If you want to really help?

By Michael F. White CMPS®

Michaelwhite1956@yahoo.com

I don’t need more than a thousand pages, nor do I need to spend billions of dollars to stimulate the economy and help stabilize housing prices. I need one page, and this will cost NOTHING!

If you really want to stimulate the economy and support housing prices, you have just three things to do.

1. Have FNMA & FHLMC implement a “Streamline” refinance system just like FHA and VA. No credit check, no appraisal, no need to verify anything except they have made all of their mortgage payments on time for the last 12 months. At pricing reflective of a 720 credit score at and 80% LTV regardless of actual LTV. If homeowner’s current obligations are not held by FNMA or FHLMC, allow the homeowners to satisfy the current loan with a new 30 year fixed rate FNMA or FHLMC loan at prevailing rates.

2. Require all second position lien holders to subordinate their loans to allow the streamline to take place, or allow the homeowner to also finance in the cost of paying off the second liens with the new loan.

3. Require current PMI companies to keep in place current obligations without change or increase in premiums.

These simple actions will allow millions of American families to refinance higher interest rate loans to lower cost obligations. This would increase disposable income by BILLIONS of dollars and help those families that have kept the commitments they have made.

The federal government has proposed to spend TRILLIONS of dollars to help those who can not keep their commitments or have mismanaged their finances. Why can’t this country now spend ZERO DOLLARS to help a majority of Americans who have done the right thing?

Mr. President, you have my permission to implement this strategy with a simple
stroke of your pen!