$700 Billion, yes Billion dollars will be earmarked for companies who, at best, "suffered" from mismanagement of funds. I don't know about you, but somehow I don't think that these CEOs should be bailed out with no repercussions. If I messed up that badly at my job, I don't think I'd still have it.
I've read articles from economists and others regarding both sides of this issue. http://en.wikipedia.org/wiki/Proposed_bailout_of_United_States_financial_system Wikipedia has a pretty comprehensive overview of the plan and is interesting reading.
We all know that loan officers sometimes tell borrowers what they want to hear -- "Don't worry about the ARM, we'll refinance you in a year or two." Meanwhile, later in the package is the RESPA Servcing Disclosure stating the originator sells 75 - 100% of the loans it originated over the past 3 years. Then there's the form stating the loan is being sold to XYZ company effective immediately.
Some of the responsibility must lie with the homeowner. If you're being told one thing verbally, from someone you've never met who is clear across the country and that is different from what you're putting pen to paper about, which will stand the test of time? What do you think? Months or years from when you signed, will what you recall being told (with no record of the actual conversation) or what you signed in black & white be the binding agreement?
The bigger picture, though, is these companies who invested in high-risk mortgages that are now crying because they've lost their investment due to borrowers who cannot repay the debt. These companies invested aggressively, understood the risk and are now crying poverty.
Maybe they listened to those same loan officers as the borrowers.
Melissa S Haley A Connecticut Mobile Notary Public
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