Governments in Chicago, San Bernardino, CA, and Suffolk County, NY plan to use eminent domain powers to provide mortgage relief. Created by Mortgage Resolution Partners, the plan being considered would allow local government to seize mortgages on homes of underwater borrowers using eminent domain laws. The bank holding the mortgage would then receive current fair…

With home prices falling and mortgage borrowers defaulting, four lawmakers are calling for more options to help underwater homeowners. Currently, the Principal Reduction Alternative and FHA Short Refinance offer principal reductions to homeowners that owe more than their home is worth, but are not available for Fannie Mae and Freddie Mac mortgages. Sen Robert Menendez…

Hedging Against the American Dream—Part I Freddie Mac reaps rewards when homeowners are unable to refinance under low rates. Critics contend that Freddie Mac, in October 2010, tried to deter prospective refinancers by tightening underwriting guidelines and raising prices. Freddie Mac, a taxpayer funded Government Sponsored Enterprise (GSE), stands to lose if upside-down borrowers can…

12/14/11 By Jim Culbertson, TPP Citizen Journalist The House passed HR 3630 (Middle Class Tax Relief and Job Creation Act of 2011) with the support of Congressman Dave Reichert (R, WA) and with most representatives voting along party lines. The bill has been threatened with veto by the White House and is believed to set…

Representative Edward Royce (40th Congressional District) expressed his outrage at bonuses for Fannie Mae and Ginnie Mac’s management, after both organizations appealed for billions from the government to cover operating losses. Incensed at this (effectively) taxpayer financed bonus program, he co-sponsored legislation that will prohibit these bonuses being paid. On November 4th, Rep. Royce, a…

U.S. Sen. Johnny Isakson (R-GA) has announced his support for executive actions recently proposed by the Obama Administration and Federal Housing Finance Agency, which would aid millions of borrowers with non-delinquent but “underwater” Fannie Mae or Freddie Mac-backed mortgages to refinance their mortgages at historically low interest rates. The proposed Obama plan draws many elements…

One of Georgia’s senators cosponsored an amendment to raise the federal home-loan guarantee limit, and both voted for it.  Georgia’s Republican senators, Saxby Chambliss and Johnny Isakson, crossed the aisle October 20 to provide necessary votes for a measure to increase Fannie’s and Freddie’s limits for home loan guarantees. The amendment to an appropriations bill required the support of…