquidity and credit will again be accessible. Other responsible proposals like Federal Insurance on bad loans make more sense and reduces exposure for the tax payers.

The rescue Bill needs to be a stand-a-lone piece of legislation. We don’t need to send billions to a partisan political group like Acorn as proposed by the Democrats or keep home owners in homes that they can not afford at my expense. House Republicans need to make sure that the “Wall Street Bailout” does NOT become another billion dollar “Democrat Handout” so they can buy votes with tax payer money.

Do I agree we should bailout Wall Street? No I do not however our financial house is on fire. Let’s do what is needed to put the fire out THEN look for the arsonist. Unfortunately that will be well AFTER the election is over. I hope everyone takes some personal responsibility to research the real cause of this crisis before they vote on November 4th. If they don’t the only “Change” we have may be what is left in our pockets.

Wake Up America!

In my first article in this mini-series I touched on Sen. Barack Obama’s STOP FRAUD Act. As it turns out he is not the only Democrat that is clueless on the economy and real estate.

There is pending legislation out there that could throw an already crippled real estate industry into cardiac arrest.

Clinton and Obama on the Campaign Trail

We see Hillary Clinton’s and Barack Obama’s smiling faces plastered all over the news while they campaign their hearts out to ensure they receive enough delegates to fight for the Presidency of the United States. However, Democrats need to pay attention to what is going on behind the scenes of these nominees. As Senators, they vote on various bills and even cosponsor bills that can and many times are enacted into the United States law books. Instead of watching these two candidates shaking hands, making promises, and talking about what they would do in order to save the US economy and keep America out of recession, you need to see what is going on behind this façade and learn about the bills they are endorsing or even co-sponsoring.

Clinton and Obama both are cosponsoring a bill that has been introduced that will do damage to the US economy, the real estate market, the housing industry, and future homeowners.

S.2136 The Helping Families Save Their Homes Act, which was introduced by Senator Dick Durbin and cosponsored by both Hillary Clinton and Barack Obama along with the S.2133 Home Owners’ Mortgage and Equity Savings Act introduced by Senator Arlen Specter, will do more damage than good if enacted.

S.2136 would do away with a stipulation in the bankruptcy code that forbids adjustment to the debtor’s primary residence mortgage during Chapter 13 proceedings. Under this bill, Bankruptcy Judges would have the right to change the principal, interest rate, and terms of mortgages. Along with handing these abilities over to Bankruptcy Judges they would also have the power to extend the length of the loan, waive the counseling requirement for those whose homes are already in the foreclosure process, fight the excessive fees, preserve legal claims against greedy lending companies while debtors are in bankruptcy.

S.2133 is almost the same; it would give power to Bankruptcy Judges to amend mortgage loans on a debtor’s primary residence during Chapter 13 proceedings. However, under this bill bankruptcy judges are only permitted to decrease the principal of the mortgage when both the lender and the homeowner agree to the amount. The bill also allows bankruptcy judges to delay, stop, or roll back increases in mortgage interest rates, to relinquish prepayment penalties and to recover interest, fees, and fines when the creditor committed fraud or did not disclose the loan limits. Credit counseling would be postponed until after bankruptcy filing when foreclosure is forthcoming.

With these types of laws on the books, Americans will have a much harder time qualifying for home loans, as lenders will tighten their lending. Qualifying will become a nightmare for middle income Americans as larger down payments and higher FICA scores will be needed. Lending companies are not going to be left holding the bag when individuals end up in bankruptcy court.

This means, the fewer loans will be given due to lending companies being overly cautious which means less home sales, thus interest rates will rise. The higher priced homes will sit longer due to an increase in interest rates, as Americans will not be able to afford their mortgage payments on higher priced homes. The longer these homes are on the market, the lower the price of the home will go. When the housing industry is hurting so does our economy.

Instead of choosing a candidate for the Democratic candidate for Presidency based on what you hear and see on the campaign trail, vote by what the candidates are really doing to aid in helping Americans behind the scene.

Do your due diligence and investigate what types of legislation the candidates have either introduced or cosponsored. It will speak volumes about his/her common sense and appropriate responses to common issues.

~Rhonda McMillan
Broker

I was in total shock when I stumbled on Sen. Barack Obama’s proposed legislation STOP FRAUD Act S. 1222.

The implications for the real estate industry are terrifying. It would have been more appropriately named “Stop Real Estate Sales Act” because that is exactly what it will do.

It lumps real estate and mortgage professionals in a vague all inclusive manner to expose them to civil and criminal litigation for fraud on any transactions that utilized sub-prime loans. Penalties can be as high as $5,000,000 and up to 35 years imprison or both.

(1) CRIMINAL PENALTIES- Any mortgage professional who violates subsection (a) shall be fined not more than $5,000,000, or imprisoned not more than 35 years, or both.
(2) CIVIL PENALTIES- Any mortgage professional who violates subsection (a) shall be liable for an amount equal to the sum of all finance charges and fees paid or payable by the natural person, financial institution, or purchaser who was defrauded unless the mortgage professional demonstrates that such violation is not material.

The Stop Fraud Act defines a “mortgage professional” as;

(e) Definition- As used in this section, the term `mortgage professional’ includes real estate appraisers, real estate accountants, real estate attorneys, real estate brokers, mortgage brokers, mortgage underwriters, mortgage processors, mortgage settlement companies, mortgage title companies, mortgage loan originators, and any other provider of professional services engaged in the mortgage process.

This Will Open the Flood Gates On Litigation Against REALTORS®

Any one that has been foreclosed on would be able to sue their real estate agent and/or real estate broker for fraud in addition to asking criminal charges are brought forward.

This Bill also contains mandatory reporting for “any suspicious activity by an individual or entity”. Now we really go down a slippery slope here. I have been involved in real estate litigation before. The case of “if I did not know I should have known” was brought forward by the plaintiff’s attorney. Now while I did prevail, I would be at risk any time I walked into a court room.

By rising the bar on possible offenses to the level of fraud it would considerable lengthens the timeline on statutes of limitations. In the state of Missouri the statute of limitations on fraud is 10 years. In some instances in can be expanded to 15 years. The State only requires that I keep records for 5 years and the IRS only requires 3 years so how am I to defend litigation on a 10 year old transaction?

If Sen. Barack Obama’s Stop Fraud Act is passed it will also raise interest rates and make home loans extremely difficult to obtain. Mortgage companies and banks will scrutinize borrowers like NEVER before.

The main stream media has really dropped the ball on this story. Sen. Barack Obama introduced this Bill back in April of 2007. This is actually Sen. Barack Obama’s second attempt to pass such a bill. His first attempt was Bill S. 2280 [109th]: STOP FRAUD Act introduced Feb. 14, 2006. So if you know anyone involved in the real estate or mortgage industry, PLEASE sent them a link to this blog and make them aware of the professional danger they may be exposed to.

To read the Bill in it’s entirety you can do so at the PREN Real Estate Forums.

~Rhonda McMillan
Broker