Wednesday, December 19, 2007
Houston, we've got a problem...
--Barclay Palmer, Senior Producer, Anderson Cooper 360

Earth to the Fed! Yes, those too-good-to-be-true home sales helping drive the economy for so long were too good to be true. Now the Federal Reserve has is targeting deceptive home loan practices--but thousands of families already stand to lose their homes, and the mortgage credit meltdown is already putting a drag on home sales and the economy.

And The New York Times reported on Tuesday that the Fed and other regulators shrugged off warnings that lenders were luring people into risky mortgages they could not afford, and some were using deceptive practices. But the Times reports the vaunted Alan Greenspan didn't act.

So now we have the Fed's proposed solution. Is this the right move, or is it too little too late?

We'd like to know what you think.
Posted By CNN: 10:55 AM ET
  6 Comments
Hey...atleast the Fed. Reserve is doing something! But it seems too little too late to me. I mean alot of people are losing everything because of this!! They should have stepped in and put a stop to these deceptive mortgage practices long ago! But what can you expect....look how they have handled everything else!

Cynthia, Covington, Ga.
Posted By Blogger Cindy : 11:30 AM ET
I think the fed helped cause a real estate bubble just like they did the stock market implosion.
Add to the mix all the greed of houses becoming a lottery game and it's no wonder there's trouble.
Your home is your shelter first and foremost. To make it a commodity to be a cash cow is asking for trouble...And trouble the real estate market is in..
Lorie Ann
Buellton, Calif.
Posted By Blogger Lorie Ann : 12:35 PM ET
So many people have lost their homes already and here in Michigan, so many stand empty that no one can even think of refinancing their home now - as the market has shrunk the value of their homes below what they are currently mortgaged at.

Sometimes it feels like people are fleeing the State of Michigan, that you are almost tempted to look around and say "Last one out, please turn out the lights." I know a lot of people who have moved to a different state [where the jobs are], got a mortgage there, and have been forced to let their homes in Michigan foreclose.

It's a sad state of affairs. People aren't buying because their afraid for their jobs, and they're losing their jobs because people aren't buying. It's no more clearer than in a region that works, breathes and lives from the automobile industry.

And here - it looks like the light at the end of the tunnel is indeed... a speeding train.

Out of town.
Posted By Blogger IMGINGER : 1:14 PM ET
As usual, this administration used the "little guys" to deceptively fuel an economy designed only to help the super rich. Now that the real money comes due, the "little guys" can't afford to pay, and the super rich don't care because they've already made their money from the situation.

Now let's see what happens when the money comes due on the huge federal deficit the Bush administration has created.
Posted By Anonymous Joseph Kowalski, North Huntingdon, PA : 2:05 PM ET
Barclay/AC360:
Have you heard about the new action against foreclosure? It is called, "The Midnight Run." It is packing up everything and slipping out of town. Thank you mortgage lenders for giving unqualified individuals homes they could never afford.

So what consequences occur after this happens? The bank forecloses the home (the big white paper on the door or window), the homeowners disappear (no forwarding address), the home is auditioned (for pennies), the homes in the area go down in value (close to 20 percent), and homes in the area cannot sell (empty and abandoned homes).

Living in a city and state with high foreclosure rates, the personal investment of real estate is bombing out. Not only have values of our homes decreased but our taxes have skyrocketed.

The American dream of home ownership has never been as jeopardized as it is right now!

I look forward to hearing what the candidates have to say about the fed's proposed solution.
Posted By Blogger Sharon from Indy : 2:24 PM ET
I empathize with the people losing their houses, but I don't think its all the fault of the Bush administration or the Federal Reserve. No one forced people into adjustable rate mortgages whose rate would increase with time; the buyer should have been sure they understood what the ARM meant specifically and especially what the worse case scenario would be and whether they would be able to handle that scenario financially.

American consumers always want more for less and always think that the good times will continue to roll and that the proverbial rainy day will never come. Perhaps in addition to the government fixing their side of the mess, the consumers should learn that most times "less is more" and not buy a house that would normally be beyond their means. Until people adjust their expectations there will always be someone out there willing to sell them something that in the end will be too costly to keep.

Annie Kate
Birmingham AL
Posted By Blogger Annie Kate : 3:44 PM ET
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