A chance to make change, the opportunity to repair the Mortgage Mess in America can be achieved, while at the same time an expansive methodology unprecedented in performance function to achieve paying down the National Debt. (Please Review)
I’m not talking about a Fannie and Freddie that Defers to the Banks and Mortgage Industry.. I’m talking about a Fannie and Freddie under HUD leadership. This agency will become the mortgage industry for owner’s occupied homes in the range discussed below. Then a % of profits from Mortgage Interest Income can pay down national debt, instead of bankers and Wall Street looting everything.
Currently Freddie and Fannie hold a vast amount of Home Mortgages, this is a start point. Acknowledging the true positive value of these assets. They represent Real Property. The greatest stability assent America has, which is: the land and the homes of American people this occupies this land.
HUD stand at the forefront more than previously acknowledged and recognized in the capability it can and does have to effect transformational change in America. The aim of HUD in the ongoing challenge to bring resolve to Homelessness, Blight, Family Stability, and viable security to the communities of America. These are our Treasures and these are the assets which stabilize our security as a nation can be achieved by becoming the HUD organization of American Home ownership and community stability.
The gouging stops.
Prospectively and respectfully consider if “HOMEOWNERS paid their mortgage to the government agency headed by HUD,
HUD would be established to manage Fannie Mae and Freddie Mac, each agency reports directly to the Secretary of HUD. Fannie and Freddie become placed under the Leadership of HUD, there is then no more 100 million dollar pay days for any Fannie or Freddie Executive, they are then placed on Fixed Salary, and they must be appointed to the position by a special committee on Housing and America Stability of Home and Infrastructure. They will report to the Director of HUD and to the Vice President.
Under this program, there will be no such thing as ‘Toxic Loans” – HUD Target area and general community could then be managed where people could get 2-3- 4.5% loans to buy the homes as owner occupied, or owner purchased of land and construction cost to build, with a mandate they must stay in the home for no less than 5-7-10 years with varying penalty if they sell before then. {except special circumstance) If they move, then the house has to either be sold to someone with low income or rented to someone with low income. This removed the unwarranted profiteering from Home Ownership.
Consider the funding stream this interest income would bring to HUD, instead of banks who have demonstrated their mischief. Wall Street and Brokers gaining the revenue from homeowner interest, and in turn gambling with the properties of American citizens, This plan our government would gain the proceeds from this national security matter, which is home-ownership, (we just experienced the downfall of a nations stability by the act and actions of banks, brokers and Wall Street making casino games with the homes of American citizens, thus jeopardizing the nation sovereignty and security of our nation. HUD is responsible to the citizen devoted to our community stability, what better way to take control of achieving this by a program change in how our nations functions. Our future as a Nation Depends upon this change.
These 100’s of Millions gained MONTHLY would go to the government, via HUD’s management of these core elements of our nation and society. These proceeds then become resources unto the government to provide the assurance of stability and security to our nation’s most valuable asset, which is the family home and the security of the family stability.
Debt Relief Benefit of the Plan.
The debt would be wiped out in 10 years time, and that could be done by charging no more than 4% Interest on home loans.. The volume of profit the government would make would be astounding. But America would be gaining stability; it would not be at the mercy of bankers, or at the perils of Wall Street gambling with American most valuable asset which is the American home.
- 1. A % of interest Earned can be devoted to paying down debt
- 2. A % of Interest Earned can be dedicated to homeless prevention
- 3. A % of the profits from Interest can be dedicated to infrastructure rebuilding and modernization improvements.
- 4. An immediate fund can be set up for Home Energy conversions.
- 5. Currently funded HUD programs would be capable of more rapid deployment to engage eliminating homelessness and other maladies of community challenges.
- We’d have stable home-ownership and never again have a foreclosure mess, nor can banks manipulate home ownership with their interest rate games.
- Flipping Homes for quick profit and escalating home ownership beyond reasonable value will be a thing of the past.
- Equity lines can be taken out for no more than 50% of a home’s actual leverage value at a given time.
- Must be an America Citizen – Non Citizen can apply for Home Purchase, but they must meet whatever requirement of Immigration Status HUD establishes, this makes Inter Departmental processing a standard, which can help deal with Illegal Immigration.
Home Ownership would become a reality in America, and it would not take 30 years to pay for a home.
Never again in the Longevity of America would banks have the power to crash a nation, by gambling with the homes of its citizens. Banks would never again have the ability to make home ownership a hardship on Families with gouging level interest rates.
HUD would be able to designate and constrict HUD mortgage profits from every being traded and made into a gambling game. These Mortgage security instruments can be used to support Civic and Municipal Bonds.
- Mortgage payments can have 40% go to principal and 60% to interest. Then it will take less time to pay off a home and the Interest paid won’t force the home to become over priced and overvalued for what it is, nor will it take people 30 years to pay off their home. People will gain equity and thus we create stability. Fannie and Freddie Regain their principal investment in a shorter time, while they earn interest doing so. They are able to have a self continuing program.
- RETIREMENT WILL BECOME A TRUE POSSIBILITY FOR AMERICAN PEOPLE.
v This program would cover owner occupied homes up to $750,000.00 at 4-4.5% interest rates, ( homes between $750,000.00 – 1,500,000.00 would have a rate cap of 7-8% but cannot be lower than 4.5% ) any home above these values would be bought via the banking industry or by other means.
v Mortgage interest deductions then would limited to 60% of interest paid on homes up to $750,000.00 and homes above $750,000.00 would be limited to 40% interest deduction.
v Home purchased via banks which cost above $1,500.000.00 would be able to deduct 90% of their interest payment, for a specified term. Banks would then not be able to claim this profit and escape paying tax on their gains from earned interest.
