This country, although in a paper, no job recovery, needs some help to put us back to where people can smile.
Wall Street is in love with this type of environment. Their stock prices are up, their sales are good and they can do it without dealing with employees, unions and lawyers as much as a full employment situation would deal.
But, I have ideas from my vantage point, the real estate world that will help us get back some of the jobs lost and spur the economy.
First, a bit of background:
The real estate industry is NOT the leader in an economy. People don’t buy houses then get jobs (at least not anymore since the no doc loans are gone), it’s the other way around.
But, the current foreclosure crisis has set up a situation where we can at least try the backwards route.
Take a home that has been foreclosed that is in need of work. A typical buyer can’t buy it because it is a mess and Fannie Mae/Freddie Mac won’t give them a regular loan. What if we were to get TARP-like money that would give the bank that owns the home the ability to hire local contractors who would buy from local suppliers the ability to fix up the house.
Then the local real estate agent could sell a finished home to someone at a market price so the bank (and the government) get paid more money money back (and less for the tax payers to absorb therefore lowering the budget deficit) and the TARP-like funds get paid back with interest.
The federal, state and local economies get tax money and the local businesses get people buying stuff!
2. RIGHT REFI
Take a person that has a great credit score with great income that is paying 6.5% on a mortgage that can’t refi because the value of the property is underwater.
Why not let this person refinance WITHOUT and appraisal so that they can save $250 per month.
Do you know where the $250 will go? Back into the economy. DUH!! Multiply $250 by the thousands of people in that situation and that adds up to a lot of future tax dollars to pay down debt, spur job growth and create happiness!
3. HVCC to be Really Repealed
Stop ripping off the consumer for an appraisal that used to cost $300 and now costs $500 because a new age middle-man called an AMC has appeared thanks to Andrew Cuomo and Representative Paul Kanjorski of PA.
Now that mortgage originators are licensed under the NMLS, the scum is disappearing every day and the adults are back in charge.
The bad, fraudulent appraisals that are being done on the cheap are raising people’s interest rates and making a mockery out of a proud profession.
Fannie, Freddie, FHA, VA and USDA should be one agency, have each mortgage guaranteed by a small insurance premium on each loan.
5. GFE SANITY
Get rid of the stupid Good Faith Estimate and replace it with the HUD-1. DUH!
Just a start, but until we get common sense back in the real estate world, the general economy will continue to suffer.
If this all fails…pray!