Thursday, January 29, 2015

Feds’ Price War on Housing Puts Taxpayers at Risk

You would think these Liberals would have learned the first time; remember the collapse of the housing Market. Not all the Banks fault. This failed Liberal policy forced banks to give these subprime Mortgages to people that could not afford these homes. Now Fannie and Freddy (Government owned ) is in the news again.

Fannie and Freddie, FHA compete to offer riskier home loans to low-income buyers

Government housing agencies seeking to entice more low-income homebuyers to purchase mortgages are engaged in a price war that could leave taxpayers on the hook if another housing meltdown occurs, according to experts.
Both the Federal Housing Administration (FHA) and Fannie Mae and Freddie Mac, housing giants known as government-sponsored enterprises (GSEs), have announced programs in recent weeks that reduce lending standards and mortgage costs to attract low-income buyers.
President Barack Obama touted the FHA’s plan, which lowers annual insurance premiums on government-backed mortgages, earlier this month. That program follows Fannie and Freddie’sresumption in December of low down payment mortgage loans for eligible first-time homebuyers.
The timing of the two measures is not a coincidence, some experts say. Edward Pinto, former chief credit officer of Fannie Mae and a co-director of the American Enterprise Institute’s (AEI) International Center on Housing Risk, wrote in the Wall Street Journal on Wednesday that the federal agencies also competed for homebuyers in the decades before the 2008 housing crisis.
“Fannie’s goal in 1994 and today is to take market share from the FHA, the main competitor for loans it and Freddie Mac need to meet mandates set by Congress since 1992 to increase loans to low- and moderate-income homeowners,” he said. “The weapons in this war are familiar—lower pricing and progressively looser credit as competing federal agencies fight over existing high-risk lending and seek to expand such lending.”
As the agencies reduce prices in a tit-for-tat fashion to lure homebuyers, more risky mortgage loans are injected into the housing market. Critics say the purchase of such loans by Fannie and Freddie, spurred by federal housing mandates, contributed significantly to the 2008 crisis. The GSEs required a taxpayer bailout of $188 billion to stay afloat after 2008.
Fannie and Freddie operate by buying mortgage loans from lenders, packaging them into securities, and then selling those securities to investors with backing from taxpayers. The FHA, by contrast, offers mortgage insurance on loans by certain approved lenders. In 2013, the agency drew $1.7 billion from the Treasury Department to cover losses on bad loans.
Fannie and Freddie, along with the FHA, underwrite a majority of loans in the housing market.
Mel Watt, director of the Federal Housing Finance Agency (FHFA)—which oversees the GSEs—saidduring a congressional hearing on Tuesday that his agency would decide on the “guarantee fees” that Fannie and Freddie charge lenders by the end of March.
If the fees—which account for the risk Fannie and Freddie assume by buying the mortgage loans—are reduced, it could be another sign that the GSEs will lower prices further to compete with FHA and attract homebuyers.
Another concern about the brewing price war between Fannie and Freddie and the FHA is their lack of capital. Under a 2012 agreement with Treasury, Fannie and Freddie must hand over all of their profits to the government and cannot retain capital. The FHA will not reach its required minimum capital level of 2 percent until at least 2016. Both agencies could thus leave taxpayers exposed if their loans default, and there is no capital to absorb the losses.
“Mortgage price wars between government agencies are particularly dangerous, since access to low-cost capital and minimal capital requirements gives them the ability to continue for many years—all at great risk to the taxpayers,” Pinto said. “Government agencies also charge low-risk consumers more than necessary to cover the risk of default, using the overage to lower fees on loans to high-risk consumers.”
Homes have become less affordable since 2009, hurting middle-class homebuyers who receive smaller subsidies from the government than low-income purchasers. According to the urban planning site Demographia, the share of U.S. housing markets that are affordable has declined from 56 percent in 2009 to 36 percent last year.
AEI’s International Center on Housing Risk said in a briefing released Monday that there are not enough low-risk loans in the mortgage market to ensure “long-run market stability.”

CNN: US Intel: Taliban Man Released From Gitmo in Bergdahl Deal is Back to Militant Activity

CNN, part of Obama Propaganda put this out. I thought these Cockroaches were going to become a productive citizen and be good and be watched by the U.S.


A Few More Facebook Post

Lets see what he does or chooses with Keystone xl? His Billionaire Money donors or the American People! Reid is not there to do his dirty work.


What a Shocker; he claims distraction, when in real terms his "Raising Taxes" on the middle class did not look good!

In a desperate attempt at relevance, President Barack Obama thought he could pay for two promised years of free community college tuition by eliminating the tax exemption on middle-class 529 college-savings accounts. Although the Administration argued that the 529 accounts disproportionately benefit higher-income families, disenfranchising 11.6 million accounts was seen as just short of a declaration of war on “the family.” This afternoon Obama dumped his tax plan.