HUD would be able to convert and build up blighted areas quickly and with true effective capability.
In 10 years we will have either wiped out our debt, a balanced budget and prosper a nation. While we improve our over-all programs of public services and preparing our way to have a truly functional 21st Century Model of America.
For people to acquire Home Loans can be simplified, and We’d not only have the means to support home building, but repair and restoration of our communities, and we’d push the progress to eliminate homeless families by 100% .
Yes it can be done, because The FED’s loaned banks money at “0” for how many years now… It would be better to fund homes, than loan the money to banks at “0%”. This will force banks to become supporting of consumerism, and get out of the business of gambling with peoples homes.
HUD would make 100’S of Billions Per Month in interest income. This would allow expansion of HUD programs, Infrastructure funds, and HUD could then back Civic and Municipal Bonds, and we’d have resources to pay down our National debt in unprecedented record time.
This is how the Government can take the country back from being usurped by Capitalism.. Currently Capitalism trumps both Governance and Democracy, and if we don’t become responsible and change it, we will find more problems. We can change the plutocratic process and restore Democracy to a Democratic Nation.
America has to think different..
Real Estate Agents won’t be able to turn home ownership into their own get rich scheme at the expense of the home owner. Anyone who buys a house and sell it within 5 years should be taxed, and if property increase in value more than 15% in that time frame, then the property tax also adjust upwards and Capital Gain tax become 40% or higher. Home will remain a solid value to the homeowner and they can borrow against their equity in their later years if they need to. Each Family can transfer ownership of the home to their children without a capital gains being placed on the children.
HUD is the organization which knows everything about homes and struggles to deal with homelessness and all the elements of stable communities. This is the pathway to true long term success as a nation.
This will make America the Strongest Nation Ever to exist on this planet.
Consider respectfully the resources this will bring to HUD, which will enable it to function with greater capacity building in every city across the nation. WE know the level of blight. We know the condition of people losing homes because of banking habits.
No longer would we have Banks playing games with Home Mortgage nor the Interest Rates on Home owners, We would have no more Foreclosures, because HUD has many variable of transition.
HUD already has the component in place to handle mortgage processing. Because it has the Department of Community Development, exist in all cities across the nation, these organizations have full and ALL capability and accessibility to be mobilized to process home loans. Any citizen who wishes to purchase a home will be processed through localized Community Development offices HUD has the data bases to manage this process, and HUD has the system in place to manage payment acceptance and payment funding for loans.
HUD would be able to eliminate Housing Fraud, it can control and insure that home-ownership return to being the stable value asset to America and the American Family. [THIS IS A NATIONAL SECURITY CONCERN]
Congress would be limited in its capacity to stop this, because it is a sound plan that restores home value, manages the wild escalation of homes.
If people opt to use owner financing to buy a home, that is purely between the buyer and seller and the buyer engages at their own risk.
The above program of transition of Fannie and Freddie under HUD leadership is not whimsical nor is it to be passed off lightly. It will take time, but within the process, it will require some additional functions, which include a 2 year program, for banks to turn over their mortgage ( for homes up to $750,000.00) to Fannie and Freddie. This must have a clause which is firm and fixed. HUD will acquire these homes mortgages at value or at the reduced current market value of the home, and Banks will receive no more than 1% on these units. Or 1% of packaged Mortgages. 1% will cover the banks administrative cost.
The banks cannot balk, because they have used Federal Funds at “0%” for more than 3 years. Therefore considering the overall long term and the cost they brought to the nation, they have been compensated previously.
Banks retain their position for commercial property and they retain their position for home owner properties that exceed $1,500,000.00 they have the option to engage homes between ($750,000.00 -$1,500,000.00) this is the purchaser options.. But they Do Not have the options to enter the market for any homes valued under $750,000.00.
Investors, who buy homes under $750,000.00 as rental income, must manage those homes under HUD rental guidelines. This insures stability to community and affordability based on the income ratio for people who can afford homes up to $750,000.00
These programs give a broad consideration to the General American Population, including those who function within society with the capability of owning a home up to $1,500,000.00.
The Benefit to the Nation becomes a priority in the whole of the program. We restore the value to America, We put resources in the hands of the government from our citizen’s homes, and we put the homes of America citizens into a program of long term stability and security. HUD then has resources to insure that we do not back slide into blight and urban decay. We can Rebuild America..
This is the process to realize the ‘Change” our Administration has Stated and Pursued.
It is not wealth re-distribution, but making a level playing field and protecting the homes of American citizens and utilizing the resources gained from home-ownership to double back to support the homeowners, the community, the city, the schools and the nation.
Our schools will improve, because home-ownership means, % of property tax from ‘occupied and owned homes” then strengthen the schools districts financial resources.
It is a WIN-WIN for the Nation, the Citizens and the Home-ownership of American Citizens.. It gives us National Security.
Maybe if HUD can act on this above discussed program..it may help many who are facing similar situation, but it certainly will help the United States of America regain its strength and stability, as well as improve its equity as a nation. In the process, it just may force banks to begin again to do loan consolidation to help people with consumer debt. As opposed to people filing bankruptcy.. But as long as banks can gouge the public on mortgage they have no interest in consumer loans. As long as banks can still play package and sell of mortgage securities, they have no concern for ‘earning their profit by supporting loan consolidation for consumer debt”.
If HUD can push and make this program work. It equally so forces banks to get back in the business of lending instead of the business of trading (gambling with Americans greatest Asset)
Please excuse the grammatical errors, “the substantive points is what matters”.
Recasting How America Functions
Truths In Time - Blog 