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Blasts from the past - Hillary and her NEW DEAL
Hillary Clinton 2008
Let's Keep People In Their Homes
There is a broad consensus that Congress must act to stave off deeper turmoil on Wall Street. Irrespective of the final agreement yet to be reached, there are several principles that must be part of a broader reform effort that begins this week and continues in the coming months.
This is not just a financial crisis; it's an economic crisis. Therefore, the solutions we pursue cannot simply stabilize the markets. We must also deal with the interconnected economic challenges that set the stage for this crisis -- and reverse the failed policies that allowed a potential crisis to become a real one.
First, we must address the skyrocketing rates of mortgage defaults and foreclosures that have buffeted the economy and ignited the credit crisis. Two million homeowners carry mortgages worth more than their homes. They hold $3 trillion in mortgage debt. Nearly three million adjustable-rate mortgages are scheduled for a rate increase in the next two years. Another wave of foreclosures looms.
I've proposed a new Home Owners' Loan Corporation (HOLC), to launch a national effort to help homeowners refinance their mortgages. The original HOLC, launched in 1933, bought mortgages from failed banks and modified the terms so families could make affordable payments while keeping their homes. The original HOLC returned a profit to the Treasury and saved one million homes. We can save roughly three times that many today. We should also put in place a temporary moratorium on foreclosures and freeze rate hikes in adjustable-rate mortgages. We've got to stem the tide of failing mortgages and give the markets time to recover.
There is a broad consensus that Congress must act to stave off deeper turmoil on Wall Street. Irrespective of the final agreement yet to be reached, there are several principles that must be part of a broader reform effort that begins this week and continues in the coming months.
This is not just a financial crisis; it's an economic crisis. Therefore, the solutions we pursue cannot simply stabilize the markets. We must also deal with the interconnected economic challenges that set the stage for this crisis -- and reverse the failed policies that allowed a potential crisis to become a real one.
First, we must address the skyrocketing rates of mortgage defaults and foreclosures that have buffeted the economy and ignited the credit crisis. Two million homeowners carry mortgages worth more than their homes. They hold $3 trillion in mortgage debt. Nearly three million adjustable-rate mortgages are scheduled for a rate increase in the next two years. Another wave of foreclosures looms.
I've proposed a new Home Owners' Loan Corporation (HOLC), to launch a national effort to help homeowners refinance their mortgages. The original HOLC, launched in 1933, bought mortgages from failed banks and modified the terms so families could make affordable payments while keeping their homes. The original HOLC returned a profit to the Treasury and saved one million homes. We can save roughly three times that many today. We should also put in place a temporary moratorium on foreclosures and freeze rate hikes in adjustable-rate mortgages. We've got to stem the tide of failing mortgages and give the markets time to recover.
http://www.wsj.com/articles/SB122230767702474045
FDR:
And the historical analogy to the Great Depression's mortgage crisis is apt in more ways than one. Faced with a widespread threat to homeownership, Roosevelt put forth a bold plan, calling for legislation to protect small homeowners from foreclosure and embracing a national policy to preserve homeownership. He learned from President Hoover's ineffectual 1932 Federal Home Loan Bank Act, which created a credit reserve for lenders and yielded only three approved loans out of 41,000 applications, that the solution was not with the creditors, but with direct assistance to homeowners.
FDR's resulting legislation established the Home Owners' Loan Corporation. The HOLC was authorized to issue new loans to replace the existing liens of homeowners in default. Instead of a short-term, interest-only loan, the HOLC loans would be fully amortizing over 15 years, meaning that when the last payment was made, the borrower owed nothing further to the bank and owned the home free of any debt. HOLC was far more patient with borrowers than the banks could have been, and delinquent loans got individualized attention, including debt counseling, family meetings, and budgeting help.
FDR's resulting legislation established the Home Owners' Loan Corporation. The HOLC was authorized to issue new loans to replace the existing liens of homeowners in default. Instead of a short-term, interest-only loan, the HOLC loans would be fully amortizing over 15 years, meaning that when the last payment was made, the borrower owed nothing further to the bank and owned the home free of any debt. HOLC was far more patient with borrowers than the banks could have been, and delinquent loans got individualized attention, including debt counseling, family meetings, and budgeting help.
http://www.cbsnews.com/news/fdr-solves-the-mortgage-crisis/
4 replies
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= new reply since forum marked as read
JOBS
not being shipped overseas. Or stolen here at home by foreigners on H1 Visas.
She's championed H1 Visas. She helped draft the TPP. And that is going to cement the loss of the remaining manufacturing jobs in this country. You know, the ones that we still have after Clinton1's destruction of American manufacturing with NAFTA & inducting China into the WTO.
She may say now she is against the TPP, but you can bet she will pass it if its still on the table in 2017. She will evolve AGAIN on the horrific "trade" pact.
BIG +1!