In last week’s State of the Union address, President Obama proposed what he said would be a series of changes that would supposedly help low- and middle-income households by expanding the “American-Opportunity-Tax-Credit,” which would provide as much as $2,500 per student for higher-education. But to offset the cost, the White House decided to jettison tax-free distributions for college from 529 accounts.
Total investment by American families in 529 plans has reached a record level of $227.07 billion. Total assets in 529 plans grew by $36.4 billion dollars in 2013, and are believed to have grown by a similar amount in 2014. The total number of 529 accounts increased 4.4% over the past 12 months from 11.1 million to 11.6 million.
Going after the 529 college-savings accounts also seems to have created worries among middle-class investors that an administration desperate for cash might also want to take away the tax-advantages of 401K retirement accounts.
House Speaker John Boehner (R-OH) and his Republican allies were having a field day haranguing the Obama Administration’s insensitivity. In complete unity, Republicans demanded the White House dump the tax idea, “for the sake of middle-class families.”
A GOP aide said Tuesday that the House would vote next month on an alternative approach—sponsored both by Republican and Democratic lawmakers—that would expand 529 account benefits while preserving their current tax treatment. The move set up a high-stakes political test of Democratic support for President Obama’s plan.
Democrats, led by House Minority Leader Nancy Pelosi (D-CA) pressed senior Administration officials aboard Air Force One as she flew with the President from India to Saudi Arabia, according to the New York Times.
With the media smelling blood in the water, a White House official quoted by the Wall Street Journal late Tuesday evening said the 529 proposal was “a very small component of the President’s overall plan to deliver $50 billion in education tax cuts for middle-class families….Given it has become such a distraction, we’re not going to ask Congress to pass the 529 provision.”
The Administration says it is committed to pushing for expanded tax credits for higher-education costs, as well as other breaks for lower- and middle-income households. But with the centerpiece of Obama’s State of the Union address aimed at stoking middle-class anxiety over wage and income stagnation having imploded, a lame-duck president had to limp away.

Obama Adviser Podesta Caught Green-Handed In Major Ethics Violation

Holy Crap, We have a Liberal involved with a ethics violation involving a money Payoff? Smells fishy to me!

In 2013, John Podesta was paid $87,000 by a shadowy foreign billionaire whose passion is preventing energy exploration on American land.
Just two years later, Podesta is a member of President Obama’s inner circle, and the driving force inside the White House to block 12 million acres of land in Alaska’s Artic National Wildlife Refuge from oil drilling.
The circumstances suggest Podesta may have run afoul of Obama’s highly-touted ethics pledge, which requires political appointees to disqualify themselves in matters relating to the interests of a former employer or client.
Podesta — who is preparing to leave the White House to take a top position with Hillary Clinton’s presidential campaign — has largely avoided public scrutiny during his time as a White House Counselor.
But his work came into fuller view earlier this week when he emerged as one of the architects of the new White House policy that seeks to end any future drilling for oil on Alaska’s coastal plain.

A vile NBC Reporter suggested American Hero Chris Kyle was a "racist" who went on a killing spree.

This is why I stopped watching the regular NBC news. never watched their other Clown channel. These Idiots are in bed or just plain Obama propaganda Assbags!
Post by MRC TV.

A vile NBC Reporter suggested American Hero Chris Kyle was a "racist" who went on a killing spree.

Wednesday, January 28, 2015

Phone Company ‘Outraged’ By Fraud, Abuse In ‘Obamaphone’ Program

Your taxpayer dollars and surcharges hard at work!

DENVER (CBS4) – A nationwide cellphone company distributing phones and cellphone plans in Denver as part of a massive government program says it is “outraged by the unacceptable actions” uncovered by a CBS4 undercover investigation.
The response from Total Call Mobile comes nearly three months after an undercover CBS4 investigation revealed multiple examples of fraud and cheating in the phone distribution program.
The Lifeline program is aimed at providing free cellphone service to the poor and needy. It handed out more than 13 million free cellphone plans in the first six months of 2014. In Colorado, the program handed out more than 117,000 free cellphone plans in the first half of 2014 or about 20,000 cellphones every month.
If you own a cellphone, you pay for the free phones and their wireless plans via a monthly tax on your cellphone called the Universal Service Tax. Although the Lifeline wireless program has been around since 2005 and started under President George W. Bush, it ballooned under President Obama and the phones are often referred to as Obamaphones.
To qualify for one of the cellphone plans, you have to be low income — on food stamps, Medicaid, housing assistance or some other government program.
But multiple times a CBS4 producer and reporter found phone agents in Denver circumventing strict government rules to ensure that only the truly needy get the free phones. Vendors, like Total Call, receive massive government subsidies to hand out the phones and the accompanying monthly plans.
In one case a Total Call agent used someone else’s food stamp card to provide eligibility for a CBS4 producer. On another occasion another Total Call agent said it would be perfectly fine to use a friend’s food stamp card to establish eligibility and obtain a free phone.
In a letter to CBS4, Total Call has now responded saying, “Total Call Mobile is outraged by the unacceptable actions shown in the broadcast. The broadcast depicted both agents and applicants seeking to improperly participate in the Lifeline program. They were both engaged in fraudulent activity … to enroll in the Lifeline program among other improper actions.”
Phone company representatives talk to people seeking phones under the Lifeline program. (credit: CBS)
Phone company representatives talk to people seeking phones under the Lifeline program. (credit: CBS)
The company said based on the CBS4 report it would be providing evidence of wrongdoing to “the appropriate governmental authorities. Regarding the incorrect or improper statements by agents that were brought to our attention in your broadcast, all of the agents that were distributing for Total Call Mobile have been identified and their access to our system has been permanently blocked.”
The cellphone company said following the revelations in the CBS4 report it would implement new protocols to eliminate the fraud and abuse uncovered by CBS4. One of those new steps is a Total Call Mobile Fraud Tip Hotline, 1-800-589-6316.
The company is asking the public to let it know of any improper activity with regard to Lifeline applications submitted to Total Call.