Hello all,
I saw a brief mention and a link to this in a diary from yesterday but I wanted to make a more in depth diary about this. Perhaps it is because I am planning to buy a home next year and it would be nice to not worry so much about people trying to steal my money. I am thinking I am going to go with ING Direct's mortgage as they haven't lied to me about how much money I will get in interest on my savings account. Anyway here are some exerpts of the plan and what little, uneducated insight I have to give.
This is not as detailed as his Health Insurance Plan. I think it is because he is basing some of it off the plan that already exists in NC.
Enact a Strong National Law against Predatory Mortgages: As president, Edwards will pass a strong national law to prohibit the worst abuses in the mortgage market: loan flipping, mandatory arbitration clauses, balloon loans, steep prepayment penalties, and other excessive fees. It would regulate all lenders, including non-bank finance companies, and strengthen underwriting standards to ensure that borrowers receive affordable loans suited to their means. Because abusive practices among some brokers are part of the problem, Edwards will ban broker kickbacks (yield-spread premiums) and work with states to establish uniform broker licensing standards and a national database for disciplinary infractions.
Rewrite Certain Abusive Mortgages in Bankruptcy to Let Families Keep Their Homes: Many victims of predatory lending owe more on their mortgages than their homes are worth. These "underwater" mortgages are created by excessive interest charges or falling home values. Even if they declare bankruptcy, they must pay off their inflated mortgages in full or else lose their homes. As president, Edwards will let homeowners shed excessive mortgage debt in bankruptcy. They will be able to keep their homes by paying off their full market values and get new loans terms set by the courts. For example, a family owing $120,000 on a home worth $100,000 could cut its mortgage to $100,000, with the remaining $20,000 treated like other unsecured debt in bankruptcy. The relief would be available only once and at the discretion of the bankruptcy judge.
Rescue Homeowners at Risk of Foreclosure: Many foreclosures can be avoided by timely help, such as renegotiating loan terms, finding a new lender, or catching up with past payments. Preventing foreclosures can also prevent vicious cycles that can bring down whole neighborhoods. Edwards proposed a national Home Rescue Fund to help prevent foreclosure. The Fund would work through local non-profits, government agencies, and community financial institutions. If necessary, the Federal Housing Administration, Fannie Mae, and Freddie Mac could work with community lenders to create affordable refinancing alternatives for these families.
What I like about all this is that he is taking on the banks and wanting to bring society back to that place where banks were there to serve us, NOT make an ungodly profit by screwing us over. I almost think Edwards would like to repeal that nasty law that made businesses people in front of the law. He hasn't said it yet but GOD would that be nice. It amuses me though that the media is mostly ignoring him and trying to use the Obama/Clinton names and appeal to keep Edwards out of the picture. He really seems to me to be the guerrilla candidate. I think he likes it that way too.
I hope he wins, because he really cares about this country and us.
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